How can green technology enhance the resilience and sustainability of supply chains?

Social benefits of using green technology include contributing to and aligning with several Sustainable Development Goals (SDGs). On a national level, adopting green technology allows businesses to contribute to the Nationally Determined Contribution (NDC).

Today's warming world demands urgent action from companies. Embracing green technology offers multiple benefits which justifies the investment in the green technology. For example - Climate mitigation: reducing the overall carbon footprint of businesses and aligning with stakeholder expectations and regulatory requirements. Cost Savings: Technologies such as renewables and waste reduction via circular economy practices help reduce energy and material use which improves the bottom line. Enhanced efficiency: digitalisation and smart technologies help to optimise processes, leading to improved production pace, yield and quality. Talent: commitment to sustainability fosters a positive culture which helps to retain and attract talent.

Green technology offers significant benefits by reducing environmental impact through pollution and waste reduction, conserving natural resources, and decreasing greenhouse gas emissions. It promotes the use of renewable energy sources, enhances energy efficiency, and supports economic growth by creating jobs in sustainable sectors. Additionally, it contributes to public health improvements by reducing pollution-related diseases and enhances energy security by reducing dependence on finite resources. By driving innovation and providing consumers with environmentally friendly choices, green technology plays a crucial role in combating climate change and promoting sustainable development for future generations.

By implementing sustainable practices and using eco-friendly materials, supply chain companies can reduce their carbon footprint, minimize waste, and conserve resources. This can help improve the company's reputation and brand image, as consumers increasingly demand environmentally conscious products and services. In addition, sustainable practices often lead to cost savings in the long run, as they can result in more efficient and streamlined operations.

Creating new opportunities for green products, services, and solutions can be achieved by leveraging sustainable technologies, fostering eco-innovation, and emphasizing circular economy principles. Additionally, raising awareness through education and marketing about the benefits of green choices can drive consumer demand. Collaborating with regulatory bodies to create favorable policies and incentives also encourages the adoption of sustainable practices.

Green technology encompasses a range of innovations aimed at environmental sustainability, including solar and wind energy for renewable power, hydroelectric and geothermal systems for clean electricity, biofuels and biomass for alternative energy sources, and electric and hybrid vehicles to reduce fossil fuel use. It includes green building technologies for energy efficiency, rainwater harvesting to conserve water resources, recycling and waste-to-energy systems to minimize landfill use, and smart grid technology to enhance energy distribution and efficiency.

While green technology offers environmental benefits, it also offers economic gains. Here are two examples from the agricultural and tourism sectors: In the agricultural sector, precision agriculture reduces waste and improves yields, potentially increasing profits. In tourism, green practices can lower energy and operational costs, attracting eco-conscious travellers.

Green technology can contribute to various positive environmental outcomes, including - climate mitigation, resource conservation and pollution reduction. Here are some examples: Circular Economy: Keep materials in use via closed-loop systems, like recycling plastic into new packaging. Low-Carbon Materials: Such as green steel, low-carbon concrete, and sustainable alternatives like timber. Renewable Energy: Harnessing nature's power with solar, wind, hydro, geothermal, and tidal sources for clean electricity. Energy Efficiency: Improving energy use intensity with smart grids, efficient appliances, and optimised buildings. Digital Optimisation: Combining data and connectivity to streamline processes and improve overall efficiency.

Staying within the context of supply chains, one example is SPRK.global: They have developed an AI-driven B2B platform aimed at reducing food waste. Their approach supports the digitalization of the food supply chain, promoting systematic utilization of excess food. With this SPRK.global not only assists in combating climate change by preventing unnecessary CO2 emissions but also aligns with economic incentives by reducing disposal and procurement costs.

Green hydrogen sustainability is rooted in its production from renewable energy sources, like wind and solar, which minimizes carbon emissions. It offers a clean alternative for industries and transportation, reducing reliance on fossil fuels. The scalability of green hydrogen can support energy storage and balance renewable energy supply. Additionally, it promotes energy independence and aligns with global climate goals.

Adoption of green technology can be tricky in many ways. These 3 come out top for me: Costs: Adoption of greener fuels or closed-loop materials management processes could mean hefty investments without necessarily translating into improved margins in the short run. Developing ecosystem: Many green technologies are nascent and lack a mature ecosystem and supply chain. For example, adoption of methanol powered ships would only be meaningful if the supply chain can provide the green methanol needed. Interface risks: this is a basket of risks in itself and can extend to infrastructure, data and organisational layers. For example, lack of common standards (such as safety) and skills gaps to handle the green technologies per se.

Energy storage is still a challenge with green technologies. The issue lies in the irregular nature of these renewables. Storing excess energy generated during low-demand periods for use during peak demand or times with low sun/wind is still expensive.

Green technology faces challenges including high initial costs, technological limitations, and integration difficulties into existing infrastructures. Geographic and resource availability constraints, alongside economic and policy barriers, can hinder adoption rates. Environmental trade-offs, such as the production impacts of solar panels and wind turbines, and the dependency on critical materials for batteries. Moreover, public awareness and acceptance issues, along with the need for effective recycling and disposal methods for end-of-life products, complicate the transition to green technology.

Green technology faces several challenges, including high initial costs and the need for substantial investment in research and development. There are technical hurdles in efficiency and scalability, especially for emerging technologies like green hydrogen. Regulatory and policy frameworks are often lacking or inconsistent, which can hinder adoption. Additionally, there is a need for increased consumer awareness and market acceptance to drive demand for green products and services.

Adopting sustainable practices and eco-friendly materials requires significant investment in new equipment or technologies, deterring some companies. However, while there may be higher upfront costs, these investments can lead to long-term savings and benefits. For example, energy-efficient technologies reduce energy costs, while recycling and waste reduction practices minimize waste disposal expenses. Additionally, companies prioritizing sustainability and environmental responsibility can often improve their reputation and brand image, leading to increased customer loyalty and sales.

Regardless of what those green technologies are, they always have an impact on business resilience. A robotic data platform helps to keep better ESG data and allow companies to be resilient by being more aware of its own environmental performance. Renewable energy tech helps to democratise energy access and enhance security. Hence more security and resilience. Carbon and other pollutants capturing solutions allow companies to operate more sustainably and at the right side of the regulations. Again more security and resilience.

Strategies must encompass government support through policies and incentives, significant investment in research and development, and fostering public-private partnerships. Education and awareness initiatives are crucial for building public acceptance, while sustainable infrastructure development supports the practical deployment of these technologies. International cooperation enhances the global exchange of innovations, and market-based mechanisms incentivize environmentally friendly practices. Additionally, fostering innovation ecosystems encourages the development of new solutions, and community engagement ensures that green technologies meet local needs.

On the approach to the evaluation and decision on choice of decarbonisation projects, I recommend the use of a marginal abatement cost curve (MACC). A MACC is a chart comprising a series of columns each representing a project which are evaluated and plotted in order of their cost-effectiveness ($/tCO2e) in abating GHG emissions and the width showing abatement potential (tCO2e/year). As all costs (and savings) are normalised into present value and abatement normalised into annual basis, MACC gives a snapshot of the best projects either in terms of cost-effectiveness or highest GHG abatement potential. Most likely, there will be low lying fruits which are immediately deployable, while longer-term big levers are strategised & developed.

I suggest a three-step approach following an internal review of the types of green technology that would broadly fit the company’s needs. Remember, technology is a means to an end and should not be deployed for its own sake.  1.  Broad scanning of the universe of green technology solutions available – leverage on published online resources, white papers, research institutes and industry groups. 2.  Develop a long list of potential solution providers and work your way to filter them to a shortlist to facilitate further engagement and exploring potential collaborations. Consider including incubator and accelerator programme funded startups among the initial lists. 3.   Explore available funding, tax incentives as well as green financing. 

Resources include financial support from governments, private investors, crowdfunding platforms, educational and informational assets like academic research and industry reports and technological tools and laboratories for innovation. Skilled professionals and a trained workforce are essential for research and development. Policy and regulatory guidance ensure safety and community networks foster collaboration. Additionally, market insights and infrastructure for production and deployment facilitate the commercialization of sustainable solutions. Supportive ecosystems, such as technology incubators and accelerators, are also vital, providing the necessary environment for green technology ventures to thrive.

There are other levers that can be used to augment green technology adoption. 1. Green advocacy can help to tilt policies, staff behaviour, supplier practices and encourage ecosystem collaboration towards environmental protection and sustainable outcomes. 2. The adoption of a circular economy approach which focuses on minimizing waste and maximizing resource utilisation would translate to designing / re-designing products and supply chains for durability, repairability and recyclability. A close-loop circular economy would require tight collaboration among stakeholders (e.g., implementing a reverse logistics system). I thought that these 3 levers interplay well together and collectively contribute to more sustainable supply chains.