- 73% of companies say digital technology plays a key role in achieving sustainability goals
- Most companies are increasing spending on their digital transformation
- 67% say a lack of data impacts their decision-making
Businesses are increasing investment in digitisation, artificial intelligence (AI) and data analytics to help reach sustainability goals, according to a new survey from Schneider Electric, the leader in the digital transformation of energy management and automation.
Nearly three-quarters of companies surveyed said digital technology plays a key role in achieving sustainability, and a majority are increasing spending on digital transformation.
More than a third of businesses are using or planning to use AI to help manage their decarbonisation transformation, Schneider Electric's Sustainability Index, 2024 found.
Although there are concerns about the energy consumption of AI, the results demonstrate the flip side of its positive role in reducing emissions, said Lisa Zembrodt, principal of Sustainability Business for Schneider Electric.
"The role of technology is critical in the management of the net zero transition," said Zembrodt. "While development and use of AI tools can be demanding on power supply and grid systems, these tools can also offer great support for business in monitoring and controlling emissions."
"This survey shows companies are increasingly recognising the critical role technology plays in moving to a low carbon economy, with most investing more in digital transformation than they were three years ago."
The survey found 53% of companies were increasing investment in digital transformation, 39% in automation, and 36% in renewable power. Among respondents, three in four agreed digital can help deliver their company's sustainability goals.
Furthermore, 46% of companies stated they were investing more in AI and analytics, while only 5% were investing less compared to three years ago.
Nearly one in 10 companies say they are already using AI as a resource for decarbonisation transformation, the survey found. One in four say they are implementing AI strategies and another 29% said they were discussing them.
Zembrodt said she was not surprised by the increasing investment in AI and data analytics. "Businesses are actively investing in digital tools to help understand, control, and reduce energy usage.
"Information is power," said Zembrodt. "Data is key to managing climate risk – without it, companies don't have insights into what's driving their emissions.
"If companies have access to real-time data, combined with analysis, there is much greater scope to respond to emerging issues, see where there are inefficiencies, pivot where possible and increase sustainability.
"Technology ranging from digital twins to monitoring, visualisation, and automation are among the quickest ways to understand and reduce emissions."
The survey revealed a worrying "digital divide" between those with access to digital data and sophisticated analysis and those lagging in digital adoption, Zembrodt said. "We found two-thirds were still relying on energy bills or spreadsheets.
"Most companies agreed that data limitations were impacting their decision making, this is a significant barrier to monitoring and improving efficiency and sustainability."
The survey also found that less than one in five companies have an overarching decarbonisation roadmap or strategy in place, and 40% are not yet acting to decarbonise.
"Companies need to realise the urgency of climate action," Zembrodt said. "With new climate-related financial disclosure regulations beginning to roll out next year, having a roadmap to transition your business to the low-carbon economy will be essential."
Zembrodt said productive uses of AI included advanced algorithms to reduce energy consumption and emissions by optimising energy-intensive processes such as heating and cooling systems in buildings, and optimising energy demand to alleviate consumption peaks.
Across industry, AI is being used to optimise processes, improve efficiency, reduce waste, and decrease energy use, she said.
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About the research
Schneider Electric commissioned research consultants, Pollinate, to conduct research among Australian business decision-makers to understand attitudes and adoption around sustainability initiatives. This is the fourth consecutive year of the 'Sustainability Index'. The survey questioned over 500 business decision-makers around Australia, in C-level and senior or middle management. Industry groups include: information technology, real estate, construction, manufacturing, retail, financial and insurance services, healthcare, and professional, scientific, and technical services.
