Exclusive: How Celonis customers achieve sustainability goals through AI application

In recent times, the global push for sustainability has become more urgent than ever, with several businesses navigating new complexities in reducing their carbon footprint.

Software company, Celonis, is taking big strides in this movement. Their Global Head of Sustainability, Janina Bauer, has explained how they enable clients to meet sustainability goals through data-driven processes and AI applications.

"At Celonis, we believe it is so important to use our technology to help customers reduce their carbon footprint and make their processes more sustainable," Bauer said during an interview.

Over the past three years, Celonis has developed solutions to "address environmental and social aspects within supply chains", in a way that is both realistic and achievable.

Using AI for Sustainability

Artificial intelligence is becoming a key player in the sustainability landscape. Bauer highlighted the dual role of AI in optimising both business efficiency and environmental responsibility. She acknowledged, "AI has become a frequently mentioned topic among our customers, especially those exploring how AI can be used for good in sustainability use cases."

However, there are concerns about the energy required to run AI systems, which could counter sustainability efforts. Celonis has integrated AI into its operations to unify fragmented data within businesses, fill information gaps, and identify opportunities for environmental improvement. The company's material emissions app, for example, provides specific emissions data linked to different materials, enabling clients to make more informed decisions.

"When people use AI in sustainability, the environmental impact isn't always the first question they ask," Bauer explained. "But we must consciously consider both the cost and environmental impact of AI."

Tackling Supply Chain Emissions and Compliance

Managing emissions, especially Scope 3 emissions—those generated indirectly by suppliers—remains a major hurdle for businesses.

"I don't know of any company that has fully solved the challenge of Scope 3 emissions from day one," she acknowledged. Celonis helps businesses address these challenges by using algorithms to automate data collection and bridge gaps in emission reporting.

Bauer noted that companies are often overwhelmed by a "regulatory maze" with new rules such as the US Deforestation Act or European sustainability mandates.

"We often engage with process teams before sustainability teams, as they are the ones dealing with procurement and logistics data," she said.

Through its partnerships with platforms like EcoVadis and Climatiq, Celonis offers clients streamlined ways to manage data and comply with regulatory standards. "We bring in partners with specific expertise to build apps on top of our platform, adding real value," Bauer added.

Sustainability and Profitability: A Balancing Act

Many companies struggle to reconcile sustainability with profitability. However, Bauer emphasised that the two are interdependent. "In reality, you can't save the planet without financial means. A profitable business is essential to support sustainable initiatives," she said.

Bauer illustrated this balance with logistics. "Companies want to reduce costs and deliver quickly, but they also want to be sustainable. AI helps them find win-win situations, like cutting emissions while lowering costs," she explained. Bauer added that businesses increasingly see sustainability as a driver of customer loyalty and market value.

"Sustainability efforts, when properly communicated and calculated, become part of a company's internal story and strategy," Bauer said. This, in turn, helps companies maintain profitability while meeting environmental goals.

Partnerships, Trust, and the Future

For Bauer, trust plays a pivotal role in sustainability. "We see sustainability as deeply connected to trust. Customers, suppliers, and employees trust us to do the right thing," she explained. Celonis reports to its Chief Legal Trust Officer, underscoring the importance of trust in its operations.

Bauer also pointed out that partnerships are essential for progress. "No company can solve sustainability challenges alone. Collaboration with partners and suppliers enables us to provide robust solutions," she said. Celonis has formed strong partnerships with companies like IntegrityNext and Ventum, combining expertise to help clients meet specific regulatory demands.

The path to sustainability, however, is not without obstacles. "Change management is difficult, and people don't like being told what they should or shouldn't do," Bauer admitted. She believes that creating positive experiences for employees and clients is crucial in driving change.

Looking Ahead

Bauer offered insight into the road ahead, predicting that the next five years will determine how effectively companies integrate sustainability into their core operations.

"We hope companies won't need a separate sustainability department anymore because it will be embedded in every area," she said.

However, despite challenges, she remains cautiously optimistic.

"While some companies may miss their 2030 targets, we'll see more regulatory pressure and possibly environmental events that will accelerate action," Bauer said.

She concluded with a reminder of the interconnectedness between business, sustainability, and trust. "Ultimately, it's about creating sustainable value that benefits both the planet and business. And if companies don't act now, the planet will find a way to force change."