Some 78% of businesses believe that technology will play a ‘crucial’ in enabling them to meet their sustainability targets, a new study by Alibaba Cloud has found.
This is highest in markets such as Malaysia (89%), Saudi Arabia (87%), Singapore (86%) and France (86%), the data showed.
The study, Tech-Driven Sustainability Trends and Index 2024, which was commissioned by the digital technology and intelligence arm of Alibaba, found that 80% of firms across Asia, Europe and the Middle East have put in place sustainability targets, but 53% continue to rely on manual methods to measure progress.
Elsewhere, of those that have set sustainability targets, 92% have set emission reduction goals, although just a third have committed committed to net-zero commitments with science-based targets (SBTs).
The highest adoption rate for SBTs is seen in emerging Asian markets (39%), followed by Europe (35%), developed Asian markets (30%), and the Middle East (22%).
Driving business growth (56%), compliance with regulations (54%), and a strong corporate purpose (49%) are cited as the key motivational factors by businesses for setting targets.
The need to drive business growth was highest among Indonesian firms (70%)m, while Saudi Arabia-based firms emphasised compliance (73%), and the UAE prioritised a strong corporate purpose (61%).
Some 78% of the businesses surveyed believe that adopting digital technologies such as cloud computing and AI will accelerate progress toward meeting sustainability goals, with Saudi Arabia leading at 90%, followed by the UAE (84%) and Singapore (81%).
Obstacles to achieving targets
At the same time, the study found that businesses face multiple barriers to achieving their sustainability targets, with budget constraints identified as the primary obstacle by 29% of respondents, particularly in the Middle East (41%) and Europe (31%). Other notable challenges include complex supply chains (28%) and technology limitations (23%).
Notably, organisations that have yet to set targets cite budget constraints (32%) and technology limitations (29%) as their main barriers to becoming a more sustainable business.
‘An urgent need’
“The survey findings underscore the urgent need for organisations to reassess their sustainability measurement methodologies and embrace advanced technological solutions like cloud-based platforms and AI services,” commented Selina Yuan, president of international business, Alibaba Cloud Intelligence.
“These digital tools not only streamline the measurement process but also provide actionable insights that can drive meaningful progress for sustainability,” she added, outlining that Alibaba’s Energy Expert solution enables businesses to measure and analyse carbon emission and energy consumptions.
Alibaba Cloud’s survey encompassed 13 markets in Asia, Europe and the Middle East, was carried out from May 10 to June 19, 2024, and gathered insights from 1,300 business leaders and senior management executives. Read more here.
