Business and the Fourth Wave of Environmentalism
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Business and the Fourth Wave of Environmentalism Findings from Environmental Defense Fund’s 2019 Fourth Wave Adoption Benchmark Survey Introduction What is the Fourth Wave? Consumers, investors and he Fourth Wave of innovation to increase employees are using their influence Environmentalism sustainability and the to demand solutions to our global T is how we bottom line. climate crisis. From calling for describe the potential for reduced carbon emissions to technological innovation This report reflects what we supporting companies that use to supercharge and scale heard from 600 U.S. senior sustainable products, they are companies’ sustainability business leaders — from making it clear that improving the efforts. Our awareness chief executives to directors, world around us is a top priority — of environmental issues, all at companies with $500 and business leaders are realizing and our ability to address million or greater revenue that what’s good for the planet can those issues, has slowly — about the relationship also be good for their bottom line. evolved over the last century between business, technology from land conservation to and sustainability in their Executives may not know it, but protecting people and nature organizations. Second-year they are well poised to deliver through policymaking, and trends show that business on these demands. They are eventually to finding market- leaders are increasingly already investing in cutting edge- based solutions to reduce familiar with emerging technologies, such as robotics environmental impact. Today, technologies, are weaving and data analytics, to drive change comes a lot faster. sustainability goals more business growth and maintain Fourth Wave technological deeply into business strategy, their competitive edge. But they innovations, including artificial and yet aren’t fully connecting are missing an even greater intelligence, automation, the dots between how the opportunity to leverage these blockchain, data analytics and innovative technologies they same technologies to lessen sensors, allow businesses to use to run their companies their environmental impact. lower resource consumption, can also be their best decrease pollution and solutions for more meaningful Data from the Environmental carbon emissions, and sustainability. Defense Fund’s second annual reduce waste — all while also Fourth Wave of Environmentalism boosting their bottom line. In short: CEOs are missing Adoption Benchmark Survey show a golden opportunity to turn that while 92% of leaders agree The urgency and opportunity their technology investments that new and emerging Fourth are stronger than ever before into a one-two punch that Wave innovations can boost both for business leaders to raise delivers business results and economic and environmental the bar for sustainability. protects the planet. Read on results, only 59% are actually Our 2019 report illuminates for how executives can lead investing in new technologies how top decision-makers their industries in meeting today with that dual goal in mind. across five sectors—retail, stakeholders’ demands by manufacturing, energy, delivering results that boost technology and finance — revenue and sustainability. can navigate technological There’s a 33-point opportunity gap for leaders to accelerate their sustainability initiatives by applying the Fourth Wave innovations they already use. Business and the Fourth Wave of Environmentalism // 2019 About the Fourth Wave Adoption Benchmark Survey Our second annual survey KRC Research explores how the Fourth Wave conducted an About is taking hold in businesses anonymous online across the United States. Using survey from March Environmental opinion research firm KRC 13 to April 12, 2019, Defense Fund Research, we surveyed 600 U.S. with 600 leaders senior business professionals to at the director, vice president/ understand: senior vice president and CEO levels in companies with $500 million to $5 billion in revenue. What it means to be both Quotas ensured a balanced a business leader and sample across five industries environmental steward in (retail, manufacturing, energy, Environmental Defense Fund top companies today. technology and finance) and (EDF) is one of the world’s five functional areas (marketing, largest environmental nonprofit finance, operations/R&D, organizations, with more than 2.5 How companies are leveraging strategy/executive and IT). million members and a staff of new technologies to expand Respondents also had insight 700 scientists, economists, policy their sustainability and drive into their companies’ business, experts and other professionals business results. growth and tech strategies, working around the world. sustainability practices, and EDF finds practical and lasting approaches to corporate social solutions to the world’s most How companies and industries responsibility, talent acquisition, serious environmental problems. have progressed in adopting and diversity and inclusion. Working with leading businesses, Fourth Wave strategies and New this year, our survey innovators, scientists and innovations. included directors, who are often academics, EDF is catalyzing closer to the implementation of scalable solutions for minimizing new technologies across the the environmental, economic and Where business leaders are business than executives are. human health risks associated feeling the pressure to balance Their responses provide a more with rising climate pollution. profits and sustainability. robust, up-close understanding of companies’ Fourth Wave commitments and investments. Please note, since directors were How seniority provides a not included in the 2018 survey, different view on businesses’ any year over year comparisons application and use of Fourth are for VPs and C-suite Wave technologies responses only. for sustainability. Business and the Fourth Wave of Environmentalism // 2019 Table of Contents The gap between opportunity and investment 1 Emerging technologies are surging 1 TechCrunch’s take: How businesses are riding the Fourth Wave 5 The 33-point opportunity gap 7 Case study: Applying technology to sustainability is a win-win for business and profit 15 Growth ahead 20 Case study: UPS: Using data to boost performance, reduce cost 26 Executives are raising the bar 27 Conclusion 32 AT A GLANCE The gap between opportunity and investment 1 Uptake surging 2 Competition leads Businesses are embracing Fourth Wave technologies of business leaders agree more than ever before. About 8 in 10 companies are using % that investing in emerging at least one of these innovations: data analytics, automation, 94 technologies is essential artificial intelligence, sensors and blockchain. And 9 in 10 say to staying competitive. these technologies are relevant for their core business. 3 Tech is good 4 But investment lags 5 This creates an for the planet of leaders are currently opportunity gap of business % investing in Fourth Wave tech There’s a 33-point gap where % leaders agree 59 for sustainability. The retail, businesses can accelerate their 92 that emerging finance and manufacturing industries are sustainability initiatives with the technologies can boost least likely to be using these innovations to innovations they already have at hand. both ROI and sustainability. solve environmental problems. 6 Business and sustainability 7 Yet leaders feel the heat 8 Consumers want goals are more at odds 7 in 10 C-suite leaders and VPs are accountability The share of executives feeling pressure from customers More than 9 in 10 who say their business and and investors to make business leaders say environmental objectives sustainability a strategic consumers will likely hold them are at odds has increased priority, and 8 in 10 feel accountable for their environmental 37 points since 2018. pressure from regulators. impact, up 12 points from 2018. 9 Energy, tech 10 Blockchain, 11 Growth potential ahead sectors finding sensors still CEOs are driving the vision for success nascent their companies’ sustainability, The energy and technology sectors These technologies but directors have insight into are furthest ahead in applying Fourth are the least used hurdles on the ground. Senior Wave innovations to sustainability. Fourth Wave innovations, which leaders and directors can combine Both industries lead the charge makes them important areas where vision, investment in using data, AI, automation and leaders can gain a competitive edge and implementation sensors and see strong potential — especially if blockchain increases to deepen their in how they can improve clean energy use or is powered by sustainability efforts. environmental impact. renewable energy. 1 Business and the Fourth Wave of Environmentalism // 2019 What are New and emerging technologies play an increasingly influential role in raising the bar for corporate sustainability. Fourth Wave technologies are the Fourth Wave innovations with the potential to drive both business and environmental goals for a company. For this report, we asked business leaders about the following technologies? five technologies: ARTIFICIAL INTELLIGENCE (AI) Computers learn, AUTOMATION TECHNOLOGIES These allow processes adjust and perform human-like tasks to better enable to be controlled without human involvement, often automation and deliver precise data and results. increasing efficiency and reducing waste. BLOCKCHAIN Blockchain uses DATA ANALYTICS Broadly speaking, SENSORS These have cryptography to securely record transactions this involves processing information