Key Impact Points:
- Transparency is foundational: Stakeholders demand clear reporting on environmental and social impacts, even when they may disagree with the company’s actions.
- Regulations drive action: Compliance with global and regional mandates on GHG emissions and ESG transparency is increasingly vital for businesses.
- AI presents dual roles: While AI’s energy demands challenge sustainability, it also offers tools to improve data transparency and operational efficiency.
Transparency: The Cornerstone of Trust
Cassandra Garber, Chief Sustainability Officer of Dell Technologies, emphasizes that sustainability is more than a corporate responsibility—it’s a trust-building tool. According to Garber, transparency satisfies stakeholders’ growing expectations: “Even if they’re not in agreement or alignment with what you’re doing, they want you to be transparent about it.”
Compliance: From Voluntary to Mandatory
Garber highlights the regulatory push shaping sustainability practices: “Transparency on greenhouse gas emissions in particular is now regulated in multiple countries and, increasingly, in several states. So data transparency in general on environmental and social issues is becoming a compliance topic.”
Dell’s internal approach, through its “OMG” (operating model and governance), ensures ESG accountability across its 120,000 employees. Each business unit identifies risks, sets priorities, and aligns with the company’s overarching strategy. “Our internal operating model is the key to our transparency,” Garber explains.
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AI: Both a Challenge and a Solution
Generative AI’s resource demands risk derailing sustainability goals. “The energy required to run these large language models is significant,” Garber warns. However, Dell is leveraging AI to boost energy efficiency and manage renewable energy sources effectively.
Garber underscores the importance of transparency in navigating AI’s challenges:
“If we recognize that we are not going to meet the goal—which many of us in the industry are openly talking about—transparency is the epitome of how you explain that to regulators and to customers.”
The Bigger Picture: Dell’s ESG Strategy
Dell’s sustainability goals include achieving net-zero GHG emissions across all scopes by 2050, validated by the Science Based Targets Initiative (SBTi). The company also discloses carbon footprints for its products, tackling industry-wide inconsistencies in reporting methodologies. “What is included in your carbon footprint becomes critical to explaining what the number is,” says Garber.
Building Trust Through Honesty
Ultimately, Dell’s approach to sustainability rests on being upfront about its successes and challenges.
“For us, it’s about showing the impacts of AI, showing how we’re addressing them,” Garber concludes. “Showing what impact that has on our goals and what we’re doing as an industry to do our best to stay on track.”
Transparency, compliance, and AI might seem like a complex trio, but for Dell, they’re the MVPs of sustainability.
