Twin transition: How technology drives sustainability goals.

Tech gets a lot of heat for being an emissions culprit (looking at you, data centres and e-waste), but plot twist – it’s also the secret weapon in the fight against climate change. That’s the essence of the “twin transition”: the powerful combo of going into digital and going green.

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In fact, the World Economic Forum (WEF) says digital solutions can slash global emissions by 20%. That’s one of the reasons why climate advocates have praised the power of the twin transition. And enterprises that understand the importance of technological innovations and sustainability are readily embracing this phenomenon. 

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Let’s break down this buzzword and show you how tech and sustainability are teaming up to reshape the future – and how your business can join the ride.

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What is twin transition?

“Twin transition” is the term for when digital transformation and sustainability goals go hand-in-hand. Think AI, IoT (internet of things), data analytics, and cloud computing, all being used to cut emissions, boost efficiency, and build circular economy models.

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The concept of twin transition was first introduced in the European Union (EU), according to an article published in the Journal of Innovation Economics & Management. However, today, the term is used globally to describe efforts in technology and sustainability, with the former empowering the latter in most cases. 

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This dual shift allows countries, cities, and organisations to optimise operations through technology and align their strategic goals with climate commitments, like the global 2050 net-zero pledge. 

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How tech actually enables sustainability

Let’s be real: you can’t fix what you don’t measure. That’s why data is at the heart of sustainability efforts. To target emissions, reduce and offset them, and promote sustainable practices, the first step is to understand the climate impact. And that’s where data is a godsend. 

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Also, digitisation increases efficiency across supply chains, processes, and workflows, which, in turn, reduces greenhouse gas emissions. They often do so by increasing energy efficiency for equipment, machinery, and computers that are used across industries. 

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Tech is so central to the green revolution that achieving sustainability may be challenging without it. A study investigating the twin transition in European regions found that places more focused on information and communication technology (ICT) are more likely to achieve twin transition than regions solely focused on green initiatives. 

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That’s because technological innovations, and most importantly, all that data, can help target the crux of the problem: emissions. It’s not just a tool for operational improvement; it is an essential enabler of sustainable transformation, which empowers businesses to proactively address environmental challenges while enhancing efficiency, competitiveness, and resilience.

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The four pillars of twin transition

So, what kind of technologies make up the so-called twin transition? Here are four key technologies:

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Data analytics

Of course, data is the holy grail of solving the climate crisis. It’s what helps organisations and governments understand their carbon footprint in the first place and plan accordingly. Data analytics is essential for translating raw data into actionable insights that drive sustainability efforts. 

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Companies, in particular, can use sophisticated data analytics tools to monitor and optimise energy consumption. But that’s not where data’s power ends. It can also effectively analyse supply chain emissions and maximise resource efficiency. 

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The good thing is that most tools and systems used in various industries have built-in analytics. However, that analysis can be taken to the next level with more advanced tools that can handle big data and process queries in real-time. 

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Fun fact: Predictive analytics alone can cut emissions by up to 15% in just five years. Now that’s ROI. Additionally, adopting data-driven sustainability practices showed a 30-40% reduction in carbon emissions, water consumption, and waste generation.

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Internet of Things (IoT)

IoT technology connects devices and systems to gather and analyse data in real time. It’s also proving to be invaluable for the twin transition. How? The data, directly coming from devices, enables more informed and sustainable decisions. 

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Think of smart sensors embedded in buildings, grids, and manufacturing equipment that continuously monitor environmental parameters, including temperature, humidity, and energy consumption. These sensors can help optimise the use of energy and other resources, ultimately bringing down the carbon footprint of a premise. 

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Similarly, IoT can drive sustainable practices in manufacturing. For example, sensors can detect if equipment is running inefficiently and requires maintenance, preventing downtime and wastage. 

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Artificial Intelligence (AI)

AI isn’t just for writing emails and generating cat images. It’s also revolutionising sustainability. With machine learning, it’s possible to predict energy consumption, find areas of improvement, and improvise resource allocation. Basically, AI models, powered by data (again, super important), can provide insight and even make decisions in certain circumstances. 

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For instance, in agriculture, AI-powered precision farming techniques optimise resource use such as water, fertiliser, and pesticides, enhancing crop yields while minimising environmental impact. Blue River Technology's "See & Spray" robots, now part of John Deere, are doing exactly that. These AI-powered robots can distinguish between crops and weeds and precisely apply herbicide only to the weeds. Not only does this technology save money, but it also minimises the chemicals released into the environment. 

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Carbon accounting platforms

Carbon accounting platforms are digital solutions designed to automate the tracking, measurement, and reporting of GHG and ESG protocols. They’ll crunch the big numbers so you don’t have to.

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But it’s not just about compliance. These platforms help you set real targets – and actually hit them.

Real-world examples of twin transition

Fortunately for our planet, twin transitions are occurring at every level and proving that technology can pave the way for sustainability: 

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Denmark's technology-centric energy transition. 

Denmark has tapped digitisation and renewable energy to dramatically bring down its energy-related emissions. With digital metering, smart thermostats, and systems for building maintenance, the country has used technology to target energy consumption. Additionally, Denmark also plans to have 60% of its electricity produced from wind sources, for which it’s turning to AI to predict wind patterns so as to maximise energy production. 

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Schneider Electric synergising digitisation and low emissions.

Schneider Electric specialises in energy management and automation solutions and is a strong example of enabling the twin transition for its clients and even within its own operations. It offers digital technologies, including IoT-enabled platforms and software, that allow businesses to monitor and optimise their energy consumption, enhance operational efficiency, and minimise their environmental impact. Their own strategies also reflect this, as they focus on developing and implementing digital solutions that contribute to a more sustainable and decarbonised world.

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How can companies embrace digitalisation and sustainability – the twin transition?

Embracing the twin transition is no longer merely an option for companies but a strategic imperative. It’s good for business and, of course, the planet. Adopting technologies like carbon accounting can ramp up efforts to go green while also saving operational costs. 

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A good place to start is the Twin Transition Playbook – a guide created by the Royal Schipol Group and PA Consulting, which outlines three phases and seven steps. Inspired by this playbook, here’s a streamlined version for businesses ready to go green and digital:

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• Develop an integrated strategy: Define a clear vision and strategy that explicitly links digital transformation and sustainability goals. This involves identifying how digital technologies can enable environmental objectives and how sustainability can inform digital innovation
• Assess current digital and environmental maturity: Evaluate your enterprise’s current capabilities and performance in both digital adoption and environmental sustainability to identify gaps and areas for improvement
• Identify synergistic opportunities: Pinpoint specific areas where digital solutions can directly contribute to environmental sustainability, such as using data analytics to optimise energy consumption, implementing smart technologies for waste reduction, or investing in digital platforms for supply chain transparency
• Invest in green digital technologies: Allocate resources towards technologies that offer both digital advancements and environmental benefits, such as IoT sensors for monitoring resource use and ESG software for sustainability reporting
• Redesign business models: Explore innovative business models that are inherently more sustainable and enabled by digital technologies, such as circular economy models, product-as-a-service offerings, or data-driven efficiency services
• Enhance data collection and analytics for sustainability: Implement systems to collect, analyse, and report on environmental data using digital tools
• Engage the supply chain: Collaborate with suppliers and partners to promote a twin transition throughout the value chain
• Monitor, measure, and report: Establish key performance indicators (KPIs) to track progress on both digital and sustainability fronts. Regularly monitor performance, measure the impact of twin transition initiatives, and report on progress to stakeholders
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The time to act? Yesterday. But today works too

Climate deadlines aren’t getting any looser. If your business isn’t already making moves toward a smarter, more sustainable future, it’s time to start. And if you’re looking for a tech partner to help you get there? That’s where comundo steps in.

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comundo helps real estate investors and businesses understand and optimise energy usage. It automates data collection and processing, so the energy footprint makes sense and companies can make decisions that eventually bring down emissions. It’s smart, it’s scalable, and yes, it’s part of the twin transition.