Companies that take comprehensive measures for sustainable IT1 implement better ESG ratings2 (61 percent), higher customer satisfaction (56 percent) and realize tax advantages (44 percent).
However, only 6 percent of the companies have a high level of maturity in this regard. The majority, on the other hand, are not unsure how to design sustainable IT. The Capgemini Research Institute comes to these results in its new study “Sustainable IT: Why it’s time for a green revolution for your organization’s IT”, for which IT managers, sustainability experts and executives from 1,000 companies worldwide were surveyed.
Technologies can help solve the climate crisis, but IT itself also causes its own carbon footprint. “Due to the accelerated digitization in the wake of the pandemic, emissions from our digital world are increasing rapidly. Companies have to measure the CO2 footprint of their IT and minimize it through sustainable practices, “says Ralph Schneider-Maul, Head of the Center of Excellence Digital Manufacturing at Capgemini in Germany Involve stakeholders in the company. Apart from the ecological necessity, the economic advantages of sustainable IT are also convincing – both in terms of business results and in terms of social reputation and customer satisfaction. “
Sustainable IT has so far not been a priority for most companies and only a few include it in their sustainability agenda to reduce CO2 emissions. According to the study, only 22 percent of companies plan to reduce their carbon footprint by more than a quarter in the next three years through sustainable IT.
Companies are hardly aware of the carbon footprint of their IT
Companies are often not aware of the climate-relevant effects of their IT: 57 percent of those surveyed do not know how large the CO2 footprint of their corporate IT is. In an industry comparison, banks (52 percent) and consumer goods manufacturers (51 percent) know this value most frequently, while companies in the manufacturing industry (28 percent) are least likely to be familiar with the CO2 emissions of their IT. Furthermore, across all industries, only 34 percent of those surveyed are aware that the production of a cell phone or laptop generates more CO2 emissions than the entire period of use.
Compared to other sustainability initiatives, measures for sustainable IT currently receive less attention and fewer resources. Half of the companies have a company-wide sustainability concept, but less than every fifth company (18 percent) has a comprehensive strategy for sustainable IT, including a schedule and clearly defined goals. Sustainable IT is on the agenda at board level for every third company (34 percent).
Today, only a minority of companies use appropriate means and uniform standards to record the environmental impact of their IT. 29 percent of the organizations surveyed determine their carbon footprint with the help of appropriate tools; 23 percent use key performance indicators (KPIs) to track their greenhouse gas emissions and their progress towards sustainable IT. Overall, only 1 percent of the companies achieved their goals. Furthermore, a quarter of the companies (27 percent) have set emission costs for their IT operations so that the ecological footprint of IT can be identified across departments.
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Expectations towards technology companies when decarbonising IT
The leading technology companies (“big tech”) are pressing ahead with the decarbonization of IT operations, services and products and could thus influence the global perception of sustainable IT. The companies surveyed in the study, across all industries, expect the technology industry to help them introduce sustainable IT practices. Correspondingly, 52 percent of those surveyed are of the opinion that sustainability should be a dimension of the products and services of technology companies. About half (45 percent) of them are also willing to pay a premium of up to five percent for sustainable IT products and services. 61 percent would like to be supported by tech companies in recording the environmental impact of their own IT.
Recommendations for action to implement sustainable IT
For the rapid implementation of sustainable IT, the study authors recommend a three-stage approach with the following steps:
- The development of a strategy for sustainable IT that is in line with the company’s overarching sustainability strategy
- The establishment of a governance process that includes dedicated teams for sustainable IT and is supported by the management
- The implementation of initiatives for sustainable IT, in which sustainability is a cornerstone of the software architecture
The study should here are available for download.
Study methodology
The Capgemini Research Institute surveyed 1,000 companies worldwide with annual sales of more than $ 1 billion on their position on sustainability in IT. The companies come from the following industries: insurance, retail, consumer goods, banking, energy and utilities, life sciences and healthcare, automotive, telecommunications, industrial manufacturing, technology services and the public sector. For the study, the Capgemini Research Institute surveyed IT managers, sustainability experts and executives from core functions such as human resources, finance and marketing.
[1] Sustainable IT is a collective term that encompasses an environmentally-oriented approach to the development, use and disposal of computer hardware and software applications as well as to the design of related business processes. The term includes other aspects, including the responsible mining of rare metals required for the development of IT hardware, water protection and the principles of the circular economy for the entire life cycle of technologies. Capgemini’s research focuses on four key areas of corporate IT: user hardware and devices, networks and communication systems, applications and data, and cloud computing.
[2] ESG ratings evaluate sustainable business practices of companies in the areas of environment, social and governance.
www.capgemini.com/de
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