Uniting Technology and Sustainability to Drive Value
Uniting Technology and Sustainability to Drive Value
Just as digital transformation required each organization to
grow to be a technology employer, now each enterprise wishes to behave speedy
to grow to be sustainable. And, another time, era has a starring position to
play in this evolution.
It’s a fact that’s showed by using Accenture’s brand new
sustainable generation survey, which pulls from enter furnished by means of 560
businesses with revenues above US$1 billion all over the globe. Every single
respondent ranked generation as crucial for reaching their sustainability
dreams.
Digging deeper, we see why technology is shifting front and
middle on the sustainability schedule. Companies that undertake sustainable
tech to a widespread volume acquire 4% better environmental, social, and
governance (ESG) ratings from Arabesque S-Ray (a global expert in measuring ESG
metrics). And this can lift their standard ESG ranking via eleven%.
Tech-powered sustainability isn’t just correct -- it’s
desirable business, too. Accenture’s evaluation shows that agencies with always
high ESG overall performance generate 2.6x extra price for shareholders than
medium ESG performers.
There’s truly a lot to be won from a holistic sustainable
technology strategy. But even as maximum organizations are privy to the
benefits, they’re nevertheless a long manner off from achieving them. In truth,
most effective 7% of agencies have absolutely integrated their technology and
sustainability strategies.
What’s Holding Organizations Back?
Some groups are nevertheless struggling to figure out the
ESG impact of their existing technology, and a way to improve it. Overall,
there are a few not unusual challenges that companies face in transferring
their sustainable generation strategies from ambition to reality:
Another huge barrier: CIOs don’t always have a seat on the
table on sustainability choices. Although era is turning into core to
executives’ sustainability agendas, the occupation of most CIOs has no longer
evolved in step with this shift. Only forty nine% are at the management crew
placing sustainability dreams, and just 45% are assessed on achieving these
desires.Three Keys to a Sustainable Tech StrategyTo really recognize fee,
organizations want to shut the space among their sustainability and technology
strategies -- and CIOs have a essential function to play in driving this shift.
They can assist fuel each business growth and ESG overall performance with an
included sustainable technology strategy that’s built round 3 key
elements:Sustainability with the aid of tech: using era innovation to allow
sustainability initiativesSustainability in tech: measuring the ESG impacts of
era, and running to make sure it’s designed, advanced, and deployed
sustainablySustainability at scale: engaging the complete surroundings of
businesses, non-profits, and authorities agencies to make an effect beyond the
enterprise and throughout the worldRanking Our RespondentsAs a part of its
file, Accenture advanced a sustainable generation index, which ranks overall
performance against those three factors on a scale of zero-1. Interestingly, it
revealed a “crowded center” around the median score of 0.45. Roughly 60% of
organizations published rankings within the range of 0.Three to 0.5. This
indicates that maximum corporations nevertheless have an extended manner to go
in achieving all 3 factors of a sustainable era method. Better Performance =
Bigger BenefitsThose groups that positioned within the tough work stand to
realise real price. It is obvious that the higher a business ratings at the
sustainable generation index, the much more likely they're to look upgrades
across quite a number KPIs. These include extra financial performance,
innovation, customer enjoy, hiring ability, software program exceptional and
ESG goals.Around 1/2 of all respondents conveyed that they’re before now seeing
returns on their investments in sustainable generation in at the least this
type of categories. It’s a promising begin -- but it’s really worth noting that
only a few organizations currently benefit multiple commercial enterprise
blessings across the spectrum, which is in which the whole fee of a sustainable
technology approach lies.To placed it extra bluntly, if the average performers
on that sustainable generation index had been to move into the group of top
performers, they might be 21% more likely to realise at the least five blessings.
That offers a robust case for an integrated sustainable era approach. And those
CIOs who're inclined to upward push to the assignment will power new resources
of value for their commercial enterprise, even as lights its manner to a more
sustainable destiny.
Three Keys to a Sustainable Tech Strategy
To actually understand value, companies need to shut the
distance among their sustainability and era strategies -- and CIOs have a
crucial role to play in riding this shift. They can assist fuel both commercial
enterprise increase and ESG performance with an incorporated sustainable era
method that’s built around three key elements:
Ranking Our RespondentsAs part of its document, Accenture
developed a sustainable era index, which ranks overall performance against
those three elements on a scale of 0-1. Interestingly, it revealed a “crowded
middle” around the median rating of zero.45. Roughly 60% of corporations posted
rankings within the variety of zero.3 to 0.5. This indicates that maximum
organizations still have a long manner to move in achieving all three factors
of a sustainable technology approach. Better Performance = Bigger BenefitsThose
businesses that put in the hard work stand to realise actual value. It is clear
that the higher a commercial enterprise scores on the sustainable generation
index, the much more likely they're to peer upgrades throughout a number KPIs.
These include extra monetary overall performance, innovation, client enjoy,
hiring capability, software program first-rate and ESG goals.Around half of of
all respondents reported that they’re before now seeing returns on their
investments in sustainable generation in at least this type of classes. It’s a
promising begin -- however it’s really worth noting that very few organizations
presently gain more than one commercial enterprise benefits throughout the
spectrum, that is where the entire cost of a sustainable generation method
lies.To positioned it more bluntly, if the average performers on that
sustainable era index were to move into the organization of pinnacle
performers, they would be 21% much more likely to realize at the least 5
benefits. That presents a sturdy case for an incorporated sustainable
technology approach. And those CIOs who are inclined to upward thrust to the
task will pressure new assets of value for his or her commercial enterprise,
even as lighting its manner to a greater sustainable destiny.
As a part of its file, Accenture advanced a sustainable
technology index, which ranks performance against those three elements on a
scale of 0-1. Interestingly, it revealed a “crowded middle” across the median
rating of 0.45. Roughly 60% of organizations posted scores within the range of
zero.Three to zero.Five. This indicates that maximum agencies still have a long
way to go in reaching all three factors of a sustainable generation approach.
Better Performance = Bigger Benefits
Those agencies that placed in the hard paintings stand to
recognise real fee. It is clear that the higher a commercial enterprise ratings
on the sustainable technology index, the much more likely they're to see
upgrades across a range of KPIs. These include more monetary performance,
innovation, purchaser experience, hiring ability, software best and ESG dreams.
Around half of all respondents pronounced that they’re
already far-sighted returns on their investments in sustainable era in at least
this sort of categories. It’s a promising start -- but it’s well worth noting
that very few corporations currently benefit multiple business blessings
throughout the spectrum, which is where the full price of a sustainable
technology method lies.
To placed it extra bluntly, if the common performers on that
sustainable era index were to move into the group of top performers, they could
be 21% much more likely to understand at least 5 advantages. That gives a
strong case for an integrated sustainable technology approach. And those CIOs
who are willing to rise to the assignment will power new resources of price for
his or her commercial enterprise, even as lighting its way to a greater
sustainable future.
