Faith Taylor, Global Sustainability Officer at Kyndryl, has dedicated her career to educating and enlightening large corporations about the significance of corporate responsibility. We met her to discuss Kyndryl’s newly released findings of the Global Sustainability Barometer study, their dedication to sustainability practices, the common challenges faced by companies and how technology can be a leverage to address sustainability concerns.

The Global Sustainability Barometer study, conducted by Ecosystem, finds that while 85% of organizations place a high strategic level of importance on achieving their sustainability goals, only 16% have integrated sustainability into their strategies and data.

As the world faces an increase in climate-related events and challenges, there is an urgency among businesses to act now using technology to drive sustainable solutions. While 80% of organizations surveyed see great significance in technology’s role to achieve their goals, only 32% believe they are making full use of it in their organizations.

Many companies are at different stages of sustainability maturity,” said Faith Taylor, Chief Sustainability and ESG Officer, Kyndryl. “Companies are applying technology to unlock the full potential of sustainability. They are thinking beyond regulatory compliance to pragmatically execute and advance their sustainability goals. And more specifically on the technology they are using we saw that 61% of organizations use AI to monitor energy use, but only 34% use current data to predict future energy consumption. My recommendation to drive growth and improve business outcomes if for companies to Align sustainability with technology modernization. Technology can help to automate, modernize and prioritize sustainability processes and infrastructures. Of the respondents surveyed, 52% use automation to improve efficiencies and build sustainable operations, while 48% digitize their workplaces to support a hybrid work strategy and 47% use technology to reduce the environment footprint of their organization."

1. How is Kyndryl addressing sustainability as part of its digital transformation and in response to regulatory and investor requirements?

"We have built sustainability into the foundation of the company since I came on board in December 2021 and was tasked with initiating the sustainability program from the ground up. We reset the boundaries and scope to align with greenhouse gas protocols and developed the baseline of energy, water, and waste particularly, the direct and indirect carbon emissions. Our baseline is set to achieve net-zero by 2040, with a 50% reduction and 100% renewable energy by 2030. This aligns with the Science-Based Target initiative, third-party validated and assured by PwC, ensuring the integrity of our foundational data. Sustainability is a significant focus for our employees and customers. Internally, we've introduced a net-zero 101 course for employees, and externally, we are developing sustainability solutions for our customers.

This market is projected to reach $158 billion by 2025 and grow at a compounded annual rate of 32%. Numerous regulations have already been implemented, notably the directive Corporate Social Responsibility in Europe requires you to focus on reporting your environmental and social governance activities. Fortunately, we've already earned a silver rating from EcoVadis, one of the world’s largest and most trusted provider of business sustainability ratings, placing us in the top 25% of participants in a program that many fortune 500 companies partake in.

Firms specializing in investment data and analytics services, such as MSCI, ISS, and Sustainalytics, conduct evaluations that focus on program management and associated risks. In the process of crafting our corporate citizenship report, we exercised careful consideration in selecting metrics and determining the type of information to include. Following this, we conducted a thorough gap analysis to  determin  our position concerning environmental, social, and governance metrics.

And we have done this in close partnership with our senior leadership and with the support of our Board of Directors.  This means that as a company we have set clear KPI’s for what we want to achieve. And that is also the advice I give to my peers: make sure that as a company you set a clear goal that is supported throughout your organisation. Those goals should be scienced based and third party validated."

2.    Some corporates will struggle to meet the new requirements. How can they use technology more effectively to address sustainability challenges? 

"I firmly believe in harnessing technology holistically to scale solutions in order to address sustainability challenges. The first step is to ensure accurate data collection from various sources, whether it’s energy data sourced from utility bills, human resource data extracted from your systems or even human rights within your supply chain, it needs to be sorted and structured. When your company is present in over 100 countries, you must deal with various languages, currencies, and many other sources of information. Using any AI based analytics tool or IoT sensor software can help you collect data and facilitate your activity monitoring. Additionally, you can harness the power of customizable software tailored to align with your specific needs and business model. This approach not only streamlines operations by handling less value-added tasks but also serves as a preventive measure against human-made errors, thereby reinforcing the integrity of your processes.

At Kyndryl, we developed a scaling platform named ‘Bridge’, enabling customers to efficiently navigate their IT infrastructure. We added sustainability monitoring features to the platform via a carbon assessment tool to help our customers align themselves with the latest regulations and requirements. Ensuring the delivery of efficient and sustainable solutions for our customers is a top priority. In pursuit of this commitment, we have established a collaboration with Microsoft, leveraging our sustainability advisor and making it available on the Azure platform."

3.    What are the most common challenges organizations are facing when it comes down to sustainability?

"As mentioned earlier, data integrity and third-party validation is the most important because of the concern of greenwashing. Having an external validation using ISO (International Organization for Standardization) certifications for your documentation, process, and systems is essential to aiding with greenwashing. 

Another critical challenge involves integrating your companies sustainability roadmap with your business strategy due to the inevitable growth a company may experience. Growth leads to increased energy, water usage, and overall environmental footprint. The key, however, is decoupling this growth from carbon emissions. Your road map will then outline the right strategies that can enhance energy efficiency and reduce carbon footprint as you grow.  This involves leveraging technology, adopting renewable energy sources, and implementing education and training programs to alter employee behavior. Consideration should be given to their roles in the company's footprint, such as business travel commutes. Quantifying these behaviors and aligning them with the business strategy is a crucial step for sustainability and an approach I would qualify as "building it with the end in mind."

4.    Kyndryl published its first corporate social responsibility report in September. What are the key takeaways from this report?  

"The number one takeaway is, that our purpose is aligned with our values, reflected in our philosophy to be restless, empathetic, and devoted to a sense of urgency.  Making net zero and education commitments to achieving our goals in terms of environmental and social governance is part of the rewards integrated into our compensation structure. We've taken steps to ensure that the code of conduct is reflected throughout our entire organization. Additionally, our Board of Directors has a 50% diversity, reflecting our commitment to inclusivity.

Next, by outlining how we use our profits, partnerships, and align ourselves with the UN’s Sustainable Development Goals, we demonstrate to our customers that we care. I firmly believe in harnessing technology holistically to scale solutions not just for our internal needs, but globally to address challenges related to climate change, workforce diversity, and bridging the gap in the access of technological talent.  

The report is about our culture and the innovative economics of our business that we are proud of building in the span of just two years. The noteworthy recognition from Newsweek magazine, nominating us as one of the most globally loved places to work, is complemented by the Ecovadis rating that positions us in the top 25%. However, it’s not just about the awards, it’s about the importance of what our company’s foundation is built on – values and commitment. These are integral parts of our company because we understand and care about the global impact we can make in our communities and environment, and in delivering an inclusive and sustainable future "