AI for business decarbonisation
As climate change concerns intensify, companies around the world are recognising the connection between environmental responsibility and financial success. A recent report by Boston Consulting Group (BCG) and CO2 AI reveals that businesses using artificial intelligence (AI) to drive decarbonisation are seeing significant gains. On average, these innovative companies are enjoying $200 million in annual decarbonisation benefits.
However, the report also highlights a worrying trend, Only 9% of companies surveyed are fully reporting emissions across Scopes 1, 2, and 3. Just 11% have successfully met their emissions reduction targets. Many organisations are missing out on the full potential of decarbonisation, leaving significant gaps in addressing their environmental impact.
AI: A Key to Climate and Financial Success
For infrastructure companies looking to reduce their carbon footprint, AI is emerging as a game-changer. According to BCG, companies using AI for sustainability are 4.5 times more likely to achieve both financial and environmental success. This shows the vital role AI can play in improving economic performance and decarbonisation.
AI can optimise key decarbonisation activities, such as emission tracking, energy efficiency improvements, and the transition to renewable energy sources. These innovations not only cut operational costs but also help businesses capture significant value from their sustainability efforts.
The CEO of CO2 AI explains, “AI has the potential to empower businesses to reduce emissions and achieve climate goals.” By simplifying complex processes, AI helps companies measure, manage, and reduce their carbon output. This transforms environmental action into a financial opportunity.
Emerging Leaders in Decarbonisation
While many countries are falling behind in their emissions reporting and reduction strategies, Brazil, India, and China are emerging as global leaders. These nations have made great progress in setting and achieving emissions reduction targets.
By prioritising emissions reporting and setting bold reduction goals, businesses in these countries are setting a powerful example. Their leadership shows the crucial role both the private and public sectors play in tackling climate change while ensuring long-term economic growth.
The Financial Rewards of Sustainability
The financial gains of decarbonisation go beyond just cost savings. Companies leading the way in sustainability report impressive results from their green initiatives. On average, they are seeing $200 million in annual net benefits. These savings come from improved operational efficiency, lower energy costs, and better resource use.
Despite this, many companies are still hesitant to fully commit to decarbonisation. The BCG report notes a general slowdown in corporate climate action over the past year. This reluctance is a missed opportunity, as companies that focus on key climate actions—such as emissions measurement, reporting, and target setting—are more likely to unlock major financial and environmental rewards.
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