The role of technology in sustainability

Earth Day, April 20, 2024, is a poignant reminder that the risks from climate change and decarbonization are higher than ever, and decarbonization is more important than ever. But decarbonizing the global economy and reaching net zero will not be easy. Our research shows that the transition could require an additional $3.5 trillion in average annual spending on physical assets by 2050. Achieving this goal requires urgent and decisive action, and organizations can play a variety of roles. In addition to managing their own risks and opportunities, they will likely need to play a pivotal role in the massive reallocation of capital to achieve net zero. Technology can help them get there.

For example, consider the potential impact of cloud-enabled technologies on decarbonization efforts in the transportation sector. McKinsey's Huang Gao, Eric Hannon, Cindy Levy and colleagues found that out of 455 use cases identified, more than 50 decarbonization efforts could reduce up to 2.8 GtCO2e by 2050. He writes that he has the potential to contribute. Key initiatives include load and route optimization, charging networks, real-time warehousing, and more.

Check out these insights to learn more about the important role technology plays in protecting our planet. Also, visit Catalyst Zero to learn how your organization can accelerate your journey to a low-carbon future.

Cloud-based technology that realizes sustainability

Leveraging digital and AI to tackle net-zero challenges in the energy sector

Beyond the Hype: New Opportunities for Generation AI in Energy and Materials

Data-driven insights that disrupt logistics enable greener shipping

New ways to decarbonize buildings can reduce emissions while increasing profits

Exploring new geographies: Greenfield opportunities in semiconductors

Beyond the factory: Decarbonizing upstream Scope 3 emissions

Make your software and data architecture more sustainable

More information from McKinsey

How a global parts manufacturer built an ambitious carbon reduction roadmap

McKinsey and Microsoft partner to accelerate decarbonization transformation

Combating climate change and promoting growth

Beyond the Hype: Unleash the Full Potential of Technology

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