How Data Will Redefine Corporate Sustainability

Here are five practical, data-backed steps to achieve more sustainable operations.

Sustainability has moved from a peripheral concern to a central business imperative. Consumers, regulators, and industry leaders alike are pressing for a deeper commitment to environmental responsibility, and many companies are responding with environmental, social, and governance (ESG) initiatives. These efforts often involve shifting to biodegradable materials, alternative fuels, and other well-intentioned strategies to reduce environmental impact.

However, as companies gain more data on their supply chains and operations, we’re discovering that not all “green” practices are as effective as they seem. With greater access to real-world insights, it’s becoming clear that some widely adopted sustainability measures may not deliver the expected environmental benefits across the board.

Data-Driven Decisions Reveal Nuances

Before we delve into specifics, it’s important to acknowledge that any effort to reduce waste or emissions is valuable. Every company trying to operate more responsibly deserves credit for making a positive impact. Still, as businesses become more data-driven, we’re learning that sustainability is far more nuanced than originally thought.

Take the shift away from plastic, for example. Reducing plastic use has become a widely supported initiative, and for good reason—plastic is a persistent pollutant. Yet, the alternative—often paper—comes with its own challenges. Paper production is resource-intensive, and paper products can be heavier and less durable, leading to higher transportation costs and less potential for reuse.

Consider the case of single-use plastic bags, which have been replaced by paper in many countries. A 2020 United Nations Environment Programme report found that paper bags, despite being biodegradable, can have a larger negative impact on the climate due to their production process. This illustrates the complexity of making the right sustainability choices and highlights the role that comprehensive data plays in revealing the trade-offs between different materials and strategies.

How Data Can Shape Smarter Sustainability Programs

Digital tools such as enterprise resource planning (ERP) systems and manufacturing execution systems (MES) offer new insights that allow companies to move beyond broad assumptions about sustainability. In manufacturing, where resource consumption, energy usage, and waste can be significant, MES plays a crucial role. It provides real-time data on production processes to help companies optimize their “make” operations by reducing inefficiencies, minimizing waste, and ensuring responsible resource usage.

These systems give decision-makers access to detailed, actionable data—covering areas like energy consumption, raw material utilization, equipment performance, emissions, and waste generation—enabling more informed choices that reflect a full view of their impact.

The good news is that these data-driven adjustments don’t always require large, sweeping changes. Often, it’s the incremental improvements in areas like production efficiency and resource management that produce significant long-term benefits. However, achieving these results requires the right tools to handle the data effectively.

Here’s how leaders can take practical, data-backed steps toward more sustainable operations:

1. Establish a Baseline

Begin by gathering data on key areas such as energy consumption, material sourcing, equipment efficiency, emissions, and waste production. Look for patterns across the entire business to identify hidden inefficiencies. This comprehensive snapshot of current operations will provide a foundation for improvement.

2. Identify High-Impact Areas

Next, use this baseline to highlight the areas where changes will have the greatest impact. Sometimes, the obvious targets are large-scale processes that generate waste, but small, incremental improvements can also add up to significant benefits. It’s essential to balance both perspectives when identifying opportunities for improvement.

3. Leverage the Right Tools and Set Measurable, Data-Driven Goals

Now that you have identified key areas for change, it’s crucial to ensure the right tools—like MES or ERP systems—are in place to manage the necessary data. These tools help teams define clear goals that are realistic and measurable, supported by metrics that will track progress. Your targets should be based on data insights and focused on the outcomes that will drive the most impact, rather than reacting to external pressures.

4. Evaluate Solutions Based on Data

Once goals are set, explore different strategies to meet them. Here, data becomes your guide—run predictive models to test how proposed solutions affect other parts of your operation.

For example, a shift to paper packaging may reduce plastic use, but the data might show a rise in carbon emissions from heavier shipments. If one solution creates new challenges, it’s worth reevaluating the options before implementation.

5. Monitor, Adjust, and Improve Continuously

Once changes are in place, the process doesn’t stop. Regularly monitor key metrics to ensure the strategies are producing the desired results. Adjustments will likely be needed along the way, but the real advantage of a data-driven approach is that you can make small, consistent improvements over time.

The Road Ahead

Sustainability, by its nature, is a complex and evolving challenge, and the path forward may not always be clear. But businesses shouldn’t view this as a barrier. Instead, it’s an opportunity to learn, adapt, and lead the way in environmental responsibility. With data and advanced systems, companies have the tools to make informed decisions and discover what “sustainable” really means for their unique operations.

Ultimately, sustainability isn’t about adopting a one-size-fits-all solution. It’s about leveraging the power of data—and the right tools—to create tailored programs that reduce environmental impact while driving business efficiency and growth. As we move forward, the companies that embrace this approach will not only safeguard the planet but also position themselves for long-term success.