Some 88% of business leaders are planning to increase their IT investment in sustainability projects over the next 12 months, a new report by IBM has found.
According to IBM‘s State of Sustainability Readiness Report 2024 report, more than half of respondents across a variety of industries see investment in technology as an opportunity to bolster their sustainable business efforts, rather than just mitigate costs.
Ambition and action
At the same time, however, the report reveals that ambition is not matching action, particularly with regard to AI technology.
While nine in ten executives surveyed believed that AI will ‘positively influence’ their sustainability goals, some 56% said that they are not yet actively using AI for sustainability purposes, often due to budget constraints and a lack of sustainable funding structures.
The report also noted that 48% of IT investments in sustainability are a ‘one off’, rather than funded through a regular operational budget.
Where AI is being utilised, businesses are investing in energy-efficient processors, optimising data processing locations, and utilising open-source collaborations. Talent shortages represent a hurdle, however, with organisations finding it challenging to maintain the specialised AI workforce required for their sustainability goals.
‘Stay thoughtful’
“Businesses see huge potential for AI to boost both their sustainability efforts and their bottom line, and it is exciting to see those incentives aligned,” commented Christina Shim, chief sustainability officer at IBM. “Leaders should stay thoughtful about minimising environmental impacts while adopting AI, but the data shows a lot of opportunity for progress on both sustainability and costs.”
IBM’s report also identifies shortfalls when it comes to in accurately measuring sustainability outcomes, with resource efficiency and renewable energy consumption being the most used KPIs. Yet, 50% of leaders report that their sustainability data lacks maturity, complicating accurate reporting and compliance.
Perception gap
Moreover, the report reveals a perception gap within businesses – some 67% of C-suite leaders feel their climate resiliency efforts are proactive, compared to only 56% of lower-level managers.
“Whether organisations are looking to begin their sustainability journey or already have experience in the matter, collecting and accurately classifying their data is critical to develop more sustainable practices,” said Kendra DeKeyrel, VP, ESG & asset management products leader at IBM. “This research shows that business leaders understand the importance of a data-driven approach to sustainability – and are willing to invest in technology to accelerate this process.” Read more here.
