GREEN INFORMATION SYSTEMS (IS) / TECHNOLOGY (IT)

MANAGEMENT INFORMATION SYSTEMS & SUSTAINABILITY

Sustainable Information Systems and Technology

Sustainability in large part is about making the invisible visible. Many of the challenges we face are due to the fact that our impact on the environment and on people in distant supply chains is invisible to decision-makers. Have you heard the saying, “Out of sight, out of mind”? If business impacts are invisible–“out of sight”–they will surely not be integrated into operation and financial models. This is where management information systems can play a crucial role in advancing sustainability: making the invisible visible.

Let’s begin with some definitions of key terms. What do we mean by “information systems”? How is that different than “information technology”?

An information system (IS) is an “integrated set of components for collecting, storing, and processing data and for providing information, knowledge, and digital products” (Brittanica). Information technology (IT) refers to the technology involved in “the development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data” (Merriam-Webster).

woman standing in a manufacturing facility

PwC Report: ESG Technologies and Digital Solutions
Top figure: the impact of the digital transformation
Bottom figure: financial value of ESG risk management
(full report)

graph showing the importance of digital economy and ESG for executives

79% of decision-makers agree that ESG is a critical aspect of investment-making

Sustainable Information Systems

As PwC has observed (see figure) we are witnessing a convergence of two megatrends: digital economy and sustainability/ESG. Both are critical to business success and competitive advantage. This positions information systems right at the hinge point between these two domains.

Sustainable Information Systems (SIS) refers to the people, processes, and technologies providing information, knowledge and digital products that support business performance and societal impact.

According to the journal Sustainability special issue on Sustainable Information Systems, the opportunity is to see how “IS’s five components [people, hardware, software, data, and processes] serve collectively to provide the biggest possible benefit to sustainable development and value to the organization in terms of economic, social, and environmental aspects.”

For MIS to leverage its invaluable position at the convergence of digital and ESG, a new set of “sustainability principles to guide information systems development” may be needed which include (Journal of Systems and Information Technology):

Use participatory and inclusive approaches to make sure the right stakeholders are involved
Design systems to maximize use of natural resources and to reduce waste so that sustainability is integrated from the beginning
Introduce sustainability principles into IS governance to ensure accountability to business and societal performance

Sustainable Information Systems in Action

Sustainability/ESG Dashboards

Companies are increasingly scrutinized for their environmental and social impact. How did the firm contribute to climate change last year? What were suppliers’ employees paid compared to living wage estimates? MIS professionals have a unique set of skills and tools from SQL to a range of data analytics methods that can help consolidate data from various databases and help to make sense of it for internal and external stakeholders.

Examples: New York City Climate Dashboard, Penn State University (Microsoft Power BI) and Harvard University (Tableau) demonstrate the value dashboards play to inform decision-making and enable data-driven reporting.

Business Intelligence Analysis

Finance and market intelligence reports these days include ever richer data on the environmental, social and governance aspects of a business or investment portfolio. The patterns and trends emerging from this data reveal a broader array of risks and opportunities than has ever existed before. MIS professionals’ data analytics abilities are invaluable to understanding this new world of business.

Example: Following Bayer’s purchase of Monsanto (Wall Street Journal), Bayer lost a lawsuit alleging Monsanto’s Roundup herbicide causes cancer. This led to a 30% drop in market value and $190 million in damage payments with more coming with 18,400 plaintiffs. Greater attention to environmental and social risks could have avoided what WSJ has called “one of the worst corporate deals in recent memory.”

Business Process Modeling

Data-driven visual representations of workflows are powerful tools for pinpointing inefficiencies and opportunities for process improvement. MIS professionals bring the power of their analytical skills to this key business function. In leading companies, process improvement includes flagging environmental and social impact risks and opportunities from material waste to health and safety.

Example: Samsung uses Internet of Things technology for process improvement in a Vietnam facility and reduces energy consumption 12.4%. Algorithm factors in weather conditions, energy load and equipment capacity.