Carriers should use digital technologies to pursue initiatives that address threats to sustainability while improving the management of these resources.
Digital technology is one of the most powerful forces available to insurers in their quest to create a sustainable future. Almost 75 percent of CEOs in all industries invest in digital solutions to address the challenges of sustainability.
This enormous commitment to digital technology was revealed in our research with the UN Global Compact. About 65 percent of CEOs believe that the fourth technology for industrial revolution (4IR) is critical for dealing with sustainability challenges such as socio-economic disparities. 4IR technologies include digital advances such as artificial intelligence (AI), robotics and quantum computing.
Carriers should use their digital resources to identify and implement initiatives that can counter threats such as climate change, environmental pollution and social injustice. At the same time, however, they should improve the management of these resources. Smart resource management can help increase digital companies as insurers reduce carbon dioxide emissions, save energy and limit waste.
Carriers that want to transform into sustainable insurance companies must realize the dual potential of digital technology.
Smart sustainability initiatives deliver impressive results.
Insurers can use their digital resources to promote their own sustainability initiatives. For example, they can use data analysis and geo-mapping to help customers manage environmental risks. Alternatively, they can fund sustainability initiatives that depend on digital technology. The opportunities for insurance companies to finance such projects are innumerable. I think the initiatives below are particularly innovative.
- Banyan Nation in India uses mobile communications technology and cloud platforms to encourage plastic recycling. It connects thousands of waste collectors with plastic recycling companies to produce packaging materials.
- The British company Winnow uses AI and analysis techniques to help chefs in commercial kitchens cut waste. The company's intelligent solution reduces food costs by up to 8 percent per year. It claims to have helped divert US $ 42 million worth of food from landfills and saved more than 60,000 tonnes of carbon dioxide emissions.
- AMP Robotics in the USA has developed an intelligent robotics system that uses AI to identify and extract recyclable material from waste tips. and construction sites. The company's AI platform, which controls its robotic devices, can recognize colors, textures, shapes, sizes, patterns and product labels to determine if items can be recycled. AMP claims that its system has recycled one billion recyclable items from waste materials.
Cloud computing improves durability. Insurers who want to better manage digital technology resources to help them achieve their sustainability goals should consider migrating more of their workloads to the cloud. . In my latest blog series, "Accelerating into the cloud", I discussed some of the benefits that insurers have when moving critical applications to the cloud. Improved durability is one of the benefits that is often overlooked.
I have been impressed with the extent to which cloud computing can improve sustainability. Our research shows that organizations that migrate to the cloud can reduce their energy consumption by 65 percent and reduce carbon dioxide emissions by almost 85 percent. Such sustainability benefits have significant economic benefits. Transitions to the cloud can result in savings on total cost of ownership (TCO) of as much as 40 percent.
The more a company is engaged in cloud computing, the more it improves its sustainability. The image below shows the benefits insurers can achieve by increasing the use of cloud offers. By e.g. Moving from a conventional business environment to an infrastructure-as-a-service platform, they can reduce their carbon emissions by as much as 84 percent. If they increased their engagement and designed their applications specifically for the cloud, they could limit carbon emissions by as much as 98 percent.
Greater use of cloud computing helps sustainability in another way. Most of the major cloud service providers have set aggressive sustainability goals. The more their cloud companies grow, the greater their contribution to sustainability.
- Microsoft has set its sights on carbon dioxide negativity within ten years. It is already carbon neutral. By 2050, the company hopes to have removed the equivalent of all the carbon it emitted since it was founded in 1975. Users of the Azure cloud platform can track carbon dioxide emissions in conjunction with their own workload.
- Google plans to ensure that its data center does not contribute to CO2 emissions by 2030. At the beginning of the year, Google achieved a zero net carbon footprint. By purchasing high-quality carbon offsets, it has eliminated all the carbon dioxide it has generated since its inception in 1998.
- Amazon Web Services (AWS) uses advanced energy management systems at its data centers to improve the sustainability of its cloud infrastructure. It claims that its cloud operations are more than three times more energy efficient than the US median enterprise data center.
In my next blog post, I will discuss some of the innovative approaches that insurers use to address the challenges of sustainability. Until then, look at the links below. You will find lots of useful information on sustainable business practices. Or send me a message. I would like to hear from you.
Decade to Deliver: UNGC-Accenture Strategy CEO Study on Sustainability.
The green behind the cloud.
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