Fourth Industrial Revolution technologies make environmental sustainability easier.

Lighthouses have established themselves as beacons of the Fourth Industrial Revolution (4IR), adapting to four durable shifts – agility and customer centricity; supply chain resilience; speed and productivity; and eco-efficiency. Among these shifts, eco-efficiency has emerged at the vanguard, its prominence fuelled by increased global concerns about the environmental impact of human activities. United Nations Secretary-General Antonio Guterres called the August 2021 report by the Intergovernmental Panel on Climate Change (IPCC) a “code red for humanity”.

This paper challenges the notion that environmental responsibility is inherently at odds with productivity and, by extension, profitability. Revolutionary sustainability impact lies with green technology and breakthroughs, but 4IR transformations that leverage digital and analytics tools can augment not only green technology but also current production methods by bolstering efficiency. By embracing 4IR- driven transformation, a viable kind of efficiency is possible: i.e., eco-efficiency, wherein sustainability and competitive excellence are not only compatible, but, in fact, interwoven.

Eco-efficiency is the outcome of 4IR technologies which, when directed to solve business problems, simultaneously boost productivity and sustainability. This concept of efficiency has three dimensions. First, it involves digital technology enabling data-informed actions across production and across the end-to-end value chain. Second, it demonstrates measurable improvements across performance indicators such as cost, agility, convenience and quality. Finally, it drives sustainability gains by reducing consumption, resource waste and emissions.

Organizations need first to understand the impact potential that lies with eco-efficiency in order to realize it. If companies are not looking for it – let alone measuring it – they might not fully realize the unclaimed sustainability opportunities hidden in the midst of their 4IR transformations. Opportunities are there. Data collected since the beginning of this project show half of Lighthouses (64%) report sustainability impact as part of their achievements enabled by 4IR transformation.

To address “code red for humanity”, companies must make sustainability part of their business agenda. Lighthouses prove there is room for synergy among technology, productivity and sustainability efforts in different industries; meanwhile, they show others how to accelerate their digitization efforts.

Companies that make a true commitment to environmental stewardship through pledges and corresponding action are setting the bar for sustainability. Those who couple that commitment with the full power of 4IR transformation, thus achieving step-change levels of impact, are leading by example and earning the new designation of Sustainability Lighthouses.