The latest study released by Kyndryl (NYSE: KD), the world’s largest IT infrastructure services provider, in collaboration with Microsoft, has revealed key insights about sustainability efforts in the Philippines.
The second edition of the Global Sustainability Barometer, conducted by Ecosystm, underscores the increasing importance of sustainability within the country’s organizations, yet highlights the challenges that many still face in incorporating sustainable practices into their business strategies.
According to the research, sustainability has become a strategic priority for 70% of organizations in the Philippines. However, the path to achieving sustainability goals is far from smooth.
Almost half (48%) of businesses reported slowdowns in their sustainability efforts in 2024, and only 15% of employees consider sustainability performance a strategic priority within their organizations.
Kyndryl study cites vital role of AI as key enabler for sustainability
The study highlights a paradox where, despite the recognition of sustainability as a critical factor for success, integrating it into business operations remains a struggle. This is especially evident in the realm of artificial intelligence (AI), which is seen as a key enabler for sustainability.
While 71% of organizations recognize AI’s effectiveness in supporting sustainability initiatives, only a small fraction — 7% —take into account the environmental impact of AI itself. Alarmingly, 67% of businesses admitted to neglecting AI’s environmental footprint altogether.
“Sustainability is no longer just a goal—it’s a necessity,” said Deon Del Mundo, Managing Director of Kyndryl Philippines. “While many organizations recognize its importance, incorporating sustainability into business strategies remains a challenge. Technology, including AI, offers immense potential, but its full benefits won’t be realized unless we focus on making it more integrated and accessible.”
Key areas for improvement according to the Kyndryl study
The research underscores several areas where organizations in the Philippines can improve their sustainability efforts and AI integration:
1. Net Zero Commitments and Sustainable Practices
In the Philippines, several organizations have already launched environmental initiatives aimed at reducing their carbon footprint. According to Kyndryl, the top three strategies being adopted are net-zero commitments, carbon offsetting, and sustainable transportation. Despite these efforts, some organizations have seen a decline in their commitment to these initiatives since 2023, when renewable energy adoption and environmental reporting were embraced by over 60% of businesses.
2. Employee Awareness and Education
One significant gap identified in the study is employee awareness. Less than half (45%) of employees in the Philippines demonstrate even a basic understanding of sustainability practices, underscoring the need for greater education and engagement at the grassroots level to foster a culture of sustainability within organizations.
3. Data Integration Challenges
More than half of the survey respondents in the Kyndryl study highlighted data integration as a key challenge in AI adoption for sustainability. Issues like difficulties in coordinating data across systems and departments, along with limited accessibility, hinder the seamless implementation of AI-powered sustainability initiatives. To overcome these hurdles, businesses need to invest in better data flow mechanisms, allowing for faster decision-making, greater transparency, and more accurate, real-time insights.
4. AI for Climate Risk Mitigation
The study also emphasized the importance of AI-powered scenario planning, which can allow organizations to adopt a more comprehensive approach to environmental responsibility. By leveraging AI for climate risk mitigation, Kyndryl believes businesses can better prepare for future environmental challenges and make more informed decisions that align with their sustainability goals.
5. AI and Operational Efficiencies
Matthew Sekol, Sustainability Global Black Belt at Microsoft, noted that organizations can optimize their sustainability efforts by integrating sustainability data with operational and financial data, and utilizing AI tools to enhance operational efficiencies. By combining traditional data analytics with advanced AI, businesses can foster sustainable innovations and meet their long-term environmental commitments.
A call for a holistic approach
Ecosystm‘s Ullrich Loeffler, CEO & co-founder (right) with Amit Gupta, founder and chairman
Ullrich Loeffler, CEO & Co-Founder of Ecosystm, pointed out that sustainability is becoming a strategic priority across ASEAN, especially among large corporations. “AI is becoming a key enabler, helping businesses optimize resource use, minimize waste, and drive meaningful environmental impact,” Loeffler said.
“This momentum is set to expand across ASEAN as companies work toward building more sustainable supply chains,” he added.
The Kyndryl study, which surveyed 1,355 global sustainability leaders from 20 countries across nine industry sectors, provides a comprehensive look at the intersection of technology, data, and AI in achieving sustainability goals.
It reveals that while the potential for AI to accelerate sustainability is immense, there is still much work to be done in making these technologies more integrated, accessible, and accountable in the context of environmental responsibility.
The Global Sustainability Barometer emphasizes that while Philippine organizations are making strides toward sustainability, significant challenges remain — particularly in integrating AI and ensuring that its environmental impact is considered.
As AI continues to play an increasing role in business strategies, organizations must adopt a more holistic and responsible approach to harness its full potential without compromising their environmental obligations. To learn more about the study, visit “From Insights to Action: The Technology Impact on Sustainability.”
About the Study
The second edition of the Global Sustainability Barometer study, commissioned by Kyndryl and Microsoft and conducted by Ecosystm, reflects the views of 1,355 global sustainability leaders spanning 20 countries and nine industries.
Conducted between August and September 2024, the study provides insights into how strategy, data, and AI can drive organizations toward their sustainability goals.