?? Harnessing Technology for ESG and Sustainability
EXO Innovation & Sustainability
Affordable ESG Reporting for Your Sustainable Development Success.
Guilherme Moreira
Sep 15, 2023 ? 7 min read
Introduction
Reflecting on the SDG Digital Day that took place on 17 September, a spirit of commitment and responsibility is strongly felt across the global community. We also had the chance to be part of the Digital with Purpose Summit 2023, a movement by GeSI that emphasizes the transformative role digital technologies play in achieving the UN Sustainable Development Goals (SDGs) by 2030.
In today's rapidly changing world, sustainability and responsibility have not only moved from buzzwords to imperatives, but they have become the rallying cry of innovators, policymakers, and conscious citizens alike.
This collective momentum towards a more harmonical future is amplified by technological innovation, bridging the gap between ambition and action. Let's explore this fascinating intersection of ethics, technology, and our collective aspirations.
TL;DR: As we strive to achieve the United Nations' Sustainable Development Goals (SDGs) by 2030, technology is not just an ally—it's a necessity. This article delves into the pressing need for sustainable practices, emphasizing the role of ESG factors in modern business decisions. We explore seven key technology stacks: AI/ML - Deep Learning, NLP and Generative AI - Blockchain, IoT, Digital Twin and API's, underscoring the significance of aligning them with vital sustainability aspects, particularly Material Topics as outlined by the Global Reporting Initiative (GRI). Lastly, we spotlight the United Nations' AI for Good initiative, championing its mission to tap into AI's potential to further the SDGs. Everyone, from tech enthusiasts to sustainability advocates, can play a part in this global movement.
?? Navigating the Challenges of the Sustainability Market
In an era where transparency is demanded and businesses are held accountable, our primary steps toward achieving a sustainable future often rest on consistent reporting and actionable insights to manage our KPIs.
However, while these are foundational (to not mention - baby steps), they're just the tip of the iceberg.
Truly navigating the complexities of sustainability demands that we dive deeper, unraveling nuanced challenges like climate change, social disparities, and a lot more.
It's a journey from initial awareness to comprehensive knowledge, ensuring that our actions are not just informed, but transformative.
Painting the Current Scenario.
Brands are no longer just about products or services; they're about values and impact. However, while ESG factors have started to gain recognition in corporate boardrooms, they often represent a foundational stepping stone rather than a fully realized journey. Many firms still treat these as tick-box exercises, not leveraging their full transformative potential.
Yet, this is where technology intervenes.
?? The Technological Vanguard: Shaping Tomorrow's Sustainability.
Technology isn't just facilitating change—it's catalyzing it. From unearthing deep insights that elevate ESG reporting to bridging transparency gaps, the tech stacks of today are poised to turn these foundational ESG efforts into comprehensive sustainability strategies for tomorrow.
Dive into the Details
?? Decoding Tech Stacks: Bridging Material Topics with Technological Solutions
To effectively progress towards technologies for sustainability, it is necessary to bind solutions to relevant environmental, social, and governance metrics.
At the forefront of these metrics, we have the Material Topics.
Per the Global Reporting Initiative (GRI) Standards, Material Topics are defined as "topics that represent an organization’s most significant impacts on the economy, environment, and people, including impacts on their human rights."
In simpler terms, these are the pressing issues that not only shape the sustainability journey of an organization but also determine how stakeholders perceive its efforts.
By mapping technology stacks to these Material Topics, we ensure that technological advancements directly address some of the most urgent and relevant societal challenges.
Below, is a description of 7 Technologies stacks that we introduce in this article as potential ones in the scenario.
?? Machine Learning and Artificial Intelligence: a realm with wide solutions
1. Diving into Deep Learning.
What is it? Think of deep learning as the "human brain's" digital replication. It mirrors our neural networks with the purpose to grant machines a form of 'intuition'.
Where can it shine? In areas like climate action, water resource management, and the even the domain of carbon credits.
Applications in the Wild: Deep learning is behind some accurate climate models, and can revolutionise how industries approach their carbon footprints. It can enable Lifecycle Assessment (LCA) in different complex fields where complex mathematic models are applied.
2. Deciphering patterns with Natural Language Processing (NLP).
What is it? NLP, or Natural Language Processing, is like giving a computer the skill to understand human language. When you chat with a customer service bot, ask your voice assistant for the weather, or use an app to translate a foreign language — that's NLP in action. It's what makes machines part of nowadays conversations.
Where can it shine? From ESG reporting to stakeholder engagement, NLP can extract insights from vast datasets, helping in ethical governance and policy adherence.
Applications in the Wild: Automated ESG report generation, extracting feedback sentiments from stakeholders, and converting extensive regulation texts into actionable insights.
3. Generative AI: Ability to learn as fast as we consume
What is it? Generative AI crafts content, whether it's text, images, or even music. It learns from vast datasets and documentation and then produces new, original outputs.
Where can it shine? Learning from several different official documentation about ESG and Sustainability standards that are rapidly growing in this market, predicting and modeling for sustainable strategies, or even crafting impactful sustainability communication campaigns or even education about specific topics in the field.
Applications in the Wild: Helping to spread the knowledge in the field, creating sustainability-focused content for awareness campaigns. Developing Sustainable Practices within companies based on standardisations.
?? 4. Blockchain: Opportunity to operate transparently
What is it? Blockchain is a decentralised ledger that records transactions across multiple computers to enable transparency and security.
Where can it shine? From ensuring ethical sourcing in supply chains to providing transparent ESG reporting, blockchain's traceability can be, in the future, a game-changer.
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Applications in the Wild: Transparent supply chains for ethical sourcing, decentralised platforms for carbon credit trading, and validating, for example, LCA chain impact.
?? 5. IoT: Connecting the Sustainability Dots
What is it? The Internet of Things (IoT) refers to interconnected devices that can collect and share data, creating a vast, interlinked digital ecosystem.
Where can it shine? From smart cities monitoring energy consumption to optimising waste management, IoT is about actionable data in real time. It can also be applied in necessary sensors for smart warehouses evaluating the sustainable impact of industry equipments.
Applications in the Wild: Smart grids adjusting energy distribution based on consumption, waste management systems for farms or industries, and smart traffic sensors optimising city routes in real-time.
?? 6. Digital Twins: Simulating a Sustainable Future.
What is it? A digital twin is a virtual replica of a physical entity or system. By mirroring real-world objects or processes in a digital realm, it provides unparalleled insights that can be used for testing, simulation, and prediction.
Where can it shine? Digital twins can be transformative across multiple sectors:
Applications in the Wild:
?? 7. APIs: Powering Community-driven ESG Initiatives.
What is it? APIs, or Application Programming Interfaces, act as bridges, allowing different software applications to communicate and share functions and data.
Where can it shine? In the ESG landscape, APIs can help unify fragmented systems, create community-driven platforms, and simplify the vast regulatory landscape by turning them into accessible tools. Imagine managing carbon footprint calculations or different ESG standards without having to create everything from scratch, by the ease of having an inventory ready to market.
Applications in the Wild: Open-source platforms where developers contribute to ESG-focused APIs, tools that make dense regulatory texts interactive, easy to navigate, and easy to calculate.
?? Final Remarks on the Tech Stack Overview
These are 7 pointed stacks where technology can empower sustainability, but not limited to. There are still different propositions, such as Big Data, AR/VR, and more.
As we harness the power of these digital tools, one movement within the expansive realm of technology stands as an embodiment of positive impact:
Spotlight on AI4Good.
With less than a decade left to achieve the United Nations’ Sustainable Development Goals (SDGs), AI is increasingly seen as a valuable ally.
AI for Good is an initiative focused on leveraging AI to propel these goals forward. Its objective? To pinpoint and connect practical AI application owners that can advance the SDGs and then scale these solutions for a broader, global impact.
It is organized by ITU and partnered with 40 UN Sister Agencies.
?? Conclusion
When events like the SDG Digital Day arrive, we are reminded (or should be) of the collective effort and unity in our global mission for sustainability.
Every technology, every digital solution, and every innovator is a beacon of hope in this journey.
Harnessing the vast array of technological tools at our disposal, from deep learning to digital twins, is not just a commercial or innovative endeavor. It's a pledge, a commitment to the global community.
In this story of our shared future, let us remember that while technology offers the tools, our shared vision, collaboration, and resolve will pave the way toward a sustainable, inclusive world for all.
Thank you for reading and stay tuned for the EXO's next article!
?? Further Reading and Exploration:
For those eager to dive deeper:
Books:
Links & Articles:
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Guilherme Moreira.
CTO & Co-founder, EXO Innovation Sustainability