Sustainable technology seeks to address environmental, social, and governance (ESG) issues by utilising sustainable materials and processes to develop new technologies.
Physical technologies like solar panels and software for ESG performance management and reporting are examples of sustainable technologies.
Organisations may consider the resources used to develop the technology, the supplier of those materials, and possible adverse outputs throughout the technology’s life cycle, such as emissions or e-waste, when developing technology sustainably.
In this context, sustainable technology refers to an approach or philosophy that guides the development and application of technologies.
Businesses frequently aim to advance ESG-related goals when implementing sustainable products or technologies. For instance, organisations might develop technologies that use less fossil fuel, such as electric cars, or decarbonise waste.
Additionally, businesses can lower their carbon footprint by implementing sustainable technologies. They can use artificial intelligence (AI) to perform diagnostics and identify the parts of their company that generate the most waste, for example. Businesses can then use carbon accounting to find ways to reduce their greenhouse gas emissions or promote the use of renewable energy sources after gaining these insights.
What is sustainability?
The long-term goal of enabling people to live together on Earth without consuming excessive natural resources is known as sustainability. The ultimate objective is to improve the planet’s and people’s futures. The three pillars or dimensions of sustainability, which are economic, social, and environmental, are widely acknowledged by experts.
Since the triple bottom line, a sustainability framework centred on the three Ps (people, planet, and profit), aligns with these dimensions, many business leaders are aware of them. Businesses are more likely to succeed in the long run if they maximise all three bottom lines.
Businesses are beginning to see that becoming sustainable and reducing their environmental impact doesn’t have to mean sacrificing their bottom line. In fact, by creating and implementing sustainable technologies, some businesses are seeing higher margins. As a result, they are evaluating risks in new ways and enhancing resilience while taking external factors into account.
The way we engage with the world around us is impacted by the pervasiveness of technology in our society and daily lives. At the same time, people and businesses are facing several significant, previously unheard-of challenges, such as the aftereffects of the COVID-19 pandemic, the increasing impacts of climate change, the depletion of natural resources, and the growing demands on the world’s food and energy supplies.
The operations and supply chains that are essential to both large and small businesses, as well as the daily lives of people worldwide, have been increasingly disrupted by these challenges. Rethinking how we interact with current innovations to address environmental and societal issues is made possible by sustainable technology.
For example, businesses can optimise routes and improve fleet management sustainability by utilising technological solutions such as the Internet of Things (IoT). Likewise, an organisation’s procurement department may function more efficiently.
The role of software
Software is another category of sustainable technology. Software can be sustainable in several ways, such as during the design stage, which is thought to account for more than 80% of all product-related environmental effects. Designers can incorporate sustainability into their software development strategies by ensuring that the software’s positive impact on users, communities, and society outweighs any negative effects on the environment or society. Software can also be used to leverage data insights to make better decisions. Analytics dashboards, data harmonisation, and automated data collection are some of the tools that can assist businesses in finding ways to lower their carbon footprints and run more sustainably.
Industry leaders can certainly incorporate sustainable technology into their business plans since it enhances the triple bottom line and appeals to stakeholders. To build a more sustainable future, sustainable technology is employed in various impactful ways, as outlined below.
Scoring high on the environment front
Businesses can empower the circular economy and move away from conventional linear economic models that emphasise the use of raw materials by implementing sustainable technologies. Leasing, recycling, renovating, repairing, reusing, and sharing existing materials and products for as long as feasible are all prioritised by the circular economy. By adopting this perspective, businesses can create and implement technology that enhances human and environmental health while lowering their carbon footprint.
Organisations can also use sustainable technologies to monitor ESG metrics related to water use, emissions, energy use, and other areas. Through ESG scores, companies assess how their ESG initiatives align with broader sustainability trends and identify potential areas for improvement. Making decisions based on this information can enhance sustainability performance and ensure compliance with legal requirements.
The reputation of a business and, consequently, its financial performance are now inextricably linked to sustainability. Employers that prioritise ESG initiatives and are sustainable and socially conscious are more likely to attract employees seeking purpose-driven work. Employing sustainable technologies helps businesses attract and retain this expanding talent pool of socially and environmentally conscious individuals.
Investors are also more drawn to businesses that are driven by sustainability. According to a recent report, nearly 60% of CEOs say they observe strong investor demand for increased sustainability transparency. Businesses can measure, improve, and communicate to stakeholders how well they are doing in reaching sustainability goals with the use of sustainable technologies. For example, data on energy consumption can be collected on a factory floor using IoT devices, establishing a baseline that can guide the company’s energy strategy.
Meeting global standards
The regulatory environment today is constantly changing. Governments are likely to continue adding to laws such as the Corporate Sustainability Reporting Directive (CSRD), a European Union law requiring businesses to disclose the sustainable and environmental effects of their operations.
Although not required, businesses are encouraged to incorporate the United Nations’ Sustainable Development Goals (SDGs) into their operations.
In the context of a green economy, SDG 17 specifically calls for “the research, development, deployment, and widespread diffusion of environmentally sound technologies.”
By implementing sustainable technology solutions that continuously record, evaluate, benchmark, and report on ESG performance, organisations can stay ahead of the current regulatory landscape.
End-to-end transparency offered by sustainable technologies has the potential to revolutionise supply chains for businesses. For example, companies can track carbon emissions upstream using AI to identify ESG risks and opportunities. They can use machine learning to predict demand downstream and deploy their fleet more effectively and efficiently.
By applying the knowledge gained from sustainable technologies, businesses can improve and cover the full life cycle of goods and equipment by integrating circular design principles like recycling and refurbishment into their supply chain.
Additionally, businesses can use sustainable technology to examine their supplier and partner ecosystem. This can be useful when assembling ESG reporting metrics.
Businesses that use the Task Force on Climate-related Financial Disclosures (TCFD) or Global Reporting Initiative (GRI) reporting frameworks are required to report on Scope 3 emissions, which are a type of greenhouse gas.
The future of sustainable technology
To align sustainability goals with financial performance, companies can reconsider their business models by leveraging sustainable technologies. For instance, financial services firms can utilise cloud solutions to reduce energy consumption in their data centres.
Robotic process automation can help consumer goods companies increase accuracy and reduce waste in their manufacturing processes. By storing encrypted patient data on a blockchain, healthcare institutions can replace paper health records with electronic ones, cutting waste and increasing security.
Leading companies in the sector are encouraged to invest more in ESG projects through examples of sustainable innovation. The companies are investing in and collaborating with startups in this direction.
The United Kingdom and Canada have collaborated on a research project to enhance the mining and supply chain of critical minerals, which are essential for national defence, renewable energy systems, and smartphones.
A new scientific collaboration will bring together scientists from both nations to tackle some of the most urgent issues in supply chain resilience, environmental sustainability, and critical mineral extraction. The collaboration will investigate cutting-edge methods through five projects, including advanced geological exploration, sustainable mining methods, and mine water cleanup.
Each project uses creative, environmentally friendly solutions to address a distinct part of the critical minerals supply chain. One project is dedicated to mine water cleanup, employing microalgae and calcium silicate to efficiently extract harmful metals like copper, nickel, and cobalt from tainted mine water. This economical, environmentally friendly method allows for the recovery and repurposing of these precious metals while also purifying the water.
The UK and Canada aim to achieve long-term access to essential resources while minimising environmental impact by investing in sustainable mining practices and adopting circular economy strategies.
This alliance facilitates innovation, economic growth, and job creation by enhancing scientific and industrial cooperation between these leading economies. Additionally, it supports national security objectives by reducing reliance on fragile supply chains and promoting more resilient and environmentally conscious systems.