Companies are rapidly implementing sustainability initiatives and environmental, social, and governance (ESG) standards as they face mounting pressure to tackle complex environmental challenges. According to Gartner, 87% of executive leaders plan to increase investment in sustainability over the next two years. Bessemer Venture Partners highlighted the rise of entrepreneurs in green energy technologies and the growth of an ecosystem supporting the climate economy. This evolution demands new cloud software designed to power the energy transition.
The climate ecosystem includes renewable energy, smart devices that conserve resources, and software managing energy usage. These components rely on data for assessing, monitoring, and executing sustainability measures. Success hinges on digital transformation with a robust data foundation. Data helps identify inefficiencies in production lines or supply chains, track items in real-time, and reduce waste.
Real-time visibility into sustainability metrics empowers businesses to track goals, identify improvement areas, and make data-driven decisions. A digital transformation leader must first establish a baseline by gathering data on energy usage, emissions, machine processes, and more. They face challenges like data silos and legacy systems, stressing the need for a unified data foundation.
Implementing IoT for sustainability involves multiple technology layers:
- Devices Layer: Physical sensors and controllers collect data on sustainability metrics.
- Edge Layer: Edge devices process and filter data before sending it to the cloud.
- Cloud Layer: This includes databases, data warehouses, and tools for data processing and analysis.
- Application Layer: Applications on the cloud provide real-time insights and drive sustainable operations.
- Integration Layer: Integrates IoT data with enterprise systems for comprehensive reporting.
To maximize data usage, companies should prioritize a single source of truth, bridge IT and operational technology data gaps, enforce data standards, secure data pipelines, and use scalable solutions. Ensuring trustworthy data is essential for building reliable offerings.
The potential for sustainability through digital transformation is boundless. Organizations that develop connected products gain a competitive edge, with use cases ranging from reducing manufacturing scrap to enabling electric vehicles. Sustainability is a strategic technology trend, and now is the time to invest in digital solutions to drive data-driven sustainability and future-proof businesses.
Source: Data, Climate Tech, Sustainability Initiatives And The Next Phase .
