Imagine a world where extreme weather events cost the global economy over $200 billion annually and cause widespread environmental destruction. Sounds scary? But no worries, the world can tackle these challenges head-on by adopting renewable energy and sustainable practices.
Today, we will discuss the role of large and small companies in the green transition. We’ll explore some of the latest trends, and hopefully, you’ll discover something new in the way of adopting green transition, whether you’re a big corporation or small business. Stay tuned, and let’s dive in!
The urgency of green transition
It’s no secret that as technology advances and industrial activities increase, we produce significant amounts of pollution, cause biodiversity loss, and drive deforestation, all of which contribute to climate change. But what exactly is happening now?
- Climate change: According to Nasa, the current rate of warming is faster than anything seen in the past 10,000 years. Imagine this: the Earth’s average temperature has risen by approximately 1.2 degrees Celsius since the late 19th century!
- Biodiversity loss: According to the World Wild Life Fund, since 1970, there has been an average 69% decline in global populations of mammals, fish, birds, reptiles, and amphibians. Moreover, as of the 2019 Global Assessment Report, 1 million animal and plant species are threatened with extinction, the highest number in human history.
- Air pollution: Nearly the entire global population (99%) breathes air that exceeds WHO guideline limits for pollutants, causing an estimated 7 million premature deaths annually worldwide.
- Plastic pollution: Did you know that half of all plastics ever manufactured were produced in just the last 20 years, with production skyrocketing from 2.3 million tons in 1950 to 448 million tons by 2015? Yes, and that’s a big deal. Nowadays, plastic pollution has reached critical levels, with over 8 million tons of plastic entering the oceans yearly. Moreover, plastic is found in the highest peak, like Mount Everest, and the deepest ocean trench, such as the Mariana Trench.
The situation appears quite alarming. You might wonder, what can be done about it? The truth is that both large corporations and small businesses have the power to make a significant impact.
Role of big players in green transition
Kitrum has recently visited the Viva Technology 2024 conference, where the Green transition topic was vividly discussed. Experts at the conference agreed that large corporations are the first ones to be pivotal in driving the green transition. They can leverage their resources, and by reducing their carbon footprints, these companies can set industry standards and inspire smaller businesses to follow suit.
For instance, among the companies that were mentioned and discussed at the Viva Technology 2024 conference as playing a significant role in the green transition were Schneider Electric, which focuses on energy management and industrial automation with a sustainability emphasis; SWEEP, a SaaS platform for managing carbon and ESG data, which helps companies streamline their sustainability reporting; and the Helen McArthur Foundation, which promotes the transition to a circular economy and operates a network of 200 multinationals.
Besides, automotive leaders such as Tesla and General Motors are revolutionizing the electric vehicle market, accelerating the shift away from fossil fuels. So, yeah, big companies make a difference in green transition.
By adopting green technologies, these corporations can significantly influence environmental policy and regulation. They can shape legislative frameworks that promote sustainability by advocating for stricter emissions standards and renewable energy incentives. Their collaboration with governments and international bodies can result in impactful policy changes that drive broader systemic transformations.
Role of small players in green transition
You might not think about it at first, but meaningful change often begins at the local level. Small businesses and individuals can influence their communities by adopting and promoting environmentally friendly practices. For example, James Quazi, co-founder of Dandelion, launched Balto Energy to help homeowners electrify their homes efficiently and affordably.
Balto’s platform allows homeowners to choose and finance projects like solar panels, batteries, EV chargers, and heat pumps, starting with the U.S. market. Balto reduces dependence on fossil fuels and lowers carbon emissions by promoting home electrification, making sustainable home upgrades more accessible and affordable.
Another prominent example is Kilimo, an agritech startup addressing the problem of inefficient water usage in agriculture. By advising farmers on optimal water use and allowing them to save water, Kilimo helps manage water resources better and allows farmers to sell surplus water to companies in need, thus promoting sustainable water management and providing economic benefits to farmers.
Small businesses also make a difference in Grassroots initiatives, such as community gardens and local recycling programs, which empower individuals to take collective action toward sustainability. These movements often lead to greater environmental awareness and education within the community, creating a ripple effect that inspires others to join.
Collaboration between big and small players for a greener future
Collaboration between big corporations and small players like startups and NGOs drives meaningful progress towards a greener future. These partnerships often capitalize on each party’s unique strengths: large corporations bring extensive resources, technological expertise, and global reach, while smaller entities contribute agility, innovation, and deep community connections.
One compelling example is Google’s commitment to renewable energy through partnerships with utility companies and renewable energy developers. Google has invested in numerous renewable energy projects globally, including wind and solar farms, and has committed to powering its operations with 100% renewable energy.
Such partnership vividly demonstrates how collaborations between big and small players are necessary for tackling complex environmental challenges. They foster innovation and sustainability and pave the way for scalable solutions that benefit both businesses and the planet.
Green transition’s latest trends
Innovations in renewable energy, such as more efficient solar panels and wind turbines, are becoming increasingly cost-effective and widespread. For instance, the cost of solar photovoltaic cells has dropped by 90% in the last decade, making solar energy more accessible globally.
Besides, AI and ML integration in sustainability practices allows more accurate predictive analytics for energy usage and waste management, optimizing resources like never before. For example, Amazon actively uses AI to reduce packaging waste, monitor produce for quality, and improve energy efficiency in its cloud infrastructure.
Sustainable software engineering is crucial, so your company must invest in sustainable software engineering today to keep your business competitive. By adopting sustainability principles, you can create energy-efficient applications, reduce e-waste, and support a circular economy, meeting consumer demand for eco-friendly products and services while lowering your carbon footprint.
Next, Green cloud computing has become a significant trend in sustainability. How does moving to the cloud help sustainability? By moving to the cloud, companies reduce their energy consumption and carbon footprint. Cloud service providers use renewable energy sources to power their data centers, making cloud computing a more sustainable option than traditional on-premises IT infrastructure while reducing electronic waste.
Additionally, the rise of green finance is facilitating the shift towards a more sustainable economy. Investments in green bonds, which exceeded $500 billion in 2023, are funding projects that focus on renewable energy, energy efficiency, and sustainable infrastructure.
How to embrace green transition? Kitrum’s insights
At the Viva Technology 2024 conference, Kitrum gained valuable insights into the green transition, including the importance of sustainability, innovation, and collaboration. Thus, we are sharing with you today some key takeaways and tips on how to embrace the green transition effectively:
- Transform business models: First and foremost, you should embrace a mindset shift towards designing products for longevity and recycling, supported by incentives like lower interest rates and new revenue opportunities.
- Adopt Cloud Computing: Use cloud services to reduce the need for on-premises hardware, which can decrease energy consumption and e-waste. Kitrum can assist in migrating your infrastructure to cloud platforms, optimizing for energy efficiency.
- Implement Green Data centers: Transition to energy-efficient data centers that use renewable energy sources and advanced cooling technologies.
- Adopt circular economy solutions: Implement simple yet effective solutions such as subscription models and repair processes to drive demand and improve net-zero targets.
- Reduce e-waste: Implement software solutions to manage electronic waste through efficient recycling programs, refurbishment processes, and promoting the reuse of electronic components.
- Optimize asset utilization: Maximize the utilization of assets like vehicles to reduce structural waste, employing business models and technologies that increase efficiency.
- Integrate IoT for smart resource management: Develop software to integrate IoT devices for monitoring and managing energy usage, water consumption, and waste production in real time.
- Leverage Big Data for sustainability: Use big data analytics to identify areas for improving energy efficiency and reducing waste. Here, at Kitrum, we provide big data solutions to analyze and optimize your operations for sustainability.
- Focus on 3 pillars of circularity:
- Use better: Incorporate green materials in products.
- Use longer: Extend the lifetime of products.
- Use again: Recycle materials and components at the end of their life.
- Prioritize long-term strategies: Finally, you should transition from focusing on short-term financial gains to developing sustainable, long-term strategies that ensure ongoing success and resilience.
The green transition offers long-term benefits that transcend environmental impact, encompassing economic resilience and social well-being. No matter the size of your company, the change starts with each and every one of us. By making sustainable choices and investing in innovative green technologies, we can collectively drive the transformation needed for a sustainable future. Let’s embrace this opportunity to lead by example and ensure a thriving planet for future generations.
