AI and analytics key to achieving climate goals

Sustainability is the impact of present actions on the ecosystems, societies, and environments of the future. Such concerns should be reflected in the strategic planning of sustainable corporations. There is a direct correlation between companies’ sustainability practices and business Performance.

Companies that have embedded sustainable climate-related practices into their organizations see significantly better business performance than those who have not, according to a new study released by Genpact, focused on delivering digital transformation.

The research, Tech for Progress 360: Accelerating climate action with data-led insight, finds that 58% of senior executives who strongly agree that their companies have embedded environmentally sustainable business practices – the sustainability leaders – have better business performance compared to 40% of other respondents.

These leaders are also most likely to say their organizations adopted new technologies over the previous two years (70% vs 45% of other respondents), demonstrating that forward-thinking companies often lead the way on multiple innovation fronts. They understand the necessity of leveraging digital technologies and data across their organizations as well as the importance of putting environmental sustainability practices front and center in their businesses.

For those sustainability leaders, technology plays a critical role in helping them achieve their ambitious goals. Half of the respondents recognize the potential of artificial intelligence and 40% see the potential of advanced analytics to advance their climate-related sustainability goals.

Conversely, those who have less established practices are less likely to call out the value of these technologies. This underscores an ongoing and widening gap between those leaders who know how to use AI, data, and analytics to unlock enduring value for their organizations and those who do not.

As businesses grapple with economic uncertainties, the time is ripe to identify, manage, and reduce ESG-related risks that can have a significant impact on the environment and a company's long-term sustainability and profitability. Experts say that organizations that lead with smart, agile, and data-driven action plans will be the winners. Combining advanced analytics, AI, and automation with human judgment plays a vital role in helping enterprises drive meaningful transformation that builds resilient companies, a healthier environment, and stronger communities.

The research further reveals, businesses can no longer ignore environmental sustainability. As regulators place more scrutiny on ESG practices, companies need to pay closer attention to how they track both their initiatives and those of their entire supply chain ecosystems, by taking advantage of data-driven insights.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA