Digital and Sustainability: Where Do Companies Stand?

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According to a recent research by the Digital & Sustainable Observatory of the Politecnico di Milano, presented at the conference "Digital and Sustainability: the space for responsibility and innovation", the integration between digital innovation and sustainability is still limited in the Italian business landscape. While large companies show positive signs, SMEs are lagging behind. Alessandro Perego, scientific director of the Digital Innovation Observatories of the Politecnico di Milano, emphasizes the importance of tackling challenges with pragmatism and concrete data. Sustainability is not only a necessity to counter climate change, but also an opportunity for the most innovative companies to develop new growth models.

Sustainable development is not limited to reducing consumption and eliminating waste, but implies a profound transformation of products, production processes, and business behaviors. The concept of twin transition emphasizes the synergy between digitization and sustainability. The European Union has promoted various directives, such as the Directive 2014/95/EU and the more recent Directive 2022/2464/EU on sustainability reporting, requiring large enterprises to communicate non-financial information. This approach aims to encourage transparency and accountability on social, environmental, and governance (ESG) aspects.

The study reveals a clear gap between large companies and SMEs. The former are taking concrete steps to integrate digital and sustainability, while the latter still perceive sustainability as a regulatory obligation and a cost rather than a strategic opportunity. This hampers their ability to innovate and adapt to new market demands. A key element for the success of the twin transition is the presence of dedicated professional figures, such as the Digital Sustainability Officer. However, few companies have already established this role, highlighting a lack in corporate governance. The adoption of green computing practices and participation in European programs like Horizon 2020 can support companies in achieving sustainability objectives.

According to the research, 84% of companies invest in both digital and sustainability, but only 34% have specific strategies to leverage technology for sustainability. Among large companies, 22% are inspired by the principles of sustainable development for digital adoption. SMEs, on the other hand, face greater challenges: 53% invest in digital, while only 42% have a strategy for sustainability. Furthermore, just 3% of businesses use digital for objectives specifically related to sustainability. The main barriers for SMEs are high costs and lack of adequate resources. Only 31% of SMEs invest in both areas, indicating that integration is still a long way off.

The European Union has introduced several initiatives to accelerate the digital and sustainable transition:

- European Green Deal: aims to make Europe the first climate-neutral continent by 2050.
- Horizon Europe: a funding program for research and innovation, focusing on ecological and digital transition.
- Global Gateway: aims to develop sustainable infrastructure in the digital, energy, and transport sectors.
- Strategy for the Digital Single Market: promotes access to online products and services, network development, and sustainable growth of the European digital economy.

The report “The Digital Finance Revolution: Unleashing the Power of Inclusion, Growth, Sustainability & Security” highlights the role of digital finance in promoting sustainability. Although it may not be immediate to associate finance and sustainability, financial data can be used to address climate change, especially when combined with cross-sector data. Artificial intelligence (AI) holds great potential in this area, offering greater efficiency, cost reduction, and time savings in the management of financial services. The report also emphasizes that to truly enhance customer experience with digital financial products, governments should make public data more accessible to the financial ecosystem. This would help promote more inclusive and sustainable growth.

The integration between digital and sustainability is still evolving, but data shows positive signs, especially among large companies. To bridge the gap with SMEs, economic incentives, training, and dedicated professionals are needed. Europe has already set the course with directives and funding programs, but the real challenge will be guiding companies through this transformation, ensuring that the twin transition becomes a concrete reality for all productive sectors. Only a shared commitment among institutions, companies, and innovators can turn this transition into an opportunity for sustainable and lasting growth.

This article was created as part of the "Biodiversity services EU expansion" project (CUP: E43D22000480009) funded by the Lombardy Region call "PR FESR 2021-2027 – INTERNATIONALIZATION LINE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting, and regenerating biodiversity, supporting companies in defining personalized climate strategies based on an analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany, and France and significant partnerships, 3Bee continues its expansion into international markets to create a concrete impact through technology.