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The Role of AI and Big Data in Tracking SDG Progress for Businesses

Updated on:
Updated by: Ahmed Samir

As the global community continues to move toward the realisation of the United Nations’ Sustainable Development Goals (SDGs), businesses are increasingly expected to contribute actively to achieving these goals. The SDGs, set in 2015, aim to address critical global challenges, ranging from poverty, inequality, and climate change to peace and justice. To meet these ambitious targets, businesses must be able to track and report their progress effectively, aligning their strategies with the broader global agenda. Artificial Intelligence (AI) and Big Data play pivotal roles, providing businesses with the tools to track their contributions to the SDGs and enhance their impact.

Understanding SDGs and the Need for Tracking

Tracking SDG

The SDGs consist of 17 goals, each with specific targets and indicators designed to measure progress towards achieving them. These goals touch on various sectors, including health, education, gender equality, clean energy, and sustainable economic growth. However, with the sheer scale of the SDGs and their interlinkages, tracking progress can be a complex task for businesses, governments, and international organisations.

Regardless of their size, businesses are expected to align their operations with the SDGs through corporate social responsibility (CSR) initiatives and embedding sustainable practices into their core strategies. For this, businesses must measure and report how their activities contribute to their goals. Tracking SDG progress goes beyond compliance or good practice; it is about demonstrating genuine, measurable impact.

Enter AI and Big Data – two technologies that can revolutionise how businesses approach this challenge.

The Role of Big Data in Tracking SDG Progress

Big Data refers to large, complex datasets that cannot be analysed using traditional data processing techniques. With the rise of the digital economy, data has become one of the most valuable assets for businesses. The ability to gather, store, and process massive amounts of data provides insights that can drive innovation, improve decision-making, and help companies monitor progress on their sustainability targets.

Data Collection at Scale

One key challenge in tracking SDG progress is collecting relevant data at scale. Big Data allows businesses to harness various information sources—from social media, customer behaviour, and operational data to environmental and geopolitical trends. By leveraging real-time data, companies can identify patterns, monitor changes, and clearly understand how their operations impact the SDGs.

For instance, businesses can track their carbon footprint by analysing energy usage patterns, transportation logistics, and waste management practices. Similarly, data on supply chain practices, employee welfare, and product lifecycle can help businesses assess their contributions to SDG targets like decent work, sustainable production, and responsible consumption.

Data-Driven Decision Making

With Big Data, businesses can move beyond intuition and subjective analysis to make data-driven decisions. For example, if a company is committed to reducing its environmental impact, it can track its resource usage across all operations. By analysing historical and real-time data, the company can identify areas of inefficiency, set realistic targets, and make adjustments that lead to substantial improvements in meeting SDG targets related to climate action and sustainable resource use.

Predictive Analytics

Another powerful aspect of Big Data is predictive analytics. By analysing historical data trends, businesses can predict future outcomes and trends. This is particularly valuable when tracking long-term SDG progress. For example, a company that uses Big Data to track deforestation in its supply chain can forecast the environmental impact of its practices in the coming years. Using these insights; the business can proactively change its approach and meet SDG targets related to life on land and climate action.

Monitoring and Reporting

The SDGs require businesses to monitor and report on their progress regularly. Big Data technologies can automate much of this process, ensuring businesses collect data efficiently and analyse and report it promptly. Data dashboards and visualisation tools can create clear, actionable reports, helping companies to make informed decisions and communicate their progress transparently to stakeholders.

The Role of Artificial Intelligence (AI) in Tracking SDG Progress

Tracking SDG

AI technologies are transformative tools for businesses that wish to go beyond essential data collection and analysis. AI refers to machines programmed to simulate human intelligence, track SDG progress, uncover new insights, and optimise business operations for sustainability.

AI in Automating Data Analysis

AI excels at automating complex data analysis. Machine learning algorithms can analyse vast quantities of data much faster than humans, allowing businesses to identify trends and correlations that would otherwise go unnoticed. This can be particularly valuable in tracking SDG progress, where multiple variables must be considered simultaneously.

For example, an AI-powered system could analyse data across different business departments—from production, marketing, and sales to HR—to identify areas where improvements are needed regarding SDG targets. These AI systems can flag issues related to gender equality, employee well-being, resource usage, and supply chain sustainability, providing actionable recommendations to management.

AI for Enhanced Decision-Making

AI-powered systems can process data much more effectively and efficiently than human teams, supporting faster decision-making. In the context of SDGs, AI can help businesses identify the best course of action to meet sustainability targets. For instance, AI algorithms can optimise energy consumption by controlling HVAC systems or machinery in real-time, reducing carbon emissions in line with climate-related SDG goals.

Additionally, AI can predict the impact of various strategic decisions on SDG outcomes. For example, AI can simulate the environmental and social effects of different supply chain strategies, helping businesses choose the most sustainable and cost-effective option.

AI for Natural Language Processing (NLP)

Natural Language Processing (NLP) is a branch of AI focusing on interactions between computers and human languages. It can be applied to various tasks, from analysing social media sentiment to mining sustainability reports. For businesses tracking SDG progress, NLP can analyse textual data from multiple sources, including customer feedback, employee surveys, and media reports, to measure sentiment towards sustainability efforts.

AI-driven sentiment analysis can help businesses gauge public perception of their sustainability initiatives and adjust their strategies accordingly. For example, companies can track how their sustainability campaigns are received by consumers, employees, and investors, enabling them to refine their approach for a more significant impact.

AI for Supply Chain Optimisation

Supply chains are a critical area where businesses can significantly impact SDG targets, particularly those related to responsible consumption and production, climate action, and decent work. AI can optimise supply chains, making them more efficient, sustainable, and resilient.

For example, AI-powered tools can optimise logistics to reduce fuel consumption and emissions, automate inventory management to reduce waste and improve transparency in supplier sourcing. These tools allow businesses to monitor the impact of their supply chain on SDGs in real-time and make adjustments to ensure alignment with global sustainability targets.

AI for Predictive and Prescriptive Analytics

Predictive analytics, powered by AI, can forecast the potential impact of business decisions on SDG progress. Prescriptive analytics takes this further by recommending specific actions based on data-driven insights. For instance, if a business wants to reduce water usage in its production process, AI-powered prescriptive analytics can suggest the most effective ways to achieve this goal, considering various factors such as resource availability, cost, and technological solutions.

These predictive and prescriptive capabilities enable businesses to plan their sustainability initiatives with greater precision and effectiveness, ensuring they are on track to meet their SDG commitments.

Combining AI and Big Data for Effective SDG Tracking

While Big Data and AI each offer significant benefits individually, the true potential lies in combining these technologies. Big Data provides the volume and variety of data needed to understand complex sustainability challenges. At the same time, AI offers the analytical power to make sense of that data and optimise decision-making.

Together, AI and Big Data can provide businesses with comprehensive insights into their operations, enabling them to track SDG progress precisely. By integrating these technologies into their sustainability strategies, companies can achieve more than just compliance – they can drive meaningful, long-term change, contributing to the global SDG agenda.

Conclusion

The role of AI and Big Data in tracking SDG progress is not just a trend but a fundamental shift in how businesses can approach sustainability. With the right tools, companies can measure their impact, optimise operations, and make more informed decisions that align with the SDGs. These technologies are no longer optional; they are essential for businesses that want to stay competitive and contribute positively to the world.

By embracing AI and Big Data, businesses can enhance their sustainability efforts, increase transparency, and build stakeholder trust. In doing so, they will meet the expectations of consumers, investors, and governments and play a crucial role in shaping a more sustainable future for all.

FAQs

What are the Sustainable Development Goals (SDGs)?

The SDGs are 17 global goals set by the United Nations to address major global challenges such as poverty, inequality, climate change, peace, and justice. Businesses must align their operations with these goals to contribute to global sustainability.

How do AI and Big Data help businesses track SDG progress?

AI and Big Data provide businesses with tools to collect, analyse, and interpret vast amounts of data, helping them track their impact on SDGs, optimise operations, and make informed decisions to improve sustainability.

What are the key benefits of Big Data for businesses tracking SDG progress?

Big Data enables businesses to collect large-scale data from various sources, make data-driven decisions, predict future trends, and automate the monitoring and reporting sustainability efforts in alignment with SDG targets.

How can Artificial Intelligence (AI) improve business sustainability efforts?

AI can automate data analysis, optimise decision-making, predict future trends, and provide actionable recommendations. This helps businesses improve sustainability practices and contribute more effectively to SDG targets.

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