In Short : A joint study by Microsoft and Kyndryl reveals a notable disparity between sustainability intentions and actual actions. This finding underscores the challenge of translating environmental aspirations into tangible measures, emphasizing the need for more effective and consistent sustainability practices in corporate strategies.
In Detail : Companies are experiencing a substantial disconnect between knowing that environmental sustainability is important and integrating sustainability into their strategies and data, according to new research from cloud industry giants Microsoft and Kyndryl.
The Global Sustainability Barometer study conducted by Ecosystm found 85% of organizations put high strategic importance on reaching environmental, social and governance (ESG) targets, but just 16% of respondents have truly integrated sustainability with data strategies.
Full integration means “moving beyond sustainability goals that achieve compliance and instead leveraging technology and data to support long-term growth and new business opportunities,” Kyndryl’s Global Sustainability and ESG Officer Faith Taylor told SDxCentral. “A strong data strategy is at the heart of sustainability success.”
Building a data-centric culture
The role of technology, therefore, is to create a data-centric culture. Taylor cited artificial intelligence (AI), automation, blockchain and IoT technologies as key to helping “businesses gain valuable information about emissions throughout their supply chains.”
Integrating sustainability into data strategies also means thinking ahead to identify new opportunities. The report found 61% of companies use AI to monitor their energy consumption, but just 34% are currently using that data to predict and plan for future energy use.
These disconnects can be explained in part by the difficulty of translating sustainability intentions into action. “[It]’s hard work,” Taylor said.
“To strategically decouple carbon from growth, a company first needs to understand its environmental footprint. This requires gathering the right data across an organization and developing an emissions baseline, which necessitates cross-functional teamwork and bridging data silos,” she said. “Obtaining and understanding all this data can prove to be a major challenge.”
This is where the technology industry and vendors like Microsoft and Kyndryl can help move the needle. “The technology industry can play a dual role at this inflection point: We must achieve our own sustainability goals while leading customers toward more resilient and sustainable solutions,” Taylor said. “Technological adaptation and innovation is advancing at a rapid pace, and companies need help unlocking its full potential.”
In addition, the survey found that customers and employees are the top two groups being vocal about supporting sustainability efforts. Although investors hold significant influence over company strategy, and “investing in sustainability is one of the best ways to manage risk,” this group is third-most vocal in support, followed by government regulators in fourth place.
“Customers care about the brands they support as they are more informed about the materials and look at it to drive revenues and supply chains used to produce their products and services. And employees want to work for companies that align with their values as they realize they can make an impact,” Taylor said. “We see the shift in stakeholder advocacy as an opportunity for companies.”