August | 2021
Global enterprises are realigning their corporate objectives to reconcile the gap between sustainable operations and their financial goals across the value chain. The drastic shift in attitude recorded in the past decade is an encouraging indicator of the changes that lie ahead. Global enterprises are setting up sustainability goals as an integral part of their corporate strategy and not just as an ad hoc activity to generate a positive brand image.
Carbon neutrality and net-zero emission targets are critical milestones that many companies aim to achieve within specified timelines. Striking the right balance between the total contributed emission against the amount removed from the atmosphere is at the core of the net-zero principle. However, approaching this as an abstract concept will not take companies any closer to achieving these goals.
Energy consumption and usage distributions largely remain unpredictable due to the complexity of operations and the size of an enterprise. Corporates lack a unified view of their energy footprint across the value chain and often fail to predict an opportunity to conserve energy and reduce emissions.
This paper explores the ways smart technologies, including IoT and AI analytics, can enable enterprises to identify untapped potential in reducing their global carbon footprints for a sustainable future.
Unified picture of global emissions
Scientists and climate experts endorse a rapid and simultaneous adoption of technology-led solutions across different sectors and sub-sectors to accelerate the drive towards net-zero emissions. A unified view of existing energy consumption and proportional emissions is critical to decarbonize on a global scale.
The combined energy consumption of industries, electricity and heat, buildings, and transportation sectors alone contribute towards three-quarters of global emission. This is closely followed by agriculture and cement, and chemical industries through direct and indirect use of fossil fuels. Although the pandemic induced lock downs and restrictions temporarily reduced emission levels, the predicted upward trajectory remains unchanged. [1]
At the brink of a climate catastrophe
The core reasons for adopting any new technology have always focused on generating business value and augmenting financial outcomes. Decades of such a myopic approach to climate change have brought us to the brink of an unavoidable climate crisis without collective and conscious efforts. The scope for action involves a range of proactive and preventive measures with every stakeholder involved, from individuals, corporate organizations to governments across the world.
A mere 1.5-degree Celsius increase in temperature triggers rapid desertification in some parts of the world while drastically altering weather patterns in other regions. In 2019, weather-related disasters started a mass displacement of 24.9 million people in Southeast Asia and some parts of Africa[2].
If the current emission levels continue, over 200 million people living in climatic hotspots will become climate refugees by 2050 due to cataclysmic environmental disasters[3].
Holistic transformation for sustainable growth
The UN-mandated integrated approach towards SDG 2030 calls for building a holistic outlook towards several critical issues affecting the planet. The synergy of individuals, academia, corporates, technology, and financial resources is required to reach these ambitious targets.
A paradigm shift in the corporate brand perceptions of consumers is pushing enterprises to adopt a well-rounded transformation strategy to position themselves as ‘social partners’ and not just as another corporate entity operating for profit. This shift in approach is driving critical changes in society’s environmental, economic, and social fabric.
The focus on climate protection drives, including crucial initiatives such as reducing resource consumption, responsible waste disposal, restoration of biodiversity, and water neutrality, has a cascading effect on the entire value chain of companies for sustainable and environmentally responsible growth. Corporates can leverage smart technologies such as IoT and AI analytics to devise a customized plan that fits their operational needs for a successful net-zero journey.
“Net zero Emissions Must Be Met by 2050 or COVID-19 Impact on Global Economies Will Pale Beside Climate Crisis, Science is clear: if we fail to meet these goals, the disruption to economies, societies and people caused by COVID-19 will pale in comparison to what the climate crisis holds in store. And so, our shared responsibility is equally clear: redouble our efforts to recover from the economic and social crisis and get on track to achieve the SDGs [Sustainable Development Goals] and build a sustainable, inclusive and resilient future.” – Antonio Guterres, UN Secretary – General
Challenges in adopting effective sustainability strategies
A responsible corporate citizenship model must go beyond the ceremonial sustainability report publications or half-hearted measures that come with no follow-up actions.
Enterprises must demonstrate a clear, comprehensive, measurable action plan that is transparent to all stakeholders, including the customers, employees, and investors. Clearly defined goals within a specified time frame with periodical access to data and performance metrics should be integral to enterprises operating across different sectors.
Initiatives like “Transform to Net Zero” set a clear target to cut GHG emissions by 50% by 2030. The governing principles convert commitments to action plans with focused efforts on data-led innovation, policy engagement, transparency, and accountability. This cross-sector initiative aims to accelerate the transition and encourage collaboration to achieve a net-zero global economy.[4]
As one of the founding members of this climate leadership initiative, Wipro is at the forefront of catalyzing the transformation by working closely with policymakers, business partners, and other stakeholders.
Digital technologies under the IoT umbrella are predicted to reduce global emissions by up to 15 percent in the next decade – or one-third of the 50% reduction [1]required by 2030 through its customizable solutions and versatile applications.
Corporates operating in ‘high emission’ industries such as manufacturing and oil and gas are leveraging data-led analytics to compose a comprehensive action plan to reduce their carbon emission and related costs. By synchronizing assets, people, and products, cloud -based connected devices can streamline data flow to assess asset performance and product quality with crucial information on equipment health and maintenance status[2].
Digital twin technology can predict malfunction and significantly reduce unplanned downtimes. Deployment of intelligent technologies such as IoT sensors can also communicate and store data in the cloud for an in-depth analysis to develop models to predict any malfunction before it occurs or forewarn the crew of possible repair work. This significantly reduces the costs associated with repairs, production disruptions, or possible workplace accidents due to equipment damage and positively impacts the surrounding environment.
IoT and AI solutions have a range of applications that can maximize renewable energy distribution models. Smart grid technologies combined with real-time data inputs can disrupt the production of electricity and distribution to domestic and commercial consumers with an accurate estimation of power usage to predict supply and demand. IoT technology with machine learning capability and AI-backed analytics can make renewable energy solutions like solar panels and wind turbines more efficient and cost-effective. The energy wasted in transmission lines can be drastically cut down with reduced dependence on fossil fuels.[3]
Smart farming based on IoT technologies enables farmers to reduce waste and enhance productivity ranging from the quantity of fertilizer utilized to the number of journeys farm vehicles make. This enables efficient utilization of resources such as water and electricity. IoT smart farming solutions are a system built for monitoring crop fields with the help of sensors (light, humidity, temperature, soil moisture, crop health, etc.) and automating the irrigation system. Farmers can monitor the field conditions from anywhere.[4]
Policymakers and governments around the world are embracing smart technologies to leverage data insights and cost efficiencies. Building smart cities and special environmental zones using IoT technology could be a game changer for city corporation authorities. Cities consume 78% of the world’s primary energy and account for over 70% of carbon emissions.[5] Smart technology will be a key lever in enabling cities to achieve important zero-carbon goals using technologies for effective management of street lighting, waste disposal, parking data, crowd control, public transportation, and utility services.
Many multistory buildings and shared workspaces implement smart building management systems such as IoT sensors to control HVAC (Heating, Ventilation, and Air Conditioning) for better occupant experiences and effective resource management for reduced maintenance costs. The facilities management team often has access to multi-site visibility on occupancy and deep insights into HVAC and energy consumption.
Building management technology enables automatic monitoring, managing, and proactively controlling systems to maintain key parameters such as air quality, temperature control, etc. with remote access to buildings. Powerful AI-backed data analysis tools give deep insights and provide real-time data to detect patterns in the energy consumption of an entire facility for customized occupant experiences and higher cost efficiency.
A careful step in the right direction
The true potential of IoT technology lies in its power to give real-time data from multiple sources with powerful AI-backed analytics that presents enterprise-wide data in a single pane view for an accurate prediction model. If enterprises can predict their contribution to global emission and view the costs associated with it, both financial and environmental, the action plan to offset the emissions can be fine-tuned to meet the combined goal of sustainability and business value generation.
Powerful AI-backed data analytics can empower governments and enterprises with critical information to plan a circular economy that focuses on end-to-end activities from production to consumption to achieve optimized output in the most environmentally responsible way.
Global economies, industries, corporates, and individuals are at a crossroad to take decisive action. With smart and futuristic technology, net-zero is not an abstract or improbable task, but rather an achievable target that can be reached with systematic actions and long-term plans.
Corporations like Wipro are committed to achieving net-zero carbon emission before 2040 by positioning sustainability at the core of their business model. Many global corporates are emerging as influential climate leaders to enable business transformation to accomplish the net-zero targets[6]. The action plan consists of business transformation, collective actions, and systemic change in the way the value chain of each industry operates to create business value.
A successful transition from sustainability commitment to implementation relies on the adoption of smart technologies that have the capacity to generate incremental value with deeper insights. Technology will be a key enabler in the race to meet net zero and its versatile application across different industries will help generate positive and promising results with measurable performance metrics in reducing emissions either directly or indirectly. These technology enabled solutions must be used ethically and with total transparency and accountability by governments and corporates around the world in the race to win net zero targets and for a sustainable future.
If you are interested in learning how Wipro can help you achieve your sustainability goals, connect with us.
Reference
Vaishali Deshmukh
Managing Consultant, Wipro
Vaishali has 15+ years of experience as a trusted advisor. She is responsible for global consulting for IoT and Smart Cities portfolio cutting across verticals. Vaishali has experience in business strategy, opportunity assessment, financial modeling, and business case development.
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