Sustainability transformation: The next frontier for businesses in the digital age

As organisations navigate today’s complex business landscape, they recognize the importance of addressing sustainability goals while meeting customer demands and ensuring healthy growth. According to the World Economic Forum, organisations now consider climate-related issues among the greatest risks facing them. Thus, sustainability has become a strategic imperative for organisations globally. By embracing sustainable practices, organisations can not only mitigate risks associated with climate change but also unlock opportunities of innovation, resilience, and long-term success.  

Innovation driving sustainability transformation  

With digital revolution ushering in an era of customised products and services and streamlining processes for speed, convenience, and cost-effectiveness, energy consumption has soared to unprecedented levels. This makes sustainability transformation crucial for businesses, which allows them to take every action with an environment-first approach. Companies are leveraging innovations such as artificial intelligence (AI), blockchain, and quantum computing to enhance their competitiveness in an increasingly conscious global marketplace.   

Advanced technologies such as smart building systems, robotics, digital twins, and AI-driven solutions are harnessed to mitigate the environmental impact. Furthermore, blockchain and digital platforms are pivotal in decarbonising operations, streamlining processes, promoting collaboration, and enhancing transparency. These technological advancements also enable the creation of new distribution channels, breaking economic barriers and making essential goods and services accessible at affordable costs. With the integration of Internet of Things (IoT) sensors, cloud-based data platforms, and blockchain tracking systems, organisations gain valuable insights for informed decision-making and effective management of their Environmental, Social, and Governance (ESG) goals. 

Future fuels for sustainability 

In the pursuit of decarbonisation, green-hydrogen fuel cells offer disruptive potential as they provide clean energy, emitting only water vapor instead of greenhouse gases (GHG). As organisations across the world aim to gradually reduce their carbon footprint and become net-zero, they plan to adopt low-carbon hydrogen to achieve this massive goal. As a fuel, low-carbon hydrogen can reduce emissions during a vehicle's lifetime to approximately 60g/km, surpassing emissions of electric vehicles (EVs) powered by renewable electricity. With investment in renewable energy and green hydrogen taking off, the dependency on traditional fuel sources will subsequently decline. 

Though companies have set ambitious targets to significantly shrink their carbon footprint before 2050, there will still be some unavoidable emissions. Carbon removal becomes crucial to neutralize these emissions and strive for the 1.5°C global warming target. Over the past few years, the market for carbon dioxide removal has experienced exponential growth, reflecting higher recognition of its importance. Organisations are actively adopting various technologies, including Direct Air Capture (DAC), to trap atmospheric carbon dioxide (CO2) directly. This presents a significant breakthrough in combating GHG emissions by effectively reducing carbon concentration. 

The affordability of renewable energy has expedited the journey toward a sustainable future. A substantial increase in the global installed solar capacity will ensure adequate availability of sustainable power. One must also acknowledge that this energy transition is reshaping business models. These models encompass clean-energy solutions, alternative fuels, grid-management services, and mobility services like EV charging stations, energy-storage solutions, and energy platforms. As the proportion of renewables in the energy mix rises, the crucial role of energy-storage solutions and grid-management services becomes evident in effectively managing the intermittent nature of renewable-energy supply. Industry executives in the energy and utility sector anticipate these new energy models to become the norm in the coming years. 

Sustainability transformation is the need of the hour 

As the world confronts the challenges of climate change and need for environmental responsibility, businesses are beginning to embrace sustainability as a cornerstone of their operations. For instance, online shopping has amplified the demand for last-mile deliveries, increasing energy consumption and transportation-related emissions. To combat this issue, businesses are exploring alternatives such as EVs, drones, and bicycle couriers to reduce their environmental footprint while meeting customers' expectations. Furthermore, companies have started optimizing packaging materials, minimizing waste generation, and implementing eco-friendly practices through the life cycle of a product. By leveraging transformative technologies such as IoT, blockchain, and AI, businesses gain real-time visibility into their supply chains, optimize logistics, minimize waste, and identify opportunities for energy conservation and reduction of carbon emissions. 

Recognising the growing consumer demand for eco-friendly products and responsible business conduct, organisations are re-evaluating their values, commitments, and communication strategies. By aligning brand promises with climate-action objectives and openly sharing their sustainability efforts, businesses can distinguish themselves from competitors and attract a dedicated customer base that values sustainability as a core tenet of their purchasing decisions. 

Views are personal. The author is EVP and Country Head, Capgemini Invent, India.