2024 · GS Paper 4 · Q7 · 20 marks

There is a technological company named ABC Incorporated which is the second largest worldwide, situated in the Third World. You are the Chief Executive Officer and the majority shareholder of this company. The fast technological improvements have raised worries among environmental activists, regulatory authorities, and the general public over the sustainability of this scenario. You confront substantial issues about the business's environmental footprint. In 2023, your organization had a significant increase of 48% in greenhouse gas emissions compared to the levels recorded in 2019. The significant rise in energy consumption is mainly due to the surging energy requirements of your data centers, fuelled by the exponential expansion of Artificial Intelligence (AI). AI-powered services need much more computational resources and electrical energy compared to conventional online activities, notwithstanding their notable gains. The technology's proliferation has led to a growing concern over the environmental repercussions, resulting in an increase in warnings. AI models, especially those used in extensive machine learning and data processing, exhibit much greater energy consumption than conventional computer tasks, with an exponential increase. Although there is already a commitment and goal to achieve net zero emissions by 2030, the challenge of lowering emissions seems overwhelming as the integration of AI continues to increase. To achieve this goal, substantial investments in renewable energy use would be necessary. The difficulty is exacerbated by the competitive environment of the technology sector, where rapid innovation is essential for preserving market standing and shareholders' worth. To achieve a balance between innovation, profitability and sustainability, a strategic move is necessary that is in line with both, business objectives and ethical obligations. (a) What is your immediate response to the challenges posed in the above case? (b) Discuss the ethical issues involved in the above case. (c) Your company has been identified to be penalized by technological giants. What logical and ethical arguments will you put forth to convince about its necessity? (d) Being a conscience being, what measures would you adopt to maintain balance between AI innovation and environmental footprint?

In short

The CEO should disclose the 48% emissions rise, redraw the 2030 net-zero pathway and balance AI growth with clean power, efficient models and accountable governance. The IEA's Energy and AI report (2025) projects data-centre electricity demand to roughly double by 2030.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
A 48% emissions rise since 2019, driven by AI data centres, tests whether a CEO who is also majority shareholder can act as a trustee for society and not only for himself.
(a) Immediate Response to the Challenges
•

Own the number

Disclose the rise and its causes openly, avoiding Motivated Blindness.

•

Re-baseline

Redraw the 2030 net-zero pathway with yearly targets, and audit data-centre power use.

(b) Ethical Issues Involved
The core dilemma is between Innovation and Competitiveness and Environmental Sustainability.
•

Greenwashing and conflict

Offsets can mask real emissions, and as majority shareholder I gain most from delay.

•

Climate injustice

Communities near data centres bear power and water stress; a Behanbox investigation found that Indian projects were cleared in nine days without impact assessment.

(c) Logical and Ethical Arguments on the Necessity of the Green Course
•

Logical

The IEA's Energy and AI report (2025) [committee/report] projects data-centre power demand to roughly double by 2030, so clean, efficient capacity is a cost advantage.

•

Ethical

The Brundtland Report (1987) [committee/report] bars borrowing from future generations; breaking our own pledge deserves a penalty.

(d) Measures to Balance AI Innovation and Environmental Footprint
•

Clean power

Sign long-term renewable contracts with storage; Infosys [current event] leaned on renewable power and efficiency to reach carbon neutrality in 2020.

•

Efficient AI

Smaller models, efficient chips and liquid cooling, with energy per model published.

•

Governance

Tie executive pay to emission targets, honouring directors' duty to the environment under Section 166(2) of the Companies Act, 2013.

Conclusion
A verifiable, renewable-powered and efficiency-first AI strategy keeps the company competitive while honouring its pledge.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Innovation vs Sustainability. Innovation vs Sustainability. Venn diagram: AI Innovation, Environmental Sustainability; overlap: Efficient, clean, accountable AI
Diagram: Innovation vs Sustainability

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Emerging Domain Dilemmas4 questions

Asked in 3 of 14 sittings since 2013

2013
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2014
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2015
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2016
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2017
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2018
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2019
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2020
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2021
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2022
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2023
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2024
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2025
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2026
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Question from the official UPSC Civil Services (Main) Examination 2024 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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