Insights

Thinking Ahead with global leaders: Exploring key trends in sustainable business transformation

Exploring the key trends in sustainable business transformation across various organizations from our conversation with global leaders. UST Thinking Ahead.

Style

Post-info

Businesses face mounting pressure to reduce environmental impact and foster ethical practices to maintain relevance in a rapidly changing world. A transformation is underway as organizations integrate sustainability principles in addressing climate action and global challenges.

In the latest edition of our Thinking Ahead series, we engage with global leaders and industry experts to gain a deeper understanding of this transformation journey and explore the obstacles and opportunities in the path to sustainability.

Our discussions highlight the crucial role of technology, particularly AI, in shaping enterprises' sustainability journeys. According to a UST survey on sustainable business transformation, 82% of respondents believe that AI is as essential to organizations as their broader IT and data analytics capabilities and is a driving force for sustainable transformation.

Let's look into the major trends in sustainable transformation that emerge from the collected perspectives of industry thought leaders.

 DIVIDER

Trends at a glance

AI is driving sustainability initiatives, increasing recognition
Data-driven insights are crucial for sustainability decision-makers
Convergence of advanced technology and sustainable business practices are driving innovation
Adopting an integrated approach is critical to implementing sustainability efforts
Enterprise leaders and stakeholders are driving the change
Organizations are prioritizing developing adequate AI talent
Leaders are focused on environmental impact of technology

You can read the full Thinking Ahead report here.

 DIVIDER

AI for sustainability

AI/ML algorithms are pivotal in minimizing fuel consumption through route optimization and recommending greener options for product manufacturing.

Ensuring a shared understanding across all organizational functions is imperative when leveraging AI for sustainability. Andy McMahon, head of MLOps at NatWest Group, underscores the importance of democratizing AI capabilities to make them accessible, available, and understandable across the organization. This fosters collaboration between technology and business teams, establishing unanimous support and a collective vision of positive, tech-driven change.

In line with this, some technology trends that further democratize AI solutions:

Cloud-based AI: Enables cost-effective sustainability for all businesses
Low-code/no-code platforms: Empowers anyone to create AI solutions for sustainability
Open-source tools: Facilitate collaborative, sustainable innovation.

 DIVIDER

Significance of data and analytics

Effective data utilization is critical to sustainable business solutions. According to William "Bill" H Miller, former SVP, NetApp, CIO of Two Oceans Insights LLC, and UST Advisor, AI's reliance on vast datasets underscores the importance of data in shaping business decisions. At the same time, data analytics is essential in sustainably driving companies into the future.

Similarly, Jon Clay, Data Director at Solera, Inc., emphasizes that data and analytics are indispensable in fostering sustainable transformation initiatives. Data-driven insights will be essential in making environmentally conscious decisions regarding emissions. He also touches upon the need to utilize data to establish performance benchmarks and develop quantitative metrics for monitoring progress, which enable organizations to adjust their sustainable transformation priorities.

AI analytics helps identify patterns and anomalies that can present opportunities for sustainability improvements. These insights can optimize resource allocation and decision-making processes to maximize sustainability outcomes, analyze individual behavior patterns and preferences to personalize sustainability initiatives, and encourage behavior change.

 DIVIDER

A holistic and integrated approach to sustainability

Businesses realize the need to view sustainability holistically, recognizing the interconnected nature of environmental, social, and economic factors. Understanding this blend is crucial for long-term business success and resilience. As for supply chains, organizations are establishing transparent and traceable end-to-end models, practicing ethical sourcing, and embracing circular economy principles such as "product as a service" to extend product life cycles in reducing environmental impact.

 DIVIDER

Leadership and stakeholder involvement

The UST survey reveals wide-scale leadership support in driving sustainability. 93% of organizations are confident in their executive leadership commitment to leading sustainable transformation initiatives, with 76% indicating their CEO/president is directly involved.

Organizational leadership can be pivotal in stewarding sustainable transformation, especially for CIOs. Bill Miller, CIO of Two Oceans Insights LLC, says CIOs are uniquely positioned to facilitate AI adoption and governance within organizations, leveraging their technology expertise and cross-functional relationships.

Along the same lines, Karenann Terrell, former CIO of Walmart, CDTO, GSK, and UST advisor, thinks that the CIO's role is evolving regarding change management. Formerly focused on overseeing data platform creation and security measures, CIOs are now tasked with more strategic data management with a federated approach wherein data knowledge is dispersed across the organization, reflecting a more collaborative and inclusive leadership paradigm.

 DIVIDER

Technological innovations driving sustainability

Convergence of advanced technologies and sustainable business practices is essential. The survey informs that 57% foster innovation through sustainability goals in mission and values, and 54% utilize technology to drive sustainable practices.

Some examples of innovations in sustainability initiatives include:

IT networks, sensor networks, and IoT can enable more connectivity across diverse data sources, systems, and assets, enhancing visibility in supply chains with real-time monitoring of material flows, emissions, and resource usage. This allows interventions like energy usage, resource consumption, waste reduction, or preventive maintenance.
Blockchain enhances transparency and traceability in supply chains, enabling businesses to track the origin and journey of products from raw materials to end consumers. This helps ensure ethical sourcing, fair labor practices, and environmental sustainability.
3D printing/additive manufacturing can reduce material waste using the right amount of raw material. It can also enable on-demand production to minimize inventory and transportation emissions and facilitate the design of lighter and more efficient products.
Biomimicry draws inspiration from nature's efficient structures and processes to create more sustainable product designs that help reduce material use and energy consumption.

 DIVIDER

Training and upskilling programs

With AI promising to be a significant transformative catalyst for sustainability efforts, organizations prioritize the proper training to build and develop adequate AI talent. More than 99% are considering or planning to implement AI-focused training, with 68% adopting or considering on-the-job training for AI use, as per the UST survey.

DIVIDER

Rise of Green AI

However, a glaring irony lies in traditional IT infrastructures, including AI data centers with a significantly high carbon footprint and heavy energy consumption. The rise of concepts such as Green AI addresses this problem by focusing on innovations in carbon-reduction solutions. Green AI leverages AI practices to enable sustainable development and reduce the environmental impact of various traditional AI technologies, optimizing resource usage, waste management, and embracing renewable energy sources. Business leaders advocate Green AI as a promising avenue for tech-driven sustainable change.

 DIVIDER

Future outlook

Nearly all organizations expect the role of AI in advancing sustainability initiatives to grow over the next five years, with 70% believing AI would help predict and mitigate sustainability risks.

Maneet Singh, Odyssey Logistics' CIO, believes AI will transform how we meet sustainability goals in the coming years. We can expect an exponential boost in insight and optimization, which can significantly benefit the supply chain. However, leaders should prepare to harness potential benefits with careful planning and implementation to keep up with the dynamic pace.

When harnessing AI's future potential, most business leaders echoed the need to develop the right culture around AI in the enterprise, which is paramount for effective integration. As Kat Terrell mentions, fostering a culture of innovation around AI within organizations and the critical role of adoption in preparing the workforce for AI will define the speed and success of embracing AI.

You can read the full Thinking Ahead report here.

Accelerate your path to sustainability with the transformative power of AI. Learn more with UST Alpha AI.