July 8, 2024

AI for Climate Strategy

Why Artificial Intelligence Is Essential When Tackling Climate Change

Why Artificial Intelligence Is Essential When Tackling Climate Change
Contents

For large businesses, governments, and organizations, the impacts of climate change extend far beyond environmental degradation. Rising operational costs, supply chain disruptions, regulatory pressures, and shifting market demands are now pressing concerns. As these challenges intensify, the need for innovative, scalable solutions that support sustainability without sacrificing profitability has become critical. Artificial intelligence (AI) is emerging as a powerful enabler, providing organizations with the tools to effectively manage emissions, optimize resources, and future-proof their operations in a rapidly evolving landscape.

Net0, a global leader in AI-first sustainability solutions, works with large organizations and governments across the world, offering over 50 specialized AI-driven tools designed to meet these urgent needs.

In this article, we’ll explore specific ways AI is helping businesses achieve their sustainability targets while staying profitable and resilient.

Woman with a laptop standing in a futuristic data center surrounded by glowing servers and digital lights.

Why AI is critical for business sustainability

Artificial Intelligence is essential for business sustainability because it can process complex environmental data at a speed and scale that human teams and traditional systems cannot match. Managing emissions, optimizing energy use, and complying with regulations all require handling vast amounts of data—something AI excels at.

By automating these processes, AI not only streamlines sustainability efforts but also generates actionable insights that help businesses reduce waste, lower costs, and meet ambitious sustainability goals efficiently. It also enables predictive modeling, allowing businesses to anticipate future challenges and adapt strategies accordingly.

In short, AI transforms sustainability from a reactive task into a proactive, data-driven business strategy.

Net0 AI-first solutions for corporate sustainability

How AI makes emissions management more accurate and efficient

As more companies commit to ambitious net zero goals, they face significant challenges in measuring, managing, and reducing their carbon emissions across complex operations. AI is essential for both measuring and managing carbon emissions, providing businesses with the ability to turn complex data into actionable strategies. Accurately tracking emissions — whether from facilities, logistics, or supply chains — is challenging when done manually. AI automates this process, gathering data from multiple sources and analyzing it in real-time, ensuring businesses have a clear view of their carbon footprint across all operations.

Busy city street with glass office building, pedestrians, yellow taxis, and surrounding skyscrapers at sunset.

For large organizations with complex structures, multiple entities around the world, and thousands of suppliers, integrating data from multiple systems is key to efficient carbon management. Net0 leverages AI to integrate with over 10,000 ERP and API systems, automatically pulling data from raw invoices, operational records, and supply chain data. In fact, for one Fortune 500 company, Net0 processes data for around 1.2 million invoices on a monthly basis, enabling a comprehensive and detailed understanding of its emissions. This deep connectivity helps businesses monitor scope 1, 2, and 3 emissions, identify inefficiencies, and streamline reporting.

However, carbon management doesn't stop at measurement. AI also empowers businesses to actively reduce their emissions. By analyzing patterns in resource usage and forecasting future trends, AI identifies areas where emissions can be minimized, whether by optimizing energy use, refining logistics, or adopting new technologies. In addition, AI-driven simulations allow companies to model the impact of various strategies, helping them prioritize initiatives that deliver both environmental and financial benefits.

With Artificial Intelligence, businesses can not only measure their emissions more effectively but also manage them proactively — setting reduction targets, optimizing resource use, and ensuring compliance with evolving regulations.

How AI optimizes resource use and reduces waste

AI plays a transformative role in optimizing resource use and minimizing waste, two critical aspects of business sustainability. Large organizations, particularly those with global operations, often face challenges in efficiently managing energy, water, and materials. AI-driven systems process vast amounts of data, identifying inefficiencies and providing targeted recommendations for improvement.

By analyzing consumption patterns in real time, AI helps businesses optimize resource use without sacrificing productivity. For example, in energy-intensive industries, AI can adjust usage dynamically, aligning it with periods of lower demand or higher availability of renewable energy. Similarly, in water-intensive processes, AI can detect leaks or inefficiencies that traditional systems might overlook, enabling faster corrective actions.

AI-driven energy sensors at the factory

Net0’s AI-first specialized tools, tailored for specific industries and use cases, directly address these challenges. From optimizing energy consumption to reducing waste in supply chains, Net0 provides real-time insights and predictive analytics that enable businesses to minimize waste and identify opportunities for recycling and reuse — key drivers of a circular economy.

Through AI, businesses can enhance resource efficiency, reduce waste, and meet sustainability targets — all while cutting costs and improving operational performance.

How AI extends asset life and cuts energy waste through predictive maintenance

One of the most impactful ways AI contributes to business sustainability is through predictive maintenance. In large organizations, equipment failures or inefficiencies can lead to significant energy waste, higher operational costs, and increased carbon emissions. AI-powered predictive maintenance systems analyze data from equipment sensors to forecast potential failures before they occur, reducing downtime and preventing unnecessary energy consumption.

By identifying issues early, AI allows businesses to schedule maintenance only when it's needed, extending the life of equipment and avoiding the costs associated with unexpected breakdowns. This is especially important in industries with energy-intensive machinery, where inefficiencies can cause substantial environmental and financial impact. Predictive maintenance also ensures that equipment runs optimally, reducing energy consumption and emissions.

Engineer in a hard hat inspecting electrical panel wiring while using a tablet for diagnostics.

AI goes further by integrating this predictive capability with broader operational data. For example, AI can analyze historical performance trends and environmental factors, such as temperature or humidity, that may affect equipment performance. This allows businesses to make informed decisions about when and how to maintain assets, further enhancing efficiency and sustainability.

Related content

To learn about how you can use AI to tackle climate change, please read our following content:

• Article: The Product Carbon Footprint (PCF): Calculation to Comprehension
• Article: A Profitable Decarbonisation Strategy: What Is It and How Do We Achieve It?
• Article: 5 Practical Solutions to Overcome Carbon Data Collection Challenges from Manufacturing Impacts

Why AI is essential for supply chain transparency and sustainability

Supply chains are often the largest source of carbon emissions for organizations, particularly in scope 3, making transparency and optimization critical for achieving sustainability goals. AI enables businesses to gain full visibility into complex, global supply chains by tracking emissions, identifying inefficiencies, and ensuring responsible sourcing.

Net0 offers specialized tools specifically for managing scope 3 emissions. The Supply Chain Carbon Mapping Tool maps and quantifies emissions across the entire supply chain, pinpointing high-impact areas and offering strategies for emission reductions. The Supply Chain Sustainability Hub manages and analyzes sustainability data, allowing businesses to evaluate suppliers and track progress toward their sustainability goals.

Cargo ship transporting goods as part of supply chain

In addition, Net0 provides supplier-specific dashboards and interfaces, helping businesses achieve multiple objectives — from compliance and emissions tracking to collaborative sustainability initiatives. By processing data from numerous suppliers and logistics networks, AI evaluates the environmental impact at every stage, from raw material extraction to product delivery, enabling informed decisions on emission reductions, optimized logistics, and waste minimization.

AI-powered predictive analytics further enhance supply chain resilience, helping businesses anticipate disruptions such as extreme weather and adjust operations proactively, reducing both risks and emissions.

How AI simplifies ESG reporting and ensures compliance

Environmental, Social, and Governance (ESG) reporting has become a key requirement for businesses, driven by regulatory demands and increasing stakeholder expectations for transparency. However, compiling accurate ESG data across multiple business units and global operations can be complex and time-consuming. AI plays a critical role in streamlining the reporting process and ensuring compliance with evolving sustainability regulations.

Net0’s Discloser, a dedicated core product for ESG reporting, simplifies this process by automating the collection and analysis of data across various business functions, such as energy consumption, carbon emissions, and social impact. Discloser supports all major ESG reporting frameworks — including GRI, CDP, and SASB — and offers flexibility for customers to add their own custom frameworks if needed. This ensures that businesses can meet a wide range of regulatory and stakeholder expectations seamlessly.

Net0 ESG Reporting Platform

By continuously monitoring ESG performance in real time, AI makes it easy to generate accurate, up-to-date reports that align with evolving compliance requirements. Additionally, AI tracks regulatory changes across jurisdictions and automatically updates reporting frameworks, ensuring businesses stay compliant without the need for manual intervention.

Discloser also provides customizable dashboards, enabling businesses to communicate their ESG performance clearly to investors, regulators, and other stakeholders. With data-driven insights, companies can demonstrate transparency, build trust, and showcase their commitment to responsible, sustainable practices.

A man sitting in the office and working on the report on the computer

Conclusion: AI as the foundation for sustainable business transformation

Artificial intelligence is essential for businesses striving to meet sustainability goals while maintaining efficiency and profitability. From managing emissions and optimizing resources to ensuring supply chain transparency and streamlining ESG reporting, AI empowers organizations to take control of their sustainability efforts in a rapidly changing world.

If you’re ready to explore how AI can transform your sustainability strategy, check out our full suite of AI-driven solutions, including tools for carbon management, ESG reporting, and supply chain optimization. Book a call with a Net0 expert today to learn how we can help your organization meet its sustainability goals efficiently and effectively.

Written by:

Sofia Fominova

As a Co-Founder of Net0, Sofia applies her experience in environmental software to help businesses reduce their carbon footprint and achieve carbon neutrality. She is an accomplished tech entrepreneur recognized for her expertise in B2B software and contributions to the field of Artificial Intelligence.
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