By 2024, IDC predicts that 35% of companies and public service institutions in the Asia Pacific (excluding Japan) (APEJ) will leverage Artificial Intelligence (AI) technology in their ESG metrics and data management, according to IDC FutureScape: Worldwide Sustainability/ESG 2024 Predictions — Asia/Pacific (Excluding Japan) Implications.
“IDC foresees a rapid expansion of sustainability tech applications in the near-term, expanding use-cases and scope of material topics,” says Melvie Espejo, the research director of Sustainability Strategies and Technologies at IDC Asia/Pacific.
Sustainability predictions in APEJ
IDC predicts that AI will remain a critical technology in operationalising ESG in 2024 and beyond, pushing a quarter of ESG review boards to consider responsible and ethical AI use by 2025.
By 2026, companies will use AI in demand forecasting to reduce excess inventory levels by 20%, leading to a more sustainable supply chain management.
IDC also predicts increasing initiatives on social sustainability, as 30% of APEJ companies will track social capital KPIs concerning social sustainability topics by 2028. Moreover, renewable energy will power 35% of all data center energy consumption in APEJ by 2026.
By 2028, sustainability will be ingrained across organisations, leading chief sustainability officers to take on the coordinator role.
