The AI Opportunity: Unlocking Climate Solutions and Productivity in a Volatile World

As the world grapples with the need to reduce greenhouse gas emissions (GHG) and transition to a more resilient, sustainable future, S2G believes that AI stands out as a tool for driving both financial and environmental benefits. Its ability to enhance business models and ultimately accelerate solutions to market is emerging as a powerful enabler of progress in climate action and human health.

As we face the realities of climate change, S2G believes we must not only focus on mitigating its most severe impacts but also adapt to the changes that are already unfolding. From applications across smart grids and energy-efficient mobility or buildings to precision agriculture or optimized waste-free supply chains and maritime decarbonization and beyond, S2G’s perspective is that AI holds the potential to revolutionize the way we approach both climate change mitigation and adaptation.

AI is playing a pivotal role in driving core business model innovation, helping companies to discover and develop cost-effective, efficient, and high-quality products that are more environmentally-friendly and health-conscious. It is also enhancing integral functions across organizations by maximizing the use of existing resources, enabling companies to achieve more with less.  From sales automation and customer service to marketing and content creation, AI is helping to optimize these functions, empowering businesses to differentiate themselves in competitive markets.

This report draws on extensive industry research, interviews with portfolio companies, and insights from leading corporations utilizing AI to advance climate and health goals. S2G has distilled five key use case themes that demonstrate AI’s cross-sector potential to enhance business models throughout our portfolio and across industries. While each sector presents distinct opportunities, these themes highlight shared strategies and applications that can be leveraged across the food & agriculture, oceans, and energy sectors.