Sustainability is at the top of the corporate agenda in the world, and environmental, social and governance (ESG) goals have become central considerations in companies’ digital transformation plans.
In the latest study by the consulting company “Boston Consulting Group” BCG on digital transformations, more than 60% of the survey respondents indicated ESG factors as a main focus or a central criterion for choosing and prioritizing digital initiatives, and more than 80% of companies plan to increase their investments in sustainability. But making ESG a priority does not guarantee success.
The BCG study, which included more than 850 companies worldwide, shows a clear connection between digital capabilities and sustainability.
Companies that have succeeded in the challenge of digital transformation can focus attention on innovation and the use of digital capabilities in the areas of sustainability. And so, digital maturity is both a necessary condition and an accelerating factor for sustainability initiatives
The study reviews ESG investment data by industry and region segmentation, and reveals five key insights regarding the importance of digital in the ESG context:
- Sustainability and growth must be thought of together
- The importance of measurement: it is not possible to systematically reduce what is not measured
- A dynamic environment requires digital support in decision-making.
- Risk monitoring and hedging are more important than ever
- Access to collaboration platforms and systems is a key to success
