Kyndryl released the second Global Sustainability Barometer study, commissioned by Microsoft. The study, conducted by Ecosystm, shows that while 84% of organisations place a high strategic importance on achieving sustainability goals, only 21% use technology to reduce their environmental footprint and shape their overall sustainability strategy.
Since last year, 38% of organisations have increased their sustainability goals and programme execution – demonstrating progress as the world works toward a green future.
“As the world faces increasing climate-related challenges, businesses are under pressure to act decisively and place sustainability at the forefront – and this year’s Global Sustainability Barometer study highlights that organisations must move from intent to collective action to drive change,” said Faith Taylor, Chief Corporate Citizenship and Sustainability Officer at Kyndryl. “By integrating sustainability into a company’s business strategy, processes and systems, organisations can maximise the value of their people and technology to achieve internal goals and deliver positive impact.”
“Sustainability is at the heart of the Middle East’s vision for the future, with nations like the UAE and Saudi Arabia driving transformative initiatives to create a balance between economic growth and environmental responsibility. By embracing innovative technologies and sustainable practices, they are not only addressing global challenges like climate change but also setting new benchmarks for resilience and inclusivity,” said Pieter Bil, Senior Vice President and Managing Director at Kyndryl Middle East and Africa. “At Kyndryl, we are proud to support these efforts, empowering organisations across the region to design and implement solutions that advance sustainability and unlock long-term value.”
The study shows that leaders are increasingly recognising the benefits of sustainability initiatives for their organisations, with specific areas where improvements can be made. By embedding technology into sustainability strategies, organisations can turn abstract goals into actionable, data-driven plans.
The study highlights the following areas of opportunity:
- Only 21% of organisations globally recognise technology’s dual role in reducing their company’s carbon footprints and advancing broader sustainability goals.
- While 54% of businesses say sustainability goals and initiatives are incorporated into existing reporting processes, only 19% fully use data for strategic planning and decision-making.
- 55% believe artificial intelligence (AI) will significantly impact their sustainability goals, but 62% of organisations limit initiatives to analysing historical data for monitoring and reporting.
Matthew Sekol, a Sustainability Global Black Belt at Microsoft, added, “Companies can gain the insights needed to deliver on their commitments and drive resilience by integrating sustainability data with operational and financial data, and using traditional data analytics and robust AI tooling to reshape operational efficiencies and foster sustainable innovations.”
Taking action to advance sustainability strategies
The study’s detailed analysis and deep insights can enable organisations to enhance their sustainability efforts. To fully realise an organisation’s potential, consider the following guiding principles:
- Technology must be core to strategic planning. 38% leverage IT to reduce their own organisation’s environmental impact while 17% say data and technology is helping achieve sustainability goals. In the next year, companies should consider integrating technology into sustainability strategies to turn abstract goals into actionable plans.
- Recast the role of AI. 62% of organisations use AI to monitor energy use and emissions, but only 37% use predictive AI to forecast energy needs based on current trends and patterns. Integrating AI-powered scenario planning and climate risk mitigation allows organisations to adopt a holistic approach to environmental responsibility, enhancing readiness for future challenges.
- Harness data for proactive business transformation. Disparate data across various enterprise planning systems is seen as a clear challenge as only 15% use data to guide their business’ transformation journeys. By effectively integrating the disparate data, organisations gain a more comprehensive and accurate understanding of their environmental impact, which leads to informed sustainability decisions.
- Foster a culture of collective responsibility. CEOs continue to shape sustainability goals and 49% of organisations consider Chief Sustainability Officers and sustainability teams key stakeholders (vs. 27% in 2023). The next step is for organisations to fully engage cross-functional teams, particularly finance and technology, to move sustainability into a core business priority and ensure implementation.
While the benefit of AI for sustainability is gaining traction, AI’s environmental impact is a growing concern. Only 35% of organisations are considering the energy implications of their AI solutions. Kyndryl and Microsoft provide actionable strategies for organisations to measure infrastructure baseline emissions and optimise AI architectures, including AI and machine learning models to minimise energy use and reduce waste. The two companies work closely with organisations to ensure that technological advancements contribute positively to sustainability goals without compromising innovation.
“As organisations increasingly recognise sustainability as a strategic imperative, we’re witnessing a surge of innovation and collaboration. AI is at the forefront of this movement, empowering businesses to optimise resource consumption, reduce waste and drive positive environmental impact,” said Ullrich Loeffler, CEO & Co-Founder of Ecosystm. “By uniting our efforts and leveraging technology, we can create a more sustainable and equitable future for generations to come.”
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