- A vast majority of global businesses have established sustainability targets with more than half still using manual tools for measurement.
- Budget constraints, complex supply chain and technology limitations are the top 3 most common barriers for enterprises to meet sustainability targets.
Dubai, United Arab Emirates, October, 2024: A significant 86% of businesses in the Middle East expressed their belief that digital technology plays a pivotal role in achieving sustainability goals, according to a survey report titled “Tech-Driven Sustainability Trends and Index 2024”, commissioned by Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group.
The report covering 13 markets across Asia, Europe and the Middle East, reveals businesses in Saudi Arabia and the UAE are aware of the transformational impact of digital technologies.
The Global Outlook:
A significant 80% of businesses surveyed across Asia, Europe and the Middle East have established sustainability targets, but of those who have set sustainability targets more than half (53%) continue to rely on manual methods for measuring their progress.
Around half of the businesses with sustainability targets cite driving growth (56%), compliance with regulations (54%), and a strong corporate purpose (49%) as their key motivations for establishing targets. Notably, among all markets, Indonesia tops the list with 70% of businesses prioritizing growth, Saudi Arabia leads with 73% emphasizing compliance, and the UAE excels with 61% prioritizing a strong corporate purpose.
A significant 78% of businesses agree that technology is crucial for achieving global sustainability goals, with top markets including Malaysia (89%), Saudi Arabia (87%), Singapore (86%) and France (86%). Regionally, this belief is strongest in the Middle East (86%) with emerging Asian markets a close second (83%). Similarly, 78% believe that adopting digital technologies such as cloud computing and AI will accelerate progress toward meeting sustainability goals, with Saudi Arabia leading at 90%, followed by the UAE (84%) and Singapore (81%).
Market Challenges and barriers:
Businesses encounter various barriers in meeting their sustainability targets. Budget constraints emerge as the most significant obstacle, affecting 29% of organizations, particularly pronounced in the Middle East (41%) and Europe (31%). Complex supply chains further complicate efforts, impacting 28% of businesses, especially in the Middle East (35%) and Europe (29%). Additionally, technology limitations hinder 23% of companies, with the Middle East facing a slightly higher rate at 26%. Time constraints also present significant challenges across all regions, affecting 23% of organizations. For those yet to set sustainability targets, budget constraints (32%) and technology limitations (29%) remain the primary barriers to meeting sustainability targets.
The Necessity For Digital Measurement:
As businesses strive to enhance their sustainability efforts, the necessity for effective digital tools is evident. The survey emphasizes the necessity for businesses to improve their understanding of digital tools, as 59% of respondents acknowledge a gap in their knowledge regarding how technology can help achieve sustainability goals. In the Middle East, nearly half of the respondents (45%) acknowledge a gap in understanding how technology can help with achieving sustainability goals.
“The survey findings underscore the urgent need for organizations to reassess their sustainability measurement methodologies and embrace advanced technological solutions like cloud-based platforms and AI services. These digital tools not only streamline the measurement process but also provide actionable insights that can drive meaningful progress for sustainability,” said Selina Yuan, President of International Business, Alibaba Cloud Intelligence.
“As a dedicated cloud service provider, we are committed to providing innovative and AI-powered solutions such as Energy Expert to enable enterprises to effectively measure and analyze carbon emission and energy consumptions to advance their sustainability goals. By addressing existing barriers and investing in such advancements, organizations can better align their sustainability initiatives with established targets,” she added.
Alibaba Cloud’s “Tech-Driven Sustainability Trends and Index 2024” aims to provide valuable insights into the evolving landscape of corporate sustainability while highlighting how technology can be applied to drive impactful change.
About the Survey:
Alibaba Cloud’s “Tech-Driven Sustainability Trends and Index 2024” was independently conducted by Yonder Consulting, a UK-based consulting firm, with advisory, design and analytical support from The Purpose Business, an Asia-based sustainability consultancy with offices in Hong Kong and Singapore. The survey collected feedback from May 10 to June 19, 2024, involving 1,300 business leaders and senior management from various industries, including technology and communications, finance, infrastructure, renewable resources, healthcare, transportation, retail, and manufacturing.
Respondents were located across 13 markets in Asia (Indonesia, Malaysia, the Philippines, Thailand, Hong Kong SAR, Japan, Singapore and South Korea), Europe (France, Germany, and United Kingdom), and the Middle East (Saudi Arabia and UAE). In this survey, developed Asian markets refer to Hong Kong SAR, Japan, Singapore, and South Korea, while emerging Asian markets include Indonesia, Malaysia, the Philippines, and Thailand.
About Alibaba Cloud:
Established in 2009, Alibaba Cloud (www.alibabacloud.com) is the digital technology and intelligence backbone of Alibaba Group. It offers a complete suite of cloud services to customers worldwide, including elastic computing, database, storage, network virtualization services, large-scale computing, security, management and application services, big data analytics, a machine learning platform and IoT services. Alibaba maintained its position as the third leading public cloud IaaS service provider globally since 2018, according to IDC. Alibaba is the world’s third leading and Asia Pacific’s leading IaaS provider by revenue in U.S. dollars since 2018, according to Gartner.
