Sustainability

Technology and climate change drive digital transformation

May 29, 2024

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How technology and climate change drive digital transformation by 2030

At a time when technology and climate change are key factors influencing our world, the convergence of these areas is increasingly important. Digital transformation has become crucial as industries such as manufacturing, food and beverage, energy, and chemicals strive to lower carbon emissions, enhance energy efficiency, and grow sustainably. Advancing to digital maturity means leveraging digital technologies, ecosystems, and infrastructure to address climate change effects while also improving operations and gaining a competitive edge.

This article delves into how digitalization—the integration of digital technologies into the industrial world—is accelerating under the dual pressures of climate change and technological advancement, particularly regarding achieving Sustainable Development Goals (SDGs). It will explore the urgency of digital transformation for sustainability, the nexus between digital strategies and SDG targets, and how digital initiatives and digital innovation are being implemented to enhance data transparency, foster digital ecosystems, and promote digital inclusion. Moreover, it will examine the role of Information and Communication Technologies (ICT) and digital infrastructures in advancing these goals, highlight successful case studies for inspiration, and discuss the challenges and considerations inherent in escalating digital adoption and accelerating digitalization towards a more sustainable future.

The urgency of digital transformation for sustainability goals

Digital transformation is crucial not only for enhancing operational efficiency and customer experiences but also for advancing sustainability goals within the industrial sector, including manufacturing, food and beverage, energy, and chemical companies ^[7]. By leveraging data-driven insights, real-time monitoring, and collaborative platforms, these industries can optimize operations, engage stakeholders, and drive significant environmental and social impacts ^[7].

Embracing digital transformation for sustainability

Organizations across various sectors are now recognizing that achieving ambitious sustainability goals necessitates a systematic approach to digital transformation. Integrating technology and data from the outset is essential for building energy efficiency, as a competitive advantage ^[7]. This integration facilitates energy and process optimization and the adoption of cutting-edge technologies like cloud-native architectures, which are crucial for reducing emissions and establishing new industry standards ^[7].

Enhancing transparency and accountability

The use of technology-driven solutions such as IoT and blockchain enables greater transparency in carbon data across the value chain. This transparency allows all organizational levels to access data and insights, supporting sustainable decision-making processes ^[7]. Such initiatives are vital for companies committed to reducing their environmental footprint and enhancing corporate social responsibility.

Advancing circular economy through digitalization

Digital transformation and the circular economy are interlinked, offering opportunities to create reusable and sustainable products and services that minimize pollution ^[7]. By adopting cross-industry data-sharing ecosystems, organizations can comply with sustainability requirements and gain valuable insights into the environmental and societal impacts of their products and services ^[⁷^].

Digitalization’s role in meeting SDGs

Digitalization is acknowledged as a fundamental driver for achieving the Sustainable Development Goals (SDGs) by 2030. It supports major transformations in sectors like human capital, responsible consumption, and sustainable cities ^[8]. For instance, digital government initiatives can enhance public services and infrastructure, contributing to sustainable urban development ^[8].

Understanding the digital and Sustainable Development Goals (SDGs)

The integral role of ICT in achieving all SDGs

Information and communication technologies (ICTs) are pivotal in advancing every one of the 17 United Nations Sustainable Development Goals (SDGs). These technologies facilitate essential services in health care, education, finance, commerce, governance, agriculture, and more, significantly contributing to poverty reduction, health improvement, job creation, climate change mitigation, energy efficiency, and sustainable urban development ^[16][13].

ICTs and industrial sector advancements

In the industrial sector, including manufacturing, food and beverage, energy, and chemical companies, ICTs drive substantial improvements. By enabling efficient and affordable ICT infrastructure and services, they can enhance their digital economy engagement, boosting economic competitiveness and well-being. ^[16].

Strengthening infrastructure and fostering innovation

International Telecommunication Union (ITU) supports SDG 9 by helping countries build resilient infrastructure, promote sustainable industrialization, and foster innovation. This includes brokering international agreements for the use of global radio-frequency spectrum and satellite orbits, developing international ICT standards, and aiding developing countries in making ICTs affordable and accessible. These efforts are crucial for providing digital access to schools, hospitals, and underserved populations, thereby supporting sustainable development ^[16].

The impact of digital technologies on SDG targets

Digital technologies are closely linked to the SDGs, with the potential to directly benefit more than two-thirds of the UN’s SDG targets. These technologies create scale and efficiencies, facilitating economic and societal transformations that are essential for achieving goals in areas like climate action, education, hunger, and poverty. The SDG Digital Acceleration Agenda highlights these connections and provides a roadmap for governments to harness digital technologies for sustainable development ^[17].

Addressing connectivity and infrastructure challenges

To fully realize the benefits of digital technologies for sustainable development, significant investments in connectivity infrastructure and digital skills are necessary. Building robust digital public infrastructure based on strong governance and local digital ecosystems can deliver high impact across all SDGs, ensuring that no one is left behind. However, the global challenge remains to meet the targets for universal and meaningful connectivity by 2030 ^[17].

Case studies: successful digital initiatives towards SDGs

Digital green: revolutionizing agriculture

Digital green is a notable initiative leveraging mobile technology to transform agriculture. By mobilizing data and expertise through apps, this initiative significantly boosts agricultural productivity and promotes sustainable practices. Farmers are equipped with the knowledge and tools needed to increase yield and implement environmentally friendly techniques, directly contributing to SDG targets related to hunger and poverty alleviation ^[20].

WattTime: AI-driven energy efficiency

WattTime utilizes artificial intelligence to identify and implement energy-saving opportunities. This technology not only detects but also automates behavior changes to reduce energy consumption. By providing actionable insights and solutions, WattTime supports industries in achieving greater energy efficiency, which is crucial for sustainable development within sectors like manufacturing and energy ^[20].

Enhancing waste management through digital technologies

Advanced digital technologies such as artificial neural networks and big data are transforming waste management. These technologies enable more efficient forecasting and management of waste generation, which is vital for sustainable urban development. For example, big data applications have been used to improve the performance of construction and demolition waste management and to detect illegal waste dumping ^[23].

The rainforest alert: protecting biodiversity

The Rainforest Alert initiative empowers local forest protectors by providing them with remote sensing tools. These tools enable the recording and reporting of illegal activities, enhancing the protection of biodiversity. By equipping communities with technology to monitor their environment actively, this initiative directly supports sustainability goals related to life on land ^[20].

These case studies show how digital technologies are being successfully applied across various sectors to advance the United Nations Sustainable Development Goals. By integrating innovative solutions, industries not only enhance their operational efficiency but also contribute significantly to global sustainability efforts.

The role of ICT and digital infrastructure in advancing SDGs

Enhancing service delivery in key sectors

ICTs play a crucial role in delivering high-quality services across various sectors including healthcare, education, finance, commerce, governance, and agriculture. These technologies are instrumental in reducing poverty and hunger, improving health outcomes, creating job opportunities, mitigating climate change, enhancing energy efficiency, and making cities more sustainable ^[31].

Facilitating access through international collaboration

ITU supports the deployment of broadband connectivity and the development of ICT applications by facilitating access to the Internet and other technologies, especially in underserved areas. This support is provided through brokering international agreements for the use of global radio-frequency spectrum and satellite orbits, developing international ICT standards, and assisting developing countries in making ICTs affordable and accessible. These efforts are crucial for achieving SDG 9 and its specific targets ^[31].

Driving industrial efficiency and sustainability

In the industrial sector, including manufacturing, energy, and chemical companies, digital infrastructure enhances the application of digital technologies in research and development, design, manufacturing, and management. This leads to improved energy utilization, reduced energy consumption, and supports the creation of smart energy systems and sustainable production processes. The integration of technologies such as big data, cloud computing, and artificial intelligence facilitates effective energy management and promotes environmental sustainability ^[34].

Innovations in Digital Technology Driving Sustainability

Digital traceability in the supply chain

Firmenich’s PATH2FARM initiative, launched in 2021, exemplifies how digital traceability can enhance sustainability by measuring Scope 3 emissions and providing end-to-end transparency in the supply chain. Similarly, BASF’s Seed2Sew project utilizes blockchain technology to trace the fashion value chain, demonstrating the potential of digital tools to improve sustainability across industries ^[37].

Enhancing agricultural sustainability

BASF combines satellite and sensor data with digital analytics to inform farmers about sustainable practices, aligning agricultural activities with sustainability goals. This approach not only aids in minimizing ecological footprints but also supports farmers in making informed decisions that contribute to environmental sustainability ^[37].

Digital twins and triplets for sustainability

Tesla’s use of digital twins to simulate every car sold demonstrates how digital technologies can reduce maintenance costs and environmental impact. Baker Hughes extends this concept to digital triplets, combining simulated data with actual performance data to extend product life and reduce the need for physical prototypes, highlighting the role of digital innovation in achieving sustainability targets ^[37].

Leveraging digital transformation for sustainability

Digital transformation offers green alternatives to traditional methods, from predictive maintenance to cloud computing and teleconferencing tools, which reduce carbon output. Workplace IoT technology optimizes resource usage, and data analytics identifies inefficiencies, showcasing how digital technologies contribute to a sustainable future ^[38].

Digitalization for sustainability

Digitalization is pivotal in addressing environmental challenges, from monitoring ecosystems to conserving resources. The proactive development and use of digital tools to achieve environmental targets emphasize the importance of leveraging technology for positive outcomes for both the environment and its inhabitants ^[39].

Sustainable digitalization

Encouraging the development of technologies with sustainability in mind ensures that technological advancements prioritize ethical considerations and environmental sustainability throughout their lifecycle. This approach, known as sustainable digitalization, is crucial for fostering positive outcomes for the planet ^[39].

Accelerating progress towards SDGs

ICTs play a crucial role in accelerating progress towards all 17 United Nations Sustainable Development Goals (SDGs), with ITU’s efforts particularly focused on SDG 9. By providing essential services across various sectors, ICTs contribute to reducing poverty, improving health, mitigating climate change, and making cities more sustainable ^[40].

Partnerships and Collaborations: The Key to Accelerated Progress

In the quest to confront climate change and achieve the UN Sustainable Development Goals (SDGs) by 2030, the importance of transformative partnerships across government, business, and civil society sectors cannot be overstated. Such collaborations are pivotal in making transformational changes toward a more equitable and sustainable world, where efforts lacking in cooperation may falter ^[43]. These partnerships hold the potential to enhance individual lives and global economies, providing organizations with valuable insights to maximize their contributions towards the SDGs ^[43]. However, the challenge lies not in the creation of more partnerships but in optimizing these collaborations to expedite their progress and success, transforming visionary ideas into tangible realities ^[43]^[44].

Public-private partnerships (PPPs)

Public-private partnerships (PPPs) emerge as a vital mechanism for pooling resources and expertise crucial for large-scale digital infrastructure development and innovation. Initiatives like the GSMA Thrive foster collaboration between mobile network operators, development finance institutions, and governments, driving investments to expand mobile broadband coverage in underserved areas. This, in turn, facilitates broader access to digital services essential for achieving various SDGs, particularly those related to education, healthcare, and financial inclusion ^[44].

Data governance and digital transformation

Data governance plays a critical role in the digital transformation journey, supporting policymakers in the Global South with the adoption of emerging technologies. By integrating open data and establishing robust data governance frameworks, stakeholders can promote sustainability and align with the SDGs. Creating a culture of data sharing and democratization within and outside government entities enhances decision-making processes and fosters the adoption of emerging technologies for public good ^[45].

Sustainable innovation in the corporate sector

Partnerships and collaboration are crucial for driving sustainable innovation within the corporate sector, allowing businesses to access a broader range of expertise, resources, and perspectives. By working with other organizations and stakeholders, businesses can identify and address sustainability challenges more effectively, accelerating the development and implementation of sustainable innovations. Collaborations may involve co-creating new products or services, sharing knowledge, or advocating for policy changes to foster systemic sustainability ^[46].

The role of the tech Industry in sustainability

The tech industry exemplifies the power of partnerships in driving positive change, with a significant portion of technology businesses collaborating on sustainability initiatives. These collaborations, often within the industry, focus on reducing emissions, improving technologies for tracking emissions in supply chains, and investing in renewable energy technologies. Such cooperative efforts highlight the industry’s commitment to achieving net-zero targets and underscore the necessity of sharing best practices for broader impact ^[47].

Manufacturing Clusters and Sustainability

Targeted collaborative efforts, such as the Net-Zero Basque Industrial Super Cluster, showcase the potential of manufacturing clusters to set new standards for environmental responsibility. These clusters, as vibrant networks of businesses and specialized suppliers, foster rapid idea exchange and the adoption of sustainable practices, enhancing global competitiveness and contributing to both industrial growth and regional economic enhancement through sustainable endeavors ^[48].

In summary, partnerships and collaborations across various sectors and industries are indispensable for achieving the SDGs and addressing climate change. By harnessing the collective expertise, resources, and innovative capabilities of diverse stakeholders, these collaborations pave the way for accelerated progress towards a more sustainable and equitable future.

Challenges and considerations in sigital transformation for SDGs

Initial investment and technological challenges

Digital transformation, particularly in adopting green technologies, demands significant initial investment, which can be a formidable challenge for businesses, especially small ones with limited budgets. The rapid pace of technological change further complicates investment decisions, making it difficult for companies to choose affordable and scalable solutions ^[51]. In the industrial sector, including manufacturing, food and beverage, energy, and chemical companies, the need for substantial investment in digital infrastructure and sustainable practices poses a unique set of challenges. These sectors must navigate the complexities of integrating digital technologies with environmental sustainability efforts, often requiring substantial financial resources and expertise ^[52]^[53].

Digital literacy and inclusion

Promoting digital literacy among the workforce and customers is essential for the successful implementation of digital transformation and sustainability initiatives. Disparities in digital skills can significantly impact operational efficiency, employee morale, market reach, and customer satisfaction. Ensuring digital inclusion is crucial to preventing global inequalities and ensuring that all stakeholders can participate in and benefit from digital advancements ^[51]. This is particularly relevant in the industrial sector, where the adoption of digital technologies can drive sustainability but also requires a workforce skilled in digital and green technologies ^[52]^[53].

Cybersecurity risks and data privacy

With the integration of digital technologies comes an increased risk of cyberattacks and breaches, which can have severe financial and reputational consequences. Enhancing cyber risk management and data privacy is crucial in the digital era. The lack of understanding about safe digital practices among employees and customers can expose sensitive data, making it imperative to improve digital literacy and promote secure, privacy-respecting infrastructure for all ^[51]. For companies in the industrial sector, protecting data related to sustainable practices and innovations is paramount, as breaches can undermine consumer trust and corporate sustainability efforts ^[52]^[53].

Complexity in combining digital transformation and sustainability

The integration of digital transformation with eco-friendly practices introduces complexity, involving intricate metrics that consider environmental, social, and economic aspects. Ensuring that global partners adhere to sustainability standards and fostering a company culture receptive to technology-induced changes are significant challenges. The swift evolution of technology necessitates continuous learning, investment, and adaptation. Effective communication and support within teams are essential to overcoming these challenges ^[51]. For the industrial sector, this complexity is magnified by the need to balance digital innovation with sustainable production processes and supply chains ^[52]^[53].

Addressing the environmental impact of digital technologies

Digital technologies consume significant energy and resources, contributing to greenhouse gas emissions and electronic waste. Promoting efficiency throughout the digital technology lifecycle, from production to disposal, is essential. This includes adopting more sustainable technologies, materials, and infrastructure, as well as transitioning to a low-carbon economy to reduce the carbon footprint of digital technologies ^[50]. For manufacturing, food and beverage, energy, and chemical companies, addressing the environmental impact of digital technologies is a critical consideration in their sustainability and digital transformation strategies ^[52]^[53].

Ensuring ethical use of digital technologies

The massive use of personal data and AI in digital technologies can lead to inequalities, discrimination, and exclusion of certain groups. Promoting ethics and responsibility in digital technology is vital, including adopting ethical standards and practices in technology development and use, and respecting human rights and privacy in data handling ^[50]. For the industrial sector, ethical considerations are crucial in developing digital solutions that support sustainability goals without compromising individual rights or contributing to social inequalities ^[52]^[53].

Final thoughts

Through a detailed exploration of the intersections between technology, climate change, and digital transformation, it is evident that industries across the board, notably manufacturing, food and beverage, energy, and chemical sectors, face a pivotal era. These industries are at the forefront of integrating digital strategies to mitigate environmental impacts, enhance operational efficiencies, and advance towards sustainable development goals. The critical role of Information and Communication Technologies (ICT) and digital infrastructures in driving this transformation cannot be overstated. By harnessing innovative digital technologies and fostering inclusivity, these sectors have the unique potential to lead by example, demonstrating how digitalization can support sustainable growth and resilience against the backdrop of climate challenges.

In moving forward, the importance of investing in digital literacy, cybersecurity, and ethical considerations emerges as fundamental to ensuring a successful and holistic digital transformation. The industrial sector embodies the urgent need for a symbiotic relationship between technological advancement and environmental stewardship. By continuing to foster partnerships, promote digital inclusion, and prioritize sustainability alongside digital innovation, these sectors will significantly contribute to the global pursuit of a more equitable, sustainable future. The journey toward achieving the Sustainable Development Goals by 2030 is complex, but with concerted efforts, the promise of digital transformation as a powerful ally in this pursuit is unmistakably clear.

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FAQs

How does digital technology contribute to reducing climate change?
Digital technology has the potential to significantly decrease emissions, particularly in the energy, materials, and mobility sectors. By 2050, the use of digital technologies could lead to a 20% reduction in emissions in these critical areas. By 2030, these industries might see a 4-10% reduction in emissions through enhanced adoption of digital solutions.
What makes the year 2030 significant in the context of climate change?
The year 2030 is a critical milestone as we need to cut emissions by 45% from current levels to stay within the 1.5°C temperature increase limit. This target is essential to prevent severe climate change impacts, despite challenges like population growth and increasing urbanization.
What are the specific climate change goals set for 2030?
In 2023, the European Union implemented several proposals aimed at aligning the EU’s climate, energy, transport, and taxation policies to achieve a minimum 55% reduction in net greenhouse gas emissions by 2030, relative to 1990 levels.
In what ways does technology influence climate change?
Technological advancements have led to increased production and usage of tech gadgets, which in turn raises energy consumption and results in higher fossil fuel usage. Additionally, modern forms of transportation such as planes, cars, trains, and ships facilitate global travel, further contributing to carbon emissions.

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