More than four fifths (81%) of businesses recognize the need for “substantial transformation” to survive in the low-carbon economy, according to a new analysis.
The survey by the sustainability data management platform Sweep, in partnership with Capgemini, also found more than three quarters (78%) of businesses are still rely on manual processes like Excel spreadsheets to track their emissions data.
And a similar number (72%) currently do not measure their Scope 3 emissions, despite it typically making up at least 70% of a business’s total emissions according to data from the UN Global Compact.
More than half of respondents (52%) said their biggest concern when it comes to carbon and ESG is additional costs associated with supply chain disruptions due to environmental impact.
And more than 85% of respondents agreed digitalization, including the adoption of artificial intelligence would be essential in its path to become more sustainable.
The survey also found businesses are optimistic about finding new avenues in a low-carbon economy, with 46% looking to its leadership team to drive change, while 44% are looking to partner with a software provider to fully manage its data.
Rachel Delacour, the co-founder and chief executive of Sweep, said the survey shows how most companies recognise “transformation is essential” in an interview.
Delacour said while new regulations are helping drive change in some organizations, more than half (53%) of those surveyed do not think they have access to comprehensive data about how they are performing.
“Everyone understands sustainability is also a data project in the end,” she told me.
“And organizations understand they need an ecosystem of software partners to make sense of their sustainability journey.”
But she added the survey found almost half (47%) of sustainability managers are frustrated by the complexity of their own sustainability data and feel they cannot act on this information properly.
And Delacour compared the transition to the low-carbon economy to the one which occurred 20 or 15 years ago, when then digital economy went mainstream.
“It’s a new business model,” she explained. “Data points are needed to understand the market and interconnections with your business.
“The vast majority of organizations acknowledge that they won’t survive without serious change. This is why chief finance officers are joining the sustainability conversation, because it is about the future of the company.”
“The sooner you will understand your data points, the granularity of it at the scale of your business, then the sooner you will transition.”
Res Witschi, delegate for sustainable digitalisation at telecommunications company Swisscom, said net zero is “a goal that the whole company should work on” in an interview.
“A lot of our big customers are asking us to provide sustainability data and show our journey to net zero. It’s important to have reliable data you can share with the world.”
The chief executive of Capgemini Invent, Roshan Gya said effective action hinges on precise and actionable data in a statement.
“Organizations need to build robust data capabilities, supported by clear leadership and governance structures, to navigate this journey effectively,” added Gya.
“By taking internal stakeholders into confidence and through collaboration with the broader industry ecosystem, organizations can turn complexities of sustainability transformation into opportunities for growth and innovation and create long term impact.”
