Elements of sustainable technology

Climate action is a shared responsibility, and enterprises must take action to turn the tide on climate change. Discover how businesses can leverage technology to reduce their carbon footprint while achieving their ESG goals.

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Elements of sustainable technology

Staying abreast of the latest technology requires a balance between foresight and groundedness.

Striking the right balance has become even more essential in the Fourth Industrial Revolution (4IR): a phase of technological advancement described as “the integration of technology into all areas of a business, essentially changing how it operates.”1

Adopting 4IR principles in one’s enterprise requires moving away from longstanding processes or equipment in favour of advanced, digitalised or cloud-based processes, requiring a re-evaluation of the status quo. Despite arriving fairly recently, 4IR is evolving at an accelerating pace not seen in the previous industrial revolutions. The speed and extent of modern technological advancements are transforming the business world as we know it, from root to stem.

Companies implicitly understand the critical role technology plays in long-term business success. While some decision-makers might mistake digital transformation as merely an additional implementation of technology systems and services, a genuine digital transformation project involves much more: a fundamental “rethinking of business models and processes, rather than tinkering with or enhancing traditional methods.”2

Whether these advancements are sustainable, is another matter altogether.

The ESG evolution

Companies now understand that they are responsible to more than just their shareholders, but also to the environment and the world at large. In the 1960s, “socially responsible investing” redefined investors’ responsibility to their stakeholders, with ethical considerations forcing divestment from certain stocks or industries, such as tobacco production or involvement in the South African apartheid regime.3

In 2006, the United Nations codified it further by formalising Environmental, Social, and Governance (ESG)4 and its criteria. ESG, according to The Report, is a way of assessing companies on their environmental, social, and governance performance while also considering financial returns.5

When it was first mentioned in the 2006 UN’s Principles for Responsible Investment (PRI) report consisting of the Freshfield Report and “Who Cares Wins.”, its inclusion was required in financial evaluations of companies with a particular focus on further developing sustainable investments. For the first time ever, ESG became an essential component of a company’s financial information. 4

Since then, companies have kept ESG goals in mind when planning and rolling out their digital transformation initiatives. A sound understanding of the elements of sustainable technology will help businesses undertake the transformation more smoothly and benefit them in the long run.

Elements of sustainable technology

What exactly makes technology sustainable? According to Rubicon, it describes innovation that considers natural resources, and fosters economic and social development. The technology must be designed drastically to reduce environmental and ecological risks and to create a sustainable process of the product by shifting to biodegradable materials, preventing negative environmental impacts, and promoting the efficient use of energy and resources.

Far from being a “nice to have” or window dressing, sustainability offers tangible benefits to businesses. It reduces risk and improves project outcomes; it improves the bottom line by using resources more efficiently, and it helps attract and retain top talent–a study showed that three out of four millennials want to work for businesses that advertise their environmental and social standards.6

An Accenture paper recommends three ways in which sustainability can be implemented within an enterprise: Sustainability by technology, wherein technology innovation is used to drive sustainability; sustainability in technology, where business leaders ensure that their technology yields solutions without contributing to the problem, and, lastly, sustainability at scale, which pertains to the business collaborating with its ecosystem to empower progress beyond the company and across the world.7

Examples of sustainable tech and how to apply to your own digital transformation

Where’s the best place to start implementing sustainable technology? First, look at what’s already out there. Businesses can look at the sustainable technologies already in place.

Examples are all around us, with studies continuously done to gauge their impact in quantifiable means. Public and electric transport, LED light technology, solar power, carbon capture and storage technologies, self-sufficient and LED buildings and construction methods are some of the more obvious examples, already enjoying wide public use and ongoing innovation.6

Less tangible examples include 5G connectivity, which opens the way for enterprises to develop new innovative solutions and a force multiple for other sustainable technologies.

For instance, 5G can reduce emissions and improve networks’ energy efficiency by providing the connectivity that technologies like Internet-of-Things (IoT) and artificial intelligence (AI) require to run optimally and at scale. According to Ericsson’s Connectivity and Climate Change report, by 2030, further emissions savings of 55–170 metric tonnes of carbon dioxide per annum would be possible, but only through the implementation of 5G technology (the equivalent of taking one in seven of the EU’s cars off the road).

In the same study, it was found that digitisation and connectivity may directly enable the transition to a greener, lower carbon future, and help achieve net-zero greenhouse gas emissions by 2050; by 2030, connectivity could help reduce EU emissions by approximately 550 metric tonnes of carbon dioxide - the equivalent of 15% of the EU’s total emissions in 2017.8

The rising need for alternative work structures, such as improved remote working conditions, has highlighted the environmental impact of mobility. According to research, working from home four days a week would reduce the amount of nitrogen dioxide, which is the main pollutant generated by traffic emissions, by around 10%. Even with some workplaces resuming on-site operations, the lower levels of emissions created by working from home may result in an additional reduction in air pollution of around 8%.9

There is no better time to tap into more mobility solutions, as it enables better remote working structures that not only help the environment, but add value to efficiency. Singtel’s mobility solutions, such as My Fleet Manager, for example, let businesses gain visibility and control over mobile fleets via a Web-based platform. Cloud and data services such as Software-as-a-Service (SaaS), multi-cloud networking, and application modernisation help cut down on the need for on-premises hardware, while promoting better remote collaboration, management and operations.

In the long term, cloud adoption has the potential to prevent more than 1 billion metric tons of carbon dioxide emissions between 2021 to 2024. By enabling virtualised infrastructure, container platforms or serverless architecture, the cloud can shift enterprises from a business-run hardware management model (CapEx) to a third-party management model (OpEx) where remote data centres can deliver larger outputs with fewer hardware like servers.10

At the same time, the cloud can help shift the focus away from individual hardware capabilities to the business outcomes that can be derived from enhanced connectivity and services.

Sustainable tech for your ESG goals

Digital transformation doesn’t have to be implemented in one fell swoop. Businesses can pick and choose from different services and tools, depending on the goals and scale of the transformation you want to take on.

Incorporating technologies that are aligned with both your company’s goals and needs and ESG doesn’t just contribute to sustainability on an ecological level, but also has the potential to create better customer and employee satisfaction.

Speak to us to find out more about sustainable tech for your ESG goals.

 

Sources

1 Hyve, “Digital Transformation: The Fourth Industrial Revolution”.

2 ZDNet, “​What is digital transformation? Everything you need to know about how technology is reshaping business”, 2021.

3 MSCI, “The Evolution of ESG Investing”.

4 Forbes, “Demystifying ESG: Its History & Current Status“, 2020.

5 ESG | The Report, “What is SDG?”, 2021.

6 Rubicon, “What is Sustainable Technology?”, 2021.

7 Accenture, “Uniting technology and sustainability“, 2022.

8 Ericsson, “Connectivity and climate change”, 2022.

9 Forbes, “How Eco-Friendly Is Remote Working?”, 2021.

10 World Wide Technology, “How Does Cloud Technology Drive Sustainability?”, 2022.

 

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