This is the third installment of Deloitte on Tech. Each month, a leader from Deloitte will cover a topic of high interest to SDxCentral readers. 

Climate change has become one of the top priorities for corporate leaders. In fact, 75% of surveyed CxOs say their organizations have increased their sustainability investments over the past year.

As organizations address today’s business challenges — including an increased urgency to focus on climate and sustainability practices — they need to apply nimble approaches and new technology to make an impact now and in the future. The decision to take action may stem from realizing that the climate crisis is not just an environmental issue, but a crucial factor that impacts the growth and sustainability of businesses. As companies navigate the complexities of the climate crisis, technology is rising as a key driver of transformative change. With the CIOs often at the helm, organizations are leveraging innovative climate technologies to help achieve their sustainability goals.

Gone are the days when addressing climate change was limited to select industries. Businesses across all sectors are now recognizing the need to develop a strategic action plan and adapt to the challenges posed by the changing climate. Otherwise, it's possible your business will not be around in 20 years. It is no longer just a matter of social responsibility, but key to the fundamental survival of the organization itself. The integration of climate technologies has become imperative to help future-proof businesses in an increasingly volatile world.

Investments in climate tech have risen significantly in recent years, as governments put increasing pressure on companies to decarbonize. In fact, venture capital investment in climate tech in the U.S. rose by 80 percent between 2020 and 2021, reaching $56 billion with no signs of slowing. Many Fortune 500 companies have made a net-zero target.However, many businesses also have had challenges connecting their climate strategy with technology. This is largely due to inefficient data-tracking processes and challenges with understanding exactly what to measure given the volume of data sitting across different enterprise software systems within an organization.

Technology leadership can play a pivotal role in spearheading this transformation. By understanding the potential of climate technologies, and how best to identify, track and leverage key data sets, they can help guide their companies towards a clear and actionable path to reduce greenhouse gas emissions. They can be the architects of sustainable digital strategies that encompass the entire spectrum of a company's operations, from the supply chain to internal processes and customer-facing initiatives.

Climate technologies can enable businesses to optimize their supply chains by leveraging real-time data, machine learning and artificial intelligence. Traditionally, Scope 3 emissions (those that are not controlled by a company itself,) are a major contributor and account for as much as 80 percent of an organization’s greenhouse gas emissions. By tracking and analyzing various parameters such as transportation routes, energy consumption and material sourcing, tech leaders can identify and implement sustainable alternatives that reduce carbon emissions. This not only can help organizations achieve their sustainability goals but also can enhance operational efficiency and cost savings.

Furthermore, climate technologies can empower businesses to foster transparency and accountability throughout their supply chains. Often we tend to treat the challenge of addressing climate change as an engineering problem, while forgetting that people are involved.  And, if the effect on people isn’t considered, the transformation may not be fair, and it likely won’t succeed. Stakeholders, including customers, investors and regulators, have become increasingly concerned about the environmental footprint of organizations. With the aid of technology, companies can now provide accurate and verifiable data regarding their sustainability efforts, helping to provide a higher level of trust and credibility.

The role of tech leadership in implementing climate technologies goes beyond supply chains. They are instrumental in leveraging data analytics and predictive modeling to identify potential risks and vulnerabilities associated with climate change. Technology platforms like GreenLight Solution, an enterprise decarbonization SaaS-based cloud solution, help companies build a clear roadmap to net-zero leveraging one of the largest global data libraries, including 150,000 emissions factors and 200 real-world tested emissions abatement projects including projects for hard-to-abate activities.

The platform also includes advanced data automation and transformation capabilities and leverages a large ecosystem of technology companies to integrate with an organization's preferred enterprise system.By harnessing the power of big data, CIOs can facilitate evidence-based decision-making, enabling businesses to proactively mitigate the impact of climate-related disruptions.

It is crucial to acknowledge that the integration of climate technologies is not a one-size-fits-all approach. Every business is at a different stage in its sustainability journey, with varying goals and challenges. CIOs must navigate these complexities and tailor technology solutions to suit each organization's unique needs. They must collaboratively engage with cross-functional teams to ensure the effective implementation and adoption of climate technologies across the entire organization.

Sustainability is an enormous challenge, but the biggest opportunities in business are found in addressing generational challenges.  The $1 trillion companies of the 2030s are being born right now and focused on tackling climate change. The journey towards a low-carbon future must embrace climate tech, and CIOs can be at the forefront of this evolution.

[caption id="attachment_134605" align="aligncenter" width="300"] John Mennel is a managing director and sssets and alliances leader in Deloitte’s Sustainability, Climate & Equity practice. He leads a cross-business team, which is developing technology- and analytics-enabled tools to help companies and investors set and implement decarbonization plans, commercialize abatements, and understand climate-related risks. Mennel also led the Responsible Enterprise strategy for Deloitte’s CEO, which included definition of Deloitte’s own net zero goals.[/caption]