The need to integrate sustainability into business processes is now ubiquitous. Companies are increasingly recognising the importance of this issue, whether for ethical, economic, regulatory or social reasons. However, even though many organisations have already taken the first step towards sustainability or have committed to doing so, there are still many challenges to overcome. These range from strategy and reporting, through supply chains and production, to IT and corporate culture. The good news is that many of these challenges can be overcome with the help of digital solutions. According to a study, companies that approach digital and sustainable transformation as a single, integrated process – so-called ‘Twin Transformers’ – are 2.5 times more likely than others to be among the top-performing companies of tomorrow.
Twin Transition: Integrating sustainability and digitalisation
Many companies still view their digital strategy and sustainability strategy as separate entities. However, untapped potential for synergy can arise when these areas are considered together. Neither digital nor sustainable transformation should be viewed in isolation from the core business; rather, each plays a significant role across the entire organisation. We’ll explain how digital solutions can support your sustainability transformation and how sustainability can present an opportunity for your digital transformation using the following case studies.
ESG data strategy
Comprehensive data collection and the associated internal processes present a major hurdle for companies in meeting regulatory requirements, such as the Corporate Sustainability Reporting Directive (CSRD) or the Supply Chain Due Diligence Act (LkSG). Decentralised, cross-process and cross-system data collection using bespoke software or existing SaaS solutions helps you to accelerate the sustainability reporting process and provides you with precise insight into your sustainability metrics. In conjunction with IoT and cloud solutions, you can capture your consumption and emissions data almost in real time, effectively creating a ‘Sustainability Control Tower’. The resulting data foundation also helps you identify opportunities for improving efficiency in your processes, thereby saving costs.
Supply chain management
Since this year, companies with more than 3,000 employees have been subject to a specific duty of care – from 2024, this will also apply to companies with 1,000 or more employees. The Supply Chain Due Diligence Act (LkSG) includes, amongst other things, complaint procedures, risk management and the provision of supplier lists. Structured processes, the allocation of resources and the associated costs are the basic prerequisites for ensuring a transparent supply chain. At the same time, the threat of fines weighs heavily on companies that fail to meet their due diligence obligations. Uniform data management for your supply chain ensures your compliance with the LkSG, creates transparency in your processes and unlocks potential for optimisation.
Digital Twins
The digital representation of processes, buildings and other assets enables precise monitoring of resource consumption and emissions, thereby maximising energy efficiency, minimising waste and reducing the environmental footprint. At the same time, it allows for continuous data analysis and simulations. Digital twins provide valuable insights for optimising operational processes and realising previously undiscovered efficiency gains.
Changes to core IT
More and more companies are recognising that changes to their core IT represent an effective way of both saving costs and operating more sustainably. Rather than using countless resources and ever-increasing amounts of space in their own data centres, they are increasingly turning to the transformation of their applications and data in the cloud. This step not only enables cost savings and a more flexible IT infrastructure – as only resources required are utilised – but also makes a significant contribution to sustainability. Cloud usage has a positive impact on the environmental footprint, as cloud providers generally operate more energy-efficient data centres and resources are utilised more efficiently through the shared use of infrastructure.
Sustainable products, services and business models
Sustainability driven by digitalisation goes far beyond increasing efficiency and optimising energy consumption. Sustainable products, services and business models are also of central importance for a holistic sustainability transformation. The Internet of Things, artificial intelligence and other technologies are already enabling information models in research and development processes; these can be used, for example, to carry out simulations that highlight at which points in the product life cycle products can be designed to be more sustainable. Furthermore, the technologies mentioned above enable the use of predictive maintenance. This helps to extend the life cycles of products and devices whilst simultaneously reducing operating costs. Last but not least, digitalisation enables the implementation of sustainable business models that facilitate sustainable and circular value chains and unlock new revenue potential.
Employees and customers
For a holistic sustainability transformation, employees must be involved. On the one hand, they have a major influence on the company’s sustainability performance; on the other, they often have many ideas and are highly motivated to make the company they work for more sustainable. With the help of platforms or apps, for example, they can be empowered to contribute their own ideas to the sustainability strategy. Gamification approaches can also encourage employees to make their professional and private daily lives – such as their commute – more sustainable. Similarly, you can also use digital solutions to encourage your customers to use your products sustainably. You can motivate them to adopt more environmentally conscious behaviour through financial incentives and gamification approaches.
Conclusion: The synergy between digitalisation and sustainability is a promising strategy for businesses to secure long-term competitiveness whilst simultaneously exerting a positive influence on the environment and society. This includes efficiency gains and competitive advantages, as well as compliance with regulatory requirements and the optimisation of supply chains. Whilst digital twins assist in monitoring resource consumption and emissions, and changes to core IT systems can deliver cost savings and environmental improvements, other digital technologies open up new avenues for developing sustainable products and business models. Finally, employees and customers can be actively involved in the sustainability process, thereby enabling a holistic approach to the sustainability strategy.
The Materna Group brings together digital know-how and sustainability expertise within a partner ecosystem of experienced specialists to tackle your specific sustainability challenges. We would be delighted to discuss your individual situation with you and develop solutions together. In a world where sustainability and digitalisation are becoming increasingly intertwined, the Twin Transition offers a way not only to overcome the challenges of the present but also to capitalise on the opportunities of the future. Companies that embark on this path are well-positioned to grow sustainably and successfully.
You can find more information on our website.
