IBM’s State of Sustainability Readiness Report 2024 reveals crucial insights at the intersection of sustainability and technology. As businesses around the world look to tackle the growing challenges of climate change and resource depletion, the report underscores the increasing role of Information Technology (IT) in driving sustainable practices. The survey, conducted among 2,790 business leaders across 15 industries in nine countries, identifies both the opportunities and barriers businesses face as they strive to meet their sustainability goals. The findings highlight a strong desire for innovation, with a significant emphasis on the role of artificial intelligence (AI) in the future of sustainability.
One of the standout findings from the report is the growing commitment by businesses to invest in sustainability through technology. 88% of business leaders surveyed reported that they plan to increase their IT investments in sustainability over the next 12 months. This reflects a larger trend where companies see the intersection of technology and sustainability as essential to meeting 2030 climate targets. While technological innovation, particularly AI, is seen as a potential game-changer, many companies still face hurdles in integrating it fully into their sustainability strategies.
Christina Shim, Chief Sustainability Officer at IBM, expressed her excitement about the growing recognition of AI’s potential to drive sustainable change. “Businesses see huge potential for AI to boost both their sustainability efforts and their bottom line, and it is exciting to see those incentives aligned,” Shim said. However, she also emphasized the importance of adopting AI thoughtfully to minimize any negative environmental impacts while maximizing the potential for progress.
While the potential for AI in sustainability is widely recognized, the report also sheds light on significant barriers to progress. A key challenge identified is the limited adoption of AI for sustainability purposes. Despite 90% of executives viewing AI as an essential tool for achieving sustainability, 56% of organizations have yet to integrate AI into their sustainability efforts. This gap highlights the need for better understanding, investment, and resources to implement AI-driven solutions that can help reduce emissions, optimize resource usage, and enhance environmental performance.
Moreover, financial planning challenges are another major barrier to sustainability progress. Many organizations struggle to integrate sustainability goals with their financial strategies, leading to difficulties in aligning investments with long-term environmental objectives. Without clear financial roadmaps, businesses often find it hard to secure the necessary funds to implement green technologies or to measure the true cost of environmental impacts.
Looking forward to 2025, IBM’s experts have shared key predictions on how businesses will increasingly rely on technology to achieve sustainability goals. These predictions highlight the growing importance of AI-powered automation, generative AI, and secure technology solutions for ESG (Environmental, Social, and Governance) reporting.
Kendra DeKeyrel, Vice President of ESG & Asset Management at IBM, predicts that AI and automation technologies will play a crucial role in achieving 2030 sustainability goals. She suggests that businesses with ambitious sustainability targets should implement AI-driven automation capabilities, such as resource management and observability technologies. These tools will help companies reduce data center energy consumption and improve asset performance, making their operations more energy-efficient and sustainable.
Another key trend expected to shape sustainability efforts is the growing adoption of generative AI. According to DeKeyrel, business leaders will increasingly experiment with AI to improve sustainability efforts, especially in the context of mounting compliance measures and the growing demand for energy-efficient processors. AI will help organizations measure emissions, identify sustainability opportunities, and track progress toward reducing their environmental impact.
In the financial sector, secure and adaptable technology will become a critical component of ESG reporting. DeKeyrel emphasizes that the industry will prioritize solutions that harmonize data and ensure traceability, enabling financial institutions to calculate and act on financed emissions. This shift is essential as businesses seek to meet increasing regulatory demands around sustainability reporting and carbon footprint tracking.
Another exciting area of growth is the integration of AI with geospatial data. David Blanch, Director of Product Management, ESG and Environmental Intelligence at IBM, predicts that governments, utilities, and private companies will increasingly use AI models trained on geospatial datasets to predict and mitigate disruptions caused by extreme weather events and climate crises. These tools will be essential for managing climate risk and ensuring that infrastructure can withstand the challenges posed by a changing climate.
IBM continues to push the boundaries of what’s possible in the realm of AI-powered sustainability solutions. In 2024, IBM launched several groundbreaking sustainability software solutions that leverage AI to tackle some of the most pressing environmental challenges faced by businesses today.
One of the key highlights of IBM’s 2024 sustainability software releases is the enhancement of IBM Envizi, a platform designed to streamline ESG planning and forecasting. By integrating Envizi with IBM Planning Analytics, the tool now provides organizations with advanced capabilities to plan emissions reduction strategies and monitor progress toward sustainability goals.
Another key release is Maximo Application Suite 9.0, which introduces AI-driven features designed to optimize asset lifecycles and reduce emissions. This solution is particularly useful for industries with large, complex asset portfolios, enabling companies to track the environmental performance of assets throughout their lifecycle and reduce energy consumption.
IBM has also teamed up with WWF-Germany and the UNDP to develop AI-driven solutions for forest conservation and clean energy access. The AI models developed for African forest elephant conservation aim to use AI to protect keystone species, while the partnership with UNDP aims to forecast energy access and equity challenges worldwide.
In a significant move, IBM acquired Prescinto, a company specializing in AI-driven asset performance management. This acquisition enhances IBM’s Maximo Suite, improving its capabilities in monitoring and optimizing the performance of renewable energy assets, further supporting the transition to a sustainable energy future.
IBM’s State of Sustainability Readiness Report 2024 underscores the growing intersection between technology and sustainability. While significant barriers remain, particularly in terms of AI adoption and financial planning, the potential for AI and other technologies to drive sustainability forward is clear. With innovative tools like IBM Envizi, Maximo Suite, and AI-powered asset management, businesses now have the capability to meet their environmental goals more effectively.
As organizations continue to harness the power of AI and automation to reduce emissions, optimize resource use, and improve sustainability, the future of green technology looks brighter than ever.
