99% of Businesses Track Sustainability, But Only 13% Use Data Strategically: Report Only 34 per cent of Indian businesses leverage IT to reduce environmental impacts. While 76 per cent of organizations monitor energy use with AI, they can go further by using AI for scenario planning and climate risk mitigation.

In an era marked by pressing climate challenges, businesses are increasingly tasked with integrating sustainability into their operations. Kyndryl, an IT infrastructure services provider, in collaboration with Microsoft, has released its second "Global Sustainability Barometer" study. Conducted by Ecosystm, the study highlights how organizations globally, and particularly in India, are leveraging technology to achieve sustainability goals.

The study reveals that while 21 per cent of organizations globally employ technology to shape their sustainability strategies, a 54 per cent of Indian businesses are using technology to achieve their environmental goals. Moreover, 31 per cent of Indian organizations have increased their sustainability targets and execution since last year.

Faith Taylor, chief corporate citizenship and sustainability officer at Kyndryl, underlined the urgency of this transformation by stating, "As the world faces increasing climate-related challenges, businesses are under pressure to act decisively and place sustainability at the forefront. This year's Global Sustainability Barometer study highlights that organizations must move from intent to collective action to drive change."

Key opportunities for growth

While Indian organizations are making strides, the study also identifies areas for improvement. While 99 per cent of Indian businesses track or measure sustainability efforts, 87 per cent do not use this data to guide their organization's transformation journey.

Although 29 per cent believe AI can significantly impact sustainability goals, only 28 per cent use AI for predictive planning, such as forecasting future energy consumption. Moreover, 51 per cent of organizations overlook the environmental impact of AI solutions.

On the other hand, only 18 per cent of businesses focus on using technology to both reduce their environmental impact and achieve broader sustainability objectives.

"Companies can gain the insights needed to deliver on their commitments and drive resilience by integrating sustainability data with operational and financial data, and using traditional data analytics and robust AI tooling to reshape operational efficiencies and foster sustainable innovations," said Matthew Sekol, sustainability global black belt at Microsoft, emphasizing the potential of integrated data systems.

Strategies to enhance sustainability efforts

By incorporating IT into sustainability strategies, organizations can translate abstract goals into actionable, measurable plans. Currently, only 34 per cent of Indian businesses leverage IT to reduce environmental impacts. While 76 per cent of organizations monitor energy use with AI, they can go further by using AI for scenario planning and climate risk mitigation. Such approaches enhance readiness for future challenges.

Only 13 per cent of Indian businesses use data strategically to guide their transformation. By consolidating data from various systems, organizations can better understand their environmental impact and make informed decisions.

With 55 per cent of organizations identifying chief sustainability officers as key stakeholders, engaging cross-functional teams, especially finance and technology, is crucial for embedding sustainability as a core business priority.

While AI offers significant opportunities for sustainability, its environmental footprint cannot be ignored. Only 46 per cent of Indian businesses currently consider the energy implications of AI solutions. Sash Mukherjee, VP industry insights at Ecosystm, emphasized the growing expectations from consumers. "The study's findings confirmed our understanding of the Indian market: consumers are increasingly demanding sustainable products and services. The power of data and technology extends beyond environmental benefits, enabling organizations to integrate sustainability into their broader strategic goals," he said.

The collaborative study offers a roadmap for businesses seeking to harmonize technological advancement with environmental responsibility. By leveraging data, AI, and integrated strategies, Indian organizations have the opportunity to set a global benchmark in sustainability.

As the findings demonstrate, the path to a sustainable future is not just a possibility—it's a business imperative. For Indian organizations, the message is clear; act decisively, harness the power of technology, and lead the way in building a resilient, sustainable tomorrow.