AI Unlocks Financial Gains and Boosts Decarbonization Efforts, BCG Survey Shows

A new survey by Boston Consulting Group (BCG) highlights that more than half of companies globally are leveraging artificial intelligence (AI) to make significant strides in their decarbonization efforts. According to the report, AI has become an essential tool for improving emissions measurement, reporting, and sustainability planning, while also generating notable financial benefits for businesses engaged in reducing their carbon footprints.

Despite the availability of advanced AI tools, the survey found that corporate progress in decarbonization has stalled over the past year. Only 9% of respondents reported comprehensive emissions reporting across Scopes 1, 2, and 3, and just 16% have set targets to reduce emissions in all scopes. These figures show a slight decline from the previous year, signaling a slowdown in sustainability efforts.

However, companies using AI in their sustainability initiatives are seeing measurable financial advantages. More than two-thirds of those surveyed reported that their decarbonization efforts resulted in annual benefits worth at least 3% of sales. A quarter of these companies indicated benefits exceeding 7% of sales, with cost savings from enhanced efficiency, waste reduction, and the use of renewable energy among the key drivers.

The survey found that companies utilizing AI for emissions reduction were 4.5 times more likely to report substantial financial gains. Other factors contributing to these benefits include product-level emissions calculations, climate transition planning, and comprehensive emissions reporting.

BCG’s Hubertus Meinecke noted the wide range of advantages that companies experience from decarbonization efforts, including enhanced reputations and operational efficiencies. Meanwhile, Diana Dimitrova, another coauthor of the report, emphasized that businesses must adopt foundational actions like accurate measurement and reporting to unlock the full potential of AI in driving both financial performance and sustainability.

While companies recognize AI’s transformative potential, challenges remain. High implementation costs and a lack of skilled talent are key barriers to broader adoption. Nevertheless, experts like Charlotte Degot, CEO of CO2 AI, urge businesses to embrace AI-driven solutions to help meet climate targets and secure long-term business benefits.