Digital Sustainability in corporate environment: strategies and impacts

In an increasingly connected world reliant on technology, digital sustainability emerges as a crucial concept for the future of our planet and future generations. As we progress into the digital age, the issue of sustainability transcends traditional environmental boundaries, extending into the virtual realm, where the impact of our digital actions begins to be felt more concretely and urgently.

According to the “Approaching the Age Of Performance” report by AVEVA, companies are increasingly committed to this practice, seeking responsible infrastructures and encouraging significant projects for the production chain.

Digital sustainability not only reduces emissions and energy consumption but is also recognized as crucial for 92% of companies in combating climate change, with 83% prioritizing renewable energy sources. These collective efforts reflect a growing commitment to a greener and more responsible technological future. In this article, we will discuss further the importance of companies having this awareness of digital sustainability and how it will be reflective in the future.

History and concept: what is Digital Sustainability?

Sustainability, as a concept, gained prominence in the 1980s, aiming to harmonize economic development, environmental protection, and social equity. Digital sustainability, on the other hand, began to take shape as society became more aware of the environmental impact of the technology sector, particularly in the 1990s and 2000s. As concerns about energy consumption, e-waste, and carbon emissions grew, companies and governments began to implement policies and practices to reduce these impacts.

Digital sustainability refers to the practice of designing, implementing, and using technology in a way that supports the health and well-being of the environment, society, and economies. This involves a conscious and responsible approach in the development and use of digital systems, aiming to minimize negative impacts on the natural and human environment while maximizing positive benefits for the present and future.

The concept extends across various dimensions, from reducing energy consumption and managing electronic waste to promoting digital inclusion and creating more resilient and sustainable economies. Additionally, energy efficiency in data centers has become increasingly common, marking the continuous evolution of sustainability in the digital domain.

Why is it important?

The importance of digital sustainability is multifaceted. Firstly, there is a direct environmental impact. The IT sector is one of the largest energy consumers globally, and electronic waste represents a significant source of pollution. As more people and services migrate to digital, the demand for energy and resources increases, along with waste production. Adopting sustainable practices helps mitigate these effects, preserving natural resources and reducing pollution.

From a social perspective, digital sustainability promotes inclusion and equitable access to technologies. This means creating opportunities for everyone to benefit from digital advances without widening the digital divide or perpetuating inequalities.

Economically, sustainable practices can lead to more efficient operations and better risk management, resulting in long-term cost savings and the creation of new market opportunities. Companies that adopt these strategies often find themselves at the forefront of innovation, attracting investments and conscious consumers.

It’s hard for us to imagine that sending an email or keeping a network of systems and programs online can be polluting. Maintaining online systems requires equipment that consumes a lot of electricity and needs temperature control. According to researcher Mike Berners-Lee, a carbon footprint specialist, as early as 2010, data centers were responsible for 130 million tons of CO2e in the atmosphere, equivalent to 0.25% of the global total at the time.

Even more striking, in 2015, searches on Google, for example, a basic activity in our daily lives, resulted in 40% of the carbon dioxide emissions related to the internet. What we can conclude from all this is that internet usage directly impacts natural climate effects, however less obvious it may be.

What are the benefits of adopting Digital Sustainability?

Adopting digital sustainability brings significant benefits to companies, including cost savings through increased energy efficiency, improved reputation and brand image, attraction of conscious customers and investors, compliance with environmental regulations and standards, and contribution to innovation and sustainable development. Check out the details:

Cost savings

Implementing sustainable practices, such as energy efficiency and waste management, can result in significant savings in operational costs.

Improved reputation

Adopting digital sustainability improves the company’s public image, attracting customers and partners who value environmental responsibility.

Attraction of investments

Investors are increasingly seeking companies with sustainable commitments, aiming for reduced risks and long-term returns.

Compliance with regulations

Companies avoid penalties and stay competitive by adhering to growing environmental regulations.

Innovation and leadership

Sustainable practices can stimulate innovation, leading to the development of new products and services.

Customer satisfaction

Conscious consumers tend to prefer companies with sustainable practices, increasing customer loyalty and satisfaction.

Risk management

Digital sustainability helps identify and manage environmental and social risks, protecting the company against adverse events.

ESG and Digital Sustainability

ESG (Environmental, Social, and Governance) is a set of criteria used to assess the sustainable and ethical performance of a company. The relationship between ESG and digital sustainability reflects a fundamental shift in the corporate universe.

Once seen as a luxury, environmental and ethical practices are now mandatory, with companies proving their positive impacts through auditable data and metrics. Digital sustainability, as part of the environmental aspect of ESG, focuses on technological practices that minimize environmental impact, promoting energy efficiency and waste management. Additionally, it supports social inclusion and ethical corporate governance, ensuring that technological innovations advance responsibly and benefit all stakeholders.

The adoption of these practices not only responds to demands from investors and consumers, as we have seen in the benefits above, but also aligns businesses with environmental and social responsibility. According to Forbes, a study conducted by the Akatu Institute and GlobeScan showed that in Brazil, over 70% of consumers expect companies not to harm the environment, and over 60% want companies to set goals to make the world better, highlighting the growing importance of sustainable policies in purchasing decisions.

Digital Transformation and Digital Sustainability

Digital transformation is an ongoing revolution that permeates all aspects of business, from internal operations to customer interaction. It involves the adoption of advanced technologies such as artificial intelligence, big data, and the Internet of Things (IoT), changing the way companies operate, create value, and differentiate themselves in the market. This movement towards digital has the potential to bring unprecedented efficiencies and open new paths for innovation.

However, as organizations become increasingly dependent on technology, there is a need to consider the environmental impact of this transformation. Digital sustainability emerges as a response to this concern, seeking to ensure that technological advancement occurs responsibly and consciously.

The relationship between digital transformation and digital sustainability is therefore intrinsic. One cannot exist effectively and responsibly without the other. As companies continue to evolve digitally, the integration of sustainable practices becomes fundamental to mitigate negative environmental impacts.

Green Technology

Green technology, or “green tech,” refers to sustainable technologies and practices designed to reduce or eliminate negative impacts on the environment. It encompasses a wide range of innovations, from renewable energy sources and energy efficiency to sustainable materials and waste management solutions, aiming for a more sustainable and responsible future.

In the medium and long term, pressure is mounting for companies to rapidly reduce their carbon emissions, while valuing those that are pioneers in these efforts, as Brazil alone is the 5th largest producer of electronic waste in the world, responsible for over 2 million tons.

How to implement Digital Sustainability?

With all this pressure on companies, “Approaching the Age Of Performance” reported that 89% of surveyed organizations are committed to combating the effects of climate change. For this, we have prepared a step-by-step guide on how to incorporate digital sustainability into your company.

Impact assessment and strategic planning

Understand the environmental, economic, and social impact of current digital operations and integrate digital sustainability into strategic planning.

Carbon emissions reduction

Establish emission reduction goals, monitor carbon emissions generated, and seek ways to decrease them.

Use of renewable energies

Transition to renewable energy sources, such as solar and wind, to power digital infrastructures and reduce carbon footprint.

Infrastructure optimization

Modernize infrastructure to make it more efficient, including the adoption of data centers that use renewable energies and the implementation of efficient technological solutions.

Training and awareness

Invest in educating employees about the environmental impact of digital activities and promote understanding of digital sustainability principles.

Promotion of sharing economy

Encourage shared economy practices, where digital resources and services are shared, maximizing utilization and reducing waste.

Responsible disposal of electronic waste

Implement policies for proper disposal of electronic equipment and e-waste.

These are actions that not only reduce the environmental impact of digital operations but are also aligned in offering benefits such as operational efficiency, improved brand reputation, and alignment with the expectations of environmentally conscious consumers.

Digital Sustainability Case Studies

In addition to investor concern about how companies address digital sustainability, the “Building Our Future” report, conducted by Eureca in partnership with Davos Lab, confirms the consumer demand mentioned above for brands that take a stance and care about sustainability. According to them, 84.9% of young people want both private and public organizations to take responsibility for social, environmental, governance, and technology ethics standards.

With so much pressure and awareness, it’s no wonder that some companies have moved and already presented digital sustainability actions.

Check out the list of companies and their actions according to Forbes:

• Natura: Committed to zeroing its greenhouse gas emissions by 2030 and active in preserving the Amazon.
• Boticário: Stands out in recycling and sustainable development, with goals to solve 150% of the waste generated.
• Ambev: Focuses on intelligent water use and has the lowest usage rate per liter of beer in the sector.
• Unilever: Adopts a sustainability plan that extends to suppliers and customers, seeking to reduce gas emissions.
• Ypê: Created an exclusive area to take care of the sustainability and social impact of its actions.
• Nestlé: Has goals for regenerative practices, plastic recycling, and Amazon forest conservation.
• Petrobras: Seeks to reduce emissions of polluting gases and invests in innovative technologies like wind farms.
• Banco do Brasil: Invests in sustainable technologies and favors companies committed to environmental preservation.
• P&G: Established goals for net zero greenhouse gas emissions and an action plan for climate transition.
• Coca-Cola: Launched a sustainability campaign, aiming to recycle 100% of packaging and return all water used.

The incorporation of digital sustainability is more than a trend; it is an imperative need for companies wishing to thrive in a conscious global economy. Leading organizations are already paving the way, showing that the integration of sustainable practices not only benefits the environment but also strengthens market position, improves operational efficiency, and drives innovation.

By prioritizing digital sustainability, companies not only contribute to a better world but also prepare for success in a future where business and responsibility go hand in hand. If your company is at this moment, see the governance solutions that Objective offers to assist you on this journey.