A MIT Sloan Management Review study shows that 90% of executives think sustainability is important - but only 60% have a sustainability strategy.
It’s a problem when organizations are staring aggressive energy and carbon-emission reduction goals in the face without a comprehensive plan - or, worse, results - to show for it.
Data traffic has been on a rapid growth path. It was exponentially increasing even before the explosion we’re expecting from the use of generative AI. In short, there is an expansive appetite for more data. This could have a significant carbon footprint depending on the source of energy fueling that data and is a concern for the companies who haven’t yet set a sustainability strategy, as well as those touting ambitious net zero emission strategies.
There are three components companies should overcome when building a sustainability strategy:
- Hitting net zero emissions across the organization (including supply chains)
- Gaining control over sustainable data management and company investments
- Preparing and acting on new and pending compliance regulations
Here is how your organization can implement sustainable initiatives to achieve the goals companies are proactively setting and adhere to the regulations governing bodies are putting in place to help protect our environment.
Hitting net zero emissions
Organizations must get their supply chain emissions to zero to be truly classified as net zero. Many companies have set a goal of achieving zero emissions by 2040 or 2050 (2030 is not as common). However, drastic, sudden changes will not happen overnight. The commitment to sustainability and, specifically, achieving net zero emissions often begins with internal measures, but achieving meaningful progress requires extending efforts throughout the entire ecosystem of a company. It's not merely about reducing carbon emissions within the walls of an organization, but understanding and lessening the environmental impact of every link in the supply chain.
Forward-looking companies are adopting a holistic approach, working collaboratively with suppliers and partners to align objectives and strategies. This tact ensures that sustainability is not merely a buzzword or a checked box but, in fact, an integrated aspect of the entire business model. Innovation in technology and infrastructure can play a pivotal role in achieving ambitious emission reduction goals.
The first step to reaching net zero emissions is to conduct an assessment that will quantify the emissions across all scopes of your company and your supply chain while identifying areas for improvement. There are emerging standards such as PACT which can help measure the impact of digital products standardized and at scale. Then, set ambitious targets based on that assessment to transition to renewable and efficient energy sources. The company should engage suppliers to reduce emissions, invest in green technologies, and implement circular economy practices throughout its operations. Employee awareness and involvement, collaboration with industry peers, and transparent reporting on sustainability efforts are essential. Investing in verified and science-based offsetting projects both nature and technology based further contribute to the net-zero emissions goal. Continuous monitoring, regular audits, and advocacy for supportive regulations complete the strategy, allowing the company to make significant progress in achieving net-zero emissions, both internally and across its supply chain.
Companies, including their extensive supply chains, must be aligned with sustainability goals. The failure to do so not only hamper environmental efforts but also exposes organizations to reputational risks and potential regulatory backlash.
Gaining control over sustainable data management and company investments
In an era dominated by data, the environmental impact of digital operations cannot be understated. Data traffic necessitates a critical examination of the sustainability of data routes. Companies must scrutinize the energy sources powering their data centers and transmission networks to ascertain the true environmental cost of their operations.
To gain control over sustainable data routes and company investments, companies should prioritize energy-efficient data management, optimizing data center operations and exploring green data center technologies.
Additionally, the company should move towards cloud services that prioritize sustainability in their operations. In terms of investments, aligning with Environmental, Social, and Governance (ESG) criteria is crucial. This includes actively engaging in ESG investing, exploring green bonds or sustainable funds, and collaborating with financial institutions that prioritize environmentally responsible investments. By integrating these practices, a company can ensure that its data infrastructure and financial portfolio align with sustainability goals, contributing to a more environmentally conscious and responsible business model.
This is why our organization has been laser-focused on these issues. BT just unveiled an ambitious new “Global Fabric” network-as-a-service model. Global Fabric is an entirely new network built with the latest energy-efficient hardware. BT estimates that Global Fabric will use 79% less electricity than its current global networks, helping its enterprise customers reduce their Scope 3 emissions. Moreover, by offering near instant provisioning of multi-cloud connectivity, it will make it easier for IT teams to switch their digital workloads to the cloud service provider offering the best environmental performance.
Gaining control over IT emissions requires a strategic approach to technology investments, ensuring that every aspect of the infrastructure aligns with sustainability goals. By incorporating energy-efficient technologies and investing in renewable energy, companies can significantly reduce their carbon footprint associated with data operations.
Acting on new and pending compliance regulations
The regulatory landscape around sustainability is rapidly evolving, with governments worldwide introducing new and stricter compliance measures. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD), requires disclosures covering the entire spectrum of sustainability topics for companies operating within the EU. Companies have a critical need to prepare for and adapt to these types of regulations. Companies that do not proactively adapt to these changes face legal and financial repercussions, not to mention the damage to their reputation. Beyond avoiding penalties, compliance with environmental regulations is integral to building a responsible and resilient brand.
Aside from just staying current on regulations, it’s important for companies to stay ahead of the regulatory curve. This involves actively monitoring new and pending compliance regulations, understanding their implications, and adjusting corporate strategies accordingly. By integrating compliance considerations into sustainability planning, organizations can navigate regulatory challenges smoothly and demonstrate a commitment to ethical and responsible business practices. Companies are encouraged to view compliance not as a burdensome obligation but as an opportunity to demonstrate commitment to environmental stewardship.
The urgency of addressing sustainability challenges has never been more apparent. The gap between recognizing the importance of sustainability and implementing a comprehensive strategy poses a significant risk to organizations. Achieving sustainability goes beyond mere rhetoric; it requires a multifaceted approach encompassing net-zero emissions, sustainable data routes, and proactive compliance with evolving regulations. The integration of sustainability into the core of business operations is not only feasible but essential for navigating the complex landscape of corporate responsibility in the 21st century.
