Businesses worldwide have embraced technologies to monitor and analyse data patterns in order to develop effective strategies to minimize their carbon footprint. These tools include blockchain-based solutions, Internet of Things (IoT) sensors, machine learning, AI-based solutions, and Life Cycle Assessment (LCA), however, their efforts do not stop there. They are also reorganizing their operations to offer end-to-end traceability solutions to customers, allowing them to monitor the measures taken by them in sustainability, thus demonstrating an accountable approach to conducting their operations.
QR codes or smart labels are one of the most popular digital technologies used to promote end-to-end transparency. They are attached to products and can be scanned using a smartphone to obtain all relevant information, including sourcing, production, transportation, and disposal of the end products. These codes also provide consumers with brand stories and mottos to help strengthen their relationship with the company.
To improve the consumer experience and make brand stories more interactive, some enterprises use Augmented Reality (AR) and GPS tracking technologies. These technologies not only provide information about sustainability efforts made by businesses but also make consumers a part of them. They allow consumers to provide feedback and trace the companies’ sustainability and decarbonisation efforts in real-time, which makes them feel more valued.
By offering a digital walkthrough of the production methods, supply chain, global distribution process, and eco-friendly disposal techniques, brands are trying to educate customers about their operations. This strategy is helping to build brand loyalty and awareness. Not only that, but it also serves as a great medium to inform people of the benefits of switching to sustainable practices and encourages them to incorporate them into their lives. In a world where over 64% of the population has access to the internet, technology is the best medium to inform, educate, and motivate people to try something new.
Transparency in business also promotes fair trade practices, which are among the founding objectives of the Sustainable Development Goals (SDGs). By ensuring equal pay, safe working conditions, and a healthy working environment, businesses can promote ethical and sustainable practices throughout the supply chain. This, in turn, can improve the health, well-being, and overall standard of living for workers.
As the impacts of climate change is getting escalated day by day, traceable digital technologies can be of great support to companies in their effort to decarbonise. However, this alone cannot help to achieve the target of the Paris Agreement signed by 196 Parties to intensify the actions and investments for a low carbon future. We need to reduce 55% of annual carbon emissions by 2030 to meet the net zero goals. But the way things are going, United Nations Environment Programme (UNEP) data suggest that 2030 is projected to reduce emissions only by 7.5%.
Technologies can only support in detecting the sources and pattern of carbon emission. They can help to trace both direct and indirect sources of harmful gases that are difficult to unearth manually. But this is just the first step to achieving the NetZero goals. The road ahead is more challenging and complex. To fill this gap, companies need to rework on strategies and improve efficiency, keeping SDGs at the core of their working structure. To decarbonise successfully, companies need to make changes at every stage and grow in harmony with nature. Investing in renewable energy, improving energy efficiency, and reducing waste are some of the ways to help companies decarbonise and move towards a sustainable future.
For far too long, companies around the globe have focused on serving the needs of the consumers, resulting in excessive greenhouse gas emissions. The Carbon Majors Report highlights that just 100 companies have been responsible for over 70% of the world’s greenhouse gas emissions since 1988. However, with climate change talks taking center stage and consumers becoming more eco-conscious, businesses are taking responsibility for decarbonizing their operations to meet the Paris Agreement. They are also leveraging digital platforms to promote transparency and build trust.
