5 areas in which technology will support sustainable development in the coming years
Artificial intelligence (AI) is poised to play a pivotal role in accelerating the necessary transformations for achieving a climate-resilient future. DXC Technology, a prominent global IT services provider, has identified five key areas where the integration of intelligent software is set to expedite efforts within vital industries to promote sustainable development.
Is digital product passports a standard in the EU?
Shifting towards a competitive global circular economy necessitates a shift in business models that emphasizes resource efficiency, fosters recyclable product development, and repurposes waste into new offerings. A critical aspect of this transformation involves establishing digital business ecosystems that facilitate informed decision-making.
A significant obstacle in the transition to a circular economy is the effective collection and dissemination of product data across its entire lifecycle. To address this challenge, digital product passports (DPPs) have emerged as a potential solution. A DPP is a digital document containing comprehensive information about a product, including its composition, origin, environmental impact, and usage history.
According to Michał Burda, CEO and country Managing Director of DXC Technology Polska, digital passports offer the potential for companies to enhance their product management throughout the supply chain, ultimately leading to cost optimization. While some companies are already utilizing this technology, it is not yet a universal standard and may take time to become one. However, the European Union is leading the way in this field, suggesting that DPP regulations are likely to cover a majority of products in Member States, including Poland, by 2030.
Artificial intelligence is the basis of tomorrow’s agriculture
The agricultural sector is another area where artificial intelligence has a huge role to play. MarketsandMarkets analysis says that the use of AI in agriculture is a global market for products and services that will grow from USD 1.7 billion in 2023 to USD 4.7 billion by 2028. With its help, it is possible to improve the management of soil and water conditions and predict potential crop diseases before they occur. Technology not only affects the production of individual farms but also the functioning of the local community, data sources generate valuable insights that can positively influence policy decisions at the local level.
A good example of this type of activity is the Ministry of Agriculture, Fisheries and Food (MAPA) in Spain, which, with the support of DXC and the use of AI, is working to transform the Spanish agricultural sector. One project is using artificial intelligence algorithms to accurately predict forest fires by evaluating environmental data sources collected by MAPA and its partners. The second, based on artificial intelligence, helps farmers make more informed decisions about what crops to plant and where.
Increasing the profitability of renewable energy
According to McKinsey’s projections, the global renewable electricity capacity is expected to surge by more than 80 percent by 2026 compared to the levels of 2020. For instance, Europe is anticipated to integrate around 36 million renewable assets like solar panels, electric vehicles (EVs), and energy storage into its grid, a number projected to rise to 89 million by 2030.
In this transformative landscape, artificial intelligence (AI) and analytics software play a pivotal role in managing decentralized energy sources, handling surplus electricity, and preemptively identifying potential grid vulnerabilities before they escalate into major issues. Innovations in this realm also enable utilities to dynamically redirect power to areas with immediate demand.
Michał Burda, CEO and country Managing Director of DXC Technology Polska underscores the necessity for utility giants to reevaluate their operational models and invest in contemporary cloud-based IT infrastructure. This will facilitate efficient data management and analytics across their organizational landscape, enabling them to navigate this evolving energy landscape more effectively.
Software-defined electric vehicles
Both U.S. and European regulators are actively assessing and enacting policies aimed at curbing the sales of new internal combustion engine (ICE) cars. A significant number of the world’s leading automakers, numbering eighteen, have already initiated or pledged a complete or substantial transition to electric vehicle (EV) manufacturing in the near future.
This transition to electric mobility is expected to feature software-defined vehicles (SDVs), ushering in a new era of efficient vehicle management with a strong emphasis on environmental sustainability. SDVs enable intelligent routing and energy optimization, addressing challenges related to charging range and capacity. This advancement aligns well with the broader push toward electric mobility and the need to mitigate the environmental impact of traditional vehicle technologies.
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Energy-efficient financial systems
The shift towards environmentally responsible practices is a primary focus for banks and financial service institutions. The global green finance market has experienced remarkable growth, escalating from $5.2 billion in 2012 to surpass $540 billion in 2021. Central to these endeavors is the adoption of more sustainable software, enhanced algorithms, and refined data processing methods.
A noteworthy development in this direction is the participation of over 120 banks in the Net-Zero Banking Alliance, a collaborative initiative led by the industry and convened by the United Nations. These banks have made commitments to align their investment and lending portfolios with the aim of achieving net-zero emissions by 2050. In addition to expanding environmentally conscious portfolios, the financial services sector is actively reducing energy consumption through advancements in data center efficiency. These enhancements encompass strategies like data deduplication and compression, which optimize data storage layout and performance while concurrently curtailing power usage.
Sustainability becomes the new standard
“Organizations must integrate sustainability into their system architectures, making it an integral part of their business offerings and contractual agreements. It’s reasonable to anticipate that sustainable development will soon become a new norm, and software will play a pivotal role in shaping a climate-resilient future,” concludes Michał Burda.
About DXC Technology
DXC Technology (NYSE: DXC) is a leading provider of solutions for managing critical systems and operations on a global scale. With a focus on modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private, and hybrid clouds, DXC supports businesses in various sectors. Renowned for its services, the company helps the world’s largest corporations and public sector entities achieve enhanced efficiency, competitiveness, and customer experiences. For further insights into how DXC delivers business excellence to its customers and partners, you can visit their official website at DXC.com.
Source: Press release