Over 88% of executives surveyed acknowledge the critical role of digital technology in driving their sustainability objectives. However, a significant majority admit to not yet implementing the necessary measures to achieve this. Just around 33% of the surveyed executives who hold high sustainability ambitions believe they possess the right technology to fulfill them. Only 24% of companies feel adequately prepared to meet future reporting requirements, raising concerns given the considerable time required to develop these capabilities.

 

As regulations evolve rapidly, companies face increasing demands for more comprehensive reporting. Anticipating these changes is crucial, especially as new requirements continue to emerge. For instance, the EU’s CSRD mandates reporting on GHG emissions, biodiversity, and water use by 2025. In California, large companies must report on Scope 1 and 2 emissions by 2026, followed by Scope 3 emissions in 2027. With these deadlines approaching swiftly, companies need to act promptly to implement the necessary measures.

Additionally, the looming deadline of the EUDR, effective January 1st, 2025, underscores the urgency for companies to adopt suitable technologies and risk management platforms without delay.

 

One major hurdle in obtaining this data is its absence from existing company databases. This data isn’t available at the moment. Most companies need to invest in new technologies, procedures, and personnel to transition from relying on industry averages to collecting actual measurements.

Furthermore, the complexity, dispersion, and multi-phased nature of food and beverage supply chains exacerbate the data collection challenge. The more intermediaries involved in the journey of goods from the field to the store, the more difficult it becomes to trace their source and cultivation practices accurately.

 

This recent study conducted by Bain & Company delved into the intersection of digital technology and sustainability, uncovering compelling insights into how digital innovation can propel companies toward sustainability leadership. Let’s explore some of the key findings from this research:

 

    1. The Digital Imperative: Digital innovation is no longer a luxury but a necessity for companies striving to achieve sustainability goals. Businesses that fail to embrace digital transformation risk falling behind their competitors and missing out on opportunities to drive positive change.

 

    1. Data-Driven Decision-Making: The ability to harness the power of data by digital innovation is crucial. By leveraging advanced analytics, machine learning, and other digital tools, companies can gain deeper insights into their environmental footprint, identify areas for improvement, and make informed decisions that drive sustainability outcomes.

 

    1. Sustainability as a Competitive Advantage: Digital innovation has the potential to turn sustainability from a perceived liability into a source of competitive advantage. Companies that effectively integrate sustainability considerations into their digital strategies can unlock new opportunities for innovation, efficiency, and value creation.

 

    1. Collaborative Ecosystems: Building collaborative ecosystems to drive sustainability progress is key. Digital platforms and technologies facilitate greater transparency, communication, and collaboration among stakeholders across the value chain, enabling collective action toward shared sustainability goals.

 

    1. Measuring Impact: The research underscores the significance of measuring and reporting sustainability impact. Digital tools enable companies to track key performance indicators, monitor progress over time, and communicate their sustainability achievements to stakeholders effectively.

 

 

The intersection of digital technology and sustainability presents both challenges and opportunities for businesses worldwide. While many companies recognize the importance of leveraging technology to advance their sustainability goals, the reality is that a significant portion remains unprepared. Companies should strive to bridge the gap between their sustainability ambitions and technological readiness as soon as possible. Embracing digital innovation not only allows businesses to navigate complex sustainability landscapes but also positions them to thrive in an ever-changing market environment.