How Digital Transformation Supports the ESG Agenda

The advance of digital technology has driven dramatic efficiencies and cost savings for companies.

While digital transformation can have clear economic benefits, there is increasing focus on how digital transformation can support the growing sustainability agenda within companies.

Digital technologies support operational improvements and drive efficiency throughout the value chain. Beyond increased efficiency, cutting-edge technology based on data analytics can provide greater visibility into operations, supply chains, and markets to boost business competitiveness while reducing carbon emissions.  

“We think that technology will be the linchpin that will enable asset-intensive industries the insight, efficiency and ingenuity to design and operate sustainable low carbon industrial facilities,” says Amish Sabharwal, EVP, Industrial Engineering Business Unit, AVEVA, quoted in a recent IX Network report.

“Futured-focused organizations are connecting their industrial data, inventing new digital processes and empowering their digital workforce to identify key opportunities to reduce emissions across their value chains.” 

There are different ways that innovative applications of Industry 4.0 technologies are helping the industrial sector in ways that are both financially and environmentally beneficial. These technologies can include IIOT, equipment sensors and monitoring, data analytics, digital twins, artificial intelligence, and others.

Key areas of benefit include:

Reduce Raw Material Usage - Technology such as digital twins and artificial intelligence can help industrial companies simulate changes to processes or products to discover ways to reduce the inputs of critical natural resources and other materials. Further, improved data and analytics available to frontline workers can help them better optimize processes that impact resource use.  

Decrease Carbon Emissions –  Better monitoring and artificial intelligence can help optimize energy usage to decrease emissions.  Up to 20% of the reduction needed to hit net zero by 2050 goals could be delivered by quickly adopting digital technologies, according to analysis conducted by Accenture, in collaboration with the World Economic Forum. This was especially true in the energy, materials and mobility industries, according to the findings.

Mitigate Risk – Industrial companies often operate heavy machinery that can be significant source of emissions and resource use. Through IIOT monitoring and sensors, industrial companies can be alerted to problems before they become sources of failure or cause an environmental event.  Sensors on machines can also alert human operators to maintenance issues that may contribute to increase emissions.

In the coming weeks, as part of a focus on sustainable operations, Industrial Transformation Network will be looking at emerging and established digital technologies that companies are using to decrease emissions, improve energy efficiency, extend asset lifespan, enhance maintenance, and drive sustainable improvements throughout the business.