TORONTO, Aug. 15, 2024: EcoOnline, a leading SaaS technology company for chemical safety, EHS and ESG, today announced the findings of its survey assessing the awareness and preparation around climate legislation in California among U.S. companies with revenues exceeding $500 million. The survey shows that over 80% of companies are proactively building net-zero programs, with none waiting for legislation to be enacted before building a sustainability program or team.
In late 2023, California introduced two measures to accelerate climate action:
- SB 253: Requires companies with over $1B in annual revenues to disclose GHG emissions, with fines for non-compliance up to $500K.
- SB 261: Mandates companies with over $500M in revenues to report climate-related financial risks, with penalties up to $50K per incident.
EcoOnline’s recent survey, conducted through Computer-Assisted Telephone Interviewing (CATI), provides an in-depth look at corporate America’s readiness for these laws and the steps they are taking to comply. Key findings include:
- Sustainability and Growth: 73% of respondents view sustainability as a way to drive revenue growth, with 94% seeing it as a means to increase brand value.
- Executive Leadership: For 40% of respondents, the CEO or board is leading sustainability efforts or being held accountable for them.
- Budgets for Success: 85% of respondents plan to increase their sustainability budgets within the next three years. However, only 25% of companies have specific budgets fully funded and prioritized by the C-Suite and board.
- Cost Allocation: 25% of companies are working within their current budgets, 40% have a specific budget dedicated to sustainability.
- Technology as an Enabler: 84% of respondents plan to deploy dedicated or purpose-built sustainability software to comply with legislation.
“Our survey highlights a critical tipping point where U.S. companies are boldly moving beyond reactive compliance and penalty avoidance, embracing sustainability as a powerful engine for growth,” said Tom Goodmanson, CEO of EcoOnline. “While they are committed to these initiatives, the specifics of how they will achieve their goals remain uncertain. This underscores the need for clear strategies and robust technology solutions to navigate the evolving regulatory landscape and drive meaningful impact.”
Survey Insights:
- Valuing Sustainability: “Businesses that integrate sustainability into their core values and operations can future-proof against evolving market trends and regulations,” said a Sustainability Manager from a $1B+ revenue company.
- Software Enablement: “Software solutions that automate the collection, analysis and reporting of environmental, social and governance data can help us comply with regulations, meet investor expectations, and communicate our sustainability performance more effectively,” commented a Director, Environmental, Health & Safety.
