Achieving Sustainability Goals with Prescriptive Analytics

Sustainability Analytics

Date : 03/06/2023

Sustainability Analytics

Date : 03/06/2023

Achieving Sustainability Goals with Prescriptive Analytics

Make sustainability goals your priority with prescriptive analytics to reduce climate risk and improve performance.

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In 2025, the world faces mounting concerns about climate change, social inequality, and environmental degradation. Businesses recognize the urgent need to prioritize sustainable practices. This is where sustainability goals come in. These goals are crucial for organizations to minimize their negative impacts on the planet while aligning with broader global goals, such as the United Nations Sustainable Development Goals (SDGs). By setting specific targets around reducing greenhouse gas emissions, conserving natural resources, and promoting social responsibility, businesses can mitigate their negative impacts, drive innovation, enhance their reputation, and attract stakeholders who prioritize sustainability. 

Global enterprises are increasingly turning to data-driven tools to accelerate sustainability goals. The global prescriptive analytics market size was estimated at USD 9.53 billion in 2023 and is projected to grow at a CAGR of 31.8% from 2024 to 2030, Source. The market is experiencing significant growth driven by the increasing demand for advanced data analytics solutions to seek smarter ways to optimize energy use, reduce waste, and track carbon impact across various industries. From reducing carbon emissions to optimizing resource use, analytics is helping companies make a measurable impact where it matters most.

In this blog, we'll explore the importance of sustainability goals and how they can be achieved using prescriptive analytics. Let's dive deeper into this critical topic together.

How can prioritizing sustainability improve your business performance

You might think doing good for the planet is just “nice to have.” But honestly, it can make a real difference for your business too. Companies that take sustainability seriously notice changes everywhere, right from how they operate to how customers see them. Here’s how prioritizing sustainability can improve your business’s performance:

Greater Financial Performance: Organizations with steady sustainability practices and ESG strategy can outperform their competitors financially.  It improves business resilience and relevance over time.

Attraction and Retention of Customers: People nowadays are willing to pay a premium price for products that align with their ethical values, as they care a lot more than we’d expect. In fact, as per Deloitte’s 2025 survey, 70% of Gen Z and Millennials consider environmental sustainability important when they are choosing employers and brands. hat actually affects what people buy and who they trust. Source

Greater Brand Reputation: Brand reputation gets a boost, too. When people notice that a company is genuinely trying, it earns trust. Loyal customers stick around. Over time, this leads to long-term value creation. And it’s all part of building sustainable growth strategies not just for the environment, but for the business itself.

Regulatory Compliance: Rules and regulations? Easier to handle if you’ve already got sustainability goals in place. It helps avoid surprises from climate risks, new policies, or supply chain hiccups. You could call it prevention at its finest.

The thing is, when sustainability becomes part of day-to-day work, the benefits pile up. You help the planet, sure, but you also make your brand stronger, keep customers coming back, and create value that lasts.

Sustainability goal-setting: The seven essential factors to consider for maximum impact

As organizations increasingly prioritize sustainability, there are seven essential factors to consider:

prescriptive analytics

Now, once you have taken into account these factors, you need to find the optimum way to do it. 

Since sustainability goals are often complex and multi-dimensional, involving energy consumption, waste reduction, and greenhouse gas emissions, you must navigate this complexity and identify the most effective strategies for achieving your sustainability targets. 

With prescriptive analytics, businesses can identify the best strategies for achieving their sustainability goals and track their progress. This approach helps achieve sustainability targets faster and more efficiently while minimizing costs and risks.

What is prescriptive analytics?

This analytics helps companies make decisions by providing recommendations based on data, statistical algorithms, and machine learning techniques. It uses historical data and predictive analytics to determine the best action in real-time situations. Unlike descriptive and predictive analytics, which focus on understanding and predicting what has happened or might happen, prescriptive analytics offers recommendations on what should be done to optimize outcomes. These recommendations can be used to make decisions that maximize business outcomes, reduce costs, and improve performance. In addition, it has numerous applications in various industries, including healthcare, finance, logistics, and supply chain management.

A comparison of Prescriptive vs Predictive vs Descriptive Analytics

Type

What it Does

Example Use Cases

Descriptive Analytics for Sustainability

Tells you what happened. Looks at past data to summarize trends or patterns.

A company checks last quarter’s energy usage to see which plant used the most electricity.

Predictive Analytics for Sustainability

Shows what might happen next. Uses patterns from historical data to forecast future events.

Using past energy usage data to guess the demand for next month.

Prescriptive Analytics for Sustainability

Suggests what to do. Goes beyond prediction and recommends actions to reach goals.

AI tells a factory which machines to run at what time to reduce energy use and cut emissions.

Using prescriptive analytics to establish meaningful sustainability goals

Using it can be a powerful tool to achieve meaningful change. By using advanced algorithms to analyze data, it provides valuable insights that help identify the most effective ways to reduce your carbon footprint, minimize waste, and optimize your supply chain. You can make informed decisions that drive sustainability efforts and maximize business outcomes. In addition to identifying areas for improvement, it also helps anticipate potential challenges and adjust strategies to meet changing environmental conditions. In addition, you can set and achieve sustainability goals that align with your business vision and values while minimizing costs and maximizing impact.

How prescriptive analytics for work

Okay, so it might sound complicated, but it’s really just a way for companies to make smarter decisions using data. Think of it like a GPS for business, telling you not just where you are, but the best way to get to your destination.

It starts with input data. This could be anything from energy usage, production numbers, or even supply chain info. Basically, anything that shows you how your things are running. What works and where it might run into problems.

Next comes predictive modeling. Here, the system tries to guess what might happen next (or in the future) by understanding the things happening now. These predictions are not random; AI uses patterns, algorithms, and trends to make an educated guess.

After that, the analytics tool moves into optimization. The tool looks at all the possible moves and tries to figure out which ones make the most sense. Save energy here, cut waste there, tweak a process somewhere else. Think of it as weighing different paths to pick the one that reduces waste, saves energy, or improves efficiency. So you’ll have to choose the one you think that might actually help the company.

Then come the recommendations. This is the part you actually see. The system might say: “Hey, if you adjust this process here, you could cut emissions by X%” or “Switching suppliers for this material could reduce costs and carbon footprint.”

Finally, it keeps learning. Every time you try something, the system adjusts. It’s a loop. Try, learn, tweak, repeat. Over time, it actually gets smarter. It’s like a conversation between your data and your decisions, always adjusting to make things better!

Steps to establishing sustainability goals with prescriptive analytics

  • Define your sustainability goals: Identify specific and relevant goals that align with your organization's values and mission.
  • Collect and analyze data: Gather data on your operations, suppliers, and stakeholders, and analyze it with prescriptive analytics to identify areas for improvement.
  • Determine the best approach: Based on the insights generated, determine the best course of action to achieve your sustainability goals.
  • Develop an action plan: Create a comprehensive plan outlining the steps, timelines, responsibilities, and performance metrics to achieve your sustainability goals.
  • Implement the action plan: Allocate the necessary resources, monitor progress, and adjust strategies to effectively implement your action plan.
  • Monitor and report on progress: Using prescriptive analytics and sustainability goes hand in hand. Continuously monitor your progress towards your sustainability goals using prescriptive analytics, and adjust your action plan as needed.
  • Communicate progress: Build trust and demonstrate transparency with stakeholders by communicating your progress towards achieving sustainability goals.

By following these steps you can establish sustainability goals that drive meaningful and measurable change while maximizing business outcomes.

Benefits and Challenges of Prescriptive Analytics

Let’s check out some of the advantages of implementing it in your organization:

  • One of the biggest benefits of prescriptive analytics is the ability to make better decisions. Instead of relying on external factors or opinions, organizations will clearly get an output of what will work, what might not, and what has to be changed. You get a smart advisor on the side, who gets you the facts right.
  • Another advantage is the efficient usage of resources. It can highlight where the resources are optimally used, where they are being overused, and where they are wasted. The resources can include anything from energy, materials, logistics, or even time. This helps you take action promptly to lower the environmental footprint. 
  • It also helps in long-term planning. By looking at the outcomes and risks, businesses can get ready to face it even before the issue arises. For example, supply chain disruptions, climatic changes, or unexpected surges are easier to handle when you’ve got prescriptive analytics guiding you. 

Here are some of the challenges:

  • There might be some compromises in the data quality. That’s because if the input is messy, incomplete, or outdated, the recommendations won't be useful. So, a business should have a proper way to source all the data and clean it up before feeding it to the AI. 
  • Setting up prescriptive analytics is a bit complex process. It takes time, skilled people, and specialized software. It is not like plug and play. So, setting it up with the right expertise helps a lot here. 
  • People sometimes are skeptical about the decisions made by a machine. They may want to rely on the experience rather than what a model says. Overcoming this takes patience, repeated usage, and a culture shift, which happens over a gradual period of time.

Prescriptive Analytics Use Cases in Real World

Several companies have successfully used it to establish and achieve meaningful sustainability goals. Here are a few real-world examples in action:

  • Walmart used advanced data analytics to optimize its supply chain, resulting in a significant reduction of over 20 million metric tons of greenhouse gas emissions, making substantial progress towards its goal of a 1 billion metric ton reduction ahead of schedule. (Source), (Source)
  • Unilever leveraged the technology to reduce waste produced by its factories, resulting in cost savings of over $350 million. (Source)
  • IBM optimized its data centers with prescriptive analytics, cutting energy consumption by 13% and saving $40 million in energy costs. (Source)

By leveraging it to establish sustainability goals, these companies were able to reduce their environmental impact, enhance their reputation, and improve their financial performance while contributing to a more sustainable future.

Other Industry Applications of Prescriptive Analytics

Do you think it is only for sustainability or supply chains? No, it pops up in all kinds of industries. Here are some:

In retail, stores can use it to figure out which products to stock, how to price them, when to run some offers, which product goes out of stock quickly, which product the purchase is very less. So, the systems looks at the past sales, customer behaviour and trends. It then gives recommendations to improve sales with optimal resource usage. 

In healthcare, Hospitals and clinics are using prescriptive analytics to plan patient care optimise staffing and even anticipate equipment needs, medicine stocks. For example like predicting which departments will be busiest next week and it will tell you how to move the staff to that department accordingly.

Manufacturing is another area that benefits big time. It helps companies decide when to maintain machinery, how to reduce energy use, and how to cut waste in production lines. The goal is simple: make things faster, cheaper, and greener without sacrificing quality.

In logistics and transportation, companies use it to plan delivery routes, optimize fleet usage, and reduce fuel consumption. Some big delivery companies even reroute trucks on the fly based on traffic, weather, or demand changes. That saves money and cuts carbon emissions..

The cool thing is, the tool itself doesn’t care about the industry. It just looks at the data and says, “Here’s what you should try.” It can be applied wherever decisions need to be smarter, faster, and more efficient!

Closing words

Prescriptive analytics can be a powerful tool for organizations seeking to establish and achieve meaningful sustainability goals. Leveraging data and advanced algorithms can help identify the most effective ways to minimize environmental impacts, improve social responsibility, and enhance economic performance. This can lead to various benefits, including cost savings, improved efficiency, enhanced reputation, and greater stakeholder engagement. In addition, organizations can make data-driven decisions, develop effective action plans, monitor progress, and communicate results to stakeholders by following a structured process to establish sustainability goals with prescriptive analytics.

Prescriptive analytics companies help businesses figure out smarter ways to run operations and make decisions based on real data. Want to make better business decisions without guessing? Let's connect!

FAQ

1. What is prescriptive analytics in sustainability?

It is a technical way of saying “using data to figure out what to do next.” Companies collect numbers about their operations, resources, then the system helps them decide what might work best and what might not and how to optimize it. You don’t have to follow it blindly, but it gives guidance so you’re not just guessing.

2. What are the benefits of using prescriptive analytics for ESG goals?

It can help businesses make smarter choices, save resources, avoid mistakes, and even make customers happier. It can also prevent problems like running into supply chain problems or sudden new rules. It’s kind of like a safety net that also nudges you toward better decisions.

3. Which industries use prescriptive analytics for sustainability?

Almost everywhere. Retail uses it to plan stock and deals. Hospitals use it to schedule staff and equipment. Factories figure out how to reduce waste. Even delivery companies use it to make routes more efficient. Basically, if a business depends on decisions, there’s probably some prescriptive analytics in the background.

4. How will prescriptive analytics evolve in 2025 and beyond?

It’s going to get smarter and faster, for sure. More real-time data will feed into the system, which means better predictions and recommendations. Companies will rely on it not just to save money or time, but to plan for surprises, deal with changes, and just… run smoother. And you’ll probably see it popping up in places you wouldn’t expect today.

Editorial Team

AUTHOR - FOLLOW
Editorial Team
Tredence

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