As the 2026 FIFA World Cup kicks off and brands activate around a highly visible cultural moment, new GlobeScan data points to an important strategic opportunity: Soccer fans are not only highly engaged audiences, but are also more inclined than the general public to adopt sustainable shopping behaviors that align closely with the kinds of choices brands can influence at venues, in retail environments and across fan experiences.

Globally, self-identified FIFA World Cup fans report higher participation across the sustainable shopping behaviors shown in this analysis. Nearly half say they buy products in returnable, reusable or refillable containers most or all of the time (47 percent, compared a 41 percent global average) and the same share say they often buy natural or organic products (47 percent vs. 38 percent). Fans are also significantly more likely to say they try to buy from responsible brands or companies (46 percent vs. 35 percent). Taken together, these results suggest that soccer fans are not simply an attentive audience for sustainability messaging, but that they may be more behaviorally receptive to more sustainable product and brand choices than the general public.

The contrast is even more pronounced in the U.S., where the World Cup will generate intense commercial and cultural attention. American soccer fans are almost twice as likely as the general public to say they try to buy from responsible companies (61 percent vs. 32 percent), while also over-indexing strongly on other emerging sustainable consumption behaviors, including buying natural or organic products (55 percent vs. 30 percent) and choosing reusable or refillable packaging (50 percent vs. 33 percent). This suggests that World Cup activations need not treat sustainability as a peripheral communications layer. For a meaningful subset of fans, greener choices may already align with how they want to shop and consume.

World Cup soccer fans are more likely than the global average to make sustainable consumer choices, including buying from responsible brands (46 percent vs 35 percent), choosing natural or organic products (47 percent vs 38 percent) and selecting reusable or refillable packaging (47 percent vs 41 percent).

What does this mean?

For brands, the implication is not simply that soccer fans care more, but that the World Cup creates a rare convergence of attention, identity and action in which more sustainable options may be more visible, more relevant and more likely to be chosen. That creates room for brands, retailers, sponsors and venue operators to move beyond messaging alone and make more sustainable choices easier, more attractive and more normal during the fan journey itself, whether through refill and reuse formats, more responsible product assortments or clearer signaling around responsible sourcing and brand practices.

More broadly, the findings highlight the role that major sporting events can play in accelerating behavior change. The World Cup is not only a media platform, but also a social occasion in which norms are made visible and shared. If brands use that moment well, soccer fans could become an influential audience for helping more sustainable consumption feel mainstream, aspirational and part of the excitement of participation, rather than a trade-off that sits outside the event experience.

Based on a representative online survey of more than 31,000 people in the general public in July and August 2025.

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Procter & Gamble’s longtime sustainability chief Virginie Helias is stepping down, effective June 30. Her replacement will be Michele Baeten, another veteran of P&G marketing and brand management, who is currently vice president of integrated sustainable growth.

Helias has spearheaded the consumer products giant’s sustainability strategy since 2011 and was named chief sustainability officer in 2016, reporting to P&G’s chief executive officer. She joined P&G in 1988 as a brand manager in Paris. 

“Some of my friends have chosen to retire in search of freedom, fulfillment and fun,” said Helias in a LinkedIn post about her retirement. “Those aren’t my reasons. I’ve already experienced all three throughout this journey, especially during the last 15 years leading sustainability for the company. The horizon just got a little wider.”

Helias isn’t leaving for another job, at least not yet, vowing to spend time with friends and family for the foreseeable future. 

Over the past 10 years, Helias has pushed to integrate sustainability considerations into every employee’s job — using her marketing skills to keep it front and center through multiple communications channels.

“We don’t hire for sustainability, we hire for the best finance people, the best marketers, the best legal people. We want to integrate [sustainability] as opposed to having it be a theoretical topic,” she said in our recent Climate Pioneers interview.

Helias’ replacement, Baeten, worked for Estee Lauder Cosmetics and Nestlé before joining P&G in 2006 as a brand manager for hair care.

Based in Geneva, Baeten moved onto the corporate sustainability team in 2020. She has been vice president of integrated sustainable growth since August 2025, underscoring P&G’s focus on embedding sustainability into business decisions.

“I’ve worked closely with Michele for the past six years and have seen firsthand her ability to turn complex sustainability challenges into strong business strategy, build powerful collaboration and lead with clarity,” Helias said.

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As scrutiny of data center water consumption intensifies, Amazon is increasing its use of recycled water for cooling applications and running its servers at hotter temperatures to decrease its freshwater withdrawals.

Amazon Web Services withdrew 2.5 billion gallons of water for its data centers in 2025, the company disclosed on June 10. At the sites that it owns and operates, water withdrawals decreased by 2 percent from 2024 to 2025.

It’s the first time AWS has published its water withdrawal figures; the company has historically focused on its best practices for decreasing the freshwater needed for cooling, such as opting for recycled water in its chillers, running servers hotter and pulling in outside air. It expresses progress by tracking the liters of water used per kilowatt-hour of energy (l/kWh), a measure known as water usage effectiveness (WUE), which as developed 15 years ago by tech industry trade group Green Grid.

“Communities want increased transparency,” said Brandon Oyer, head of Americas power and water for AWS, referring to the decision to publish its water withdrawal data. “We still think efficiency is the metric to focus on. Efficiency is paramount to scaling a business.’

AWS data centers are already seven times more water-efficient than the industry average — using 0.12 l/kWh, the company reported.The industry average rating for WUE is 0.84 l/kWh.

For perspective, Amazon rival Microsoft achieved a WUE score of 0.27 l/kWh for fiscal year 2025; it withdrew approximately 2.7 billion gallons of water in 2024 (the 2025 figure isn’t yet available). Google hasn’t reported a WUE number publicly; it withdrew 9.9 billion gallons for its data centers and other operations, as of its latest environmental report in 2025.

Both Google’s and Microsoft’s totals include their entire operational footprint; Amazon’s figure is strictly for AWS.

‘Water positive’ mandates

All of the big data center companies — Amazon, Google and Microsoft — have pledged to be “water positive” by 2030. Meta, Facebook’s parent company, is also working on that goal. 

The tech industry downplays the water impacts of their IT infrastructure — data centers account for less than 1 percent of all industrial water use, or less than 1 percent of what Americans use to water their lawns. 

But their water pledges have become harder to satisfy amid the furious pace of data center expansion intended to support artificial intelligence services. The dilemma is compounded when you consider that about one-third of all energy needed for data centers goes toward cooling. “It’s a continuous balance,” said Oyer.

Another challenge is aging infrastructure at many water utilities. Amazon in March committed $235 million to upgrades in Oregon, aimed at addressing declining groundwater supplies. That’s just one of its investments.

Likewise, Google has so far committed more than $500 million toward water utility upgrades, including recycling systems. It has also pledged to opt for air cooling or recycled water in regions where freshwater sources are at “high risk.”  

AWS is prioritizing the use of reclaimed or recycled water in regions where water chillers are the most energy-efficient approach. It already supports 26 recycled water projects and has another 130 sites under contract. Using recycled water is also on the list of Google’s list of best practices

Water isn’t the only way to cool a data center: Many operators use chilly outside air pumped through the server halls to remove heat, although that’s only possible in certain regions. Liquid cooling technology also helps by dissipating heat at the chip level.

Amazon has also raised the temperature threshold for when chilling equipment switches on. The ambient temperature needs to exceed 85 degrees Fahrenheit before they’re used, reducing the number of hours per day that they’re in action. 

On one Amazon campus, this approach reduced water consumption by 50 percent compared with an identical data center configuration using a lower temperature to guide cooling.  

AWS is about 75 percent of the way to its water-positive goal. Aside from changing its chilling processes, it has so far supported more than 50 water replenishment projects — enough to return more than 5.8 billion gallons of water on an annual basis.

Neither Google or Microsoft has disclosed their progress toward becoming water positive on a percentage basis, but Google reported in early June that it has more than 165 projects under way that will replenish more than 19 billion gallons of water annually by 2030. 

Learn more about best practices for balancing water and energy during Trellis Impact 26, from June 23 to 25 in San Francisco.

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The Science Based Targets initiative’s first major overhaul of its influential Corporate Net Zero Standard includes significant changes that prioritize five-year decarbonization milestones and provide additional options for reducing value-chain emissions.

Today’s release of Version 2 of the standard, the de facto rulebook for many companies’ decarbonization efforts, arrives close to five years after the original was published and is the second key document in the tenure of former EY consultant and U.K. government climate advisor David Kennedy, who has led SBTi for around a year. 

The initiative’s new strategic plan, released last month, signaled a shift in emphasis from an enforcer of target-setting rules toward a more business-friendly “transformation partner.” Over 96 pages, the new net-zero standard details what that approach will look like in practice. Here are some critical takeaways.

More options for Scope 3

The current standard acknowledges that companies need more options when setting targets to reduce indirect emissions generated by suppliers, product usage and other activities beyond their direct control. The update expands the paths for dealing with these Scope 3, or value-chain, emissions. 

  • In addition to existing options for targets based on emissions and supplier engagement, companies can tie goals to purchases or sales of low-carbon products, from green cement to electric vehicles.
  • When low-carbon goods cannot easily be accessed, companies can use environmental attribute certificates to fund supply-chain decarbonization and claim the associated Scope 3 benefits.
  • The current standard requires Scope 3 targets to cover 67 percent of value-chain emissions. Exclusions under new rules focus instead on specific categories of Scope 3 emissions: Only those that make up less than 5 percent of the company’s Scope 3 total can be omitted from a target. 

Emissions from products that a company lacks “practical influence” over can also be excluded from targets, provided the company demonstrates other efforts to decarbonize the relevant sector. Kennedy gave the example of a retailer that operates gas stations: The company can’t be expected to control fuel demand, but it could earn SBTi validation for its target by committing to installing EV charging facilities.

Long-term targets no longer required

Companies seeking SBTi validation under the current net-zero standard are required to pair a near-term target, often for 2030, with a long-term commitment to reach net zero by 2050 or earlier. The new standard eliminates the requirement for long-term goals in many cases and shifts the emphasis toward compliance with cycles of near-term five-year targets. (SBTi currently offers criteria companies can use to set near-term targets independently of net-zero goals; the new standard combines both types of target in a single net-zero framework.)

“Companies are often reluctant to make commitments that go 20 years into the future,” explained Kennedy. “That isn’t common business practice, which is why we’re not requiring it.”

To maintain SBTi validation, companies will commit instead to what the standard calls a “continuous cycle of target setting, implementation and ongoing progress reporting.” In practice, this will mean reporting annually on progress toward the target. At the end of each five-year cycle, that assessment must be backed by an assurer.

Companies that fail to meet targets at the end of five years can expect to retain SBTi validation, provided they can demonstrate they have used “every lever” within their control, have been transparent about decarbonization challenges and described how they will overcome those barriers. “You can’t have a binary approach to meeting targets in the real world of uncertainty and dependency,” said Kennedy.

No call on hourly matching for electricity 

The Greenhouse Gas Protocol’s proposal to change how companies account for emissions from electricity purchases — which fall under Scope 2 — is one of the most contested issues in corporate sustainability today. Almost all companies follow the protocol when estimating emissions, and the organization is considering tightening the rules so that they must match electricity use with local low-carbon supply on an hourly basis. 

Perhaps because the protocol is yet to make a final decision, the SBTi is charting a middle course, at least for now. Hourly matching is “probably a good thing” because of the price signal it creates for utilities, said Kennedy. “But the evidence base is really thin on that.” 

SBTi has issued a call for evidence on the topic. Meanwhile, it is adding reporting and voluntary recognition criteria to the updated net-zero standard:

  • Companies with “significant” annual electricity use — 10 gigawatt-hours or greater in any area of business — are required to report the proportion of that electricity that was matched with renewable sources on an hourly basis.
  • To earn recognition under the SBTi’s Scope 2 Hourly Matching program, companies must match at least 50 percent. The threshold increases to 75 percent in 2030 and to 90 percent in 2035.

Responsibility for ongoing emissions 

Hourly matching is not the only area where the SBTi is offering a new form of validation: Companies can also be recognized for going beyond direct decarbonization and tackling ongoing emissions using carbon credits and other support for climate solutions. 

The new Ongoing Emissions Responsibility recognition program spans three levels:

  • Engaged companies are those that purchase carbon credits equivalent to 1 percent of their total annual emissions or apply an internal carbon price to the same quantity of emissions and use the proceeds to support climate solutions.
  • Advanced businesses must cover 10 percent of emissions and, if using a carbon price approach, set it at least at $20 per metric ton of carbon dioxide equivalent (tCO2e).
  • Leadership status goes to large companies that cover 100 percent of emissions with credits and apply an $80/tCO2e price to the same amount. (The bar is lower for smaller companies.)

After 2035, a related mandatory requirement will kick in: Companies must purchase carbon removal credits to cover 1 percent of ongoing emissions, with coverage rising linearly until it hits 100 percent in 2050 — or earlier, should the company opt to commit to reaching net zero before that date. 

What happens next

Companies with 2030 target dates should plan for their next cycle — 2030 to 2035 — using the standard that was released today. But those that have only committed to setting targets and have been working with Version 1 need not change course: The current standard will remain available until the end of 2027. 

SBTi is also working on additional resources that will flesh out the standard. A “Methods and Pathways” document containing technical details for target-setters was opened for comments today; companies have until July 31 to provide feedback. A final version of the document, together with other guidelines on how companies should prepare for target submission and validation, is due in the fourth quarter of this year.

That will be followed in the first quarter of 2027 by information on how to obtain assurance during end-of-cycle assessments and communicate claims about SBTi targets. Validation against the new standard will then begin in February 2027.

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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis or its editors.

Let’s say your company is making progress toward reducing its overall environmental impact but wants to go further to compensate for the hardest-to-abate emissions. You know your peers are purchasing carbon credits to do so, but you’ve seen too many examples of a company buying the wrong kind and attracting negative media coverage — or spending way more money than you can afford.

Those concerns are not unfounded. But high quality is not always high cost. A recent Trellis article by Jim Giles highlighted three companies, Autodesk, EY and Salesforce, that topped the Calyx Global “large buyer” leaderboard for purchasing high-quality carbon credits. All have done so putting together portfolios of credits that are not only high quality but also control costs. 

This article dives deeper into the credits purchased by two buyers on Calyx Global’s leaderboard—one large- and one small-volume buyer. It illustrates two journeys to high-quality carbon credit portfolios within two very different budgets, and why these companies’ paths make me optimistic about the future of carbon markets.

Large buyers diversify opportunities and risks

All three large buyers on the leaderboard — Autodesk, EY and Salesforce — purchased a diversified portfolio of credits. So what did they buy? Each combined nature-based credits with “super pollutant” credits. 

I recently spoke with Valerie Lossman, environmental sustainability strategy and operations leader at EY (formerly Ernst & Young). She explained how EY addresses residual emissions within a broader, integrity-led net-zero strategy. EY purchased around 600,000 metric tons of higher-quality super-pollutant credits and over 300,000 nature-based credits. I asked how EY chooses their portfolio.

EY’s diversified portfolio approach balances different credit types to manage risk while delivering a broader set of outcomes, Lossman explained. The company expanded into super-pollutant credits, which provide high-confidence emissions reductions, alongside nature-based credits that generate important co-benefits for biodiversity and local communities. “We intentionally incorporate both technology-based and nature-based solutions to reflect the interconnected nature of climate and ecosystems aiming to deliver value beyond carbon mitigation alone,” Lossman said.

Small buyers test the waters and build budget-friendly portfolios 

Smaller buyers are also moving to higher quality. In 2024, Williams College conducted a wholesale review of its approach in response to critical studies coming out about the quality of carbon credits. Officials wanted to know: “Did we make the right purchases?” 

Following the review, Williams began with a small trial run of offset purchases to analyze and decide if their process was workable before committing the college to annual purchases, said Tanja Srebotnjak, Williams’ Executive Director of the Zilkha Center for the Environment. Ultimately, the college selected a portfolio of high-quality credits. 

“Purchasing carbon credits and the not-insignificant budget that goes toward that is in some ways also a reminder that there is a cost to emissions, which helps us incentivize carbon reductions on campus,” said Srebotnjak. 

The bulk of Williams’ purchases last year came from a super-pollutant project, which scored high for affordability. However, Williams also wanted to go further to support emerging technologies, so it purchased a small number of more expensive credits from a biochar project.

Srebotnjak said that over time she has become more confident in becoming a competent buyer in the market. “For smaller institutions or those just getting started, you don’t need to know everything on Day 1. It can be a process of learning and iteration.” Her budget for purchasing offsets has grown, as she has been able to increasingly make the case for maintaining carbon neutrality.

From market pessimism to optimism

A shift to higher standards has accelerated in the past few years. The chart below shows the integrity of credit retirements over time, aggregating the top seven buyers on the Calyx Global leaderboards. The improvement is notable. 

Source: Calyx Global. Based on public information and Calyx Global ratings

Many buyers lost confidence in 2023, when quality problems with VCM credits came to light. Today, many companies are pivoting to higher quality credit purchases — suggesting that confidence is returning to the market. 

Some key lessons:

Start small. If you have not yet purchased carbon credits, follow Williams College’s example and buy a small amount, testing the process to see how it feels. Then iterate.

Diversify. One way to manage benefits and risks is to buy from multiple projects. EY selected projects for their high integrity, but also looked for “beyond carbon” benefits. Williams purchased super-pollutant credits, which are more cost effective, but balanced these with a small purchase of durable removals.

Improve continuously. EY said it continuously refines its criteria to reflect market developments. Similarly, Williams got started and layered onto its approach new tools to improve due diligence.

Build confidence in steps. Williams was able to start small and, over time, build confidence with internal stakeholders. This allowed the college to increase its budget and to maintain its carbon-neutral objectives.

Many companies follow the guidance of the Science-based Targets Initiative, which is set to adopt new guidance this year that may include recognition for near-term action that includes the use of carbon credits. If this helps get companies off the sidelines, and they follow the lead of organizations such as EY and Williams College, I believe the carbon market can turn a corner and become a more impactful tool to protect our planet.

Join Calyx Global, HKS and Workday for a panel session on “How to Secure Carbon Credits that Deliver Maximum Climate Benefits” at Trellis Impact 26 on June 23. Register by June 19 to save $200.

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What should a company do when its single-largest source of emissions jumps by more than 20 percent due to a change in accounting rules?

That’s the unenviable challenge eBay is grappling with as it figures out how to report greenhouse gases generated by the trucks and airplanes that deliver goods sold on its platform — emissions that make up more than 80 percent of the company’s 2025 total footprint of 1.8 million metric tons of carbon dioxide equivalent.

None of the options that eBay has tried or is planning for are appealing: It can undergo an expensive restatement process, publish numbers that prevent apples-to-apples comparisons or risk being accused of understating its emissions. The situation is an example of the dilemma many companies face in accounting for Scope 3, which is often both the largest and the least-well–understood source of corporate emissions.

The origins of the problem

After an item is sold on eBay, sellers can print shipping labels direct from the platform. Thanks to this integration, FedEx and other carriers send eBay emissions estimates for those deliveries. If the carrier can’t provide data, eBay uses emissions factors to translate the weight of the package and distance traveled into what are known as “transport and distribution” emissions.

The emissions factors that eBay uses are developed by the Global Logistics Emissions Council (GLEC), which counts more than 150 companies, industry associations and independent experts as members. In 2023, some of those factors were increased, a consequence of new data showing that methane leaks during fossil fuel extraction and processing were higher than previously realized. When the new factors were applied to eBay’s 2024 data, emissions from shipping jumped 23 percent.

What eBay did

The original version of eBay’s 2024 impact report, published in May 2025, included the new numbers. This significantly changed the company’s Scope 3 trajectory. 

The year before, the company recorded a 36 percent drop in transport and distribution emissions since 2019, comfortably beating its goal of a 27.5 percent cut by 2030. After applying the new emissions factors, the reduction was 21 percent — still impressive, but not necessarily on track to hit the 2030 goal given that recent progress in cutting transport and distribution emissions has been slower. The change also muddled the data, because previous years’ disclosures were not recalculated using the new emissions factors.

The misalignment was noticed the following year as the sustainability team prepared eBay’s 2025 report, said Melissa Bauer, the company’s ESG and sustainability strategy lead. The 2024 report was updated using the earlier GLEC emission factors, with a footnote explaining that the change was intended to “facilitate comparability” with previous years. eBay’s 2025 report, released last month, also uses the older factors.

The company’s conundrum

The change means that readers of eBay’s reports can now make an apples-to-apples comparison of the company’s progress on Scope 3, which shows a significant and target-beating decline since its baseline year of 2019, followed by smaller increases in recent years.

eBay’s progress on transport and distribution emissions

Source: eBay’s 2025 Impact Report

It also means that the company is no longer using the latest science to estimate its emissions. Alan Lewis is chief technical officer at the Smart Freight Institute, the organization that oversees GLEC. He is sympathetic to eBay’s situation, noting that there are different interpretations of how Greenhouse Gas Protocol rules apply to the reporting of transporting and distribution emissions and that eBay has tried to be transparent. “I absolutely respect them for that,” he said. 

But, he added, there’s a reason why the emission factors were updated — and not using the new ones means that there is a risk that eBay could be perceived as greenwashing.

To align with the best science and stay consistent, Bauer hopes that eBay’s next report will state both the 2026 numbers and the historical data using GLEC’s current emissions factors. But that’s not an easy fix: Restating multiple years of data will incur costs in the six figures and take most of a year, she said.

The way forward

In addition to external reputation risks, sustainability professionals can face internal costs when emission numbers jump around due to changes in scientific understanding or external data. 

“It’s very hard for for sustainability professionals to explain to senior management: ‘What we told you three years ago was wrong, because the science has improved, and actually our emissions three years ago were higher’,” said Lewis. “You can imagine that doesn’t go down very well.”

The changes are also a distraction from other tasks. eBay wants to align with the best science, said Bauer, while also focusing on the ultimate goal of decarbonizing its footprint. Yet there’s no quick solution: Estimating Scope 3 emissions remains an imprecise business, and improvements to that process can’t be ignored just because the consequences are time-consuming. 

Bauer points out that the standard-setters could do more to coordinate changes. When companies estimate emissions and set targets, they need to consider not just industry-specific emission factors, but also rules from the Greenhouse Gas Protocol, Science Based Targets initiative and other organizations. Something is always changing, she said, and if sustainability professionals tried to stay up to date with all of it, that would be all they ever did.

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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis or its editors.

The conditions shaping corporate sustainability have not only intensified —  they’ve broken in ways few expected. Last year we examined the public posture of 75 multinational companies to determine how political pressure was influencing their climate commitments and sustainability strategies. Using only publicly available information, we analyzed whether companies were progressing, holding steady or retrenching, and to what extent their actions matched the public narrative. (For more detail on the companies examined, see below.)

The result, originally published in Harvard Business Review, pointed to the rise of “greenhushing” as a response to the volatility, where a reduction of public exposure and communication intentionally masks programs that not only remain intact, but are in many cases accelerating. 

One year later, intensifying political pushback in the U.S., combined with tightening regulatory expectations in Europe, has created an even more fractured global landscape, raising the question: Will corporate climate ambitions continue to retreat under sustained pressure, or be reshaped by it? 

We revisited the same 75 companies to determine how responses are evolving one year later.

Across our findings, commitments appear stable in the aggregate — but beneath the surface those firms have materially adapted their strategies, communication and implementation, often in contradictory ways. This is not a simple story of retreat or progress. The research from this secondary observational period, extending through early 2026, reflects a deeper transformation: companies are no longer responding to a single set of expectations, but to multiple, overlapping markets that do not consistently align.

For sustainability leaders, the challenge is no longer deciding what commitments to make; it’s how to maintain coherence in a system that is no longer inherently coherent.

Three modes of fragmentation  

If companies are no longer moving in sync, what is driving that divergence? The data points to three distinct shifts:

Stability is a false signal: Public commitments may appear stable, but comparing strategy across peer groups obscures how rapidly positions are shifting in practice. The direction of travel is a stronger signal; understanding how companies are evolving is more valuable than where they stand at a single point in time.

The global playbook is fragmenting: Companies are adapting to regional policy conditions that increasingly drive strategy in different directions. While tightening European regulation has long driven convergence in global corporate sustainability strategy, its influence today is being challenged by competing political and market forces. Rather than responding to a single regulatory center of gravity, companies are increasingly navigating multiple coexisting systems shaping corporate behavior.

Coherence is breaking down within firms: Commitments, governance, policy engagement and institutional affiliations no longer reliably reinforce one another. The result is a proliferation of mixed signals from individual corporations across markets, functions and stakeholders — and the introduction of visible credibility risks.

These trends point to a structural change in how sustainability strategy is developed and managed. Climate commitments no longer represent a unified, consistent signal; They are shaped by how firms navigate competing pressures across regions, functions and institutional contexts. For sustainability leaders, the challenge is no longer simply to set direction, but to manage tradeoffs across systems where competing pressures cannot always be reconciled. The task is no longer to eliminate uncertainty, but to manage it while continuing to move forward.  

How to make progress without a playbook 

If the playbook no longer holds, how should companies respond? Here are five shifts in managing sustainability strategy today:

Track movement, not just commitments: Most companies benchmark climate strategy using static commitments — but those are increasingly lagging indicators. What matters now is not where a company stands, but how it is moving. Start by revisiting your core peer group and tracking how governance signals and external engagement have shifted over the past 6-12 months. The advantage comes from understanding movement across fragmented signals, not just measuring it at a point in time.

Don’t try to force global consistency: Many companies still try to apply a single sustainability strategy globally, even where it’s regionally unstable. In practice, political, regulatory and stakeholder pressures are diverging in ways that require fundamentally different approaches by market. Start by identifying where your current strategy is enabled by regional context — and where it breaks down. The difficulty is that most organizations lack a framework for responding to deliberate strategic divergence without creating unintentional misalignment.

Actively manage internal conflict: Climate commitments are often treated as a coordination challenge — but now they function as a source of conflict. Sustainability, policy, legal and communications teams often optimize for competing objectives while working toward the same goal. Start by identifying where these tensions are already surfacing and make them explicit by grounding decisions in the signal from regional teams closest to market realities. The advantage comes from navigating these tradeoffs intentionally rather than letting them play out implicitly.

Leverage institutional complexity: Companies often treat external affiliations as background context rather than strategic inputs. But in a fragmented system, maintaining relationships across organizations with differing positions should be strategic, not a liability. Start by mapping how affiliations shape your exposure across markets, where they enable regional flexibility and where they magnify risk. The advantage comes from proactively managing conflict rather than reducing it. 

Redefine coherence to manage contradiction: Most companies still treat coherence as consistency, aligning commitments, governance and external engagement into a single position. But in a fragmented system,  contradiction is not always a failure of strategy; it can be a defining feature. Start by identifying where competing signals exist, whether those differences are intentional and where they create an advantage. The ultimate optimization is not eliminating inconsistency but controlling it. 

The limits going it alone

Corporate sustainability is no longer defined by ambition, but by constraints. Leaders are not retreating or waiting for clarity; they’re actively managing strategy across conditions they don’t control. The companies that move ahead will be those willing to define new paths within these constraints, rather than waiting for them to resolve.

We hope you’ll join us in exploring these questions with sustainability leaders at Trellis Impact 26, June 23-25 in San Francisco. Kelly will be hosting a roundtable lunch on June 24. 

The cohort of 75 multinational companies is composed of the top 25 companies by market capitalization of the S&P 100, Stoxx Europe and Fortune 500 listings as of March 1, 2025. The complete methodology and analysis for the original research and observational window of study can be found here, while the expanded methodology and analysis for the second observation window can be found here.

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Major automakers are significantly understating the emissions generated by the vehicles they sell, according to research from Carbon Tracker, a financial think tank.

The discrepancy between manufacturers’ figures and Carbon Tracker’s estimates, researchers said, is the result of “unrealistic” assumptions about lifetime use of vehicles and other modeling parameters.

This creates a “Carbon Gap” between reported emissions from the use of sold products — Category 11 of Scope 3, which typically accounts for around four-fifths of an automaker’s total emissions — and what the think tank said are its more accurate numbers

  • The relative gap between reported 2024 emissions and the Carbon Tracker estimates is greatest for Subaru, which the researchers found is responsible for three times more vehicle-use emissions than the company published. 
  • General Motors, which has a higher sales volume than Subaru, has the largest absolute gap between reported and actual emissions — more than 200 million metric tons of carbon dioxide, 85 percent of its published total. 
  • Ford and Toyota have gaps of around 33 percent — average for the 18 companies in the study.

Absolute and relative “Carbon Gaps

Source: Carbon Tracker.

Assumptions about lifetime miles driven is the primary reason for the gap. In Subaru’s case, Carbon Tracker said the company uses an estimate based on its domestic Japanese market even though around 70 percent of its sales are in the U.S., where lifetime milage is greater.

Real-world use of plug-in hybrids also skews the data. Industry tests assume these vehicles run on battery power more often than is actually the case: The researchers cited a study of 800,000 European vehicles that found five times more emissions than industry numbers suggested.

A Ford spokesperson said the company’s assumptions are consistent with best practices for Scope 3, Category 11 reporting, and are publicly disclosed. Subaru, GM and Toyota declined to comment. 

“For the investor, absolute Scope 3 Category 11 totals cannot be taken at face value,” the researchers wrote. The Carbon Gap is not an accounting nuance, they added. Rather, it represents “material financial risk,” from additional exposure to carbon pricing mechanisms and the mispricing of long-term risks in the transition to a low-carbon economy.

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This April, some of the biggest names in sustainability gathered at the neoclassical Gotham Hall in midtown Manhattan to toast the quarter-century anniversary of environmental disclosure platform CDP, one of the profession’s most notable organizations. 

More than 22,000 respondents shared emissions data with CDP last year, including businesses that together are responsible for nearly two-thirds of global market capitalization. 

Today, though, that relationship is fraying. Companies have long grumbled about CDP’s bureaucracy and fees. More recently, as mandatory disclosure laws proliferate, some have started asking whether voluntary reporting is even needed. The data suggests that at least a few think it isn’t: For the first time, the number of reporting companies fell in 2025. 

CDP asserts that its role remains critical because it ensures that data is not just reported but used — by investors, supply-chain partners and others. Nonetheless, recent developments raise an uncomfortable question: Are companies ready to break up with CDP?

‘Wildly successful’

CDP launched in 2001 and received 235 responses from companies, cities and states to its initial emissions data request. Some recipients had no idea where to start: In a 2022 podcast, CDP co-founder Paul Dickinson recalled a large logistics company that claimed it had no emissions to report. Dickinson asked if it was sure. Well, none except from the trucks and airplanes, the company replied. 

Things are very different now. In addition to emissions, CDP asks about water use, forests, plastics, oceans and biodiversity. The organization has also expanded beyond its original mission of helping investors understand and engage with corporate environmental strategies. Companies that pay to join CDP’s Supply Chain program, for example, can use the platform to send disclosure requests to suppliers. More than 45,000 businesses were asked to share data in this way in 2025. For suppliers, the process allows them to complete a single disclosure that multiple customers can use.

Today, though, some form of the emissions disclosure that CDP has pushed on a voluntary basis is, or will soon be, mandatory in more than 40 jurisdictions worldwide, from California to Qatar.

“It’s much easier to legislate for something if people are already doing it voluntarily,” said Owen Hewlett, chief technical officer at Gold Standard, a leading standards-setter for carbon credits and related projects. “So you’d have to say that it’s been wildly successful.”

Failing grade

Moments of tension between standards bodies and companies are inevitable. The GHG Protocol’s proposal to change how emissions from electricity generation are accounted for sparked an ongoing, sometimes heated, dispute. Frustration has also arisen over a recent rules change at the Science Based Targets initiative.

In CDP’s case, opaque bureaucracy has often been the focus. The 2024 disclosure cycle, for example, was marred by technical glitches. The following year, an unrelated issue caused what CDP describes as “isolated” problems. 

One sustainability team member at a well-known U.S. company, who asked to remain anonymous because she was not authorized to discuss the incident, described receiving a D grade for the firm’s 2024 disclosure. The result was a “complete and utter shock” to a company that had previously scored much higher. 

CDP reluctantly agreed not to publish the score and eventually acknowledged that a technical error had wrongly penalized the company. It was regraded with an A-. 

“A small number of scores were affected by a technology error in 2025, where ‘not applicable’ responses were incorrectly marked as ‘unanswered,’ ” said Shannon Joly, CDP’s chief marketing and communications officer. “This was identified and resolved post release, and corrected scores were issued to affected organizations.”

Occasional issues are inevitable when processing submissions from 22,000 companies. Yet the 2025 problems came in the same year that CDP laid off one-fifth of its staff, in part to channel more money into improving its technology.

Many other sustainability professionals have related tales of frustration in off-the-record conversations. A transport-industry professional said his company submits but asks not be scored, pointing out that some oil and gas companies have been awarded relatively high scores. “Who wants to score lower than them?” he asked. Others are no longer submitting at all: One tech-company employee said that after years of disclosing she can no longer justify the time, and investors are not asking her to do so.

Companies disclosing to CDP

Source: CDP

Joly declined to offer reasons behind the recent fall in submissions, but one potential cause is the global growth in mandatory disclosure requirements. After years of fragmented approaches, international standards have coalesced around rulebooks created by the International Sustainability Standards Board (ISSB). The board is overseen by the same organization — the IFRS Foundation — that sets global rules for financial reporting. 

Some companies are starting to point investors and other stakeholders with sustainability questions to these mandatory disclosures, said Pamela Gill-Alabaster, a former sustainability leader at Mattel and healthcare company Kenvue who now teaches at Columbia University. A study released last year by the University of Zurich examined disclosures from more than 3,400 companies in 36 countries and found that the likelihood of a company disclosing to CDP dropped by 5.5 percent since the introduction of a mandatory disclosure requirement.

“CDP played a really essential role in building the market, but regulation has redefined the architecture for reporting,” Gill-Alabaster said.

Alternative futures

This suggests that disclosures to CDP — and the organization’s relevance — may continue to slowly decline. But that’s far from a foregone conclusion, in part because mandatory systems have shortcomings that CDP is well placed to address. 

The organization supports the alignment of reporting standards, said Joly, but a voluntary option remains critical. “CDP is ensuring the data is not simply reported, but being used by a multitude of actors spanning businesses, financial markets, investors and policy makers. This provides more comprehensive insights into risks, dependencies and opportunities, and helps to fill key information gaps across markets and value chains.” 

There’s also the issue of data quality. Disclosures to the EU’s Corporate Sustainability Reporting Directive and other systems are published on company websites rather than in a central system, making it challenging to compare sectors and companies. There are startups using AI to extract data from company reports and assemble it in a single platform, but the results often contain errors. CDP’s data, which comes directly from its questionnaires, remains superior for now, said Maximilian Müller, a financial accounting expert at the University of Cologne.

As a nonprofit with a stated agenda — to enable “Earth-positive decisions to protect future generations” — CDP can also pursue broader goals than those enshrined in disclosure regulations, which tend to focus on the risks and opportunities associated with climate change rather than on company impact. (The EU is a notable exception — its rules also address impact.) 

To put it another way: Having had great success with the disclosure challenge, CDP might now set itself new and more ambitious goals. “There is room for an organization to bring together a more holistic reporting across climate and nature and in a more efficient way, and then continue to drive best practice,” said Hewlett. 

Perhaps CDP continues in its traditional role — part facilitator, part motivator, part castigator — but with a broader focus. It might not be loved by all the companies that work with it, but that’s not the point. What matters is that there’s still enough common ground — a desire to make progress on sustainability — to keep the relationship together.

The post Why CDP faces an uncertain future after 25 years of progress appeared first on Trellis.

Asked to name a company with an ambitious climate program, even sustainability veterans would likely choose one from North America or Europe. But over the past year or so, a series of private- and public-sector initiatives have moved the center of gravity of corporate sustainability towards Asia.

The most recent nudge is the launch late last month of the Action for a Resilient Climate (ARC) Coalition, which aims to aggregate demand for at least 10 million tons of carbon credits by 2030. The organization brings together potential buyers, including Mitsubishi and Tencent, as well as carbon market service providers and the World Wide Fund for Nature Singapore.

The move comes just over a month after Japan’s own emissions trading scheme, known as the GX-ETS, became mandatory for hundreds of companies. China, South Korea, Indonesia and several other Asian countries are also operating trading schemes and related carbon pricing mechanisms. The spread is driven in part by the EU’s Carbon Border Adjustment Mechanism, which is motivating exporting countries to restrict domestic carbon in order to limit the bloc’s carbon-based import fees.

Asian countries are also starting to attract notice with splashy climate initiatives. GenZero, a $5 billion climate solutions investment platform owned by Temasek, Singapore’s sovereign wealth fund, has partnered with other notable funds, including Breakthrough Energy. Tencent is investing tens of millions of dollars in innovation competitions for carbon removal and other areas as it seeks to define itself as a sustainability leader. And a host of Asian businesses are setting emissions commitments: More than 1,200 have had theirs validated by the Science Based Target initiative in the 12 months prior to April, making Asia the fastest-growing region for target validation.

The ARC coalition builds on this momentum, and, added to the other developments, it could affect a change in the global use of voluntary carbon credits. Currently, Asia lags behind Europe, North America and South America in terms of annual retirements of credits, according to data from AlliedOffsets, a carbon markets data firm.

Carbon credit retirements 

Data does not include buyers for which AlliedOffsets does not identify the headquarters location. Source: AlliedOffsets

In addition to aggregating demand for credits, the coalition will create a financing facility for early-stage carbon projects, establish “transparent and robust standards” to guide buyers and curate specific projects to streamline due diligence. It’s also planning to partner with the Symbiosis Coalition, a buyers group focused on high-integrity, nature-based solutions backed by Google, McKinsey, Meta and others.

“If we can scale integrity alongside participation, carbon markets can become a far more effective channel for mobilizing private capital into a just transition,” said Frederick Teo, CEO of ARC member GenZero.

The post Mitsubishi, Tencent and WWF unite to kick-start carbon credit buying in Asia appeared first on Trellis.