Amy DeMartine, Vice President and Research Director and Abhijit Sunil, Senior Analyst
It’s time to face facts. Ethics and good intentions have not been effective motivation for businesses to take steps to slow climate change. So what’s the best way to drive action? Opportunity. And lots of it.
In this episode, Vice President and Research Director Amy DeMartine and Senior Analyst Abhijit Sunil break down Forrester’s new research on the green market revolution and discuss some of Forrester’s 2023 sustainability predictions.
The episode starts by putting into context just how big the green market business opportunities are today. DeMartine says the US and the EU alone are currently spending $1.4 trillion on environmental sustainability and climate adaptation initiatives. That, combined with a renewed interest in committing to renewable energy sources and a huge spike in green venture capital, is creating this historic opportunity.
DeMartine next details the benefits of segmenting customers based on their green buying habits. Forrester has identified four key segments that can inform a green market strategy. (A future episode will take a closer look at these green consumer segmentation strategies.)
Also in this episode, the analysts discuss some of Forrester’s 2023 predictions for sustainability. Sunil discusses the prediction that five Fortune Global 200 firms will announce policies limiting travel to try to lower their carbon footprint, adding that some firms already scrutinize how employees choose to travel. Green travel also offers an opportunity for firms developing new innovations such as green fuels or electric transport equipment but presents some unique challenges, as well.
The analysts also discuss the prediction that at least 10 companies will incur $5 million or more in greenwashing fines. While that may seem like a lot, Sunil says, “There is pressure from consumers, watchdogs, regulators, and … we will see some strong actions and scrutiny for companies that are overstating their sustainability claims.”
Be sure to catch the episode’s close, in which DeMartine provides clear advice for firms that are looking to make the most of the green market opportunity in the years ahead.