• Investment Trends: 88% of business leaders intend to increase IT investments for sustainability over the next year, with a majority viewing this as growth opportunities.
• AI Utilization Lag: While 90% believe in AI’s potential for sustainability, 56% of organizations are not yet using AI effectively due to budget and talent challenges.
• Measurement and Perception Gaps: Measuring sustainability KPIs remains difficult, with 50% citing immature data and a notable perception gap between C-suite leaders and staff on sustainability expectations.

IBM has released its first-ever State of Sustainability Readiness Report 2024, revealing that 88% of business leaders plan to increase IT investments for sustainability over the next 12 months. Conducted by Morning Consult and sponsored by IBM, the report surveyed 2,790 business leaders across 15 industries in nine countries between April and May 2024. This research underscores the growth potential of sustainability-focused technology investments, though significant challenges remain, particularly with AI adoption and measuring sustainability progress.

Untapped Potential of AI

A striking 90% of surveyed executives see AI as a positive force for meeting sustainability goals, but 56% of organizations have yet to leverage AI for this purpose. Financial planning was noted as the top barrier to investing in sustainable IT solutions, with 48% of investments being “one-off” rather than part of a recurring budget.

“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,” said 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 in Measuring Sustainability

Measuring sustainability outcomes remains a top challenge, with 50% of leaders citing immature data for key performance indicators (KPIs). Common KPIs include renewable energy consumption, total energy use, and recycling rates.

“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,” said 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.”

Perception Gap Between Executives and Staff

The report highlights a disconnect between C-suite leaders and lower-level decision-makers regarding sustainability expectations. While 67% of top executives view their climate resiliency efforts as proactive, only 56% of directors and VPs share that view. This perception gap spans areas like financial, physical infrastructure, and supply chain risks.

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Recommendations for Business Leaders

IBM’s report suggests actionable steps for organizations, including:

• Invest in tailored AI solutions: Use generative AI to identify carbon reduction opportunities and devise sustainable business scenarios.
• Enhance data collection to bridge perception gaps: Using comprehensive data collection and analysis tools helps uncover blind spots and ensures alignment across organizational levels.

Organizations such as Ikano Group demonstrate the benefits of automated ESG data solutions, capturing over 15,000 data points for CSRD reporting and saving significant time on compliance.

The IBM State of Sustainability Readiness Report provides a roadmap for leaders aiming to transform sustainability ambitions into action through targeted technology investments.

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