Why COOs Are Emerging as Key Sustainability Leaders
Takeaways
- COOs are becoming central to sustainability, with operational decisions driving decarbonization and efficiency.
- Forrester predicts significant shifts, including $2 billion in investments in small modular nuclear reactors and stricter reporting regulations.
- Climate risk analytics and green jobs are on the rise, reshaping how businesses plan for growth and compliance.
Environmental sustainability is entering a new era in 2026, one marked by genuine action and measurable results rather than symbolic messaging. According to a new report from Forrester, companies that treat sustainability merely as a branding exercise will face challenges in justifying their budgets. Those that incorporate sustainable practices into their core business strategies, however, will be better positioned to differentiate themselves and grow.
One of the most notable shifts is the rising prominence of the Chief Operating Officer (COO) in driving sustainability outcomes. “The vast majority of decarbonisation levers for various industries are operational,” said Abhijit Sunil, senior analyst at Forrester. “Putting together the right processes, finding efficiency levers, and budgeting for optimisation efforts can all lead to the COO being a strategic partner for the CSO.”
Sunil added that the ideal future would see sustainability metrics fully integrated across functions, so much so that the role of the CSO may no longer need to exist. This vision was echoed at NY Climate Week, where leaders highlighted how close collaboration between COOs and CSOs is becoming standard practice.
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Key Trends to Watch
Forrester’s analysis outlined several developments that COOs and sustainability leaders in Asia should monitor:
- Two billion dollars in nuclear investments: Hyperscale technology companies such as Google, AWS, and Microsoft are expected to invest heavily in small modular nuclear reactors (SMRs). These assets, integrated into microgrids, will help meet the growing energy demands of artificial intelligence applications while improving energy resilience in data centres.
- Sustainability reporting under scrutiny: Forrester predicts that three Fortune 1000 companies will face exposure for errors in sustainability reporting. With regulations tightening, organizations without strong data governance frameworks risk damaging their reputations.
- Climate risk analytics growth: Driven by regulations like California’s SB 253 and SB 261, as well as similar frameworks in the EU, UK, Hong Kong, and Australia, the market for climate risk analytics is set to double. This will push companies to adopt advanced tools to track emissions and disclose risks accurately.
- Expansion of green jobs: By 2030, global green jobs are projected to grow from 66 million to 84 million across 14 countries. Nearly half of these will be concentrated in agriculture and renewable energy, with China and India leading the surge.
Also Read: What are the Benefits of Sustainable Development?
The Path Forward
As sustainability moves into this new phase of authenticity, COOs in Asia and beyond will need to strengthen governance frameworks, invest in the right technologies, and build partnerships that align with evolving regulatory and market demands. Forrester’s outlook makes one thing clear: The COO’s role in sustainability leadership is no longer optional; it’s mission-critical.
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Source: FUTUREIOT
