Today’s industrial leaders recognize the important relationship between digitalization and sustainability, but most are falling short of adopting the technologies required to get there, according to a new study released by ABB.
The study, commissioned by ABB, found that an organization’s “future competitiveness” is the single greatest factor – cited by 46 percent of respondents – in industrial companies’ increased focus on sustainability. Yet
While 96 per cent of global decision-makers view digitalization as “essential to sustainability,” only 35 per cent of surveyed firms have implemented Industrial IoT solutions at scale.
The study, “Billions of better decisions: industrial transformation’s new imperative,” examines the current take-up of the Industrial Internet of Things (IoT) and its potential for improving energy efficiency, lowering greenhouse gas emissions and driving change. The goal of the new ABB research is to spur discussion within industry regarding opportunities to leverage the Industrial IoT and empower companies and workers to make better decisions that can benefit both sustainability and the bottom line.
“Sustainability goals more and more are a crucial driver of business value and company reputation, and Industrial IoT solutions are playing an increasingly important role in helping enterprises achieve safe, smart and sustainable operations,” said Peter Terwiesch, President of ABB’s Process Automation business area. “Unlocking insights hidden in operational data holds the key to enabling literally billions of better decisions throughout industry and acting upon them, with significant gains in productivity, reduced energy consumption and lower environmental impact.”
Further key learnings from the study
- 71 per cent of respondents reported greater priority given to sustainability objectives as a result of the pandemic
- 72 per cent said they are “somewhat” or “significantly” increasing spending on Industrial IoT due to sustainability
- 94 per cent of respondents agreed the Industrial IoT “enables better decisions, improving overall sustainability”
- 57 per cent of respondents indicated the Industrial IoT has had a “significant positive effect” on operational decision-making
- Perceived cybersecurity vulnerabilities are the #1 barrier to improving sustainability through the Industrial IoT
With 63 percent of executives surveyed strongly agreeing that sustainability is good for their company’s bottom line, and 58 percent also strongly agreeing it delivers immediate business value, it’s clear that sustainability and traditional priorities of Industry 4.0 efforts – speed, innovation, productivity, efficiency, customer-centricity – are increasingly intertwined, opening up win-win scenarios for companies looking to drive efficiency and productivity while making strides on climate change.
“The International Energy Agency estimates that industry accounts for more than 40 percent of global greenhouse gas emissions today,” said Terwiesch. “If we are to reach climate objectives such as the UN’s Sustainable Development Goals and the Paris Agreement, industrial organizations need to implement digital solutions as part of their sustainability strategies. Embracing these technologies at all levels – from the boardroom to the facility floor – is key, as every member of the industrial workforce can become a better decision-maker when it comes to sustainability.”