Unlocking the Potential of ESG in AI: Insights from Prof. Dr. Johann Kranz

What role do you think digital services will play in advancing sustainability in the next 3-5 years? How should businesses considering their digitalization goals effectively balance their financial performance with their environmental and social responsibilities?

Digital services are poised to be game-changers in advancing sustainability. First, however, companies must be bolder in using them and transform business models to strike a harmonious balance between profit, people, and the planet. Many companies have shown this is possible, and investments in more eco-efficient and eco-effective practices enabled by digital circular economy models, transparency, platforms, or digital twins pay off in the long run. But to start this process, firms need a compelling long-term vision and committed leadership that prioritize sustainability and analyze where the action is needed and most profitable.


As companies work to manage costs, what should boards prioritize for any partner looking to improve their ESG offering?

When improving companies’ ESG offerings, boards should prioritize three critical factors in selecting partners: Purpose, Performance, and Progress. Choose partners who are not just "talking the talk" but actively "walking the walk" of ESG, embodying the values and principles that drive positive change. Together, you can build a more substantial, more resilient business that thrives in the face of challenges while making a positive difference in the world.

Remember, a strong ESG offering is not just about ticking boxes or meeting minimum requirements but about creating lasting value for all stakeholders. By prioritizing Purpose, Performance, and Progress in selecting partners, boards can ensure that their organization's ESG efforts are cost-effective but also meaningful and impactful, contributing to a more sustainable and responsible business ecosystem. Technologies like AI, the metaverse, Web3, and Industry 4.0 are hot topics of conversation and are increasingly ‘breaking through’ into conversations with digital generalists and specialists alike.


Technologies like AI, the metaverse, Web3, and Industry 4.0 are hot topics of conversation and are increasingly ‘breaking through’ into conversations with digital generalists and specialists alike. What are the most common pitfalls companies should beware when looking into ESG and investigating new technologies and strategies?

Common pitfalls are that companies overlook the integrated sustainability potential of these technologies and do not have a clear roadmap resulting in short-termism and piecemeal approaches. But more importantly, companies underestimate the importance of engaging and educating their workforce about these technologies and their potential for ESG. Because, in the end, it’s the people that come up with creative use cases and work with these technologies. So, one could say that people eat technology for breakfast.

Are there any emerging digital technologies or trends (not necessarily those mentioned above) that you believe have the potential to contribute to sustainable development significantly? Are there any sectors where you believe these emerging trends/technologies are set to impact and transform particularly?

There are other digital technologies such as Quantum or applications such as edge computing or data spaces. But, I advise companies to always look at problems first and then look into technical solutions. All too often, tech projects are started because a technology is hot and new. What often happens then is that the technology and complementary infrastructures are not mature enough to deliver the expected benefits and as a result the enthusiasm about plummets. A wiser and more sustainable approach is to analyze ESG challenges and opportunities in-depth and then examine if and how these issues can be effectively addressed with technologies — which themselves need to be responsibly used.