Research reveals collaboration and technology gaps within Australian organisations, recognition of AI and data as a powerful catalyst for driving action

 Kyndryl (NYSE: KD), the world’s largest IT infrastructure services provider, today released the Australian findings of the second Global Sustainability Barometer study, commissioned by Microsoft. The study, conducted by Ecosystm, shows that while the majority (83%) of Australian organisations place a high strategic importance on achieving sustainability goals, over half (52%) also say they are not fully leveraging technology to reach their environmental goals.

Since last year, 58% of organisations have increased their sustainability goals and program execution – demonstrating progress as the world works toward a green future.

“With Australia increasingly impacted by climate change and stricter sustainability regulations on the horizon, businesses must take decisive action to embed sustainability into their core operations,” said Faith Taylor, Chief Corporate Citizenship and Sustainability Officer at Kyndryl. “Our research highlights that Australian businesses are not seizing the opportunity to leverage technology as a powerful tool to accelerate their sustainability journey. By harnessing innovative solutions and digital transformation, organisations can not only reduce their environmental footprint but also unlock new business opportunities and gain a competitive edge in the global market.”

The study shows that Australian leaders are increasingly recognising the benefits of sustainability initiatives for their organisations, however, only 13% are using technology to reduce the technology environmental footprint and shape their overall sustainability strategy. By embedding technology into sustainability strategies, organisations can turn abstract goals into actionable, data-driven plans.

Key Australian findings include:

• While 70% of businesses say sustainability goals and initiatives are incorporated into existing reporting processes, only 1 in 10 fully use data for strategic planning and decision-making.
• Sustainable procurement/supply chain (28%) and net-zero commitments (23%) were identified as the top two most impactful environmental measures, followed by environmental reporting (18%). Despite their perceived importance, these areas, particularly sustainable procurement/supply chain and net-zero commitments, saw the least progress in terms of implementation by Australian businesses compared to 2023. Surprisingly, the use of renewable energy ranked low, with only 2% of organisations considering it a top impact factor.
• 43% believe artificial intelligence (AI) will positively impact their sustainability goals, but 62% of organisations limit initiatives to analysing historical data for monitoring and reporting, rather than future-gazing.

Matthew Sekol, a Sustainability Global Black Belt at Microsoft, added, “Companies can gain the insights needed to deliver on their commitments and drive resilience by integrating sustainability data with operational and financial data, and using traditional data analytics and robust AI tooling to reshape operational efficiencies and foster sustainable innovations.”

Taking action to advance sustainability strategies

To fully realise an organisation’s potential, Australian businesses should consider the following guiding principles:

• Technology must be core to strategic planning. 38% leverage IT to reduce the  environmental impact of technology yet over half (52%) say technology is not being fully leveraged to achieve their sustainability goals. In the next year, companies should consider integrating technology into sustainability strategies to turn abstract goals into actionable plans.

• Recast the role of AI. 75% of organisations use AI to monitor energy use and emissions, but only 37% use predictive AI to forecast energy needs based on current trends and patterns. Integrating AI-powered scenario planning and climate risk mitigation allows organisations to adopt a holistic approach to environmental responsibility, enhancing readiness for future challenges.

• Harness data for proactive business transformation. Disparate data across various enterprise planning systems is seen as a clear challenge as only 5% use data to guide their business’ transformation journeys and only 1 in 5 use data to track sustainability performance. By effectively integrating the disparate data, organisations gain a more comprehensive and accurate understanding of their environmental impact, which leads to informed sustainability decisions.

• Foster a culture of collective responsibility. Despite 48% of organisations citing employees as key sustainability advocates, 70% of employees have no awareness or only a basic understanding of their role in achieving sustainability goals. The next step is for organisations to fully engage cross-functional teams to move sustainability into a core business priority and ensure implementation.

While the benefit of AI for sustainability is gaining traction, AI’s environmental impact is a growing concern. Only 35% of organisations are considering the energy implications of their AI solutions.

Kyndryl and Microsoft provide actionable strategies for organisations to measure infrastructure baseline emissions and optimise AI architectures, including AI and machine learning models to minimise energy use and reduce waste. The two companies work closely with organisations in Australia to ensure that technological advancements contribute positively to sustainability goals without compromising innovation.

“We’re witnessing a growing wave of innovation and collaboration as organisations strive to address sustainability challenges,” said Ullrich Loeffler, CEO & Co-Founder of Ecosystm. “AI offers a unique opportunity to optimise processes, reduce waste, and minimise our environmental footprint. By working together, we can create a sustainable future for generations to come.”

About the Study

The second edition of the Global Sustainability Barometer study, conducted by Ecosystm and commissioned by Kyndryl and Microsoft, reflects the perspectives of 1,355 global sustainability leaders spanning 20 countries and 9 industry groups. Conducted between August and September 2024, this study aims to bridge the sustainability-technology divide by examining the roles of Strategy, Data, and AI in achieving sustainability goals.

Learn more about the global study, “From Insights to Action: The Technology Impact on Sustainability.”

About Kyndryl

Kyndryl (NYSE: KD) is the world’s largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries. The company designs, builds, manages, and modernises the complex, mission-critical information systems that the world depends on every day. For more information, please visit www.kyndryl.com.

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