What if we told you, it’s totally possible for you to exist on this planet without causing much harm to all the Earth’s resources? Would you be pleasantly surprised? Well, future science and technology makes this a possibility by contributing to making a better tomorrow for our planet and its people.
With the increasing awareness about sustainability, more businesses are beginning to realize that they can make notable profits, in fact more than they normally would, by carefully executing and adopting sustainable technologies for their business operations. In addition to that, they are also identifying new ways of assessing risks and improving resilience as they look deeper into the underlying concepts and science for sustainable development. It’s time to go beyond the basic question of how the technology affects the environment!
Sustainability vs. Sustainable Technology
Earlier limited to just environmental and social factors, sustainability has now extended to the technology space too as these pillars coincide with the triple bottom line consisting of people, planet, and profit.
Now, to understand the significance of sustainable technology, let’s first understand its goal. Sustainable technology aims to i) produce new technologies keeping the environment in mind and ii) use technology to address different kinds of environmental, social, and governance issues. Some of the examples of sustainable technologies are solar panels, ESG reporting, ESG performance management software, etc.
Some of the factors that must be taken into consideration when trying to develop technology with an undertone of sustainability are:
- Resources required for sustainable technology development and their providers
- Potential negative output, such as emissions or e-waste, throughout the development lifecycle
The best step forward when deploying a sustainable product or technology is to have an ESG-related objective as your primary goal. This may include creating technologies like EVs, removing waste through decarbonization initiatives, and the like. Companies are also leveraging technologies like artificial intelligence to reduce their carbon footprint by using carbon accounting.
Importance of Sustainable Technology
Technology has become an indispensable part of our lives. It has impacted our society to the extent where it is deeply affecting the way we engage and interact with our surroundings and people. To add to it, numerous individuals and organizations are still dealing with the lingering effects of the pandemic and growing impact of climate change, in addition to increasing demand for energy and food among others.
Sustainable technology provides us with the chance to reframe our relationship with existing innovations to address different societal and environmental challenges effectively. To list a few examples, IoT can be used to make fleet management more sustainable with route optimization, cloud and AI can be used to automate and optimize processes, etc.
Why Businesses Want to Use Sustainable Technology?
Industry leaders across the world want to adopt sustainable technology for their business because the aware consumers of today want to work with businesses that are conscious about our planet and its limitations, the idea of sustainability is attractive to stakeholders, and there are innumerable benefits in terms of cost savings and efficiency. Let’s delve into more of these use cases.
Cost Savings
Incorporating sustainable technologies into your existing processes can result in significant reductions in resource and energy costs. Eco-friendly technologies centered around renewable sources of energy, such as solar panels and wind energy, energy-efficient appliances, and water recycling systems bring down the amount of money businesses spend on raw materials and utilities.
Meet Customer Expectations
Customers and consumers worldwide want to engage with brands that follow eco-friendly practices and produce sustainable technology products. Businesses can easily attract environmentally conscious customers and enhance their brand reputation by adopting technologies that help the environment.
Meet Global Standards
Many countries are tightening environmental regulations, and adopting sustainable technologies can help ensure that businesses are complying with the legal requirements of the countries they are operating in. Compliance not only avoids penalties but can also provide businesses with incentives such as tax breaks and subsidies.
Risk Management
Using sustainable technologies is an effective way of mitigating risks associated with resource scarcity and fluctuating energy prices. By reducing dependency on non-renewable resources, businesses can protect themselves against market volatility in these commodities.
Investment and Financing Opportunities
Many investors are now considering environmental, social, and governance (ESG) criteria when making investment decisions. Companies that demonstrate a commitment to sustainability can attract investment more easily and may benefit from better financing conditions.
Long-Term Viability
Sustainability is often linked to long-term thinking about business practices. Companies that invest in sustainable technologies are planning for the future to ensure that they remain relevant as the global economy shifts towards more sustainable practices.
Future Sustainability Trends for You to Consider
Here are 7 sustainability trends you might want to keep an eye on to build a long-lasting business.
- Embrace IT as a Key Driver: IT consulting services are becoming a critical tool in achieving sustainability goals. Businesses are increasingly using technology consulting services to track their sustainability efforts, leveraging digital technologies to gain insights into their operations and the environmental impacts of their activities. This convergence of IT and sustainability is expected to drive significant investment shortly.
- Use Data as a Catalyst for Transformation: Data is not just a resource but a powerful tool for understanding an organization’s performance and identifying areas for improvement. However, many organizations need help integrating technology sustainability data into their decision-making processes. By addressing these challenges and enhancing data handling, we can empower our decision-makers with the confidence and reassurance they need to operationalize technology for sustainability.
- Prioritize Energy and Emissions Management: As regulatory requirements become more stringent, particularly around the disclosure of Scope 3 emissions, companies focus on managing their energy use and emissions more effectively. Despite data quality and collection challenges, there is a push towards better measurement and reporting of emissions to align with compliance demands related to technology and sustainability.
- Align Business Objectives with Improved Environmental Outcomes: Organizations want to connect their sustainability efforts with digital transformation to drive more efficient resource use, reduce waste, & improve environmental outcomes. Integrating data and AI technologies is crucial for optimizing operations and enhancing the sustainability of business practices.
- Tap into AI to Accelerate Sustainability Goals: AI and automation are becoming important tools for collecting and analyzing vast amounts of sustainability data. These technologies help organizations understand environmental risks, improve decision-making software, and comply with regulations more efficiently, all of which contributes to accelerating the achievement of sustainability goals.
- Ensure Broad C-Level Involvement and Responsibility: Successful sustainability initiatives are not just the responsibility of a few but require the engagement of all senior leaders within an organization. The CFO and other C-suite executives are not just observers but integral players in integrating sustainability into core business strategies and investment decisions. By recognizing their value and role in this process, we can foster a sense of shared responsibility and commitment to our sustainability objectives.
- Activate Sustainability Across the Organization: Sustainability needs to be a shared responsibility across all levels of an organization. By fostering a culture of sustainability and investing in training and skills development, companies can enhance their overall sustainability performance and ensure that all employees are aligned with the organization’s sustainability objectives.
Future of Sustainable Technology
Sustainable technologies are enabling companies across the world to redesign their business approaches so that they can align financial performance with environmental goals. For example, financial firms are using cloud computing to cut energy use in data centers, consumer goods manufacturers are employing robotics to enhance precision and minimize waste, and then there are healthcare providers who are shifting to electronic records to lessen paper use and improve data security through blockchain. This shift towards sustainable innovation is motivating industry leaders to boost their investments in ESG initiatives, fostering partnerships with startups and funding new ventures to develop groundbreaking sustainable technologies.
Sustainable technology is helping expand the network of companies committed to environmental and social responsibility for a safer and brighter future for everyone.
Frequently Asked Questions
What are sustainable technologies?
‘Sustainable technologies’ is a collective term used for digital solutions that help businesses drive positive outcomes for environment, governance, and the society. It is now being used in several industries including agriculture, architecture, consumer tech, healthcare, fashion, and more.
Why do we need sustainable technology?
We need sustainable technology to decrease carbon footprints, gain long-term cost savings, and ensure energy security for posterity.
What are the three major benefits of sustainable development?
The three major benefits of sustainable development are:
- Environmental protection — reduces pollution and greenhouse gas emissions.
- Economic benefits — job creation and improved efficiency.
- Social equity — ensures access to basic needs like food, water, and healthcare for all individuals.