Unlike their better-known cousin, green bonds, which fund "green" projects, SLL proceeds can be used for general corporate purposes or growth. Talk to us today to learn more. Trust: Build systems that protect privacy and are fair, transparent, robust and accessible. The circular economy is based on the principles of designing for longevity and efficiency while minimizing waste and pollution. Despite the tech industry's positive reputation for sustainability, only 26% of tech companies have significantly incorporated ESG into their strategic planning, according to a recent CEO survey. The circular economy model is an economic framework that aims to minimize waste and maximize the efficient use of resources. Sustainability has become a priority for business leaders who are facing rising calls for change from consumers, investors, regulators and their own employees. Education and awareness campaigns can also be powerful tools, especially considering that many electronic devices contain valuable and limited resources. Here are three ways to help make that happen. Today, digital technologies are being used to measure and track sustainability progress, optimize the use of resources, reduce greenhouse gas emissions, and make possible a more circular economy. Accelerate innovation through working beyond the boundaries of one company. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. Bulb. Sustainability Value Promise Together with our partners, we help our clients reinvent their businesses at scale, creating business value and sustainable impact for all stakeholders. This is an opportunity the company seized to teach consumers to conserve electricity. 3 Ways You Can Bring Sustainability to Your Workplace, These Four Things If They Want to Succeed, Mark Zuckerberg and Elon Musk Continue Feud as Meta Launches 'Threads'. Top 10 big tech companies creating a more sustainable world The introduction of well-intentioned AI can trigger public alarm about bias involving race and gender. A lot of change can be driven by education. These practices constitute Sustainability DNA and strengthen stakeholder-centricity by encouraging human connections, collective intelligence and accountability at all levels. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 1000+ markets in 190+ countries & territories, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. In February, Morningstar stripped ESG labels (paywall) from over 1,000 European-based funds with over $1 trillion in investments due to concerns they weren't meeting adequate ESG standards. READ MORE Embedding sustainability into the core business Leaders have long understood that what we measure shapes what we do. Employees are rewarded for meeting sustainability targets, such as reducing paper usage or planting flowers in a vacant lot. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. Companies can extend the lifespan of their products and foster customer loyalty simultaneously by embracing repairability and sustainability. 9 Sustainability-Driven Tech Companies You Need to Watch Although overcoming engrained habits is hard and social conformity works to preserve old patterns of conduct, we have defined a four-part framework that companies can use to nudge customer behavior toward sustainable choices and attract mainstream adoption of green options. A BCG survey confirms that most consumers are ready to embrace sustainable products. What Tech Leaders Can Do About Data's Sustainability Problem You may opt-out by. Sustainability has become a priority for business leaders who face rising calls for change from consumers, investors, regulators and their own employees. Delivering on the promise of sustainable technology will require CIOs to take a seat at the sustainability table. The management buyout is backed by the Baupost Group, a 41-year-old hedge fund based in Boston led by billionaire Seth Klarman. (See Exhibit 3.) This text provides general information. Amidst increasing environmental concerns, tech companies globally need to start prioritizing sustainable practices. Every respondent in the survey of 560 companies with over $1 billion in revenue said technology was either 'important' or 'very important' for achieving their sustainability targets. Sustainability drives new value and growth, influencing everything organizations do. companies Not only does this encourage the recycling of devices, but it also promotes brand loyalty and customer satisfaction. They can also trade in their used IT equipment (of any brand and quantity) for credit towards new HP products. Companies should use technology sustainably to drive growth while also delivering the environmental and social progress that their stakeholders desire. We have always been open to partnering with technology pioneers from around the world to ensure we operate in the most efficient, safe, cost, and sustainable way The 10 Sustainable Green Tech Companies, 2021 - Mirror Review At its core, sustainability entails doing business without negatively impacting the world around us. This drives our work in sustainability, from our climate commitments to partnering with our customers and partners on co-designing new solutions. Companies that take the lead on environmental, social and governance (ESG) issues also outperform financially, generating up to, Digital Engineering and Manufacturing Jobs, Infographic: Uniting technology and sustainability, UN Global CompactAccenture CEO Study on Sustainability, Do Not Sell/Share My Personal Information (for CA). Climeworks, the Swiss company developing technology to directly and permanently capture CO 2 from the air, was started in 2009 with a small laboratory device and a bit of stubbornness, CEO and cofounder Jan Wurzbacher told us. They are free of environmental pollutants such as polyvinyl chloride, phthalates, beryllium and brominated flame retardants. Read more insights from BCGs teams of experts. ESG fund inflows hit milestone highs in 2021 (registration required), with highly rated stocks registering record gains. Samsung has also made three green mobile phonesReplenish, Reclaim, and Blue Earthwhich are made from corn starch bioplastic, and have energy-efficient chargers and fully recyclable packaging. When decisions and creativity are limited by homogeneity, it impacts innovation and growth. Samsung. Do I qualify? Like Gen Zs Takeover Of Twitter: Creators React To Threads, Metas New Social App, Three Prerequisites For The Successful Implementation Of AIOps, A Safe Chat: Strategies For Secure Deployment Of AI In Coding, What Companies Should Know About The Rise Of Self-Service B2B Sales, How A Magazine Claiming To Empower Female Founders Was Birthed By A Controversial Church, How Manufacturers Can Thrive With Digital Transformation. Weve specifically adopted a framework we call better science, which is about stretching the limits of what's physically possible and designing products that can stand the test of time. For example, there is a practical need to create sturdy drinking straws from biodegradable materials such as sugarcane to replace nonfunctional paper straws. In contrast to the conventional linear economy, circular economy promotes a closed-loop system where materials and products are continuously reused, repaired, remanufactured, or recycled to create new value. Related: The U.S. Has a Huge E-Waste Problem. facts. Companies can help reduce e-waste and minimize their environmental impact by implementing effective strategies, such as trade-in programs or recycling events that incentivize consumers to recycle their old devices. In doing so, were driving value for our clients and making the world a better placefor everyone. , a nonprofit group of eco-conscious consumers, businesses and conservation organizations. All rights reserved. Opinions expressed are those of the author. Technology is key to solving the worlds most daunting challenges, but it must be used in a way that helps maximize the benefits while minimizing its harmful side-effects. Creating lasting value across the enterprise with technology innovation. With the right mix of technology and design philosophy, your products and services can enable environmental benefits. Consequently, hardware products, such as laptops, tablets, and smartphones, are often at the top of the list in both cost and volume. The desire for social conformity is, not surprisingly, another important driver of behavior. Thats the over-riding conclusion from our latest sustainable technology survey. Their strong support of regulations will reinforce investor confidence in ESGand their own companies. Failing to reach them may result in higher interest expenses or penalties. ByLa Turquier,Kanika Sanghi,Sarah Lichtblau,Julia Dhar,Fadi Makki, andLauren Taylor. Members of the Climate Savers Computing Initiative include Dell, HP, IBM, Lenovo and Microsoft. In some instances, innovation and big changes may be necessary, but in other cases more subtle nudges can be just as effective: a well-timed text message or well-phrased question may suffice. Materials like lead, silver, copper and gold are essential for manufacturing new technology, making recycling even more attractive. Related: 3 Ways You Can Bring Sustainability to Your Workplace, Entrepreneur Leadership Network Contributor. Corporate leaders are increasingly concerned about environmental issues; 80% say they've been personally impacted by climate change events. 84% of companies plan to increase investment in sustainability by the end of 2022. This can translate into an 11% jump in their ESG ranking. Join industry collaborations, alliances and advocacy groups focused on eco-friendly technology. 3. Companies can weave tailored ESG commitments into financial planning and incentivize progress toward concrete goals. Just as the digital revolution transformed how people live and work, so too will the move toward sustainability. Thinking about the sustainability of your IT infrastructure - to what extent do you agree with each of the following? A Majority of Workers Despise Annoying Corporate Buzzwords. , a solar-powered laptop that doesnt need electrical charging. The SEC has also moved to create climate disclosure rules requiring more robust climate risk reporting from companies. In leadership, 83.3% of U.S. tech executives were white, and only 32% of directors were women. 3 Ways Tech Companies Can Integrate Sustainability Into WebAt Microsoft, we have a dedicated sustainability science team whose mission is to ensure that our sustainability work is grounded in the best available science. Tech Companies The information and communications technology (ICT) sector produced only 1.5% of CO2 in 2007, before rising to 4% today and potentially 14% by 2040. REGENESIS: Pioneer in the Environmental Remediation Industry The potential threats to the environment in the 21st century are One of the key benefits of the implementation of a circular economy model is the reduction in waste. We identified eight common barriers and found that these barriers and the most effective ways to overcome them can vary by industry. These old mobile phones are dismantled and their components are recycled into other products. Sustainability in technology can be defined in a few ways: The goals of the group are to save $5.5 billion in energy costs and to reduce greenhouse gas (GHG) emissions by 54 million tons per year. Even against the backdrop of 2022's broad market downturn, funds have better weathered the volatility than their non-ESG counterparts. It builds long-term loyalty as you listen and help support their business needs. But the time has come for the industry to more deeply embed environmental, social and governance (ESG) principles into their businesses. What additional benefits do companies see from leveraging sustainable finance? This allows us to reduce e-waste and energy consumption. New Guide by CMO Sustainability Accelerator and BCG Highlights Ways to Link Sustainability to Broader Related Needs and Remove Barriers to Growth for Customers for Whom Sustainability is a Concern, but Not a Primary Driver. Get quick analyses with our professional research service. Through a massive Internet campaign, Nokia informed consumers about Take-back, its e-waste reduction program. (See Exhibit 4. Web84% of companies plan to increase investment in sustainability by the end of 2022. data than referenced in the text. 31% rise in demand for the Geotab EV Suitability Assessment. This ensures customers know they're being heard. 2. Apple makes history as first $3 trillion company amid tech stock Sustainability which are made from corn starch bioplastic, and have energy-efficient chargers and fully recyclable packaging. ), Differences by geography further complicate the calculus. Bring new solution sets to the lack of diversity problem. Its also critical to address the environmental and social impacts of the technology itself. (See Exhibit 6.) How The Tech Industry Can Shape ESG 2.0 - Forbes On the basis of our original global research, we have identified eight key barriers to sustainable choices that span industries and markets. These little nudges can go a long way to closing the say-do gap. They can also trade in their used IT equipment (of any brand and quantity) for credit towards new HP products. Governance: Make ESG the focus of technology, not an afterthought. In addition, Intel gives bonuses to employees based on their environmental performance. Remote work could also make technology roles more sustainable for women. Copyright 2023 Entrepreneur Media, Inc. All rights reserved. We are happy to help. The corporate focus on environmental, social and governance (ESG) issues has become nearly universal as the world works toward net-zero carbon goals. You can unsubscribe at any time using the link in our emails. BCG X disrupts the present and creates the future by building bold new tech products, services, and businesses. Customers can send their used HP equipment (printer cartridges, servers, storage networking products, etc.) In 2022, the global secondary smartphone market saw growth of 5% year-over-year, with refurbished iPhone sales growing by 16%. To achieve their sustainability goals, companies must overcome eight common barriers to adoption in order to drive green choices into the mainstream. In 2007, Google and Intel founded the Climate Savers Computing Initiative, a nonprofit group of eco-conscious consumers, businesses and conservation organizations. back to the company for recycling. Sustainability Its critical to understand that encouraging more sustainable choices doesnt require a grand marketing campaign or an enormous budget. The path to 360 value starts herefeaturing our most provocative thinking, extensive research and compelling stories of shared success. The goal of these technologies is to drastically reduce environmental and ecological risks and to create a sustainable product. And because ESG performance has become an imperative for compliance as well as business performance, mapping a clear route and measuring the business impact of sustainability is key. Queen Latifah Says Female Leaders Must Do. WebTechnology is a vital enabler of sustainability - from accelerating Net zero transitions to building more sustainable value chains. FirstCarbon Solutions (FCS) offers cost-effective sustainability management solutions, as well as guidance on industry best practices. Sustainability and the drive to carbon neutrality are too important to ignore. And the current lack of standardization around reporting hinders investors from making apples-to-apples comparisons. For example, the issue of convenience is a major barrier in cars, some of it perceived and some real. Today the limited availability of charging stations is one key constraint on EV adoption, but another is the tendency of some customers to overestimate how far they typically drive. Here's what's needed now. Not only do sustainable organizations attract quality employees and sustainability-focused customers, but they also benefit financially. As the industry known for "thinking different" and innovating our future, technology has been a long-time leader in corporate America's embrace of sustainability. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. based innovative tech startups fixing climate change Digging even deeper into the data for beverages, we found a pervasive social and psychological barrier across countries and industries. Real change will happen only when sustainable options win adoption by mainstream customers and not just by a niche subset of purchasers. What is the World Economic Forum doing about the Fourth Industrial Revolution? There are efforts under way to promote repair and re-use of consumer technology products, but its not just about household e-waste. Expertise from Forbes Councils members, operated under license. Leaders have long understood that what we measure shapes what we do. A recent Accenture survey found that relatively few stakeholders have full faith in the sustainability promises that leadership teams make. Stakeholder capitalism - what is it, and how can it help the Middle East and North Africa? Its also critical to address the environmental and social impacts of the technology itself. The pandemic-driven shift to remote work has made recruiting talent from outside the major tech hubs more viable. For tech companies, commiting to sustainability can be more than working on energy efficiency and e-waste. Head of Technology Banking at Bank of the West / BNP Paribas, overseeing the delivery of financial services to U.S. technology companies. There are now powerful financial instruments the industry can adopt or work toward to change the status quo. But many important differences exist between developing markets (where, for example, availability is a top-two barrier) and developed markets, (where the social psychological barrier is a top-two problem). Consider how you can build your products to Technology is key to enabling a more sustainable business and planet. , a group of ICT businesses, nongovernmental organizations (NGOs), consumers and other stakeholders that aim to advance sustainable economic growth through technology-enabled energy efficiency and clean energy innovation. liability for the information given being complete or correct. Technology is a vital enabler of sustainability - from accelerating Net zero transitions to building more sustainable value chains. The Forum's Community of Chief Sustainability Leaders brings together over 90 business executives from top global companies to gain insights on the nature and climate agenda alongside its impact on business. The tech sector is responsible for 2 to 3 per cent of global greenhouse gas emissions. Sustainability Insights | Accenture How Technology Helps Sustainability Initiatives Thrive | BCG Two reasons: ESG is at a critical inflection point due to 2022's fast-evolving regulatory landscape, the momentous shift toward remote and hybrid work and the maturing of sustainable finance. Dells packaging has become more environmentally-friendly. With technological advancements continuing to happen at an astonishing rate, it is becoming increasingly important for tech companies to take responsibility for the lifecycle of their products. As the focus on the "S" of ESG sharpens, corporate sustainability leaders are embracing diversity and inclusion reporting. A big benefit of the technology ecoadvantage mindset is that companies can set a roadmap for new tech adoption that will speed the journey to sustainability by How companies can use digital and AI to win | McKinsey Sustainable Companies How to distribute a COVID-19 vaccine and build public trust, Here are 3 main causes of wildfires, and 3 ways to prevent them, is affecting economies, industries and global issues, with our crowdsourced digital platform to deliver impact at scale. Sustainability ensures business continuity by conserving resources. Through a massive Internet campaign, Nokia informed consumers about Take-back, its e-waste reduction program. In contrast, awareness is a significant issue in beverages and skin care products. Nudging Customer Behavior Toward Sustainable Choices | BCG A sustainable transport tech company engineering firm Sunswap based in London develops hardware and software to accelerate the decarbonisation of transport refrigeration.