The ever-changing business landscape must be altered once again, but this time, the concern is not profit. The main issue surrounding companies is their high carbon footprint, which includes information on energy consumption in the company’s activities regarding manufacturing and shipping. Considering how the business landscape exploded after being industrialised, global warnings have amplified since 1998, and we’re only now waking up to see the disastrous results.
The most apparent effects of climate change are hotter temperatures globally, severe storms and extreme drought that impact the supply chain. Consequently, poverty, displacement and hunger are prominent repercussions of a never-ending toxic cycle. Unfortunately, the slow progress of international companies in lowering their carbon footprint sets the world on fire.
However, major shifts in how business is made are introduced through technology. This is the start of the eco-digital era.
Defining eco-digital processes
The eco-digital business era is in its early stages, but it’s a good start on shaping sustainable projects. The transition from traditional commerce to a sustainable and high-tech economy is a massive breakthrough, and we expect it to impact the world in a few years.
Investing in sustainability and technology can be approached in numerous ways, depending on the area. Australia has a Sustainable Finance Strategy based on transparency, system capabilities and government engagement, while Europe has the Green Deal Investment Plan that aims for a green transition.
Besides settled systems from the government, companies can implement different practices to decrease their carbon footprint, from identifying cost-saving processes to completely digitalizing themselves.
Climate Tech and business investments
Climate Tech comprises a vast array of sustainable solutions and is part of the eco-digital transformation. It includes decarbonization and energy transition goals that reduce emissions and helps adapt to new business models.
Climate Tech can be improvised depending on the industry. For instance, food and agriculture struggle with pest management, alternative proteins, food waste, and loss. Still, it could manage some of these issues through crop tracking, non-toxic fertilizers, and recycling with Miltek Australia.
The climate technology industry is on the rise, as plenty of jobs are available. Environmental engineers, design engineers, and computer vision engineers are demanded to be part of the change to sustainability.
Sustainability investments
Besides approaching technology and green actions, companies can also invest in sustainability by supporting other projects in reaching their green goals. Due to the growing awareness of environmental issues, businesses can direct capital towards organizations that promote a circular economy and contribute to an improved impact on the planet and the end consumer.
There are plenty of sustainable investments fit for different types of businesses, such as the following:
- Green bonds are issued by corporations or governments to finance projects handling renewable energy and energy-efficiency programs;
- Social bonds are focused on positive social outcomes, like affordable housing or healthcare, and offer fixed-income streaming for companies;
- Impact investing has the goal of generating measurable impacts from projects addressing certain sustainability challenges;
Decarbonization as a business
Another essential component of eco-digitality is decarbonisation, the massive process of reducing the amount of CO2 in the atmosphere, which can be achieved by leveraging low-carbon energy resources. The Paris Agreement has already settled a goal to limit global warming, but without companies’ efforts, this might not be easy to adopt.
Decarbonization improves cost-effectiveness since companies gain market share and finance opportunities. If they also launch net-zero offerings, green businesses develop a value-based pricing strategy and secure the demand for such offerings.
Ideally, decarbonization is done by seeking alternative energy sources based on green electricity.
Some of the most used options include the following:
- Biomass reduces waste and is carbon neutral;
- Geothermal energy is considerably powerful;
- Hydrogen Energy leads to fewer pollutants;
- Marine energy takes advantage of ocean waves and tides;
- Active solar heating leverages solar energy to heat liquid or air;
The importance of electric vehicles
Burning fuel for powering vehicles significantly affects the environment, especially when discussing gasoline and diesel options. One gallon of gasoline produces about 8,887 grams of CO2 emissions, while diesel fuel is responsible for 10,180 grams of CO2. Hence, tons of CO2 are emitted by typical passenger vehicles.
The current solution for lowering these stats is switching from traditional to green vehicles that use electric motors and batteries instead of gasoline tanks so they don’t contribute to tailpipe emissions. Indeed, the price of these vehicles isn’t affordable for any type of customer, and charging stations are still not frequent in towns, but this should change in a few years.
But besides the impact on individuals, businesses could change the course of things by leveraging electric vehicles for transportation, considering this industry is one of the biggest contributors to climate change.
Being green means being aware
One of the most significant assumptions businesses make when it comes to becoming green is that the costs and effort are not worth it in terms of profit. However, all it takes for companies to change their operations is to become aware of their waste and resources and seek opportunities for development.
Involving the entire team in approaching sustainability is necessary to pinpoint the weak factors that affect your company, such as not having a waste management plan or not approaching renewable energy that lowers costs and carbon footprint. That’s why social media should be leveraged more concerning sustainability awareness and mitigating the risks of overheating the planet through massive manufacturing and inefficient transportation.
Ultimately, being a sustainable business is a matter of social involvement because the end consumer will be affected by the drought, high temperatures and extreme weather, which is why the circular economy project would be ideal for change.
Final considerations
The eco-digital era is on the brink of extinction with the help of technology and talented leaders. It comprises high-tech solutions integrated into traditional business models to reach sustainability goals and benefit customers. Eco-digital companies are competitive and can seek improvement by overcoming sourcing challenges but also address other issues regarding waste.