It is in this scenario that ESG has been valued in the market and has become a fundamental strategy for companies. In this article, see the relationship between ESG, Industry 4.0 and digital transformation. Everything you need to know about the topic, such as what it is and how it relates to Industry 4.0 and digital transformation.
ESG: rethinking corporate sustainability
In recent years, the impact of companies on the environment and the community has become increasingly evident, and with it the need for responsible and sustainable conduct has become more frequent.
Consumers are increasingly concerned about socio-environmental responsibility and about companies’ attitudes on these matters. This means that to close new deals, companies need to adapt to market demands and consumer expectations.
Thus, respect for nature and society is an attitude that helps not only keep customers interested, but also manage a team of employees who are more motivated in efficient, productive operations, knowing they are working in a sustainable space and are aware of their role in changing environmental and social realities.
ESG practices on the rise in the business world
The ESG concept affects not only consumers but also the financial market. The term has become a basis for investors’ risk analysis and decision-making, and as a result, managers and investment funds have begun to reduce their investments in companies that do not focus on sustainability, good management practices and social responsibility actions.
According to a PwC report, by 2025, 57% of mutual fund assets in Europe will be in funds that consider ESG criteria, and 77% of the institutional investors surveyed said they plan to stop buying non-ESG products in the coming years.
For this reason, experts maintain that ESG is not an evolution of corporate sustainability but corporate sustainability itself, so there is no doubt that digital transformation and the use of Industry 4.0 technologies can facilitate the creation of ESG programs in businesses, as well as reinforce the measures companies have already adopted.
How does the digital transformation of industry favor sustainable solutions?
Several Industry 4.0 technologies can be integrated into businesses, boosting their performance and strengthening their role in protecting the environment in order to develop actions aimed at building a good relationship with society through social responsibility strategies. Here are some examples:
- Process digitalization. Increases productivity and efficiency, reduces bureaucracy and also makes companies more sustainable.
- Digital whistleblowing channels. Digital channels can be created and made available on companies’ websites as a corporate governance practice that helps organizations play an active role in combating abusive practices.
- Artificial Intelligence capabilities. Artificial intelligence can be leveraged to detect any suspicious behavior related to questionable practices, such as data breaches, for example.
- Ergonomics for employees. With the help of technologies such as digital twins, for example, it is possible to improve a company’s production chain and manufacture products that ensure better ergonomics for employees, preventing workplace accidents and ensuring employee satisfaction.
ESG Tech Report: Efficient Business, Sustainable Industry
The ESG concept is nothing new. The topic has been addressed in the business market for several years, and today companies that do not adopt good social, environmental and governance practices face unstable competitiveness and a threatening competitive future.
Although it is a very hot topic, few companies are clear about the contributions that technology solutions make to advancing their sustainability goals, especially their environmental goals.
Understanding that this is a high-impact demand for companies, Enacom developed the ESG Tech Report, a methodology that measures the ESG impacts of its solutions in technology projects.
Through a process of data collection, project monitoring and stakeholder interviews, an analytical report is prepared that transparently and objectively identifies the ESG impacts of the solutions, with before-and-after comparisons of their implementation.
Keep your business strategies competitive and aligned with a sustainable future for industry. Develop robust solutions for your company’s best performance with our solutions and get our ESG impact report free of charge. Contact our team and schedule a conversation!