New data from a collaboration between the World Economic Forum and Accenture found that three highest greenhouse-emitting sectors – energy, mobility, and materials – could utilise digital technologies to reduce emissions by up to 20 per cent by 2050.
As businesses and governments respond to global calls for action to tackle climate change, significant efforts must be put in place to achieve net zero. However, a large gap remains between commitments and action.
Estimates of current commitments indicate a projected emissions reduction of merely 7.5 per cent when a 55 per cent reduction is needed. Closing this gap will require high-emitting sectors to rethink efficiency, circularity and sustainability.
Energy, materials and mobility constitute the highest emission sectors, contributing 43 per cent 26 per cent and 24 per cent respectively of total emissions in 2020.
The collaboration detailed how these industries can use four digital technologies to decarbonise their operations and value chains with:
- Foundational technologies such as big data analytics
- Decision-making technologies such as artificial intelligence/machine learning and digital twins
- Enabling technologies such as cloud, 5G, blockchain and augmented reality
- Sensing and control technologies such as the internet of things, drones and automation
According to the estimates, digital solutions can reduce emissions by up to eight per cent in the energy sector by enhancing carbon-intensive processes, improving energy efficiency in buildings, and deploying and managing renewable energy.
In the materials sector, digital solutions can improve mining and upstream production and enhance efficiency and circularity of materials, reducing up to seven per cent of GHG emissions by 2050. The mobility sector can reduce emissions by up to five per cent by supporting the transition from fossil fuel combustion to green molecules, improving supply chain efficiencies and optimising travel routes.
Manju George, Head of Platform Strategy, Digital Economy, World Economic Forum, said digital technologies and business models are readily available levers for companies to accelerate their climate and energy transitions.
“Technology can bring transparency, efficiency and circularity to business processes and value chains. Shared learning and action by industry leaders and climate coalitions will be key to realising the benefits of technology at scale while keeping its carbon footprint low,” Mr George said.
Lighthouse Examples
The Forum is curating an inventory of lighthouse examples, companies that are leading the way in implementing digital technologies to reduce their carbon footprint and deliver economic growth to inspire more adoption and collaboration.
Kathleen O’Reilly, Global Lead, Accenture Strategy, said impactful actions have to occur.
“The combination of digital and sustainability is already creating significant value across industries but many companies are still seeking the practical, strategic and impactful actions they must take now to realise the full impact of their ambitions and commitments,” Ms O’Reilly said.
“While every digital transformation will look different, the use of real-time data to enable sustainable decision-making, new-skilling opportunities for workforces to scale digital, and collaboration both within the organisation and across the value chain will be core to the success of all.”
In each sector, digital technologies must be deployed together with new climate technologies and business models to deliver net zero. In addition, efforts to reduce emissions from the digital technologies themselves must continue, keeping their net impact on the planet overwhelmingly positive.
For over 50 years, the World Economic Forum has been the international organisation for public-private cooperation. The Annual Meeting is the focal point for leaders to accelerate the partnerships needed to tackle global challenges and shape a more sustainable and inclusive future. Convening under the theme, History at a Turning Point: Government Policies and Business Strategies, the Annual Meeting 2022 and its 450 sessions bring together global leaders from business, government and civil society.
