Expert opinions, INVESTMENT CLIMATE

How IT solutions affect the ESG agenda

Traditionally, the topic of sustainable development is actively commented by representatives of corporations, but ESG principles are also implemented in small companies. IT products themselves are environmentally friendly, and solutions, helping to reduce the carbon footprint from production, perform in addition, a regulating function.

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It is surprising that the greener the company’s processes are, the more efficient they can be – this is especially true for supply chains and logistics. Inaccurate predictions of consumer demand often lead to    situations of shortages and oversupply, when you have to bring additional goods or pick up surplus from store or dispose it – in both cases you need to use additional energy and cash resources.

Accurate forecasting of consumer demand also avoids food residues – one from major sources of greenhouse gases. Optimizing supply chains with using digital solutions based on AI will help solve this problem to some extent: the fewer goods not purchased remains in warehouses, the greater the chances that they will produce minimal amount of harmful gases.

If we consider not only the environmental component of the ESG movement, but also social and corporate one, then small companies are able to create a truly comfortable and developing environment for employees. In our team, we organized a running and triathlon club. Based on this club now we develop the idea of a volunteer movement for professional sports-paraathletes; among them, by the way, there are many talented developers.

Despite the fact that the geopolitical crisis is now the most popular agenda in news and at the planning meetings of companies, ESG principles did not lose popularity. They allow companies not only to receive benefits in investment attractiveness, but to influence really the development of the industry, forming culture of consumption of services and products, and entering into a constructive dialogue with community.

By Evgeny Nepeivoda, Managing Partner of Novo BI

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