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October 3, 2024 •Avvale
Sustainability has become a global priority that can no longer be ignored. Climate change, biodiversity loss, and the depletion of natural resources are issues that demand immediate and concrete action. According to the recent United Nations "Peoples’ Climate Vote", 80% of people globally want more decisive climate action from governments, and 64% believe companies must do more to address the climate crisis.
This growing desire for change is influencing institutional policies and business strategies worldwide. Sustainability is no longer just an academic topic or a subject discussed only at international conferences; it is now an essential component of the daily decisions made by companies, governments, and citizens.
In this context, technology plays a crucial role. Digitalization and technological innovation offer tools and solutions that can help reduce environmental impact and promote more sustainable practices. However, these technologies must be used responsibly and sustainably. It is not enough to adopt innovative solutions; they must be integrated into a broader sustainability framework that considers the entire life cycle of products and services. This is where Life Cycle Assessment (LCA) comes into play, an essential tool for evaluating and improving the sustainability of digital technologies.
The IT sector is one of the most innovative industries, but it also has a significant environmental impact. According to the European Union, the industry accounts for 5% to 9% of global electricity consumption. While this figure may seem alarming at first glance, the key point is that the IT industry is now essential for sustainable development and represents an indispensable lever. In an increasingly digitalized world, abandoning it is not an option, making a concrete commitment to maximize the sustainability of the IT sector is critical.
Tools like Life Cycle Assessment (LCA) become crucial in evaluating and reducing environmental impact throughout the entire life cycle of technological products, thus contributing to the Sustainable Development Goals of the ONU’s 2030 Agenda. Moreover, companies, while having profitability duties, must learn to balance these demands, finding harmony between sustainability and profitability.
Consumers are becoming increasingly aware of sustainability. A report by the IBM Institute for Business Value (IBV) reveals that 77% of consumers are making more sustainable choices, even for their homes. Additionally, 49% of respondents stated they are willing to pay, on average, 59% more for products that are branded as sustainable or socially responsible. This demonstrates that consumers are willing to invest more in products that respect the environment and communities.
But how can companies balance sustainability and profit? The Net Positive approach, advocated by leaders like Paul Polman and Feike Sijbesma, asserts that sustainability not only drives profitability but can also lead to significant savings. Companies that adopt a circular and sustainable approach can benefit from greater operational efficiency, cost reduction, and improved brand reputation. Technology plays a key role in this context, facilitating and accelerating sustainability efforts.
However, there is a risk that must not be underestimated: greenwashing. This occurs when companies exaggerate or falsify their sustainability commitments to attract environmentally-conscious consumers. This not only damages consumer trust but can also lead to significant financial repercussions. A study published in the California Management Review highlighted that the desire to profit from sustainability trends through deceptive advertising can be very harmful, both for consumers and for investments in socially responsible practices.
In conclusion, digital sustainability is not just a passing trend but an urgent necessity and an extraordinary opportunity for companies to redefine their business models. The adoption of advanced technologies and methodologies like Life Cycle Assessment can transform the way companies operate, making them not only more efficient but also more responsible.
However, authenticity is crucial: companies must avoid the trap of greenwashing and make transparency and genuine commitment the pillars of their sustainability strategy, including digital sustainability. Only then can they earn and maintain consumer trust, attract ethical investments, and ultimately thrive in an increasingly sustainability-driven market.