Big data and the move towards the future of ecology are two notions that are closely linked. Companies need to respond to environmental challenges (global warming, greenhouse effect, scarcity of resources, etc.), be it for showing more transparency, producing less waste, seeking to adapt better to needs or having a more enlightened vision of environmental impacts in their economic choices. To achieve this, they can rely on data, but they need to properly research, collect and address it on a large scale.
Data, a precious source of information
Of course, digitalisation has an environmental data impact due to its carbon emissions and energy consumption (all Internet activities amount to 3% of the world’s carbon dioxide emissions). However, it also represents a tremendous development opportunity for the circular economy.
According to "Achieving Growth Within", a study conducted by the Ellen MacArthur Foundation, the circular economy, enabled by the technology revolution, could enable Europe to grow its resource productivity by up to 3% annually, generating a 600-billion euros saving on primary resources per year. It could lead to a 7-percentage-point increase in GDP as well as the creation of several hundred thousand jobs.
Furthermore, it is mainly because of the openness, accessibility and readability of data that the scope of possibilities has widened across all sectors. Data thus represents a valuable source of information for finding solutions and facing the many challenges posed by climate change (green mobility, energy efficiency, agricultural transition, etc.).
As Eddie Bonnal, Positive Impacts Digital-Data Director at ADEO Group, a platform of companies supporting home improvement, points out: "Exploiting data enables us to make decisions and take practical action. This implies rigorous governance so we can mobilise all the operational teams and together define a reference framework of processes with impacts to support our clients".
The importance of sharing data
In order for big data to benefit the future of ecology, it is essential for companies to share and use large-scale data. However, they first need to set up a trust framework to organise this large volume of data sharing given the high number of parties involved.
Digitalisation must be considered as a strategic tool by businesses for staying on top of their data, putting it into perspective and securing it. There are platforms where each stakeholder helps make the data accessible to others, as well as data centres that allow external data to be incorporated directly, while some solutions operate on a hybrid model.
One country is actually leading the way in this area: Estonia. It has become one of the most technically-advanced countries in the world. Using a data exchange network, one platform connects the IT systems of government agencies to the secure databases of other organisations, allowing users to access information held by other agencies instantly.
Estonia is making extraordinary progress by making data governance a keystone of the development model for digitalisation. This approach shows great potential and could be applied to the transition to more sustainable practices.
Data as a starting point for action
In terms of CSR policy, companies need to be able to quantify their environmental impact in order to reduce it: What is the visible or invisible waste in my company? How can I reduce it in my production process? What about my suppliers? What should I do with unsold products and product returns from customers?
Then, the priority is to structure the data so that it can be understood by all stakeholders as well as transversally. To illustrate this point, let’s take the example of the carbon footprint, one of the first steps towards a more sustainable future for companies. It is vital for them to quantify their CO2 emissions, providing a starting point for implementing actions that involve employees.
This is also the case for the circular economy. Because this model is quite complex when it comes to deploying it, the company’s strategy must be based on tangible data as well as being totally transversal. Like any new area, it has to be combined with various types of expertise. Companies will need to expand beyond simple awareness and training to truly enter into project mode, understand each other and define a common objective over a given period.
Data for the benefit of all
Using data properly and controlled sharing of it help respond to all stakeholders’ needs so that they can work towards a circular economy.
Data to fulfil customer needs
Consumers can influence markets when they demand sustainable and reliable solutions. A brand must now have a mission and can no longer ignore the environmental and social footprint left by its activities.
In this sense, it is worth noticing the increase in the quality of information about the impact of the waste produced as well as the repairability index where a product’s lifespan can be assessed, which is currently being researched on a Europe-wide scale. Generally speaking, regulations play a key role in defining the framework for the development of global initiatives.
In this area, Schneider Electric intends to make the most of its resources using the circular economy. This company has completely revamped its product life cycle management to minimise its carbon footprint. It has done this through setting up collection services for used products and exchange and repair services for defective products. It has even created its own "Circular Certified" label to draw attention to its products stemming from the circular economy (unsold goods, sales returns, refurbished products, etc.).
Data to create opportunities
It can happen that, in the long run, a brand that creates a listing system with the support of consumers will influence its market to adopt the same virtuous approach.
This has been demonstrated by the Dutch company SuperUse, which creates sustainable buildings from materials recovered from landfills. They built their own system to find out where to find this or that material they wanted by developing a computer tool based on Google Earth’s data. It is so effective that even their competitors have asked for a paid licence to use it online.
The digital transformation can thus stimulate the transition towards the future of ecology and the circular economy, mainly through the use of big data and digital solutions, such as artificial intelligence. This enables companies to embed the circular economy in business models during the design, production, consumption and reuse of products and processes. To get as many citizens committed as possible to the circular economy and preserving the environment, it is therefore crucial to take full advantage of this century’s black gold: Data.
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