As environmental sustainability enters a new era of authenticity, the role of the Chief Operating Officer (COO) is becoming increasingly pivotal in aligning organisational strategies with genuine ESG (Environmental, Social, and Governance) goals.
According to Forrester’s 2026 Predictions for Environmental Sustainability, enterprises that treat sustainability as a mere branding exercise will struggle to justify their budgets, while those embedding these values into their core operations will thrive.
In this evolving landscape, COOs are uniquely positioned to drive these authentic sustainability efforts. By integrating ESG principles into everyday business practices, they can ensure that sustainability is not only a checkbox but a fundamental aspect of the organisational culture.
Forrester senior analyst and lead author of the report, Abhijit Sunil, emphasises this shift: “Organisations that treated sustainability as a marketing exercise will no longer be able to justify their budgets as urgent, short-term demands take precedence.
"Instead, those that root their environmental sustainability efforts into core organisational values will grow their budgets and create competitive advantages.” Abhijit Sunil
Forrester predicts that major tech companies, referred to as hyperscalers, will invest more than $2 billion in small modular nuclear reactors (SMRs) by 2026.
As COOs plan for energy resilience and operational efficiency, they must consider how to leverage these investments. This involves not just adopting new technologies but also forging strategic partnerships that align with their sustainability goals.
Moreover, the report highlights the increasing scrutiny on sustainability reporting. By 2026, three Fortune 1000 companies are expected to face exposure for erroneous sustainability claims due to a lack of robust data governance frameworks. Here, the COO's role in overseeing data integrity becomes crucial.
“Sustainability leaders must invest in robust governance to avoid compliance failures and reputational damage,” Sunil advises. This requires COOs to foster collaboration across departments, ensuring that sustainability metrics are accurately tracked and reported.
Additionally, the climate risk analytics market is set to double, driven by new regulations requiring public disclosures of greenhouse gas emissions. COOs must prioritise investment in climate risk analytics software to meet these requirements and build investor trust.
In a rapidly changing regulatory environment, COOs who proactively embed sustainability into their operational frameworks will not only enhance their organisations’ reputations but also drive tangible business results.
