SOME 81% of Philippine businesses have set sustainability targets, but 55% still use manual methods to measure their progress towards these goals, according to a report by Alibaba Cloud, the cloud computing subsidiary of Alibaba Group.
A survey report titled “Tech-Driven Sustainability Trends and Index 2024” commissioned by Alibaba Cloud showed that businesses still rely on manual measurement to track their progress on their goals, emphasizing the need to improve their understanding of digital tools.
The survey covered 1,300 business leaders and senior management across 13 markets in Asia, Europe, and the Middle East from various industries and was conducted from May 10 to June 19 this year.
“The survey findings underscore the urgent need for organizations to reassess their sustainability measurement methodologies and embrace advanced technological solutions like cloud-based platforms and AI (artificial intelligence) services,” Selina Yuan, president of International Business at Alibaba Cloud Intelligence, said in a statement.
These digital tools help streamline the measurement process and provide insights that companies can use to improve their sustainability progress, she said.
“As a dedicated cloud service provider, we are committed to providing innovative and AI-powered solutions… to enable enterprises to effectively measure and analyze carbon emission and energy consumption to advance their sustainability goals. By addressing existing barriers and investing in such advancements, organizations can better align their sustainability initiatives with established targets,” Ms. Yuan added.
The report showed that over 50% of businesses surveyed still rely on traditional manual methods to measure their sustainability performance, including spreadsheets and e-mails.
“All markets, except for Hong Kong (29%), South Korea (43%), and France (49%), exceeded the 50% threshold, with the highest percentages in the UAE (68%), Saudi Arabia (61%), and the UK (60%),” it said.
“Meanwhile, only around a third of businesses use digital software tools, including cloud platforms, for sustainability progress and measurement. Indonesia (59%), Singapore (48%), and Japan (43%) demonstrate a higher adoption of cloud-based solutions, while the average usage is at 38%,” it added.
According to the report, 92% of businesses with sustainability goals have emission reduction targets, but only a third have net-zero commitments with science-based targets (SBTs).
The highest adoption of SBTs was seen among firms in emerging Asian markets like the Philippines, Indonesia, Malaysia, and Thailand at 39%, Alibaba Cloud said.
“Around half of the businesses with sustainability targets cite driving growth (56%), compliance with regulations (54%), and a robust corporate purpose (49%) as their key motivations for establishing targets. Among all markets, Indonesia tops the list with 70% of businesses prioritizing growth, Saudi Arabia leads with 73% emphasizing compliance, and the UAE excels with 61% prioritizing a solid corporate purpose,” it said.
“In the Philippines, compliance with regulations tops the list (60%), business growth (59%), and strong corporate purpose (45%), drive businesses to set up their sustainability targets,” it added.
Meanwhile, 83% of firms in emerging Asian markets believe that technology is crucial for achieving global sustainability goals, second only to the Middle East at 86%. It added that 78% of all firms surveyed said adopting digital technologies like cloud computing and AI will help in their progress.
Still, some businesses admitted that they lack understanding of how technology could help them achieve sustainability, Alibaba Cloud said.
“As businesses strive to enhance their sustainability efforts, practical digital tools are necessary. The survey emphasizes the necessity for companies to improve their understanding of digital tools, as 59% of respondents acknowledge a gap in their knowledge regarding how technology can help achieve sustainability goals. This sentiment is particularly evident in Singapore (83%), Hong Kong (75%), and Thailand (70%),” it said. — A.R.A. Inosante
