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Kyndryl, Microsoft Find Only 32% of Organisations in Southeast Asia Leverage Innovations to Achieve Sustainability Goals
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Kyndryl, the world’s largest IT infrastructure services provider, in collaboration with Microsoft, released the findings of “The Global Sustainability Barometer” study. The study, conducted by Ecosystm, finds that while 85% of organisations globally place a high strategic level of importance on achieving their sustainability goals, only 16% have integrated sustainability into their strategies and data.

As the world faces an increase in climate-related events and challenges, there is an urgency among businesses to act now using technology to drive sustainable solutions. While 80% of organisations surveyed see great significance in technology’s role to achieve their goals, only 37% believe they are making full use of it in their organisations.

Kyndryl

In Southeast Asia, the alignment to the organisation’s net-zero goals continues to be the main driver of their sustainability efforts. However, only half (51%) are leveraging Artificial Intelligence (AI) or automation to improve efficiency, reduce environmental impact, and build sustainable operations.

“In Southeast Asia, many companies are at different stages of sustainability maturity, yet the potential to leverage technology for data management, reporting, and driving sustainability innovations remains significant,” said Andrew Lim, Managing Director, ASEAN, at Kyndryl. “Half of these organisations are entrusting the oversight of sustainability functions to their CEOs and Boards, indicating a growing recognition of sustainability’s strategic importance.”

He added: “Additionally, Operations is also taking the lead in championing sustainability trends. These strategic shifts signify that companies are thinking beyond regulatory compliance and are looking for support on how they can pragmatically execute and advance their sustainability goals with the right innovative solutions.”

“Technology has emerged as a key enabler to sustainability success, and its role will only continue to grow with the advent of more sophisticated AI tools,” said Shelly Blackburn, Vice President, Cross Solutions Area, at Microsoft. “We are eager to help drive meaningful change and contribute to a more sustainable future in collaboration with Kyndryl.”

What Kyndryl and Microsoft Found Out

Key highlights of the survey include:

  • While CEOs and the operations teams have made sustainability and digital transformation a priority, they need help with integration and execution of their programs to meet their goals.
  • 51% of organisations surveyed in Southeast Asia use AI to monitor energy use, but only 32% leverage innovations to achieve sustainability goals.
  • Among stakeholders, customers are the most vocal in advocating for sustainability policies and practices, followed by employees, investors , and supply chain partners.

Drivers to Building a More Sustainable Organisation

Below are sustainability best practices for driving growth and improving business outcomes:

  • Make sustainability a CEO and Operations priority aligned with finance, technology and other business units within an organisation. At the same time, only 16% of organisations in Southeast Asia have a dedicated sustainability lead. By prioritising the appointment of a dedicated sustainability lead, organisations can adopt a more focused approach to addressing environmental and social concerns.
  • Align sustainability with technology modernisation. Of the respondents surveyed in Southeast Asia, only 39% have adopted new technologies to achieve sustainability goals in operations and supply chains. Organisations that choose to utilise automation and innovative solutions can enhance, modernize, and prioritise sustainability processes and infrastructures to improve efficiencies and further reduce their carbon footprint.
  • Build an integrated data foundation. Streamline data management for informed decision-making and successful execution of strategies. A mere 15% of organisations globally have the capability to provide their employees with real-time sustainability dashboards.
  • Unleash AI for predictive sustainability. Expand the use of AI beyond reporting to include predictive analytics that assess Scope 3 risks, forecast energy consumption, and anticipate potential risks such as natural disasters. In Southeast Asia, approximately only a third of organizations have considered these options.
  • Empower employees. The study found that 53% of organisations surveyed in Southeast Asia lack dedicated resources or limited internal expertise, which outlines the need for additional workforce development. This indicates a gap in workforce capabilities and suggests a need for organizations to invest in training and development so that they can tackle challenges and achieve their objectives effectively.

“Faced with record-breaking temperatures and unparalleled climate-related events, this is a moment that calls for collective action from governments, industries, enterprises and individuals alike,” said Ullrich Loeffler, Co-Founder of and CEO at Ecosystm. “Together with Kyndryl and Microsoft, we are honored to make this study available to forward-thinking organisations everywhere to outline steps they can take today to drive measurable sustainability impact.”

Find Out More

The Global Sustainability Barometer study, conducted by Ecosystm in collaboration with Kyndryl and Microsoft, was conducted among 1,523 technology and sustainability business leaders across 16 countries in Asia, EMEA, and the Americas.

The survey took place between September and October 2023. The survey was conducted across nine industries and included small to medium as well as global companies. Learn more about the study, “From Vision to Impact: The Global Sustainability Barometer.”

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