Siemens: Data Gaps Are Hindering Corporate Decarbonisation

It is often said that data is the key to decarbonisation. When asked for his one piece of advice at the Global Sustainability & ESG Awards ceremony this year, Ndustrial CEO Jason Massey said simply: "Trust the data."

But according to new research from German tech conglomerate Siemens, companies around the world are struggling to harness the data they have, or are finding it hard to find the right data whatsoever.

Data can be a little like sitting in the command module of a space rocket. It has the potential to get you places incredibly quickly, but it's often hard to know how to get the engine started.

The role of digitalisation in decarbonisation

The Siemens report, entitled 'Digital Transformation, Sustainable Returns: The New Pathway of Infrastructure', surveyed 650 senior executives across various sectors, shedding light on the intricate relationship between digital technologies and sustainability goals.

The findings reveal a significant disconnect between the potential of digital solutions and their current implementation in decarbonisation strategies.

While 55% of respondents acknowledged that digital technologies have substantial potential to advance their decarbonisation efforts, a sizeable 45% reported seeing little to no such potential.

This disparity suggests a lack of understanding regarding the full capabilities of digital tools in driving sustainability initiatives.

Insights from Siemens executives

Thomas Kiessling, CTO of Siemens Smart Infrastructure, was keen to emphasise the urgency of leveraging existing technologies.

"Digitalisation is a powerful enabler of sustainability, and decarbonising our buildings, grids and infrastructure is within reach with solutions that exist today," he said.

"For example, with IoT driving down the cost of smart building technologies, we can connect systems, reduce energy use, and unlock massive savings."

Data availability: A major challenge

One of the most striking revelations from the study is the widespread challenge organisations face in accessing and utilising crucial data.

Despite 54% of surveyed companies claiming mature or advanced data-driven operations, many struggle with data availability in key areas essential for improving decarbonisation and resource efficiency.

Notably, 44% of respondents lack emissions data, 46% lack plant and machinery performance data and 30% lack energy consumption data.

This data deficit poses a significant obstacle to organisations aiming to reduce their carbon footprint across all scopes of emissions.

Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased electricity, steam, heating, and cooling), and Scope 3 (all other indirect emissions in a company's value chain) all require comprehensive data for effective management and reduction strategies.

The importance of smart infrastructure

The energy transition, a crucial component of global decarbonisation efforts, heavily relies on data-driven insights and decision-making. The study underscores the importance of smart, connected infrastructure in energy management.

However, even when data is available, many organisations struggle to effectively integrate, manage and analyse information from diverse sources.

AI as a key player

AI emerges as a beacon of hope in this landscape, with 33% of respondents believing it will have the most significant positive impact on decarbonisation and resource efficiency in the next three years.

Other technologies such as IoT, digital twins, smart grids and edge computing are also recognised for their contributions to emission reductions.

The report also highlights the benefits of adopting digital platforms, with executives citing scalability, time and cost efficiency, faster implementation, reliability, and interoperability as the top advantages.

These platforms are increasingly seen as essential tools for organisations looking to streamline their sustainability efforts and improve overall operational efficiency.

A call to action

As companies grapple with the complexities of decarbonisation, the need for a more holistic approach to data management and digital transformation becomes evident.

The Siemens study serves as a wake-up call for organisations to reassess their digital strategies and invest in technologies that can provide the necessary insights for informed decision-making on the path to net zero.

Thomas sums up the urgency of the situation well. He says: "To accelerate decarbonisation and meet critical climate targets, we must harness digital technologies like AI and IoT in a more transformative way. The solutions exist, the savings are clear – there is no reason not to act now."

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