Most firms track sustainability manually, stalling progress: survey
A new global survey has revealed that while 80% of businesses have established sustainability targets, more than half are still relying on manual methods to track their progress, potentially hampering their environmental efforts.
The “Tech-Driven Sustainability Trends and Index 2024” report, commissioned by Alibaba Cloud, found that 53% of organisations continue to use basic tools such as spreadsheets and emails to measure their sustainability performance, despite the availability of advanced digital solutions.
The study, which surveyed 1,300 business leaders across Asia, Europe, and the Middle East, showed that 92% of businesses with sustainability targets have specifically set emission reduction goals.
However, only one-third have committed to science-based targets (SBTs) for achieving net-zero emissions, with emerging Asian markets leading adoption at 39%, followed by Europe at 35%.
Singapore emerged as the most committed market, with 91% of businesses having established sustainability targets, closely followed by Germany at 89% and Indonesia at 86%.
The research highlighted varying motivations across regions, with Indonesian firms primarily driven by growth (70%), whilst Saudi Arabian companies emphasised regulatory compliance (73%).
“The survey findings underscore the urgent need for organisations to reassess their sustainability measurement methodologies and embrace advanced technological solutions”, said Selina Yuan, President of International Business at Alibaba Cloud Intelligence. She noted that digital tools could “streamline the measurement process” and provide “actionable insights”.
The study identified several key challenges facing businesses in their sustainability journey. Budget constraints emerged as the primary obstacle, affecting 29% of organisations, with particular impact in the Middle East (41%) and Europe (31%). Complex supply chains posed difficulties for 28% of businesses, whilst technology limitations and time constraints each affected 23% of companies.
Notably, 78% of surveyed businesses acknowledged technology's crucial role in achieving global sustainability goals, with strongest agreement in Malaysia (89%), Saudi Arabia (87%), and Singapore (86%). The same percentage believed that adopting digital technologies such as cloud computing and artificial intelligence would accelerate progress towards sustainability targets.
However, the report highlighted a significant knowledge gap, with 59% of respondents admitting limited understanding of how technology could support their sustainability objectives. This gap was particularly pronounced in Singapore (83%), Hong Kong (75%), and Thailand (70%).
The adoption of digital solutions varies significantly by region. Indonesia leads in cloud-based solution implementation at 59%, followed by Singapore (48%) and Japan (43%), whilst the global average stands at 38%. In contrast, markets such as the UAE (68%), Saudi Arabia (61%), and the UK (60%) showed the highest reliance on manual tracking methods.
The research was conducted independently by Yonder Consulting between May and June 2024, spanning 13 markets across three regions. It included responses from various sectors including technology, finance, infrastructure, healthcare, transportation, retail, and manufacturing.
Yuan emphasised Alibaba Cloud’s commitment to addressing these challenges through solutions such as Energy Expert, which enables enterprises to effectively measure and analyse carbon emissions and energy consumption, supporting their transition towards more sustainable operations.
