Microsoft & Kyndryl: Technology is Needed for Sustainability

A study from Kyndryl and Microsoft shows that only 21% of organisations are using technology to reduce their environmental footprint.

This is despite 84% of organisations placing a high strategic importance on achieving sustainability goals.

“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,” says 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.”

What is the Global Sustainability Barometer?

The Global Sustainability Barometer is a study released by Kyndryl, commissioned by Microsoft and conducted by Ecosystm.

The study examines the roles of AI, data and strategy in achieving sustainability goals.

Each year, more data becomes available and more sustainability regulations come into force, giving technology a vital role in solving challenges for the planet.

Matthew Sekol, a Sustainability Global Black Belt at Microsoft, says: “Companies can gain the insights needed to deliver on their commitments and drive resilience by integrating sustainability data with operational and financial data.

"Using traditional data analytics and robust AI tooling can reshape operational efficiencies and foster sustainable innovations.”

This second edition, released in 2024, shows the perspectives of 1,355 global sustainability leaders across 20 countries and nine industry groups.

Leaders gave their opinions between August and September 2024 with a particular focus on bridging the sustainability-technology divide. 

How organisations are using data for sustainability

Between 2023 and 2024, 38% of organisations have increased their sustainability goals and execution.

While 54% of businesses say their sustainability goals and initiatives are incorporated into existing reporting processes, just 19% use data to its full potential for strategic planning and decision-making.

More than half of leaders believe AI will significantly impact sustainability goals, but 62% of organisations are limiting initiatives to analysing historical data for reporting and monitoring.

However, AI does have a significant environmental impact. By 2028, it is expected to be using more power than the entire country of Iceland.

Only 35% of organisations are considering the energy implications of their AI solutions, which could slow their sustainability progress.

Actions to improve tech for sustainability

Microsoft and Kyndryl’s study recommends four principles to improve technology’s use in sustainability:

• Technology as the core of strategic planning: Companies should consider integrating tech in their sustainability strategies to turn goals into plans
• Give AI a new role: Integrating AI for scenario planning and climate risk mitigation allows for a holistic approach to sustainability
• Use data for business transformation: By integrating data, organisations can gain a more accurate and comprehensive understanding of their environmental impact
• Create a culture of collective responsibility: Engaging cross-functional teams can move sustainability into a core business priority, ensuring implementation.

“As organisations increasingly recognise sustainability as a strategic imperative, we're witnessing a surge of innovation and collaboration,” says Ullrich Loeffler, CEO and Co-Founder of Ecosystm. 

“AI is at the forefront of this movement, empowering businesses to optimise resource consumption, reduce waste and drive positive environmental impact.” 

“By uniting our efforts and leveraging technology, we can create a more sustainable and equitable future for generations to come.”

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