The rise of digital technologies and AI has excited businesses and societies around the world, promising to unlock new gains in productivity and growth. But a rapid rollout of data centres and huge investments in energy-hungry infrastructure are raising sustainability concerns, especially the sector’s widening environmental footprint.
However, in our view, focusing solely on this near-term impact misses AI’s capacity to bring about long-term, positive outcomes across industries.
For businesses, cutting emissions, reducing waste and using energy, water and other resources more efficiently have become top priorities. Technology, especially AI, is changing the speed and scale of that effort in ways that would have seemed unthinkable just a few years ago.
The technology is already contributing to crucial societal, economic and environmental goals as those outlined by the UN Sustainable Development Goals (SDGs).https://www.sciencedirect.com/science/article/abs/pii/S0166497225001117
For example, the use of AI in the textile industry can optimise fabric cutting patterns and reduce raw material consumption; AI-optimised delivery routes for delivery vans help cut travel time and carbon emissions; and algorithm-powered diagnostic tool can detect cancer and other diseases earlier and more accurately, improving health outcomes.
A recent study led by the Stockholm Resilience Centre and the Potsdam Institute for Climate Impact Research also highlighted AI’s vast potential to accelerate progress in sustainability and governance. https://www.stockholmresilience.org/news--events/ai-for-a-planet-under-pressure.html
For example, the study says AI helps process and interpret vast and complex environmental data, predict climate outcomes and optimise response to everything from flood, air pollution and droughts to pandemic outbreaks.
More and more businesses are harnessing AI to cut their emissions, save energy and water and reduce waste. Tech companies are no exception, using AI to optimise data centre operations and develop energy-efficient chips.
AI-related products and services help businesses fast-track their
sustainable progress, creating a systemic positive impact across different industries – aligning closely with our Positive Change strategy which seeks out quality companies which actively improve their impact and benefit from the transition to a more sustainable economy.
As demand for their products grows across industries, financial markets should increasingly reward their ability to deliver long-term shareholder value.
Advancing digital transformation
Japan’s Fujitsu is a leading tech firm whose digital products and AI-driven services are designed to accelerate the sustainability transformation and achieve net positive impact.
It provides digital transformation services – where it helps organisations move to cloud-based, data-driven operations and
improve resource efficiency, circularity and reduce emissions. Fujitsu sells AI-solutions and platforms designed for enterprise use, and hardware such as IT servers and datastorage systems.
The firm is making bold moves in AI, having just signed a strategic
collaboration with Nvidia to accelerate AI development in Japan. The
rollout of its flagship platform Uvance is likely to accelerate the progress of digital transformation and sustainable innovation across industries in Japan, where it generates two-thirds of its revenues, capitalising on historical strength and deep relationships, as well
as overseas.
Under its net positive agenda, Fujitsu is not only helping its clients
improve sustainability but is also focused on delivering positive impact
itself. It has cut its supply chain emissions, also known as Scope 3, by over 35% in 2024 compared with 2020 levels, ahead of its goal of achieving net zero emissions across its global value chain by 2040.https://www.fujitsu.com/global/documents/about/ir/library/integratedrep/FinancialSection2025-02.pdf
Arista's product power consumption by generation
Source: Arista 2024 Corporate Responsibility Report
Switching to efficiency
AI-driven systems can radically improve how resources are managed, making energy use more efficient and reducing waste in critical sectors.
US-based Arista Networks is a leading provider of IT solutions. It is developing power-efficient hardware products – such as routers, switches, access points and software – for data centres and other networking environments, helping minimise the environmental footprint of AI’s underpinning infrastructure.
For example, Arista’s latest generation power supply hardware uses
up to 95% less power per 100gigabits/second bandwidth compared with prior models.https://www.arista.com/assets/data/pdf/Arista_CRR_2024.pdf
This efficiency improvement directly reduces operational energy usage and associated greenhouse gas emissions for data centres using Arista's products.
What’s more, the company is committed to responsible waste management, expanding its recycling and reuse initiatives. The volume of total recycled waste, that includes metal, packaging and e-waste doubled in the two years to 2024 to over 226,000 pounds.
Greening logistics
Leadership in the tech-driven sustainable transformation is not confined to the world’s largest or most established tech players.
In emerging markets, companies like JD Logistics are harnessing AI to strengthen supply chains and reduce their emissions. The Beijing-based company operates highly automated and energy efficient warehouses and offers smart routing, reduced packaging and integrated international and domestic freight services, while it also offers intelligent logistics technology software products.
JD’s efforts matter because logistics emissions, primarily from freight and warehousing, account for at least 7% of global greenhouse gas emissions.https://www.mckinsey.com/capabilities/operations/our-insights/decarbonizing-logistics-charting-the-path-ahead They represent indirect – or Scope 3 – emissions shared across all companies participating in a valuechain, not just logistics providers.
Therefore, when JD Logistics use AI and automation to curb these emissions, the benefits extend well beyond the firm itself. Every
company using JD’s services sees a reduction in their Scope 3 emissions, helping the entire chain move towards low-carbon operations.
As disruptive technologies like AI ripple across industries, companies building the foundational tech and those capitalising on tech-driven solutions are helping accelerate tangible positive change for environmental and social outcomes.
At the same time, they are likely to deliver attractive financial returns, making them increasingly central to sustainable investment portfolios.
