A recent survey by Boston Consulting Group (BCG) reveals that AI is making waves in corporate decarbonisation strategies, with over half of global companies acknowledging its profound impact on emissions measurement and reporting. Beyond these technical advancements, AI is also driving significant financial rewards for companies committed to sustainability.
Yet, despite these promising developments, progress in corporate decarbonisation has hit a plateau over the past year. Fewer companies are setting ambitious emissions targets or achieving meaningful reductions. This stagnation is particularly surprising given that many firms are already reaping substantial financial benefits from AI, including cost savings through enhanced efficiency and reduced waste.
Hubertus Meinecke, Global Leader of Climate and Sustainability at BCG, and a coauthor of the study, said:
“This year’s survey highlights the substantial rewards that some companies are reaping from decarbonisation, including significant financial gains, enhanced reputations, and operational efficiencies.”
The report also examined the connection between corporate actions and the financial benefits of decarbonisation, finding that the use of AI in emissions reduction efforts was the strongest predictor of success.
Companies leveraging AI were 4.5 times more likely to achieve net benefits of at least 7% of annual revenues. Other key drivers included product-level emissions calculation (4x more likely), developing a climate transition plan (2.9x), setting validated emissions reduction targets (1.9x), and reporting across all emissions scopes (1.5x-1.6x).
Diana Dimitrova, BCG Managing Partner and Director, and study coauthor, said:
“Too few companies are seizing the financial gains offered by decarbonisation. By mastering essential foundational actions like measurement, reporting, target setting, and taking advanced steps towards sustainability, these companies can become more efficient, more profitable, and demonstrate a stronger commitment to a greener future.”
The report reveals that AI is making a profound impact on sustainability initiatives by automating essential tasks, thereby allowing organisations to focus on crucial areas such as reducing emissions and capturing value.
Over half of the respondents recognise AI’s transformative role in their decarbonisation strategies. Specifically, AI is reported to have a "major" or "extremely significant" effect on emissions measurement (55%), emissions reporting (53%), planning for abatement opportunities (51%), and enhancing the sustainability of business processes and product design (51%). Looking ahead, respondents are optimistic about AI's potential to boost energy efficiency and streamline the collection and analysis of emissions data.
Despite these promising benefits, the report also sheds light on significant obstacles. The most prominent challenge is the high cost of AI solutions, which concerns 34% of respondents, followed closely by the difficulties associated with training and upskilling, noted by 30%.
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