Sustainability is increasingly perceived as a key driver of value, and it’s fantastic to witness the sector’s progress in this area. However, there is still a lot of work to be done. The challenge lies in translating this into an actionable plan to implement sustainable initiatives across the organisation and drive value for all stakeholders in the long term.
Tech businesses can’t remain under the radar
Without question, the tech sector has a history of delivering transformation and innovation , yet there remains a common perception that technology businesses don’t need to focus on improving their environmental impact. Fortunately, mindsets are slowly shifting and now is the time for sector leaders to build on this and set an example for the wider industry.
Whilst it’s true that technology companies themselves may not generate high emissions, the data centres used to support operations account for c.3.5% of global GHG emissions – which exceed GHG emissions from the aviation industry (c.2.4%). In addition, the sector has such a large sphere of influence in developing and implementing the technologies that will prove pivotal in progressing towards a more sustainable future.
Therefore tech leaders must consider their wider value chain, as well as using their position to influence change outside their organisations.
Sustainable advocacy affects the bottom line
Recent reports have found that up to 71% of C-suite leaders are feeling pressure from investors to implement sustainability plans, while a similar number noted pressures from board members, customers and employees. Whilst exposure to these issues has heightened awareness and appreciation for sustainable measures, leaders are beginning to understand its importance to achieving long term success.
In another recent review of academic literature on sustainability initiatives, 90% of reports concluded that good ESG standards lower the cost of capital and 88% showed that incorporating ESG into a business strategy led to better operational performance. This further goes to highlight how a focus on ESG can become a key driver of value to deliver sustainable growth.
Businesses risk getting left behind
Many tech companies are already working to build a greener sector that’s fit for the future. For example, our portfolio business, Cloud Technology Solutions Group, recently received certification as a B Corporation, joining an advancing group of companies that are reinventing business by pursuing purpose, as well as profit.
CTS also supports other businesses through their ‘Sustainability Hero’ workshops, which are designed to highlight the possibilities of becoming more sustainable, review existing data to get a performance baseline, and then explore how technology can be used to reimagine business models to help organisations reach their goals.
A great starting point for tech leaders looking to increase their sustainable action is working with third-party agencies, which can help to first measure, report and support business plans for reducing emissions across the entire value chain. There are also wider sector initiatives, such as Tech Zero, that offer valuable resources and guidance to support businesses on their first steps in the sustainability journey.
It will take a collective effort from tech leaders to support global decarbonisation efforts, but by taking responsibility and setting an example for the wider industry, businesses can positively impact the planet, while improving operational and commercial efficiencies and delivering sustainable business growth.
