It is no secret that sustainability is more than just a nice to have; it actually makes business sense. Industries around the globe are prioritising the transition into sustainability. We all know that we need to reduce emissions by 50% by 2030 and 100% by 2050 to stay within the range dictated by IPCC and have a chance to stay below 1.5 degrees. This is why there is a global race to zero.
Earlier this month, BBC Studios held the Sustainability in Business Summit 2023 in Singapore. From discussions on working with AI, to how industries can reach net zero, to sustainable fashion as a case study – we are summarising some of the key takeaways below.
1. Data is the secret to everything – AI will help
Spencer Kelly, a presenter at the BBC, gave a compelling keynote where he underscored the importance of data to monitor every bit of machines that allow us to become more efficient and sustainable. For example, by using data, maintenance can be scheduled before a problem arises. While AI is in its infancy right now, it won’t be long until they are the personal assistance none of us knew we needed. Where we can ask a question and they will give us the best answer. And for the advancement of our communications with AI, speech will play a bigger role – as our most natural way to communicate is speaking, not reading or searching.
The best scenario is that we work in tandem with AI, playing to its strengths (like repetitive tasks, and the ability to remember everything so we don’t forget). There is the potential that AI will be able to spot patterns we can’t, find new materials to help us be more efficient, ways for us to be more sustainable. The ending thought: some of the biggest problems we are facing in the world today won’t be solved by us alone, but alongside AI: AI in partnership with humans.
This was further explored by Chen Chiu-Hao (Ted), co-founder, CEO and chief product Architect at Overcome Singapore, who is exploring using AI to transform net zero planning by leveraging AI to do repetitive admin tasks, testing net zero strategies and their feasibility – removing a lot of the wasted cost and hours on consultants.
2. Pledging is one thing, but turning it into impact and action is another
Chief Sustainability Officer of City Development Limited, Esther An always brings clarity and energy to any conversation on sustainability. Having been the first in Singapore to spearhead a sustainability report back in 2008, she has been miles ahead of the curve for over 15 years. She shared that publicly listed companies have to be held responsible for what they pledge. They have to be prudent and pragmatic while being realistic and transparent about what they are doing and what is possible. There are three main deliverables that should be focused on including decarbonisation, digitalisation (without this we can’t move the needle) and data (without tracking you can’t manage).
The reality is that SMEs need to be brought along on the journey, because “at the end of the day their carbon footprint is my carbon footprint. Business is the carrot for the incentive – if you align with our strategy and goals, we invite you to be part of our business.” We need to be practical but believe it’s possible.
3. Big companies respond to regulations
Obvious, yes. But Jim Bullock, Director of energy and sustainability Asia at Microsoft, stressed that big companies respond to regulations quickly and move to take faster actions. Almost all clients have big net zero goals but the pathway is opaque. The big challenge is the measurement and recording of emissions because without understanding the baseline, it is hard to find what the hotspots are and where to focus attention.
There is an altruistic side connected to avoiding climate catastrophe, but there is also operational benefits, revenue opportunities and new business models. Most companies now understand the risk of prioritising net zero far outweighs the risk of not doing net zero.
4. We need to start talking about actual reductions in emissions
Without reduction of emissions now and in the coming years, net zero far out into the future is a ‘bit of a fudge’ according to Abhas Jha, Practice manager, climate change & disaster risk management at The World Bank. It becomes an excuse not to do something immediately. As we all know, if we do not start bending the curve by 2030, we won’t stay within 1.5 degrees of warming. Energy access in developing counties is still a big issue. The average Nigerian consumes less energy than a fridge in the US. There is a major misplacement of the cost of capital for fossil fuels – if you want to build a solar farm in Europe the cost of capital is 2%. If you want to do it in Africa it is 20-40%. We have to eliminate the problem of access to energy and access to basic services.
5. Let us not forget about nature-based solutions.
Professor Koh Lian Pin, director of the Centre for Nature-based Climate Solutions (CNCS), reminded us about the two buckets of action for nature-based solutions. First climate change mitigation – where we look at addressing the cause of the disease. This looks at restoring forests, carbon markets investing in high-quality carbon products and shifting capital to help protect or restore those natural resources. And secondly, climate change adaption – where we learn to live with the symptoms of the disease, actions that will help us to learn to live with the problems. Things like greening buildings, urban landscapes, planting more trees, sea walls etc. contribute to cooling the environment and also help to absorb the heat from the sun so less heat is going to the built environments.
6. We need to continually ask ourselves, why not?
Dr Christina Dean, Founder of The R Collective and Redress, one of the leaders driving sustainability in the fashion industry, rounded the day off with a simple question: Why not? The sad reality of our times is that 1 dumpster truck of textiles is landfilled or incinerated every second globally, which totals 10% of carbon emissions and 20% of industrial water pollution. We’re producing 100 billion garments, 20% of which aren’t even sold by the industry. And 2000 consumers are buying around double the clothes and wearing them 1/3 of the time.
However, all 17 SGDs can be affected by the fashion industry. So we need to do better. We need to ask, why can’t it be done differently. Why can’t fashion be less polluting? Why can’t the fashion industry be good? It shouldn’t be less of something, it should be good.
FEATURED IMAGE: via Pexels | IMAGE DESCRIPTION: Grass and benches on a stretch of land outside concaving exterior of a building