Published: January 23, 2025
A survey that S&P Global Sustainable1 conducted shows that companies across sectors and geographies are contemplating the applications of AI with respect to sustainability.
Survey respondents were particularly bullish about the opportunities AI presents to their environmental strategies, pointing to AI’s potential in areas like optimizing energy use, improving resource efficiency, monitoring emissions and reducing waste.
Survey respondents also highlighted the risks AI can pose, such as introducing algorithmic bias as well as privacy and concerns around data governance.
In recent years, the intersection of sustainability and AI has garnered significant attention from businesses and researchers alike. As companies strive to meet sustainability criteria, they are turning to AI technologies to enhance these efforts. In this paper, we explore the results of a survey to assess companies’ perceptions of the risks and opportunities associated with integrating AI into their business and strategy. Understanding these dynamics is crucial, as the dual pressures of climate change and technological advancement necessitate a balanced approach to harnessing AI's potential while mitigating its inherent risks. This analysis aims to provide insights into the common themes and trends of how organizations are navigating the evolving landscape of sustainability in the age of AI based on this survey.
The flash survey was distributed to 2,500 companies that participate in the S&P Global Corporate Sustainability Assessment (CSA). The survey aimed to gather insights into sustainability and AI across various industries.
The survey was designed to include both quantitative and qualitative questions, allowing respondents to provide open-ended feedback regarding their experiences and perspectives on sustainability-related risks and opportunities associated with AI. We collected more than 250 responses, representing a diverse cross-section of industries and geographies.
At a high level, nearly every company responding to the survey sees AI as a positive for sustainability efforts. However, more than two-thirds (69%) responded that AI presents risks to sustainability as well as opportunities. Interestingly, while respondents were fairly balanced about the level of risk and the level of opportunity AI presents for social and governance issues, they were much more bullish about AI’s opportunities for environmental issues: 54% of respondents said AI presents opportunities for AI compared to 34% who saw environmental risks in the technology.
Survey respondents highlighted AI’s environmental opportunities, including:
Resource optimization: AI can enhance resource management by optimizing energy use and improving efficiency in operations. This includes better monitoring of emissions and waste reduction strategies.
Sustainable product development: Respondents noted that AI could facilitate the development of sustainable products by analyzing data to identify eco-friendly materials and processes.
Predictive analytics: AI’s ability to analyze vast amounts of data can help organizations predict environmental impacts and improve decision-making regarding sustainability initiatives.
Survey respondents also pointed to the technology’s potential on social topics, such as:
Enhanced employee engagement: AI can improve employee productivity by automating mundane tasks, allowing personnel to focus on strategic initiatives that contribute to sustainability goals.
Inclusion and accessibility: AI applications can promote social inclusion by providing tailored solutions for diverse communities, enhancing access to information and resources.
Improved working conditions: By utilizing AI to manage high-risk tasks, organizations can enhance occupational safety and improve overall working conditions for employees.
Respondents also saw governance opportunities. For example:
Enhanced ESG risk assessment: AI can significantly improve the ability to assess environmental, social, and governance (ESG) risks, allowing for more comprehensive evaluations and better decision-making.
Improved compliance tracking: AI tools can assist companies in monitoring compliance with regulatory requirements, ensuring that sustainability practices align with legal standards.
Fraud detection and transparency: AI can enhance governance by providing tools for monitoring and detecting fraudulent activities, thereby increasing transparency and accountability within organizations.
On the flipside, survey respondents saw risks in AI. On the environmental front these include:
Energy consumption: Many respondents highlighted that AI technologies require significant computational power, which can lead to increased energy use and a higher carbon footprint. This is particularly concerning when AI systems are deployed in data centers reliant on fossil fuels.
E-waste: The rapid advancement of AI technologies can lead to increased electronic waste, as outdated systems are replaced more frequently to keep pace with technological advancements.
Resource overuse: There is a risk that the optimization capabilities of AI could lead to over-extraction of resources if not carefully managed, undermining sustainability efforts.
Respondents pointed to social risks arising from AI, such as:
Job displacement: Automation driven by AI may replace traditional roles, leading to unemployment and social instability. Respondents expressed concerns about the potential loss of jobs, particularly in sectors reliant on manual labor.
Algorithmic bias: AI systems can perpetuate existing biases if they are trained on flawed data. This can lead to unfair treatment of certain groups and erode public trust in AI applications.
Privacy concerns: The use of AI can raise significant privacy issues, particularly when handling sensitive personal data. Respondents noted the potential for data breaches and the misuse of information.
Survey respondents also saw potential governance risks related to AI, including:
Lack of transparency: Many organizations pointed out that AI decision-making processes can be opaque, making it difficult for stakeholders to understand how decisions are reached. This lack of transparency can lead to accountability issues.
Ethical concerns: Without proper governance frameworks, AI usage can lead to ethical dilemmas, including discrimination and unfair practices. This can damage a company’s reputation and stakeholder trust.
Regulatory compliance: The rapid pace of AI development presents challenges in ensuring compliance with evolving regulations, potentially exposing companies to legal risks.
While AI presents various risks across environmental, social, and governance dimensions, its potential to drive significant sustainability improvements is substantial. Organizations must implement robust frameworks to manage these risks effectively while leveraging the opportunities that AI offers.
This mix of opportunities and risks paints a complicated picture for AI development. According to recent research from S&P Global Sustainable1, energy demand at datacenters used to power AI workloads is set to more than double by 2029, and much of this new electricity will likely be provided by burning fossil fuels. That means the benefits described in survey responses, from energy efficiency to improved risk assessment, could be associated with more emissions. Navigating this complex impact on the effort to combat climate change, along with other challenges inherent to AI use such as algorithmic bias and ethical concerns, will be central to making AI a positive force for sustainability. We intend to periodically repeat this survey to monitor how thinking on this topic is evolving, and to track how companies are approaching both risks and opportunities.
The survey received a total of 256 responses from a diverse array of companies across various regions. Europe accounted for approximately 23% of the total responses, indicating strong engagement with sustainability and AI initiatives in this region. Latin America represented about 12% of the responses, highlighting its growing involvement in these areas.
Japan alone contributed nearly 16% of the total responses to the survey, and China represented about 10%. The wider Asia region, excluding China and Japan, accounted for about 23% of responses. North America comprised 8% of the respondents, while Oceania accounted for about 4%. The Middle East and Africa each contributed approximately 2% of the responses.
The survey received responses from a range of sectors, reflecting diverse perspectives on sustainability and AI. The largest group of respondents came from the industrials sector, comprising approximately 20% of the total responses. This was closely followed by the financials sector, which accounted for about 15% of the responses.
Information technology made up 14%, while consumer staples and materials sectors each represented 9% of respondents.
Respondents to the survey described a variety of ways that AI can contribute to their environmental performance, risk assessment and regulatory compliance processes. Many companies that responded also sounded notes of caution, however, pointing to AI’s energy consumption, the risk of inherent bias in AI-generated results and issues around data privacy. We summarize respondent feedback below:
This content may be AI-assisted and is composed, reviewed, edited, and approved by S&P Global.
