The Growing Importance of Sustainable Technology on the Industrial World

In the modern era, sustainable technology emerges as a beacon of progress, discovering the intersection of innovation and environmental responsibility. As challenges of climate change and resource exhaustion are grappled worldwide, sustainable technology strives to redefine the approach to development. Intrinsic sustainability is fostered through automated operations, and cutting-edge digital technologies such as blockchain, IoT and the cloud are revolutionizing measurements of environmental and social impact. This blog delves into the diverse realms of sustainable technology, exploring its varied facets. Addressing environmental challenges demands immediate action. Daily threats such as resource depletion, pollution, deforestation, electronic waste, poor air and water quality, and ozone layer destruction necessitate urgent solutions. Choosing sustainable technology is crucial for both organizations and individuals in the fight against climate change.

"Vantage Market Research, the green technology and sustainability market, valued at $10.9 billion in 2021, is projected to reach $44.4 billion by 2028. This reflects the growing market for sustainable technology."

Sustainable Technology: What Is It?

Sustainable technology, characterized by its focus on social and economic advancement while prioritizing natural resources, aims to provide products with minimal environmental impact. This approach to technology sustainability encompasses various dimensions:

• Replacement involves transitioning from non-biodegradable to biodegradable materials in the manufacturing process. It also entails replacing non-renewable resources with renewable alternatives.
• The new manufacturing process incorporates a Prohibition approach, actively avoiding degradation, pollution, and other harmful environmental consequences associated with traditional methods.
• Effectiveness of sustainability is measured by the efficiency of technology in terms of energy and resource utilization. An effective sustainable technology optimizes these factors to minimize its environmental footprint.

Diverse Examples of Sustainable Technology and Processes

1. Automated Operations

Industry automation leaders in sustainability prioritize operations and processes that inherently promote environmental responsibility, including adopting innovative manufacturing and materials technologies. This involves utilizing alternative inputs to reduce emissions and waste. The commitment to sustainability not only earns recognition and support from consumers and investors but also enhances corporate resilience. Digital operations contribute to this resilience, with underlying technologies becoming widely accepted practices.

As an efficiency-as-a-service pioneer, Schneider Electric has transitioned from installing industrial electrical equipment to generating revenue by reducing clients' carbon footprints. Schneider Electric's business growth is propelled by the financial benefits derived from clients' efficiency improvements, leading to a heightened environmental and social impact through savings in energy and reductions in carbon emissions.

2. Carbon Emissions

Reducing Carbon Emissions: Companies are adopting carbon neutrality targets for future milestones like 2030 and 2050. Technology is employed to either eliminate emissions entirely or, at a minimum, capture and transform them into less harmful substances. Currently, there is a prevalence of facilities that extract CO2 from the air, with an operational facility in Iceland relocating 4,000 metric tons of carbon dioxide underground annually for conversion into rock. Similar facilities are under construction in Spain, the UK, and Norway. Carbon footprint evaluation involves measuring emissions associated with a company's products or services. It comprises three emission scopes:

• Direct emissions originating from owned or managed sources
• Indirect emissions resulting from purchased energy
• All other indirect emissions connected to the value chain

Gartner predicts that as non-financial corporate sustainability reporting becomes more prevalent and businesses intensify their commitment to emission reduction, technologies for assessing carbon footprints will become more widespread. Blockchain and IoT sensors can aid in converting emissions into designated carbon credits to offset activities. Moreover, blockchain ensures the accuracy of the data.

• Digital technologies, including Blockchain, Internet of Things, and Cloud Computing, are transforming environmental and social impact measurement along value chains, extending to areas such as industrial automation. Through connected IoT sensors, cloud-based data storage, and blockchain-powered tracking systems, companies can explore innovative ways to monitor and measure. Enabling greater transparency in the value chain, this also empowers companies to advance their Environmental, Social, and Governance (ESG) objectives, by making informed management and investment decisions. Notably, blockchain-based solutions enhance value chain transparency, ensuring the reliability and security of products from the source to the end-user, encompassing suppliers, manufacturers, retailers, and customers.
• Valuable information and insights concerning the social and environmental impact of specific products or services are generated by Artificial Intelligence and Advanced Analytics. Collaboration among partners is facilitated by digital platforms, allowing the transparent and responsible exchange of data. Real-time optimization of energy efficiency, leading to simultaneous reductions in emissions and cost savings, is achieved through solutions based on IoT and AI. Utilizing these capabilities, visionary leaders craft and refine offerings, establish connections and consistently enhance overall performance.
• Technology Related to Sustainability and Recycling provides recycling businesses with a mechanism to improve material reuse. On a waste platform, certain robots, trained with artificial vision and AI, have the ability to distinguish between items and make informed decisions on which ones to recycle. The process of garbage sorting is simplified through automation, presenting an efficient and environmentally beneficial approach.
• Innovative collaboration within or across companies and sectors is facilitated by the Exchange of Data and Ecosystems, providing creative solutions to pressing social and environmental challenges. Through this collaborative approach, companies gain the ability to expand their influence, tackle capacity constraints, explore new markets, and combine resources more seamlessly. Demonstrating this, software solutions integrating telecommunications companies with insurance underwriters can extend microinsurance to underserved communities through phone subscriptions.

According to a BCG study on the topic, data sharing contributes value in five distinct ways: fostering creativity, building trust, improving coordination, increasing awareness, and validating ideas.

Sustainable Technology’s Advantages for Business

Sustainable technology aims to minimize negative social and environmental impacts, benefiting a company's reputation and finances. Business owners want to make a positive impact while following moral and ethical principles. Using sustainable technology helps businesses stay competitive and be environmentally friendly. Understanding the benefits of incorporating sustainable technology into your company is essential.

Managing Risks

The utilization of sustainable technology lowers company risks by aiding businesses and the environment through the reduction of climate change's adverse effects. The employment of sustainability by 48% of companies in the corporate realm aims to enhance innovation and productivity. Additionally, companies boasting excellent ESG rankings find more favor among long-term investors, fostering a greater willingness to collaborate. Access to environmentally friendly technology can attract investors to your company.

Market Differentiation 

Adopting sustainable technology sets a business apart in a crowded marketplace. Consumers increasingly prefer environmentally conscious products and services, providing a unique selling proposition that can attract a growing segment of environmentally conscious customers.

Improve Financial Performance

Sustainable technologies, which allows for efficient resource utilization within your company. This strategic approach significantly bolsters your bottom line, leading to increased profits and sustained competitiveness. By optimizing resource allocation and minimizing costs, businesses can achieve a favorable balance between expenditure and revenue, ultimately contributing to improved financial health and a stronger market position.

Brand Image and Customer Loyalty

When a company prioritizes sustainability, it sends a powerful message to consumers that it is socially and environmentally responsible. This commitment can significantly enhance the brand image and foster customer loyalty. For example, a company in the fashion industry that uses recycled materials in its clothing lines and promotes fair labor practices not only appeals to eco-conscious consumers but also builds trust. Patagonia, the outdoor clothing brand, is a prime example. Their dedication to environmental sustainability, including initiatives like the "Worn Wear" program encouraging customers to buy used items, has strengthened their brand and created a loyal customer base.

Entry into New Markets 

Certain markets and industries prioritize sustainability, providing opportunities for businesses that adopt eco-friendly practices. These markets may have consumers who actively seek environmentally conscious products and services. For instance, the electric vehicle (EV) market is a growing sector where sustainability is a key focus. Companies like Tesla have gained access to this market by promoting clean energy and producing electric vehicles. By aligning their business with the sustainability priorities of the EV market, Tesla has not only gained entry but has become a leader in the industry, opening up new revenue streams and business opportunities.

Attracting & Retaining Top Talent 

Using sustainable technology in your company is crucial for attracting the best talent. Most millennials, about 75% express a preference for working with organizations that uphold high ethical and environmental standards. Adopting a sustainable business model not only aligns with these values but also contributes to increased employee loyalty. By showing a commitment to sustainability, businesses create a workplace that appeals to today's workforce, making it easier to attract and keep exceptional people.

Conclusion

A significant mindset shift is essential for achieving successful sustainable transformation. Rather than viewing the move towards sustainability solely as a compliance obligation or a business expense, business leaders should see it as an opportunity to add value. Companies that adopt this perspective will enhance their competitive position, enabling them to continually reconsider and revitalize their operations amidst the progressive increase in sustainability standards, with potential applications in the context of smart home solutions, in the future.

Read more about our success stories and feel free to reach out to ACL Digital. Drop us a message at business@acldigital.com.