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Business Times
9 hours ago
- Business
- Business Times
US companies delay impact reports with DEI, ESG under attack
IT WAS just over a year ago when Nike's then CEO, John Donahoe, trumpeted a flashy 90-second video, hyping a report about the company's efforts to improve diversity and equality. The report, he said in a LinkedIn post, is 'a testament to our belief in the transformative power of sport'. Nike had released some version of it since at least 2001, often with similar fanfare. But this year, the company won't publish that report. Nike joins a growing list of companies that includes JPMorgan Chase, Constellation Brands and Akamai Technologies that are either cancelling or delaying publication of their so-called sustainability or corporate impact reports for shareholders. While companies aren't legally obliged to disclose such information, most S&P 500 members did so in 2024. For more than a decade, this is usually the time period when companies tout the steps they're taking to lower carbon emissions and improve the diversity, equity and inclusion (DEI) of their businesses. Opposition to these reports first surfaced about three years ago when GOP lawmakers and activists began pressing companies to scale back such efforts. And some companies have reacted by taking steps such as scrubbing ESG (environmental, social and governance) and DEI-related words from public documents. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Anti-DEI movement The election of President Donald Trump has further empowered the anti-DEI movement. During his first week in the White House, he signed executive orders ending federal diversity programs and restricting gender definition to two sexes – male and female. None of the companies contacted said Trump's actions changed their planning for releasing sustainability reports. 'The consequences of reported information are much greater now than they were a decade ago,' said Martin Whittaker, chief executive officer of Just Capital, noting that both progressive and conservative activists are searching for evidence of companies' missteps. He estimates that about 25 per cent of sustainability-related corporate reporting is behind schedule this year. Here are some of the S&P 500 companies that have yet to publish sustainability reports, according to researchers at DiversIQ. Nike, JPMorgan, Constellation Brands and Akamai Technologies have different explanations for why their sustainability reports haven't been published this year. Nike said in an e-mail that it still plans to share the work it's doing to create a more inclusive and sustainable world for athletes in other formats and that its commitment to diversity goals for 2025 hasn't changed. In a regulatory filing, JPMorgan said it plans to release a consolidated report on ESG and climate topics later this year. However, the bank added that it will 'monitor the evolving disclosure landscape as we iterate on our approach to disclosure'. JPMorgan published its '2024 Climate Report' in November. At Constellation Brands, a spokesperson said the timing of the publication's release was adjusted after receiving 'stakeholder feedback', and that the next report is scheduled to be issued next month. Cloud computing and cybersecurity company Akamai said its data-centre vendors were partly to blame for a delay in publication until the end of this quarter. The company wasn't more specific. For the past several years, Pfizer had published an impact report by April. When contacted last week about the delay in publication, a company spokesperson said the timing was adjusted to 'allow for necessary internal processes in preparation for evolving global ESG reporting requirements'. The company released its report this week. The lack of information is a blow, even if temporary, to corporate transparency. Many shareholders rely on the disclosures to gauge how serious companies are about addressing ESG issues, inequities in the workforce, and other factors that can impact the short and long-term value of their investments. Activist investors who've pressed companies to release more data on DEI and climate initiatives have been willing to cut companies some slack this year, given the heightened scrutiny from the Trump administration. At risk Andrew Behar, CEO of As You Sow, which supports social responsibility, said executives have been asking him privately for some flexibility in what information they release this year. 'We told them to not put themselves at risk right now,' he said. 'That isn't good for anyone.' And the caution is warranted, said GianCarlo Canaparo, senior legal fellow at the Heritage Foundation, a conservative think tank that has warned against possible discrimination in company DEI programmes. Corporate leaders are aware that Trump has asked agency heads to identify nine companies or organisations that should be investigated for possible illegal DEI activities, he said. So far, the names haven't been made public, but it's clearly on companies' radar, he added. 'If you have been using race preferences, you really want to make sure you don't get caught,' Canaparo said. 'And if you haven't, you want to make sure you aren't dragged into litigation to explore whether you have.' BLOOMBERG
Forbes
28-04-2025
- Business
- Forbes
How Cloud ERP And AI Are Powering The Future Of Sustainability
Innovations in cloud ERP and AI are uniquely positioned to help businesses navigate complexity, track progress, and turn sustainability from a challenge into a competitive advantage. Every April, Earth Day arrives in full color – parks buzzing with volunteers, corporate campuses dotted with tree-planting events, and social feeds flooded with stunning shots of mountains, oceans, and forests. It's a powerful annual reminder of our planet's beauty and our responsibility to protect it. I strongly believe sustainability can't be a once-a-year priority. Fortunately, most of the customers, partner and colleagues I talk to believe the same - sustainability is becoming a business imperative with environmental factors impacting their day-to-day operations. Deloitte's 2024 Climate Report paints a clear picture, stating that climate change is now one of the top three priorities for global businesses. A staggering 85% of executives have increased investments in sustainability, and 70% expect climate risks to reshape their strategies within just three years. To tackle these challenges and foster a greener future, many businesses are turning to technology. Innovations in cloud ERP and AI are uniquely positioned to help businesses navigate complexity, track progress, and turn sustainability from a challenge into a competitive advantage. Through reducing carbon footprints, combatting deforestation, and optimizing resource cycles, the right technology can turn ambition into action. Reducing carbon emissions is one of the most critical benchmarks for sustainability, and one of the most complex. Emissions are typically categorized into three scopes: According to McKinsey, scope 3 emissions have the potential to far exceed scopes 1 and 2 combined, with the World Economic Forum estimating that supply chains alone can comprise 50-70% of a company's total emissions. In recent years, tracking these emissions, especially scope 3, has become essential and is increasingly mandated by governmental institutions, such as the EU's Corporate Sustainability Responsibility Directive. However, a survey by Boston Consulting Group finds that only 10% of companies measure all three emission scopes comprehensively. The same survey finds that these measurements are subject to an error rate up to 30%. This is where an ERP-centric approach shines. Solutions like SAP Green Ledger integrate emissions data directly into the cloud ERP system alongside financials. This gives companies real-time visibility into the carbon and financial impact of their operations, increasing accuracy so they can forecast, budget, and audit emissions at the transaction level. This turns carbon emission data into strategic insights to boost efficiency, achieve transparency, and transcend regulatory compliance to truly enhance sustainability. Another major sustainability concern is deforestation – a leading driver of biodiversity loss and rising carbon emissions. Forests act as critical carbon reservoirs, and their destruction not only accelerates climate change but also disrupts ecosystems and communities. Technology is helping companies tackle this challenge head-on. SAP Green Token uses blockchain-based tokenization and mass balance accounting to track the sustainability of raw materials through complex supply chains. It enables companies to verify the origin of materials and ensure compliance with commitments to combat deforestation. For example, Unilever used SAP Green Token to trace the journey of palm oil through its intricate supply chain. By tracking, verifying, and reporting the material's origin in near real-time, they've increased transparency and accountability at every stage. This empowers them to work toward their goal of a deforestation-free supply chain, ensuring their sourcing practices protect both people and the planet. Circular economies – systems designed to minimize waste and maximize resource reuse – are becoming more and more critical in sustainability efforts. Instead of the traditional linear model of take, make, and dispose, circular economies keep materials in use for as long as possible, reducing environmental impact and creating new value streams. Using SAP Business Technology Platform, Hilti Group and BCG developed the Circelligence tool, which automates the calculation of circularity scores. This gives Hilti Group clear insights into where they can improve resource efficiency and design for reuse, repair, or recycling. AI also adds significant potential. AI-driven ESG report generation within SAP Sustainability Control Tower automatically pulls and analyzes data to create reliable, actionable sustainability reports. In addition to streamlining reporting, this also helps companies monitor progress toward circularity goals to make smarter, more sustainable decisions. As sustainability challenges grow more complex and concerning, companies equipped with cloud ERP and AI are rising to the occasion. From reducing carbon emissions to combatting deforestation and promoting circular economies, these tech solutions are helping businesses turn ambitious sustainability goals into measurable action. In this way, cloud ERP and AI are offering a path toward a greener, more sustainable future – one where companies thrive while protecting the planet we all share. The choices we make today, powered by innovation, can create a better world for generations to come.
