The roles of ICT and business leaders are expanding, with new expectations that go beyond traditional metrics.
This comes as businesses are expected to not just do well and deliver profits to answer to shareholders – they must also ensure that their businesses benefit the society and the environment. The shift is driven by evolving consumer expectations and the need to attract and retain top talent, as the younger generation increasingly prioritise working for purpose-driven organisations.
The numbers are telling. A study by consulting firm PWC found that half of Asia Pacific consumers are changing their purchasing habits to mitigate climate change. They are also willing to pay nearly 11% above the average price for sustainable products. In another survey by Deloitte, 55% of respondents say that they research brands’ environmental impact and policies before accepting a job, and over 40% already have, or plan to, change jobs due to climate concerns.
This reflects the growing importance of the triple bottom line (TBL): profit, people, and planet, says Ms Clara Lee, Chief of Data Science Practice at NUS-ISS. Coined by sustainability expert John Elkington in 1994, TBL maintains that a business should not only make money but also improve people’s lives and the well-being of the planet. “Realising all three (bottom lines) requires a new approach, and digital sustainability is a critical tool in this journey.”
The problem and the solution
Digital sustainability refers to the practice of using technology in a way that minimises its environmental footprint while maximising societal benefits and business outcomes.
“As organisations accelerate their digital transformation, achieving the triple bottom line requires rethinking how technology is deployed and used,” Clara says. She explains that with the rapid rise of AI and digital transformation, the information and communication technology (ICT) industry is set to contribute even more to global carbon emissions.
Research showed that a generative AI system may use 33 times more energy to complete a task than it would take with traditional software. The computational power required for sustaining AI's rise is also estimated to double roughly every 100 days, the same report noted.
The flip side is true. Technology advancements – including AI – also holds the potential to be a powerful solution. The World Economic Forum posits that digital solutions could reduce global emissions by 20% by 2050 in the three highest-emitting sectors: energy, materials, and mobility. These industries can already reduce emissions by 4% to 10% by 2030 by accelerating the adoption of digital technologies. “This increase underscores the substantial impact digital technology will have on carbon reduction efforts and the critical role it will play in combating climate change in the coming decades,” Clara explains.
“For example, data and AI offer insights and opportunities for businesses to optimise operations, streamline supply chains, and reduce waste. These can help lower a company’s carbon footprint,” she adds.
But one major challenge is the lack of expertise. Many organisations struggle to understand how to align their digital transformation efforts with sustainability objectives, Clara adds. “Digital sustainability requires a unique blend of skills, combining knowledge of cutting-edge technology with an understanding of environmental science and sustainability practices."
Leadership, therefore, is key. "With deep understanding of sustainability principles and digital management skills, business and ICT leaders would then be able to contribute to business growth through driving both technological innovation and environmental responsibility."
A sweet spot
Sustainability has been on the agenda for most organisations. However, few consider how digital technologies can accelerate their sustainability transition. To help business and ICT leaders navigate these complexities, NUS-ISS has introduced a new course: Digital Sustainability for Strategic Leaders.
The two-day course is part of NUS-ISS’ Executive Education series. Ideal for both business and ICT leaders, it aims to equip them with the essential knowledge and skills to spearhead digital sustainability initiatives.
“Currently, courses in the market today focus on the science of sustainability and climate change, ESG reporting, compliance, and so on,” says Clara. “But at NUS-ISS, we help leaders connect the digital and sustainability aspects of things. Our focus is on delivering practical insights that leaders can immediately apply to their organisations.”
She emphasises that investments in digital sustainability must be in line with business goals. How can leaders ensure this alignment? “Identify critical issues and hotspots across the business value chain and drive digitally-powered, sustainable business outcomes that align with both economic and ESG goals,” Clara says.
Organisations need to approach digital transformation and sustainability as two aspects that are not mutually exclusive. In fact, adds Clara, they should be deeply intertwined. “The idea is not that digital technology can solve all sustainability problems, but that there is a sweet spot where the digital amplifies sustainability,” Clara says.
And what does this mean for your ROI? Even greater, more meaningful returns beyond the financials, emphasises Clara. “Digital sustainability is not just about doing well; it’s about doing good, and in doing so, positioning your organisation for success in a purpose-driven future.”
Sign up for the NUS-ISS Digital Sustainability for Strategic Leaders programme here.