Green technologies are processes, services, and products that aim to reduce the negative impact of human activities on the environment. Adopting green technology impacts how businesses operate and bring new offerings to market. Leaders are embracing the approach. Seventy-five percent of surveyed CXOs report that their organization has increased sustainability investments over the past year.1 A variety of green technology solutions and practices can help companies achieve their sustainability objectives while increasing their bottom line. We’ll explore some of the most common and impactful green technologies businesses use today.
Energy Efficiency
A significant goal of green technology is the efficient use of energy. Businesses are increasingly adopting renewable resources like solar panels, wind turbines, and hydroelectric power to reduce their reliance on fossil fuels. Incorporating these is a smart move, as McKinsey projects that 60% of the world’s electricity will be generated by renewable resources in 2035.2 These energy sources reduce carbon emissions and are likely to be more cost-effective in the long term. Organizations can optimize energy usage and spending by implementing technology to operationalize smart energy systems.
Waste Reduction
Green technology plays a crucial role in effective and sustainable waste management. Enforcing stringent recycling protocols and leveraging technology-based solutions enable businesses to reuse materials and minimize waste. Reducing a business’ environmental impact through conscientious waste management practices is a popular initiative. Eighty-four percent of executives reported increased technology and process improvement investments toward achieving circularity and recycling goals.3 Also, the emergence of innovative waste-to-energy technologies that transform waste into resources provides another, more sustainable avenue for companies to generate and consume energy.
Sustainable Supply Chain Management
Businesses incorporate green technology into their supply chain management to track and benchmark their suppliers’ sustainability practices. By leveraging blockchain and IoT devices, organizations can enhance transparency in their supply chains. These technologies help companies evaluate if their products and services are produced and distributed in an environmentally friendly manner. Gartner predicts that by 2026, 75% of organizations will increase business with IT vendors with demonstrable sustainability goals and timelines and will seek to replace vendors that don’t adhere to sustainable practices.4
Green Buildings
Green building technologies are enabling companies to operate their offices in a sustainable manner. Energy-efficient lighting, eco-friendly materials, and the production of clean, high-quality air from modern HVAC systems help businesses reduce environmental impact and provide employees with healthier work environments. With green building technologies, companies can increase employee satisfaction and productivity, ultimately improving performance.
Green technology offers many ways for businesses to achieve their sustainability goals and enhance operational efficiencies. As green technologies continue to evolve, they can provide organizations with ample opportunities to operate in an environmentally responsible manner, leading to a more sustainable, healthier, and cost-efficient future.
- Deloitte, New Deloitte research reveals majority of organizations increased sustainability investments over past year amid global uncertainty, January 2023
- McKinsey, Renewable-energy development in a net-zero world, October 2022
- Honeywell, Environmental Sustainability Index Q4 2023, 2023
- Gartner, Gartner Predicts 70% of Technology Sourcing Leaders Will Have Environmental-Sustainability-Aligned Performance Objectives by 2026, January 2023
