How To Ensure That Sustainable Investing Is Successful And Secure

Derek Klobucher

Considerable investment in sustainable companies is no longer an activist fantasy. It’s real and practical, led in part by ever more influential investors and experts.

For example, in late April more than 130 Swiss scientists and public figures published an open letter to the Swiss National Bank calling on the nation’s central bank to publish the CO2 emissions of its vast SFr650 billion (€607 billion) global portfolio – and develop a plan to purge oil, coal, and similar companies.

“The SNB has become one of the world’s largest investors since the global financial crisis,” the Financial Times wrote. “If the SNB were to sell out of fossil fuels, it would be an extraordinary victory for climate change campaigners who have spent the past five years trying to persuade investors to ditch coal, oil, and gas holdings.”

There are still problems for sustainability on the horizon, including cybersecurity. But the campaigners FT mentions have made a lot of progress in the last half decade, convincing investors to prioritize sustainable, responsible, and impact investing (SRI), which seeks profitable long-term investments based on environmental, social, and other considerations.

Netting more green by going green

About 26% of assets under management around the world have a sustainable, ethical, or similar label, according to a Global Sustainable Investment Alliance report last month. That’s about $23 trillion (€21.5 trillion) globally.

“Climate change concerns have driven some investors to add coal and oil producers and high-carbon utilities to the list of ‘sin’ stocks,” Bloomberg wrote. “In addition to entire sectors, some exclude for violations in areas including human rights, severe environmental damage, and corruption.”

This trend is most common in Europe and Australia, where about half of managed assets include environmental and similar assessments, according to the GSI Alliance report. And SRI awareness is on the rise in the U.S., Canada, and especially Japan.

Cybersecurity potholes on the road to sustainability

But a sustainably powered, low-carbon economy wouldn’t be a panacea; it would be even more susceptible to cyberattack than big polluters, according to International Business Times. That is, unless solar, wind, and other renewable power infrastructures evolve into something significantly different than our contemporary, centralized, fossil-fueled power grids.

“Smart grids will not just integrate renewable energy sources, energy storage devices, and electric vehicles – but also household electrical appliances and other devices,” IBT wrote. “In a smart grid system, hackers would potentially be able to target not just power supplies, but the myriad devices interconnected with them through the Internet of Things.”

And IoT vulnerabilities are a big deal. Hackers’ latest efforts include wiping data from connected devices, according to Computerworld. At least one type of malware penetrates an IoT device’s login credentials, overwrites its data, cripples its Internet connection, and renders it unusable.

Overhauling the energy infrastructure

Of course, cybersecurity isn’t just a green problem. Some 68% of oil and gas companies suffered cyber breaches that disrupted operations – in part via hacked operational technology, which includes physical devices, according to a Ponemon Institute study released in February.

That’s why a single cyberattack on a modern centralized grid – on which many homes, businesses, and layers of government could depend – would do a lot of damage. But, as IBT noted, decentralized systems include distributed layers, each with redundancies that enhance cybersecurity by blunting the efficiency and effectiveness of localized attacks.

Investors, experts, and activists are demanding more sustainable practices from large organizations and public companies; that’s good. Those organizations and companies are going green; that’s also good. But we must ensure that cybersecurity and energy infrastructure also keep pace.

Learn more about The Future of Cybersecurity: Trust as Competitive Advantage.

This story originally appeared on SAP’s Business Trends. Follow Derek on Twitter: @DKlobucher

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About Derek Klobucher

Derek Klobucher is a Brand Journalist, Content Marketer and Master Digital Storyteller at SAP. His responsibilities include conceiving, developing and conducting global, company-wide employee brand journalism training; managing content, promotion and strategy for social networks and online media; and mentoring SAP employees, contractors and interns to optimize blogging and social media efforts.

How Governments And Industry Respond To Digital Risk

Andre Smith

The rush to digitalization around the world has come with a great amount of risk. The risk has been shared by private industry and governments alike, as news of data breaches and hacker attacks have made global headlines. Sometimes, simple misconfigurations have led to embarrassing and potentially privacy-compromising incidents. In other instances, specifically directed cyber attacks have exposed the personal data of millions of people.

Anytime data security issues such as these occur, the potential consequences are massive. This is true not only for the business or government at fault, but also for everyone whose data has been stolen. This year has produced some of the largest data security incidents to date, and all signs point to that trend continuing. This has left governments examining the steps necessary to create a safer and more secure digital environment going forward. It is also forcing businesses to review their digital risk-management strategies.

Regulatory responses

The high-profile nature of many of the latest data breaches has led to renewed regulatory scrutiny by governments around the world. In the U.S., there have been Congressional hearings in the wake of the Equifax hack, which exposed the financial information of 145.5 million American consumers. So far, it’s unclear if the hearings will lead to a new round of data-security regulations, but there’s already proposed legislation that would set standards and penalties for businesses regarding customer notification of data security breaches.

The European Union, by contrast, has been far more forward-thinking and decisive. The General Data Protection Regulation (GDPR), set to be implemented by May 2018, has created a framework of legal responsibilities for data security and enumerated rights for individuals regarding personal data collection and storage. The new regulation joins others that already set standards for European (and multinational) financial institutions regarding transparency and digital compliance reporting.

Businesses begin to adapt

In the business world, there is a universal need to update compliance and governance policies and to invest in digital security infrastructure. Most companies have been producing large volumes of digital data for many years, but few have the staff or expertise necessary to manage and secure all of it. Fortunately, the latest Big Data platforms allow companies to aggregate, process, and secure their data in a seamless architecture. Development of these systems is crucial to the future of cybersecurity.

In addition to voluntary policy changes, the potential legal ramifications have spurred changes. In reaction to the pending regulations in the E.U. and the potential for new requirements in the U.S., many global businesses have started to update and bolster their digital risk management efforts. Since the E.U. regulations are (so far) the most stringent and wide-ranging, multinationals and regional firms are using them as the baseline on which to base their policies and practices. It is also intended to head off further legislation that could be costly to affected industries.

The future of digital risk

The very nature of the technological advancement that has created the present security challenges guarantees the risks will continue. To stay ahead of an ever-changing digital landscape, additional actions will surely be needed from actors on all sides. This likely means the promulgation of further regulations and reporting requirements from governments, as well as more comprehensive digital risk management efforts throughout the private sector. There’s still a fair amount of catching up to do, but it seems that the appropriate amount of attention is now being given this pressing global problem.

To learn more about cybersecurity and digital risk, check out Five Ignored Practices That Can Disarm Your Cybersecurity Time Bomb.

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About Andre Smith

An Internet, Marketing and E-Commerce specialist with several years of experience in the industry. He has watched as the world of online business has grown and adapted to new technologies, and he has made it his mission to help keep businesses informed and up to date.

Digitalist Flash Briefing: Who Cares About Data Breaches?

Bonnie D. Graham

Today’s briefing looks at how major consumer data breaches – such as fraudulent credit card charges, compromised data, hijacked e-mail, or social media accounts, and loans or lines of credit opened through identity theft – impact consumers and the breached companies.

  • Amazon Echo or Dot: Enable the “Digitalist” flash briefing skill, and ask Alexa to “play my flash briefings” on every business day.
  • Alexa on a mobile device:
    • Download the Amazon Alexa app: Select Skills, and search “Digitalist”. Then, select Digitalist, and click on the Enable button.
    • Download the Amazon app: Click on the microphone icon and say “Play my flash briefing.”

Find and listen to previous Flash Briefings on Digitalistmag.com.

Read more on today’s topic

 

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About Bonnie D. Graham

Bonnie D. Graham is the creator, producer and host/moderator of 29 Game-Changers Radio series presented by SAP, bringing technology and business strategy thought leadership panel discussions to a global audience via the Business Channel on World Talk Radio. A broadcast journalist with nearly 20 years in media production and hosting, Bonnie has held marketing communications management roles in the business software, financial services, and real estate industries. She calls SAP Radio her “dream job”. Listen to Coffee Break with Game-Changers.

Human Skills for the Digital Future

Dan Wellers and Kai Goerlich

Technology Evolves.
So Must We.


Technology replacing human effort is as old as the first stone axe, and so is the disruption it creates.
Thanks to deep learning and other advances in AI, machine learning is catching up to the human mind faster than expected.
How do we maintain our value in a world in which AI can perform many high-value tasks?


Uniquely Human Abilities

AI is excellent at automating routine knowledge work and generating new insights from existing data — but humans know what they don’t know.

We’re driven to explore, try new and risky things, and make a difference.
 
 
 
We deduce the existence of information we don’t yet know about.
 
 
 
We imagine radical new business models, products, and opportunities.
 
 
 
We have creativity, imagination, humor, ethics, persistence, and critical thinking.


There’s Nothing Soft About “Soft Skills”

To stay ahead of AI in an increasingly automated world, we need to start cultivating our most human abilities on a societal level. There’s nothing soft about these skills, and we can’t afford to leave them to chance.

We must revamp how and what we teach to nurture the critical skills of passion, curiosity, imagination, creativity, critical thinking, and persistence. In the era of AI, no one will be able to thrive without these abilities, and most people will need help acquiring and improving them.

Anything artificial intelligence does has to fit into a human-centered value system that takes our unique abilities into account. While we help AI get more powerful, we need to get better at being human.


Download the executive brief Human Skills for the Digital Future.


Read the full article The Human Factor in an AI Future.


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About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation.

Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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How Manufacturers Can Kick-Start The Internet Of Things In 2018

Tanja Rueckert

Part 1 of the “Manufacturing Value from IoT” series

IoT is one of the most dynamic and exciting markets I am involved with at SAP. The possibilities are endless, and that is perhaps where the challenges start. I’ll be sharing a series of blogs based on research into knowledge and use of IoT in manufacturing.

Most manufacturing leaders think that the IoT is the next big thing, alongside analytics, machine learning, and artificial intelligence. They see these technologies dramatically impacting their businesses and business in general over the next five years. Researchers see big things ahead as well; they forecast that IoT products and investments will total hundreds of billions – or even trillions – of dollars in coming decades.

They’re all wrong.

The IoT is THE Big Thing right now – if you know where to look.

Nearly a third (31%) of production processes and equipment and non-production processes and equipment (30%) already incorporate smart device/embedded intelligence. Similar percentages of manufacturers have a company strategy implemented or in place to apply IoT technologies to their processes (34%) or to embed IoT technologies into products (32%).

opportunities to leverage IoTSource:Catch Up with IoT Leaders,” SAP, 2017.

The best process opportunities to leverage the IoT include document management (e.g. real-time updates of process information); shipping and warehousing (e.g. tracking incoming and outgoing goods); and assembly and packaging (e.g. production monitoring). More could be done, but figuring out where and how to implement the IoT is an obstacle for many leaders. Some 44 percent of companies have trouble identifying IoT opportunities and benefits for either internal processes or IoT-enabled products.

Why so much difficulty in figuring out where to use the IoT in processes?

  • No two industries use the IoT in the same way. An energy company might leverage asset-management data to reduce costs; an e-commerce manufacturer might focus on metrics for customer fulfillment; a fabricator’s use of IoT technologies may be driven by a need to meet exacting product variances.
  • Even in the same industry, individual firms will apply and profit from the IoT in unique ways. In some plants and processes, management is intent on getting the most out of fully depreciated equipment. Unfortunately, older equipment usually lacks state-of-the-art controls and sensors. The IoT may be in place somewhere within those facilities, but it’s unlikely to touch legacy processes until new machinery arrive. 

Where could your company leverage the IoT today? Think strategically, operationally, and financially to prioritize opportunities:

  • Can senior leadership and plant management use real-time process data to improve daily decision-making and operations planning? Do they have the skills and tools (e.g., business analytics) to leverage IoT data?
  • Which troublesome processes in the plant or front office erode profits? With real-time data pushed out by the IoT, which could be improved?
  • Of the processes that could be improved, which include equipment that can – in the near-term – accommodate embedded intelligence, and then communicate with plant and enterprise networks?

Answer those questions, and you’ve got an instant list of how and where to profit from the IoT – today.

Stay tuned for more information on how IoT is developing and to learn what it takes to be a manufacturing IoT innovator. In the meantime, download the report “Catch Up with IoT Leaders.”

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Tanja Rueckert

About Tanja Rueckert

Tanja Rueckert is President of the Internet of Things and Digital Supply Chain Business Unit at SAP.