Businesses today are facing a new reality. Environmental, social, and governance (ESG) considerations are increasingly critical to their success. These considerations go beyond traditional financial metrics and take into account factors such as a company’s impact on the environment, its ethical practices, and how it treats its employees. Customers, investors, and regulators alike are paying close attention to ESG factors, and companies that fail to meet these expectations risk falling behind and becoming uncompetitive.

One key way that businesses can meet these expectations is through digitalisation.This is the process of using digital technologies to change how a business operates and delivers value to customers. 

One of the most significant benefits of digitalisation is the potential for businesses to become more sustainable. By using digital technologies to optimise their operations, companies can reduce their environmental impact and improve their social and governance practices. For example, businesses can use data analytics to identify areas where they are using excessive amounts of resources and implement measures to reduce their consumption. They can also use automation to reduce waste, optimise their supply chains, and reduce the carbon footprint of their operations.

Here are some digital tools that businesses can use to become more sustainable:

1. Energy monitoring and management software

This type of software can help small businesses track their energy consumption and identify opportunities to reduce their energy usage. By monitoring energy consumption in real time, businesses can identify inefficiencies and take corrective action.

2. Cloud computing

Cloud computing can help small businesses reduce their carbon footprint by eliminating the need for physical servers and data centres. By storing data in the cloud, businesses can reduce their energy consumption and lower their carbon footprint.

3. Supply chain management software

Supply chain management software can help small businesses improve their supply chain efficiency. By providing real-time visibility into their supply chain, businesses can identify opportunities to optimise their operations, reduce waste, and improve sustainability.

4. Sustainable packaging software

Sustainable packaging software can help small businesses identify environmentally friendly packaging options for their products. This type of software can provide information on the environmental impact of different packaging materials and help businesses choose sustainable options.

Companies that can demonstrate that they are taking ESG considerations seriously and are implementing measures to improve their sustainability are more likely to attract investment. A recent survey by EY found that 87% of investors are willing to pay a premium for companies with strong ESG credentials. Similarly, a survey by PwC found that over 70% of investors consider ESG criteria when making investment decisions.

In conclusion, digitalisation is a powerful tool for businesses that want to become more sustainable and meet ESG expectations. By integrating digital technologies into their operations, companies can reduce their environmental impact, improve their social and governance practices, and provide more accurate and timely information on their ESG performance. Therefore, businesses should consider digitalisation as a key strategy to meet their sustainability goals and improve their long-term prospects.

Do you need some help making your business more sustainable? Get in touch with Lincoln Be Smarter for advice, support and funding to digitalise your business and reach your sustainability goals. You can email us at lincolnbesmarter@lincoln.ac.uk, or click the button below to book an online chat with us.