Channel businesses urged to use AI wisely in ESG strategies

Channel sector businesses are increasingly turning to Artificial Intelligence (AI) as a means to achieve Environmental, Social and Governance (ESG) objectives, while cautioning against uncritical adoption, according to a new report by Nebula Global Services.

The latest edition of Nebula's "ESG Unwrapped" series, titled "Using the power of AI to drive your sustainability strategy", examines the practical applications of AI within the technology channel industry's ESG programmes. The report draws on a number of in-depth interviews with AI and sustainability specialists across the sector.

AI and ESG strategy

The report finds that AI is already being used by early adopters in the channel to accelerate progress on ESG goals. According to Richard Eglon, Chief Marketing Officer at Nebula Global Services, "There's no doubt that AI is already being deployed by early-adopters in the channel to help them fast-track their ESG goals. However, it's a minefield. With this report, we wanted to provide practical expert advice for channel firms on how to use AI strategically to deliver real ESG benefits."

Despite the enthusiasm for AI's potential, those interviewed urged that businesses proceed thoughtfully, ensuring their investment in AI aligns with genuine sustainability outcomes. The report notes that while many use cases are still developing, some channel players are applying AI to functions such as shaping ESG strategy, streamlining office resource management, and improving staff inclusion and well-being.

Practical use cases and challenges

One of the primary themes in the report is the tension between AI's resource intensity and its potential for supporting sustainability goals. AI technologies, particularly large generative models and data analysis platforms, can be significant consumers of energy and water-raising questions about their use in sustainability efforts. The report provides guidance outlining how channel leaders can adopt AI responsibly, balancing efficiency gains with the broader environmental impact of these technologies.

Jon Steggles, Sustainability and Social Value Manager at CDW, commented on this challenge and the role AI can play in decision-making processes. He said, "You can analyse data faster, draw trends and build models that demonstrate, 'If I move this lever, what's the impact over here?' That combination of human and technology will produce some innovative, impactful solutions. Most companies will achieve more by using AI to help guide their strategy than they will impact the planet. But of course, there will be a tipping point, and that's when we need to exercise more caution."

Collaboration and frameworks

The report also compiles insights from channel sustainability leaders at firms including HP, Roc Technologies, CDW, Softcat, Interact DC, PNZ Advisory, and Vitalis Capital. They share their experiences introducing AI into ESG initiatives and highlight opportunities for sector-wide cooperation on environmental issues.

There is a growing opportunity for vendors to work together for the good of customers, the tech sector and the planet. There are frameworks out there that help, for example, the UN Sustainable Development Goals, and an expectation that AI can help with current obstacles like data and methodology misalignment.

That comment was made by Nancy Powell, HP's Sustainability Manager for the UK, Ireland and EMEA, emphasising the importance of collaboration between technology vendors around common ESG challenges and international frameworks.

Balancing hype and practical advice

Eglon addressed the current level of excitement around AI and the importance of providing clear information tailored for ESG applications: "AI is already hyped up enough outside of the ESG environment. Our goal with this report is to bring clarity. By showing where AI is genuinely helping partners and where caution is needed, we can help businesses take the right steps towards their ESG goals."

The report describes AI as a key tool for partners to pursue sustainability initiatives, but recommends a measured, informed approach to manage both the benefits and complexities involved. Organisations are encouraged to evaluate where AI can automate and enhance ESG processes, while also mindful of the need to ensure its implementation results in a net positive environmental and social impact.