Taking a byte out of the climate crisis: leveraging the digital economy to protect the environment and grow business

We’re living in a time when technological evolution is moving at a relentless pace. Within the last five years alone, advanced AI models and algorithms have transcended the boundaries of human capability, comprehending written and spoken language and mastering image recognition at levels that rival our own.

Meanwhile, on the streets, a quiet revolution is underway as electric vehicles (EVs) are transforming the automotive landscape. While EVs currently constitute a modest 2% of the global car fleet, the trajectory is astonishing: 14% of all new cars sold in 2022 were electric, a meteoric rise from less than 5% in 2020.

These remarkable advancements mark the dawn of a new era, where innovation and environmental responsibility are becoming business imperatives in equal measure. At Capgemini, we call this the Eco-Digital Era. And in it, businesses must learn to harness the exciting opportunities offered by tech — and leverage them to meet both business- and planetary needs.

Ecological preservation goes digital

Globally, we’re seeing a shift toward more sustainable operations, with digital technologies employed to cut emissions. And it works: our latest research has found that organizations leveraging digital tools in their sustainability initiatives can expect a 20.9% reduction in greenhouse gases. In fact, even as the digital sectors own greenhouse gas production climbs to a projected 7.2% of all emissions by 2028,[1] its overall impact remains positive. This makes tech an indispensable ally in the global effort to cut emissions.

But many leaders are still not clear on how to effectively leverage tech: Globally, businesses have only harnessed around 25% of the potential available in existing mainstream digital technologies.[2] Why? Cost is one deterring factor, and internal capabilities is another.

The untapped environmental potential of digital technology

Data analytics, cloud solutions and digital twins are all technologies that demonstrate a dual benefit. They can streamline operations and foster cost efficiencies, improving traditional metrics like sales by up to 15% while improving sustainability by up to 16%.[3] But for these innovations to serve both the planet and the company’s bottom line, they must be adopted at scale and be included as integral to the overall business strategy.

The stats above are backed up by real-life examples: In Germany, processing equipment company Claudius Peters is already producing 30% lighter components with lower costs thanks to digital advances.[4] Similarly, carmaker Rolls-Royce has cut the time required to inspect an aircraft engine by up to 75%, potentially saving £20m per year.[5] By predicting and improving performance, they're forging a future where economic gains and emissions reduction go hand in hand.

When innovation equals sustainability

At this point, it’s plain to see that business growth and planet do not need to be at odds; rather, they are harmonizing in a symphony of innovation and sustainability. The transformative power of digital technologies empowers businesses to enhance efficiency, cut costs, and minimize their environmental footprint.

Let’s seize this opportunity to innovate with a conscience, and to embark on a journey where

[1] Capgemini, “The Eco-Digital Era: The dual transition to a sustainable and digital economy,” January 2024, p 11.

[2] Capgemini, “The Eco-Digital Era: The dual transition to a sustainable and digital economy,” January 2024, p 14.

[3] Capgemini, “The Eco-Digital Era: The dual transition to a sustainable and digital economy,” January 2024, p 19.

[4] Capgemini Research Institute, Harnessing the value of generative AI: Top use cases across industries, July 2023. https://prod.ucwe.capgemini.com/wp-content/uploads/2023/07/Final-Web-Version-Report-Harnessing-the-Value-of-Gen-AI.1.pdf

[5] Rolls-Royce, “Harnessing the power of AI to deliver more intelligent engine inspections,” 2021. https://www.rolls-royce.com/media/our-stories/discover/2021/intelligentengine-harnessing-the-power-of-ai-to-deliver-more-intelligent-engine-inspections.aspx