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The concept of sustainability — using natural resources that are renewable, or in a way that will not lead to their depletion; reducing the ecological footprint of the business; and avoiding contributing to outcomes such as global warming — is gathering unprecedented mindshare in political, economic and market circles. Making sustainable choices is something an increasing number of consumers do as a matter of course, and that businesses are incorporating directly into commercial strategies.
Technology is a major contributor to climate change and a large number of tech companies are attempting to address this, whether by building energy-efficient data centers, adopting renewable energy sources, or developing applications that consume less in both their creation and ongoing operation. Technology can also help make our everyday lives more sustainable, by for example supporting smart cities that optimize traffic to reduce pollution.
The move to a sustainable world is accelerating, and the trend has wide business implications. Signals here include:
Consumers want to feel good about their impact on the world and will increasingly factor sustainability into their decision making when choosing a brand or supplier. That will require businesses to examine the environmental costs of their products and operations, and adopt more sustainable strategies and technologies in response.
Rather than a box-ticking or compliance issue, sustainability should be understood as a contributor to business goals. Advances in sustainability such as reducing energy consumption often lower costs and can be a win-win for a business's bottom line.
Sustainability has also gained considerable momentum in equity markets under the environmental, social and governance (ESG) banner, with many major investors and portfolio managers instituting ESG targets or requirements. Green credentials can therefore ultimately enhance a company’s valuation and ability to attract quality investment.
Through our Cleantech, Energy and Utilities practice, we work with clients to tackle inefficiencies that lead to waste and overconsumption. A case in point is Fresh Energy, Germany’s first digital electricity supplier, which drew on our expertise in platform development to create a versatile and scalable ecosystem that combines smart meters, a mobile app and machine learning to give customers complete visibility and control over their electricity usage. Greater availability and transparency of data provides the basis for both Fresh Energy and its customers to make more responsible electricity consumption decisions.
Green clouds. One of the best sustainability steps a business can take is adopting a greener approach to data centers, which models predict could take up over 10% of the global electricity supply by the next decade. Encouragingly more cloud and data center providers are documenting and reporting sustainability metrics and practices. Take advantage of this and establish an environmental impact baseline for your data center infrastructure, by actively measuring and considering criteria such as carbon emissions and water consumption. Pursue resource conservation goals by creating collaborative environmental initiatives with cloud, colocation, edge and hosting service providers.
Green software engineering. Awareness is growing that programming languages and practices have a direct bearing on energy consumption and the environment. Choose where possible languages and technology stacks as well as algorithms that reduce the amount of carbon produced by software. The Green Algorithms website can help developers estimate the costs of their code in “tree months” of carbon. Consider using Approximate Computing, a more energy-efficient technique that aims to produce ‘good enough’ rather than 100% accurate results.
Blockchain for sustainability. The adoption of blockchain by more industries is beginning to provide unique sustainability opportunities by increasing transparency and traceability throughout supply chains. This promises to enable companies to improve their sourcing and recycling practices, and to give consumers greater visibility over the environmental inputs of the products they buy, supporting the shift to more sustainable lifestyles.
… put sustainability at the heart of their strategy, so it’s manifested not just in what they say, but how they create products and services, and interact with suppliers and their customers. As the urgency around climate change grows, visible and consistent commitment to sustainability will be a leading indicator of business performance; one that can’t be sacrificed for the sake of profitability or short-term returns.
