Sustainable IT might not be an entirely new concept, but it’s gaining increased attention in the modern world. Studies show that 78% of US consumers believe living a sustainable lifestyle is important, and similar trends are emerging worldwide.
These consumer preferences, along with growing concerns about energy prices, carbon emissions, and environmental impact, are driving a sustainable revolution among companies. This is particularly true in the IT industry. CIOs and CTOs are becoming increasingly involved in the “sustainability” component of broader ESG projects.
After all, as data centers increase in size, and technology grows more advanced, IT resources are using increasing amounts of energy. The more your business digitally transforms, the greater your potential impact on the planet.
Sustainable IT initiatives are how companies reduce their footprint, improve their reputation, and protect the world around them without compromising on innovation.
Here’s everything you need to know about the current sustainable IT landscape.
What is Sustainable IT? The Basics
So, what is sustainable IT? In a broad sense, this catch-all term refers to the efforts companies make to minimize the impact their technology has on the environment. A sustainable IT strategy covers all of the efforts made by a business to lower their environmental footprint.
This could mean investing in more eco-friendly products and services, produced with greener materials, and designed with durability in mind. It could also involve more effectively planning how technologies are used, and disposed of in a business environment.
Sustainable IT strategies can even focus on a specific area, like reducing the data center energy consumption with sustainable sources of electricity.
Some of the core components of sustainable IT include:
- Sustainable IT manufacturing: Using IT manufacturing methods to produce products with a reduced impact on the environment. This could include everything from minimizing the harmful chemicals used in products, to making them more energy efficient.
- Sustainable IT management and use: This looks at how companies manage and use IT assets. It involves reusing, recycling, and repairing assets when possible, and implementing policies for the eco-friendly use of tools, such as finding ways to reduce energy consumption.
- Sustainable IT disposal: Sustainable IT disposal looks at how companies dispose of technology at the end of their lifecycle. It ensures old equipment is properly recycled, donated, or destroyed in a way that won’t harm the environment.
What Elements of IT are Covered by Sustainable IT?
Clearly, investing in sustainable IT requires businesses to take a holistic approach. Virtually every aspect of the information technology landscape has the potential to be made more sustainable. Just consider all of the components that make up the average IT infrastructure.
There are networking tools, storage systems, computing devices, power systems, and data center equipment to consider. For many organizations, the cloud has also become an important consideration. While the shift to cloud services is often seen as an excellent way to reduce energy consumption, it’s worth remembering the cloud still needs to be powered by technology.
This is why a number of major cloud providers are now investing in more sustainable infrastructure for their ecosystems, using renewable resources for energy, and minimizing waste.
As the digital landscape has evolved, the elements covered by sustainable IT have grown too. Today’s businesses need to consider their network and computing systems, edge computing and IoT devices, and even the resources they use for artificial intelligence.
Why is Sustainable IT Important? (Now More than Ever)
A sustainable approach to business processes has always been essential to protecting our world and its resources. However, demand for sustainable IT has begun to grow. Growing evidence that IT is having a profound effect on our environment is driving new movements.
Technology may have the ability to positively impact our planet in a variety of ways, but it can also have unintended consequences. IT accounts for around 3% of global CO2 emissions, more than Portugal, France, Italy, and Spain combined.
This footprint is growing, thanks to a rising demand for new electronic devices, increased computing power, and data storage. There’s also been a massive increase in the electricity needed to power innovative solutions, like generative AI and machine learning systems.
Government groups have even begun to push new initiatives.
For instance, the U.S. Energy Act of 2020, with its increased demands for Power Usage Effectiveness, has pulled sustainability to the forefront. Now, Gartner predicts that by 2025, 50% of CIOs will be focused on sustainability in their business operations. What’s more, by 2027, the analyst believes 75% of organizations will have implemented a sustainability program for the data center.
The Benefits of Sustainable IT
The benefits of a sustainable IT strategy extend much further than most companies realize. The right initiatives don’t just have a positive impact on the planet, or help companies remain compliant with evolving regulations. They also deliver a number of other advantages.
According to a Capgemini report into 1,000 global organizations, sustainable IT might not be a priority for businesses yet, but that is starting to change. The report found only around 43% of executives are aware of their organization’s IT footprint, and only 18% have a comprehensive sustainability strategy.
However, the businesses with a robust strategy for sustainability saw improved ESG scores, a better brand image, and higher levels of customer satisfaction.
Some of the biggest benefits of sustainable IT include:
1. Lower Environmental Impact
Perhaps the biggest benefit of sustainable IT is the opportunity to reduce your negative impact on the planet. Technological devices rely heavily on a number of crucial resources to run. What’s more, when they’re disposed of inappropriately, they can contaminate the earth around us.
One study found that around 5.3 billion electrical devices would be discarded in 2022, placing significant pressure on landfills. An approach to sustainable IT allows companies to invest in making the world a better, more robust place.
2. Reduced Costs
Sustainable IT practices may seem expensive and complex to implement at first, particularly if you’re replacing technology with more efficient solutions. However, the right investments can have a significant impact on your operational expenses.
A simple switch to using low-power mode on equipment can reduce energy consumption by 23%. Not to mention, an approach to reusing and repairing equipment, rather than replacing it with new solutions, means you’re less likely to spend a fortune on new technology.
As the economy continues to struggle, and energy prices continue to increase around the world, a sustainable strategy could assist businesses in becoming more cost effective.
3. Improved Reputation
Taking a sustainable approach to IT doesn’t just ensure you can feel better about your business processes. It also impacts your relationship with customers, shareholders, and potential employees. Your approach to sustainability influences how everyone from investors to team members sees your business. This is crucial for long-term growth.
What’s more, 71% of job seekers are now looking for chances to work with environmentally friendly employers. Around 1 in 3 employees say they would even accept lower pay if it meant working with a company with the right ESG initiatives.
4. Competitive Advantage
Standing out in today’s competitive world is difficult. It’s almost impossible to differentiate yourself with just product features and pricing strategies alone. Instead, companies need a way to connect with consumers on a deeper level. A sustainable strategy can help with this.
One 2021 study found that 50% of customers are willing to pay more to buy from brands who align with their values related to sustainability. What’s more, customers in both the B2B and B2C world are more likely to remain loyal to sustainable brands.
5. Opportunities to Innovate
Implementing a comprehensive sustainable IT program requires companies to take a closer look at their IT infrastructure, and audit their existing systems. During this process, business leaders can begin to pinpoint opportunities to innovate sustainably.
For instance, as mentioned above, moving to the cloud can help to reduce your CO2 emissions by 59 million tons per year. When employees can work from home (or anywhere), there are fewer cars on the road, and fewer office locations consuming power.
Getting Started with Sustainable IT Initiatives
While a sustainable IT strategy can deliver a host of benefits, it does have challenges to overcome too. Explaining the value of sustainability to shareholders can be complex. Choosing the right suppliers and vendors to work with can be time-consuming.
Often, the key to success is establishing the right strategy. Rather than simply diving into new IT purchases because they seem to offer sustainability, companies need a plan for how to optimize their ecosystem. This means carefully assessing the entire IT infrastructure.
It also means implementing a method for tracking the impact of sustainability measures. Data management platforms and tools capable of monitoring metrics about energy usage can provide an insight into the true value of each strategy.
Companies need to:
- Set a foundation: Establish the foundations of a sustainability initiative by first assessing your environmental footprint. Create a strategy that aligns with your global goals for cost savings, efficiency, and environmental impact.
- Evaluate solutions: Work with a partner to choose vendors and companies that offer technologies capable of assisting with your sustainable IT goals. Partner with organizations that share the values and visions of your company for ESG initiatives.
- Create governance procedures: Outline key information and create documents that guide employees towards the right sustainable actions and purchases. Governance procedures will help to keep everyone on the same page about eco-friendly IT usage.
- Operationalize the plan: Embed sustainability into the software and hardware architecture, and begin developing a culture of sustainability among employees. Encourage and empower team members to work more efficiently and sustainability, and gather feedback.
Spreading awareness about the need for IT sustainability is half of the battle. Only with the right shareholder alignment can companies begin to build comprehensive strategies for success. In the Capgemini report mentioned above, the analyst found half of organizations had an enterprise-wide sustainability in place.
However, only 18% of those companies said their strategy was comprehensive, with well-defined goals, target timelines, and procedures. Additionally, only a third of organizations had established policies mandating the reporting of their IT carbon footprint.
It’s Time to Embrace the Future of Sustainable IT
Ultimately, sustainable IT isn’t a new concept. It’s been a topic of discussion among leaders in the technology space ever since the world began to digitally evolve. However, the concept of sustainability in general is something that both people and organizations need to prioritize now, more than ever. The world around us is changing, and we should all be on the path to a zero-net future.
With concerns about the environment and climate change rising among world leaders and society at large, companies no longer have an option to ignore the impact of sustainable IT. Virtually every leading business has its own sustainability initiative in place, often underpinned by a wider ESG strategy. The only way to stay ahead, and compete in this space, is to keep pace.
