More than three-quarters (77%) of asset-intensive companies across the Middle East believe that technology will be required for their organisation to meet its sustainability goals, making it the top requirement for these businesses overall. Other needs identified include ‘tax on carbon (34%)’, and ‘change in policy/laws (also 34%).’
These were among the key findings of a new independent study commissioned by AspenTech, which polled the opinions of decision-makers working for asset-intensive organisations across the United Arab Emirates (UAE), Qatar and Saudi Arabia.
The research indicates asset-intensive businesses across the Middle East expect government, customers and shareholders to help spur their drive to sustainability. Yet, while decision-makers working for these organisations view these financial and regulatory enticements, and stakeholder pressures as important, technology is the biggest help to businesses in meeting their sustainability objectives.
The global need for resources, together with the requirement for a significantly lower carbon footprint is driving industry leaders to develop innovative, new solutions. The research findings suggest that the latest advanced technology solutions will play a major role in strategies to reduce emissions from existing assets and in developing new approaches to meet circularity and net zero goals.
In identifying a main barrier to their organisation meeting its sustainability targets over the next five years, 50% stated: ‘need to meet increased demand for natural resources’ and 35% referenced ‘lack of money and resources to implement internal sustainability strategies’.
There is a perceived need for software solutions to prove themselves by driving operational and financial efficiencies. Moreover, the survey indicates that the latest advanced technology will also be critically important in enabling businesses to balance the rising pressure for resources with the need for sustainability – the so-called ‘dual challenge’.
63% of executives polled said their organisation was currently building a more innovative culture focused on problem-solving to meet the rising pressure for both resources and sustainability, while 59% claimed they were investing more in digitalisation. But as this investment plays out, there may need to be a change of focus from asset-intensive businesses. 65% rank renewable power among their organisation’s top investment priorities in terms of sustainability over the next five years, with 45% citing energy efficiency.
While an ongoing migration to renewables, together with a shift to more electrification is a positive future trend, asset-intensive businesses should be investing now in innovative carbon capture, utilisation and storage (CCUS) technologies and digital solutions to accelerate the emergence and ultimate success of the hydrogen economy. Doing all this will be critically important in addressing the dual challenge and driving efficiencies while also achieving sustainability goals.