ESG (environmental, social and governance) has moved beyond just ticking a box to an enabler of business value. IDC predicts that, by 2024, 30 percent of organizations will advance their ESG metrics and data management beyond reporting capabilities to generate sustainably driven cost and competitive advantages. That is not a huge number, yet it’s a significant percentage. 

Nevertheless, there are several challenges that hamper organizations’ ESG efforts from progressing to the next level and bringing real value. Data, according to reports, is one of those key challenges.

A new global IBM Institute for Business Value (IBV) study, “The ESG ultimatum: Profit or perish,” of executives and consumers reveals that while an increased focus on environmental sustainability remains a top priority for consumers and business executives, inadequate data is a key challenge for both groups when it comes to achieving personal and corporate ESG goals. This is despite the encouraging fact that 76% of surveyed executives saying ESG is central to their business strategy. 

41 percent of executives in the survey point to inadequate data as the biggest obstacle to their ESG progress, followed by regulatory barriers (39%), inconsistent standards (37%) and inadequate skills (36%). Without the ability to access, analyze and understand ESG data, companies struggle to deliver greater transparency to the consumer – a key stakeholder – and meet consumer expectations. 

This also explains why a whopping 95 percent of surveyed executives say their organizations have developed ESG propositions; however, only 10 percent say that their organizations have made significant progress against them. Almost 3 in 4 surveyed executives (73%) say their organizations struggle to manage an overload of manual data, while 7 in 10 say they have difficulty consolidating or manipulating data. 

How ESG leaders address the data overload 

The study highlights ESG leaders, a sub-set of respondents with greater maturity in operationalizing ESG, who are seeing higher revenue, improved profitability, deeper customer engagement by approaching ESG as a transparency play that creates strategic business opportunities. These role models provide a roadmap for organizations looking to overcome data-related challenges and create sustainable change that includes: automating ESG processes and reporting capabilities to keep data current; tapping AI for enhanced insights into performance, forward looking analysis, and scenario development; aligning with ecosystem partners on ESG metric definitions and standards; and proactively establishing ESG data governance principles with stakeholders.

“Data is the lifeblood of ESG. Now is the time for enterprises to act. By operationalizing ESG plans, enterprises are putting information in the hands of operators who can make informed business decisions that can improve their ESG impact on a daily basis,” said Jonathan Wright, Global Managing Partner Sustainability Services and Global Business Transformation, IBM Consulting. “Organizations looking to increase stakeholder support and meet ESG reporting requirements should implement a sustainability roadmap that is inclusive of technologies, services and ecosystem partners that can position them for greater business success and help them address regulatory compliance,” said Wright.

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 DXC Technology has forecast five ways the digital security landscape will impact life and business in 2023 and beyond. Here’re the top 5 trends, according to the company. 

1. The cybersecurity arms race will accelerate

Cybercriminals and cybersecurity professionals will both use artificial intelligence (AI) in an increasingly sophisticated battle of wits. In the case of cybersecurity defense, AI has been mainly used to identify patterns of suspicious behavior. Due to the volume of suspect activity and the number of false positives, cybersecurity staff are often overwhelmed.

The good news is that in 2023 and beyond, we should be able to start automating AI-based security controls and response mechanisms – helping to react faster and more accurately to cyberattacks, reducing possible downtime and protecting personal and business critical data.

2. We’ll need to be cautious about who we think we’re talking to in the metaverse (while keeping a firm hold of our digital wallets)

2023 is set to be important year for the metaverse with Meta, Microsoft, Virbela and others counting on virtual worlds going mainstream. However, activity in the metaverse can raise questions around identity; how do you know that the person you think you are talking to is who they say they are? Digital certificates, perhaps built on the blockchain, could help. These certificates could also be used to secure virtual transactions in the metaverse. What is clear is that as the metaverse expands, so too will the risks.

3. Geo-political cybersecurity attacks will increase but also lead to innovation in defense

Russia’s attack on Ukraine has reminded us in the starkest way possible that warfare is now hybrid and the risks of geopolitically motivated cyberattacks are real. As a result, many cyber insurance policies are now being written to exclude acts of cyberwar, creating challenges for cyber risk mitigation.

With lingering geopolitical tensions, this threat is set to continue in 2023. In fact, with more than 70 countries due to hold government elections in 2023 (events frequently targeted by state-sponsored actors), it will be a challenging year for cybersecurity defenses. However, we can learn from case studies such as Ukraine’s ‘exemplary’ defense against Russian cyberattacks.

4. Cybersecurity attacks will target critical national infrastructure that supplies our homes

When the lights go out or the gas is cut, most people are unlikely to think it’s the result of an industrial cybersecurity breach. But Operational Technology (OT) is an emerging battleground for cyberattacks, with the systems that control and automate factories and civil infrastructure (including power stations and dams) becoming a target.

With ongoing geopolitical tensions, the OT cyber threat will grow in 2023 putting pressure on industries to ensure they stay one step ahead by baking in cybersecurity protection across their operations.

5. Career opportunities in cybersecurity will grow

There is an estimated global shortfall of around 3.4 million cybersecurity workers. With growing threats from advanced technologies, this number is likely to increase.

The cyber skills gap creates career opportunities for people of all ages and backgrounds. 

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