…Advancing ESG to establish Sustainable Digital Economy
Sustainable development is still one of the most important concerns confronting the modern world. The notion of a sustainable digital economy presents the most powerful and significant economic imperative that may lead a country out of crisis, establish plans and objectives and set them on to a path of sustainable development and progress.
The ultimate goal of the SDGs is to enable individuals, organizations, communities and people to achieve their full potential. They do so by promoting sustainable development and improve the quality of life. The mediating roles of social reforms and ESG sustainability framework are considered crucial concepts and pathways towards a sustainable digital economy notwithstanding.
The digital economy however, offers a plethora of advantages for advancing economies to achieve more equitable growth and human freedom. That, the rapid advancement of digital systems and their growing scale and complexity, new challenges for government and industry in promoting long-term digital growth, responsible consumption, reduced inequalities, define the emergent need for sustainable digital economy.
Quiet significantly, policymakers, development partners, entrepreneurs and ecosystem actors are contributing to advancing and discussing different perspectives and ideas on the appropriate governance techniques required to develop digitalized economies, govern the processes and advance digitalization impacts and its effects.
That said, if we want people-centred, inclusive and development-oriented information societies, where all have access to digital technologies, where everyone can create, access, utilize and share information of their choice, legal frameworks need to be put in place to protect security and privacy in the digital age so to avoid potential large-scale intrusions and minimize abuses.
However, to make the most of digital technology, a free flow of data must be encouraged, backed up by a set of rules that meet other policy goals and measures. This governance protocols should appropriately balance potential advantages and risks of digitalization and maintain a sustainable digital economy for the speed up of data processing, minimize the number of tasks and provide concentration pressure for economic activity.
The Power of Digital
Digital transformation has already generated tangible and measurable results in promoting economic sustainability and human well-being. In the wake of digitalization trends and economic emancipation, digital innovations are creating development opportunities faster than ever. Digital has remain a crucial driver for decent work, growth and well-being and is having a profound impact across all sectors of the economy.
Arguably, the digital economy is transforming global production and consumption patterns and is profoundly reshaping the way we interact both in the private and public spheres. Digital platforms, in particular, harbour vast potential to foster growth, technology spill-overs and innovation. In many developing countries for instance, they create entrepreneurial opportunities, allow workers to participate in more formalized and fair work relations and propel formerly marginalized groups into a global economic and financial systems.
The internet and digital technologies can and will boost economic, social and political development, including by vastly expanding the capacity of individuals to enjoy their right to freedom of speech and expression, which is key to empowering human rights. In fact, information technology is considered a formidable enabler of freedoms.
Today, digital economies encompass the rapid growth of information and communication technologies (ICTs) with the expectation that they will accomplish substantial technical advances to attain digital sustainability. In addition, globalization and the digital economy have resulted in extraordinary expansion across all private and public sectors and the creation of a worldwide accessible market. One must emphasize the importance of governments and private sectors collaborating however in developing this frontier of new digital ecosystem because a connected nation may transform a digital economy with more effective and convenient private and public sectors participation.
Digitalization and the role of ESG Governance
The goal of governance is to maximize the public interest through guiding, steering, and regulating actions of people through the use of various institutions and relationships. As it is defined, good governance expresses the commitment to democratic ideals, norms and practices, trustworthiness services, just and honest business and the procedures and institutions that drive political and socioeconomic connections.
Good governance leads to a sustainable digital economy. According to United Nations, good governance stands on the principles of transparency, participation, consensus-oriented, the rule of law, effectiveness and efficiency, equity and inclusiveness, responsiveness and accountability. It presents a process rather than a collection of rules or activity; a process which is based on cooperation rather than control and ongoing interaction.
To that effect, to consolidate effective good governance principles towards sustainable economic development, it is highly imperative to reconsider digital collaboration, integration and support by all stakeholders of the economy. Significantly, the immeasurable impacts of digitization on good governance is the continual process of balancing competing or divergent interests and taking coordinated actions. The all-encompassing advantage of digitalization on good governance are the enhancement of social trust and the effective management of shared concerns which is good for the sustainability of the economy.
Sustainable Digital Economy
Let me make a case that, sustainable businesses have both self-interest and collection aims in mind, focusing on economic, environmental, and social objectives (ESG). The digital economy space expresses the actions that may be employed to creatively meet sustainable development goals. From hindsight experience, it is acknowledged that, the influence of sustainability goals with digital technology has become essential in both corporate and governmental sectors.
The obvious development is that, every country in the world now looks for ways to revitalize its economy to experience robust growth. To achieve this ambition means to drive towards a digital economy, an effort that could spur commodity circulation and the growth of the service industry through the interchange of digital information and online transactions.
Moreover, in this digitalization era, ICT tools are seen providing a worldwide platform for individuals and organizations worldwide, allowing intercommunication and collaboration between various players. The robust impacts on individuals, businesses and government economically in recent times equally have shifted emphasis to the digital economy because it provides several benefits, such as low costs, speed of transactions and international coverage. What is the way forward towards sustainable digital economy then?
Advancing digital transformation with ESG goals
To start, digital transformation is often inspired by a broader purpose that goes beyond an organization’s immediate commercial success. The more the digital transformation is supported by ESG factors, the more likely it is to be successful. The more ESG initiatives take advantage of what technology has to offer, the more efficient and effective they will be as well.
Digital transformation and ESG are two prominent and high-priority issues in today’s business community globally. The first focuses on applying technology throughout the value chain to produce faster, smarter and more desirable business outcomes. The latter emphasizes the broader value a business is expected to create for its stakeholders from an environmental, social and governance perspective. The two go hand-in-hand in stakeholder sustainable economic growth.
Take for instance, the more companies are building supply chain data management platforms and adopting full material disclosure and life cycle assessment to evaluate the environmental impact of their supply chains, from manufacturing to transportation and product use to product recycling, the more there is the need for ESG initiatives to guide this efforts.
Building digital transformation on ESG principles safeguards sustainable economic development and transformation as a result of its accomplishing goals and values for the creation and execution of a clear, suitable and sound systems of accountability, efficiency, responsibility.
The digital journey is a necessary evolution in the corporate market, there is no denying it. The adoption of technological tools capable of improving the execution of processes, improving deliveries and facilitating the integration between systems and teams is crucial for companies to better adapt to the rapid changes in scenarios and targets, in addition to help building innovation-oriented organizational cultures and with broader perspectives on their real role in society.
In summary, I will emphasize that just adopting new technologies is not enough. Necessarily, individuals, organizations and nations should be concerned with other issues such as social, governance and environmental ramifications and impacts such technologies have towards a sustainable economy.
Discovery….Thinking solutions, shaping visions.
Written By:
ABOUT FRANK ADU ANIM:
Frank the CEO and Strategic Partner of AQUABEV Investment and Discovery Consulting Group. He is an Executive Director and the Lead Coach in Leadership Development and best Business Management practices for Discovery Leadership Masterclass. and Management, Switzerland.
Email: [email protected] or [email protected]
Tel: +233-0241824033/+233-0501324604
