Hanshow, Microsoft, Intel, and E Ink have released a white paper on the mutually beneficial growth of digitalization and sustainability, known as green digitalization, and how the practice may help retailers grow their businesses responsibly.
The white paper emphasizes how emerging digital technologies, such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) are transforming the retail industry. With this transformation and the increasing attention retailers have given to sustainability, a number of digital tools are also being developed to improve energy efficiency, reduce emissions, or reduce waste, among other technologies that support sustainable operations.
“Digitalization and sustainability are now two megatrends that retailers around the world, especially traditional retailers, must embrace,” said the report. “Digitalization and sustainability should be at the top of every retail CEO’s agenda.”
Green Digitalization Tools May Drive Business Growth
The report shows the impact of the growing online retail industry and its vast retail supply chains, noting that the industry accounts for about 25% of global emissions. With such levels of impact, the report explains that green digitalization tools may help mitigate environmental consequences of retail operations both online and in-store, all while increasing revenue.
For example, Hanshow’s Smart Shelf Management system may be used to determine the on-shelf availability of a store’s products, a common priority for retailers and especially grocery stores. The companies also endorse the adoption of renewable energy sources, particularly solar power, for store and facility operations.
While not without upfront costs, adopting such technologies may allow companies to save on energy expenses, better understand market demand, and reduce resource waste, among other economic benefits in the long run.
“As the digitalization of retail gains momentum, more retailers are harnessing AI as a cornerstone for improving business operations, driving revenue growth, and gaining deeper insights into consumer preferences,” said Richard Zhang, chief technology officer and senior principal AI engineer for Intel. “Intel’s collaboration with Hanshow revolves around integrating our advanced technologies to enhance these efforts, thereby enabling retailers to not only deliver unique shopping experiences but also contribute to environmental conservation.”
Technologies May Meet the Need for Sustainability Acceleration
As countries have made ambitious decarbonization targets, the global clean energy transition and other major sustainability goals require expedient, streamlined effort that may be accelerated through various sustainability-based digital technologies.
AI and machine learning are already being used to improve efficiency for utilities adopting renewable energy sources, and digital workflows for carbon capture projects have also been introduced. Most ESG regulations also require companies to process and report on large amounts of information, so data management software and other online platforms have been developed to help companies efficiently meet such reporting standards.
In addition to the white paper, the four companies have launched the Green Digitalization Joint Action Initiative for the Retail Industry, encouraging global retailers to adopt green digitalization strategies going forward.
