How IT can drive your journey towards sustainability
As businesses around the world strive to reduce their impact on the planet, the success of their sustainability efforts is closed linked to the power of Information Technology (IT). IT can be the catalyst that boosts the sustainability performance of organisations.
For IT to drive sustainability efforts, the real magic lies in data analytics. Advanced data collection, processing, and analysis can enable organisations to gain insights into every aspect of operations related to Environmental, Social and Governance (ESG). By focusing on improving the quality of data,?leaders can become better informed about the impact of their operations and implement more ambitious sustainability strategies. ?
Information Technology is not just a tool – it is a source of innovation and efficiency that can transform how company operates. It can help?meet reporting requirements, tackle environmental challenges, cut down resource use and fight against climate change by allowing data flows across numerous value-chain and cross-sectorial stakeholders.?
Respective of the industry, IT can support?sustainability strategies across the organisation. Here are some important examples.
1. Non-financial reporting?
By facilitating data collection and management, as well as automated data gathering analysis, IT can contribute significantly to non-financial reporting and help companies comply with the requirements raised by the European Commission. Indeed, the current directives CSRD and CSDDD , among others, put more emphasis on sustainability data and many companies are developing better data management systems as a result. Within the next two years, companies need to define the data to collect and report on, identify gaps in their data and implement the necessary technology to address and monitor these.
At 塔塔咨询服务公司 , we are supporting companies to build IT ecosystems which help them to collect data, identify gaps and develop ESG dashboards and auditable reports.
2. Green IT
The growing use of software and hardware resources, combined with the transition to cloud operations and shared service models, along with increased European regulations, is expected to drive a 23% rise in global energy consumption by 2030 . Currently, digital core operations account for up to 5% of total energy use in many industries. To address these challenges and seize opportunities, the implementation of Green IT practices is necessary. Green IT focuses on minimizing the environmental impact of IT operations by enhancing the design, manufacturing, operation, and disposal of ICT. Emerging technologies like Generative AI and blockchain also impact Green IT by providing advanced solutions for energy efficiency and resource optimization, further driving sustainable innovation.
A life cycle approach is necessary to consider all resource inputs and outputs throughout the entire ICT lifecycle, including applications, networks, on-premises infrastructure, ICT infrastructure, and data centers infrastructure. Adopting Green IT practices will not only foster innovation of business models through sustainable initiatives but also drive long-term growth. TCS has developed a comprehensive framework to support companies in assessing, replacing, optimizing, monitoring, and managing ICT, ensuring they remain at the forefront of innovation and sustainability.
3. Circular economy?
Many manufacturing companies are prioritising a circular economy. IT can help to drive this through resource tracking and management, product life cycle management and circular design tools. Successful initiatives can be accelerated by design-led co-innovation to build a digital solution canvas across the end-to end business value chain . IT can also drive waste reduction and improve efficiency to contribute to a more environmentally responsible and economically viable model of production and consumption. The introduction of Extended Producer Responsibility , which extends a producer’s responsibility for a product to the post-consumer stage, necessitates the creation of a more digitalised ecosystem for product information, such as Digital Product Passports and circular marketplaces.
4.?Climate and energy?
To reduce energy consumption and carbon emissions companies must be able to gain insights into their usage. IT plays a pivotal role in carbon management by providing tools for accurate measurement and reporting of carbon emissions across value chains and processes. These technologies enable organisations to collect, analyse, optimise and report non-financial data. ?
Beyond this, IT can contribute to carbon reduction plans by combining non-financial and financial data to give leaders a complete understanding of operations through a double materiality view. Scenario planning through IT then allows businesses to model different strategic approaches and evaluate potential outcomes of carbon reduction initiatives. For example, in the case of energy, powerful energy management systems (EMS) track real-time energy production and consumption of the grid to enable energy to be distributed from different sources to meet demands. Additionally, predictive modelling enables organisations to forecast energy needs and develop strategies for renewable energy integration.
5. Food systems and biodiversity?
At the beginning of the food chain, farm management software gathers extensive data on ecosystems, fauna and flora species distribution, as well as land information such as soil moisture, nutrient deficiency, crop health, and disease and pest predictions. This information is crucial to help farmers yield greater quantities of food and ensure the good health of the soil. It also enables them to comply with regulations on the use of pesticides and other chemicals. Further down the food supply chain, IT is used to trace food from farm to fork. Beyond this, IT can also be used to predict the management of food and packaging waste.
At TCS, we are helping companies to reduce food waste by monitoring and estimating the freshness of food in real time using novel digital twin technology . The system is trained to virtually assess food quality by observing physical and chemical degradation properties over time and replicating the patterns in digital twins. ?
6. EU digital decade?
The EU Digital Decade framework is pursuing a human-centric, sustainable vision for digital society. Its vision is that all aspects of technology and innovation work for people. The programme has four main goals: ?
1.?????? A digitally skilled population and highly skilled digital professionals
2.?????? Secure and sustainable digital infrastructures?
3.?????? Digital transformation of businesses?
4.?????? Digitalisation of public services. ?
IT will evidently drive the success of these goals and play a key role in protecting companies against cyber-crime in the process. At the same time, data management in green technology will help to drive the European Green Digital transition . These initiatives are using IT to improve digital public services, digital health and social inclusion. Fostering a digital skills population, consequently, creates a more robust digital infrastructure, improved competitiveness, and greater economic growth and societal wellbeing.?
The companies that make the greatest progress towards their sustainability goals will be the ones that effectively harness the power of IT and data to be much bolder and braver in their approach. Under the governance of GESI, the Global Enabling Sustainability Initiative, TCS is a signatory of the Digital with Purpose Movement. ?
We are here to make a difference through technology and through our own sustainability efforts we are focused on setting the standard for a brighter, more sustainable future. ?We have over 200 offerings that help meet your sustainability goals.
To read more, click here - https://www.tcs.com/what-we-do/services/sustainability-services
Client Partner at Tata Consultancy Services
3 个月This really contains good information useful for building the path for achieving the sustainability goals
ENTREPRENEUR
3 个月Very helpful!
MD | CXO | NED in IT Industry including R&D & ERP & CRM and Digital Transformation Solutions including M&A | BSc, MSc, MBA | Imperial College Business School UK !
3 个月Excellent article Sapthagiri !
Very helpful!
Managing Director at Nagarro Germany
3 个月Very well written and insightful article Sapthagiri Chapalapalli. Thanks! By taking care of our planet, we will automatically become caring towards our people, which further results in more productivity and profit for the organization.