Technology drives Corporate Sustainability in the Fourth Industrial Revolution

March 3rd, 2016 by Dakota Software Staff Industry News

Leading organizations are leveraging technology to reduce environmental impacts and ensure corporate sustainability corporate sustainability. What was once a tertiary consideration for some businesses is now common for a wide variety of companies, from employees to customers, and expected by many stakeholders. Corporate sustainability is also an evolving concept, one that adapts to operational changes in industries, the influence of people involved with the organization and worldwide and national laws and pacts.

Coming off the heels of the recent Paris climate accords, the 2016 edition of the yearly economic summit in Davos, Switzerland, had plenty of indications for the future of corporate social responsibility and sustainability.

The Fourth Industrial Revolution
The overall theme of the Davos summit, held in late January, was "Mastering the Fourth Industrial Revolution," as highlighted by the World Economic Forum. The fourth revolution follows in general the pattern of the first three, the WEF said. The introduction of new technologies ranging from more accurate and Internet-connected sensors and the significant developments in computer hardware, software and machine learning will transform the way the global economy functions, just as the initial mechanization and centralization of industry did during the first revolution.

What does it mean for corporate sustainability?
With the rapid development of so much new technology and the agreements made by signatory nations in Paris at the end of 2015 in the minds of many economic leaders at Davos, sustainability was a major topic of discussion. The Environmental Defense Fund reported discussions of carbon taxes were frequent and prominent. The assembled financial elite generally agreed on both the efficacy of placing a price on carbon and the many positive effects those taxes provide. Leaders of companies ranging from Wal-Mart to HSBC made pro-carbon price statements.

Doug McMillon, CEO of Wal-Mart, said that a price on carbon emissions would provide the impetus needed to convince investors to make improvements related to clean energy, according to the EDF. While there were no formal agreements on the scale of the Paris accords, there was a strong consensus about the importance of carbon taxes. This could significantly influence how companies in the U.S. and abroad formulate corporate sustainability plans, as well as how they interact with legislators and regulators looking to form the next generation of environmental law.