Sustainability is no longer a buzzword; it’s become an essential guiding principle shaping how businesses operate worldwide. Embracing sustainability is not just a matter of compliance or reputation management, it’s a strategic imperative^[1] that can fuel efficiency, cost savings and overall performance.^[2] However, making significant, long-lasting change requires more than good intentions – it requires the power of process intelligence.                                  

Why sustainability matters for business

Sustainability is often framed as beneficial for profits and the environment, and there are many underlying facts that support this claim.^[3] Sustainable practices allow businesses to mitigate the impact of environmental regulations^[4] while minimizing environmental harm.^[5]

A commitment to the environment can improve a company’s image and reputation, particularly with investors, who increasingly view sustainability as an essential consideration.^[6] Additionally, customer satisfaction, and employee morale and well-being rates,^[7] can improve when employers prioritize sustainability.

Along those lines, Janina Bauer, global head of sustainability at Celonis, sees a mindset shift happening.

“Sustainability is a certain way of doing business, and one that is crucial for companies these days,” said Bauer during an interview with CFO Dive’s studioID. “A company is focused on sustainability if it's deeply ingrained in its DNA and in all its decision-making processes and operations. It considers the planet a stakeholder and its communities an integral part of its business strategy.” Bauer’s experience also tells her that organizations can quickly build momentum once they commit to sustainability.

“Most companies right now are at the stage where you have a separate sustainability department. You have to have that department for the subject matter expertise and for running and owning initiatives,” said Bauer. “Quite quickly, you will see that if you do it well and set company targets, you will have all kinds of departments contributing.”

Unlocking new levels of sustainability and efficiency

Implementing sustainable business practices can generate additional benefits through cost savings. Efficient processes, waste reduction, sustainable materials, better recycling, etc., can lower costs, increase operational effectiveness and boost profitability, not to mention a company’s “green line,” which refers to an organization's measurable environmental impact and sustainability performance.

Additionally, organizations must recognize the growing number of complex laws and regulations with an environmental focus. For example, the European Union Corporate Sustainability Due Diligence Directive (CSDDD) will require companies in the EU with at least 1,000 employees and a turnover of 450 million euros and non-EU companies with significant operations to comply with sustainability due diligence practices.

Bolstering the green line: Advancing sustainability across the enterprise

The CSDDD is just one example of governments worldwide pushing corporations to embed sustainability in their supply chains.

New regulations can serve as both a “stick” to enforce compliance and a “carrot” to reward businesses that prioritize sustainability. Companies that proactively comply can avoid costly fines and penalties.

While Bauer acknowledges that regulations drive companies to embrace sustainability, they also create an opportunity to optimize operations and achieve sustainability goals.

“Many companies overlook the fact that there are many synergies between efficiency and sustainability,” notes Bauer. “This is especially so in the supply chain, where cost and sustainability savings can go together. For example, optimizing routes, loads, the use of trucks, trains or airplanes, and picking different modes of transport can really lead to cost savings, better customer satisfaction and emission reductions.”

Along those lines, the Celonis Process Intelligence Graph (PI Graph) uses process mining to extract event log data from ERP systems and task mining to collect data from desktop applications. That data is standardized and used to create a digital twin of an organization’s processes. This is a system-agnostic, digital representation of how its processes run across business systems. To create a twin that closely mirrors real-world business operations, the PI Graph uses object-centric process mining (OCPM) to capture the complex relationships between objects (e.g., sales orders, shipments, invoices, etc.) and events across interconnected processes.

Building on this, the PI graph encapsulates an organization’s specific operational framework, including key performance indicators, areas for enhancement and metrics that correspond to success or failure. The business context is then integrated with a digital twin – a virtual replica of the organization’s processes. This enables companies to conduct in-depth analysis, implement improvements and maintain ongoing oversight of processes.

Whether focused on reducing CO2 emissions for a delivery network, creating smarter digital supply chains, or operationalizing supplier sustainability ratings, focusing on process intelligence and process mining allows businesses to infuse sustainability into their operations. Process intelligence, sustainability and cost savings can work harmoniously.

Making processes work for people, companies and the planet    

Sustainability is a strategic imperative for both business and finance leaders that generates operational improvements and savings. To make it a reality, business context is needed to make fully informed decisions to support sustainability. ERPs were never designed to deliver this type of intelligence. Consequently, there’s a need for innovative solutions that reflect the latest thinking on process mining and intelligence.

“Sustainability does not require a lot of new data; it requires a lot of the data that your business already has,” notes Bauer. “So many of the transformation projects that we have in digital transformation can be used for sustainability transformation, or we call it twin transformation, which includes digital transformation and sustainability.”

Organizations can unlock new performance levels by embracing sustainability as a core strategy, and process intelligence empowers companies to realize this vision by providing the much-needed insights to drive sustainable outcomes. By embracing the power of process intelligence, the path to a more sustainable and profitable future for your organization is paved.