3 Steps Tech Companies Can Take to Avoid Green Laundering Accusations

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Technology companies have have historically been viewed more positively than other sectors when it comes to ESG issues, but over the last 24 months climate regulationsand the rapid shift towards greater accountability has left many technology companies unprotected.

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Issues such as energy consumption, workforce diversity, human capital, security, data privacy, and political use of platforms are just some of the growing ESG challenges facing tech companies.

In addition to preparing for SEC regulations and the EU Corporate Sustainability Reporting Directive (CSRD), tech companies also face the risk of reputational damage due to last suppression of greenwashing.

Tech companies could put themselves at risk if they continue to display unrelated ESG and business strategies.

How big is the problem?

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The most common topics US tech companies cite in their financial reports include healthcare (#1 in the rankings, a holdover from COVID-19), security (number two), and privacy (number three). Climate change and risk management (33), greenhouse gas emissions (43), human rights (53) and biodiversity (81) are ranked lower and further down the list.

US Tech Companies: Top Topics in Financial Reports and 10,000 Filings

US tech companies: Topics covered in financial reports and 10,000 filings. Image Credits: Datamaran

For European companies, greenhouse gas emissions are among the 20 most important ESG topics, ranking 12th.th in order of priority. But since this is the most regulated environmental topic, this does not mean a strategic approach to ESG. Climate change and risk management (22) and human rights (23) are comparatively high priorities, while compliance management (35) and biodiversity (72) are further down the table.




Credit: techcrunch.com /

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