A comprehensive report titled “Tech-Driven Sustainability Trends and Index 2024,” commissioned by Alibaba Cloud, reveals significant strides and ongoing challenges in corporate sustainability efforts across Asia, Europe, and the Middle East.
In a Zoom press briefing conducted by Alibaba, company executives said that 80 percent of businesses surveyed across these regions have established sustainability targets. However, over half of those setting targets (53 percent) still rely on manual methods to track their progress, underscoring a potential gap in the integration of digital tools within sustainability measurement practices.
Within the group of businesses with established sustainability targets, 92 percent have set emission reduction goals. However, only about one-third of these have committed to net-zero targets with science-based frameworks, reflecting varied levels of commitment across regions. The report indicates that emerging Asian markets lead in science-based target (SBT) adoption at 39 percent, followed by Europe at 35 percent, developed Asian markets at 30 percent, and the Middle East at 22 percent.
The motivations for setting sustainability targets vary, with around half of these businesses citing growth objectives (56 percent), regulatory compliance (54 percent), and strong corporate purpose (49 percent) as primary drivers. The report highlights regional differences, noting that 70 percent of businesses in Indonesia prioritize growth, Saudi Arabia leads in regulatory compliance at 73 percent, and the UAE emphasizes corporate purpose, with 61 percent of its companies aligning their goals accordingly.
The report also demonstrates strong consensus across regions regarding the role of technology in advancing sustainability objectives. Approximately 78 percent of businesses consider technology crucial to achieving global sustainability goals, with Malaysia (89 percent), Saudi Arabia (87 percent), Singapore (86 percent), and France (86 percent) expressing strong alignment.
Emerging Asian markets rank highly, with 83 percent of businesses supporting this view, just behind the Middle East at 86 percent. Similarly, 78 percent believe that adopting digital technologies, including cloud computing and artificial intelligence, can accelerate sustainability progress, with Saudi Arabia leading at 90 percent, followed by the UAE (84 percent) and Singapore (81 percent).
Singapore ranks highest in terms of overall sustainability commitment, achieving a sustainability index of 91 percent, closely followed by Germany at 89 percent and Indonesia at 86 percent. The sustainability index, a measure of the proportion of businesses that have set sustainability goals, reflects the diversity of commitment across the 13 markets surveyed.
Despite strong commitments, businesses face a range of challenges in meeting sustainability targets. Budget constraints are the most commonly cited barrier, impacting 29 percent of organizations and particularly affecting businesses in the Middle East (41 percent) and Europe (31 percent). Complex supply chains pose another significant hurdle, especially in the Middle East (35 percent) and Europe (29 percent), impacting 28 percent of surveyed companies. Technology limitations affect 23 percent of businesses, with a slightly higher rate in the Middle East at 26 percent, and time constraints remain a universal challenge, impacting 23 percent of respondents. For companies that have yet to establish sustainability goals, budget constraints (32 percent) and technological limitations (29 percent) are primary concerns.
The report underscores a prevalent reliance on manual methods for tracking sustainability metrics. Over half of the businesses surveyed continue to use traditional tools like spreadsheets and emails, potentially hampering the accuracy and efficiency of their sustainability measurements. This reliance is particularly high in the UAE (68 percent), Saudi Arabia (61 percent), and the UK (60 percent), with only a handful of countries, such as Hong Kong (29 percent), South Korea (43 percent), and France (49 percent), falling below the 50 percent threshold. In contrast, about one-third of companies are leveraging digital tools, including cloud platforms, to monitor and measure their progress. Indonesia, Singapore, and Japan demonstrate comparatively higher adoption rates for cloud-based solutions at 59 percent, 48 percent, and 43 percent, respectively, compared to the 38 percent average.
As part of its commitment to supporting corporate sustainability, Alibaba Cloud offers AI-powered solutions like Energy Expert, designed to help organizations accurately monitor and analyze carbon emissions and energy consumption. The company aims to address existing obstacles and foster innovation that aligns with global sustainability standards, providing a robust framework for businesses to meet their environmental goals.
