Rethinking ESG Compliance: Why IBM Should Prioritize Pro-Industrial Sustainability Over Carbon Neutrality

Ashutosh Sharma

MPRA Paper from University Library of Munich, Germany

Abstract: This paper critically evaluates IBM's pursuit of Environmental, Social, and Governance (ESG) compliance in light of its operational realities and economic constraints. While IBM has made ambitious sustainability commitments, including achieving net-zero emissions by 2030, this study highlights the financial and technological challenges posed by such initiatives. It argues that ESG mandates often prioritize optics over substance, forcing high-energy industries like IBM’s AI and cloud computing sectors to adopt costly and inefficient renewable energy strategies. The paper proposes a Pro-Industrial Sustainability Model, emphasizing economic growth, energy security, and AI-driven efficiency as alternatives to ESG conformity. Through comparative scenario modeling, the study demonstrates how this approach can enhance IBM's competitiveness while mitigating regulatory risks. The findings suggest that reframing sustainability as an industrial efficiency strategy offers a more pragmatic path forward for IBM.

Keywords: ESG compliance; Pro-industrial sustainability; IBM energy strategy; AI-driven efficiency; Renewable energy challenges (search for similar items in EconPapers)
JEL-codes: L53 M14 O33 Q55 Q56 (search for similar items in EconPapers)
Date: 2025-02-06
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