Nearly Seven In 10 Indian Organisations Rely On Tech To Drive Sustainability Success: Study

In India, there is a heightened focus on environmental sustainability and leveraging technology as an enabler of sustainable solutions, despite an increase in climate-related events and challenges. A recent study by Kyndryl and Microsoft revealed that 68% of Indian companies see great significance in technology’s role in achieving their sustainability goals.

However, only 34% believe they make full use of it in their organisation.

The study, conducted by Ecosystm, evaluated India's sustainability landscape, the disparity between intent and operational implementation, and highlighted how sustainability initiatives can stimulate innovation, foster growth, and boost competitiveness.

Customers emerged as the most influential stakeholders advocating for sustainability (60%), followed by employees (52%) and supply chain partners (40%), according to the study. 

Artificial intelligence has a critical role to play in sustainability, as organisations can improve their decision-making processes with data-driven insights, mitigate risks, optimise resource allocation, and strengthen sustainability efforts with the incorporation of predictive AI into sustainability strategies.

However, accessing data still poses a challenge. Over 50% of organisations find their sustainability goals hindered by the difficulty in pinpointing relevant data and integrating necessary information for environmentally conscious decision-making.

“Organisations are at diverse levels of sustainability maturity. Visionary companies are harnessing technology to meet regulatory standards and to pursue sustainability objectives effectively. They are leveraging technology to fulfil customer expectations, reduce expenses and innovate, thereby unlocking the full potential of sustainability,” said Faith Taylor, chief sustainability and ESG officer, Kyndryl.

Key findings from the survey include:

• While 79% of organisations use AI to monitor energy usage and emissions, only 20% use it to predict future energy consumption, 26% for predicting and preparing for natural disasters, 26% to recognise inefficiencies and 28% to identify risks.

• While 86% of organisations in India recognise the significance of sustainability in shaping business strategies, only 16% have prioritised sustainability goals and built them on real facts and data.

• Around 41% of organisations integrate sustainability initiatives in their reporting primarily for compliance.

• The Indian government significantly influences sustainability adoption, with 89% of organisations acknowledging its role.

The study noted various sustainability best practices aimed at driving growth and improving business outcomes:

• Make Sustainability A CEO And Boardroom Priority: With over 55% of sustainability officers reporting to the CEO and the CEO defining the vision of sustainability programmes in 93% of organisations, it's a top-down governance approach across Indian companies. While 39% of organisations aligned sustainability teams with technology, there is a need for stronger alignment as technology-driven measures are easier to quantify and drive innovation.

• Align Sustainability With Technology Modernisation: Technology plays a key role in automating, modernising and prioritising sustainability processes and infrastructures. The study showed that 56% of organisations in India leverage digital tools for hybrid work strategies and 55% use AI and automation to enhance efficiency, reduce environmental footprint and build sustainable operations.

• Build An Integrated Data Foundation: Streamlining data management to facilitate informed decision-making is key to successful execution of strategies. However, the study highlighted that only 11% of organisations in India offer their employees real-time dashboards for monitoring their ongoing sustainability goals and accomplishments.

• AI For Predictive Sustainability: The strategic imperative lies in harnessing predictive analytics for comprehensive scope 3 risk assessment, anticipatory energy consumption forecasting and proactive measures against natural disasters. About 28% of organisations utilise AI to identify scope 3 risks using public sources, indicating a need for growing awareness of the broader environmental impact beyond direct operations.

“India aims to reduce carbon intensity of economy by 45% by 2030—this will require collective action from governments, industries, enterprises and individuals,” said Ullrich Loeffler, co-founder and chief executive at Ecosystm.