Decarbonisation Technology - November 2021

to achieve their ESG targets. ARC Strategies recent report, The Sustainability Future for Energy and Chemicals 5 revealed that 90% of global energy and chemical companies have sustainability initiatives in place. Definitive action may still be needed by some of these businesses but for all of them sustainability either is, or can be, a driver of digital transformation. Why digital solutions are a key enabler for sustainability goals Whereas in the past, investment in digital was often justified based on its potential to deliver enhanced profitability, today this kind of funding is just as commonly signed off based on its ability to deliver a reduction in CO 2 emissions. It hits the bottom line, just from a different angle. sustainability objectives. In the ARC survey, 75% of respondents said they believed digital transformation was either extremely important or very important for achieving sustainability goals. The International Energy Agency (IEA) has found that digital solutions can help boost energy efficiency as much as 30% for industrial operations. 6 In Europe, the Technology Platform for Sustainable Chemistry has highlighted digitalisation as a key tool to meet sustainability objectives in the chemicals sector. 7 Those businesses that had considered adopting more digital technology have recently been forced to dive into digitalisation to make certain of business continuity and to support more Digitalisation is a crucial enabler for companies to meet both business and

companies further to embrace ESG to implement and meet sustainability targets. Indeed, investors are being active, demanding oil companies put in place sustainability targets and commitments to deliver on the Paris Agreement for climate change. We are seeing increasing numbers of oil and gas companies adopting net-zero carbon emission targets by a certain year in the future. 4 We are witnessing chemical companies establishing thermal emission targets but now additionally making commitments around plastic waste – an initiative rapidly becoming a priority for governments and regulators across EMEA. Simultaneously employees and customers expect organisations across these industries to be upstanding citizens and run clean, efficient businesses. The latest generation of workers and customers are demanding greater accountability around sustainability. Organisations know that if they want to protect their brand reputation and attract these people to work for and engage with them, they must build cleaner, safer, and greener businesses that allow them to contribute to creating a world fit for tomorrow. So, in order to remain profitable and relevant in the marketplace, companies must work to grow the ‘triple bottom line’, and balance the impact of company operations on people, the planet, and profits – the social, environmental and financia trifecta. Today, therefore, it is time for the industry to deliver on the promise of ESG. We are seeing many businesses across the capital-intensive industries put strategies in place that are designed