What is Apple’s biggest goal for 2030? What are Walmart’s big plans for the future? What is the next step for these companies that have been successfully driving innovation for the last several decades?

Some of the world’s biggest companies have added a major goal for the next few years: SUSTAINABILITY. This means to leave zero/negative, or net-positive environmental and social footprints. And how does being sustainable help these companies?

Technologies like AI, ML, IoT, Edge Computing, robotic automation, Big Data etc. have made companies smarter in terms of creating products that cater to changing consumer needs. Innovation is at its peak, driven by artificial intelligence that surpasses human intelligence in terms of complex data analysis and decision making. These technologies can play a major role in contributing towards sustainability, when used smartly.

1. Improves project outcomes:

Let us take an example of a company that uses locally sourced materials as part of its sustainability goals. Use of locally sourced materials reduces risk because it leads to fewer transportation issues and easier logistics like scheduling delays. It will also have community support which means lower threat of disruption. The result? Lower risk, fewer losses and quicker disaster recovery – a clear improvement in project outcomes.

2. Boosts bottom-line:

ity goals also drive innovation. The drive to conserve water and energy has led to use of sensors and IoT driven devices on a large scale. Companies have started to invest more in AI-driven systems and other digital technologies for sustainable decision making. They use the Reduce-Reuse-Recycle-Rebuy lifecycle approach which lowers facility costs, encourages more efficient resource use, and builds a stronger brand value.

<

3 out of 4 millennials want to work with companies that have social and environmental commitments. This also leads to a more diverse workforce, better innovation through inclusion, new perspectives, and employment of purpose-driven individuals.

So, how are major companies adopting digital sustainability? Through digital transformation…

Digital transformation involves integrating digital technologies into various aspects of an organization, fundamentally altering how they operate and deliver value to customers. This shift can lead to numerous sustainability benefits, including reduced resource consumption, lower carbon emissions, and enhanced environmental stewardship.

Here a few of their initiatives:

Efficient Resource Management:

Digital tools like IoT (Internet of Things) sensors and machine learning algorithms help companies monitor and manage their resource consumption more efficiently. For instance, by using IoT sensors to track water usage in real-time, companies can detect leaks promptly and reduce water wastage.

Nestle Waters has adopted IoT technology to monitor and optimize water usage in its bottling plants, significantly reducing water waste and energy consumption.

Orsted, a renewable energy company and one of the most sustainable companies in the world, uses Microsoft’s advanced AI and predictive analytics to gain valuable insights from its hundreds of offshore wind turbines.

Supply Chain Optimization:

Digital transformation enables better visibility and control over supply chains, reducing inefficiencies and emissions. By using data analytics, companies can make more informed decisions about logistics, transportation, and inventory management.

Walmart uses a sophisticated supply chain platform that relies on big data analytics to optimize delivery routes, reducing fuel consumption and greenhouse gas emissions.

Renewable Energy Integration:

Companies can leverage digital technologies to transition to renewable energy sources. Smart grids and energy management systems enable the integration of solar and wind power, making operations more sustainable.

Google has committed to powering its data centers and offices with 100% renewable energy. They use advanced algorithms to match their energy consumption with renewable energy production.

Circular Economy Adoption:

Digital platforms can facilitate the transition towards a circular economy by enabling products to be reused, refurbished, or recycled. Companies can track the lifecycle of products and materials using blockchain and other technologies.

Apple Watch Series 9, the 2022 Watch SE, and Ultra 2 represent the first wave of Apple products to carry carbon- neutral branding. The watches are powered by 100% clean electricity, are made with over 30% recycled materials (by weight) and are shipped 50% or more without airplanes (low-carbon shipping). The company aims to make all its products carbon-neutral by 2030.

H&M has introduced a recycling program where customers can drop off old clothes. They use RFID technology to track the garments, making it easier to sort and recycle materials efficiently.

Remote Work and Reduced Commuting:

The COVID-19 pandemic accelerated the adoption of remote work, reducing the need for daily commuting and office space. This not only reduces carbon emissions but also contributes to a better work-life balance. Investment in advanced collaborative tools has made it easier for employees to work from anywhere.

Several companies have offered their employees the option to work remotely indefinitely, thereby reducing the carbon footprint associated with office space and commuting. Some of them are Airbnb, Ancestry.com, Atlassian, Coinbase, Dropbox, Reddit, Square, Inc., Vista, etc.

Predictive Maintenance:

Companies can employ IoT and AI for predictive maintenance of machinery and equipment. This reduces downtime, extends asset life, and prevents unnecessary resource consumption.

Siemens uses IoT sensors to monitor the performance of its industrial equipment, predicting maintenance needs and reducing energy consumption by preventing breakdowns.

Cloud Computing:

Moving to the Cloud helps companies reduce their in-house infrastructure and subsequently, their carbon footprint. This helps to eliminate wastage as businesses can use only what they need.

All major Cloud providers have pledge to de-carbonize their data centers by running them on sustainable energy. Google reports that its data center is twice as energy efficient as a typical enterprise data center and has 6 times more compute power compared to five years ago. Microsoft claims that its Cloud is 93% more energy efficient and 98% more carbon efficient than on-premise data centers. AWS assures its customers 88% reduction in their IT carbon footprint if they move to AWS Cloud.

So why should more companies embrace sustainability?

For starters, climate change, sustainability, environmental impact are buzzwords that move people to take a stance. Customers are clearly choosing eco-friendly products from companies that care about the environment. A recent IBM study revealed that 49% of consumers claimed to have paid a premium for products that are branded as eco-friendly, socially responsible, or sustainable.

A sustainable organization built on technology also attracts the best talent. In a recent EY study, 89% of executives believed that an organization with shared purpose will have greater employee satisfaction. 85% say they're more likely to recommend a company with strong purpose to others.

Conclusion

Digital transformation is no longer just a buzzword; it's a fundamental driver of sustainability for forward-thinking companies. By harnessing the power of technology, organizations can become more resource-efficient, reduce their carbon footprint, and contribute to a more sustainable future. The real-life examples provided showcase how companies across various industries are actively embracing digital transformation to achieve their sustainability goals. As technology continues to evolve, we can expect even more innovative approaches to sustainability in the digital age.

https://online.hbs.edu/blog/post/business-sustainability-strategies