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Ignacio Louzan

Data-Driven Sustainability and Decision-Making

The World Economic Forum estimates that digital technologies could help reduce global emissions by up to 20 percent by 2030. It is no wonder then that so-called data-driven solutions are gaining increasing attention.

“Where there's data, there's power," says Mike Capone, CEO of Qlik, referring to how state-of-the-art analytics can reveal several insights from environmental datasets. This has become very relevant in urban settings, where data sharing among cities has led to unexpected solutions and innovation. As Capone explains, "C40 Cities, which is now a network of over 100 cities focused on climate action, share data and best practices using Qlik's platform, allowing them to collaborate on innovative solutions like carbon-absorbing concrete or rooftop gardens to reduce CO2 emissions."

Just as in cities, the footprint of supply chains in global emissions cannot be understated. In a world where consumption is maybe the most conspicuous and prolific phenomenon, and where products we consume are made out of a plurality of materials—often coming from different corners of the globe—we can easily intuit why scope 3 emissions are a recurrent term. John Sicard, president and CEO of Kinaxis, emphasizes this: "Supply chains are foundational to sustainability because they are intrinsically linked to human existence and environmental impact. Supply chains have existed since humanity began, from sourcing and trading basic goods. Currently, about 60 percent of environmental damage is linked to supply chains, with food alone accounting for 50 percent of that damage." However, the potential for improvement is substantial, with McKinsey estimating that supply chain decarbonization could reduce global emissions by a staggering 45 percent by 2050. Such a move can be made possible earlier thanks to data-driven solutions, as the integration of AI and advanced analytics is already yielding impressive results. This impact extends to the origin of supply chains. For instance, Debashis Ghosh, president of the life sciences, healthcare, energy & resources at TCS, highlights a significant achievement in the oil and gas sector: "Extraction and drilling account for 10 percent of scope 1 emissions from oil and gas. TCS' industry-first digital twin platform for one of the world's largest drilling fleets, optimized all drilling plans for emissions via simulations, before actual drilling. This reduced emissions by 8 percent through efficiencies." Returning to supply chains from a more comprehensive point of view, Sicard notes that "AI can handle transactions at a scale and speed that humans cannot match, driving efficiency and reducing the burden on supply chains. This automation ensures timely and precise actions, minimizing waste and improving sustainability." Its clients have already achieved improvements, "reducing their inventories by 20-40 percent while increasing on-time deliveries."

The transformation is also evident in the energy sector. There, smart grid technologies are changing the total efficiency of power distribution. Eva Riesenhuber, global head of sustainability at Siemens, tells us that "more than 70 percent of the world's electricity consumption flows through infrastructure planned or analyzed by Siemens' grid simulation portfolio." Its data-driven solutions have achieved results, with Riesenhuber noting that "our grid software allows utilities to increase the capacity of power lines by up to 30 percent, avoiding the need to build new infrastructure." This optimization is crucial as the IEA projects that renewable energy capacity will need to triple by 2030 to meet global climate goals. Edward Zhao, vice president at Univers, gave us another example on how these technologies can impact the efficiency of the grid: "As renewable energy generation grows, the grid must become more flexible to handle the fluctuating nature of energy supply from sources like wind and solar. To achieve this, data management is key. For example, we analyze large datasets that include weather forecasts, operational data from turbines and more, allowing us to optimize energy generation."