The intersection of digitalisation and Environmental, Social, and Governance (ESG) strategies has become a pivotal focal point for organisations navigating the complexities of the contemporary business landscape.
The convergence of these two critical dimensions presents a unique and compelling narrative that extends beyond mere corporate responsibility, says Andrzej Harbicki, Head of Industry at GFT.
Harbicki noted that this fusion has prompted a reevaluation of traditional business paradigms, urging enterprises to recognise the inherent interconnectedness of technological transformation and sustainable practices and to strategically consider the simultaneous integration of both challenges in shaping a forward-looking and responsible corporate agenda.
Regulations are an opportunity – not a challenge
Harbicki began his presentation by noting that many businesses consider ESG regulations as a burden which they have to follow to comply with the law. However, he noted that these regulations should rather be seen as an opportunity to improve business processes in all areas.
He compared modern businesses to ‘data factories’ and that the main consideration for many of these companies (especially those in logistics and supply chain), typically comes down to energy consumption. ‘We now have regulations which are putting a lot of attention on how this energy is being used, which of course will have a big impact on a given company’, he explained.
He added that energy management ultimately comes down to carbon footprint management and that this digitalisation and data management ultimately comes down to energy, emissions and other sustainability KPIs.
Digitalisation and ESG software
Part of GFT’s offering is GreenCoding, which helps companies design, program and run software in a more environmentally friendly way.
Scaled up to servers and consumer devices worldwide, GreenCoding is based on the premise that every line of code has the potential to reduce energy consumption and emissions. This is supported by three pillars:
- Shut down when idle: This means designing software which shuts down when no one is using it.
- Avoid impulsive consumption: Question whether real-time processing or dynamic content is always necessary.
- Focus your investment in time and energy: Look at the big picture to see which elements will need the most energy and time.
Using the BSV blockchain to meet ESG goals
As we move forward, fostering collaboration between governments, businesses, NGOs, and blockchain innovators will be crucial. Blockchain can facilitate transparent, cross-border partnerships that enable the sharing of data and resources in the pursuit of common ESG objectives.
The path to harnessing blockchain for Environmental, Social, and Corporate Governance (ESG) is not without its challenges. Security, privacy, and regulatory compliance will remain paramount concerns. However, as we have seen with past technological advancements, a combination of innovation and prudent regulation can create an environment where blockchain thrives as a force for good.
Another critical aspect of the future of blockchain in ESG is education and awareness. We must continue to educate stakeholders about the benefits and potential pitfalls of blockchain technology. This knowledge-sharing process will empower individuals and organisations to make informed decisions and leverage blockchain for positive ESG impact.
To learn about how blockchain can prevent greenwashing, we encourage you to download our latest eBook – Engineering a Smarter and Greener Financial World with Tokenovate. In this eBook, we delve into the fascinating world of blockchain technology and its profound impact on the ESG (Environmental, Social, and Governance) landscape.
The potential for blockchain to revolutionise the way we approach ESG issues is truly remarkable. From reducing carbon footprints to promoting ethical supply chains and enhancing corporate governance, blockchain offers a multifaceted approach to addressing the key pillars of ESG.