As the conversation on ESG gains momentum in the business world, more companies recognise the potential ESG has to drive improved performance. It's no wonder 87 percent of company leaders say their organisations will invest more resources in sustainability throughout the next two years.Digital transformation takes ESG to a whole new level, enabling companies to optimise their systems and operations while also reducing costs. For this reason, over 60 percent of organisations doing digital transformation make ESG a priority. In this blog, we tell you all you need to know about ESG and the link between digital transformation and ESG. Let's delve right in!
ESG stands for environmental, social, and governance. It's a set of criteria used to evaluate how companies manage their risks related to natural resources, the environment, society at large, labour conditions, and corporate governance. Companies that align their operations to meet ESG criteria demonstrate their commitment to sustainability and responsible business practices, which can give a competitive edge in the market. The goal of ESG is to encourage businesses to be more sustainable and ethical while also providing long-term financial benefits.
Digital transformation is the process of using technology to improve processes and operations. It includes everything from automation and artificial intelligence (AI) to data analysis and cloud computing. For businesses that want to meet their ESG goals, digital transformation can be a powerful tool.
Today, thanks to advanced technologies, it's possible to track the entire industry's processes with enhanced speed and accuracy. For example, using precise measurements, operators can quantify the amount of carbon dioxide (CO2) emitted from a machine or accurately ascertain the efficiency of solar panel farms generating renewable energy.
As a result of better monitoring, it is now feasible to create a plan of action with the specific points in need of enhancement inside an industrial plant and prioritise each one. Additionally, by handling this procedure digitally, companies can cut the amount of personnel present at workspaces, reducing potential risks.
Digital transformation also helps companies reduce their environmental footprint by improving resource management and reducing the number of materials used in the production process. With greater accuracy and insight into production optimisation, companies can reduce costs while also being kinder to the environment.
Leveraging digital transformation for ESG initiatives is the way of the future. Companies that embrace this approach can increase their sustainability efforts while reaping cost savings and other benefits. With the right partner by your side, gaining control over environmental, social, and governance objectives is easier than ever before.
At DNA Digital, we pride ourselves on our comprehensive development solutions. We leverage technology to add value to companies and organisations, with expertise ranging from consulting and planning all the way through management, design, development, and delivery. Plus — you can always count on us for ongoing support and infrastructure maintenance. Get in touch with us today to learn more about how we can help you build a smarter, greener future.