Can AI Save the Planet? Exploring the Green Side of Artificial Intelligence

harshas2883
Jul 7
2 min read

Artificial Intelligence is no longer just powering search engines and smartphones—it’s now at the frontlines of fighting climate change. From carbon accounting to renewable energy optimisation, AI is transforming how we solve the world’s most pressing environmental challenges.

As the ESG movement gains momentum,

Organisations and governments are discovering the power of AI to track, predict, and act on sustainability data in real time. According to PwC, AI applications in environment and climate action could contribute up to $5.2 trillion to the global economy by 2030, while reducing global greenhouse gas emissions by up to 4%. This presents a win-win: economic growth with reduced environmental footprint.

Real-World Examples

- Microsoft’s Sustainability Cloud uses AI to measure carbon emissions, water usage, and waste generation across a company's operations.- Unilever applies AI algorithms to optimise energy and water consumption in over 300 manufacturing sites.- CarbonChain uses AI to assess the carbon footprint of commodities in supply chains, enabling real-time, sector-specific emissions tracking.- Google’s DeepMind AI reduced data centre cooling energy by 40%, saving millions in energy costs while slashing carbon output.

Why AI Matters for ESG

- ESG Reporting Automation: AI systems like Datamaran and Envizi help companies automate complex reporting aligned with global standards like GRI, TCFD, and the EU Taxonomy.- Climate Risk Modelling: AI-driven platforms simulate climate scenarios to help companies anticipate physical and transition risks.- Predictive Sustainability: AI can detect inefficiencies in energy use, forecast water scarcity, and suggest optimal waste reduction strategies.- Green Finance: AI is being used by investors to identify companies with real sustainability impact versus greenwashing.

Market Opportunity & Growth

The global market for AI in sustainability is projected to grow from $1.3 billion in 2023 to over $8.5 billion by 2030 (Allied Market Research). With ESG investments projected to surpass $50 trillion by 2025 (Bloomberg), AI’s role will be critical in driving transparency, performance, and accountability.

What You Can Do

- Sustainability Heads: Evaluate AI solutions tailored to your industry—manufacturing, finance, agriculture, or energy.- Students: Enrol in AI and Sustainability foundational courses to future-proof your career.- Business Leaders & Investors: Prioritise companies that leverage AI not just for efficiency but for long-term impact.