Sustainability and technology are a match made in heaven

How can technology assist companies in making superior sustainable decisions?

By: Rouzbeh Amini

Whereas five years ago, sustainable transformation was a futuristic vision, it is now an urgent reality across numerous sectors. However, in practice, companies possess only about 30 to 40 percent of the data required for competent sustainability reporting, as research indicates. Not to mention having reliable data for making sustainable decisions. Expert Rouzbeh Amini explains why this needs to change swiftly.

Why is it crucial to unearth those missing data?

“Sustainable transformations are about making the right, enduring decisions. These can range from altering production processes to reduce waste to investing in renewable energy. Such decisions demand insightful and accurate data. Procuring this information in a reliable and thorough manner is laborious but incredibly vital. Only on the foundation of trustworthy data can companies make sound decisions. Unreliable data pose a risk to companies and to reporting in accordance with the stringent sustainability requirements, the CSRD. It's akin to a malfunctioning compass: the data misdirect you.”

How can technology be of assistance?

“Digital solutions and sustainability are a match made in heaven. The foundation for the transition to net-zero emissions lies in data collection from the value chain. Given the scale and complexity of the chains in most industries, digitalization is a prerequisite for gathering high-quality, reliable data. The era of data collection through simple Excel spreadsheets is over; the number of parameters is simply too vast. Digital solutions lay the groundwork for improved decisions and usage scenarios that enhance a company's sustainability. Consider the design of new circular business models, predictive analytics for more efficient resource utilization, and the enhancement of energy efficiency. Or, for instance, achieving reduced emissions or green computing for more sustainable growth in the IT sector. The possibilities are boundless.”

How does reliable data subsequently lead to an action plan?

“Here, artificial intelligence (AI) can play a role. AI enables CEOs and CFOs to integrate financial and non-financial data, thus improving their reporting capabilities and providing a stronger basis for decision-making. By regularly collecting reliable data, they gain a comprehensive overview of performance metrics, can automate the reporting process, and gain insights into future trends. Scenario models based on generative AI even allow for the analysis of the financial and non-financial impact of decisions. This aids companies in making smarter investment decisions—decisions that are also scalable for impact and sustainable value in the long term.”

How does EY help companies make better decisions?

“EY merges reporting expertise with strategic knowledge of businesses and their operating environments. We collaborate with our technology partners to create a solutions ecosystem. Thanks to our connections, we can offer companies dependable digital solutions. Thus, we are capable of advising enterprises on the use of digital solutions and automation for CSRD reporting, their roadmap to a net-zero future, and establishing a technological ecosystem that supports them in this endeavor. With data systems and tools that are scalable and can be applied throughout the entire organization. Industries can leverage technologies for sustainable energy production, sustainable materials, recycling, carbon capture, and sustainable mobility. However, without scalable and reliable digital solutions, such sustainability technologies do not necessarily lead to success in business operations. In my work, I thus contribute to better and more sustainable decision-making, which ultimately leads to a sustainable world. That's what makes it so gratifying.”