Countries around the world, including the US and UK, recently made headlines at COP26 after committing to make technology clean, affordable, and globally accessible by 2030. Some governments have already begun creating sustainable rules and regulations with the UK proposing new rules that would require all listed companies to publish comprehensive sustainability plans by 2023.
Serviceware’s Director of Strategic Business Value Consulting, Sanjiv Sachdev, and Centigo Partner, Ragnar Agnell caught up about why green IT is a pressing issue and how its benefits extend to companies’ financial value.
Why is now the time for business leaders to implement sustainable policies in IT?
Business leaders are under increasing pressure from both clients and governments to reduce their environmental impact and implement sustainable corporate and social agendas. At the same time, the pressure to deliver financial value remains paramount. As many businesses and countries try to recover from the economic turmoil incited by the pandemic, they are looking to reorganize and restructure in ways that will reduce costs.
This provides an unprecedented opportunity for CTOs and CIOs to wave in a new era of green IT by ensuring that new efficiency policies reflect sustainable practices. “We believe that sustainability will be of utmost importance for businesses to position themselves successfully and add to their competitive advantage. Actions and investments, such as moving to cloud services or working with partners who share your sustainability values, can actually reduce climate impact while also reducing cost,” says Ragnar, Partner at Centigo and a leader in bridging digital technology and sustainability.
According to Sanjiv, Director of Strategic Business Value Consulting at Serviceware, “Companies are under more pressure than ever to successfully migrate to the cloud – not only to improve flexibility and scalability, but to curb carbon emissions and tackle climate change. However, rather than rushing to invest – because it is the right thing to do – businesses must first ensure a cloud strategy is rooted in the actual business need, is affordable, and drives value to ensure long-term success”.
Not only does the cloud offer operational benefits but, according to Accenture’s ‘The green behind the cloud’ report, the public cloud also has the ability to reduce CO2 emissions by 59 million tons per year – the equivalent of taking 22 million cars off the road.
How is financial value optimized with green IT?
Many business leaders incorrectly view sustainability and profit as mutually exclusive. However, a recent Oxford study found that rapid energy transitions should lead to net savings of trillions of dollars when compared to fossil fuel-based systems. Sanjiv points out that data-driven evidence facilitating effective governance, financial transparency, and agile budgeting processes are necessary to implement financially valuable sustainability policies.
IT financial management (ITFM) tools allow business leaders to utilize data and provide comparable insights from suitable and business-specific use cases. For example, the benefits and costs of a cloud strategy can be laid out in clear projections, showcasing the ROI and true value of green IT. The steps and investments required to reach the projected value are then presented.
ITFM tools give business leaders the ability to transition to a sustainability strategy while optimizing costs and maximizing efficiencies. “With the right insights and cost intelligence, businesses can map and communicate cost vs environmental impact,” Ragnar adds.
The bridge between digital technology and sustainability
Centigo and Serviceware are leaders in the green IT space, offering a service that gives organizations the opportunity to take control of their IT services while also reducing their environmental impact and costs. Organizations are able to meet their sustainability goals faster while optimizing crucial investments in digital initiatives.
Centigo has also partnered with organizations such as the Swedish Red Cross, helping them to gain complete transparency and control over their IT costs, while also aligning themselves with the benefits of the green IT agenda. Red Cross commented, “With the green IT reviews, we established our footprint and measured improvement work. IT set an example in the whole organization and enabled other areas to become greener”.