Business Leaders Prioritize IT for Sustainability with a Focus on AI
In a groundbreaking study conducted by IBM, a staggering 88% of business leaders expressed their intention to ramp up investments in information technology (IT) aimed at sustainability initiatives over the coming year. This significant finding is part of IBM’s inaugural State of Sustainability Readiness Report 2024, which highlights the growing recognition among executives that technology investments geared toward sustainability are not merely expenses but opportunities for growth.
The report underscores a widespread belief in the transformative power of artificial intelligence (AI) for sustainability. An impressive 90% of surveyed executives concurred that AI will play a pivotal role in achieving their sustainability objectives. Despite this optimism, there remains a considerable gap between belief and action, with over half of the organizations not yet deploying AI in their sustainability efforts.
The Perception Gap: Executives vs. Staff
One of the more intriguing aspects of the report is the perceptual divide between top executives and their staff regarding sustainability expectations. Executives often have a more favorable view of their company’s climate resiliency efforts compared to their lower-level counterparts. This disconnect extends to various areas, including financial, physical infrastructure, and supply chain risks.
IBM’s report highlights the necessity for organizations to bridge this gap by fostering better communication and alignment across all levels of the organization. By doing so, they can ensure a unified approach to sustainability challenges and build a more resilient company culture.
The Untapped Potential of AI in Sustainability
The report reveals a largely untapped potential for AI in advancing sustainability goals. While nearly all executives recognize the positive impact AI could have, 56% of organizations are yet to actively integrate AI into their sustainability strategies. This gap could be attributed to financial constraints, as many organizations face challenges in funding sustainability initiatives from regular operational budgets. Instead, nearly half of these investments are "one-off" expenditures.
To harness AI responsibly, organizations must consider the energy consumption associated with AI technologies. Efforts to reduce this footprint include optimizing data processing locations, investing in energy-efficient processors, and leveraging open-source collaborations. These strategies not only promote sustainability but also improve operational efficiency and cost-effectiveness.
However, finding skilled AI talent remains a significant challenge. The current shortage of experienced workers in the field is one of the top three hurdles businesses face in their sustainability journey. Organizations will need to prioritize talent acquisition and development to fully leverage AI’s potential.
Measuring Sustainability: A Complex Challenge
As businesses increasingly incorporate sustainable practices and technologies, the question of how to effectively measure sustainability becomes paramount. Surveyed leaders identified renewable energy consumption, total energy consumption, and recycling as their top key performance indicators (KPIs) for sustainability outcomes. For instance, IBM measures these areas by monitoring megawatt-hours of energy consumption, the percentage of electricity from renewable sources, and the weight percentage of waste going to landfill and incineration.
However, accurately measuring these KPIs poses a significant challenge. Half of the business leaders surveyed admitted that their data for measuring sustainability KPIs is not yet mature, complicating the reporting process. Organizations must prioritize the collection and classification of accurate data to develop more sustainable practices effectively.
Companies like Ikano Group have shown the positive impact of investing in solutions to automate environmental, social, and governance (ESG) data capture and analysis. By doing so, they have been able to streamline their reporting processes, saving thousands of hours and improving accuracy.
Actionable Recommendations for Businesses
IBM’s report offers several recommendations for organizations eager to tackle sustainability challenges:
- Invest in the Right AI Tools: Organizations should focus on AI tools that align with their sustainability goals. For example, generative AI can provide insights into opportunities for reducing carbon emissions and developing more sustainable business practices. By harnessing AI, businesses can translate their sustainability ambitions into actionable strategies.
- Bridge the Perception Gap with Data: To address the perceptual gap between executives and lower-level decision-makers, organizations should leverage data analysis and reporting tools to gain a comprehensive understanding of internal differences. This approach can help uncover blind spots and ensure alignment across the organization.
Conclusion
The State of Sustainability Readiness Report 2024 provides valuable insights into the current state of sustainability efforts in the business world. While there is a clear recognition of the potential benefits of IT and AI in sustainability, many organizations have yet to fully capitalize on these opportunities. By addressing financial constraints, investing in talent, and leveraging data-driven insights, businesses can navigate the complexities of sustainability and position themselves for long-term success.
For a deeper understanding of the findings and recommendations in the report, you can access the full report on IBM’s website.
About IBM
IBM is a leading provider of global hybrid cloud, AI, and consulting expertise. The company assists clients in over 175 countries in leveraging data insights to streamline business processes, reduce costs, and gain competitive advantages. IBM’s hybrid cloud platform and Red Hat OpenShift are relied upon by thousands of government and corporate entities in critical infrastructure areas, including financial services, telecommunications, and healthcare. With a commitment to trust, transparency, responsibility, inclusivity, and service, IBM continues to drive innovation across various industries.
For more information about IBM and its initiatives, visit their official website.
For more Information, Refer to this article.
