Business and environmental goals are more closely aligned today than they were five years ago, a large majority (more than 70%) of executives said in a survey released this week by the Environmental Defense Fund (EDF). A major factor behind this alignment of goals? Innovative technologies that drive profitability and environmental performance, according to respondents. And consumers, aware of the ubiquity of such technologies, will hold businesses even more accountable for their environmental impact.
Executives are recognizing how emerging technologies that benefit the bottom line can also improve environmental performance, and thus are “accelerating sustainability efforts from the factory floor to the C-suite,” says Tom Murray, VP of EDF+Business. In fact, 70% of executives say their company is already actively investing in technologies that help solve environmental problems, and nearly five in six agree that investing in emerging technology is necessary to stay competitive.
Consumers Now Know We Have the Tools…
Consumers, who have increasingly been demanding transparency and accountability from corporations, are expected to become less forgiving of a lack of environmental responsibility. “The same innovations that are changing our lives and revolutionizing virtually every sector of the economy can be harnessed to scale solutions to our most urgent environmental challenges,” says Murray.
As consumers gain an understanding of the ubiquity of these technologies, they will hold businesses even more accountable for reducing their environmental impact, 80% of respondents believe.
…But That’s Not Driving the Adoption of Technology
While consumers will increasingly demand environmental responsibility, that’s not necessarily a driving factor of technology adoption, respondents say. More than three quarters (78%) of executives believe that new technologies will compel businesses to improve their environmental impact on their own, regardless of pressure from consumers or investors. Although regulations are a main motivator, uncertainty about where environmental regulations are headed does not seem to deter companies from making investments in technologies. Instead, executives tend to make ROI and the availability of infrastructure their primary considerations.
Additionally, 75% of top companies already consider the environmental impact of a technology when deciding to implement it.
Where Technology Can Help
The Business and the Fourth Wave of Environmentalism survey, which includes responses from more than 500 executives at companies that range from $500 million to more than $5 billion in revenues, examined how executives view and use seven emerging technologies. blockchain, sensors, data analytics, mobile ubiquity, dematerialization, automation, and sharing technologies.
According to the survey, these “fourth wave” innovations can supercharge sustainability efforts by:
- Uncovering valuable data that was previously invisible;
- Improving resilience across global supply chains; and
- Enabling powerful collaborations between industry, advocacy groups and communities.
Data analytics is the most implemented innovation and also believed to have the biggest potential impact on an organization’s bottom line, environmental footprint and brand reputation, the survey found. Data analytics and measurement technology are seen as having as much potential to improve the environment as both cap-and-trade systems and major environmental laws of the 1970s.
‘What the Heck Is Dematerialization?’
Still, not all executives understand the seven areas of emerging tech equally.
While blockchain and dematerialization are believed to have the greatest growth potential, they remain foreign concepts to about 35% of surveyed business leaders.
Take Our Word for It, Say These Business Leaders
A number of survey respondents personally commented on the use of technology for positive business and environmental outcomes:
—“Good data is the lifeblood of good decision-making. This is especially important for high-stakes, long-term business and environmental issues.” —Curtis Ravenel, Global Head of Sustainable Business & Finance, Bloomberg
—“There’s no question that our focus on environmental innovation and stewardship, along with our technological leadership, has been a catalyst for company growth and profitability, and has led to an increase in the number of companies that want to partner with us.” —Tom Linebarger, Chairman and CEO, Cummins, Inc.
—“At IKEA, we’re doing everything we can to embrace technology – innovation is a big opportunity for the business and the planet. Technology also stimulates corporate creativity, helps attract top talent and keeps us on the cutting-edge.” —Stefan Karlsson, Sustainability Compliance Manager, IKEA