69% Indian organisations say GenAI will help in sustainability goals: Study

36% believe costs for sustainability initiatives outweigh the benefits, says Capgemini Research Institute survey

A growing number of companies acknowledge the benefits of incorporating sustainable business practices, according to a new report by the Capgemini Research Institute.

Organisations believe digital technology, particularly generative AI (GenAI), will help them in achieving their sustainability goals, said the report titled ‘A World in Balance 2023’.

As many as 69 per cent of Indian organisations believe GenAI will play a key role in their sustainability transformation efforts compared to 59 per cent globally.

GenAI's ability to analyse large volumes of data is transforming ESG (environmental, social, governance) strategies, enabling accurate insights for sustainability decisions. GenAI can help reduce the consumption of natural resources by making processes leaner and by reducing waste. For example, GenAI algorithms can be used to optimise buildings, infrastructure, and the design of products.

 

As many as 77 per cent of Indian organisations said their boards of directors are engaged in sustainability strategy compared to 59 per cent globally. The percentage of respondents in India who said that they are clear about the business case for sustainability increased to 53 per cent this year compared to 23 per cent in 2022. In comparison, globally it has increased to 63 per cent from 21 per cent in 2022.

As many as 36 per cent of Indian respondents believe the costs for sustainability initiatives outweigh the benefits compared to 24 per cent globally. The percentage of Indian respondents that see sustainability initiatives as a financial burden has decreased from 49 per cent in 2022 to 34 per cent in 2023. Whereas respondents globally have decreased from 53 per cent in 2022 to 22 per cent in 2023.

“The consequences of climate change are becoming impossible to ignore, and so is the future cost of not taking action,” said Cyril Garcia, head of Global Sustainability Services and Corporate Responsibility and Group Executive Board Member.

“What we really need to see in the months to come is companies investing in future-proof sustainability measures and pivoting their business models to build sustainable products and services. It’s now or never for organizations: only those who will have invested early enough and put sustainability at the centre of their strategy will be able to truly realize the benefits,” said Garcia.

The Capgemini Research Institute conducted a survey of 2,151 executives at 718 organisations each of which had more than $1 billion in annual revenue in 13 countries including India. Executives surveyed were director level and above and 50 per cent were from corporate functions such as strategy, sustainability, sales and marketing while the rest were from value chain functions, such as product design, research and development, procurement, and logistics.