Sustainable Technology in Action: How Leaders Can Achieve ESG Outcomes

“Sustainable technology isn’t a single objective; it’s a framework of digital solutions that drives ESG outcomes. Make the most of it.” — Autumn Stanish, Gartner principal analyst

As organizations around the world work to address the urgent challenges of climate change and sustainability, sustainable technology has emerged as a critical tool for achieving their goals.

According to Gartner, sustainable technology is not just a single solution or product, but a framework of digital solutions that can enable environmental, social, and governance (ESG) outcomes across the entire organization.

This framework encompasses three key areas: internal IT operations, enterprise operations, and customer operations.

By leveraging sustainable technology in these areas, organizations can reduce their environmental impact, improve their social responsibility, and drive innovation and business growth.

In this article, we will explore how organizations can think about sustainable technology and use it to drive positive impact in each of these areas.

What is Sustainable Technology?

When we talk about sustainable technology, we’re referring to two main types:

1. Technology that addresses sustainability and environmental issues directly.
2. Technology that has been created with a focus on sustainability.

Sustainable technology, also known as green tech or clean tech, refers to any technology that can be used to minimize the negative impact of human activity on the environment and promote sustainable practices.

Sustainable tech can come in many forms, including renewable energy solutions like solar and wind power, energy-efficient equipment such as LED lighting and smart thermostats, and sustainable transportation options like electric vehicles and bike-sharing programs.

Sustainable tech can also include green building design, sustainable packaging options, water conservation technologies, and sustainable farming technologies like hydroponics and precision agriculture.

In addition to reducing the environmental impact of human activity, sustainable tech can also help organizations save money, improve efficiency, and create new business opportunities.

Many organizations are increasingly focused on incorporating sustainable tech into their operations to support their sustainability goals and reduce their carbon footprint.

Sustainable Technology Options

Sustainable technology refers to any technology that can be used to minimize the negative impact of human activity on the environment and promote sustainable practices.

Here are some examples of sustainable technology options:

1. Renewable energy solutions: Renewable energy technologies like solar, wind, and hydropower can help organizations reduce their carbon footprint and dependence on non-renewable energy sources.
2. Energy-efficient equipment: Energy-efficient lighting, heating, cooling, and other equipment can help organizations reduce their energy consumption and lower their operating costs.
3. Sustainable transportation options: Sustainable transportation options like electric vehicles, bicycles, and public transportation can help reduce carbon emissions and promote more sustainable transportation practices.
4. Green building design: Green building design techniques, such as using sustainable materials and maximizing energy efficiency, can help reduce the environmental impact of buildings.
5. Water conservation technologies: Water-saving technologies like low-flow toilets and faucets, water-efficient landscaping, and rainwater harvesting can help organizations reduce their water consumption and promote sustainable water use.
6. Sustainable packaging: Sustainable packaging options like biodegradable and compostable materials can help reduce waste and promote sustainable business practices.
7. Sustainable farming technologies: Sustainable farming technologies like precision agriculture and hydroponics can help reduce water consumption, improve crop yields, and promote more sustainable farming practices.

Leaders Need to Think Bigger About Sustainable Technology According to Gartner

According to Gartner Principal Analyst Autumn Stanish, sustainable technology is crucial for developing new business models and tech-enabled products to better serve customers.

It’s clear that sustainable technology is the way of the future, and it’s time for businesses to start thinking beyond just their internal IT operations.

Did you know that by 2025, 50% of CIOs will have their performance metrics linked to the sustainability of the IT organization?

But we can’t just focus on the sustainability of internal IT operations, aka “sustainable IT”.

It’s important to broaden our thinking and consider how we can leverage technology to enable a wide range of sustainable outcomes.

At Gartner, they define sustainable technology as a framework of digital solutions that can enable environmental, social, and governance (ESG) outcomes for businesses and their customers.

This means that sustainable technology not only optimizes costs, energy performance, and asset utilization, but it also drives positive ESG outcomes like improving wellness and promoting responsible business practices.

3 Critical Areas Leaders Can Drive ESG Outcomes with Sustainable Technology

According to Gartner, there are three areas where sustainable tech can create opportunities: internal IT operations, enterprise operations, and customer operations.

1. Internal IT operations: To achieve sustainable IT goals, you need to select the right tools, hardware, and vendors that can deliver maximum output using the minimum viable resources. This means reducing greenhouse gas emissions and focusing on critical subjects like human rights, ethical sourcing, and supply chain transparency. There are a variety of solutions that can help, such as using robots for recycling and outsourcing IT operations to sustainable operators. The benefits of sustainable IT include improved financials and reduced carbon emissions and e-waste.
2. Enterprise operations. This can include things like providing transparency on sourcing and trade practices, improving energy and material efficiency, and promoting fair labor practices. To best support sustainable enterprise operations, identify and prioritize technology investments that align with your organization’s sustainability strategy.
3. Customer operations:  Sustainable technology can also help you deliver products and services that enable customers to meet their own sustainability goals. To do this, you need to understand your customers’ priorities and balance their desires, which can occasionally conflict with one another. For example, customers may want a sustainable product but are unwilling to compromise on quality and cost. It’s important to make it easy for customers to see how their engagement with your products and services contributes to their sustainability goals.

Example Sustainable Technology Innovations with Real KPIs

There are many powerful sustainable technology innovations with real KPI (Key Performance Indicator) examples. Here are a few examples:

1. Green building design: Sustainable building design practices can help reduce energy use, minimize waste, and lower carbon emissions. For example, the Bank of America Tower in New York City was designed with a variety of sustainable features, including high-efficiency lighting and HVAC systems, green roofs, and water-saving technologies. The building achieved a LEED Platinum rating and has achieved energy savings of 50% compared to typical office buildings.
2. Renewable energy: Renewable energy technologies like solar and wind power can help reduce reliance on fossil fuels and lower carbon emissions. For example, IKEA has invested heavily in renewable energy, with a goal of producing as much renewable energy as it consumes. They have installed solar panels on many of their stores and have built several wind farms, and they have achieved 90% renewable energy use in their operations.
3. Smart grid technologies: Smart grid technologies can help optimize energy use and reduce waste by balancing energy supply and demand. For example, Pacific Gas & Electric (PG&E) in California has implemented a smart grid system that allows them to better manage energy use across their network. They have reduced energy demand during peak hours by up to 20% and have saved customers more than $300 million in energy costs.
4. Sustainable transportation: Sustainable transportation technologies like electric vehicles and public transit can help reduce carbon emissions and improve air quality. For example, the city of Oslo, Norway has made a commitment to phase out all fossil fuel-powered vehicles from its streets by 2030. They have invested heavily in electric buses and have built a network of bicycle lanes and pedestrian zones to promote sustainable transportation.

Overall, there are many powerful sustainable technology innovations with real-world KPI examples, and these technologies can play a critical role in promoting sustainability and mitigating the impact of climate change.

How Leaders Can Leverage Sustainable Technology:  A Step-by-Step Guide

These are just a few examples of the many sustainable technology options available. The most effective sustainable technology solutions will depend on the specific needs and goals of each organization.

There are several steps that leaders can take to leverage sustainable tech. Here’s a step-by-step guide:

1. Evaluate the current state of technology: The first step is to assess the current state of technology within your organization. Determine which technologies are already in place, and how they are being used. Identify any gaps or areas where technology could be leveraged to support sustainability initiatives.
2. Set sustainability goals: Once you have a clear understanding of the current state of technology, set sustainability goals. Determine what you want to achieve and how technology can help you get there. Goals may include reducing energy consumption, minimizing waste, or improving supply chain efficiency.
3. Research sustainable technology options: Next, research sustainable technology options that can help you achieve your goals. This may include renewable energy solutions, energy-efficient equipment, or sustainable transportation options. Consider the costs and benefits of each option, as well as any potential barriers to implementation.
4. Develop an implementation plan: Once you have identified the sustainable technology options that are right for your organization, develop an implementation plan. Determine how you will acquire and install the technology, as well as how you will integrate it into your existing systems and processes.
5. Train employees: To ensure that the technology is used effectively, provide training to employees. This may include training on how to operate new equipment, how to use software to track sustainability metrics, or how to adopt new sustainable practices.
6. Monitor and measure progress: Finally, monitor and measure progress towards your sustainability goals. Use technology to track key metrics and identify areas where you can improve. This will help you to identify any issues that need to be addressed and make adjustments to your sustainability strategy as needed.

How Disney Leverages Sustainable Technology

I think Disney is a simple example to relate to, especially if you think about the magnitude of their theme parks.

Disney has made a number of commitments and taken action on sustainability, and they report on their progress through their annual Corporate Social Responsibility (CSR) report.

Here are some highlights of what Disney reports they are doing for sustainability:

1. Reducing greenhouse gas emissions: Disney has set a goal to reduce its net greenhouse gas emissions and has made progress towards this goal through a variety of initiatives, including using renewable energy, improving building efficiency, and transitioning to more fuel-efficient transportation.
2. Conserving water: Disney has implemented a number of water conservation initiatives across its operations, including using reclaimed water for irrigation, installing low-flow fixtures, and implementing leak detection programs.
3. Recyling and waste reduction: Disney has made progress in reducing waste across its operations through recycling, composting, and waste reduction programs. For example, they have eliminated plastic straws and stirrers at all their locations and have implemented a program to reduce single-use plastics in their operations.  Disney uses an innovative technology called the Grind2Energy system to convert food waste into renewable energy. The system uses a grinder to process food waste and then sends it to a digester, where it is converted into biogas that can be used to generate electricity.
4. Promoting sustainable sourcing: Disney has committed to sourcing materials and products that are produced in a sustainable and responsible manner, and they have established rigorous standards for suppliers to ensure compliance.
5. Green building design: Disney has implemented sustainable building design practices across their operations, which have helped to reduce waste and minimize their environmental footprint. For example, they use environmentally friendly materials in construction and design buildings to maximize energy efficiency.
6. Energy-efficient lighting: Disney has installed energy-efficient LED lighting across their parks and resorts, which has helped to reduce energy use and minimize waste.
7. Educating and engaging stakeholders: Disney has developed a number of programs and initiatives to educate and engage stakeholders on sustainability, including educational exhibits, public awareness campaigns, and employee engagement programs.

Overall, Disney has made significant progress in promoting sustainability across its operations and supply chain, and they continue to set ambitious goals for the future. You can find more information on their sustainability initiatives and progress in their annual CSR report, which is available on their website.

Act Now to Create Your Effective Sustainable Technology Portfolio

To create an effective sustainable tech portfolio, it’s important to prioritize technology investments based on the top material issues that your organization has identified as most important to its future success.

To get you started, here are a few trends that are likely to be important for your business and key stakeholders:

• Cloud Services: Cloud services can help achieve sustainability benefits within economic, environmental, and social systems. The elasticity of cloud service models allows organizations to use only what they need, increasing utilization of shared resources and reducing environmental impacts.
• Greenhouse Gas (GHG) Management Software: Greenhouse Gas management software can facilitate data collection, analytics, and reporting of past, present, and future emissions data across all three scopes (direct, indirect, and nonspecific emissions). These solutions enable enterprises to meet reporting obligations while also providing insights to drive action for improving emissions performance.
• Artificial Intelligence (AI): AI can help optimize operations and reduce carbon and environmental footprint while mitigating material risks. To make AI environmentally sustainable, techniques can be used to create and run models with the lowest possible carbon footprint without compromising accuracy.
• Supplier Sustainability Apps: Supplier sustainability applications can help companies collect and assess the ESG performance of suppliers.
• Blockchain: Supply chain blockchain can protect, verify, and trace transactions, such as ensuring ethical sourcing.

Ultimately, an effective sustainable technology portfolio will incorporate both well-established and leading-edge technologies. By investing in sustainable technology now, you can help your organization achieve its sustainability goals while also creating new opportunities for growth and success.

Sustainable Technology is the Future (and It’s Here Now)

Sustainable technology is a rapidly growing field with the potential to drive positive environmental, social, and economic outcomes.

By investing in sustainable technology and focusing on sustainable practices, businesses can reduce their environmental impact, cut costs, and build a reputation for social responsibility.

From renewable energy to green building design to smart grid technologies, there are many powerful sustainable technology innovations available today that can help organizations achieve their sustainability goals.

By working together to prioritize sustainability, we can create a more sustainable and equitable future for generations to come.

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