Tech and Sustainability: Forging a Future Together

Environmental sustainability must be prioritized, with technology playing a crucial role. The synergy between these realms is essential for reducing carbon footprints and enhancing ESG reporting, driving positive impact. As we navigate our interconnected world, the harmony between sustainability and technology will continue to shape our future.

As a kid in the 70s living in Bangalore, I remember the city vividly for its charming and serene atmosphere. Our family car was often the only vehicle on the road for miles, even though many neighbours owned cars. People preferred walking, even for relatively long distances. We walked everywhere, enjoying the sprawling parks that earned Bangalore its title as the Garden City. For several decades, this unhurried pace of life persisted. Sustainability was merely a word in the dictionary, an abstract concept that held little significance in our day-to-day lives.

Then, rapid and profound changes started reshaping the landscape and introducing new dynamics into our daily lives. The Liberalization, Privatization, and Globalization (LPG) Reforms in 1991, marked a significant shift in India’s economic policy. The late 1990s and early 2000s saw the rapid expansion of internet connectivity across India. The proliferation of smartphones and mobile internet in the 2010s further accelerated India’s digital transformation. Various government initiatives such as “Make in India,” “Digital India,” and “Startup India,” have played a crucial role in attracting foreign investment and fostering a startup ecosystem.

Many companies are implementing measures to align with sustainability goals, such as optimizing data centers to cut Scope 2 emissions, adopting eco-friendly manufacturing to reduce Scope 1 emissions, and using sustainable materials in hardware production to lower Scope 3 emissions throughout the supply chain.

Today, Bangalore, like many cities around the world, has transformed into a bustling hub of technological innovation. Not only it is home to many large multinational companies but is also a global hub for startups. This shift brought great benefits—enhanced connectivity, improved access to information, and fuelled economic growth. However, it also presented new challenges, particularly in terms of environmental sustainability, a phenomenon most cities experiencing exponential growth have faced.

Technology Integration with Sustainability

The synergy between technology and sustainability is pivotal in addressing global environmental challenges.

Technology plays a crucial role in reducing greenhouse gas (GHG) emissions and minimizing the carbon footprint. For instance, advancements in renewable energy technologies, such as solar and wind power, have significantly lowered the dependency on fossil fuels. Smart grid technologies enhance the efficiency of energy distribution, reducing wastage and ensuring a stable supply.

Moreover, tech companies are increasingly aware of their environmental responsibilities. Many are implementing measures to ensure their operations adhere to sustainability goals. This includes optimizing data centers to reduce Scope 2 emissions from purchased electricity, adopting eco-friendly manufacturing processes to minimize Scope 1 emissions from direct operations, and promoting the use of sustainable materials in hardware production to reduce Scope 3 emissions throughout the supply chain.

The role of technology extends beyond operational efficiencies. It is instrumental in gathering and analyzing data for ESG reporting. Advanced analytics and artificial intelligence (AI) enable organizations to monitor their environmental impact in real time, providing insights that drive informed decision-making. Integrating data from diverse sources helps companies build a comprehensive view of their sustainability performance, ensuring they meet regulatory requirements and align with stakeholder expectations.

It has become imperative for firms to understand ESG standards to comply with them. It is also paramount for firms to hire people who have Sustainability as a mainstream skill (for every job), rather than as a specialization for a small segment of employees in a company.

The Evolution of ESG Standards

Environmental, Social, and Governance (ESG) criteria emerged as a crucial framework for assessing a company’s commitment to sustainable practices. ESG standards provided a structured approach to evaluating how businesses managed their impact on the environment, their relationships with stakeholders, and their governance structures. Milestones in the journey of ESG standards include the establishment of the United Nations’ Principles for Responsible Investment (PRI) in 2006 and the launch of the Task Force on Climate-related Financial Disclosures (TCFD) in 2015.

India has made significant strides in embracing ESG principles. The Securities and Exchange Board of India (SEBI) mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed companies by market capitalization starting from the financial year 2022-23.

India has made significant strides in embracing ESG principles. The Securities and Exchange Board of India (SEBI) mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed companies by market capitalization starting from the financial year 2022-23. This move underscores the growing recognition of the importance of sustainability in corporate governance and the need for transparency in ESG reporting.

Education for Sustainability and Green Jobs

India’s focus on education for sustainability is crucial for preparing the workforce for green jobs. Integrating sustainability into educational curricula across disciplines ensures that future professionals are equipped with the knowledge and skills to tackle environmental challenges as part of any job role. Green jobs, which contribute to preserving or restoring the environment, are essential for sustainable development.

Emphasizing sustainability in education will foster a generation that prioritizes ecological balance and innovative solutions.

IBM’s Commitment to Sustainability

IBM has been at the forefront of leveraging technology for ESG reporting, sustainability projects, and promoting as well as providing education 

on Sustainability.

According to research by IBM and Morning Consult, 71% of business leaders anticipate prioritizing sustainability skills in hiring over the next two years, with 92% planning to invest in sustainability training within the next year. In November 2023, IBM SkillsBuild launched a new sustainability curriculum, addressing the growing skills gap in sustainability.

IBM’s Sustainability Accelerator is a pro bono social impact program that applies IBM technologies, such as hybrid cloud and AI, to enhance and scale solutions for nonprofit and government organizations. This initiative is particularly focused on helping populations vulnerable to environmental threats, demonstrating IBM’s commitment to driving positive change through technological innovation.

IBM’s Envizi platform is a powerful tool for better data collection and reporting. It enables organizations to integrate data from various sources, providing a holistic view of their sustainability performance. This integration is critical for accurate ESG reporting and informed decision-making. IBM’s Maximo application suite allows businesses to manage their assets more efficiently, predict and prevent breakdown and maintain compliance with safety and regulatory guidelines, all by gathering data from the right sources.

Conclusion

Environmental sustainability will have to be regarded as a first-class citizen, and technology will play a key role. From reducing carbon footprints to enhancing ESG reporting, the synergy between these two realms is pivotal for driving positiveimpact. As we navigate this interconnected world, the harmony between sustainability and technology will continue to play a crucial role in shaping our future. 

By Mona Bharadwaj

Bharadwaj is ESG Leader- IBM India-CSR.

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