Artificial intelligence could be a game-changer for the world’s largest corporations, more than 80 per cent of which are lagging far behind their Net Zero targets. According to recent studies, AI tools can help companies decarbonise and put their Net Zero plans back on track by significantly cutting emissions within and across their operations. Yet, an analysis shows, that just 14 per cent of companies globally have used such technologies for cleaning up their businesses.
An Accenture study, Destination Net Zero, which studied the carbon reduction initiatives and emission data of the world’s 2,000 biggest companies reports that while 39 per cent of them are reducing emissions, they are not doing it fast enough to meet their targets. Another 45 per cent aren’t even moving in the right direction, says the report.
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The Accenture analysis reveals that AI can be an important accelerator for reducing emissions by helping companies decarbonise their operations across critical fronts like energy efficiency, adoption of renewables, fleet planning, construction, product development and material sourcing. Many of the companies in the study, said they were creating their ESG reports with AI tools such as the Specialised Language Model (SLM) developed by Accenture, which helps organisations assess their Net Zero journey and transform ESG reporting from being a compliance document to a strategic asset.
Driving Decarbonisation
The report revealed that progress towards full Net Zero target-setting has stalled at 37 per cent- just above the one-third mark for the Top 2000 companies. However, more than half (52 per cent) of these companies have successfully reduced both carbon emissions and emissions intensity since the 2016 Paris Agreement. These organisations are integrating decarbonisation into their core strategies and operations, improving the sustainability of their businesses across the board.
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Stephanie Jamison, Global Resources Industry Practice Lead and Global Sustainability Services Lead at Accenture, highlighted the trend, “A majority of the world’s largest companies are now cutting emissions even as their operations and revenues grow. While this is a significant milestone towards reaching Net Zero by 2050, all of us need to move faster together, to reinvent sustainable value chains using deep collaboration and transformative technologies.”
AI for Decarbonisation
A significant majority of corporate executives expressed optimism about AI’s potential to help reduce carbon emissions. The study found that a majority of C-suite leaders expect AI to decrease emissions in the short term and have a substantial impact on emissions in the long terms (10+ years).
To accelerate the transition to Net Zero, AI must be deployed strategically across all functional sectors within companies. However, the study revealed that while 63 per cent of companies are adopting AI, only 14 per cent are leveraging it for decarbonisation. High-value applications in this area include optimising renewable energy integration, enhancing resource efficiency and enabling unprecedented levels of emissions monitoring.
Further, research underscored a critical challenge: only 2 per cent companies globally have fully operational mechanisms for using AI responsibly. Such low rates may be owing to a general lack of readiness to adapt AI in a responsible and sustainable manner.
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The overall impact of AI on emissions will hinge on the effective deployment of these applications and efforts to minimise AI’s own energy footprint through responsible energy choices. Companies seeking to harness AI’s transformative power must prioritise energy efficiency, sustainable infrastructure and operational responsibility. By embedding sustainable principles—such as functionality, responsibility and frugality—into AI adoption, businesses can unlock significant decarbonisation potential. The study emphasises that responsible and deliberate actions are critical to maximising AI’s impact on achieving Net Zero goals.
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