{"id":791239,"date":"2025-11-19T12:02:36","date_gmt":"2025-11-19T11:02:36","guid":{"rendered":"https:\/\/www.devoteam.com\/expert-view\/getting-return-on-investment-from-sustainability\/"},"modified":"2025-12-03T11:35:31","modified_gmt":"2025-12-03T10:35:31","slug":"getting-return-on-investment-from-sustainability","status":"publish","type":"expert-view","link":"https:\/\/devoteam.info\/en-nl\/expert-view\/getting-return-on-investment-from-sustainability\/","title":{"rendered":"Getting return on investment from Sustainability: A CIO Guide to AI-Driven Value Creation in ESG"},"content":{"rendered":"\n

Introduction: The Sustainability Paradox & the Canary in the Coalmine<\/strong><\/h2>\n\n

Sustainability<\/a> is no longer a niche concern or a simple compliance exercise. Sustainability has evolved into a strategic imperative for future-proofing business. Our 2025 Sustainability and AI Survey confirms this. 74% of organisations have either integrated sustainability into their core strategy<\/strong> or designated it as a focus area with dedicated resources.\u00a0\u00a0<\/p>\n\n

However, our research also uncovers a growing paradox<\/strong>. While businesses expect sustainability to deliver real, measurable business value, they are held back by internal costs and uncertainty around the return on investment (ROI) <\/strong>from their sustainability efforts. While 33% of companies expect measurable financial gains from their sustainability initiatives, 42% state \u201cinternal costs\u201d as one of the biggest barriers, supported by 39% who also point to \u201cuncertainty about return on investment\u201d.\u00a0\u00a0<\/p>\n\n

But why the high internal cost and uncertain ROI? Our survey data reveals a clear, causal chain of failure that begins with a foundational data problem<\/a>. This is the “canary in the coal mine” for modern business. The struggle with sustainability data is not an isolated ESG issue. It is a symptom of a much broader, systemic weakness in how organisations manage data.\u00a0<\/p>\n\n

<\/a>Downloa<\/strong>d Now: Getting ROI from Sustainability<\/a><\/strong><\/strong>
A Guide to AI-Driven Value Creation in ESG<\/a><\/strong> [New]<\/a><\/strong><\/strong><\/p>\n\n

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For a CIO, this is a critical diagnostic tool. If your organisation cannot efficiently source, govern, and analyse ESG data, it is a clear indicator of underlying issues in your enterprise data architecture. It will likely affect other business domains as well.<\/p>\n\n\n\n

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Sif NeldeborgSenior Strategy Consultant and Sustainability Lead, Devoteam Denmark<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n

The chain reaction is clear:<\/strong><\/h3>\n\n
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  1. It starts with Low Data Maturity.<\/strong> 63% of organisations are in the early stages of data collection or are still working to integrate disparate data sources.\u00a0\u00a0<\/li>\n\n\n\n
  2. This leads directly to an Inability to Track Performance.<\/strong> Without reliable data, it’s impossible to build a business case. Our survey shows 23% of companies don\u2019t even attempt to measure the financial effect of their sustainability efforts.\u00a0\u00a0<\/li>\n\n\n\n
  3. This creates High ROI Uncertainty,<\/strong> which 39% of leaders cite as a key barrier to progress.\u00a0\u00a0<\/li>\n\n\n\n
  4. Ultimately, this becomes a Barrier to Investment.<\/strong> When ROI is unclear, projects are perceived as pure cost centers, which explains why “internal cost” is the single biggest obstacle for 42% of organisations.\u00a0\u00a0<\/li>\n\n\n\n
  5. This results in a Failure to Meet Strategic Goals<\/strong>, creating a clear gap between the high ambition of 74% and the execution of sustainability initiatives.\u00a0\u00a0<\/li>\n<\/ol>\n\n

    This is where Artificial Intelligence (AI)<\/a> emerges as a transformative force. Businesses already expect AI to save time, lower costs, and deliver faster insights. Yet, our survey shows a significant adoption gap that needs to be closed.<\/p>\n\n

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    About the survey<\/h3>\n\n\n\n
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    The 2025 AI and Sustainability Survey is based on polling 57<\/strong> organisations with headquarters in Europe. The data have been gathered from May 2025 to August 2025 through direct mail and online survey, mainly targeting existing Devoteam clients and Devoteam’s network across Denmark, Spain, France, Belgium, Sweden, Germany and the United Kingdom. The survey has been shared with approximately 280 ESG leaders and IT, Digital, and AI leaders, resulting in a response rate of 20%.\u00a0<\/p>\n\n\n\n

    Thank you to all our respondents and contributors. Your contribution is greatly appreciated and helps us understand, not only where we are on the sustainability and AI-driven journey, but also the obstacles we need to solve, as a community of organisations globally.<\/p>\n\n\n\n

    The survey is part of Devoteam’s internal sustainability agency\u2019s effort to spread knowledge about sustainability and ESG to support the great impacts of our clients working hard to lower their negative impact and drive positive change within all 17 UN Sustainable Development goals.\u00a0<\/p>\n<\/div>\n\n\n\n

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    Download now<\/a><\/div>\n<\/div>\n<\/div>\n\n

    Chapter 1: Overcoming the Three Core Barriers to Sustainable ROI<\/strong><\/h2>\n\n

    Our survey confirms that the ambition to act on sustainability is clear and widespread. 74% of leaders confirm that sustainability is either a central part of their strategy or an important focus area. This is not driven solely by regulatory pressure (42%) but by a fundamental desire to meet customer expectations (58%) and align with the company’s core mission (60%). Yet, this ambition is stalling.\u00a0\u00a0<\/p>\n\n

    Challenge 1: The Financial Hurdle of High Costs and Uncertain ROI<\/strong><\/h3>\n\n

    The primary barrier is financial<\/strong>, with leaders pointing to “internal costs” (42%) and “return on investment uncertainty” (39%). This uncertainty is understandable when 23% of organisations don\u2019t measure the financial effect of their sustainability efforts at all.\u00a0\u00a0<\/p>\n\n

    AI as the Remedy:<\/strong> AI directly tackles both sides of the financial hurdle. Leaders anticipate that the top benefits of applying AI to sustainability will be the automation of manual processes<\/strong> (61%), reduced costs<\/strong> (42%), and the ability to generate deeper and faster insights from data<\/strong> (47%).\u00a0\u00a0<\/p>\n\n

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    For an ESG leader, this is the key to unlocking investment: framing AI not as a technology cost, but as the engine for efficiency and data-backed business cases.<\/p>\n<\/blockquote>\n\n

    Challenge 2: The Foundational Crisis of Low Data Maturity<\/strong><\/h3>\n\n

    The financial hurdle is a symptom of a deeper problem: a widespread lack of data maturity. Only 18% of organisations have well-defined, automated data collection processes, while 63% are stuck in the early stages, manually trying to integrate disparate data sources.\u00a0\u00a0<\/p>\n\n

    AI as the Remedy:<\/strong> AI is the proven tool for this exact challenge. The top general business uses for AI today are process optimisation<\/strong> (46%), data structuring and understanding<\/strong> (37%), and data collection and validation<\/strong> (33%).<\/p>\n\n

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    This is a familiar challenge for a CIO. Manually integrating ESG data from PDFs, spreadsheets, and siloed systems is a classic example of the technical debt that hinders agility across the enterprise. Solving it for ESG creates a reusable pattern for other data domains.<\/p>\n<\/blockquote>\n\n

    Challenge 3: The Adoption Gap Fueled by Risk and a Lack of Governance<\/strong><\/h3>\n\n

    While 65% of leaders see AI as a future enabler or key driver in their future sustainability work, 12% are “not sure” if their organisation even uses AI for sustainability, highlighting how siloed these initiatives are. This hesitancy is fueled by legitimate concerns like :<\/p>\n\n

    Data privacy and security<\/strong> (44%) is magnified by a critical governance gap: only 21% of organisations have any AI governance guidelines in place.\u00a0\u00a0<\/p>\n\n

    AI as the Remedy:<\/strong> These risks are not a reason to avoid AI, but a clear signal that a strategic, well-governed approach is required.\u00a0<\/p>\n\n

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    For both the CIO and ESG Leader, this is a shared responsibility. A robust AI governance framework is essential for mitigating risk (a core CIO concern) and for building the stakeholder trust necessary to act on sensitive ESG data (a core ESG Leader concern).<\/p>\n<\/blockquote>\n\n

    Chapter 2: The Dual Power of AI: The Solution Framework<\/strong><\/h2>\n\n

    The solution requires a dual approach. We must use AI to drive sustainability across the business (Sustainability by AI<\/em>), while ensuring the technology we use is itself efficient and well-governed (Sustainability in AI<\/em>). “Sustainability by AI” is the ROI engine. “Sustainability in AI” is the foundation of responsibility that builds the trust necessary to scale.<\/p>\n\n

    1. Sustainability by AI (The Opportunity)<\/strong><\/h3>\n\n

    This is about applying AI’s power to achieve ESG goals, turning sustainability from a cost center into a value driver. It is the direct remedy for the data maturity crisis.<\/p>\n\n

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    Case in Point: Bombardier Extends Asset Lifecycles with Predictive Maintenance<\/strong>. Bombardier uses a cloud-based digital product with IoT sensors and Machine Learning to monitor vital components in real-time. The system\u2019s predictive analytics automatically trigger maintenance orders, extending asset lifetimes, improving network availability, and decreasing costs. It is a perfect example of using AI to drive both financial and environmental sustainability.<\/p>\n<\/div>\n\n

    2. Sustainability in AI (The Responsibility)<\/strong><\/h3>\n\n

    While AI is a powerful tool, its own environmental footprint is a legitimate concern. The digital sector accounts for up to 3.7% of global CO\u2082 emissions. Our survey found that a combined 67% of organisations do not actively monitor the footprint of their own digital infrastructure or are unsure if they do. It reveals a gap between impact and oversight.\u00a0\u00a0<\/p>\n\n

    “Sustainability in AI” is the discipline of making your technology foundation lean, cost-effective, and environmentally sound.\u00a0<\/p>\n\n

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    For a CIO, this is the intersection of Green IT and FinOps. Optimising algorithms, hardware lifecycles, and data center efficiency is not just an environmental responsibility; it is a core tenet of sound financial management that lowers the Total Cost of Ownership (TCO) of the IT estate.<\/p>\n<\/blockquote>\n\n

    From Environmental Cost Center to Strategic Enabler:<\/strong> Making your technology more efficient directly translates to financial savings. Cost savings generated by making your technology more efficient (Sustainability in AI<\/em>) free up capital that can be invested in innovative projects that create new value (Sustainability by AI<\/em>).<\/p>\n\n

    Chapter 3: The AI-Powered Playbook: A 4-Step Journey to Value<\/strong><\/h2>\n\n

    This journey is not just about ESG compliance; it is a blueprint for building a modern, resilient data infrastructure that will drive value across your entire organisation.<\/p>\n\n

    Step 1: Define What Matters and Build the Business Case<\/strong><\/h3>\n\n

    The journey begins with focus. You must identify the ESG factors that are most material to your business and its bottom line.<\/p>\n\n