Twin Transition: The Convergence Redefining the Sustainable and Digital Future
We are living through a historic turning point. Accelerated digitalization and the climate crisis are two forces of global transformation that are reshaping industries, economies, and ways of life.
On the one hand, digital transformation is advancing at an unprecedented speed, redefining how we produce, communicate, learn, and solve problems.
At the same time, the environmental crisis has ceased to be a future scenario and has become an urgent reality, in the face of rising temperatures, biodiversity loss, resource depletion, and extreme weather events.
In this context, It is no longer viable to think of digitalization and sustainability as independent paths..
The key to progress, in economic, social and environmental terms, lies in integrate both transformations in a strategic, coordinated and simultaneous manner, through the twin transition.
This article explores the concept of twin transition, its strategic importance, its impact on the technology industry, the technologies that make it possible, and the challenges it poses.
But above all, for its potential to build a future in which development and sustainability are not opposites, but allies.
What is twin transition?
Twin transition, also called twin transition, is the process by which companies, governments and societies simultaneously adopt two structural changes:
- The digital transition, which involves the integration of advanced technologies (AI, IoT, blockchain, automation, etc.) to transform processes, products and services.
- The ecological transition, aimed at reducing emissions, decarbonizing the economy, protecting biodiversity and efficiently using natural resources.
This convergence is neither accidental nor optional: it responds to a need to rethink our production and consumption models in the face of environmental collapse and a changing global competitive environment.
Furthermore, it proposes that technology should not be an end in itself, but rather a strategic enabler of sustainability.
As explained by the consulting firm Kolibri, the twin transition is the combination of the fourth industrial revolution and the green transition towards a circular and decarbonized economy.
It is the key to driving technology towards the decarbonization of the economy and adopting a circular and regenerative development model. Therefore, as an approach, it involves using new technologies to transform value chains, valorize materials, and ensure high environmental standards.
Why is the digital transition important?
The twin transition is relevant for multiple reasons, but primarily because it holistically responds to two existential challenges:
- The climate urgency, which requires a drastic reduction in emissions and rapid adaptation to the impacts of climate change.
- The digital revolution, which redefines the way markets operate, work is organized, and competitive advantages are generated.
It's not just about adapting, but about generating value in a regenerative, resilient, and ethical way.
Organizations that strategically embrace the twin transition will be better positioned to:
- Comply with increasingly demanding environmental regulations.
- Access green financing and innovation funds.
- Attracting young talent with purpose.
- Gain competitiveness in global markets focused on ESG (Environmental, Social, Governance).
Impact of the twin transition on the technology industry
The IT industry is not only a protagonist, but backbone of the twin transition.
Its innovation and scalability make it a decisive lever for redesigning entire sectors with a focus on efficiency and sustainability.
Some concrete impacts:
- Sustainable data centers: Many companies already operate with 100% renewable energy and are working towards becoming carbon neutral.
- Technology for traceability and circularity: Digital tools allow us to map value chains, identify inefficiencies, and redesign products based on circular economy principles.
- Smart platforms for energy management: From buildings to factories, connected systems enable more rational use of resources.
- Climate technology: a booming sector that seeks technological solutions to mitigate or adapt to climate change.
Furthermore, the technology industry faces its own paradox. Although it is essential for decarbonizing other industries, its environmental footprint (energy, material, and e-waste) is growing.
Hence, many technology leaders are developing internal sustainability agendas that also contribute to the twin transition process.
Can digital technologies reduce global emissions?
If applied on a large scale, Digital technologies could reduce emissions by 2014–2023 by 2050. in the three sectors with the highest emissions: energy, materials and mobility.
This is revealed by a study by Accenture carried out in collaboration with the World Economic Forum, which highlights that these industries can reduce emissions by 4 to 10% by 2030 if they incorporate high-impact digital technologies..
It is interesting to bear in mind, in the face of these perspectives, that 40% of organizational leaders perceive that digital technologies are having a positive impact on their sustainability goals.
From the World Economic Forum suggest that companies should implement three steps to expand digital adoption and reduce global emissions:
1. Ensure your data is shared, autonomous, and connected. They should also ensure transparency that fosters diverse outcomes. This includes identification, traceability of source materials, route optimization, and increased efficiency. They should also invest in new data architectures.
2. Prioritize digital inclusion and skills development, to ensure that its current and future workforce has access to the new technologies and skills needed to scale digital technologies and transform business processes in high-emission industries.
3. Encourage collaboration among your teams digital, sustainability, and operational aspects, as well as between value chains and different sectors.
It is important to note that the IT industry can also play a significant role in the reducing the global carbon footprint, by implementing sustainable practices and technologies in its operations and products.
Technologies driving the twin transition
Several emerging technologies are acting as catalysts for the twin transition. Among them:
- Artificial Intelligence (AI): It allows you to optimize industrial processes, predict climate scenarios, personalize sustainable services, and reduce waste.
- Internet of Things (IoT): Connected sensors and devices capture real-time data that helps monitor energy consumption, crop status, or machinery performance, improving environmental efficiency.
- Digital twins: They simulate complex scenarios, such as a factory, a city, or a logistics system, to evaluate the environmental impact of decisions before implementing them.
- Blockchain: guarantees the traceability of inputs, emissions, products, and value chains, which is key to transparency in ESG reports.
- 5G and edge computing: They enable ultra-fast connectivity and edge processing, necessary for smart cities, electric mobility, or decentralized energy grids.
- Cloud computing: facilitates the transition to more agile, flexible and less hardware-intensive infrastructures.
- Sustainable software: development of technological solutions that, from their conception, design, implementation and operation, seek minimize negative impacts on the environment and society, while maximizing their positive contribution to these areas.
- Green code or green code: software development practices and methodologies seeking to minimize its environmental impact, optimize the use of resources and reduce energy consumption.
How to succeed in the ecological and digital transition
Carrying out a twin transition is not just a matter of technology. It is, above all, an organizational, cultural, and strategic challenge.
Successful organizations share some key factors:
1. Clear governance and committed leadership
Change must be led from the highest level. The twin transition requires investment decisions, cultural change, and process transformation that require institutional support and a long-term vision.
2. Strategy with purpose
The goal is not to digitize for the sake of digitizing or to "greenwash" isolated actions. It's about Integrate sustainability at the heart of the business model and leverage technology as an accelerator.
3. Training and retraining of talent
Technical talent with environmental awareness is scarce and critical. The twin transition demands hybrid profiles who understand the challenges of sustainability and can operationalize technological solutions.
4. Collaborative ecosystems
No organization can do it alone. Partnerships between the public and private sectors, academia, and civil society are needed to co-create solutions, share data, and scale best practices.
5. Measurement, transparency and accountability
KPIs should include not only financial metrics but also environmental and social metrics. Digital tools allow for real-time monitoring of an organization's sustainable performance.
Main challenges
Implementing a twin transition also involves obstacles.
Some of the most determining challenges are the following:
- Digital divide: Unequal access to technology can widen inequality, especially in developing regions.
- Disconnection between agendas: Sustainability and digital innovation are often separated within organizations.
- Fragmented regulation: A lack of clear regulations can hinder responsible investment or innovation.
- Greenwashing and techwashing: Without clear metrics, it's easy to fall into cosmetic campaigns with no real impact.
- High initial costs: The investment in digitalization and sustainability is significant, although it pays for itself over time.
Overcoming these challenges requires a combination of ethical leadership, long-term vision, active public policies, and innovative financing.
How can the twin transition build a more just world?
Technology alone doesn't solve inequality or save the planet. But if designed with inclusion and equity in mind, it can be a great equalizer of opportunity and a multiplier of positive impact.
The twin transition can contribute to a more just world if:
- Democratizes access to essential services (energy, education, health, mobility) through accessible and sustainable technologies.
- Protects labor rights and encourages professional retraining in the face of automation.
- Promotes cleaner, more diversified, and resilient economic growth for countries in the Global South.
- It includes communities and territories in decision-making about the future of their development.
- Respect planetary boundaries and prioritize human well-being.
Conclusion: Designing a regenerative and intelligent future
The twin transition is neither a fad nor a luxury. It is an essential roadmap for facing the challenges of the 21st century. The good news is that technology can be part of the solution, if aligned with human and environmental values.
The challenge is not just to "digitize" or "decarbonize," but to imagine and build new forms of progress that are more balanced, collaborative, and sustainable.
The time to act is now. And the twin transition, well managed, can be the way to transform industries, and the way we inhabit and care for the planet. Learn how we help organizations Boost your business through technology.
