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New IBM Report Shows Strong Tailwinds Behind Corporate Investment in AI for Sustainability; But Ambitions Don't Yet Match Actions

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IBM's State of Sustainability Readiness Report 2024 reveals that 88% of business leaders plan to increase IT investments for sustainability in the next 12 months. While 90% of executives believe AI will positively impact sustainability goals, 56% of organizations aren't currently using AI for this purpose. The study, conducted across 15 industries and 9 countries, highlights a significant perception gap between top executives and staff regarding sustainability initiatives.

Key findings show that 48% of sustainability IT investments are 'one-off' rather than regular budget items, and 50% of leaders report immature data for measuring sustainability KPIs. The report identifies financial planning as the top challenge, while resource efficiency metrics like renewable energy consumption and recycling are the primary sustainability KPIs.

Il rapporto sulla prontezza alla sostenibilità 2024 di IBM rivela che l'88% dei leader aziendali prevede di aumentare gli investimenti IT per la sostenibilità nei prossimi 12 mesi. Sebbene il 90% degli executive creda che l'IA avrà un impatto positivo sugli obiettivi di sostenibilità, il 56% delle organizzazioni non sta attualmente utilizzando l'IA a questo scopo. Lo studio, condotto in 15 settori e 9 paesi, mette in evidenza un significativo divario di percezione tra i dirigenti e il personale riguardo alle iniziative di sostenibilità.

I risultati chiave mostrano che il 48% degli investimenti IT per la sostenibilità è 'una tantum' piuttosto che voci di budget regolari, e il 50% dei leader riporta dati poco maturi per la misurazione degli KPI di sostenibilità. Il rapporto identifica la pianificazione finanziaria come la principale sfida, mentre le metriche di efficienza delle risorse, come il consumo di energia rinnovabile e il riciclaggio, sono gli KPI primari per la sostenibilità.

Informe de Preparación para la Sostenibilidad 2024 de IBM revela que el 88% de los líderes empresariales planean aumentar las inversiones en TI para la sostenibilidad en los próximos 12 meses. Aunque el 90% de los ejecutivos cree que la IA impactará positivamente los objetivos de sostenibilidad, el 56% de las organizaciones no está utilizando actualmente la IA para este propósito. El estudio, realizado en 15 industrias y 9 países, resalta una significativa brecha de percepción entre los altos ejecutivos y el personal en relación con las iniciativas de sostenibilidad.

Los hallazgos clave muestran que el 48% de las inversiones en TI para la sostenibilidad son 'puntuales' en lugar de partidas de presupuesto regulares, y el 50% de los líderes reportan datos inmaduros para medir los KPI de sostenibilidad. El informe identifica la planificación financiera como el principal desafío, mientras que las métricas de eficiencia de recursos, como el consumo de energía renovable y el reciclaje, son los KPI principales de sostenibilidad.

IBM의 2024 지속 가능성 준비 상태 보고서에 따르면, 88%의 비즈니스 리더들이 향후 12개월 동안 지속 가능성을 위한 IT 투자를 늘릴 계획을 하고 있습니다. 90%의 경영진이 AI가 지속 가능성 목표에 긍정적인 영향을 미칠 것이라고 믿고 있지만, 56%의 조직은 현재 이 목적을 위해 AI를 사용하지 않고 있습니다. 15개 산업과 9개 국가에서 실시된 이 연구는 지속 가능성 이니셔티브와 관련하여 상위 경영진과 직원 간의 인식 격차를 강조합니다.

주요 결과에 따르면, 지속 가능성을 위한 IT 투자 중 48%가 정기 예산 항목이 아닌 '일회성'으로 나타났으며, 50%의 리더가 지속 가능성 KPI 측정을 위한 미비한 데이터를 보고하고 있습니다. 보고서는 재정 계획을 주요 도전 과제로 식별하며, 재생 에너지 소비 및 재활용과 같은 자원 효율성 지표가 주요 지속 가능성 KPI로 자리잡고 있습니다.

Le rapport sur la préparation à la durabilité 2024 d'IBM révèle que 88 % des dirigeants d'entreprise prévoient d'augmenter les investissements en TI pour la durabilité au cours des 12 prochains mois. Bien que 90 % des cadres estiment que l'IA aura un impact positif sur les objectifs de durabilité, 56 % des organisations n'utilisent actuellement pas l'IA à cette fin. L'étude, réalisée dans 15 secteurs et 9 pays, met en évidence un écart de perception significatif entre les hauts dirigeants et le personnel concernant les initiatives de durabilité.

Les principales découvertes montrent que 48 % des investissements TI pour la durabilité sont des dépenses 'ponctuelles' plutôt que des éléments budgétaires réguliers et que 50 % des dirigeants rapportent des données immatures pour mesurer les indicateurs clés de performance (KPI) de durabilité. Le rapport identifie la planification financière comme le plus grand défi, tandis que les métriques d'efficacité des ressources, telles que la consommation d'énergie renouvelable et le recyclage, sont les principaux KPI de durabilité.

IBMs Bericht über den Stand der Nachhaltigkeitsbereitschaft 2024 zeigt, dass 88% der Unternehmensleiter planen, die IT-Investitionen für Nachhaltigkeit in den nächsten 12 Monaten zu erhöhen. Während 90% der Führungskräfte glauben, dass KI sich positiv auf die Nachhaltigkeitsziele auswirken wird, nutzen 56% der Organisationen derzeit keine KI zu diesem Zweck. Die Studie, die in 15 Branchen und 9 Ländern durchgeführt wurde, hebt eine erhebliche Wahrnehmungslücke zwischen Top-Managern und Mitarbeitern angesichts der Nachhaltigkeitsinitiativen hervor.

Die wichtigsten Ergebnisse zeigen, dass 48% der IT-Investitionen in Nachhaltigkeit einmalige Ausgaben sind und nicht Teil des regulären Budgets, und 50% der Führungskräfte berichten von unreifen Daten zur Messung von Nachhaltigkeits-KPIs. Der Bericht identifiziert die Finanzplanung als größte Herausforderung, während Ressourcenverbrauchsmessgrößen wie der Verbrauch erneuerbarer Energien und Recycling die primären Nachhaltigkeits-KPIs darstellen.

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Business leaders see the benefits of investing in IT for sustainability, with 88% planning to increase investments in IT for sustainability over the next 12 months

90% of executives surveyed believe AI will positively influence sustainability goals — yet more than half of organizations aren't leveraging AI for sustainability

Significant perception gap between top execs and their staff on sustainability expectations

ARMONK, N.Y., Nov. 12, 2024 /PRNewswire/ -- IBM (NYSE: IBM) today released its first-ever State of Sustainability Readiness Report 2024, revealing that 88% of business leaders surveyed are planning to increase investment in IT for sustainability over the next 12 months. The research showcases that over half of respondents across a range of industries see investing in technology for sustainability as an opportunity for growth, not just cost mitigation.

Despite business leaders' view on sustainability-related IT, however, the report reveals that action is not matching ambition — especially when it comes to AI technology.

The State of Sustainability Readiness 2024 report was conducted independently by Morning Consult and sponsored, analyzed and published by IBM. Interviews were conducted between April and May of 2024 with 2,790 business leaders and decision-makers across 15 industries and 9 countries. The report also includes case studies at the intersection of sustainability and technology from Water Corporation (Australia), Downer Group (Australia & New Zealand), and Neste (Finland).

The untapped potential of AI

Almost universally, respondents had a positive take on AI's potential for sustainability: 9 out of 10 surveyed executives agree that AI will positively influence achieving their sustainability goals. However, the report found that 56% of organizations are not yet actively using AI for sustainability. This discrepancy may come from budgetary constraints, as survey respondents identified financial planning as the top challenge to investing in sustainability. According to the report, 48% of IT for sustainability investments are "one-off" rather than funded from a regular operational budget.

To responsibly tap into the potential of AI, organizations also need to account for the energy use it demands—something leaders are trying hard to mitigate. This new trend of AI adoption is galvanizing organizations to employ more sustainable practices, such as optimizing data processing locations, investing in energy-efficient processors and leveraging open-source collaborations. These strategies can not only reduce the environmental footprint of AI, but also enhance operational efficiency and cost-effectiveness. Finding the right AI talent is also an issue: staying staffed with experienced workers amid current skills shortages is in the top three sustainability business challenges leaders are facing, according to the report.

"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," says Christina Shim, Chief Sustainability Officer at IBM. "Leaders should stay thoughtful about minimizing environmental impacts while adopting AI, but the data shows a lot of opportunity for progress on both sustainability and costs."

Difficulty Measuring Sustainability

As organizations continue to embed sustainable practices and technology into their operations, one key question remains unanswered: How do you measure sustainability? Surveyed leaders mostly looked to resource efficiency, citing renewable energy consumption, total energy consumption and recycling as their top 3 KPIs for sustainability outcomes. (IBM similarly measures those areas through consumption of megawatt-hours of energy, percentage of electricity consumed worldwide from renewable sources, and percentage by weight of waste from landfill and incineration. Learn more about IBM's Impact Report here)

The report also revealed that measuring sustainability KPIs is a top-three current challenge faced by respondents. Fifty percent of business leaders noted that their data to measure sustainability KPIs isn't mature, which can make the reporting process even more challenging.

"Whether organizations are looking to begin their sustainability journey or already have experience in the matter, collecting and accurately classifying their data is critical to develop more sustainable practices," says Kendra DeKeyrel, VP, ESG & Asset Management Products Leader at IBM. "This research shows that business leaders understand the importance of a data-driven approach to sustainability – and are willing to invest in technology to accelerate this process"

Over half of respondents agree that reporting and compliance is challenging for their organization, yet only some (29%) of respondents identified improving accuracy of reporting as one of the top 3 benefits they would most appreciate from implementing new technology. Organizations like Ikano group, for example, are seeing the positive outcomes of investing in solutions to automate ESG data capture and analysis. They were able to capture and track over 15,000 data types for CSRD reporting in turn saving thousands of manhours on the reporting process.

Perception Gap Between Executives, Staff

The report also revealed a significant disconnect between top executives and their staff when it comes to sustainability perceptions and expectations. C-suite executives are more optimistic than their vice presidents and directors when it comes to bolstering climate resiliency. Indeed, 67% of top executives surveyed viewed their climate resiliency efforts as proactive, compared to just 56% of lower-level decision makers. This disparity spans topics including financial risks, physical infrastructure risks, and supply chain risks.

Actionable Recommendations

IBM's State of Sustainability Readiness Report provides key recommendations to business leaders and organizations eager to confront sustainability challenges. Among them:

  • Invest in the AI tools that are right for your organization – For example, generative AI can provide insights that help identify opportunities to reduce carbon emissions and create scenarios and algorithms for more sustainable business practices. This can provide organizations the insights needed to address climate crises and turn sustainability ambition into action.
  • Lean in on data to lessen the perception gap between C-suite and lower-level decision makers – As top challenges to sustainability continue to evolve, organizations should collect data from across their business to better understand the difference in perceptions between C-suite and lower-level decision makers. Leveraging data analysis and reporting tools can uncover blind spots and maintain visibility and alignment across the organization.

For the full report, visit https://www.ibm.com/think/reports/sustainability-readiness

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit ibm.com for more information.

Media Contact

Agustina Begalli, IBM Software Communications

agustina.begalli@ibm.com

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SOURCE IBM

FAQ

What percentage of companies plan to increase IT investments for sustainability according to IBM's 2024 report?

According to IBM's State of Sustainability Readiness Report 2024, 88% of business leaders plan to increase their IT investments for sustainability over the next 12 months.

How many organizations are currently not using AI for sustainability according to IBM's 2024 report?

The report reveals that 56% of organizations are not yet actively using AI for sustainability initiatives, despite 90% of executives believing in AI's positive impact on sustainability goals.

What are the top sustainability KPIs measured by companies according to IBM's 2024 report?

According to the report, the top three sustainability KPIs are renewable energy consumption, total energy consumption, and recycling.

What percentage of sustainability IT investments are one-off versus regular budget items in IBM's 2024 report?

The report indicates that 48% of IT investments for sustainability are 'one-off' rather than funded from regular operational budgets.

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