Fourth Industrial Revolution

5 uses of Earth observation data that are good for business and the planet

Satellite-based Earth observation can transform the way businesses operate by aligning profitability and sustainability goals.

Satellite-based Earth observation can transform the way businesses operate by aligning profitability and sustainability goals. Image: Getty Images/iStockphoto.

Joey Couture
Project Fellow, Valuing Earth Observation Data, World Economic Forum
Valentin Golovtchenko
Lead, Climate Technology, World Economic Forum
This article is part of: World Economic Forum Annual Meeting
  • Earth observation technology generates insights that advance sustainability and deliver economic benefits.
  • We've highlighted five areas where satellite data can unlock transformative benefits for people and the planet.
  • The World Economic Forum has launched new resources to help organizations understand and implement Earth observation technologies.

Satellite-based Earth observation technology is unlocking new opportunities for businesses to grow and thrive while addressing global environmental challenges.

Earth observation generates actionable insights that benefit industries and the environment by processing information from sensors that capture visible light, thermal radiation, radar signals, and more.

Here are five transformative ways this technology can deliver measurable economic benefits while advancing planetary health.

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1. Monitoring deforestation for sustainable supply chains

For industries dependent on natural resources like timber, cocoa, or palm oil, reliably demonstrating the sustainability of their supply chains is increasingly critical to meeting expectations from regulators and consumers alike. Satellite data enables businesses to track deforestation in a timely manner, providing visibility into land-use changes across supply sources.

  • Why it’s good for business: Tracking supply sources enables companies to comply with regulatory requirements, such as the EU Deforestation Regulation, thereby mitigating the risk of fines, legal action, and market access restrictions. Additionally, transparent monitoring helps avoid reputational risks by demonstrating a commitment to sustainability, which enhances consumer trust and brand value. Operational risks are also mitigated as companies can maintain a stable supply of raw materials, reducing supply chain disruptions.
  • Why it’s good for the planet: Reducing deforestation protects biodiversity, preserves carbon storage capacity in forests and curbs emissions associated with land clearing.

2. Optimizing renewable energy site selection

Renewable energy projects, such as solar and wind farms, require precise planning to maximize efficiency, reduce costs and minimize environmental and social impacts. Historically, site selection involved costly and time-intensive on-site assessments, often hindered by uncertainties.

Earth observation transforms this process by providing critical insights into variables like solar exposure, wind patterns, proximity to infrastructure, local ecosystems, and land use capability. This enables companies to analyze potential sites remotely and efficiently.

  • Why is it good for business: Earth observation lowers site assessment costs, accelerates project timelines, and provides up to a 33% improvement in clean energy investment planning.
  • Why is it good for the planet: Replacing carbon-intensive energy sources with strategically located renewable ones reduces harmful emissions, improves air quality and preserves ecosystems by minimizing land use and habitat fragmentation.

3. Managing water resources efficiently in agriculture

Effective water resource management is critical for the agriculture industry. Over-irrigation wastes water, drives up costs, and harms the environment.

Earth observation technologies empower farmers to make data-driven irrigation decisions. For example, NASA’s Soil Moisture Active Passive (SMAP) mission uses thermal sensors to detect temperature variations in the crop canopy, indicating water stress levels. This data, combined with on-ground soil sensors that measure parameters like soil moisture, temperature, pH, and electrical conductivity, helps farmers irrigate only where and when necessary.

  • Why is it good for business: By optimizing irrigation schedules, Earth observation ensures efficient water management, which can reduce operational costs by 25%.
  • Why is it good for the Planet: Earth observation informs sustainable practices to reduce water usage and chemical run off, protecting nearby ecosystems, improving soil health and lowering energy demand.
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4. Urban planning for climate-resilient cities

Satellite data is transforming how cities prepare for climate risks like flooding, heat waves, and poor air quality. City planners use thermal imagery, for example, to identify areas within cities that experience higher temperatures than their rural surroundings due to human activities and the concentration of buildings, roads, and other infrastructure that absorb and retain heat. By integrating these insights with geographic information systems (GIS), planners can model the impact of interventions like green roofs, tree planting, or stormwater management systems.

Additionally, radar-based flood mapping is crucial for designing infrastructure that mitigates flooding risks. It provides detailed topographic data, enabling planners to identify flood-prone areas and predict the impact of heavy rainfall and rising water levels. This information is vital for developing effective flood defences, such as levees, floodwalls, and improved drainage systems.

  • Why it’s good for business: Climate-resilient infrastructure reduces costs from damage and disruptions, attracts investments, and promotes long-term economic stability for urban centres. Addressing heat islands specifically can lower energy costs associated with cooling buildings, reduce health-related expenses due to heat-related illnesses, and enhance the city's overall attractiveness for residents and businesses. Similarly, mitigating flood risks through well-designed infrastructure can prevent costly damage to property and infrastructure, ensuring business continuity and reducing insurance premiums.
  • Why it’s good for the planet: Sustainable urban planning reimagines cities as extensions of the natural world, enhancing ecological balance. Restoring wetlands, planting native vegetation, and integrating nature-based stormwater systems improve water quality, replenish depleted soils, foster carbon sequestration, and create habitats for wildlife. Green infrastructure, like urban forests and mangrove buffers, helps mitigate the heat island effect by providing shade and cooling through evapotranspiration. This reduces urban temperatures and improves air quality by filtering pollutants and increasing oxygen levels.

5. Earth observation for enhancing disaster response and recovery

When environmental events like hurricanes, wildfires, or earthquakes strike, satellite data provides rapid, large-scale assessments of affected areas.

Optical imagery highlights structural damage, while radar and thermal data reveal flood zones or active fire fronts. These insights enable governments and humanitarian organizations to assess damage, allocate resources, prioritize areas in need, and coordinate relief efforts more effectively during natural disasters.

  • Why it’s good for business: Timely data reduces downtime for affected industries and supports faster recovery efforts, minimizing financial losses and rebuilding costs.
  • Why it’s good for the planet: Improved disaster response saves lives and mitigates environmental damage from extreme events.

The five use cases presented above illustrate how satellite-based Earth observation can transform the way businesses operate by aligning profitability and sustainability goals. To further explore these applications, the World Economic Forum recently released an Earth Observation Use Case Library and an Executive Playbook on Earth Observation. These resources provide valuable guidance for organizations seeking to effectively understand and implement Earth observation technologies.

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The views expressed in this article are those of the author alone and not the World Economic Forum.

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