Whilst AI Booms, Microsoft Tries to Avoid ESG Challenges
The rapid adoption of AI technologies is creating significant challenges for the global data centre and networking industries, particularly when it comes to balancing innovative growth with environmental, social and governance (ESG) commitments.
AI systems require vast amounts of computational power, which leads to increased energy and water consumption in data centres. This can impact the entire value chain of a network and cause more harm than good.
Microsoft, a major cloud services provider, finds itself at the forefront of this issue as it seeks to meet its ambitious target of becoming carbon negative by 2030.
Responding to these concerns, Sorouch Kheradmand, Global Head of Sustainability at Schneider Electric, has confronted complexities with Mary Francia, a leading advisor on sustainability issues.
Sorouch notes that the rapid pace of AI development presents both opportunities and risks for businesses, suggesting: “With the speed of evolution and rush in investments that AI is seeing, businesses see opportunities as much as risks.”
Adjusting to AI’s impact
To address these challenges, companies like Microsoft are already exploring measures to mitigate the environmental impact of its data centres. These include innovative cooling technologies and more efficient power distribution systems.
Additionally, both Sorouch and Mary have suggested that the company consider integrating AI-specific expertise into its governance structures by appointing board advisors or directors with backgrounds in AI and technology ethics.
They emphasise that proactive governance is crucial for managing the risks and opportunities associated with AI. They suggest that Microsoft should implement frameworks to anticipate these challenges while maintaining robust operational oversight.
Mary also highlights the importance of transparency in disclosing AI’s impact on operations. She explains that such disclosures are essential for maintaining leadership in ESG performance while navigating the complexities introduced by AI technologies.
She explains: “This article captures our combined knowledge in governance, ESG, climate and AI to offer thoughtful approaches for enhancing board oversight in these critical areas.”
Making Microsoft more sustainable
Another key consideration for Microsoft is balancing financial performance with its sustainability objectives. Strategic portfolio management could play a pivotal role in achieving this balance during the company’s next growth cycle driven by AI advancements.
Sorouch and Mary stress that an integrated approach to AI governance will be beneficial for protecting Microsoft’s ESG targets.
They propose that board members, executives, employees, and stakeholders should be educated on the ESG implications of AI and equipped to measure and report its impact effectively.
In 2020, Microsoft committed to becoming carbon negative, water positive and zero waste by 2030. The world-leading company pledged to do this, whilst also committing to protect more land than it uses.
The company’s Research for Industry (RFI) programme uses its advanced data platforms and technologies for cloud and edge processing, Internet of Things (IoT) connectivity and AI and robotics to contribute new solutions across multiple industries. These include agri-food, energy, retail and financial services.
For instance, FarmVibes.Connect involves inventing new ways to deliver Internet to the middle of a farm, including leveraging unused TV channels to broadband connectivity and using narrowband IoT connectivity.
Likewise, the company is investing in sustainability via the Microsoft Climate Research Initiative (MCRI). Consisting of a community of multi-disciplinary researchers, Microsoft works with them to fight climate change through collaborative research projects.
The research network ultimately aims to advance a shared sustainability research agenda in support of global climate goals.
Explore the latest edition of Mobile Magazine and be part of the conversation at our global conference series, Tech & AI LIVE and Cloud & 5G LIVE.
Discover all our upcoming events and secure your tickets today.
Mobile Magazine is a BizClik brand
