Technology has a reputation of negatively impacting the environment, but it can in fact be used as a tool to improve your business' sustainability credentials. By aligning your business software with green goals, you can reduce environmental impact and drive meaningful change. This approach not only benefits the planet but also enhances your company's reputation and operational efficiency.
Ahead of the net-zero deadline, businesses are increasingly recognising the value of digital solutions to meet sustainability goals. From improving energy efficiency to optimising resource use, intelligent applications can transform traditional business models. Using these tools effectively helps you achieve a positive environmental impact and positions your company as a leader in sustainability.
With the right strategies in place, you're equipped to make a significant difference while maintaining a competitive edge.
Business' environmental responsibilities
Businesses have existing environmental responsibilities they need to adhere to, and these requirements will only grow as the net-zero deadline looms. Businesses should not only be aware of these regulations, but they should also understand how they can use tech to measure their progress and compliance with regulations.
Current environmental regulations
Currently, businesses must adhere to the requirements in The Climate Change Act 2008 and The Environment Bill 2021. As part of these acts, businesses must:
- conduct environmental impact assessments
- reduce their carbon emissions to reasonable levels
- comply with waste management regulations, which includes storing waste securely and implementing recycling facilities
- eliminate or reduce activities that pose health risks, such as emitting excess smoke, fumes, gases, dust or odours
- store and dispose of electricals and hazardous waste per governmental guidelines
- refrain from polluting waters.
Business reporting requirements
As well as obligations around protecting the environment and reducing their carbon footprint, businesses face some mandatory and voluntary reporting requirements around their activities. These include:
- Streamlined Energy & Carbon Reporting (SECR) - this reporting requirement was introduced in 2019 alongside the net zero legislation and applies to large companies, including those listed on the London Stock Exchange and large LLPs.
- Energy Savings Opportunity Scheme (ESOS) - this assessment and reporting obligation applies to businesses with over 250 employees or a turnover of £42m+, and requires businesses to assess their energy usage and identify sustainable technology and energy alternatives.
- UK Emissions Trading Scheme (UK ETS) - this legislation applies to energy-intensive businesses, aviation companies and the energy sector, and caps the level of greenhouse gases businesses can emit, as well as requiring reporting on emissions output and renewable energy usage.
In the near future, the UK government will be adopting the IFRS Sustainability Disclosure Standards. This will require businesses to disclose how their financial performance and strategies are affected by sustainability issues and climate-related risks associated with their organisation, as well as some sector-specific requirements.
How Dynamics 365 can support businesses with reporting
Environmental sustainability reporting requirements are important as we move towards becoming a net zero nation, but they can place a considerable strain on already-busy businesses. But they don't need to take up a lot of your time - in fact, these reporting requirements can be streamlined within Dynamics 365.
Here’s an introduction to Dynamics 365 BC sustainability and why Microsoft has added this powerful functionality to its solution:
https://www.youtube.com/watch?v=_ynMUzh956w&list=PL1FESh9FqyhQMW97Xv5buXYEO-rVreXTc&index=3
Sustainability journals
The sustainability journals feature allows you to track the amounts of energy your business uses through ledger entries. You'll be able to add data based on formulas and input parameters, as well as manually adding emissions.
Sustainability reports
Easily produce standardised reports in Dynamics 365. The three standard reports that are currently available are total emissions, emissions per facility and emissions by category, all of which will help you fulfil your regulatory requirements for reporting.
Sustainability role centre
Within your Dynamics 365 Business Central account, you'll be able to see a dashboard with all the key data related to your business' sustainability efforts. This includes your business' daily and monthly emissions, your emissions against your targets and how you're meeting your KPIs.
Find out more about how Dynamics 365 supports your sustainability reporting
This video covers how to use Dynamics 365 BC Sustainability to fulfil your tracking and reporting obligations:
https://www.youtube.com/watch?v=uan4dV9eVCA&list=PL1FESh9FqyhQMW97Xv5buXYEO-rVreXTc&index=1
Optimising business software for sustainability
Achieving sustainability in business software requires a strategic approach that considers both digital and physical technologies. Business leaders can reduce environmental footprints and adhere to necessary regulations while integrating sustainable products and practices.
Using cloud computing for environmental footprint reduction
Using cloud computing can significantly reduce your company's environmental footprint. By moving from traditional on-site servers to public cloud platforms, you not only decrease physical infrastructure but also cut down on energy usage.
Cloud providers design data centres to be highly efficient, often focusing on lowering carbon emissions through advanced technologies. You enjoy a seamless cloud experience while benefiting from energy savings and reduced greenhouse gas emissions. Make cloud computing part of your sustainability objectives to enhance your business' eco-friendly impact.
Integrating sustainable products and practices into business conduct
Adopting sustainable products and practices helps you align your business with environmental goals. Incorporate eco-friendly practices like optimising software development processes to reduce energy consumption. Use technology solutions designed for sustainability, making your operations more resource-efficient.
Implementing these sustainable products can boost your reputation as a sustainability leader in your industry. Ensure that your business conduct reflects these values by prioritising sustainability in daily operations. This strategic choice not only helps reduce negative impacts but also positions your company as a forward-thinking entity.
Businesses can also purchase carbon credits to offset their own emissions, which can be purchased and recorded in Dynamics 365. This is one of many recently added features in BC Sustainability:
https://www.youtube.com/watch?v=NYG4pOtW-Xw&list=PL1FESh9FqyhQMW97Xv5buXYEO-rVreXTc&index=2
Frequently asked questions
Businesses today are exploring how to align digital strategies with sustainability goals. They focus on integrating green technologies and using software solutions to manage sustainability metrics effectively.
How can businesses integrate sustainable practices with current technology systems?
To integrate sustainable practices, you can assess your current IT infrastructure. Identify areas where energy consumption can be reduced. Adopting cloud-based solutions reduces the demand for physical servers and extends the lifecycle of existing hardware. You can also use your software solutions, like Dynamics 365, to measure your business' performance against your sustainability goals.
In what ways can green technology contribute to a firm's ESG commitments?
Green technology can enhance your environmental, social and governance (ESG) commitments. Implementing energy-efficient systems reduces your carbon footprint and shows a commitment to environmental responsibility. This improves both your corporate reputation and operational efficiency.
How does investing in sustainable technology impact long-term business efficiency?
Investing in sustainable technology boosts long-term efficiency by cutting operational costs. Modern systems lower energy usage and require less maintenance. Over time, these savings increase profitability while supporting a sustainable business reputation that strengthens customer loyalty.
What steps should companies take to align their digital strategies with sustainability goals?
To align digital strategies with sustainability, start by setting clear sustainability goals. Incorporate eco-friendly practices in every project phase. Regularly update your technology to include features that support these goals, and train employees on sustainable best practices.
What is the role of software solutions in tracking and managing a company's sustainability metrics?
Software solutions play an essential role in tracking sustainability metrics efficiently and accurately. Systems like Dynamics 365 provide dashboards to monitor energy use, waste management and carbon emissions. This data helps you make informed decisions and adjust strategies to enhance sustainability performance effectively.