By: Marwa Abbas, General Manager, IBM Egypt

With the growing impact of climate change on our planet, a monumental call to action is needed for businesses globally to put sustainability at the heart of their business strategies. A United Nations report shows that current business targets will only cut emissions by 5-10% by 2030. In order to reach Net Zero by 2050, however, this should fall by 45%. So, what is the solution? 

A company’s assets, such as buildings, energy grids, vehicles and industrial equipment, are key contributors to today’s sustainability challenges. Organizations can tackle this by building more intelligent factories and offices that are more energy efficient and reduce emissions. Digitalization, AI and the Internet of Things can all help businesses develop these smart assets. 

This alone, however, isn’t enough. Businesses and policymakers must also ensure they are working together so that infrastructure and assets remain connected across the traditional boundaries of corporate enterprise.

Nowadays, the world economy is facing major challenges, foremost of which are supply chain disruptions, inflation, and the aftermath of the Covid-19 pandemic. However, with every challenge comes an opportunity to do things better, more sustainability and to employ cognitive technologies and innovations in order to stay ahead of the curve, and that’s where we’re directing all our efforts.


Intelligent infrastructure = smarter energy consumption

In an IBM’s annual CEO study titled ‘Own your impact: Practical pathways to transformational sustainability’, which surveyed 60 CEOs in Egypt, nearly half (47%) of respondents stated technology infrastructure, cyber risk (42%), and sustainability (45%) among their greatest challenges to achieving their environmental sustainability strategy.

There are several ways that intelligent asset management can make a difference to organizations, especially when it comes to reducing and managing energy consumption. Software can now accurately predict how much energy assets require, be it a water pump or a lighting system, which ultimately means that companies can dial up and dial down energy requirements. At IBM for example, the implementation of an IoT and analyticsacross190 buildings helped identify energy conservation opportunities. This resulted in the avoidance of 3,400 MWh of energy and USD 356,000 in expense. These savings are critical, especially amidst the current energy crisis.

Businesses can also utilize weather data to better predict their energy demand and reduce waste so that they don’t purchase more power than they need. For example, IoT data and AI combined with proprietary and third-party geospatial information can help monitor, predict and avoid disruptions on the road. This helps to plot the most efficient routes and reduce CO2 emissions from vehicles. The benefits that can be reaped from more intelligent assets can have vastly positive impacts on everyday life and the societal benefits are huge.

Investment critical to driving the green transition

To truly unlock the benefits from smart assets, investments must be made if organizations look to reap the benefits and decarbonizes as quickly and efficiently as possible. Some areas where this investment is needed urgently include power grids, which are outdated in many countries and are a barrier to the integration of renewable energy sources. These grids are essential to the wider green energy transition journey. 

Investment in civil infrastructure such as buildings and transport is also key to make the green transition at the scale and speed needed. Denmark has already made strives in implementing IoT sensors, AI and blockchain for intelligent grid optimization. And recently EY began working with IBM to support the decarbonization journey in asset-heavy industries too. At a time of economic turmoil, investment can seem like the last thing that businesses should be prioritizing. But that mindset needs to shift. Without the initial investment in sustainable infrastructure, the green transition will be hindered, and we risk moving further away from net zero goals.


Collaboration from all key players

It’s undeniable that intelligent infrastructure can help business, industries and countries meet their net zero goals. Technologies such as AI and IoT can most certainly help enable smarter assets that can dramatically improve energy consumption. But the full benefits of smart infrastructure and assets can only be achieved by connecting them across the traditional boundaries of corporate enterprise. Harnessing the true potential for technology in the energy transition requires collaboration and investment across industry and government.