Everyday, many of us make efforts to ensure that our choices have a lesser negative impact on our planet’s environment. Whether it be reusable coffee cups or second hand clothing, we have all made small transitions in our daily lives. These changes are to be valued, but so too are those of large corporations and businesses. Ultimately, it is businesses, and the economic system in which they operate, that have resulted in negative environmental outcomes across the globe. In recognising this, we must demand action from these large contributors to environmental change.
Few firms have a reach as vast as that of IBM with the company having led research in the technology sector since the 19th century. The multinational technology company is now trying to define best practice and continually shift itself in order to meet the sustainability demands of the future. The firm, which is committed to net zero greenhouse gas emissions by 2030, sees its sustainability efforts led by Chief Sustainability Officer (CSO) Christina Shim.
In talking to Shim, one gains an understanding of the leader’s all encompassing view of sustainability. The CSO began her tenure last year following years of work in the sustainability sector. Discussing the lead-up to her current position, Shim discussed her time studying international public policy and business in university. Commenting on this time, Shim stated that she was focussed on “making an impact in an area that’s bigger than myself.”
“Because sustainability is so horizontal, no matter what you’re studying, or what your background is, everybody actually has a way to participate in it”
As the conversation evolved, Shim was asked how she perceives the difficulty of entering the sustainability sector. Responding to this, Shim disagreed with the premise saying: “Because sustainability is so horizontal, no matter what you’re studying, or what your background is, everybody actually has a way to participate in it.” This point ties into Shim’s belief that sustainability should not be viewed as a single sector but should instead be considered a part of everybody’s job description, “even if it’s not in your title”.
From these comments it is apparent that Shim is a believer in the ability of individuals to make change. When asked about the value of these individual actions and whether or not we can make a difference, Shim said “Yes, I think I would be a terrible spokesperson for this domain if I said otherwise”. While it is true that individual actions can bring about change, as seen in recent boycotts, the sheer scale of the environmental challenges we face must not be understated. Research by the Carbon Disclosure Project shows that 70% of fossil fuel emissions between 1988 and 2015 were the product of just 100 companies. Recognising the difficulty in seeing the contributions of the individual while large firms, particularly in the energy sector, continue their operations, Shim stated: “I understand the sentiment.”
Continuing on the topic, the CSO argued the ability of individuals to make change when they act as members of a collective saying: “it’s incredible.” Shim then used the example of the electric car market. Here she highlighted that one individual driving an electric car may not make a huge difference but the collective group of electric vehicle drivers have a considerable impact. While it is true that just 100 companies are responsible for most emissions, it must also be recognised that these firms are primarily working in the energy sector. In this sense, these groups are providing energy to an enormous number of people and companies. These energy producers must be called upon to change their methods of producing energy, however, we must also consider that every firm, and individual, plays a role in generating the global demand for energy.
“I agree that there is greenwashing…”
Moving on to the issue of greenwashing, Shim recognised its prevalence commenting: “there seems to be a lot more litigation and lawsuits against corporations that have claimed certain things from a marketing lens and haven’t really backed it up”. Discussing the importance of sustainability to young people and students, Shim praised attitudes saying: “Where we’ve come in terms of awareness is amazing.” Continuing on and recognising the topic, the CSO said “I agree that there is greenwashing, I feel very grateful that I sit in an organisation which has had integrity around this for a really long time”. Here Shim praised her firm’s history of sustainability saying that IBM has been developing sustainable business practices since “long before it was cool”.
Shim also sits on IBM’s AI Ethics Board and is familiar with harnessing the technology on a large scale. Last year, the firm released its State of Sustainability Readiness Report detailing how firms are implementing sustainable practices. The report highlights the ability of AI to create growth while improving sustainability outcomes. According to this research, firms that invest in sustainability are 52% more likely to outperform their peers on profitability. Additionally, these firms report rates of revenue growth 16% higher than those who do not invest in sustainability.
Despite these findings, many businesses still fail to use AI in a way which simultaneously allows for growth and improved sustainability practices. Commenting on the rationale for this, Shim stated that “they [businesses] are trying” but highlighted the difficulty for firms to “upend” their practices. This fear of taking the jump towards more sustainable practices seems to be something felt by an enormous amount of firms. This fear, however, does not change the realities surrounding our planet’s future if things do not change. Even if technologies such as AI can help us transition towards a cleaner future, implementation is ultimately key. Put simply, solutions are merely concepts if people do not have the ability, knowledge, or desire to implement them.
“This scholarship argues that data centres, a major facilitator of AI, consumed the equivalent of all wind energy produced in the state between 2017 and 2023″
Commenting on concerns surrounding the technology and its energy consumption, Shim highlighted many groups’ desires to have the largest AI model possible saying “I think that is not working out so well”. Continuing the discussion the CSO highlighted the financial and environmental costs associated with these large AI models. From here Shim highlighted the need for firms to have “the right size models”. Returning to car based analogies, Shim highlighted that “we do not all need a Cadillac to do a job that a Toyota will do”. Here the CSO pointed out that businesses should be using models which are refined to their needs as opposed to installing the biggest system possible just to see what it can do. Creating systems which carry out their tasks with efficiency is our course desirable. Unignorable, however, is the impact which AI is having on the energy grid in countries like our own. University College Cork Professor in Sustainable Energy and Energy Systems Modelling, Hannah Daly, has carried out research on how this technology is impacting the Irish energy sector. This scholarship argues that data centres, a major facilitator of AI, consumed the equivalent of all wind energy produced in the state between 2017 and 2023. This reality is particularly concerning when one considers that 86% of Ireland’s renewable energy is produced using wind farms. In saying this it appears as though AI is currently a threat to the state’s green energy efforts in that we are currently facilitating more consumption instead of offsetting our carbon footprint.
On the connection between sustainability and business growth Shim highlighted that “any business leader at the forefront should recognise that sustainability itself is a business driver”. Highlighting the less moralistic benefits of sustainable practices, Shim points out the benefits of reduced costs associated with lower energy consumption and reducing waste. Continuing on the interconnectedness of sustainability and growth, Shim stated: “I think that if we start seeing the two in tandem more, it will drive a lot more successful business outcomes.”
“Unfortunately, the world is not in a position to seek sustainability on the basis of economic growth”
Shim’s language of creating growth through sustainability can be reflected upon in a variety of ways. It is undeniable that most businesses’ primary objective is to produce to profit, in this sense it is natural to lure important actors with promises of greater efficiency and thus more profit. Perhaps, if we are to see large corporations make the changes necessary, it will only be when they see the benefits which sustainability can bring to them. Simultaneously, however, we must tread carefully in an effort to ensure that the ideas of sustainability and growth do not become overly intertwined. If this occurs, a reality in which firms continue to ignore environmental realities in favour of greater profits seems likely. Unfortunately, the world is not in a position to seek sustainability on the basis of economic growth. Instead, our insatiable desire for more is what has resulted in the environmental crisis at hand.
While we are all familiar with the high level of energy consumption associated with the use of AI, Shim seems confident that such technologies can be used in a responsible way. In doing so, the sustainability leader believes that the technology can bring about positive changes regarding our sustainability.
Concluding the interview, Shim reflected on what troubles her regarding sustainability trends. Here we discussed issues ranging from our inability to recycle paper straws to other ineffective sustainability practices. One idea which Shim is glad to see disappearing is the belief that consumers would pay a “green premium” for products which are said to be more environmentally friendly. Discussing this, Shim highlighted studies demonstrating that this is not typically true. Shim then expressed relief that better environmental practices are simply expected by the consumer now. While this may be the case for some consumables, the root cause of the environmental crisis at hand is our continued extraction and use of fossil fuels. Without allowing for enormous investment into clean energy, it is simply unrealistic to suggest that things can improve to a meaningful degree.
Overall, it is clear that Shim is committed to making real change at IBM. The leader displays a genuine concern for the state of our planet while delivering her message in corporate language. In implementing sustainability measures, paired with promises of growth, the firm hopes that it can transfer its practices to the wider business world and subsequently enact positive change. While issues surrounding the environmental impact of AI are valid, it seems impossible that the technology is just going to disappear. In this sense it seems natural to encourage its use where it can make meaningful change while. At the same time, the root cause of the environmental crisis, extraction, must not be viewed as something that can be solved through software alone. Instead the threat at hand can only be alleviated through changes in our relationship with consumption.
