Today’s climate crisis is affecting the global economy, financial stability, and the value of investments. Companies face physical risks, such as the operational impacts of extreme weather events, and transition risks, like changes in markets, regulations, and technologies. Also, topics like accessibility are being pulled to the forefront as a measure of social sustainability.
Therefore, sustainability considerations for businesses are no longer the sole responsibility of the corporate social responsibility (CSR) team or sustainability departments. They have also become a board-level issue as investors demand to know how companies are addressing the related risks, taking the opportunity to transform their business models to drive sustainable competitive advantage and ensure operational resiliency. The need to integrate sustainable business practices is being viewed through a digital lens by harnessing the increasing availability of data.
Increasingly, companies are under pressure from stakeholders, policymakers and regulators, as well as customers and employees who are not far behind. They demand ambitious emission reduction targets, inclusive workplace as well as resiliency to properly deal with the future impacts of sustainability risks.
CIOs: Scaling up to the occasion
The scale of the challenge we face is profound, and the solutions are multi-faceted. Fueled by the increasing demand for finite resources, digitization is accelerating rapidly, helping unlock innovative solutions, facing sustainability challenges and promoting responsible resource utilization. Besides leading digital transformation in companies, CIOs are becoming one of the key players in connecting the dots and seeking decarbonization and overall sustainability strategies.
Digitization enables new forms of collaboration, transparency, and control. It enables inclusivity and provides data for better decision-making for both companies and consumers. Yes, it is quickly developing, and with it, the demand for energy and valuable resources.
International Energy Agency (IEA) (opens in a new tab) shared that data centers already contribute around 1% of all carbon emissions and consume an estimated 1 – 1.5% of global electricity. This adds to the challenge of running secure and well-managed IT systems. The use of varying digital technology in the workplace is driving the building of accessibility features into the design of the technology. In addition to building an energy efficient application or software, it is essential that these solutions are designed in a manner that enables efficient usability for people with disabilities (PwDs).
It is therefore imperative that CIOs consider the holistic nature of sustainability in the use and design of digital technology to promote a more inclusive and responsible use of resources.
Six steps towards digital decarbonization
Here are six key principles for building a digital decarbonization and overall sustainability strategy.
Determine your strategy.
Effective decarbonization strategies have solid plans based on accurate awareness of the current baseline and an agreed target that is ambitious and achievable. Having the right systems and tools to measure, monitor and manage the often large, complex data involved is essential for an accurate understanding of impact. This is especially important when assessing the impact of increasingly digitalized operations.
Get others to buy in.
A common question from our clients is, “How do I get the rest of the business on board, particularly senior management?” The good news is that it’s starting to get easier. Our clients find that there is growing ambition to tackle climate through all levels of the business, helping to drive change.Team engagement is also crucial. Educate the broader teams about why your targets are so important and their roles within the strategy. Involve them in decision-making processes. This will mean they are much more likely to get on board and you will have much less of a challenge and work to do later.
Strategize data collection and reporting.
Sustainability managers could spend most of their time collecting, reporting and deriving insights from data. Today, any large company has multiple platforms or high-tech systems in place (like CRM systems, ERP platforms, and more), with data constantly flowing from one platform to another. This is where IT system integration becomes a necessity. Specific software systems and external support can help overcome these challenges while delivering additional benefits around efficiency and transparency.
Find innovations and efficiencies in reducing emissions.
Achieving sustainability targets is a long-term exercise and the results are often difficult to measure. Therefore, it could be hard for the sustainability team to compete with other business priorities that can demonstrate clear revenue.
Again, it’s about making the business case for the long-term resilience of your company and reputational returns based on innovation and efficiency. You might find the EcoAct e-book (opens in a new tab) helpful if you need help making the financial case for climate action.
Decarbonized IT.
Digital technology currently accounts for a large proportion of energy use for both organizations and society at large. The digital sector can take the lead in accelerating demand for 100% renewable energy, and research has shown that digital technology can help reduce global emissions by 15%. Reducing your IT footprint will have substantial decarbonization results.
Integrate accessibility principles into digital products.
Accessibility by design is a strategy for ensuring sustainability in digital technology by prioritizing the development of inclusive and equitable digital products and services from the onset.
Reducing carbon emissions and driving innovation for better business processes go hand-in-hand. The current state of the global climate, coupled with evolving stakeholder demands has left no room for complacency on sustainability. Organizations that set ambitious targets and resolutely invest in them will enjoy improved business resilience and assured market competence.
Driving sustainability strategies collaboratively
While businesses may be at different stages of readiness, it is crucial to start the sustainability journey immediately and on the right footing. In this digital era where digital strategies underscore every major aspect of the organization, CIOs must play a defining role to integrate, scale and mainstream sustainability initiatives across the enterprise spectrum, bolstering the business resilience and sustainability of the private sector.