Is AI advancing sustainability or creating costly trade-offs we’re only beginning to understand? In this post, we dive into the reality behind AI's potential as a force for sustainability. While AI shows promise in enhancing sustainable practices and supporting business processes, it also has a significant CO₂ footprint—mainly from energy-hungry data centres—and its environmental impact will likely grow. Though AI could help achieve Sustainable Development Goals, this depends on our responsible use and governance of the technology. Without stringent oversight, AI risks reinforcing societal biases, as seen in social media algorithms that foster echo chambers. As with all innovations, AI’s promise is matched by its challenges, and only a well-balanced approach can ensure it contributes meaningfully to a sustainable future.
This blog uncovers the surprising, and mostly overseen fact, that corporate cash holdings in banks more often than not have a relevant carbon footprint. Relevant enough for a company's own Scope 3 and overall footprint. We discuss actionable steps from the Green Action Cash Guide, and the type of support the guide gives – but also lacks. Topics touched upon are: board support, data gathering, and strategies for shifting to climate-friendly banking partners.