This 2026 environmental sustainability is set to undergo a significant transformation, shifting from performative messaging to genuine efforts that yield measurable returns.
Forrester predicts that organisations that view sustainability as merely a branding exercise will find it increasingly difficult to justify their budgets. In contrast, those integrating sustainable practices into their core business values will differentiate themselves and drive growth.
“We are seeing a rise in prominence of the chief operating officer’s role in sustainability." Abhijit Sunil, senior analyst at Forrester. "In fact, the Chief Sustainability Officer is working more closely with other functions than ever before, and this was a common theme at NY Climate Week.
Abhijit Sunil
"One leader told me about the future of the CSO role: in an ideal future, the CSO should not exist. All the sustainability KPIs should be integrated into other functions, including the COOs.” Abhijit Sunil
Sunil emphasised that COOs can play a crucial role in driving efficiency and optimisation, leading to significant sustainability outcomes.
“The vast majority of decarbonisation levers for various industries are operational. Putting together the right processes, finding the right efficiency levers, and budgeting for optimisation efforts can all lead to the COO being a strategic partner for the CSO,” he added.
Forrester’s analysis highlights key trends that COOs and heads of sustainability in Asia should monitor closely. One notable trend is the predicted investment of over $2 billion in small modular nuclear reactors (SMRs) by hyperscale tech companies like Google, AWS, and Microsoft.
As these companies look to meet the growing energy demands of AI applications, they are expected to own and operate nuclear assets within microgrids. This shift presents a strategic opportunity for organisations to enhance energy resilience and cost efficiencies in data centres.
Another critical insight is the anticipated exposure of three Fortune 1000 companies for erroneous sustainability reporting. With regulatory scrutiny increasing, organisations lacking robust data governance frameworks will face significant reputational risks. Sustainability leaders must invest in comprehensive governance structures to ensure compliance and maintain stakeholder trust.
Moreover, the climate risk analytics market is projected to double, driven by new regulations such as California’s SB 253 and SB 261, which mandate public disclosures of greenhouse gas emissions. This regulatory landscape aligns with global frameworks in the EU, UK, Hong Kong, and Australia, making it imperative for organisations to adopt climate risk analytics tools.
Forrester also forecasts a surge in green jobs, with an increase from 66 million to 84 million workers across 14 countries by 2030. Almost half of these jobs will emerge in agriculture and renewable energy sectors, primarily fueled by the economic growth in China and India.
As the era of authenticity in sustainability unfolds, COOs and sustainability leaders in Asia must strengthen their internal governance, invest in the right software solutions, and form strategic partnerships to thrive in this evolving landscape.
