A recent survey conducted by Schneider Electric reveals that businesses are increasingly investing in digital technology, artificial intelligence (AI), and data analytics to achieve sustainability goals.
The survey highlights that 73 per cent of companies recognise digital technology as a crucial component in reaching these objectives, while a majority are boosting their spending on digital transformation efforts.
Key findings from the Sustainability Index, 2024 indicate that more than a third of businesses are either using or planning to use AI to manage their decarbonisation processes.
Despite concerns about the energy consumption associated with AI, the technology is seen as a valuable tool for reducing emissions.
Lisa Zembrodt, Principal of Sustainability Business for Schneider Electric, emphasised the dual role of AI, stating: “While development and use of AI tools can be demanding on power supply and grid systems, these tools can also offer great support for business in monitoring and controlling emissions.”
The survey also found that 53 per cent of companies are increasing their investment in digital transformation, 39 per cent in automation, and 36 per cent in renewable energy.
Furthermore, 46 per cent of companies are investing more in AI and analytics, with only 5 per cent reporting a decrease in investment compared to three years ago.
Despite these advancements, 67 per cent of companies reported that a lack of data hinders their decision-making processes, highlighting a significant barrier to improving efficiency and sustainability.
Zembrodt noted the existence of a “digital divide” between companies that have access to advanced digital data and those lagging in digital adoption.
“Most companies agreed that data limitations were impacting their decision-making,” she said, pointing out that this is a major obstacle to monitoring and enhancing sustainability efforts.
The survey also revealed that less than one in five companies have a comprehensive decarbonisation strategy, and 40 per cent are not yet acting to decarbonise.
Zembrodt stressed the urgency of climate action, especially with upcoming climate-related financial disclosure regulations.
“Companies need to realise the urgency of climate action,” she stated, urging businesses to develop a roadmap for transitioning to a low-carbon economy.
In conclusion, while businesses are making strides in digital investments to support sustainability, challenges such as data limitations and the lack of comprehensive strategies remain.
The findings underscore the need for continued investment in digital tools and the development of robust decarbonisation plans to meet future regulatory requirements and sustainability targets.
