words Al Woods
Nowadays technology can provide businesses and people with virtual universes, allowing them to imagine sustainable innovation that combines and harmonizes product, nature, and life. Thanks to this software, you can model, simulate, and evaluate impacts even before creating any experience in the real world.
At the core of companies thant develop this kind of techincal solution, in fact, are sustainability and decarbonization: not only they provide their customers with sustainable technology solutions – they are also deeply committed to become an example of sustainable technology company themselves.
What is decarbonization?
Put simply, decarbonization is the process of reducing carbon footprint and emissions. Companies need to rethink how they operate across their entire value chain, and decarbonization ultimately aims at achieving this, plus creating a carbon-free economy at global level.
Nowadays, as regulatory pressure grows worldwide, decarbonization is no longer an option: it’s a necessity.
Unfortunately, there are still many relevant barriers and challenges that prevent industries to achieve a true, full decarbonization on the global market.
Challenges to overcome and the future going forward
Possibly the most important barrier to implementation is currently a lack of urgency. A new study by EY Parthenon, OC&C strategy consultants and Booking.com has shown that the majority (51%) of firms does not feel the need to take urgent measures about their carbon footprint.
Many firms are primarily driven by profitability – which is usually tied to a positive guest experience – but the point is exactly this: decarbonization measures are implemented with these specific objectives in mind. Studies have proven that investments in this sense ultimately improve operational efficiency and that inaction will be more costly in the long run.
Another relevant barrier is represented by knowledge gaps. For 30% of the study’s targets, in fact, the problem is not implementing decarbonization measures, but rather possessing relevant information that enables them to implement even more. This is mainly due to a lack of data about the real sustainability impact of such measures, their financial implications, and even strictly practical considerations (such as the impact that these measures could have on their customers’ experience).
A lack of financial resources is what prevents 20% of the remaining study’s targets to implement decarbonization measures. While it is true that the vast majority of emission reduction measures is generally profitable within 15 years from the initial investment, they might still require a significant initial investment. Financial incentives could mitigate this issue.
In order to overcome all these challenges and more, there’s the need for a broad industry cooperation, that can lead to a healthier and more competitive global market. Stakeholders can also contribute in different ways to foster a greater sense of urgency about this sustainability issues, working together to improve information flows and close existing knowledge gaps.