Organisations are facing a dilemma of how to achieve sustainability goals while prioritising the current global business and economic landscape challenges, according to a global study commissioned by Avanade, the leading Microsoft solutions provider. However, almost all (91 per cent) believe that digital innovation is important to achieve ESG/sustainability objectives.

The study* surveyed 1,500 business leaders from Australia, the United States, Canada, United Kingdom, Brazil, Japan, Italy, Germany and Ireland. Of these, 211 respondents were from Australia and the results showed that:

• The top three drivers of sustainability in organisations in Australia are:
  • Business innovation and growth (24.5 per cent)
  • Customer expectations (22 per cent)
  • Operational efficiency (15 per cent)
• In Australia, the top three challenges organisations face in achieving sustainability objectives:
  • Higher business priorities (18 per cent of organisations)
  • Fear of economic slowdown (17 per cent of organisations)
  • Lack of clarity on sustainability regulations (17 per cent of organisations)
• More than half (51 per cent) of Australian organisations believe that digital innovation is ‘very important’ to achieve ESG/sustainability objectives, compared to 63 per cent globally.
• Even though 34 per cent of organisations in Australia are using cloud computing to accelerate sustainability innovation, only 11.5 per cent are using artificial intelligence (AI).
• Only 38 per cent of Australian organisations are ‘very confident’ that they have the digital capabilities and culture to reach their ESG targets and government regulations on schedule.

To help organisations overcome their toughest sustainability challenges, Avanade has two digital solutions – Avanade Sustainability Technology Accelerator and Avanade Sustainability Quick-Start – that combine data, green software and the Microsoft Cloud for Sustainability to see results in as little as a month.

“Findings of this research validate that technology can be the enabler for realising environmental, social and governance (ESG) goals. There is a strong appetite for innovative tech - almost all organisations view digital innovation as key to achieving sustainability objectives. The next couple of years will be a crucial period where the enablement of digital technologies like cloud and artificial intelligence (AI) will enable Aussie organisations to unlock their next phase of growth. With our digital-enabled sustainability solutions and expertise, Avanade is well-positioned to help drive long-term sustainability strategies for Australian organisations.” - Lourens Swanepoel, Regional Data & AI Lead and Sustainability Executive, Australia, Avanade.

“The results of this research validate that while everyone is talking about sustainability, leaders are challenged to know how to use digital technologies to take practical actions towards achieving their ESG goals. It’s understandable that the ambitious sustainability targets can seem overwhelming, especially as leaders are dealing with issues they’ve never faced before and in the context of global economic uncertainty. Here’s the good news: It’s more impactful to focus on continually evolving, rather than the end goal. Identifying and prioritising practical actions is key. For example, we are working with clients to help them apply green software principles to start optimising their IT systems and operations to consume fewer resources and reduce the carbon footprint of their organisation.” – Jillian Moore, Avanade Global Advisory and Sustainability Lead.