A few years ago, I had a conversation that stayed with me. I was talking to a friend who runs a small tech company, and she said something that hit home: “If your business isn’t making the world better, what’s the point?” At the time, it felt like an idealistic statement—one of those things people say but rarely follow through on.
Fast forward to today, and while some businesses are stepping up to tackle environmental challenges, the reality is that we are still far from where we need to be. Climate change, resource depletion, and social inequalities remain critical issues, and progress is often slow and uneven. Many companies are embracing digital innovation and sustainability, but systemic barriers, short-term economic pressures, and resistance to change continue to hold us back.
That’s why the shift we’re seeing—though not universal—is significant. Some businesses are proving that sustainability is not just a buzzword but a necessary strategy for long-term survival. Our recent future of enterprise study, FoE#4, explores how forward-thinking companies are using digitalization not just to improve efficiency and profitability but to make real, measurable contributions to sustainability.
Innovative solutions for a sustainable world
In today’s world, sustainability is no longer optional, it’s a crucial part of business strategy. Yet, despite growing awareness, many industries still grapple with finding a balance between sustainability and economic demands. However, leading companies are demonstrating that investing in digital use cases can drive environmental and financial value, proving that sustainable practices and profitability are not mutually exclusive.
Digitalization often starts as a means to cut costs and improve customer experience, but its real power lies in advancing the "triple bottom line"—delivering environmental, social, and economic benefits. The key drivers behind this shift include regulatory pressures, consumer demand for ethical practices, and the growing realization that ignoring sustainability is not just irresponsible—it’s bad business. The road ahead is challenging, but the companies embracing this transformation show that change is possible. The question is: Will enough businesses follow suit before it’s too late?
In the research highlighted here, the connection between sustainability and financial performance is crystal clear. Consequently, these financially successful yet sustainable companies allocate significantly larger portions of their IS/IT budgets to digital use cases compared to their less sustainable counterparts. There are more than four times as many sustainability front-runner companies that invest more than 50 percent of their IS/IT budget in these use cases, compared to sustainability laggards.
Figure 1. Share of decision-makers that state their companies’ current use case investment makes up more than 50 percent of the total IS/IT budget across two groups of companies: Sustainability laggards and front runners
The triple bottom line in action
The study underscores that financially successful companies are also those leading in environmental practices.
- Waste minimization: 74 percent of decision-makers in financially successful companies prioritize waste reduction, compared to just half of their less successful counterparts.
- Energy efficiency: Successful firms also emphasize reducing energy consumption and fostering remote work benefits like decreased commuting.
This trend demonstrates that profitability and sustainability are not only competing aspects but also mutually reinforcing goals. Sustainability investments are increasingly benchmarked against other financial metrics, ensuring that they deliver tangible value.
Social sustainability: A growing focus
While environmental sustainability remains crucial, this research reveals a growing emphasis on social aspects. Decision-makers recognize the importance of fostering employee safety, skill development, and overall well-being. Technologies such as AI, extended reality (XR), and haptic devices are set to revolutionize work environments by enhancing safety and response times during incidents.
Interestingly, perceptions of sustainability benefits differ between decision-makers and employees:
- Decision-makers: prioritize social sustainability benefits like safer work environments and employee training.
- Employees: Place a higher value on environmental benefits, such as reducing waste and decreasing energy consumption.
This divergence highlights the need for organizations to balance both perspectives in their digital transformation strategies.
The case for continued investment in sustainability
Today, 65 percent of decision-makers state that their companies consistently perform environmental, social, and governance (ESG) reporting. Moreover, when asked about potential areas for increased investment, decision-makers listed social and environmental sustainability among their top priorities. Remarkably, over 90 percent of leaders in the most sustainable companies expressed a commitment to reinvesting in these areas if additional funding becomes available.
Today, the most sustainable companies lead in digital innovation. By leveraging technologies, they not only mitigate risks to the environment and workforce but also build resilient, future-ready businesses.
This level of dedication and commitment could indicate other driving factors beyond regulations, such as the increasing value placed on transparency and accountability.
Final say: As per our latest survey, sustainability in digital transformation is critical for building successful and resilient businesses. While environmental sustainability has traditionally taken center stage, the increasing focus on social sustainability signals a holistic approach to tackling modern challenges.
Companies that prioritize environmental and social dimensions are on track to achieve lasting profitability and positive impact.
Sustainability, profitability, and digitalization are interconnected. For organizations ready to embrace this alignment, the opportunities are limitless. This brings me back to the statement my friend mentioned and how important, yet challenging, it is to stay on track with a sustainable and long-term profitable business despite all obstacles.
Learn more
Read our full report Envisioning the next level of enterprise digitalization and value creation
Catch up on earlier issues
Read about more research insights in this blog post “Finding the sweet-spot where tech and humans meet in the future of work”, authored by my colleague Sarah Kenlind.
Take a look at Ericsson’s acclaimed 5G smart factory
Learn more about Ericsson’s enterprise offerings across sectors such as automotive, energy, manufacturing, and more.
Decarbonizing industries with 5G connectivity - Ericsson
