Even today, sustainable living and development pose a significant challenge. Each day we are exposed to environmental risks, including depletion of natural resources, pollution, deforestation, e-waste generation, poor air and water quality, ozone layer depletion, and more.
If proper action isn’t taken, CO2 emissions from the United States alone are projected to reach 4,807 million metric tons by 2050. That’s enough to get anyone worried, including business owners and major industry players.
Clearly, we need a solution, and we need it fast. One way businesses and individuals have begun to tackle climate change is through the use of sustainable technology.
In today’s fast-paced business environment, sustainable technology isn’t just a nice-to-have – it’s a strategic imperative. As more companies recognize the critical importance of reducing their environmental impact, those who adopt sustainable technology are not only safeguarding the planet but also gaining a significant competitive edge. The market for sustainable technology is experiencing unprecedented growth, driven by several compelling factors:
- Economic benefits: Sustainable technology delivers cost savings and operational efficiencies. McKinsey reports that companies adopting sustainable practices can reduce operating costs by up to 60%. This directly impacts the bottom line and enhances profitability.
- Rising consumer demand: Consumers are increasingly prioritizing eco-friendly products and services. According to Nielsen, 73% of global consumers are willing to change their consumption habits to reduce their environmental impact. Millennials and Gen Z, in particular, are leading this charge, demanding sustainability from the brands they support.
- Technological innovation: Innovation in sustainable technologies is accelerating. Investments in clean energy technologies, such as solar and wind, are projected to reach $4 trillion by 2030 (IEA). This innovation is driven by a collaborative ecosystem of technology providers, startups, NGOs, and academia. According to the Capgemini Research Institute’s latest research, 67% of organizations have seen a reduction in carbon emissions due to the implementation of sustainable product design strategies, while 73% have seen an improvement in revenue growth.
- Regulatory pressure: Governments and international bodies are implementing stringent regulations to promote sustainability. The European Green Deal, aiming to make Europe the first climate-neutral continent by 2050, exemplifies these efforts. Compliance with such regulations is becoming non-negotiable for businesses.
What is Sustainable Technology?
Sustainable technology is an umbrella term that describes innovation that considers natural resources and fosters economic and social development. The goal of these technologies is to drastically reduce environmental and ecological risks and to create a sustainable product.
Sustainability in technology can be defined in a few ways:
- Substitution. The technology fosters a shift from non-biodegradable to biodegradable materials in its production. It also replaces non-renewable with renewable resources.
- Prevention. The sustainable technology prevents deterioration, contamination, and other negative environmental impacts through its use or production.
- Efficiency. The technology is efficient in terms of its use of energy and resources.
Defining sustainable IT isn’t the most straightforward thing. What do we mean by it? Tech analyst Gartner attempted to formalize what “sustainable technology” means, defining it as:
“A framework of solutions that increases the energy and efficiency of IT services; enables enterprise sustainability through technologies like traceability, analytics, emissions management software and AI; and helps customers achieve their own sustainability objectives.”
The topic of Sustainable Technology has moved from #10 on the Top 10 Strategic Technology Trends for 2023…all the way up to #3 on the 2024 list. Gartner believes that organizations who invest in sustainable tech could unlock the potential to increase operational resilience and financial performance — while uncovering new paths to growth. They even estimate that within three years, 50% of CIOs will have their performance metrics/goals tied to the sustainability of the IT organization.
Does this mean that only the IT part of an organization should pay attention to sustainable efforts? I argue no.
Another definition: Accenture calls sustainable technology a “twofold imperative”. This is the right way to think about it. The imperative, summed up, is this:
Technology has changed our lives, but that technology consumes unsustainable amounts of energy. That volume will only grow as tech like AI, blockchain and quantum computing grow. So, we must use technology to become more sustainable. Where can technology finally make us work in new ways — the ways that PCs were supposed to free up our working lives, the things we have all been promised?
Why sustainable technology is essential
Sustainable technology is crucial for addressing both immediate business needs and long-term environmental goals:
- Operational efficiency: Sustainable practices improve productivity and resilience. Companies with strong sustainability practices experience up to 79% higher employee engagement.
- Cost savings: Energy-efficient technologies can significantly lower operational costs. The American Council for an Energy-Efficient Economy (ACEEE) estimates that energy-efficient buildings could save $1.2 trillion over the next decade.
- Competitive edge: Sustainability enhances brand reputation and customer loyalty. Capgemini’s Research Institute’s survey indicates that 79% of consumers prefer to buy from brands that support sustainability.
- Market opportunities: The market for green technology and sustainability is projected to grow to $36.6 billion by 2025, offering vast opportunities for businesses to expand their customer base and generate new revenue streams.
- Environmental impact: By reducing carbon footprints and conserving natural resources, sustainable technologies are key to combating climate change. For instance, renewable energy could reduce global carbon emissions by up to 70% by 2050 (IEA).
How Capgemini can help: Your partner in sustainability
Capgemini is at the forefront of digital transformation and sustainability consulting. Here’s how we can assist businesses in their sustainable technology journey:
- Strategic insights: We provide up-to-date market trends, best practices, and strategic opportunities for sustainable technology adoption.
- Cultural transformation: We support organizational change with training, coaching, and change management to foster a culture of sustainability and innovation.
- Cutting-edge technologies: We leverage advanced technologies such as AI, IoT, blockchain, and biotech, through our extensive network of partners and innovation hubs.
- Customized solutions: Our solutions are tailored to address specific sustainability challenges, including energy management, carbon reduction, and circular economy initiatives.
- Impact measurement: We offer robust tools for measuring and monitoring the impact of sustainable technology initiatives, ensuring data-driven decision-making.
Embracing sustainable technology for future success
Sustainable technology is not just an environmental necessity but a powerful business strategy. It helps companies reduce costs, enhance brand loyalty, and drive growth. By partnering with Capgemini, businesses can navigate the complexities of sustainability, seize market opportunities, and achieve their environmental goals.
Stay tuned for our next blog, where we will delve deeper into Capgemini’s Sustainable Technology framework and its transformative potential for your IT organization.
Join us for Capgemini’s “Business to Planet Connect” event during Climate Week 2024 at the Glasshouse in New York City on September 25. Engage with sustainability visionaries through keynote presentations, panel discussions, Q&As, and network with like-minded professionals and Capgemini experts.
Why Sustainable Technology is Good for Business
Sustainable environmental technology has the potential to transform how businesses and public systems do work. Sustainable technology aims to minimize any negative social and environmental impacts, which is good for a business’s bottom line, and its reputation.
Every business owner wants to make a difference and remain compliant with environmental and social standards. By implementing sustainable innovations, companies can stay competitive and help the environment.
We’ll look deeper into why your business should implement sustainable technology.
1. Reduce Risk and Improve Project Outcomes
One advantage of sustainable technology is that it helps your business reduce risk. When you utilize renewable and biodegradable materials, you’re indirectly protecting the ecosystem—and your business—from the negative effects of climate change.
Forty-eight percent of businesses today make use of sustainability to improve production and innovation. Plus, long-term investors are likely to work with businesses with great ESG scores. With sustainable tech at your disposal, your business will become desirable for investment.
2. Improve Your Bottom Line
With sustainable technology in your business, you can make use of resources effectively. This goes a long way in boosting your bottom line. Spending less and gaining more is a profit booster and helps your business to remain competitive.
3. Attract and Retain Top Talent
The silent battle of attracting and retaining top candidates rages on in the business world. The key to acquiring the best talent is to implement sustainable technology for your business.
