A recent survey commissioned by Alibaba Cloud, the cloud unit of Alibaba Group, highlights that while 80% of businesses across Asia, Europe, and the Middle East have set sustainability goals, more than half (53%) still rely on manual methods to track their progress.
This pattern holds in the Philippines, where 81% of businesses have set sustainability goals, but 55% continue using manual tools like spreadsheets and emails to measure their efforts.
The Alibaba Cloud report titled “Tech-Driven Sustainability Trends and Index 2024” shows that 92% of businesses with sustainability targets focus on reducing emissions. However, only about a third have committed to achieving net-zero emissions based on science-based targets (SBTs). The Philippines follows this trend closely, with a large number of businesses working toward emission reduction but fewer aiming for full net-zero goals.
“Organizations must rethink their sustainability measurement practices and adopt advanced technologies like cloud platforms and (artificial intelligence) AI,” Selina Yuan, president of International Business at Alibaba Cloud Intelligence, said in a statement. “These tools simplify the process and offer insights that drive meaningful progress.”
In the Philippines, regulatory compliance is the biggest reason businesses set sustainability targets, cited by 60% of respondents. This is followed by business growth (59%) and the desire for a strong corporate purpose (45%).
The survey also highlighted the importance of technology in achieving sustainability goals, with 78% of respondents agreeing that digital tools like cloud computing and AI can speed up progress. This belief is strong across regions, including the Philippines, where many businesses see technology as a crucial enabler for meeting their targets.
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However, businesses face several challenges. Budget constraints are the most common issue, affecting 29% of businesses worldwide. In the Philippines, 30% of companies also cite technology limitations as a significant barrier to meeting their sustainability goals. This is much higher than the global average of 23%.
“By offering innovative solutions like our Energy Expert platform, we aim to help businesses measure and analyze carbon emissions more effectively,” Yuan said. “Addressing these barriers through technology can help organizations align their sustainability initiatives with their goals.”
The survey provides insights into the shifting landscape of corporate sustainability across multiple regions and industries. In the Philippines, it’s clear that while many businesses are setting sustainability goals, they are still in the early stages of adopting the necessary technologies to measure and achieve them effectively.
The survey collected responses from 1,300 business leaders across 13 markets in Asia, Europe, and the Middle East between May and June 2024. Key industries included technology, finance, healthcare, retail, and manufacturing.