On the role of software in securing the future climate
Software-driven innovation is essential in driving change to protect our future from climate change. Here are five predictions for how this frontier advancement will make the entire industry more sustainable over the next five years.
1. Companies and organizations adopt circular economy business models
In order to build a competitive global circular economy that does not generate waste, companies should work to maximize resource efficiency, develop recyclable products, and reuse waste into new products. We need to adapt our business model accordingly. Critical among them is building a digital business ecosystem that enables effective decision-making and execution.
For example, Vodafone in the UK remanufactures or resells 97% of returned mobile phones and recycles the remaining 3%. Hardware is the resource to be recycled, but at the core of this effort is a software-defined supply chain powered by automation and machine learning.
One of the biggest challenges in moving to a circular economy is collecting and sharing data about products throughout their lifecycle. The Digital Product Passport (DPP) does just that, increasing transparency by documenting a product’s sustainability, environmental and recycling attributes. DPP, which enables traceability through software, can not only help companies improve product management throughout the supply chain, but also drive cost savings. Some companies have already implemented these processes, but DPP is not expected to become a mandatory requirement in most parts of the world in the next few years. The EU positions itself as a pioneer in this area and wants to bring most of its products under DPP regulation by 2030.
2. Using AI to manage natural resources
According to the Sustainable Futures report , AI is becoming important in tackling many environmental sustainability challenges, including biodiversity, energy, transportation, and agroecosystem management. In agriculture, AI can generate insights and drive automation to improve environmental stewardship and detect diseases and their potential spread before they endanger crops and livestock. Technology will not only impact individual farm yields, but data will yield valuable insights that can positively influence policy decisions at the local and national levels.
For example, DXC is partnering with Spain’s Ministry of Agriculture, Fisheries and Food (MAPA) to transform agriculture in Spain through data analytics and AI. One project using AI algorithms evaluates environmental data sources collected by MAPA and its partners to accurately predict forest fires. In addition, farmers are using AI to make more informed decisions about what crops to grow and where.
AI is also at the heart of efforts to reduce waste and make water resource management more cost-effective and sustainable in the agricultural industry, which accounts for 70% of the world’s freshwater use . AI can monitor groundwater levels, assess crop water needs, and strategically place irrigation systems in optimal locations.
AI is at the heart of the agricultural industry’s efforts to reduce waste and improve the cost-effectiveness and sustainability of water resource operations.
3. AI will make renewable energy more viable
McKinsey predicts that by 2026, global renewable energy capacity will increase by more than 80% compared to 2020. For example, in Europe, about 36 million renewable energy assets such as solar panels, electric vehicles (EVs) and energy storage facilities will be connected to the grid by 2025 and about 89 million by 2030. is. With millions of individual devices transmitting and receiving power, it will fundamentally change the operation of the power grid. Automation and data analytics can be used to manage distributed energy resources, coordinate where surplus electricity is sent, and flag potential grid weaknesses before they become serious problems. Together, it will enable power companies to send power where it is needed in real time.
To enable this, legacy power giants must rethink their operating models and invest in modern cloud-based IT infrastructures that enable effective management and analysis of data across the organization. there is.
4. There will be a major shift to software-defined EVs in the next decade
As countries strive to achieve net-zero carbon emissions by 2050, decarbonizing the transport sector is becoming increasingly important. Regulators in the United States and Europe are reviewing policies and enforcing laws to limit the sale of new gasoline and diesel vehicles. As a result, all of the world’s leading automakers have announced that they have switched completely or significantly to EV production, or will do so in the next few years.
EVs will become Software-Defined Vehicles (SDVs) with automation features to manage the vehicle more efficiently while paying particular attention to its environmental impact. The SDV is equipped with smart routing and energy optimization features that can alleviate issues related to charging capacity and range (for more on this topic, see “Rebuilding the relationship between us and our cars in the next five years”) . (Read 5 Automotive Trends That Will Drive You ).
Beyond the traditional financial sector, new approaches are helping to make the cryptocurrency mining process more sustainable.
5. The financial system will be restructured for energy efficiency
For banks and financial services organizations, the transition to environmentally conscious and sustainable operations is a top priority. Key to these efforts are more sustainable and efficient software, algorithms and data processing. Under these circumstances, the global green finance market has grown from $5.2 billion in 2012 to over $540 billion in 2021.
Led by the industry and convened by the United Nations, the Net Zero Banking Alliance already has more than 120 banks that are committed to achieving net zero emissions from their investment portfolios by 2050. is. In addition to expanding its green portfolio, the financial services sector is significantly reducing energy consumption by streamlining its data centers. Technologies such as data deduplication and compression can improve data storage layout and efficiency while reducing energy usage.
Beyond the traditional financial sector, new approaches are helping to make the crypto mining process more sustainable. Major cryptocurrencies are moving from slow, computing-intensive proof-of-work (PoW) systems to proof-of-stake (PoS) systems. PoS offers faster transactions, better scalability, and much less environmental impact. For example, one of the most popular cryptocurrencies, Ethereum, will transition to PoS in 2022, arguing that the transition will reduce the currency’s energy usage by 99.95% worldwide.
Sustainability is becoming the new normal
Companies and organizations need to build sustainability into their system architectures and system templates. For example, making sustainability a non-functional requirement in tenders or mandating sustainability targets in service level agreements.
With architects, engineers, project managers, and software delivery staff at the forefront of this change, teams can seamlessly transition to using code that supports sustainability while remaining competitive, profitable, and could be improved. We all look forward to the day when sustainability becomes the new normal and software becomes central to efforts to protect our future from climate change.
