The pandemic highlighted many things, not least of which was the shift in consumer behavior toward further encouraging companies to change their operations and act with sustainability in mind. An overwhelming 96% of businesses said the pandemic shifted their focus to the social component of environmental, social and governance (ESG) strategies. Technology has been a key player in helping corporations quantify and tackle ESG issues in their sectors.
A recent PwC and WEF report outlining the use of technology to drive large-scale sustainable change looked at 300 cases of emerging technology in relation to achieving global sustainable development goals. The study found 70% of their 169 targets could be enabled by technology applications.
With the link between sustainability and technology clear to see, here’s where technology and innovative thinking are boosting sustainability in three key industry areas.
Energy, Utilities & Resources Are on a Sustainable Transition Journey
With 30% of overall greenhouse gas emissions stemming from power plants, it is not surprising that utility companies are under intense scrutiny and pressure to transition to green energy. Many are actively investing in renewable energies such as wind farms, hydro stations and solar power. “Green steel” is at the center of America’s 2030 greenhouse gas pollution reduction target, and the U.S. already generates around 11.4 million tons of hydrogen per year. All eyes are on these green steel initiatives that are showing that, with the right resources, there is plenty of potential to decarbonize the U.S. energy, utilities and resources sector.
A Swedish partnership, which includes Europe’s largest iron ore producer and IFS customer LKAB, has delivered the first fossil-free steel in the world. The steel was made with 100% fossil-free hydrogen instead of coal and coke—paving the way for a completely fossil-free value chain for iron and steelmaking.
As experienced by LKAB, enterprise software can strategically support the shift to a more sustainably focused energy, utilities and resources sector. To thrive, new business collaborations and joint ventures must be agile and able to develop at pace, unencumbered by restrictive enterprise solutions; to achieve both these goals, cloud deployment and full supply chain sustainability is key.
Manufacturing–Closing the Loop Requires Supply Chain Visibility
The manufacturing sector is another major industry facing complex challenges—and opportunities—on the path to sustainability. The time is now for manufacturers to drastically change their linear approach of material, manufacture, dispose and move toward a circular economy of reduce, reuse, recycle. This means adopting reverse logistics methods enabling manufacturers to integrate more environmentally friendly practices into their manufacturing processes.
According to a recent Deloitte op-ed, “Through the use of digital technology, manufacturers may already have a head start in their sustainability journey. In recent years, the implementation of lean processes using digital capabilities has boosted productivity, created safer workplaces and reduced costs.” For example, enterprise resource planning (ERP) software is helping manufacturers to develop and maintain the overall life of a product by using data and tracking of which areas need more sustainable practices. For instance, manufacturers embracing a circular model can rely on ERP software to help them maintain, recondition, recycle and support a product over an extended life cycle.
And again, the software can incorporate environmental footprint management tools to capture the footprint of their product over its life cycle and present information that can be used for better decision support. By analyzing the percentage of post-consumer waste used in a product, manufacturers can then see where they can maximize the reutilization of components and preempt sustainability challenges.
Aerospace and Defense—AI Predicting a Cleaner Future
Every industry has a part to play in reducing carbon emissions, and the aerospace sector is no different, so it’s necessary and right that the industry is taking significant steps toward improved sustainability. Some of the key enabling technologies that will support this are highlighted by Global Data in its Thematic Research on ESG in Aerospace and Defense. The report highlights: “Electric aircraft, hydrogen-powered aircraft, and sustainable aviation fuels (SAFs) are key innovations that will shape the future of air travel. Improving social sustainability is vital for companies seeking to earn government contracts, increasing visibility and improving management throughout the whole supply chain will be vital.”
From the Silver Spirit to the Spirit of Innovation
Leading original equipment manufacturers (OEMs) are highlighted in the report for applying innovative thinking to solve industry emissions challenges. Rolls-Royce, for example, has already announced the first flight of its all-electric “Spirit of Innovation” aircraft and has committed that by 2023 all of its Trent family engines will have been proven compatible with 100% SAF.
The Rolls-Royce Trent, a family of high bypass turbofans produced by Rolls-Royce, has been able to help airline customers automatically update predicted maintenance deadlines for every life-limited component inside their engines by using AI forecasting and digital twins through IFS aviation maintenance software. This forms a key part of the Rolls-Royce Blue Data Thread strategy; a digital information thread connecting every Rolls-Royce-powered aircraft, every airline operation, every maintenance shop and every factory.
More effective maintenance will also translate into sustainability benefits. As the aviation industry moves toward a greener future, digitalization and predictive maintenance are important elements for the engineering side of the industry. By reducing the need for maintenance interventions, part replacements and overhauls, the use of energy and resources in manufacturing is reduced, and the emissions footprint of part and engine logistics is minimized.
Turn to Tech to Sustain Green Pledges
These are just three industries where technology is playing a pivotal role in achieving ESG goals. The case is clear: Sustainability initiatives can be accelerated by here-and-now technology such as IoT, AI, cloud deployments and more, not space age or future–focused solutions. The link between meeting customer demands, fulfilling environmental goals and greater profitability has never been closer. Technology will be a strategic business enabler to achieve all three.
