Close to half of businesses in the United States (45%) are concerned that they could be at risk of ‘unintentional greenwashing’, a new study by Ivalua has found.
The study, which surveyed procurement leaders in the US, UK, Germany, France, Sweden, the Netherlands and Italy, found that just under half (48%) of organisations claim to be ‘very confident’ that they can accurately report on Scope 3 emissions.
At the same time, some 62% say reporting on Scope 3 emissions feels like a ‘best-guess’ measurement.
Around two thirds of respondents said that they agreed that the cost of ‘not taking action’ on environmental matters would outweigh the cost of implementing green initiatives, while 88% of firms believe that they are ‘on track’ to meet net zero targets.
At the same time, a significant number of businesses acknowledged that they lack comprehensive, fully implemented plans for various sustainability initiatives, including adopting renewable energy (78%), reducing carbon emissions (68%), embracing circular economy principles (72%), mitigating air pollution (67%), and alleviating water pollution (63%).
Addressing sustainability
“Organisations are aware they must urgently address sustainability and understand the cost consequences of not doing so,” commented Jarrod McAdoo, director of sustainable procurement at Ivalua. “But this lack of confidence paints a negative picture.
“A lack of perceived progress could fuel accusations and fears of greenwashing, so it’s important to remember that obtaining Scope 3 data is part of the natural maturation process. Many sustainability programs are in their infancy, and organisations need to start somewhere.”
McAdoo added that organisations need to make substantial advancements in acquiring primary Scope 3 data and implementing corresponding plans over time. Failure to do so could result in financial penalties and long-term damage to reputations.
Greater collaboration
The study also indicated that collaborating with suppliers is crucial for achieving net-zero goals. More than half (51%) of businesses agree that green initiatives aiming for net-zero objectives without supplier involvement are deemed ineffective.
Ineffective collaboration with suppliers (26%) was identified as one of the primary challenges that organisations need to address in this context.
“Nearly two-thirds of U.S. organisations agree that an inability to measure supplier emissions accurately makes it hard to turn words into action,” McAdoo added. “There is a clear need to adopt a smarter approach to procurement.”
Headquartered in California, Ivalua is a provider of cloud-based spend management software.
