The Intersection of Artificial Intelligence and Sustainability in the UK

Jacob Wan, ICSD Youth Ambassador

In recent years, the United Kingdom has experienced a notable transformation in its approach to sustainability, driven by growing awareness of environmental, social, and governance (ESG) concerns. Within this context, artificial intelligence (AI) — a technology capable of analysing vast datasets, predicting outcomes, and automating decision-making — has emerged as a key catalyst for sustainable change. The significance of AI in advancing ESG goals lies in its capacity to enhance efficiency, stimulate innovation, and foster responsible decision-making across both corporate and societal domains.

The Integration of AI and ESG

At the environmental level, AI contributes directly by improving energy efficiency and reducing waste. DeepMind, a subsidiary of Google, has collaborated with UK wind farms to employ AI algorithms that predict wind power output, substantially enhancing the efficiency of renewable energy generation (DeepMind, 2023). AI is also being utilised in the predictive maintenance of infrastructure such as wind turbines, ensuring consistent and sustainable energy production. Moreover, the application of AI in data centre energy management has proven effective in reducing cooling energy consumption and operational costs (Digital Realty UK, 2024).

From a societal perspective, AI is transforming healthcare services across the UK. The NHS has introduced AI systems for early disease detection and the creation of personalised treatment plans and will launch an AI knowledge base in 2024 to guide the ethical and responsible implementation of such technologies (NHS Digital, 2024). Similarly, AI’s role in education is fostering inclusive learning environments, supporting students with diverse learning needs.

At the governance level, AI technologies are helping UK organisations to improve transparency and accountability. Financial institutions, for instance, are deploying AI tools for compliance monitoring and fraud detection, ensuring adherence to regulatory and ethical standards (UK Parliament, 2023). Meanwhile, the government is developing an AI governance framework aimed at balancing innovation with effective risk management.

The Dark Side of AI in ESG

While AI presents unprecedented opportunities for advancing the UK’s sustainable development agenda, its deployment also brings significant ethical and practical challenges. In the absence of robust ethical design and regulatory safeguards, AI systems can inadvertently generate adverse environmental, social, and governance impacts.

Firstly, the energy consumption associated with AI infrastructure poses a potential obstacle to the UK’s carbon reduction objectives. According to an August 2025 report by The Guardian, plans for a £1 billion AI data centre in Lincolnshire are projected to emit 857,254 tonnes of CO₂ annually — equivalent to the combined emissions of five major airports (The Guardian, 2025). This example illustrates how inadequate design and regulation of AI infrastructure could negate its environmental benefits and jeopardise national carbon commitments.

Secondly, concerns surrounding data ethics and fairness in decision-making persist. A December 2024 NHS England report noted that AI is being used to identify patients who frequently utilise emergency services, reducing revisit rates by half in certain regions (NHS England, 2024). However, if training datasets are biased or decision-making processes lack transparency, such systems risk exacerbating inequalities in healthcare access and undermining public trust.

Finally, while the UK government’s AI Opportunities Action Plan and AI Governance Code launched in March 2025 aim to promote innovation and competitiveness, the policies have faced criticism for insufficient ethical and security oversight (Infosecurity Europe, 2025). This tension between encouraging innovation and ensuring accountability highlights the need for a coherent risk assessment and regulatory framework. Without it, the misuse of AI could erode public confidence and generate long-term governance issues.

Ultimately, the “dark side” of AI lies not in the technology itself but in the institutional and regulatory shortcomings that fail to keep pace with its rapid development. For AI to genuinely advance ESG goals, the UK must establish a coordinated framework aligning policy, ethics, and industry practice — one that balances innovation with accountability to ensure AI development aligns with legal, sustainable, and socially responsible principles.

Figure: Henrik Skaug Sætra (2022)

The AI ESG Protocol: A Framework for Action

The AI ESG Protocol offers a structured framework for systematically assessing the ESG impacts of AI. Its purpose is to help organisations identify, measure, and disclose the environmental, social, and governance effects of their AI and datarelated activities, while recommending practical improvements.

The framework comprises four key stages:

1. Initial Descriptive Statement: Analyses a company’s integration of AI and data in terms of operational responsibilities, strategies, governance, and ethical policies.

2. Material Impact Statement: Balances qualitative and quantitative data to identify the ESG impacts of AI activities through a risk matrix and materiality analysis.

3. Action Plan: Outlines specific measures to mitigate risks, capture opportunities, and enhance ESG performance.

4. Practical Assessment: Enables companies to implement the protocol in full or in part, depending on their ESG strategy.

Its distinguishing features include:

• Flexibility and adaptability: Customisable for different industries and compatible with existing ESG frameworks.

• Comprehensiveness: Encompasses both direct and indirect impacts.

• Dual materiality: Considers financial risks alongside sustainability outcomes, guiding companies towards actionable and measurable ESG initiatives.

Conclusion

AI offers the UK a transformative pathway towards sustainable development, improved social welfare, and enhanced governance transparency. Yet its potential can only be realised through a careful balance of ethics, regulation, and innovation. The AI ESG Protocol provides a pragmatic route for businesses to advance technologically while remaining committed to sustainability and responsibility. As the UK continues to embrace AI, ensuring that technological progress serves as a genuine force for environmental protection, social advancement, and good governance will be paramount.

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References

The Guardian (2025). “Planned AI data centre in England could cause five times emissions of big airport.” theguardian.com

NHS England (2024). “NHS AI giving patients better care and support.” england.nhs.uk

Infosecurity Europe (2025). “Reviewing UK AI regulation.” infosecurityeurope.com

DeepMind (2023). “Using AI to fight climate change.” deepmind.google

Digital Realty UK (2024). “Sustainable data centre AI.” digitalrealty.co.uk

UK Parliament (2023). Governance of Artificial Intelligence (AI). publications.parliament.uk

Sætra, H. S. (2022). The AI ESG Protocol Structure. ResearchGate