Part 4: Sustainable futures

Sustainable futures

With sustainability high up the boardroom agenda, many companies are realigning their technology strategy to reduce emissions and lessen their impact on the environment. A major driver behind sustainability’s increasing importance is ESG reporting becoming mandatory under new requirements from the International Sustainability Standards Board (ISSB), the European Financial Reporting Advisory Group (EFRAG) and the US Securities and Exchange Commission (SEC). More requirements are set to be introduced in 2025, so organizations have 2024 to prepare their teams as ESG reporting evolves. Our research revealed that 73% of executives felt that their organizations prioritize sustainability as part of their technology strategy. The US led the way in this area, with 82% agreeing, followed by the UK on 76% and Germany on 74%.

Executives were also curious to learn more about this area, with 32% saying they would like to learn more about technology’s role in environment and sustainability strategies in the future. Sustainability joined cyber and AI to round out the top three priorities for the boardroom, with understanding and improving technology’s role in environment and sustainability strategies sitting third on the boardroom list.

“Tech and sustainability might seem like strange bedfellows, but they’re very closely linked. AI and technology-driven approaches can help organizations use resources more efficiently, reduce waste, optimize investments and maximize energy efficiency. Digital technologies, such as non-financial reporting software, can help to collect, analyze and increase insight into a company’s ESG approach.”

Trey Hanley, Partner, Infor

What we're hearing…

“The survey results bring to light the balance required when tackling innovation, balancing this with security and also considering environmental impact. Capitalizing on innovations such as AI has consequences - on social responsibility (ethics, jobs) and the environment as the computing required is huge. Consequences need to be considered in a responsible way.”

Georgina Owens, CTO, William Hill

“Sustainability is another area where technology is playing an increasingly significant role. A large majority of executives acknowledge the integration of sustainability goals into their technology strategies, reflecting a shift towards more environmentally and socially responsible business practices. However, there is a noted discrepancy in how sustainability priorities are communicated and understood across different levels of leadership, highlighting the need for clearer alignment and engagement.”

Prof Alexeis Garcia Perez

Professor of Digital Business and Society, Aston Business School, Aston University