Forrester: Money -- Not Ethics -- Will Fuel Green Market Opportunity
Environmental sustainability is primed to be a historic business opportunity with massive investments earmarked to fight climate change
The green market revolution is set to transform the transportation, energy, and construction sectors; investment in sustainable finance products; and the sourcing and delivery of sustainable goods and services. Leading firms are pushing past greening their operations to pursue corporate sustainability in all their products and practices.
- The green market will transform societies and the global economy. The green market is not solely about renewable energy and batteries. It will reshape and affect everything we do: how we make products, how we transport ourselves and goods, how we heat and cool our environments, how we finance and protect our assets, and what we eat. B2C CMOs are doubling down on sustainability, with 76% noting that green initiatives are among their top five priorities for the rest of 2022.
- The number of active green consumers will rise. Incentives for consumers to invest in everything from electric vehicles to home energy improvements are making consumers not only more aware of their options but also more likely to make green purchases. Forty percent of online adults in
France, 37% in the UK, and 36% in the US would rather purchase products from a brand that takes action on climate change, even if the price of the product is higher.
- New investments in both software and hardware technology for sustainability features will be made. Companies and end-users will rely on hardware such as sensors and software such as AI to enable and track new products. As emerging technologies such as blockchain and AI improve observability and efficiency, companies from consumer-packaged goods to industrial equipment manufacturing will need to embed these capabilities into their products.
- US and EU regulations on risk reporting and sustainable finance will reshape markets. New
SECproposed rules would require publicly traded firms to report their scope 1, 2, and 3 emissions. In the EU, initiatives including Taxonomy Regulation, the European Green Bond Standard (EU GBS), and the Sustainable Finance Disclosure Regulation (SFDR) will curb corporate greenwashing and provide standards for sustainable finance.
- Russian importing bans will accelerate energy transitions and self-sufficiency. As Western governments ban imports of Russian fossil fuels, they're accelerating a long-term shift to renewable energy to compensate.
Germanyhas accelerated plans to produce 80% of its energy from renewable sources by 2030 and nearly 100% by 2035. Finlandis expanding nuclear power generation, and even Japanis recommitting new nuclear energy investments.
"Environmental sustainability represents a historic business opportunity for companies to develop new products and services and facilitate or enable a new green market," said
The green market revolution is one of
Forrester'ssustainability hub to understand and navigate the green market revolution.
- Read the
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