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

Sharma, Ashutosh (2025): Rethinking ESG Compliance: Why IBM Should Prioritize Pro-Industrial Sustainability Over Carbon Neutrality.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: ESG compliance, Pro-industrial sustainability, IBM energy strategy, AI-driven efficiency, Renewable energy challenges
• Subjects: L - Industrial Organization > L5 - Regulation and Industrial Policy > L53 - Enterprise Policy; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M14 - Corporate Culture ; Diversity ; Social Responsibility; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth

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