Achieve Your Sustainability Goals with A Flexible Data-Driven Sustainability Framework

By Rene Bostic posted Thu March 30, 2023 10:23 AM

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By Rene Bostic, Vice President, IBM Sustainability Software Technical Sales.

Achieving company sustainability goals can take time and effort. Government regulations, disclosure requirements, and stakeholder demands may compound the issue. An IBM Institute for Business Value (IBV) report titled Sustainability as a Transformation Catalyst states, “Only 35% of companies have acted on their sustainability strategy, and only 37% have aligned sustainability objectives with their business strategies.” So, how do companies accelerate Sustainability initiatives? The most progressive companies align their business plans with the United Nation’s Sustainable Development Goals (SDGs). Parallel to the C-Suite approving the most critical goals of the business, Sustainability Executives also research how technology can accelerate the adoption of the SDGs.

A business that seeks to differentiate itself requires a flexible data-driven Sustainability framework that provides a straightforward blueprint with a systematic approach. In determining how technology aids in the achievement of the SDGs, Sustainability Executives must be prescriptive. For example, technology may more readily address the SDGs that map to (1) Climate & Energy, (2) Circular Economy, (3) Food & Water, and (4) People & Work.

Hence, after successful Sustainability projects, the IBM Corporation created a flexible data-driven Sustainability framework with five (5) key entry points:

Sustainability strategy and roadmap
Environmental, Social, and Governance (ESG) data, reporting, and risk Management
Intelligent assets, facilities, and infrastructure
Responsible computing and green IT
Sustainable supply chains and circularity

In Figure 1, a data-driven Sustainability framework enables businesses to start or continue their Sustainability journey based on where help is needed most to achieve Sustainability objectives. In addition, with flexibility comes the ability to develop and monitor sustainability performance. In turn, the C-Suite can more accurately report the status internally and externally regarding Sustainability.

A beginning entry point is to assess your company’s Sustainability strategy. Have you created a sustainability agenda that delivers corporate social impact with measurable business outcomes? The IBV Sustainability as a Transformation Catalyst report states, “The mindset needs to shift from viewing sustainability as a regulatory requirement or a stakeholder expectation to reconceiving sustainability as a business opportunity and catalyst for transformation.” In other words, think of Sustainability as an integral part of the company’s strategic and business transformation initiatives.

Sustainability data, such as emissions, are usually collected across different systems. For example, emissions data may originate from utility billing, fleet data, and HVAC smart metering. Many companies manually collect this information and track it within spreadsheets. However, automating data collection into a single ESG reporting and performance management platform provides a trustworthy system of record. In turn, Sustainability Executives can better gather insights from data to measure and operationalize across business functions for ESG reporting and risk management, which is another entry point for businesses.

Sustainable operations encompass the following three entry points:

Intelligent assets, facilities, and infrastructure
Responsible computing and green IT
Sustainable supply chains and circularity

With Sustainable operations, companies may extend the life of assets, modernize the energy and environmental impact of data centers, and achieve a circular supply chain. As a result, the C-Suite can make data-driven decisions regarding day-to-day operations. Based on the IBV Sustainability as a Transformation Catalyst report, the number one (№1) C-Suite focus area for Sustainable operations is to “reduce greenhouse gas emissions through monitoring, detection, modeling and action planning.” So, what are the next steps for the C-Suite and Sustainability Executives?

Focus on the most critical priorities by leveraging a flexible data-driven sustainability framework that includes (1) strategy, (2) ESG reporting and risk management, and (3) sustainable operations. You decide where to start, where to go, and how to get there.

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