Sustainability & AI Are the Foundations of Future Business

Guest post by John Bailey, Sales Manager, Enterprise Division, Logicalis

In the world of business right now, the two most prominent topics are arguably sustainability and Artificial Intelligence (AI). While these two subjects might not seem to have a lot in common other than their topicality, they do share a number of similarities.

Increasingly, business leaders are having discussions about the impact of sustainability and AI on their day-to-day operations. Although, there is still a lack of understanding in terms of how to fully embrace and capitalise on their potential to achieve business objectives. Furthermore, the level of compliance and reporting around sustainable practices and AI deployment is intensifying.

Despite these challenges, the time for organisations to act and put strategies in place across Environmental, Social and Corporate Governance (ESG) and AI is now. After all, operating sustainably is fast becoming a prerequisite for businesses as consumers, partners and suppliers have a definite preference for working with organisations with strong green credentials.

Meanwhile, since the launch of ChatGPT – and its crowning as the fastest application to reach 100M active monthly users – AI has moved from the realm of science fiction to an innovative, accessible and revolutionary tool which can be used for business purposes across many industries.

Taking that opportunity to drive growth (by having sustainable operations) and streamline operations (through AI solutions) and turning it into a reality can be difficult, with many organisations unsure of how to practically implement either in a way that is effective and also ethical.

Getting in line with governance

Governments and organisations are currently implementing or preparing legislation for sustainability and AI, such as the Corporate Sustainability Reporting Directive (CSRD) and the EU AI Act, which means that companies need to tread carefully when it comes to developing strategies and deploying solutions.

In sustainability, this means being mindful of what the regulations are and devising a plan that enables them to meet them. It also means looking at the entire picture and ensuring that no area is left out. Quite often, when looking at ESG, the focus is skewed towards the environmental element, leaving the social and governance aspects forgotten.

By being proactive, instead of reactive, about achieving ESG goals and upholding requirements, business can open themselves up to a wealth of advantages that benefit the environment, their customers, and their business. Enacting effective environmental policies makes business sense from a reputational and customer perspective and also removes the possibility of penalties for non-compliance, such as fines.

Having access to a wealth of data regarding green credentials – including carbon emissions – can be incredibly valuable in terms of new business insights, new efficiencies and even new business models. That’s where AI can add considerable value in this space and support companies on their sustainability journey.

However, it’s imperative that companies carefully choose the source of AI (opting for enterprise-grade as opposed to open source) and put controls in place to ensure it is working effectively, accurately and securely. The bottom line on AI is that businesses and users must be able to trust the source, which should be explicable, fair, robust, transparent and privacy-aware.

Leading the way

It’s clear that across both sustainability and AI, there is still a great deal of work to be done by businesses to ensure compliance and uphold ethics while driving success. But this effort is worth it because those that invest the time and take the lead will be in prime position to be competitive and innovative, making them stand out from the crowd.

IBM are a great example of an early adopter in both spaces, with the company publishing the first Environmental Impact Policy in 1971 and creating an AI ethics board and compliance framework in 2018. These steps demonstrate a desire to be sustainable and successful organisation, underpinned by adequate structures and strategies to uphold governance and ethics.

Similarly, Logicalis started from a point of no ESG strategy to having a comprehensive plan that identifies three main pillars for being a responsible business – people, communities, and the planet. Under each, the company has defined objectives and established metrics aligned with Sustainable Development Goals (SDGs) and principal Environmental, Social and Corporate Governance (ESG) domains of Governance, Planet, People and Prosperity.

By getting ahead of the curve, businesses have the opportunity to be pioneers in these areas. With sustainability climbing up the list of qualities that partners, providers, and consumers look for when selecting a product or service, an established ESG strategy has the power to attract customers and enable business growth.

While it is only in its infancy as a mainstream offering, AI is likely to follow the same path. Companies will want to capitalise on such emerging technologies to achieve business goals, but ensuring ethical practices will be crucial. That means having a framework in place to control the application and measure the performance of same.

It will take time and investment to improve sustainability credentials and leverage AI solutions, but the returns could be exponential. The two, arguably worlds apart, can be used in tandem – with sustainability driving AI uptake and AI delivering data on sustainability. Together, they can open up new opportunities, attract new investors and deliver new impacts for organisations – as well as for the planet. The business world is on the cusp of a greener, AI-driven future, and the companies that embrace this first, effectively and ethically, will reap the most rewards.