New Delhi: AI and analytics key to achieving climate goals finds a new global study from Genpact. The study findings reveal that those companies that have embedded sustainable climate-related practices into their organisations see significantly better business performance than those that have not.
The study titled Tech for Progress 360: Accelerating climate action with data-led insight, finds that 58% of senior executives strongly agree that their companies have embedded environmentally sustainable business practices. The sustainability leaders – have better business performance compared to 40% of other respondents.
AI and analytics key to climate goals
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 (AI) 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 organisations and those who do not.
The research reflects input from 510 senior executives from large global enterprises. It examines the challenges and opportunities businesses face as customers, investors, and employees seek out responsible businesses, and regulators impose more environmental, social, and governance (ESG) reporting requirements.
“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,” said Katie Stein, CSO and Global Business Leader for Enterprise services and Analytics, Genpact.
“We believe that organisations 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,” added Stein.
Tracking environmental sustainability with data-led insights
Businesses can no longer ignore or play lip service to 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.
Perhaps not surprisingly, survey respondents whose companies lead with embedded sustainable business practices are also more likely to use data and insights to encourage their partners to make progress towards their sustainability goals (58% vs 47% of other respondents).
However, these sustainability leaders are no more likely to track performance against climate goals, report on emissions, or monitor regulations than other respondents. All companies have more work to do as governments and regulatory bodies continue to require organisations to provide stakeholders with consistent, comparable, and reliable climate-related information.
Conducted in partnership with FORTUNE Brand Studio, Genpact’s report is the second in a three-part series and it analyses how companies are using technology to drive impact beyond the bottom line.
The research examines how businesses are working toward three distinct objectives: enhancing the employee experience; delivering environmental sustainability; and achieving diversity, equity, and inclusion.