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Sustainable AI: How your organization can reduce environmental impact

This article explores AI’s impact on corporate sustainability and offers practical guidance on how organizations can embed sustainability principles across the entire AI development workflow.


In brief

  • AI has become a focal point in global sustainability discussions, as governments, industry leaders, and researchers recognize both its transformative potential and its environmental challenges.
  • AI’s footprint is real. Today’s AI workloads consume megawatt‑hours of electricity, millions of liters of cooling water, and generate tons of e‑waste, directly driving up carbon, water, and waste metrics.
  • To build truly Sustainable AI, organizations must integrate robust sustainability measures across the entire AI lifecycle, such as using Sustainable AI Governance and implement technical measures at the levels of infrastructure, model and data.

With the AI Action Summit in February 2025 Paris became the global hub for AI discussions. Major international stakeholders convened to explore AI’s opportunities and risks, with particular attention to its environmental impact and the need for responsible AI practices. As an outcome of the summit, a new international Coalition for Environmentally Sustainable AI was created bringing together over 90 partners — including governments, tech companies, and international organizations — to develop concrete strategies for reducing AI’s environmental impact. Additionally, the OECD and IEEE further advanced the dialogue by highlighting AI’s hidden costs, such as significant energy and water consumption, and emphasizing the urgent need for sustainable infrastructure and related regulatory measures.

One of the key concepts in the AI sustainability debate is Jevons’ Paradox, first described by economist William Stanley Jevons in 1865 and Generative AI compounds this issue dramatically.

Sustainable AI is not a destination, it is an operating model. Our previous article explored the challenges of the environmental impact of AI: while AI has the potential to drive efficiencies and reduce environmental harm, it is increasingly resource intense especially in training large models. But what concrete steps should be taken to embed sustainability into AI strategies? Here we shift from identifying challenges to providing a practical roadmap for businesses to successfully embed sustainable practices into their AI operations.

To put it simply: to establish Sustainable AI, we recommend two major steps:

  1. Governance with accountability. Define clear ownership, set environmental budgets, and build checkpoints into the AI lifecycle to ensure impact is measured, reviewed, and addressed.
  2. Technical integration at every layer. Apply sustainability principles across infrastructure, model design, and data practices, through carbon-aware scheduling, efficient architectures, and leaner data pipelines.

Sustainable AI Governance

Governance goes beyond writing policy documents —it ensures that environmental impact is visible, measurable, and integrated into decision-making throughout the AI lifecycle. Effective Sustainable AI governance should create clear lines of accountability, set enforceable boundaries, and embed sustainability within operational workflows rather than treating it as a separate or secondary concern.

Sustainability should be a core design principle in AI, alongside security, cost, and performance. When integrated into workflows, it becomes a strategic tool to identify inefficiencies, reduce compute waste, and improve system resilience. Real-time insights into emissions and energy use enable smarter trade-offs—often resulting in leaner models, focused data use, and better outcomes. Governance adds value by embedding environmental responsibility into everyday decisions.

Questions that must trigger decision-making:

Before development:

Is AI necessary for this use case? Could rules-based or heuristic methods achieve similar outcomes?

During model design:

Have we translated environmental targets into architecture or infrastructure choices? Are we using minimal viable compute?

Post-deployment:

Are emissions and energy consumption monitored during production? Are auto-scaling thresholds and decommissioning policies clearly defined and enforced?

From Governance to Execution: Implementing Technical Measures for Sustainable AI

After establishing the foundations for sustainability governance, the next step is implementing practical technical measures that reduce AI’s environmental footprint. As good governance only works if it is translated into engineering action, every design decision — from data handling to infrastructure configuration — has a direct impact on energy use, emissions, and hardware demand. By embracing approaches like carbon-aware computing, efficient model selection, and modular hardware upgrades, organizations can translate sustainability principles into concrete, measurable actions.

Because AI systems are difficult to dissect or optimize after deployment, it is recommended to embed sustainability early — by focusing on the three core components of AI systems: infrastructure, model, and data:

  1. Infrastructure: Use carbon-aware workload scheduling, energy-efficient instance types, and cloud regions with clean energy profiles. Extend server life through modular upgrades.
  2. Models: Choose architectures that meet accuracy requirements with fewer parameters. Apply quantization, pruning, and mixed precision by default.
  3. Data: Prioritize quality over quantity. Curate training sets, reduce redundancy, and adopt incremental retraining instead of full-model refreshes.

The objective is not solely to reduce emissions, but to embed sustainability into the core decision-making processes alongside latency, cost, and performance considerations.

Conclusion

Quick Wins: What You Can Implement Immediately

  • Right-size your models and select models based on task complexity.
  • Use carbon-aware scheduling tools to route workloads to cleaner energy windows or cloud regions with lower carbon intensity.
  • Monitor Graphics Processing Unit (GPU) utilization rates. Batch non-critical workloads and shut down underutilized compute nodes to avoid silent energy waste.
  • Instrument emissions tracking and integrate these metrics into your experiment tracking.

Long-Term Moves: Strategic Shifts for System-Level Impact

  • Align compute demand with clean supply. Partner with procurement and infrastructure teams to secure Power Purchase Agreements (PPAs) that contribute to new renewable energy capacity.
  • Design infrastructure for circularity. Prioritize modular systems that allow partial hardware upgrades and extend lifecycle, reducing embodied emissions and e-waste.
  • Make emissions a monitored KPI. Embed environmental metrics into Machine Learning Operations pipelines, model governance gates, and executive dashboards, on par with performance, cost, and risk.
  • Enforce reuse and retraining thresholds. Implement versioning, lineage tracking, and model reuse policies to avoid unnecessary training runs and redundant data ingestion.
  • Establish strong data management practices to support sustainability goals: collect relevant, high-quality data while minimizing waste and environmental impact. Implement clear versioning, lineage tracking, and data reuse policies to reduce redundancy and unnecessary storage or compute.

Sustainable AI is not an abstract ideal, but a tangible framework that requires both strong governance and technical execution. By embedding sustainability into infrastructure, model design, and data practices, organizations can reduce environmental impact while improving operational efficiency. The path forward is clear: responsible AI development must prioritize environmental accountability at every stage of the lifecycle.

This is the second piece in the EY SustAInable series — a collection of articles, surveys, and op-eds examining the intersection of AI and sustainability. In our first article, "AI and Sustainability: Opportunities, Challenges, and Impact", we examined AI’s paradox: its capacity to both mitigate and exacerbate environmental strain. In this second installment, we translated those insights into practice, laying out a roadmap for embedding sustainability into every layer of the AI lifecycle.

At EY, we don’t view sustainability as a constraint on innovation, we see it as a multiplier of value and a fundamental pillar of our Responsible AI Framework and corresponding Responsible AI Principles. Our approach recognizes that responsible innovation, covering trust, ethics, and environmental stewardship, adds tangible value to businesses. Embracing sustainable AI practices is not just about mitigating climate impact; it is also a strategic differentiator in an increasingly competitive tech landscape. We are committed to embedding sustainability considerations into the development and procurement of AI systems and in how we support our clients in their AI-driven transformations.

This article was the result of research compiled by members of the Sustainable AI Working Group at EY, including Volha Litvinets, Kevin Franco, Vincent Vella, Ansgar Koene, Cong Li, Etienne Vallette D'Osia.

Contact us

Anke Laan

Anke Laan

EY Netherlands, Lead Partner Climate Change & Sustainability Services
anke.laan@nl.ey.com


Bernadette Wesdorp

Bernadette Wesdorp

EY Netherlands, Partner EMEIA FSO Responsible AI Lead
bernadette.wesdorp@nl.ey.com


Roberto Rozema

Roberto Rozema

EY Netherlands, Partner Technology Risk
roberto.rozema@nl.ey.com


Summary

Sustainable AI is not an abstract ideal, but a tangible framework that requires both strong governance and technical execution. By embedding sustainability into infrastructure, model design, and data practices, organizations can reduce environmental impact while improving operational efficiency. The path forward is clear: responsible AI development must prioritize environmental accountability at every stage of the lifecycle.

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