Role of Technology in Sustainability Transformation

for Businesses and Mitigating Climate Change

Shannon Park

September 5th, 2023

 Table of Contents

Introduction 1

Increasing Pressure for Sustainability Transformation 2

First Step: Implementing Cloud Technology to Track Environmental Impact 3

Challenges and Opportunities in Cloud Technology 4

Next Step: Implementing Technology for Sustainability Transformation 5

Renewable Energy 5

Carbon Capture and Utilization 5

Discussion 6

Conclusion 6

Citations 6

1
 Introduction

Climate change is a critical social issue threatening humanity, as highlighted in the Paris
Climate Agreement. It is driven by human activities, such as burning fossil fuels, deforestation,
and industrial processes, which release greenhouse gases into the atmosphere, leading to the
enhanced greenhouse effect and global warming. Rising temperatures bring about extreme
weather events, water scarcity, and habitat destruction, endangering human health, food security,
and livelihoods. Furthermore, climate change disproportionately affects vulnerable communities,
exacerbating social inequities. Low-income and marginalized groups, especially in developing
countries, bear the brunt of extreme weather events and limited access to resources, perpetuating
existing inequalities.

To combat climate change, businesses play a pivotal role by adopting sustainable

practices. Climate experts suggest that to address the challenges of climate change, it is
necessary to integrate mitigation technologies, policies, and measures1. This approach requires
utilizing technology to phase out fossil fuels and to decarbonize globally. Sustainable business
practices not only protect the environment but also enhance brand reputation, attract conscious
consumers, and ensure long-term profitability in a changing market. With the growing awareness
of the impact of human activities on the planet, there is rising pressure on businesses to
incorporate sustainability practices into their operations, referred as “sustainability
transformation”. This shift is driven by various stakeholders, including consumers, investors, and
regulatory bodies, who demand greater transparency and accountability in environmental, social,
and governance (ESG) performance. In light of this context, a key research question emerges:
What is the role of technology in sustainability transformation and climate change? This
question seeks to explore how technological advancements can contribute to addressing
environmental challenges, fostering sustainability, and driving meaningful change across
industries.

My climate activism journey started from podcasts and publications on climate change to
lobbying at Sacramento, California and receiving support for environmental bills, helping
attorneys file lawsuits against greenwashing (falsely marketing products as sustainable)
companies, and raising awareness to the public through the California Public Interest Research
Group (CALPIRG) at UCLA. After my legal and grassroots efforts, I conducted extensive
research on greenwashing and the benefits that businesses reap from becoming more sustainable.
This paper aims to integrate my academic study in business economics at UCLA and work
experience as a Business Technology Solutions intern at Deloitte Consulting in construing
solutions to mitigate climate change. Observing numerous strategy and implementation projects
occurring on a daily basis at Deloitte helped me realize that not only help businesses increase

1
Santos, Flavio D., João S.T. Pereira, and Pedro L. Fernandes. "Delivering a Paris Solution: An Analysis of the
Greenhouse Gas Mitigation Scenarios." Energies 13, no. 17 (2020): 4415. https://doi.org/10.3390/en13174415.

2
their profits but also mitigate climate change impacts. Through this research paper, I will explore
the role of technology in addressing climate change and increasing value across businesses.

Increasing Pressure for Sustainability Transformation

Businesses are facing rising pressure from stakeholders, regulatory pressure, and
observing valuable market opportunities for sustainability transformation. Businesses are facing
increasing pressure from stakeholders, such as customers, investors, and employees, to
incorporate sustainability into their operations. Customers are increasingly demanding
sustainable products and services, investors are looking for companies that are taking climate
change seriously, and employees are looking for companies that are committed to sustainability.
Consumers are increasingly willing to pay more for products that are produced in a sustainable
way, and businesses that can tap into this market can gain a competitive advantage. The market
for sustainability transformation is estimated to be worth trillions of dollars. According to a
report by the World Economic Forum, the global market for sustainable goods and services is
expected to reach $12 trillion by 2030.

Governments are also putting pressure on businesses to become more sustainable. In

recent years, there have been a number of new regulations that have been introduced to promote
sustainability, such as the European Union's Emissions Trading System and the California Global
Warming Solutions Act. Several new regulations and context leading to the trend of
sustainability transformation include The Paris Agreement Implementation Act of 2015, The
Energy Efficiency and Renewable Energy Act of 2020, The Environment Act 2021, and The UK
Emissions Trading Scheme (ETS). In the United States, the Paris Agreement Implementation Act
of 2015 was enacted to implement the international agreement aiming to reduce greenhouse gas
emissions2. The law mandates businesses to report emissions and set reduction targets. Similarly,
the Energy Efficiency and Renewable Energy Act of 20203 promotes energy efficiency and
renewable energy, requiring businesses to report energy use and set efficiency targets. The UK, a
leader in environmental protection, passed The Environment Act 20214, establishing ambitious
environmental targets, including achieving net zero emissions by 2050. This law also compels
businesses to report emissions and set reduction targets. Additionally, the UK Emissions Trading

2
Unfccc.int, accessed September 5, 2023, https://unfccc.int/process-and-meetings/the-paris-agreement.
3
California Energy Commission, “Clean Energy and Pollution Reduction Act - SB 350,” California Energy
Commission, accessed September 5, 2023,
https://www.energy.ca.gov/rules-and-regulations/energy-suppliers-reporting/clean-energy-and-pollution-reduction-a
ct-sb-350.
4
“Get in on the Act: The Environment Act 2021,” Local Government Association, May 10, 2022,
https://www.local.gov.uk/publications/get-act-environment-act-2021.

3
Scheme (ETS), launched in 20215, caps greenhouse gas emissions, allowing businesses to trade
permits based on their emission levels.

Despite increasing pressure from stakeholders, consumers, and the government,

businesses face serious challenges when trying to reach their sustainability goals. First,
sustainability can be expensive. Businesses may need to invest in new technologies, make
changes to their operations, or purchase more sustainable materials. Second, businesses may not
have the expertise or knowledge necessary to implement sustainability measures. They may need
to hire consultants or train their employees. Third, employees may be resistant to change,
especially if they are not convinced that sustainability is important. Businesses may need to
communicate the benefits of sustainability to their employees and get their buy-in. Regardless,
there are a number of businesses that are successfully incorporating sustainability into their
operations, often through strategic technological solutions.

First Step: Implementing Cloud Technology to Track Environmental Impact

The precedent to undergoing sustainability transformation is an infrastructure that enables

the collection and tracking of data on a business’s environmental impact. Cloud technology plays
a pivotal role in supporting businesses' sustainability transformation by offering scalable
infrastructure and reducing the environmental impact of on-premises data centers. For example,
Amazon Web Services (AWS) provides a range of services to assist businesses in adopting
sustainable practices. To reduce reliance on fossil fuels, AWS offers the AWS Green Energy
service, allowing businesses to purchase renewable energy credits (RECs)6 to offset their energy
consumption. Additionally, AWS services like AWS Compute Optimizer aid in improving
energy efficiency by optimizing cloud computing resources. In terms of water conservation,
AWS offers the AWS Water Efficiency7 service to help businesses track water usage and identify
conservation opportunities. To address waste reduction, the AWS Sustainability Accelerator8
employs AI to help businesses develop effective waste reduction strategies. Similarly, AWS
Transportation Sustainability service9, enables businesses to track transportation emissions and
identify ways to reduce their carbon footprint. By leveraging these services, businesses can
contribute to a more sustainable future. As the technology continues to develop, we can expect to
see even more innovative ways that AWS can be used to help businesses become more
sustainable.

5
Nora Buli, “UK to Tighten Emissions Trading Scheme from 2024,” Reuters, July 3, 2023,
https://www.reuters.com/sustainability/climate-energy/uk-tighten-emissions-trading-scheme-2024-2023-07-03/#:~:te
xt=Introduced%20in%202021%20for%20an,buy%20permits%20to%20release%20CO2.
6
“Energy,” Amazon, 1979, https://aws.amazon.com/energy/sustainability/.
7
Ibid
8
Ibid
9
Ibid

4
 Challenges and Opportunities in Cloud Technology

Using cloud technology like AWS for ESG sustainability transformation and climate
change presents both challenges and opportunities for businesses. Utilizing AWS offers
opportunities such as scalability, enabling businesses to easily scale their ESG initiatives as
needed. The cloud's flexibility allows for resource optimization, reduced energy consumption,
and the adoption of sustainable practices, aligning with the demand for environmentally
responsible operations. The rapid growth of the global cloud computing market opens doors for
innovation, incorporating artificial intelligence and machine learning to enhance sustainability
efforts. Furthermore, AWS's continuous innovation provides access to new ESG-related services
and features, empowering businesses to stay at the forefront of sustainability transformations.
The expansive AWS user and partner community fosters collaboration, allowing businesses to
share best practices and learn from others' experiences.

However, today’s businesses are mainly focused on profit and short term revenue. Cloud
technology implementation can be expensive, and the complexity of implementing and managing
AWS-based ESG initiatives requires adequate IT resources and expertise. Additionally,
businesses must be mindful of data privacy concerns as AWS collects and stores data on its
servers. Furthermore, while AWS can facilitate reporting on ESG goals, businesses must address
the actual transformation aspect. This entails implementing concrete measures and strategies to
adopt renewable energy sources, reduce carbon emissions, enhance resource efficiency, and
promote sustainable practices throughout their operations. These transformative efforts are
crucial to achieving meaningful and impactful sustainability goals, complementing the reporting
and data analysis provided by AWS.

Next Step: Implementing Technology for Sustainability Transformation

Renewable Energy

By combining reporting and transformation initiatives, businesses can work towards a

more sustainable and environmentally responsible future. For example, electric vehicles are
playing a pivotal role in reducing greenhouse gas emissions from transportation. Based on
Tesla’s 2021 Impact Report, the global fleet of Tesla vehicles, energy storage and solar panels
enabled Tesla customers to avoid emitting 8.4 million metric tons of CO2e10. To address
hesitating customers’ concerns on EV mileage, Jeff Dahn, a pioneer of lithium-ion batteries at
Dalhousie University, is working on a million-mile battery11. Funded by Tesla, this revolutionary

10
Tesla. "2021 Tesla Impact Report." Accessed from https://www.tesla.com/ns_videos/2021-tesla-impact-report.pdf.
11
Marisa Coulton, “‘War on Climate Change’: Tesla-Backed Engineer Jeff Dahn Seeks a Million-Mile Battery,”
Financial Post, April 2022,

5
battery would withstand 10,000 charging cycles, equivalent to 5.3 million kilometers. Dahn
envisions electric cars doubling as renewable energy storage devices, feeding excess energy back
into the grid to power homes and buildings. Despite challenges in finding stable and
energy-dense materials, Dahn is confident in achieving this breakthrough. A million-mile battery
would transform the electric vehicle market, making EVs more affordable, practical, and
reducing reliance on fossil fuels, representing a significant step towards sustainable and
long-lasting batteries12.

Carbon Capture and Utilization

In addition to generating renewable energy, a recent study suggests that carbon capture
and utilization technology can also help us reach a net-zero carbon emissions goal. This
technology involves capturing carbon dioxide (CO2) emissions from various industries like
power plants, cement factories, and steel production. The captured CO2 can then be stored or
used in other processes. The challenge with this technology is that it requires a lot of thermal
energy, which can be costly and energy-intensive. Fortunately, scientists may have found a
solution called reaction swing absorption (RSA). This new method directly utilizes CO2 from
flue gas without the need for expensive CO2 capture or product separation processes. Based on
their experiments and process modeling, scientists believe that RSA could offer economic and
environmental benefits for carbon capture and utilization. It could potentially lower costs, reduce
CO2 emissions to zero, and have less impact on the environment, ultimately bringing hope for a
more sustainable future.

Discussion

Technologies that can help companies become more sustainable will continue to develop.
Yet, the question remains, “how do we get companies to utilize green technologies?” From my
interview with Dilip Krishna, Chief Technology Officer for the Sustainability and Climate at
Deloitte, I came to realize that the only way to make companies act a certain way is a
combination of both regulation and economic incentives. “There needs to be an economic
incentive. That is how humans work,” said Krishna. He provided examples of solar and wind
energy prices falling and oil prices rising, ultimately incentivizing people to change their energy
sources to renewable energy. Thus, while the development of technologies like cloud, renewable
energy, and carbon capture technologies are important, it is as important to create market
interests to utilize such technologies. Devon Dickau, who is a Diversity, Equity, and Inclusion
Leader at Deloitte, emphasized the role of helping companies realize that non-financial impact is

https://financialpost.com/commodities/energy/electric-vehicles/war-on-climate-change-tesla-backed-engineer-jeff-da
hn-seeks-a-million-mile-battery.
12
Ibid

6
important. A company’s non-financial impact, such as its diversity in leadership, carbon
footprint, and social impact can drive the company towards success or failure.

Conclusion

Climate change stands as a formidable challenge to humanity. Businesses are pivotal

players in this battle, and their adoption of sustainable practices holding immense influence on
global warming. Climate experts advocate for the integration of mitigation technologies, policies,
and measures to effectively address this crisis. This research journey explored the transformative
power of technology in climate change mitigation and its value enhancement for businesses. The
contemporary corporate landscape confronts mounting pressure from stakeholders, regulations,
and burgeoning market prospects for sustainable transformations. Cloud technology helps
businesses can lay the foundation for sustainability transformation through the accurate
measurement and tracking of environmental impact. Yet, most businesses today still prioritize
immediate profits over long-term sustainability. While the integration of green technologies,
such as cloud, renewables, and carbon capture, present both challenges and opportunities, the
larger question arises: how can companies be motivated to transition to green technologies? The
answer lies in uniting reporting and transformation initiatives, forging a path towards a
sustainable and eco-conscious future. As we journey forward, the development of technologies
aiding sustainable practices will inevitably continue, offering hope for a greener tomorrow. The
discussion on sustainability will prolong, and potential future research questions remain, “How
much impact will sustainability transformation of businesses have on the overall environment
and climate change mitigation?” and “What percent of businesses have to undergo this
transformation to reach net zero?”

7
 Citations

Buli, Nora. “UK to Tighten Emissions Trading Scheme from 2024.” Reuters, July 3, 2023.
https://www.reuters.com/sustainability/climate-energy/uk-tighten-emissions-trading-schem
e-2024-2023-07-03/#:~:text=Introduced%20in%202021%20for%20an,buy%20permits%2
0to%20release%20CO2.

California Energy Commission. “Clean Energy and Pollution Reduction Act - SB 350.”
California Energy Commission. Accessed September 5, 2023.
https://www.energy.ca.gov/rules-and-regulations/energy-suppliers-reporting/clean-energy-a
nd-pollution-reduction-act-sb-350.

Coulton, Marisa. “‘War on Climate Change’: Tesla-Backed Engineer Jeff Dahn Seeks a
Million-Mile Battery.” Financial Post, April 2022.
https://financialpost.com/commodities/energy/electric-vehicles/war-on-climate-change-tesl
a-backed-engineer-jeff-dahn-seeks-a-million-mile-battery.

“Deloitte, AT&T and Salesforce to Simplify ESG Data Collection and Sustainability
Management through Connectivity-Based Approach – Press Release.” Deloitte United
States, August 2, 2023.
https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-at-t-a
nd-salesfoce-announce-launch-of-sustainability360.html?id=us%3A2sm%3A3li%3Ateaml
i%3Aa.

“Energy.” Amazon, 1979. https://aws.amazon.com/energy/sustainability/.

“Get in on the Act: The Environment Act 2021.” Local Government Association, May 10,
2022. https://www.local.gov.uk/publications/get-act-environment-act-2021.

Santos, Flavio D., João S.T. Pereira, and Pedro L. Fernandes. "Delivering a Paris Solution:
An Analysis of the Greenhouse Gas Mitigation Scenarios." Energies 13, no. 17 (2020):
4415. https://doi.org/10.3390/en13174415.

Unfccc.int. Accessed September 5, 2023.

https://unfccc.int/process-and-meetings/the-paris-agreement.