Only one in five Asia Pacific organizations have a truly strategic approach to sustainability, with integrating automation and AI systems data with enterprise data being the biggest challenge. Asia Pacific organizations see technology modernization as a key step in advancing their sustainability initiatives.
SINGAPORE, Aug. 26, 2024 /PRNewswire/ — IBM (NYSE: IBM), in collaboration with Ecosystm, has launched a pivotal new white paper, “Executive Guide to Sustainability Technology”, aimed at enabling business leaders in Asia Pacific to harness the synergies between technology and business to accelerate sustainable transformation.
According to Ecosystm data, surveyed organizations in Asia Pacific are in the early stages of integrating sustainability into their core business operations, with only 21% taking a truly strategic approach to sustainability. Data challenges are cited as the top sustainability concern, as a robust baseline of ESG data is required to get a real-time, AI-powered, holistic view of current environmental impact and implementation progress needed to prioritize the most cost-effective ways to achieve sustainability goals.
According to the whitepaper, the biggest challenge facing Asia Pacific organizations is integrating data from automation and AI systems with corporate data (48%), followed by the need to collect data from multiple internal systems (45%) and the need to identify the right data for reporting requirements (42%). A recent survey by the IBM Institute for Business Value also found that only four in ten organizations can automatically capture sustainability data from core systems such as ERP, enterprise asset management, CRM, energy management and facilities management. Transparent, verifiable and auditable data across the value chain is essential to build credibility, foster trust and strengthen relationships with customers, investors and other key stakeholders.
“Organizations in Asia Pacific are struggling to turn sustainability challenges into competitive business advantages because incorporating sustainability data and insights into operational improvements requires high-quality data and robust governance capabilities that underpin trust. Generative AI can be a game-changer for data-driven sustainability, but leveraging hybrid cloud to integrate data and drive interoperability between organizations is key to achieving sustainability at scale,” said Hans Dekkers, general manager, IBM Asia Pacific. “Technology is essential to operationalize sustainability, and IBM solutions and services are helping organizations across the region harness the power of data and AI to achieve sustainable positive impacts that also drive business value.”
Highlights from the white paper include:
Regulatory pressure is not a key driver for sustainability: While there is a common perception that regulatory compliance is the main driver for organizations to adopt sustainability initiatives, the survey revealed that a combination of ethical considerations, economic benefits, and a proactive approach to navigating changing conditions are the biggest drivers of sustainability initiatives in Asia Pacific. Technology is important, but it requires a structured approach: 64% of Asia Pacific organizations recognize that they need the assistance of a technology advisory firm to define their own sustainability roadmap, and 40% are already leveraging technology to optimize their operations and supply chains. A structured three-tiered framework is essential to operationalize sustainability by establishing data-driven goals and strategies, building a robust data foundation for environmental data collection and analysis, and embedding sustainable initiatives into workflows through technology. Sustainability ambitions start with technology modernization: A key step Asia Pacific technology teams have taken to reduce their carbon footprint is updating to newer, more efficient infrastructure, with 53% of organizations making this transition. To ensure technological advances contribute to, rather than hinder, an organization’s sustainability efforts, a broader strategy is needed that includes proactively monitoring assets and managing them throughout their lifecycle. Concerns over data-intensive AI solutions: While increasing adoption of AI brings undeniable benefits, it also raises concerns over its environmental impact. Mitigating this requires lightweight infrastructure models that require less computational power without compromising efficiency, use of GPUs for AI workloads, and pre-trained underlying models that require less data and shorter training times. Additionally, automating AI code generation reduces processing steps and memory usage, further minimizing the environmental impact of AI solutions. Bridging the IT-Business Gap: A major challenge facing organizations is the lack of executive engagement across business units and the disconnect between IT and business functions. Currently, 70% of CEOs of organizations in Asia Pacific are key stakeholders in driving their sustainability vision, yet only 22% have a dedicated Chief Sustainability Officer (CSO). The entire leadership team needs to own the sustainability agenda: with the CIO driving the use of technology, the CFO integrating sustainability into financial planning, and the COO aligning operational efficiencies with sustainability goals.
“Organizations that embrace technology-driven sustainability decision-making can transform sustainability from a cost center to a value driver, ensuring long-term business success while leaving a positive environmental legacy,” said Sash Mukherjee, vice president of industry insights at Ecosystm. “By following this guide's three-tiered technology-driven sustainability framework and checklist, leaders in Asia Pacific can create compelling, data-driven sustainability stories that inspire action, manage risk, and build stakeholder trust.”
Additional Sources
Join the webinar
Download a copy of the Executive Guide to Sustainability Technology research, including a three-tiered technology-led sustainability framework and implementation checklist. Register for the expert-led Executive Guide to Sustainability Technology webinar on Tuesday, 27 August 2024, 2pm Singapore time.
About the Ecosystem
Ecosystm is a leading research and advisory firm that helps organizations transform and drive positive change through digital transformation and innovation. Leveraging deep market expertise, data-driven insights and world-class analysts and advisors, we are a trusted partner to businesses seeking market growth and new opportunities. For more information, please visit www.ecosystm.io.
About IBM
IBM is a leading global provider of hybrid cloud, AI and consulting expertise. We help clients in more than 175 countries use data insights to streamline business processes, reduce costs and gain a competitive edge in their industries. More than 4,000 government agencies and enterprises in critical infrastructure sectors, including financial services, communications and healthcare, rely on IBM's hybrid cloud platform and Red Hat OpenShift to drive digital transformation faster, more efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting provide clients with open and flexible options. All of this is underpinned by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service.
For more information, visit www.ibm.com.
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