CDOs: Your AI is smart, but your ESG is dumb. Here’s how to fix it

Sustainability is no longer a peripheral concern but a strategic business imperative. As regulatory scrutiny, investor expectations, and consumer demand for environmental, social and governance (ESG) accountability intensify, organizations must leverage data to drive their sustainability initiatives. Yet, while businesses increasingly rely on data-driven decision-making, the role of chief data officers (CDOs) in sustainability remains underdeveloped and underutilized. 

According to Informatica’s CDO Insights 2025, 87% of data leaders expect increased investment in generative AI and data governance, yet only a fraction are leveraging these advancements for ESG efforts. Additionally, 97% of CDOs struggle to demonstrate business value from sustainability-focused AI initiatives. Similarly, Deloitte’s 2024 CxO Survey highlights that while CDOs prioritize AI and business efficiency, sustainability remains a secondary focus. 

However, embedding ESG into an enterprise data strategy doesn’t have to start as a C-suite directive. Developers, data architects and data engineers can initiate change at the grassroots level — from integrating sustainability metrics into data models to ensuring ESG data integrity and fostering collaboration with sustainability teams. By taking incremental yet impactful steps, data professionals at all levels can turn ESG data from an obligation into an asset. 

Key takeaways: 

• The current state of CDO engagement in sustainability and the missed opportunities
• Why data is critical for sustainability initiatives
• The challenges preventing CDOs from prioritizing ESG
• Actionable strategies for CDOs and their teams to drive sustainability initiatives

By embedding sustainability into enterprise data governance, CDOs can enable businesses to comply with evolving regulations, drive operational efficiency and create long-term value. The time has come for data leaders to move beyond traditional governance and analytics — sustainability is the next frontier for CDOs, and the opportunity to lead is now. 

The current state of CDO engagement in sustainability 

Despite the growing importance of sustainability, only 25% of CDOs are actively involved in overseeing sustainability metrics, highlighting a significant gap in data-driven ESG leadership. 

Limited representation of sustainability in CDO priorities 

A review of industry reports, surveys and conference agendas suggests that sustainability remains a niche topic within the data leadership community. Most data management conferences and forums focus on AI, governance and security, with little emphasis on ESG-related data strategies. 

Additionally, Deloitte’s ESG Trends Report highlights fragmented ESG data, inconsistent reporting frameworks and difficulties in measuring sustainability ROI as primary challenges preventing organizations from fully leveraging their data for ESG initiatives. 

If sustainability-related data projects fail to demonstrate a clear financial impact, they risk being deprioritized in favor of more immediate business concerns. 

Insufficient resource allocation for ESG data initiatives 

Managing sustainability data requires robust governance, analytics capabilities and cross-functional collaboration. However, only 44% of organizations cite AI and governance readiness as a priority for 2025, according to Deloitte, suggesting that ESG-aligned investments remain secondary. Additionally, 51% of data leaders anticipate needing 10 or more separate tools to support their data management needs, further complicating sustainability data integration. 

Examples of CDOs driving sustainability 

Despite these challenges, some organizations are proactively integrating sustainability into their data strategies. For instance: 

• Unilever: The company’s CDO has implemented a data platform to track supply chain emissions, aligning with net-zero targets.
• Salesforce: Uses analytics to monitor energy usage across global operations, embedding sustainability into corporate KPIs. 

The critical role of data in advancing sustainability initiatives 

Data is a powerful tool for sustainability, enabling organizations to measure, analyze and improve their environmental and social impact. Effective data governance and analytics can: 

• Drive efficiency in resource utilization
• Reduce waste
• Support sustainable business practices

The power of data in driving sustainability 

Key areas where data can make a significant impact: 

• Operational efficiency: Optimizing resource allocation through predictive analytics, reducing energy consumption and streamlining supply chains
• Product development: Designing sustainable products and minimizing lifecycle environmental impact
• Environmental risk management: Predicting and mitigating climate change effects on business operations
• Social impact: Leveraging data to address inequalities and measure the social impact of business activities 

Examples of actions architects and engineers can take now — Without waiting for a C — suite mandate 

• Data storage and retention: Implement data purge policies to avoid unnecessary storage costs and environmental impact
• Data transfer optimization: Reduce unnecessary data movement — avoid transferring entire datasets when only aggregates or deltas are needed
• Processing efficiency: Avoid overly frequent data refresh cycles; determine the business need before running intensive batch jobs
• Green software design: Optimize software for energy efficiency, reducing compute requirements where possible. 

💡 Tip: When defining sustainability KPIs, ensure they align with both regulatory requirements and internal business goals. This alignment can drive both compliance and competitive advantage. 

Challenges hindering CDOs from prioritizing sustainability 

Despite the increasing relevance of ESG, several factors prevent CDOs from fully embedding sustainability into their data agendas: 

•  Competing priorities: Many organizations prioritize short-term revenue growth and operational efficiency over long-term sustainability efforts. CDOs often face pressure to focus on business-critical functions such as AI adoption, cloud migration and cybersecurity, leaving little bandwidth for sustainability initiatives. Without clear incentives or mandates, sustainability-related data projects struggle to gain executive sponsorship. 
• Lack of awareness: Many CDOs and data professionals are not fully aware of how sustainability and ESG considerations can be effectively integrated into their data strategies. While AI governance and data security are widely discussed topics, sustainability remains less explored in data leadership circles. Without a clear understanding of how ESG data can drive both regulatory compliance and business value, many organizations fail to act. 
• Insufficient resources: ESG initiatives require investments in specialized talent, technology and governance frameworks. However, many organizations hesitate to allocate dedicated resources to sustainability data management, fearing uncertain returns. Without robust data infrastructure, sustainability reporting can become fragmented, leading to inefficiencies and compliance risks. 
• Complexity of measuring ROI: Unlike traditional business metrics, sustainability initiatives are often difficult to quantify in direct financial terms. While energy savings and waste reduction efforts may provide tangible cost benefits, the long-term reputational and regulatory advantages of ESG alignment are harder to measure. This lack of clear ROI can make it challenging for CDOs to justify sustainability investments to key decision-makers. 

To overcome these barriers, CDOs must proactively demonstrate the strategic benefits of sustainability-driven data initiatives, seek cross-functional collaboration and advocate for long-term investments in ESG data management. 

❓ Question: What steps can your organization take today to incorporate ESG considerations into data-driven decision-making, even without a formal mandate? 

Strategies for CDOs to integrate sustainability into their data agenda 

Embedding sustainability into a data strategy requires a deliberate shift in how organizations manage, govern and leverage their data assets. CDOs must ensure that sustainability considerations are integrated into every phase of data decision-making rather than treating ESG as an afterthought or compliance requirement. A well-designed strategy can help organizations balance business growth with environmental, social and governance (ESG) responsibility while improving operational efficiency. 

💡Integrating ESG into data decision-making 

CDOs should embed sustainability into data architecture, ensuring that systems are designed to optimize energy efficiency, minimize unnecessary data replication and promote ethical data use. For instance, cloud storage strategies can be adjusted to prefer providers with carbon-neutral commitments, and AI model training can be optimized to reduce computational costs. Additionally, CDOs should work closely with sustainability officers to align data collection and reporting processes with ESG goals, ensuring transparency and accountability. 

Beyond environmental impact, social considerations should also be incorporated into data strategies. This includes monitoring and improving diversity, equity and inclusion (DEI) initiatives through workforce analytics, ensuring ethical AI usage and tracking community engagement metrics. From a governance perspective, strong data governance frameworks can help enforce responsible AI practices, prevent data biases and ensure compliance with sustainability regulations and reporting standards. 

💡Establishing clear metrics and KPIs to track sustainability goals 

Measuring sustainability progress requires robust ESG metrics. CDOs should define KPIs such as: 

• Environmental: Carbon footprint reduction, energy efficiency improvements, water conservation efforts
• Social: Workforce diversity, fair pay analysis, ethical AI use and customer trust metrics
• Governance: Data privacy compliance, responsible AI adoption and ethical data stewardship

Companies like Unilever and Salesforce have developed real-time ESG dashboards that track sustainability KPIs across supply chains and business operations. Standardizing sustainability reporting ensures compliance with regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the SEC’s Climate Disclosure Rules. 

For organizations without a formal sustainability directive at the executive level, data leaders can still take meaningful steps to drive ESG progress: 

• Leverage existing data assets: Identify and repurpose existing data that aligns with sustainability metrics, such as energy usage, waste management and transportation emissions, without requiring new infrastructure investments. 
• Pilot internal ESG initiatives: Encourage grassroots efforts by introducing sustainability-focused data projects in specific departments, such as optimizing server utilization to reduce energy consumption or improving data storage efficiency. 
• Demonstrate business value: Frame sustainability initiatives as cost-saving measures that enhance operational efficiency. For example, reducing redundant data storage or optimizing cloud resource usage can lead to financial and environmental benefits. 
• Encourage cross-functional collaboration: Partner with IT, operations and finance teams to align data-driven sustainability efforts with broader business objectives. Highlight how ESG metrics can enhance risk management, regulatory compliance and brand reputation. 
• Advocate for change with data-backed insights: Use data-driven reports to showcase the benefits of sustainability initiatives, providing executives with tangible evidence that ESG improvements contribute to business growth and resilience. 

Even in the absence of a formal C-level sustainability mandate, proactive data leadership can lay the foundation for future ESG integration, helping businesses stay ahead of regulatory and market expectations. 

💡Investing in data science and AI for sustainability 

Advanced analytics and AI can unlock new opportunities for sustainability. Predictive modeling can help companies optimize energy consumption, while AI-driven insights can identify supply chain inefficiencies that lead to excessive waste. For example, retailers are leveraging AI-powered demand forecasting to reduce overproduction and excess inventory, significantly cutting down carbon emissions and waste. 

AI can also be used to enhance social and governance metrics, such as monitoring employee well-being through sentiment analysis, detecting unethical AI biases in hiring processes, or ensuring that AI-generated decisions align with corporate governance standards. 

💡Fostering a data-driven culture that prioritizes sustainability 

Creating a sustainability-focused data culture requires education and engagement across all levels of the organization. CDOs can implement ESG-focused data literacy programs to ensure that business leaders, data scientists and engineers understand the impact of their work on sustainability. Encouraging collaboration between data teams and sustainability departments ensures ESG considerations remain a priority throughout the data lifecycle. 

By embedding sustainability into enterprise data strategies, CDOs can play a pivotal role in driving long-term environmental and social impact while ensuring their organizations remain competitive and compliant in a rapidly evolving regulatory landscape. 

💡Building strong partnerships 

For CDOs to successfully integrate sustainability into their data agenda, they must collaborate beyond their immediate teams. Strong partnerships across departments and external organizations are key to ensuring a holistic approach to ESG initiatives. 
 
Internally, CDOs should work closely with sustainability, operations and marketing teams to align data-driven sustainability goals with overall corporate objectives. For example, marketing teams can leverage sustainability data to communicate responsible business practices to consumers, while operations teams can use insights to optimize resource efficiency. 
 
Externally, partnerships with NGOs, academic institutions and regulatory bodies can help CDOs stay ahead of evolving ESG expectations. Collaborating with research institutions can improve ESG data methodologies while engaging with regulators ensures compliance with changing disclosure requirements. Additionally, participating in industry consortiums or sustainability alliances can create opportunities for shared best practices and innovation in sustainable data governance. 

💡Advocating for change 

To elevate the role of sustainability in data leadership, CDOs must actively advocate for its inclusion in enterprise-wide decision-making. This requires influencing stakeholders, both internally and externally, by demonstrating the strategic value of ESG initiatives. 
 
Internally, CDOs should educate and inspire other business leaders by presenting data-driven insights that illustrate the long-term benefits of sustainability investments. Hosting internal workshops and knowledge-sharing sessions can help integrate sustainability into corporate culture. 
 
Externally, CDOs should participate in industry discussions and conferences, leveraging their expertise to shape the broader ESG discourse. Contributing to panels, publishing thought leadership content and engaging in policy discussions can help drive the agenda forward. Additionally, collaborating with peers from other organizations can lead to industry-wide improvements in sustainability data management. 

Data FTW! 

CDOs have a critical role to play in advancing sustainability through data-driven strategies. By leveraging expertise in data governance, analytics and AI, they can help organizations align ESG goals with business objectives, ensuring long-term success. 

Call to action for CDOs: 

📌 Prioritize ESG in your data strategy
📌 Invest in sustainable data governance frameworks
📌 Empower architects and engineers to implement sustainability measures without waiting for executive mandates
📌 Collaborate across departments to drive meaningful change

What specific action will you take today to integrate sustainability into your data strategy? 

Chitra Sundaram is the practice director of data management at Cleartelligence, Inc., with over 15 years of experience in enterprise data strategy, governance and digital transformation. She specializes in data-driven decision-making, cloud modernization and building scalable data governance frameworks to drive business success. Chitra is a member of the IASA CAF and SustainableArchitecture.org communities. She is interested in helping expand its membership with IT architects interested in ensuring ESG mandates in IT are met. 

This article was made possible by our partnership with the IASA Chief Architect Forum. The CAF’s purpose is to test, challenge and support the art and science of Business Technology Architecture and its evolution over time as well as grow the influence and leadership of chief architects both inside and outside the profession. The CAF is a leadership community of the IASA, the leading non-profit professional association for business technology architects.