Current economic instability combined with contrasting political views on climate change creates significant hurdles for IT leaders committed to sustainability. These leaders need a resilient technology strategy capable of adapting to both economic and political shifts.
Industry Insights on IT Sustainability
Sujata Kukreja, General Counsel and Chief Compliance Officer at Expereo, emphasizes the importance of prioritizing sustainability through innovative practices. She highlights the necessity of addressing the operational costs linked to inefficient data centers, stating, “Investment is crucial, and we are acutely aware of our data center’s energy consumption.”
Although reductions in emissions may require significant investment, Expereo remains dedicated to this goal. The procurement team is increasingly pursuing renewable energy solutions, aiming for a long-term strategy, particularly with the rise of artificial intelligence (AI). Kukreja adds, “Investors will not support us unless we operate with purpose.”
Crown Worldwide also plans to persist with its emissions reduction strategies despite facing intensified economic pressures. CIO Chris Davis-Pipe leads an enterprise IT team of 70 across 50 countries, and he has focused on increasing visibility into carbon usage. “We are implementing solar energy in warehouses and shifting from our own data centers to cloud-based services,” Davis-Pipe explains.
Customer demand for transparency in emissions reduction has grown, with Crown’s carbon-accounting platform now estimating that 66% of its emissions were accounted for by the end of 2023. The organization continues to invest in software and services while its IT teams shift focus toward data integration and analytics.
Crown has also empowered local branches to enhance IT systems within a defined governance structure, emphasizing agility and efficiency. “While we have essential global systems, we now encourage local problem-solving,” Davis-Pipe notes.
Automation and AI are avenues of interest for supporting business objectives alongside net-zero initiatives, he asserts.
Doubling Down on Demand
Sarwar Khan, Sustainability Director at BT Group, reports that the company is committed to achieving net zero, alongside many of its partners and customers, despite ongoing challenges. “The pressure to reduce environmental impact remains a priority,” he affirms.
Although small and mid-sized businesses face substantial obstacles in reaching sustainable practices by 2050, they continue to seek support from larger organizations, such as BT. Khan notes that corporate entities are increasingly realizing the necessity of operationalizing sustainability.
BT has advanced its net-zero targets, aiming for 2031 for its operations and 2041 for its customer and supply chain commitments. This decision was driven by a comprehensive analysis of electric vehicle transition and overall supply chain emissions.
With approximately 70% of BT’s emissions classified as Scope 3, it’s critical to enhance efficiencies throughout the supply chain. The company is now scrutinizing Tier 1 contracts to ensure they align with science-based net-zero targets.
Additional advocacy is underway, including collaborations with competitors in pursuit of sustainability goals, as the demand for power in data centers continues to rise.
Jon Healy, COO of Keysource, reaffirms that organizations are modifying their net-zero strategies and are increasingly urging suppliers to disclose their emissions data. The need for sustainability is evident, as companies realize that failing to address emissions could hinder customer acquisition.
Healy emphasizes that understanding emission sources and their impacts is vital for organizations to recognize potential savings.
Mary Jacques, Director of Global ESG and Regulatory Compliance at Lenovo, concurs, noting a surge in focus on Scope 3 emissions in response to customer demands. This commitment persists despite economic challenges, as organizations must invest in building sustainable AI infrastructure.
Future Prospects for Emissions Reduction
While economic pressures challenge plans for emissions reduction, many experts believe that there is ongoing progress below the surface. Michael O’Hara, founder of Techies Go Green, remarks on the shift away from exaggerated green initiatives towards realistic sustainability expectations.
O’Hara compares the current state of sustainability to the internet boom of the 1990s, suggesting that while there are challenges, a gradual awakening toward genuine sustainability is underway. “Short-term focus can impede long-term profitability,” he cautions.
O’Hara acknowledges that although optimism exists among members of Techies Go Green, there’s a noticeable delay in implementing necessary investments, indicating that previous net-zero goals may have been overly ambitious. However, he anticipates that sustainability will become ingrained in corporate culture as transparency and data improve.
Ben Brial, founder of Cycloid, highlights advancements in carbon accounting, cautioning, however, that shortcuts in sustainability initiatives could divert focus from genuine innovation. “Before AI, there was a mentality of growth at any cost; now, organizations are encouraged to explore sustainable options,” he elaborates.
Brial argues for a paradigm shift towards using fewer resources, suggesting that innovative strategies can lead to a more sustainable future without compromising growth. “Finding alternative ways to achieve our objectives is now a viable strategy,” he concludes.
