Kyndryl, in collaboration with Microsoft, has unveiled the second Global Sustainability Barometer, a study highlighting the critical role technology can play in advancing sustainability. Conducted by Ecosystm, this study shows that although 84% of companies prioritize sustainability, only 21% fully leverage technology to reduce their environmental impact. This report underscores the need for companies to transition from intent to action by embedding data and AI into sustainability strategies.

Key Insights and Areas of Opportunity

• Technology’s Dual Role in Carbon Reduction and Goal Advancement
  Only 21% of companies worldwide view technology as essential for reducing their carbon footprint and advancing broader sustainability objectives.

• Data-Driven Strategic Planning
  While 54% of businesses incorporate sustainability into reporting, only 19% fully leverage data for strategic decision-making.

• AI’s Impact on Sustainability Goals
  Though 55% of organizations see AI as crucial to sustainability, 62% use it only for historical data analysis rather than predictive modeling. Enhanced AI applications, such as scenario planning, could reshape sustainability efforts.

Guiding Principles for a Sustainable Future

Kyndryl’s study outlines key principles to guide organizations in advancing sustainability initiatives:

1. Technology Integration in Strategic Planning
   Only 38% use IT to reduce environmental impact, but with enhanced tech integration, companies can turn ambitious goals into concrete, measurable outcomes.

2. AI for Future-Proofing
   Although 62% use AI for monitoring, just 37% apply predictive AI for energy forecasting. AI-driven scenario planning can help organizations proactively tackle environmental challenges.

3. Unified Data for Transformation
   Data integration is crucial as only 15% currently use data for comprehensive business transformation. Effective data integration allows companies to make well-informed sustainability decisions.

4. Encourage Collective Responsibility
   A cross-functional approach involving CEOs, CSOs, finance, and technology teams is essential for sustainability’s prioritization as a core business goal. With 49% now prioritizing CSO roles, the trend reflects growing organizational commitment.

Balancing AI’s Benefits and Environmental Impact

With AI's rising role in sustainability, 35% of organizations recognize the energy demands of AI systems. Kyndryl and Microsoft provide actionable strategies, like optimizing AI infrastructure to minimize energy use and waste, ensuring AI applications contribute positively to sustainability.

Kyndryl’s Global Sustainability Barometer highlights the pressing need for companies to harness the power of technology and AI to advance sustainability. By strategically integrating these tools, businesses can not only achieve their environmental goals but also create a more sustainable future.