How tech can help boost company sustainability

Research has revealed that 72 per cent of Australian organisations see technology as a key enabler in achieving sustainability targets.

With 88 per cent of companies placing high strategic importance on achieving sustainability goals, the role of tech in hitting targets could become more pronounced, according to an Ecosystm report.

“Despite an overwhelming majority of Australian businesses making climate pledges, our research highlights that many lack robust sustainability frameworks and assessment tools to accurately track their progress towards set targets,” said Kyndryl’s chief sustainability and ESG officer, Faith Taylor.

“The companies that are making progress are those with strong governance frameworks that support their objectives, capitalising on the ability technology gives them to establish actionable and measurable sustainability strategies. By leveraging data insights and AI, forward-looking businesses can reduce environmental risks, bolster operational resilience, empower employees to drive change, and create greater value for their customers.”

Despite the perceived benefits tech can bring to reaching sustainability targets, just 32 per cent of respondents said their organisation is taking advantage of it. Meanwhile, only 13 per cent have prioritised incorporating data-driven sustainability goals in their corporate and transformation strategies.

According to Kyndryl, some of the most popular tech-driven sustainability practices are:

• Give sustainability a seat at the executive decision-making table.
• Align sustainability with technology modernisation.
• Build a strong data foundation.
• Unleash AI for predictive sustainability.
• Empower employees.

AI was recognised as a popular means of utilisation, with it assisting respondents in monitoring energy use and emissions (78 per cent), and highlighting opportunities for lowering the carbon footprint (54 per cent).

It appears stakeholders are open to the opportunities, with 59 per cent of employees, 57 per cent of customers, 56 per cent of investors, and 33 per cent of government regulators in favour of integrating tech into sustainability practices.

Ullrich Loeffler, chief executive of Ecosystm, highlighted the opportunity in integrating tech into sustainability strategy: “As extreme weather events become more frequent across Australia, the influence of climate change on every aspect of society, including business continuity, is undeniable.”

“While debates on mandatory climate disclosure continue, proactive organisations are preparing for the future, embracing change for a greener future. This research, in partnership with Kyndryl and Microsoft, aims to provide organisations with an actionable strategy to accelerate their sustainability impact.”

Perhaps somewhat controversially, tech has previously been seen as a detriment to sustainability. As discussed late last year by HR Leader, the global technology industry is responsible for roughly 3 per cent of global carbon emissions – a figure that is expected to grow and keep growing.

Meanwhile, data centres contribute up to 3.7 per cent of the world’s carbon emissions, while personal computing is responsible for approximately 1 per cent.

However, it was also recognised as a solution to generating better sustainable practices, even back then, as just 5 per cent of respondents answered “no extent” when asked to what extent the board of their company values or recognises technology as a crucial piece in improving organisational sustainability/carbon footprint. Thirty-five per cent answered “great extent”, while 12 per cent answered “extreme extent”, and 34 per cent said “some extent”.

While still early in its utilisation, tech could play an increasingly important role in promoting sustainable practices in the future of work.