University study finds NZ enterprises falling behind in digital sustainability

CODE Cutting Edge Research in 2022

Three researchers from the University of Auckland’s Centre of Digital Enterprise (CODE) have completed a 14-month study with 195 company executives across APAC countries to design the world’s first Digital Sustainability Index. Professor Ilan Oshri, Professor Julia Kotlarsky and Dr Laszlo Sajtos collaborated with Tata Consultancy Services, a multinational consulting firm which has used the data to create a Digital Sustainability Index.

The Digital Sustainability Index focuses on how digital solutions are contributing to sustainability outcomes across social, environmental, and economic levers. The report covers themes such as how digital sustainability can enable organisations to better understand corporate motivators and charting capacity and capability around digital technologies. The research team surveyed companies with an annual turnover from US$151 million to over US$10 billion across 12 sectors and ten markets in the region, namely Australia, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam. The study offers a tool for assessing an enterprise’s digital sustainability readiness and a classification of four performers ranging from market leaders to experimenters.

"Never has the impact of technology on the community and sustainable innovation been more relevant and more necessary, and together with TCS, we are confident the Digital Sustainability Index can help key decision makers in every company gain a better understanding of how technology can positively impact business outcomes and deliver longer term value for all stakeholders,” said Professor Ilan, CODE Director.

“At TCS, we believe digital has the power to positively change the world and digital sustainability is an enabler for all, no matter what country you are from, what sector you work in, or how big you are, and a mindset shift corporate leaders can adopt as the world accelerates on its transformation journey,” said Girish Ramachandran, President, TCS Asia Pacific.

“The Digital Sustainability Index will help organisations across the Asia Pacific understand how they might create, use, and regulate digital transformation, innovation, and resources to create future-fit, connected businesses that can deliver value for society today and in the future.”

Of the almost 200 C-level executives surveyed in this study, the vast majority (more than 85 percent) agree that digital sustainability can deliver a competitive advantage and is a central value of their companies. Most of the respondents (80 percent) also believe their corporate reputation in the market has improved as a result of digital sustainability initiatives implemented.

None of the New Zealand firms in this study were classified as a market leader, showing that we lack the digital capabilities needed to solve current and future sustainability challenges.

CODE calls for a coordinated effort involving NZ government, professional associations, enterprises and education institutions to devise a strategy that harnesses digital assets in addressing societal and environmental sustainability objectives.

Visit this information page about the Digital Sustainability Index to learn more.