AI's Role in Sustainability Takes Center Stage

C-Suite Underscores The Crucial Role AI plays In Advancing Sustainability; C-Suite Urged to Boost AI Skills for Future Readiness

Author

Emeka Ogbonnaya
September 02, 2024

Welcome to another edition of the Centre for Sustainable Intelligence newsletter.

This is where I try to explore the intersection of artificial intelligence and environmental sustainability. My mission is to share my observations across these core themes: AI for Good, Ethical AI, Sustainable AI and AI in Sustainability. I hope to inform, inspire and engage readers interested in the potential of AI to drive positive change for both people and the planet.

Here’s what’s in stock for you today:

  • News Bite: Renewable energy stocks sending mixed messages.

  • Deep Dive: AI's Role in Sustainability Takes Center Stage.

  • Tech Trend: C-Suite Urged to Boost AI Skills for Future Readiness

But before all of these, here’s my autumn welcome message.

Welcome to Autumn

Welcome to September and the start of autumn! I’m grateful for your ongoing support and readership. We've been busy behind the scenes to bring you content that’s both relevant and valuable. Recently, we introduced an Audio newsletter for easy listening on the go.

This autumn, we have exciting content lined up, inspired by your feedback, and we’re even exploring a potential virtual event—more details to come! I’m thrilled to announce two new features: a Premium Subscription with exclusive resources and ad-free experience, and an opportunity for businesses to advertise in the newsletter, connecting you with innovative sustainability solutions. If you're interested in upgrading or advertising, please reach out via the email on our website.

As always, I welcome your questions and suggestions and look forward to future collaborations. Thank you!

Emeka

News: Renewable Energy Stocks Sending Mixed messages.

As August drew to an end, we noticed some unnerving movements in the stock market as it relates to renewable energy stocks. To put it simply, it wasn’t great at all for renewable energy stocks as consumer spending continues to struggle and EV competition heats up. For instance, Nikola (NKLA) fell 10%, Plug Power (PLUG) was down 13% and Li Auto fell 8% last week. These declines in renewable energy stocks could be short-term signal of consumer hesitation toward the electric vehicle (EV) sector, driven by economic concerns and market fluctuations.

However, this dip may not be a reflection of the long-term outlook. We believe the interest in transitioning to EVs remains strong as companies and consumers alike seek sustainable solutions. We believe once these immediate challenges—like interest rates and policy uncertainties are addressed, the path forward for EV adoption looks promising, aligning with global goals for a greener future. So without reading too much into it, we think the trend towards EV transition remains strong.

Deep Dive: AI's Role in Sustainability Takes Center Stage

The Centre for Sustainable Intelligence is founded on the recognition that AI plays a crucial role in advancing sustainability initiatives and achieving net-zero goals in business. This understanding is central to how AI influences business decisions. Capgemini recently underscored this in a report that explores the intersection of Sustainability and Artificial Intelligence, highlighting how these two forces are increasingly shaping corporate strategies and driving innovation. 

The report highlighted that businesses are increasingly assessing how these two domains align to drive long-term value. The report highlights that companies are recognising the dual importance of sustainable practices and advanced AI capabilities, viewing them not only as ethical imperatives but as competitive differentiators.

Key observations include:

  1. AI for Sustainability: Businesses are leveraging AI to enhance sustainability efforts, such as optimizing energy usage, reducing waste, and improving supply chain transparency. For instance, companies like Google have used AI to optimise their data centres, significantly reducing energy consumption.

  2. Vendor Assessment: The report notes that enterprises are becoming more rigorous in assessing vendors, ensuring they align with both sustainability goals and AI capabilities. This involves evaluating whether vendors are using AI responsibly, with a focus on transparency, fairness, and environmental impact.

  3. Case Studies: One example cited is Schneider Electric, which integrates AI to boost energy efficiency and sustainability in its operations and for clients. Another is Unilever, which uses AI-driven insights to reduce plastic waste in its packaging and optimize supply chain logistics to lower carbon emissions.

These findings underscore a growing trend where businesses see sustainability and AI as intertwined elements of their innovation strategies. They are moving beyond compliance and cost-saving measures to actively seeking vendors and technologies that can advance their sustainability agendas while harnessing AI's transformative potential.

This alignment not only enhances corporate reputation but also meets the rising consumer and regulatory demands for responsible business practices. The report suggests that companies that strategically integrate AI with sustainability are better positioned to thrive in a future where these factors are increasingly critical to success.

Tech Trend: C-Suite Urged to Boost AI Skills for Future Readiness.

The AI craze isn't slowing down. It's everywhere, popping up in every conversation. Big decisions are being made by people caught up in the hype, but many lack deep knowledge of the tech. To really harness AI’s power for solving business and environmental challenges, we need to boost AI skills at the board level. An AI savvy C-suite could be a game changer for businesses, and some leaders are catching on.

A Norway's wealth fund is pushing for more AI understanding among executives to navigate this shift effectively. What’s happening with AI training in your organisation?

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That’s all I have for you in this edition of Centre for Sustainable Intelligence.

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Emeka Ogbonnaya

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