A new survey conducted by Schneider Electric indicates that companies are increasingly turning to digital technology, artificial intelligence (AI), and data analytics as critical tools in their pursuit of sustainability objectives.
The survey underscores that 73 percent of businesses recognize digital technology as vital for achieving these goals, with a majority escalating their investments in digital transformation initiatives.
AI’s Role in Decarbonization
Key findings from Schneider Electric’s Sustainability Index for 2024 reveal that over a third of companies are either currently utilizing or intend to leverage AI to manage their decarbonization efforts.
Despite concerns regarding the energy consumption associated with AI, the technology is perceived as a valuable asset in reducing emissions.
Lisa Zembrodt, Principal of Sustainability Business for Schneider Electric, emphasized the dual nature of AI, explaining, “While the development and use of AI tools can be demanding on power supply and grid systems, these tools can also offer great support for businesses in monitoring and controlling emissions.”
Investment Trends
The survey also highlights a trend of increased investment in digital areas. Specifically, 53 percent of companies are amplifying their investment in digital transformation, 39 percent in automation, and 36 percent in renewable energy.
Additionally, 46 percent of companies are allocating more resources to AI and analytics, with only 5 percent reporting a decrease in investment compared to three years ago.
Data Limitations: A Significant Hurdle
Despite these positive developments, 67 percent of companies indicated that a lack of data poses a challenge to their decision-making processes.
This highlights a significant barrier to improving efficiency and sustainability.
Zembrodt noted the existence of a “digital divide” between companies with access to advanced digital data and those lagging in digital adoption.
“Most companies agreed that data limitations were impacting their decision-making,” she said, emphasizing that this poses a major obstacle to monitoring and enhancing sustainability endeavors.
Urgency for Climate Action
The survey also uncovered that less than one in five companies have a comprehensive decarbonization strategy, and a concerning 40 percent are not yet taking action to decarbonize.
Zembrodt underscored the pressing need for climate action, particularly in light of upcoming climate-related financial disclosure regulations.
“Companies need to realize the urgency of climate action,” she stated, urging businesses to develop a roadmap for transitioning to a low-carbon economy.
Conclusion: Continued Investment Needed
In conclusion, while businesses are progressively investing in digital tools to support sustainability, challenges such as data limitations and the absence of comprehensive strategies persist.
The survey’s findings emphasize the necessity for continued investment in digital solutions and the formulation of robust decarbonization plans to meet future regulatory requirements and sustainability targets.