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Four steps to a successful twin transition

The European Green Deal constitutes the EU’s strategy to achieve Net Zero by 2050 while decoupling economic growth from resource use. The EU acknowledges that these ambitious goals cannot be achieved without empowering businesses to embrace digitalization and automation. This data-driven approach to sustainability is known as the twin transition.
Four steps to a successful twin transition
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How are the digital revolution and the sustainability revolution similar?

Achieving sustainability goals largely depends on the ability to digitalize and automate processes. By constantly monitoring and analyzing industrial processes, companies can improve their efficiency and reduce their environmental footprint.

As the World Economic Forum puts it, “a twin transition approach recognizes that there is a huge and largely untapped opportunity for technology and data to drive sustainability goals”. The organization estimates that digitalization could reduce global greenhouse gas emissions by 20 per cent.

A study conducted by the European Joint Research Centre identified “interoperability between devices” as a key prerequisite to a successful twin transition. This is where software platforms can make a difference.

There are several important applications where a twin transition approach can benefit companies and support them in achieving their sustainability goals.

 

1. Smart grids

The energy infrastructure is one area where the twin transition can play a pivotal role. This sector faces two core challenges. The first is the need to transition to renewable energy sources like wind and solar, which are intermittent and do not deliver a steady flow of energy. The second is dealing with soaring energy demand driven by electrification. IoT-enabled smart grids have emerged as the solution to these challenges. This data-driven approach enables utility operators to optimize energy generation, transmission, storage and distribution.  

From automated substations to utility-scale wind and solar farms and battery energy storage systems, operators can gain full visibility of the grid from a single application, keeping implementation costs low and simplifying communication.

 

2. Energy efficiency

While decarbonizing the energy supply is critical to sustainability, maximizing energy efficiency on the demand side is equally important. This is where a twin transition approach can make a difference. Energy data management systems (EDMS) based on IoT sensors and advanced analytics allow companies to monitor energy use across an entire production facility. This data enables operators to identify how equipment and processes impact energy consumption and take measures to reduce it.  

Interoperability between software platforms and hardware devices from multiple vendors is also essential to gather and analyze information from multiple data points. Companies can generate accurate reports on their energy consumption and greenhouse gas emissions, giving them valuable insight into important trends and areas for improvement. Streamlined reporting and auditing enable companies to meet their obligations under the Corporate Sustainability Reporting Directive (CSRD).

 

3. Predictive maintenance

Maintenance may not be the first application people associate with sustainability, but well-maintained equipment and systems are essential to reducing waste and energy consumption. This is where predictive maintenance can help. 

In a smart factory environment, advanced algorithms interpret data gathered by sensors to identify malfunctioning components, enabling engineers to intervene promptly to prevent faults. These AI-enabled systems can also predict when a machine needs servicing or an individual part needs replacing, extending equipment lifespan and reducing waste.

Predictive maintenance can also help unlock sustainability in the utilities sector. For example, automatic alert messages allow maintenance technicians to stay on top of water leaks, minimising waste.

 

4. Resource management

Managing resources efficiently is another core application for the twin transition. By collecting real-time data at every stage of the manufacturing process, the IoT enables companies to identify and eliminate redundancies and inefficiencies.

Data on product defects combined with information on production performance can reveal the source of quality issues, minimising product waste.

Automated inventory management can also help reduce waste by tracking materials and parts usage so that they can restocked correctly and at the right time.

 

Toward a successful twin transition

Embracing digitalization and automation is essential for companies embarking on the twin transition. This technology-driven approach to sustainability enables businesses to contribute to a greener future while staying competitive. The twin transition can also help companies become more resilient by strengthening energy security and the reliability of infrastructure and processes.

 

Platforms like the zenon from COPA-DATA can support these efforts by facilitating the much-needed interoperability between software and hardware. Thanks to more than 300 connection options, this vendor-agnostic software connects with virtually any hardware out-of-the-box. Companies can collect and process all the data on a single platform, identifying inefficiencies and implementing targeted improvements to achieve their sustainability goals.

 

Please also consider reading Stefan Reuther's blog article about why ISVs can help businesses hit digitalization and green goals.