Embracing sustainability has not only a moral imperative but has become a strategic business decision for the modern business.
While sustainability can lead to positive impacts on the environment, society, and a company’s bottom line, it is also vital in enhancing an organisation’s reputation and competitiveness in an increasingly sustainability-conscious world.
According to the World Economic Forum, companies that invest in sustainability generally find that improved resilience, better operational performance, and business success follow.
Thus, it is vitally important for modern businesses to be sustainable as they also embark on their digital transformation journeys.
This is mainly because, increasingly, there is pressure from different stakeholders for companies to embrace sustainable practices, as the world of business undergoes radical changes.
As an example, in this digital age, tech-savvy, consumers are increasingly making purchasing decisions based on a company’s sustainability practices.
Thus, a positive reputation for sustainability can enhance a brand’s image and lead to increased customer loyalty and market share.
Additionally, many governments and organisations are now requiring sustainability certifications or compliance with environmental standards for market access. This means by prioritising sustainability, businesses can access new markets and maintain existing ones.
Also, many investors are incorporating environmental, social, and governance (ESG) criteria into their decision-making processes, which results in businesses with strong sustainability practices usually having better access to capital and a lower cost of capital.
Sustainability practices help ensure the long-term viability and success of a business. By reducing resource consumption, minimising waste, and managing environmental impact, businesses can lower operational costs and maintain profitability in the face of resource scarcity and regulatory changes.
Cheryl-Jane Kujenga, chief financial officer at BCX, points out that as the world continues to address pressing environmental and social challenges, integrating sustainability into business operations is increasingly becoming a necessity rather than an option.
“BCX is committed to doing business in a manner that ensures long-term sustainability for the benefit of South Africa’s many cultures and communities, as well as our stakeholders. For us, sustainability is a continuous journey and requires a multidisciplinary approach,” says Kujenga.
By adopting sustainable practices, organisations can also mitigate risks associated with environmental and social issues. For Kujenga, companies that fail to address sustainability concerns may face reputational damage, legal liabilities, and supply chain disruptions due to environmental disasters, social conflicts, or changing regulations.
Amid the rise of sustainable businesses, digital transformation also supports businesses in making sustainable investment decisions, and building and developing ESG data sets methodically.
Digital transformation and sustainability are interlinked in numerous ways. Digital technologies provide the tools and data needed to monitor, analyse, and improve sustainability efforts across various aspects of a business, from energy efficiency to supply chain management.
Moreover, sustainability goals often drive innovation in digital technologies, making them more environmentally friendly and resource-efficient.
Kujenga points out that digital transformation enables companies to collect and analyse large volumes of data from various sources, including sensors, Internet of Things (IoT) devices, and customer interactions.
“This data can provide valuable insights into resource consumption, emissions, and other sustainability-related metrics. Including, advanced analytics tools can help identify areas where efficiency improvements can be made, reducing waste and resource consumption,” adds Kujenga.
Another area where digital technologies come in handy regarding sustainability is energy efficiency. This is quite significant, especially in South Africa, a country facing acute energy shortages.
With no end in sight for load-shedding woes in South Africa, Kujenga is of the view that digital transformation can facilitate the integration of renewable energy sources, such as solar and wind power, into a company’s energy mix.
Digital tools can help companies stay informed about evolving environmental regulations and ensure compliance.
This is mainly because automated reporting systems can streamline the process of tracking and reporting on sustainability metrics.
“In summary, digital transformation empowers companies to gather and leverage data, automate processes, and optimise operations in ways that support sustainability goals. By harnessing the power of technology, companies can reduce their environmental footprint, improve resource efficiency, and contribute to a more sustainable future,” Kujenga concludes.
