Celonis: How the Global Tech Sector can be More Sustainable
The technology industry, long criticised for its environmental impact, is undergoing a transformation in response to the global climate crisis.
As governments worldwide implement stricter regulations and consumers demand greater corporate responsibility, tech companies are increasingly focusing on sustainable practices.
This shift encompasses various aspects of the industry, from reducing the carbon footprint of data centres to developing energy-efficient devices and implementing circular economy principles in product design and manufacturing.
The urgency of this transition is underscored by recent climate reports.
The Intergovernmental Panel on Climate Change (IPCC) has warned that limiting global warming to 1.5°C above pre-industrial levels requires rapid and far-reaching changes across all sectors of the economy.
For the tech industry, which accounts for an estimated 2-3% of global greenhouse gas emissions, according to the International Energy Agency, this presents both a challenge and an opportunity.
Tech giants such as Microsoft, Google and Apple have made headlines with ambitious carbon neutrality and net-zero emission pledges.
However, the industry's environmental impact extends far beyond its direct operations.
The complex global supply chains that support the production and distribution of technology products contribute significantly to the sector's overall carbon footprint.
Supply chain emissions: a critical focus area
Recent data reveals the scale of the challenge: "Around 11% of global greenhouse gas emissions come from freight transportation and warehousing," states Janina Bauer, Global Head of Sustainability at Celonis, a process mining company.
This statistic highlights the urgent need for action in the tech industry's supply chains.
The complexity of these supply chains, often spanning multiple countries and involving numerous suppliers, has historically made it difficult for companies to accurately measure and manage their emissions.
"Historically, emissions data is often siloed, requiring separate sustainability teams to manually reach out to all business units to gather the information, run analysis, and generate company-wide buy-in," Janina explains.
This fragmented approach has hindered effective action on sustainability.
Without comprehensive, real-time data on emissions across their supply chains, tech companies have struggled to identify the most impactful areas for improvement and to track their progress effectively.
Process intelligence: a game-changer for sustainability
To address these challenges, a growing number of tech companies are turning to advanced data analytics and AI.
Process intelligence tools, which integrate data from various business systems and carbon intelligence sources, are emerging as a key technology in this effort.
"Process intelligence tools help businesses measure, manage and optimise emissions across the entire supply chain," Janina notes.
"By providing real-time, AI-driven insights, companies can set reduction targets, track performance and identify actionable opportunities to cut emissions."
These tools enable companies to gain a comprehensive view of their emissions across complex supply chains, identifying inefficiencies and opportunities for improvement that might otherwise go unnoticed.
This data-driven approach allows for more targeted and effective sustainability initiatives, potentially leading to significant reductions in emissions while also improving operational efficiency.
Regulatory pressures and consumer expectations
However, the push for sustainability in the tech industry is not solely driven by environmental concerns.
Increasing regulatory pressures and changing consumer expectations are also playing a significant role.
"Climate Week is a timely reminder for businesses to take action against the immediate threat of climate change and get their house in order when it comes to addressing sustainability," Janina states.
"During the week and in the lead up to COP29, consumers will want to know what companies are doing to lower their carbon footprint and meet their sustainability goals”, she adds.
As governments worldwide implement stricter emissions regulations and reporting requirements, tech companies that proactively address their environmental impact may be better positioned to adapt to these changing regulatory landscapes.
Moreover, consumers are increasingly factoring sustainability into their purchasing decisions, creating a market incentive for tech companies to improve their environmental performance.
Janina concludes: "As we hear from businesses across all sectors during Climate Week, it is vital that process intelligence tools are central to the conversation and taken into consideration when it comes to tackling the climate emergency."
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