Kyndryl’s second annual Global Sustainability Barometer, commissioned by Microsoft, highlights a significant disparity between organizations’ sustainability goals and their implementation.

Although 84% of organizations prioritize sustainability, only 21% are effectively using technology to reduce their environmental impact. The study also reveals progress, with 38% of organizations improving their sustainability objectives and execution compared to last year.

However, challenges persist. While 54% of businesses incorporate sustainability into their reporting processes, only 19% fully leverage data for strategic planning and decision-making.

Faith Taylor, Kyndryl’s Chief Corporate Citizenship and Sustainability Officer, stated,  “By integrating sustainability into a company’s business strategy, processes and systems, organizations can maximize the value of their people and technology to achieve internal goals and deliver positive impact.”

While AI’s role in sustainability is expanding, concerns about its environmental impact remain. Currently, only 35% of organizations consider the energy demands of their AI solutions, highlighting the need for a more comprehensive approach.

The findings highlight the urgency for businesses to harness technology effectively, encourage collaboration, and embed sustainability into strategic planning to drive meaningful progress.

The report identifies key strategies for advancing sustainability, including the integration of technology—an area where only 38% of organizations utilize IT to reduce environmental impact, and just 17% employ data to achieve sustainability targets.

Optimizing data utilization is essential, yet only 15% of organizations integrate data for business transformation. Addressing fragmented systems can improve decision-making and provide valuable environmental insights.

Promoting cross-functional collaboration is equally crucial. With 49% of organizations identifying Chief Sustainability Officers and dedicated teams as key stakeholders, engaging finance and technology departments can help position sustainability as a core business priority.

“By embracing innovative technologies and sustainable practices, they are not only addressing global challenges like climate change but also setting new benchmarks for resilience and inclusivity,”  he said.