Prioritizing “Net-Zero” in industry digitization: How Swiss companies can maximize their returns on digital with one simple step.

We’ve all heard how much “Industry 4.0” and IoT solutions will help decarbonize Switzerland’s industries… at least in theory.

But in practice, we don’t see significant outcomes yet – which is, in my view, in no small part a result of how companies plan and execute their industry digitization efforts.

Because although almost all our companies here talk a lot about prioritizing sustainability and emission reduction, very few invest in what I’d call significant amounts; as far as I know, there are very few significant, multimillion-Franken efforts underway right now (if any).

It’s a painful miss– and not just regarding our environment but also the returns on investment from industry digitization...

Because as I’ll explain here, manufacturers’ bottom lines could benefit significantly from net-zero investments. But first, let’s review some data describing the status quo.

Net zero numbers are in, and they’re not pretty

A new report from Accenture makes it clear: Switzerland’s businesses, while committed to decarbonization through “net-zero” strategies, aren’t making enough progress with their efforts.

The study’s results indicate that 50 percent of the Swiss companies are currently pursuing a “net zero” strategy… but almost 93 percent (!) of these are on track to miss their targets.

A shockingly high number, sure. But a surprising one? Probably not.

So, who’s putting sustainability into practice?

The experts behind the report point to a series of steps companies could take to improve their progress – and three-fourths are about setting and pursuing net-zero targets. Yes, you read that right: Targets.

And I’d say the authors are right to recommend setting these for good reasons.

In my experience, too few companies still include sustainability (or, more specifically, net-zero) targets in their digitalization strategies.

Our Industry X practice here works to help with likely hundreds of industry digitization efforts across all of Switzerland’s key industries. And while the share of initiatives containing hard, substantial sustainability objectives is rising, we’re still seeing too few of them, in my view.

If I’m right, most of the industry 4.0 work being commissioned in this country is still designed in ways that do not support the decarbonization of Switzerland’s economy as much as they could. And that’s despite how crucial digitization could be to delivering net-zero outcomes!

It’s a real issue and challenge at the same time for more than one reason.

Two net zero misses – a single, big opportunity

Reason one is obvious: If we fail to leverage Industry 4.0 and the digitization of our – often highly energy-intensive – manufacturing industries and their products, we’ll fail to pull a significant lever for reducing CO2 emissions and decarbonizing the economy.

Studies have shown how innovations like smart production, AI-powered efficiency improvements in fully integrated supply chains, or the “de-materialization” of industries through, for example, digital twins (or “Metaverse” solutions) could help save as much as 7.5 gigatons of CO2 emissions by 2023.

But there’d be more to such a failure – because we’d also miss a significant opportunity to create a competitive edge for Swiss companies and improve the returns on our industry digitization efforts… which would be the second “net zero miss.”

How to create your “green” competitive edge

Accenture research indicates that companies pursuing a “twin” strategy of digitizing their business while also increasing sustainability would not just help preserve our environment but also drive significant business value:

“Twin performers” (i.e., companies successfully executing a “twin” strategy) are outpacing their peers in critical metrics such as innovation, returns on investment, and profitable growth – and are therefore expected to be 2.5x more likely among Europe’s “strongest companies” by the authors of the report.

And the digital twins I referenced earlier? Would not just save CO2 but also drive up to $1.3 trillion, according to some Accenture models.

So how, exactly, could you pursue such a “twin strategy” and win?

Here’s the “simple step” I mentioned:

You’ll have guessed it already at this point: If it’s true that a lot of our progress towards “net-zero” hinges on our setting better targets, and if it’s also true that setting said targets within the digital initiatives we’re already driving, then doing so should take us a lot further.

Hence my recommendation and the conclusion to this piece:

Next time you’re asked to create a digital strategy or prepare an initiative’s business plan:

Take a step back and think about linking it to sustainability, emissions reduction, or “net zero outcomes,” … and then build these in.

Conclusion: Deliver “twin” results to boost ROI!

There’ll be a lot more to do, of course (and you can read the reports I linked here to get a few pointers for how to proceed) – but you’ll already be better off than 95 percent of the European companies which didn’t pursue digitization and sustainability in tandem in 2025 – because you’ll be on course to delivering a “twin” strategy, and twin results. This alone should improve the impact of your efforts and the ROI you’ll drive from them … but it just might put your company on track to become one of the 7 percent of companies not destined to miss their net-zero targets.

Since we can all guess these will be the businesses that will win tomorrow’s economy… how’s this for an expected result in your industry digitization case?