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New ABB study on industrial transformation unveils critical relationship between digitalization and sustainability

- “Billions of better decisions” highlights the role of Industrial IoT solutions in reaching sustainability goals while empowering the industrial workforce
- International survey of 765 decision-makers reveals that while 96 percent believe digitalization is “essential to sustainability,” just 35 percent have implemented Industrial IoT solutions at scale
- 72 percent of companies are increasing investment in Industrial IoT specifically to address sustainability aims

ABB today released the findings of a new global study (1) of international business and technology leaders on industrial transformation, looking at the intersection of digitalization and sustainability. The study, “Billions of better decisions: industrial transformation’s new imperative,” examines the current take-up of the Industrial Internet of Things (IoT) and its potential for improving energy efficiency, lowering greenhouse gas emissions and driving change. The goal of the new ABB research is to spur discussion within industry regarding opportunities to leverage the Industrial IoT and empower companies and workers to make better decisions that can benefit both sustainability and the bottom line.

“Sustainability goals more and more are a crucial driver of business value and company reputation, and Industrial IoT solutions are playing an increasingly important role in helping enterprises achieve safe, smart and sustainable operations,” said Peter Terwiesch, President of ABB’s Process Automation business area. “Unlocking insights hidden in operational data holds the key to enabling literally billions of better decisions throughout industry and acting upon them, with significant gains in productivity, reduced energy consumption and lower environmental impact.”

The study, commissioned by ABB, found that an organization’s “future competitiveness” is the single greatest factor – cited by 46 percent of respondents – in industrial companies’ increased focus on sustainability. Yet while 96 percent of global decision-makers view digitalization as “essential to sustainability,” only 35 percent of surveyed firms have implemented Industrial IoT solutions at scale. This gap shows that while many of today’s industrial leaders recognize the important relationship between digitalization and sustainability, the adoption of relevant digital solutions to enable better decisions and achieve sustainability goals needs to accelerate in sectors like manufacturing, energy, buildings and transport.

Further key learnings from the study

71 percent of respondents reported greater priority given to sustainability objectives as a result of the pandemic
72 percent said they are “somewhat” or “significantly” increasing spending on Industrial IoT due to sustainability
94 percent of respondents agreed the Industrial IoT “enables better decisions, improving overall sustainability”
57 percent of respondents indicated the Industrial IoT has had a “significant positive effect” on operational decision-making
Perceived cybersecurity vulnerabilities are the #1 barrier to improving sustainability through the Industrial IoT

Win-win scenarios with the Industrial IoT

With 63 percent of executives surveyed strongly agreeing that sustainability is good for their company’s bottom line, and 58 percent also strongly agreeing it delivers immediate business value, it’s clear that sustainability and traditional priorities of Industry 4.0 efforts – speed, innovation, productivity, efficiency, customer-centricity – are increasingly intertwined, opening up win-win scenarios for companies looking to drive efficiency and productivity while making strides on climate change.

“The International Energy Agency (2) estimates that industry accounts for more than 40 percent of global greenhouse gas emissions today,” said Terwiesch. “If we are to reach climate objectives such as the UN’s Sustainable Development Goals and the Paris Agreement, industrial organizations need to implement digital solutions as part of their sustainability strategies. Embracing these technologies at all levels – from the boardroom to the facility floor – is key, as every member of the industrial workforce can become a better decision-maker when it comes to sustainability.”

ABB innovations for sustainability
ABB is committed to leading with technology to enable a low-carbon society and a more sustainable world. Over the past two years, ABB has reduced greenhouse gas emissions from its own operations by more than 25 percent. As part of its Sustainability strategy 2030, ABB expects to be fully carbon neutral by decade’s end and to support its global customers in reducing their annual CO2 emissions by at least 100 megatons by 2030, the equivalent of removing 30 million combustion cars from the roads each year.

ABB’s investments in digital capabilities are core to this commitment. With more than 70 percent of ABB’s R&D resources dedicated to digital and software innovations, and a robust ecosystem of digital partners, including Microsoft, IBM and Ericsson, the company has established a leading presence in Industrial IoT.

The ABB AbilityTM portfolio of digital solutions enables a host of industrial use cases to power improvements in energy efficiency, resource conservation and circularity, including condition monitoring, asset health and management, predictive maintenance, energy management, simulation and virtual commissioning, remote support and collaborative operations. Examples of ABB’s more than 170 Industrial IoT solutions include ABB AbilityTM Genix industrial analytics and AI suite; ABB AbilityTM Energy and Asset Manager; ABB AbilityTM Condition Monitoring for Powertrains; and ABB AbilityTM Connected Services for industrial robots. To learn more about ABB Ability, visit: https://global.abb/topic/ability/en

To continue the conversation on this important topic, ABB will host an industry webinar on Wednesday, March 2, focused on the convergence of digitalization and sustainability, and how the Industrial IoT and related technologies can help save energy, conserve resources, and improve safety for personnel and communities. Leading technology journalist and climate investor Molly Wood will moderate this virtual panel discussion featuring senior executives, best-selling authors and other thought leaders to explore this convergence and how industrial organizations can empower better, more sustainable decision-making throughout the enterprise.


12.02.2022

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ABB Turbocharging (www.abb.com/turbocharging) is at the helm of the global industry in the manufacture and maintenance of turbochargers for 500 kW to 80+ MW diesel and gas engines. Our innovative leading-edge technology enables our customers to increase their performance; producing lower emissions, and improving fuel consumption even in the toughest environments. Approximately 200,000 ABB turbochargers are in operation across the globe on ships, power stations, gen-sets, diesel locomotives and large, off-highway vehicles. We have over 100 Service Stations in more than 50 countries globally and a wide service portfolio that guarantees Original Parts and Original Service anytime, anywhere.

About ABB Group

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 136,000 employees. www.abb.com
 

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