Major corporations are being urged to make more effective use of AI to reduce their emissions, amid reports that a mere 16% of the world’s largest companies are on track to reach net zero emissions by 2050. Nearly half (45%) continue to increase their carbon footprint, highlighting the urgent need for artificial intelligence (AI)-powered monitoring solutions to help reverse emissions growth, according to Accenture’s latest “Destination Net Zero” report.
Analysing net zero commitments, emissions data, and carbon reduction activities for the 2,000 largest companies globally, the overall picture presented by the report about the private sector’s success in meeting its environmental commitments is mixed. While over half (52%) of firms have successfully reduced emissions since the Paris Agreement in 2016, progress on full net zero targets has stalled, with only 37% of companies committed to such goals.
Three AI scenarios for emissions trajectories
Accenture’s report outlines three scenarios in which AI could influence global emissions trajectories, either positively or negatively, with each factoring in the significant environmental costs involved in building and training each model. In the first scenario, AI accelerates emissions growth if unchecked increases in model training and data processing continue. Here, emissions from AI-related activities outstrip abatement efforts, raising concerns over AI’s environmental impact without targeted intervention.
The second scenario envisions AI driving rapid emissions reductions, with companies adopting innovative AI use cases that offset AI’s own emissions. This path illustrates AI as a direct counterbalance to emissions growth through swift, compensatory applications.
The third scenario suggests an initial increase in emissions due to AI, followed by positive impact over time. In this case, AI-driven abatement technologies develop gradually, ultimately surpassing emissions from AI operations and supporting long-term net zero goals. As per the report, these scenarios illustrate the complex role AI could play in global decarbonisation, stressing the need for responsible scaling to maximise its positive impact.
Few corporations currently embracing AI-powered emissions abatement
Only 14% of companies currently report using AI to reduce emissions, but adoption is expected to increase. Accenture’s forecasts indicate that AI-related emissions could surge from 68 to 718 million tonnes of CO2e by 2030 if significant advancements in energy systems and computing efficiency are not made.
Despite this challenge, a majority of corporate leaders are optimistic: 42% expect AI to reduce emissions in the short term (1 to 3 years), and 65% anticipate AI-driven reductions over the long term (10+ years). This optimism suggests that companies increasingly consider AI a potential driver of emissions abatement when applied strategically.
The report also highlights regional disparities in AI-driven decarbonisation efforts, with European companies taking the lead. Nearly half (48%) of European firms have adopted 15 or more decarbonisation measures, significantly outpacing their peers in Asia Pacific and North America. European companies are also more advanced in their use of AI for sustainability, with 20% implementing AI for emissions reduction, compared to 14% in Asia Pacific and 10% in North America.
Despite AI’s potential, Accenture’s findings show that full net zero target-setting among G2000 companies has stalled at 37% since 2023, even as more companies adopt partial emissions targets. By 2024, 65% of companies had set at least some form of emissions target, marking a 10.6 percentage point increase from 2023. However, 18% of these companies still show no evidence of any emissions target, underscoring gaps in commitment even as AI offers new pathways for emissions reduction.
Accenture’s analysis points to five primary levers for quantifying and eventually reducing emissions: energy efficiency, waste reduction, renewable energy adoption, circular economy principles, and building decarbonisation. These measures have become standard in corporate sustainability efforts. Over 80% of companies have implemented at least one of these strategies, with 30% adopting 15 or more.
As AI technology advances, its role in supporting these sustainability levers is expected to grow, suggests the report. According to Accenture, AI can optimise energy usage, predict opportunities for waste reduction, and streamline renewable energy integration, enhancing operational efficiency while advancing corporate climate goals.
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