Green ICT on a CxO Degree

Did you know that energy consumption related to the use of digital technology increased by 70% between 2013 and 2020? As you can observe, there is no doubt that new technologies can be disruptive and have a far-reaching impact on the environment. Tobania therefore offers the solution Sustainability Data Modelling as part of its SMART.Business suite, which focuses on process analysis, data modelling and human interactions. A sub-pillar in which notably our Business Analyst and Sustainability Expert Vladimir Lyutyy is fully engaged. In the fourth edition of our mini-series "Green ICT on a CxO Degree", we are pleased to elaborate on the further prospects of two key concepts within our story: business success and sustainability projects.

What is the key to success in corporate sustainability projects?

I would say that for sustainable business projects to be successful, the company must create a mindset to empower its employees to take the initiative and lead the change. People are the beating heart of any organisation. So, the success of any project will depend on whether they are behind the changes.

Secondly, I think companies need to have a clear picture of where they are now and where they want to be in the future. If you don't know where you are going, how can you determine whether you have arrived? By adequately assessing the situation, companies can increase the success of sustainability projects.

Last but not least, the use of modern technologies is absolutely crucial to achieving success when working on sustainability projects. By undergoing digital transformation today, companies will be able to monitor, measure and predict future situations more accurately.

Do sustainability and profits actually go hand in hand?

Absolutely! Not only does sustainability offer companies new insights and opportunities. Implementing sustainable practices in business strategy also lowers risk mitigation costs, strengthens strategic market position, increases customer satisfaction and opens the door to additional capital sources. Let's think of it this way. The lower cost of risk mitigation basically means that by introducing more precautions and improving monitoring of processes, the cost of crisis management and loss mitigation will be significantly lower than a traditional business practice. The increase in customer satisfaction also makes sense: the more sustainable the business model, the fewer resources will be wasted in the process. This will have a positive effect on overall wellbeing and price levels.

Based on the research I conducted, many retail and institutional investors are switching to sustainable investment products, which means that companies with sustainable practices are more likely to have stable access to capital. These and many other factors enable a company to improve its strategic market position. Lower costs, more available capital and higher sales are the ideal formula for increasing a company's profitability.

Is there a sustainability topic you think is not sufficiently talked about within business contexts?

One of the sustainability topics that is often overlooked, at least in my opinion, is the topic of organisational awareness and informed decision-making. Currently, regulators are pushing new requirements that companies have to comply with. New frameworks are created almost every year. Let me just list a few: NFRD, GRI, SDG, CSRD, FSRD, etc. By the end of 2022, a significant number of companies have to report according to the EU Taxonomy scheme, and by 2024, even more have to comply with the Corporate Sustainability Reporting Directive (CSRD).

The problem is that most of these companies have a vague understanding of what and how to report. What data do they need? What should they focus their attention on? How can they do it and what will it cost? Despite all efforts, many of these questions remain unanswered so far. The more information and clear communication, the better the quality of sustainability practices will be. 

And lastly, what changes should all businesses implement by 2030?

First, all companies must define their sustainability scope by 2030. To do so, they must establish a consistent situation assessment cycle with a clearly defined set of smart KPIs. Every company, regardless of its size and revenue level, should include at least a few sustainable practices in its strategy to improve those KPIs.

Second, companies need to increase their digital maturity to facilitate the implementation of modern technology and innovations. Data plays a crucial role in this process, and it should become the second nature of every company to make the most of it. A carefully designed data model architecture can answer many organisational challenges.

Finally, by 2030, all companies should create a corporate culture in which sustainability is seen as an ally in achieving other business objectives, such as profitability, competitiveness and innovation. The new way of thinking would reduce companies' resistance to change and increase the positive effects of various projects, including non-sustainability projects.

Where do you stand in your sustainability journey?

Implementing sustainable business practices doesn't happen overnight. It requires a keen understanding of European regulations (consider the Corporate Sustainability Reporting Directive - CSRD) and the right approach to implement your green strategy and reporting. With our brand-new offering Sustainability Data Modelling, we leverage our far-reaching data expertise to create the necessary added value you need. More specifically: we provide you with a dedicated team of data experts who can translate their far-reaching sustainability know-how into a concrete roadmap to get you started.

Browse through our Sustainability Data Modelling brochure, get a first impression of our offering and approach, and feel free to contact us to discuss all your concrete questions. We already can't wait to guide you as a wingman towards a greener world: