Leveraging digital to improve sustainability

The threat of climate change has driven businesses to embrace a more sustainable future, with a growing number of companies announcing their commitment to ESG and sustainability. But such commitments must be backed by concrete actions, and there are growing calls to leverage digital technologies towards a better, greener future, highlighting the potential of data for sustainable development.

Combining digital technologies and sustainability makes sense. The green transition and the digital transition have been two of the most important global business trends in recent years, and are twin challenges: one cannot succeed without the other. In practice, digitalization is increasingly seen by businesses as a way to improve environmental performance, with companies such as Mercedes Benz and Analog Devices announcing their commitment to sustainability through digital.

And now, a recent study provides empirical evidence supporting the relationship between the two trends. A recent paper by Professor David Bendig and colleagues highlights a strong positive relationship between companies that strategically prioritize digital technologies and their environmental performance

Digital orientation and environmental performance

According to Bendig and his colleagues, companies that focus heavily on digital technologies tend to have a greater ability to adapt to changing market conditions, as well as identify and exploit opportunities for innovation. These companies also tend to be more efficient in their use of resources, leading to lower costs and less environmental impact.

Take the example of software company Teradata Corporation, one of the companies selected for their sample. In their