Many Companies Will Not Meet Their Net Zero Goals, NTT Finds

NTT Corporation (NTT) research reveals how sustainability leaders are using advanced technologies like artificial intelligence (AI), the Internet of Things (IoT) and photonics to reach emissions targets. 

The company’s survey, conducted with ThoughtLab Group, finds that 68% of global enterprises have self-reported they are not currently on track to meet their net zero carbon emissions goals. Further evaluation of these findings also indicates that as many as 95% of respondents may fall behind on the sustainability plans.

This is significant, given the current spotlight on the data centre industry in particular to conduct their operations more efficiently and sustainably. Whilst data centres are contributing to enhanced digital transformation, their ability to grow global carbon emissions and utilise greater levels of energy and electricity cannot be overlooked.

“While the results of this survey clearly indicate that large companies have more work to do to improve their sustainability practices, it is also cause for optimism,” comments Vito Mabrucco, Global Chief Marketing Officer at NTT.

Why businesses struggle to meet sustainability targets

The amount of data centres continues to rise, in conjunction with a surge in demand for technology and data. With this, their emissions are also continuing to rise for most organisations on average by 1.5% over the last two years. 

According to NTT, 60% of top technology officers have listed reducing data centre emissions as a top priority. However, more than two-thirds of the enterprises surveyed are behind on their net zero targets - a figure which could be much higher, according to ThoughtLab analysis. 

Already, 57% of participating companies have not accounted for the dramatic growth of data in their net zero strategy. Likewise, 65% of top technology officers stated large increases in data usage have made it difficult for these goals to be achieved. 

Internally, 65% of companies cited the difficulty of balancing net zero and business goals, bearing the cost of transitioning to sustainable practices while meeting shareholder profit expectations. Likewise, 55% of companies believe they do not have adequate access to necessary emissions data and 50% lack an actionable net zero roadmap to reach their goals.

Outside of business operations, 68% noted they were struggling to keep up with government regulations.

Many businesses have already set their sights on achieving net zero anywhere between 2030 and 2050. The survey finds that so far they have reduced greenhouse gas emissions at a compound average growth rate (CAGR) of 4.2% per year.

However, NTT suggests the organisations would need to increase that figure to 11.1% to meet their target-year goals, which it states many may find challenging. 

Technology-enabled sustainability

As little as 9% of enterprises surveyed report they are on target to reach net zero targets either on schedule or ahead of schedule. This is despite setting tougher goals on themselves, enabling these organisations to take greater advantage of advanced technologies like AI and IoT to remain competitive, whilst reaching their overall emissions goals.

This accounts for Scope 1, Scope 2 and Scope 3 emissions and having a net zero target date before 2050. 

Survey analysis reveals three categories of tools these sustainability leaders are leveraging to meet their targets. This includes AI, which is allowing enterprises to gain deeper insights from data, with 39% of leaders using AI for net zero decision support and planning. Additionally, 23% are using AI for energy optimisation.

Whilst the demands of AI have negatively impacted some organisations’ net zero progress, leaders are driving ahead AI strategies to achieve their business goals and meet emissions targets. As a result, they have reduced their data centre emissions over the past two years by drawing on renewable energy sources via actions such as optimising cooling systems.

Likewise, IoT technologies are useful when it comes to monitoring emissions, conserving water and creating smarter buildings. NTT suggests that twice as many sustainability leaders are using digital twins to provide real-time insights to optimise energy usage and reduce waste.

“By learning about the processes, innovations and technological implementations of firms that are achieving or exceeding their net-zero goals, companies may improve their own plans to cut emissions while simultaneously developing a collaborative spirit of global corporate sustainability for the betterment of all,” Vito adds.

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