Kyndryl-Microsoft Study Shows Tech Sector’s Green Tech Gap

Technology companies face mounting pressure to reduce their environmental impact while simultaneously developing tools to help other sectors meet sustainability targets. Yet new research suggests the industry struggles to deploy its own innovations effectively.

A study released by Kyndryl – which manages IT infrastructure for enterprise clients across 60 countries – and Microsoft has revealed a significant gap between environmental ambitions and technological implementation as technology firms face scrutiny over the energy consumption of data centres and the environmental cost of hardware manufacturing.

The Global Sustainability Barometer study reveals that while 84% of organisations classify sustainability as strategically important, just one-fifth use technology to reduce environmental impact or shape sustainability strategy. The findings emerge from a survey of 1,355 sustainability leaders across 20 countries and nine industry sectors.

Technology deployment stalls

The research shows progress in environmental commitments, with 38% of organisations expanding their sustainability programmes since 2023. However, the gap between intention and implementation remains significant.

Faith Taylor, Chief Corporate Citizenship and Sustainability Officer at Kyndryl, says: “As the world faces increasing climate-related challenges, businesses are under pressure to act decisively and place sustainability at the forefront – and this year's Global Sustainability Barometer study highlights that organisations must move from intent to collective action to drive change.

“By integrating sustainability into a company’s business strategy, processes and systems, organisations can maximise the value of their people and technology to achieve internal goals and deliver positive impact.”

Data integration challenges persist. While 54% of firms incorporate sustainability metrics into existing reporting structures, only 19% utilise this data for strategic planning. The research indicates fragmented data across enterprise systems prevents comprehensive analysis, with just 15% of organisations using environmental data to guide business transformation.

The study, conducted between August and September 2024 by technology research firm Ecosystm, identifies a disconnect between technology capabilities and deployment. While 38% of organisations use IT to reduce their environmental impact, only 17% report that data and technology assist in achieving sustainability goals.

AI adoption faces energy concerns

Artificial Intelligence adoption for sustainability presents a mixed picture. While 55% of organisations believe AI will affect their environmental goals, 62% limit its use to analysing historical data for monitoring and reporting purposes. Only 37% employ predictive AI capabilities to forecast energy requirements based on usage patterns.

The energy consumption of AI systems remains under-scrutinised, with 35% of firms considering the power requirements of their AI implementations. Kyndryl and Microsoft report they are developing strategies to help organisations measure baseline emissions and optimise AI architectures to minimise energy use.

Matthew Sekol, Sustainability Global Black Belt at Microsoft, says: “Companies can gain the insights needed to deliver on their commitments and drive resilience by integrating sustainability data with operational and financial data and using traditional data analytics and robust AI tooling to reshape operational efficiencies and foster sustainable innovations.”

Leadership structure evolves

The study indicates changes in sustainability governance. Chief Executive Officers continue to shape environmental goals, while Chief Sustainability Officers and dedicated teams now hold key stakeholder positions in 49% of organisations, up from 27% in 2023.

However, cross-functional integration remains limited. The research suggests organisations need to engage finance and technology teams to establish sustainability as a business priority and ensure implementation of environmental initiatives.

Ullrich Loeffler, CEO of research firm Ecosystm, which conducted the study, says: “As organisations increasingly recognise sustainability as a strategic imperative, we're witnessing a surge of innovation and collaboration. AI is at the forefront of this movement, empowering businesses to optimise resource consumption, reduce waste and drive positive environmental impact.

“By uniting our efforts and leveraging technology, we can create a more sustainable and equitable future for generations to come.”

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