Headline: RIFS Blog

Sustainability does not simply occur as a by-product of digitalization. Firms should aim to increase sustainability levels in their supply chain – whether through digital or non-digital means.

To take stock of industry’s real-world experience with digitalization to date and the expectations that exist with regard to sustainability impacts, the research group “Digitalisation and Sustainability Transformations” conducted an international study in China, Brazil, and Germany. Their results clearly show that the moderate gains made thanks to digitalization lag far behind the high hopes that many hold for it.

The digital transformation is in full swing, touching economies around the world. This far-reaching transformation is distinguished by three change processes affecting value creation models, information flows and resource flows – the latter two will be examined more closely in this post.

Many countries are riding a wave of digitalization in the wake of the coronavirus pandemic, with office staff working from home, friends meeting on video conferencing platforms, online trade booming and governments rolling out tracing apps to track infection chains. However, developing and emerging countries could suffer setbacks in their efforts to strengthen their economies and societies through the adoption of digital technologies. Now more than ever, states must double down on efforts to ensure a globally just digital transition.

The issue of digitalisation and sustainable development has – finally! – reached a wider public. When IASS launched a research project on digitalisation five years ago, only a few researchers were concerned about the relationship between the digital transition and sustainability. However, the number of publications and events on this topic has increased noticeably, especially in the last year. In April of this year, the German Advisory Council on Global Change (WBGU) then presented its flagship report entitled "Towards our Common Digital Future". Just a few weeks later at the annual re:publica conference the duo of digitalisation and sustainability was already inseparable. There, the Federal Minister of the Environment, Svenja Schulze, presented a green paper outlining a digital policy agenda for the environment.

The term Industry 4.0 has been bandied about increasingly since it was established in 2011. Also referred to as the fourth industrial revolution, Industry 4.0 describes the growing use of digital technologies to link manufacturing technologies and facilitate continuous real-time data exchange. These manufacturing systems are based on interconnected cyber-physical systems with the capacity to independently organize and optimize their performance. Industry 4.0 promises to fundamentally transform manufacturing industry.

Wouldn’t it be a big leap forward for climate and environmental protection if we could let a machine, a powerful artificial intelligence (AI) manage our consumption of natural resources? Remind – or even compel – us to buy local food instead of products from overseas? Tell us to take the bike instead of the car to work when air quality levels are low? Shut off streaming TV series when we have exhausted our weekly carbon budget? Or maybe even advise the government on the conversion of urban areas into much-needed cropland or the preservation of wilderness areas?