22 Corporate Sustainability & Ethics


AI in the workspace: for the greener good


Could AI be the key to long-term sustainable business processes? Let’s find out. Words: Lottie O’Connor


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One small step for sustainability “AI-powered systems can efficiently manage heating, ventilation and air conditioning,” explains Matt Aird, chief technology officer of LED sign company Custom Neon. “Tese systems can modify settings for optimal energy use without sacrificing comfort by evaluating real-time data on occupancy levels, weather and even a building’s thermal properties.” Here, the data analysis element


is key. “One of [AI’s] primary applications lies in predictive analytics, where AI algorithms analyse vast amounts of data to forecast energy usage patterns and optimise consumption,” explains Andrea Maria Cosentino, founder of fintech consulting and venture capital firm, Impact Fundry. “By understanding when and where energy is needed most, businesses can adjust their usages accordingly, reducing waste and carbon emissions.”


SUSTAINABLE BUSINESS ON NETWORKED CONNECTIONS/GETTY


In recent years, many of us may have come to associate Artificial Intelligence (AI) with language- processing chatbots such as ChatGPT, or perhaps have read worrying headlines suggesting that AI could render entire industries obsolete. But look beyond this and


you’ll find a myriad of companies using AI to fight climate change: creating sustainable, energy- efficient processes and changing the way we work for the better. “With volatile energy prices


being driven by factors well out of a company’s control, steps to reduce


that reliance on the international price of gas are increasingly being viewed as a welcome and needed investment,” explains Durgan Cooper, chief operation officer at smart building architects, Juberi. But how can we utilise AI for the greener good?


ESG: an illusion of change Differentiating between ESG and sustainability


Creative communications consul- tancy Radley Yeldar (RY) has recently released ‘ESG: an Illusion of Change’, a report that aims to distinguish between


sustainability and ESG


— and what that means for businesses. Te report looks at how ESG has


become part of the daily lexicon of business and has been used inter- changeably with sustainability. Differentiating between the two may seem like a matter of semantics, but the distinction is crucial, says RY. Te company believes that if the distinc- tion is unmade, it could derail ESG and thwart real progress on sustainability. For


businesses, concerns how they


caused ESG to become twisted out of shape, and what was originally a tool used to inform investors about a business’s resilience to sustaina- bility-related risks is now used to indicate where a business sits on its sustainability pathway. Herein lies the problem, says RY, as meas- uring sustainability using ESG-re- lated metrics can create an illusion of change, allowing businesses to lay claim to progress that doesn’t exist. When companies report their


sustainability can operate


within the Earth’s ‘safe’ environ- mental and social limits. ESG, however, is a subset of sustainability, focusing on the impact of sustain- ability issues on the company. RY believes the surge in popularity has


ESG-related metrics they show incremental progress on perfor- mance, like decreasing carbon emis- sions. RY says that that alone cannot measure real progress towards sustainability, and celebrating piecemeal changes merely validates the status quo, rather than spurring transformational change. Te company feels that while ESG ratings and indices have also surged


Seeing the future In addition to this, companies can further reduce their carbon footprint by integrating AI with renewable energy sources such as solar panels and wind turbines. “AI is very effective for the predictive maintenance of equipment,” says Matt. “By assessing sensor data and predicting when equipment may need maintenance, AI can help to reduce energy loss brought on by inefficient, broken or simply just overworked machinery.”


What’s the downside? While there are significant benefits to integrating green AI solutions into businesses, an uptake of


No commercial building on the planet is truly ‘smart’ yet, but within a decade it will be the norm. Companies that set that process in motion now will ultimately feel the benefits sooner


new technologies can often be obstructed by misinformation or concerns about investment costs. “I wouldn’t blame businesses


that perceive AI as overly complex or view it as a futuristic technology with limited practical applications,” explains Andrea. “But educating key stakeholders is central to enabling a more widespread uptake.”


Changing attitudes Despite this doubt, businesses seem to be more open to hearing about possible AI solutions. “Huge international corporations


understand the benefits and the risks of not acting more than most, but attitudes are rapidly changing,” says Durgan. “No commercial building on the planet is truly ‘smart’ yet, but within a decade it will be the norm. Companies that set that process in motion now will ultimately feel the benefits sooner — in terms of both financial and improved public perception.”


in popularity, these too can create a mirage of sustainable progress, often based on the quantity of disclo- sures, rather than actual sustain- ability performance.


It also says


that while rating agencies remain unregulated and lack transparency, comparison is impossible, as one rating’s leader might be another’s average performer. According to RY, ESG itself


isn’t necessarily a lost cause, if considered in the spirit in which it was originally intended. It says that reporting ESG-related metrics creates accountability and offers valuable insights to investors,


but heightened disclosure must not come at the expense of mean- ingful action. RY believes it’s crucial to stop


conflating ESG with sustaina- bility and that organisations should start measuring


(and reducing) their impact in the context of


environmental and social thresholds (and the planetary boundaries). Read RY’s publication, ‘ESG: an


Illusion of Change’, for its sugges- tions on how to get the balance right.


Radley Yeldar can help you differentiate between ESG and sustainability,


conduct a Double Materiality assessment, drive lasting change and report more meaningfully. Drop them a line: E: hello@ry.com


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