The Kyndryl-Microsoft report, From Insights to Action: The Technology Impact of Sustainability, reveals that in Malaysia only 35% are actually leveraging it to its full potential. This despite majority acknowledge the role of technology in achieving sustainability goals.
The study shows that 83% of Malaysian businesses recognise technology's strategic importance in their sustainability efforts. However, the role of IT departments often remains limited to reducing their own environmental impact rather than driving broader sustainability initiatives.
Effendi Azmi Hashim, country managing director of Kyndryl Malaysia and Indonesia, emphasised the need for organisations to shift from merely expressing intent to implementing data-driven action plans. "As the world faces increasing climate-related challenges, businesses are under pressure to act decisively," he added.
Regulatory compliance appears to be the primary driver for sustainability initiatives in Malaysia, cited by 42% of organisations. Despite this, progress has been inconsistent. While 45% of businesses reported that they maintained or accelerated their sustainability efforts between 2023 and 2024, others have slowed down due to shifting priorities and stakeholder pressures.
The study also highlights that sustainability strategies vary widely among companies. While 57% of organisations claim to have embedded sustainability into their operations, only 13% have adopted data-driven approaches. A mere 4% consider sustainability a strategic asset, integrating data into their planning and decision-making processes.
Barriers to effective sustainability practices include difficulties in reporting progress, lack of leadership buy-in, and high costs. Notably, 45% of respondents identified the collection of external data as a major challenge. Despite 92% of organisations collecting sustainability-related data, only 20% effectively use this information to track and optimise their performance.
The report indicates that while 60% of organisations are utilising AI or automation to enhance efficiency and reduce environmental impact, 68% do not consider the environmental footprint of AI itself. This raises concerns about the overall sustainability of technology initiatives.
As Malaysia seeks to enhance its sustainability efforts, the study outlines several guiding principles. These include integrating technology into strategic planning, reevaluating the role of AI in sustainability, responding to stakeholder demands, and fostering a culture of collective responsibility across departments.
