How tech can power a green economy

The role that the technological sector can play in driving the transition to a more sustainable economy.

In a world in which both the progression of technological growth and climate change appear to be powerful and increasing forces, the question of how the two relate to one another is an important one to consider. It's possible that you'll be astonished. Responsible capitalism, which was a major topic of conversation at Davos this year, requires climate leadership from corporations that capitalises on the rapid speed of technological advancement.

The UN study from the previous year threw the risks into sharp relief: we have 11 years to limit the increase in temperature to merely 1.5 degrees Celsius by the end of the century. Should we choose not to, the repercussions may very well be catastrophic. Researchers have made the grim prognosis that all of our coral reefs will perish. There will be an increase in the number of heatwaves, which will lead to an increase in deaths caused by heat and in the number of forest fires. If we are only successful in limiting global warming to 1.5 degrees Celsius, 10 million more people will be impacted by rising sea levels each year than if we are only successful in limiting global warming to 2 degrees Celsius.

Incredibly high temperatures of more than 30 degrees Celsius were recorded in the Arctic Circle last year as a result of the unusual weather patterns that characterised the previous year. Our climate is already shifting at an alarmingly rapid rate. The entire country of Scandinavia was engulfed in wildfires, while Algeria had the highest ever recorded temperature for the continent at 51 degrees Celsius. If we don't do anything about it, we should anticipate that these records will keep getting broken.

So, what does it mean to be a leader when it comes to taking action on climate change? To put it more simply, it means adapting your business strategy to a world heated by 1.5 degrees Celsius. This necessitates maintaining an unwavering concentration on cutting down on carbon emissions. According to the calculations we ran at BT, the company needs to cut its carbon emissions by 87 percent by the year 2030 and by 100 percent by the year 2045. Because of this, we are on course to become a net-zero business long before the year 2050, which is the only way, according to the recommendations of scientists, to avert the most catastrophic effects of climate change.

Here is where technology plays a surprisingly important role; we can harness the technological shift that we are witnessing to help our climate action goals. There are two primary ways in which the information and communications technology (ICT) sector stands out from other sectors. To begin, it is decreasing its overall carbon effect from year to year. The most successful technology and communications businesses in the world, including Google, Apple, Amazon, and BT, have all pledged to sourcing all of their electricity from renewable sources by the year 2020. BT's coverage in the UK is already at one hundred percent, and this includes EE, which is the largest mobile phone carrier in the UK and has thirty million consumers.

The consequences are already visible: between 2010 and 2015, the aggregate emissions from the digital industry experienced a drop of around 15 percent. By the year 2030, it is anticipated that emissions from information and communications technology will account for less than 2 percent of total world carbon emissions. This is great news for the company's bottom line: during the past ten years, BT has reduced its operating expenses by £250 million thanks to a combination of switching to renewable energy sources and increasing energy efficiency.

The second major distinction, and one that is perhaps more significant, is that the digital sector assists other industries in becoming more environmentally friendly. Take, for instance, renewable sources of energy. Because of the variable nature of the supply, we require an intelligent grid in order to maintain a state of equilibrium between the two. All of this is made feasible by technologies that are connected to one another.

The same may be said for the transportation industry. It is possible to lessen the likelihood of becoming stuck in traffic in cities by ensuring that travellers are connected with the most expedient modes of transportation at the optimal time. Recent studies have shown that linked technologies have the potential to remove 20 million cars from the road by the year 2025. Technology will make electric and driverless vehicles the norm in the near future, which will reduce air pollution, make our streets safer, and ultimately save lives.

A recent research conducted by GeSI, a global non-governmental organisation focusing on promoting sustainability in the technology industry, illustrated the breadth of what can be accomplished with technology. There is the potential for up to ten tonnes of CO2 to be conserved in other parts of the economy for each tonne of CO2 that is emitted by the technology sector.

According to a research that was published not too long ago by WWF, "the most important role that the digital sector can play is in contributing effective solutions to other sectors, influencing consumer and producer behaviour, and leading the transformation of our energy systems." We have the ability to innovate our way to a more sustainable economy with the help of technology.

This does not merely refer to the usage of technology within your own company. The majority of companies have room for improvement with their supply chains. It may be possible to accelerate the necessary transformation by having a conversation with your suppliers about your sustainable aims.

At BT, we encourage our most important vendors to participate in a contest that we call the "Game Changing Challenge." This motivates them to come up with innovative ways to make our products more environmentally friendly. It encourages suppliers to make investments in new solutions, which results in the creation of new markets that are sustainable. Recent attention paid on a global scale to alternatives to plastics is a good illustration of this point.

The year 2020 is becoming considerably closer, and the time we have to act is starting to start dwindling, therefore the enterprises that can adapt will lead the way in responsible capitalism. They will need to modify their business models so that they are compatible with the emerging technologies that are now being developed, as well as adapt to the new technologies themselves. Those that modify their business in conjunction with others, such as their suppliers, will discover that the process is lot more efficient, straightforward, and fruitful for their company.