Canadian businesses advance on sustainability but face IT gaps

New findings from Kyndryl show Canadian organisations are increasingly prioritising environmental sustainability.

67 per cent of respondents said they were maintaining or advancing their sustainability goals and programme execution over the past year. This is a notable increase compared to the global average of 38 per cent. A recent study finds a growing, yet complex, interplay between information technology (IT) teams and sustainability efforts in Canada.

Despite strong aspirations, most Canadian organisations remain in an early phase of their sustainability journey. The study indicates that 72 per cent of these organisations track environmental metrics centrally. However, only 25 per cent use the collected data to guide decisions or optimise performance. The majority use data primarily for reporting purposes, rather than actively driving sustainable change.

Strategic alignment

While 90 per cent of Canadian organisations name environmental sustainability as a top strategic priority, integration between IT and sustainability teams is often weak. Only 53 per cent report strong alignment between the two.

IT's evolving role

IT teams are playing an expanded role in advancing sustainability initiatives. 42 per cent of Canadian organisations report that IT is driving sustainability across the enterprise, not just within IT itself. This figure is above the global average of 31 per cent. Still, the lack of close collaboration between IT and sustainability teams continues to pose challenges.

Financial barriers

The most significant obstacle to sustainability cited by Canadian businesses is the lack of clear return on investment (ROI). This concern is shared by 67 per cent of respondents, higher than the global average of 48 per cent. Financial pressures remain a limiting factor, with only 17 per cent of Canadian organisations embedding sustainability as a core driver of innovation, cost savings, and long-term resilience.

Adoption of AI

Canadian organisations have yet to widely deploy advanced technologies such as agentic artificial intelligence (AI) in their sustainability initiatives. Only 3 per cent are currently using agentic AI for sustainability, although 62 per cent are piloting projects or considering adoption. Predictive AI, however, is seeing greater uptake in environmental monitoring. 60 per cent now forecast resource use and emissions to anticipate future impacts, compared to 46 per cent last year. Similarly, 58 per cent are focusing on anticipating climate risks, up from 24 per cent previously.

Employee influence

Employees in Canada play a prominent role in advocating for sustainability in their organisations. 67 per cent identify employees as the main internal stakeholders driving sustainability efforts, a much higher figure than the global average of 40 per cent.

Global comparisons

Globally, integration-focused organisations- those that embed sustainability into core business processes-are more likely to achieve financial benefits, operational efficiency, and new market opportunities. 59 per cent of organisations worldwide report financial gains from sustainability investments. Additionally, 73 per cent of companies globally say there is strong alignment between technology and sustainability teams.

Faith Taylor, Senior Vice President, Global Citizenship and Sustainability, Kyndryl, said they are seeing more leaders embrace agentic AI and tech insights to drive impact.

"This shift - from compliance to action - means that when sustainability is embedded in the business, organisations across industries and geographies can make smarter, data-driven decisions that build resilience and spark innovation."