A Microsoft and PwC report finds that digitisation is the ‘turnkey’ for both sustainability and business, and calls for an end to ‘two-pocket thinking’.
Sustainability and business impact should be seen as “two sides of the same coin”, according to a Microsoft, PwC and University of Oxford report.
The whitepaper is co-authored by Laura-Marie Töpfer, CSO, Microsoft Western Europe, Andreas Feiner, Partner, PwC Europe, and Michael Obersteiner, Director Environmental Change Institute, University of Oxford.
In the foreword, Laura-Marie said: ““Sustainability and business impact have traditionally been seen as separate forces; perceived as two distinct pockets rather than what they really are – two sides to the same coin.
“Today, forward-thinking leaders recognize that sustainability is not just an environmental imperative; it is a critical component for business success.
“Embracing sustainable practices can unlock efficiencies, drive innovation and open new markets, positioning companies as leaders in the transition to a greener and more competitive economy – a win-win-win.”
Writing on LinkedIn, Lewis Richards, CSO, Microsoft UK, said: “This is a great piece of work and an insightful read. Every business has a sustainability imperative. It’s not up to ‘someone else’ to sort out it’s on all of us. Get after it.”
Impact and business: a symbiotic relationship
The whitepaper wastes no time in setting out the potential of artificial intelligence to transform sustainability and business.
It says there is a conflict in some boardrooms, with some leaders wanting to shrink or scrap sustainability programmes that do not deliver commercial benefits.
At the same time, the report says: “CEOs and CFOs also need to balance the fact that sustainability is a big focus topic for shareholders, investors and customers.”
The report says: “Data and AI have the potential to make sure sustainability programmes are backed up by a strong business case.
“Unlocking that potential begins with collecting, aggregating and analysing vast amounts of operational, financial and sustainability data and bringing it into one unified data estate.”
It adds that “very few” businesses have tapped into the full potential of this data.
Sustainability and business
In the report, the authors say that CO2 emissions impact costs and are “directly linked to revenue on the balance sheet” because customers and consumers are increasingly interested in products that generate a lower carbon footprint when they are manufactured, used and disposed of.
They add: “Leaders who steer their businesses towards offering products that meet these shifting expectations can grab a first-mover advantage by proactively driving the switch to low-carbon products.”
They argue that the report shows that AI technologies “have the potential to reduce global carbon footprints by gigatonnes of CO2 annually”.
At the same time, the report says that using data and AI to reduce emissions has the potential to save companies hundreds of billions of dollars each year”.
Laura-Marie said: “We found that data and AI turbocharges sustainable business transformation – our research indicates that technology can help global businesses save billions of dollars every year, unlock new green business models and cut global CO2 emissions by several gigatonnes.
“So the real bottom line? There is no two-pocket thinking here. There is no business without sustainable business, and digitisation is the turnkey for both.”
What do chief sustainability officers say?
The report includes short interviews with a numbers of leading sustainability executives, all of whom back AI and data’s power to transform sustainability and business.
Anna Celsing Klingberg, CSO Alfa Laval
“Through the power of data and AI, we unlock higher and longer quality of service for our products – which saves money for our customers and reduces carbon emissions. It also increases profits for us and our customers.”
Heidi Peltonen, VP Sustainability, Outokumpu
“We have taken transparency in sustainability to the next level by becoming the first stainless steel producer to provide a product-specific carbon footprint.
“This data, based on continuous production data and accurate emission factors including the value chain emissions, is part of our commitment to helping our customers to reduce their climate emissions.”
Hanne Rolén, Head of Sustainability, SLB Capturi
“AI has exciting potential to make a positive impact when combined with carbon capture.
“AI can support the management of on-site carbon capture in a dynamic manner.”
