Sustainability is becoming increasingly crucial for organizations to remain competitive in this ever-evolving business world. Like digital transformation, companies must transform every business division to drive sustainability. According to McKinsey Global Survey, 83% of C-suite executives and investment professionals believe environmental, social, and governance (ESG) programs will generate more stakeholder value in the next five years. In this article at Computerworld, Lucas Mearian explains why sustainable tech is one of the top initiatives among executives.
Can Sustainable Tech Create Greater Efficiencies and Save Money?
According to a study conducted by McKinsey, having a sustainable tech strategy allows a company to make long-term investments. Today, many business leaders are becoming aware of the need to recycle and reuse resources, regenerate natural capital, and are moving towards the circular economy. “Investments in sustainable technology can pay off by providing new growth areas,” says Mearian. The author cites the example of the Japanese transport company Mitsui O.S.K. Lines, which uses AI-powered models. The sustainable tech helped them improve shipping efficiencies in the maritime industry. In another example, Dubai Electricity and Water Authority implemented the Internet of Things (IoT) and digital twin technology to create smart building management solutions. This brought down water usage by 50%.
Why Should C-Suite Executives Consider Sustainable Tech?
Adds a Competitive Advantage
Millennials, Gen Z, and baby boomers are changing their habits to reduce environmental impact. Therefore, corporate brands can increase their value and achieve business success by focusing on sustainability. Organizations incorporating sustainability into their business models and operations will undoubtedly have a lasting competitive edge.
Meets Customer Expectations
Studies have highlighted that nearly 66% of consumers prefer more sustainability-inclined products. Additionally, 81% of global consumers strongly believe corporate brands must help improve the environment. The changing consumer expectations that support sustainability are only growing more vital as the numbers of Millennials and Gen Z increase.
According to a McKinsey survey, implementing a robust sustainability strategy will help organizations substantially reduce production costs and enhance operating profits by as much as 60%. Building sustainability into business units will improve an organization’s opportunities to profit from its sustainable activities. Furthermore, organizations can also get tax incentives and subsidies.
To read the original article, click on https://www.computerworld.com/article/3676637/why-sustainable-tech-is-becoming-a-top-initiative-for-execs.html.
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