How digitalization can lead to faster decarbonization

When it comes to reducing global carbon emissions, many people believe that implementing large-scale changes and projects is the only way to have an impact. However, this is not always the case. Small changes can add up over time and have a tangible environmental impact. Digitalization projects are one of the most important ways for companies to reduce their carbon footprint. Switzerland is leading the way by setting a target to reduce its emissions by 50% and become climate-neutral emissions by 2050.¹ Given that digitalization can help reduce emissions while adding value to the economy over the long term, let’s look at some of the critical benefits of digitalization and how it can support decarbonization efforts.

 

Digitalization to reduce a company’s carbon footprint

One of the main benefits of digitalization is that it can help companies save energy and reduce emissions. Digital technologies have become increasingly prevalent in recent years, with many companies adopting a digital approach to operations and management. This shift to digitalization allows companies to streamline their processes and minimize waste, thereby reducing their overall carbon footprint.

In addition to improving energy efficiency, digitalization can help companies reduce their reliance on carbon-intensive materials and operations. For example, many companies now use renewable energy sources such as solar, hydroelectric, and wind power in their manufacturing processes, thereby minimizing the use of fossil fuels. Digital technologies can also play a key role in supporting sustainable supply chains by tracking products and helping companies buy inventory only when they need it. This way, they eliminate excess merchandise that could quickly lead to excess waste, especially if the items are perishable.

Sustainability first

Corporate social responsibility should be at the heart of all activities, but this is not always the case, mainly if the company has existed for many years. Moving toward sustainability can often be a challenge at first, and it isn’t easy to know where to start. But that’s where digitalization comes in. Ultimately, digitalization can be a powerful tool to accelerate decarbonization and can start with minor changes.

Let’s say you are about to order new business cards for an upcoming networking event or trade show. With sustainability in mind, you could opt for digital business cards with QR codes that direct people to it instead of wasting paper and increasing your carbon footprint. These small acts of decarbonization will play a significant role in your company’s overall move toward sustainability. And you also encourage others to follow in your footsteps. Imagine if 10% of European companies did the same! That’s an incredible number of trees that could be saved! 27 million business cards are printed every day. Reducing the need for paper business cards is an effective way to fight deforestation and help reduce carbon emissions.

This way, the next time a company has to make an important decision, it can consider the impact on sustainable development before the potential benefits.

Digitalization for decarbonization

So, ultimately, digitalization is an incredibly powerful tool to support decarbonization, whether it’s reducing your company’s carbon footprint or encouraging broader adoption of sustainable practices. Whether you own a small business or run a large corporation, there are many ways to leverage digital technologies to help the environment and support a faster transition to a more sustainable economy. By putting sustainability first, you can set an example for others and make a difference on a global scale.

 

Sources

[1] Teufel, B., & Sprus, C. M. (2020, October 29). How digitalization acts as a driver of decarbonization. EY. Retrieved November 28, 2022, from https://www.ey.com/en_ch/decarbonization/how-digitization-acts-as-a-driver-of-decarbonization