Deloitte is pioneering the use of artificial intelligence to help carbon-intensive industries reduce their environmental footprint, shifting the focus from traditional carbon capture methods to a more integrated and economically grounded strategy. The initiative targets the steel, cement, and oil and gas sectors—industries famously difficult to decarbonize—by embedding machine learning and advanced analytics into their core operations to enhance efficiency and cut emissions at the source.
This strategy represents a significant evolution in corporate climate action, moving beyond compliance to position sustainability as a central driver of economic performance. By leveraging AI to optimize everything from energy consumption to supply chain logistics, the approach aims to deliver scalable and sustainable decarbonization that aligns environmental responsibility with financial incentives. According to Daniel Gribbin, Director of Sustainability at Deloitte Middle East, this allows clients to attract green financing, build investor confidence, and future-proof their operations against emerging climate risks.
A Holistic Decarbonization Strategy
The core of the initiative is a departure from viewing carbon capture as a standalone solution. Instead of simply bolting on systems to trap emissions after they are produced, Deloitte is helping industrial clients re-engineer their processes for inherent efficiency. This holistic view recognizes that the largest sustainability gains are often found by optimizing the vast, interconnected web of daily operations. AI serves as the key enabler, capable of analyzing complex systems in real time to identify and act on opportunities for emission reductions that would be invisible to human operators.
This comprehensive strategy extends to consulting on the complex financial and regulatory landscapes that surround green investments. The firm assists clients in evaluating renewable energy opportunities, engaging with policymakers to shape favorable frameworks, and aligning their reporting with stringent international standards. By integrating AI across these diverse facets, from the factory floor to the boardroom, the goal is to empower industrial giants to achieve meaningful, lasting, and economically viable decarbonization.
Core AI and Analytics Applications
The practical application of AI is centered on making industrial processes smarter, more predictable, and less wasteful. This involves deploying sophisticated digital tools that monitor, model, and manage operations with a level of precision that was previously unattainable.
Optimizing Energy and Maintenance
In hard-to-abate sectors, energy is both a primary cost and a major source of emissions. Machine learning models are instrumental in tackling this challenge by optimizing the overall energy usage of industrial processes. These systems analyze vast streams of data from sensors on machinery and environmental controls, making real-time adjustments to minimize electricity and fuel consumption without sacrificing output. Furthermore, AI is crucial for predictive maintenance, which forecasts equipment failures before they occur. This reduces costly downtime and prevents the inefficient operation and wasted energy that often accompany machinery on the verge of a breakdown.
Rethinking the Supply Chain
An industrial company’s carbon footprint is not confined to its own facilities. The transportation of raw materials and finished goods is a significant source of emissions. AI algorithms are being used to improve supply chain efficiencies by optimizing logistics, from route planning to inventory management. By analyzing variables like traffic patterns, fuel costs, and delivery schedules, machine learning can identify the most carbon-efficient ways to move materials, collectively lowering the overall environmental impact of the entire value chain.
Connecting ESG to Economic Performance
A key pillar of Deloitte’s approach is framing environmental, social, and governance (ESG) criteria not as a corporate burden but as a vital component of economic strategy. Gribbin emphasizes that ESG is no longer merely a reputational or compliance exercise; it has become a critical driver of financial success. Companies that demonstrate credible and robust sustainability performance are better positioned to attract green financing, meet the increasingly stringent climate requirements of global supply chains, and secure the long-term confidence of investors.
To achieve this, Deloitte works with organizations to build ESG frameworks and reporting structures that align with globally recognized standards. This ensures transparency and credibility, allowing businesses to clearly communicate their progress to stakeholders. The process often reveals new market opportunities and operational efficiencies that were previously overlooked. By embedding sustainability into core strategy, the firm helps clients use ESG as a lever for building resilience, mitigating risks, and creating lasting economic value while simultaneously advancing their decarbonization goals.
Supporting National and Corporate Climate Goals
This work is being implemented in regions with ambitious national climate targets, such as the Middle East. Deloitte is contributing to initiatives like the UAE’s Hydrogen Leadership Roadmap, which aims to establish the nation as a global hub for low-carbon hydrogen by 2031. The firm advises stakeholders on hydrogen economics, regulatory frameworks, and supply chain development, helping to connect the technical, commercial, and policy dimensions required to transition pilot projects into commercially viable industries.
At the corporate level, the firm supports organizations in moving from ambition to tangible action. This includes assisting companies in setting science-based targets and meticulously mapping their Scope 1, 2, and 3 emissions—which cover direct emissions, indirect emissions from purchased energy, and all other indirect emissions from the value chain, respectively. The process extends to developing comprehensive decarbonization pathways, which are long-term plans that integrate renewable energy strategies, circular economy models, and robust ESG reporting systems. A crucial element of this support involves governance and capacity building, ensuring that leadership teams and boards have the necessary structures and knowledge to maintain momentum and drive continuous improvement on their path to net zero.
