How Technology is the Shortcut to Sustainability

Leading global companies recognize the importance of sustainability in their overall strategy. However, achieving green goals requires a 360-degree approach. If companies want to make environment-friendliness their competitive edge, they must integrate data and technology from the start. But technology, in this context, is much more than “green IT”. Managers must think about whether they are bringing the right technology to the table.

Thankfully, there are several “right technologies” that help companies achieve their green goal. This article discusses processes and technologies that enable corporates to not only reach their sustainability targets but also make our planet cleaner and habitable for future generations. However, any sustainability strategy depends on two important pillars-willingness and transparency. Keep reading to learn how technology is the shortcut to sustainability.

Using technology for ecological advantage

The right technology can help companies reach their sustainability goals and profit objectives. Experts call this mindset of using the right technology- “technology eco advantage". Through this mindset, managers can not only make their companies more profitable but also reach other goals. These goals are social, governance, and environmental. This unique mindset also impacts net-zero emissions. Therefore, "technology eco advantage" has a broad scope.

Several studies have shown that an organization having 80,000 employees can reduce carbon emissions by 45% to 70%. This can be achieved by using several game-changing technologies. These are circular service or product design, carbon data transparency and process automation. While process optimization can reduce emissions by 10%, carbon data transparency can lower these carbon emissions by as much as 40%.

Benefits of technology eco advantage

This mindset has several benefits. For example, a Europe-based minerals company used AI, cloud technologies, advanced analytics, and a digitally controlled energy tower to reduce its energy consumption by 10%. As a result, it is on road to save €10 million every year. There are several sectors where “technology eco advantage" can be used. These are pharmaceuticals, finance, consumer goods, electricity, etc.

One key benefit of this technology eco advantage is that companies can set up milestones for new tech adoption. This will make sustainability a core value while speeding up the journey to this goal. However, companies must rethink their traditional approaches to technology, particularly digital technology. Organizations must look afresh at digital service and product design, blockchain, application of AI and analytics, etc.

Innovative operations and sustainability

Leaders create more environmentally friendly processes and operations. For instance, these companies identify alternate materials and processes in manufacturing, bringing carbon emissions down. This way, not only do the emissions come down, but there is a concomitant increase in consumer confidence. Take for example Schneider Electric. It has transformed from being an electric equipment installer to a global leader in efficiency-as-service.

Today, Schneider generates the bulk of its revenues by supplying equipment that reduces its customers' carbon emissions. Schneider's growth is closely linked to making its clients' businesses more environmentally friendly and efficient. So, sustainable digitized operations lead to growth and profitability. Teracube is another great example in this area. It uses recycled polycarbonate to make phones that last longer than others.

Digital products and services promoting sustainability

There are several companies building new distribution channels for reaching out to new customers at affordable costs. These channels are scalable, give tremendous reach, and at the same time have the right sustainability strategy. Apps that digitize distribution are a good example in this area. A transportation company has designed three solutions that take care of sustainability while meeting its business goals.

Blockchain, IoT and advanced analytics

Technologies, such as IoT and blockchain, enable companies to meet their business targets sustainably. For example, sensors can help organizations optimize the movement of their goods. Through this technology, organizations can also judge and improve the impact of their businesses on the external environment. On the other hand, blockchain guarantees the safety of the products from the supplier to the end customer.

Advanced Analytics, AI, and Sustainability

With advanced analytics, companies can discover new data and use it to refine their products, services, and processes. This way, they can become more efficient by reducing carbon emissions. This approach has a positive impact on the environment as well. AI and advanced analytics also assess the environmental and social impact of the business processes and share these findings with business partners.

Take for example Nubank, a Brazil-based firm offering financial services that use AI and advanced analytics to bring in 55 million unbanked citizens into the country's financial framework. Nubank is deploying these technological tools to discover potential unbanked customers in an environmentally friendly way. Through AI and advanced analytics, Nubank provides credit to its customers at no fees and lower interest rates.

Technology and sustainability

To conclude, companies need to use the right technologies for promoting sustainability. Contrary to widespread belief, sustainable business practices bring in profits, new customers, and growth and expansion. For example, Schneider Electric now uses its efficiency-as-service model to reduce its customers' carbon emissions. As a result, customers trust Schneider more, and this confidence helps this company scale more and get more profits.