LONDON–(COMMERCIAL WIRE)–Most business leaders (76%) in major industries doubt the environmental, social and governance (ESG) reporting of their peers, according to a new study by Inmarsat, the world leader in global mobile satellite communications .
The findings come from a new independent global research report. Accelerating sustainable action through IoT commissioned by the company. Explore the views of more than 1,000 senior ESG and technology decision makers in agriculture, mining, transportation, utilities, and oil and gas companies. The survey asked professionals about their perceptions of ESG and whether they believed the data provided by Internet of Things (IoT) solutions could help improve reporting transparency.
Respondents also report concerns about the ESG priorities of their peers, with 80% saying their competitors are more focused on perception than achieving tangible sustainability results.
However, despite skepticism about the motivations of their peers, most business leaders have faith in their own initiatives: 81% are convinced that their company is more sustainable than its competitors.
LACK OF DATA CAUSING LACK OF TRUST
The results suggest that a lack of verifiable data, and a willingness to share it, is undermining trust and slowing progress on corporate sustainability.
Positively though, many believe that data collected through IoT solutions is critical to building trust (81%) and improving overall ESG results (82%).
Four in five respondents plan to increase their use of IoT solutions over the next 12 months to more accurately measure and understand the impact of their sustainability initiatives. A similar proportion reported that they are already seeing a return on investment from IoT tools used to improve sustainability (78%).
While most (83%) agree that more could be done to effectively leverage IoT solutions to produce ESG data, entrenched resistance to data sharing creates an additional barrier to progress.
Only 47% said they would be comfortable sharing all of their ESG data with third parties to improve reporting and industry benchmarking over the next 1-3 years, reinforcing that improving trust will be key to achieving better results.
SATELLITE CONNECTIVITY KEY FOR IOT
With big data at the heart of IoT effectiveness, nine in ten (91%) agree that satellite connectivity is the key to realizing the full potential of IoT solutions focused on improving sustainability.
Currently, just over a third of respondents (36%) rely on satellite networks for IoT connectivity. However, satellite will become the most popular connectivity method over the next decade, with half expecting to use it within this time frame.
IoT-enabled data is not the only way that satellite technology can help improve environmental outcomes. The recent Inmarsat report ‘Can space help save the planet?’ The report revealed that the world could reach Net Zero by 2040, ten years ahead of schedule, accelerating the adoption of space and satellite technologies.
Networks like Inmarsat ELERA are critical to this, providing ultra-reliable global connectivity that enables data sharing across industries such as agriculture, power, mining, oil and gas, and transportation.
Jat Brainch, Inmarsat’s director of business and product, said: “You can’t manage what you can’t measure, so it’s encouraging to see so many organizations turning to IoT to assess and improve ESG reporting.
“However, to demonstrate progress, companies must overcome their reluctance to share useful data and have the confidence to publish meaningful information. Otherwise, they risk undermining genuine collaboration on sustainability and overshadowing the real progress that is being made. There is no quick fix, but methodical benchmarking based on actionable data and sharing results will play a critical role in re-establishing trustworthy ESG reporting.
“IoT is nothing without connectivity. However, ground coverage often cannot reach the remote locations where our most valuable data points often originate. By using satellites to bridge that connectivity gap, organizations can access data to make the right decisions immediately. We need to make the most of that opportunity if we want to achieve Net Zero quickly.”
David Hill, CEO of IoT Community, said: “Connected IoT solutions are the key to sourcing, analyzing and sharing aggregated ESG data in a secure and compliant manner. In the same way that we use wearable devices to measure our personal health, companies should rely more on IoT solutions to monitor progress, reduce costs, improve security, and maximize sustainability. Robust data will support your ESG assertions and can be used for reporting across all areas of your operations, particularly in remote locations with challenging conditions.
“To be truly successful, we need to change our mindset around data sharing and connectivity. Once companies feel comfortable sharing their ESG insights to improve broader industry benchmarking and reporting and prioritize satellite connectivity as a key enabler, we will start to see real progress on sustainability.”
ENDS
Notes to editors
The report ‘Accelerating sustainable action through IoT’ focuses on the challenges, opportunities and priorities companies juggle as they work to enhance their sustainability credentials and the role satellite-enabled IoT solutions will play in driving this change.
This report is based on independent research conducted by Censuswide on behalf of Inmarsat, which surveyed more than 1,000 senior technology and ESG professionals with sustainability decision-making power across a range of company sizes (sole trader, 1- 9, 10-49, 50-99, 100-249, 250-500 and more than 500 employees). Respondents spanned the agriculture, mining, oil and gas, utilities, and transportation sectors in Europe, North America, South America, Africa, and Asia. As such, the results represent a wide range of companies at various stages of their industrial IoT adoption and sustainability journeys. Data was collected in August/September 2022.
ABOUT INMARSAT
Inmarsat delivers world-leading, innovative, advanced and exceptionally reliable global mobile communications around the globe, in the air, at sea and on land, which are enabling a new generation of business, government and mission-critical services.
In November 2021, Inmarsat and Viasat announced the planned combination of the two companies to create a new leader in global communications.
