Strategies for boosting IT sustainability in the business world by 2025

Businesses increasingly prioritize sustainability, yet few strictly use technology for attaining these objectives. A report by Kyndryl and Microsoft revealed that merely 21% of organizations harness technology to achieve their sustainability goals, despite 84% highlighting significant strategic importance.

The primary hurdle lies in the lack of advancement from long-term carbon reduction strategies to operational stages where goals are cascaded by country, business unit, and function. According to Thomas Husson, VP principal analyst at Forrester Research, this reluctance is due to skill deficits, a lack of IT-specific carbon reduction objectives, and insufficient executive ownership.

Zuzana Kovacova, senior research manager at IDC, believes the driving force for change will stem from environmental, social, and governance (ESG) or sustainability reporting regulations. Although currently absent, the UK Sustainability Reporting Standard (UK SRS) is being finalized, with an expected launch as early as 2026. Additionally, the EU Corporate Sustainability Reporting Directive (CSRD) is another impending pressure factor.

"Comprehending the GHG Protocol's three emissions scopes is crucial when establishing IT sustainability goals," explains sustainable IT expert Maggie Hunt. Scope 1 direct emissions result from a company's own sources, with scope 2 attributed to indirect emissions caused by consuming electricity and other sources. Scope 3 encompasses all other indirect emissions in the value chain. With this understanding, IT leaders can devise the most effective strategies for reducing emissions.

Kovacova highlights the importance of prioritizing areas with the largest pools of scope 3 emissions within IT infrastructures. Notable investment areas in the next two to three years include cloud infrastructure improvement and data management alongside application architecture.

Circular IT practices can substantially contribute to sustainability, necessitating IT equipment lifecycle reevaluation. While demanding tasks may require the latest processors, less crucial equipment can last through multiple upgrades. Selecting hardware vendors with circular design practices, power-efficient components, and recyclable materials is essential. Additionally, a robust recycling network and a secure, compliant decommissioning plan are vital.

Aside from ESG regulations, Kovacova advises considering Anything/Everything as a Service (XaaS) models to augment circular practices. These models encompass asset decommissioning within the offering, allowing trade-ins to offset new equipment costs.

Kovacova also suggests education as a vital component, emphasizing IT leaders to train teams on carbon-aware computing through free online resources or workshops offered by organizations like the Green Web Foundation. This will equip teams with the knowledge required to apply sustainable IT principles effectively.

As organizations strive to make their IT operations more sustainable, understanding the nuances of AI's role becomes paramount. AI data centers demand vast amounts of energy and water, so careful considerations regarding their use are essential. Additionally, the growing importance of other factors, such as the consumption of precious metals, should not be overlooked.

These insights set a solid foundation for IT leaders seeking to advance sustainability goals in their organizations. However, it is essential to address the elephant in the room – the role of AI – as it plays a crucial part in this evolving landscape. By taking action today, organizations can stay ahead of the curve before regulations fully come into effect.

To address the lack of advancement in long-term carbon reduction strategies, organizations need to consider cybersecurity certifications for their IT infrastructure to ensure effective and sustainable technology implementation.
As Scope 3 emissions within IT infrastructures account for the largest pools of indirect emissions, businesses should invest in improving cloud infrastructure and data management, focusing on circular IT practices and selecting vendors with eco-friendly components and recyclable materials.
To stay competitive in the future, IT leaders should explore Anything/Everything as a Service (XaaS) models to augment circular practices and efficiently manage decommissioned assets, which can help offset the cost of new equipment.
With AI data centers demanding extensive energy and water resources, understanding the impact of AI on the environment and implementing sustainability principles in AI operations is crucial for businesses striving to prioritize sustainability and comply with future ESG reporting regulations.