Posted by London, UK: Tech-enabled ESG became the new global benchmark, according to GlobalData. In the sphere of corporate responsibility, technology has become the global benchmark for addressing environmental, social, and governance (ESG) challenges.
Top tech companies, responsible for 2-3% of global emissions, are actively addressing climate concerns with tech-enabled ESG. Through innovative solutions and heightened efficiency, they not only reduce their environmental impact but also empower customers, emphasizing the pivotal role of tech-enabled ESG initiatives in shaping a sustainable future, reveals GlobalData, a leading data and analytics company.
“Technology is at the heart of business and consumer life. The more tech companies improve their ESG performance, the better for their customers, the environment, and society as a whole,” said Robert Pritchard, Principal Analyst – Enterprise Technology and Services, GlobalData.
Factors such as wars and increasing global logistical challenges have increased energy costs. However, the drive for efficiency is driven by economic as well as environmental factors.
“Tech companies continue to develop solutions to enable their customers to reduce their own emissions. For example, they can route their network traffic to reduce climate impact, or can recycle, reuse, and repurpose last-generation equipment and devices. This reduces strains on scarce resources, and can empower countries and individuals with technology that they otherwise could not access,” added Pritchard.
Further, “As we progress into 2024, further ESG challenges will be taken on. Artificial intelligence (AI) requires even more energy to power evolving applications, but at the same time is already being used to optimize electricity use in the latest generations of networks, thus offering net benefits,” commented Pritchard.
2024 will also see greater concentration on Scope 3 emissions (over which users/customers have no direct control) as they account for 60% to 90% of the total, according to Pritchard.
Leading tech companies are building emissions reporting into their contracts with suppliers, meaning that reducing greenhouse gases will move from being a ‘nice to have’ to an essential requirement of doing business.
This will also help to continue to converge ESG reporting with financial reporting, whilst integrating with leading business management software platforms.
“The climate crisis may have lost space in the headlines, but it remains the single most important long-term global challenge. Tech-enabled ESG solutions are making a substantial contribution to tackling that challenge,” concluded Pritchard.