How generative AI can accelerate value-led sustainability  

For too long, sustainability has been viewed as mere regulatory compliance and an operational burden. Yet climate change affects everyone — from the heat wave in 2023 to recent typhoons that battered much of East Asia — impacting individuals and businesses and tearing down infrastructure. There is a need to recognize that a better approach to how companies view the relationship between business and sustainability is necessary.

By integrating sustainability into the core business strategy, companies can create economic value in a way that also leads to positive impacts on people, society and the environment — a concept known as value-led sustainability.

Fundamentally, value-led sustainability is the integration of sustainability into the core values and operations of an organization. Hence, sustainability is not an add-on or a compliance requirement but a fundamental aspect of the organization’s strategy, decision-making and culture. This approach prioritizes long-term environmental, social and economic health over short-term gains.

Artificial intelligence (AI) as a catalyst for value-led sustainability 

Today, AI and generative AI (GenAI) are being used or considered by companies to help enhance business performance — from operations, administration and customer experience to risk management and strategy. Can the same technology be used to drive sustainability for businesses? 

Indeed, there’s a strong indication that GenAI can exponentially amplify value-led sustainability. Transcending the capabilities of traditional AI, GenAI goes beyond analyzing data and has the unique ability to learn from multimodal data sources, integrating visual, textual and sensor data. There is therefore potential to harness GenAI for sustainability solutions that were previously inconceivable.

Some may argue that the use of GenAI contributes to the carbon footprint, given the energy needed to power the large language models and data centers required for GenAI to function. To address this, governments are working to align AI development and deployment with sustainability practices, such as utilizing renewable energy sources to power AI infrastructure. 

The impact of GenAI on enhancing supply chain management, decarbonization and sustainability reports can reap immense benefits. In supply chain management, companies can leverage GenAI to drive sustainable sourcing. By analyzing vast data sets, including location, price and performance metrics, GenAI can identify suppliers that adhere to sustainable practices and continuously evaluate supplier performance based on sustainability metrics. In GenAI-driven supplier contract management, standard contracts can be automated for efficiency, while more complex agreements can be crafted with a combination of AI-driven insights and human expertise, thereby enhancing productivity and reducing emissions.