As we approach the end of 2024, the question of whether IT sustainability remains a priority in boardrooms is more pertinent now than ever.
The turbulent global economy and political changes have undoubtedly impacted corporate agendas, but the urgency of sustainable IT practices cannot be overstated. This article explores the current state of IT sustainability, the challenges faced, and actionable strategies for 2025.
In 2024, IT sustainability has seen mixed levels of prioritisation across industries. While some companies have made significant strides, others have struggled to maintain momentum due to economic pressures or perhaps lack of interest. The drive towards sustainable IT practices requires a concerted effort, and IT departments play a crucial role in this journey.
The economic instability of recent years, with rising inflation and energy costs, has forced many companies to re-evaluate their spending. Unfortunately, sustainability initiatives are often among the first to be scaled back.
This short-term thinking can be detrimental in the long run, as sustainable practices often lead to cost savings and improved efficiency and can ultimately save the planet on which we all live.
But why are sustainability initiatives so often scaled back?
Short-term financial focus
When companies face economic uncertainty, they often prioritise immediate cost savings to ensure financial stability. Sustainability initiatives, which may require upfront investment in technology, people, and training, are seen as non-essential compared to core business operations. There is also a common misconception that sustainability initiatives are expensive and do not provide a tangible return on investment (ROI).
This leads to a perception that cutting these initiatives will provide quick financial relief.
Lack of immediate tangible benefits
Sustainability efforts often yield benefits that are not immediately visible or quantifiable, such as improved brand reputation, customer loyalty, and employee satisfaction.
During economic downturns, companies may prioritise initiatives with more immediate and measurable financial impacts.
Pressure from stakeholders
Stakeholders, including investors and shareholders, may exert pressure on companies to prioritise financial performance over sustainability. This pressure can lead to a de-prioritisation of sustainability initiatives, especially if stakeholders are more focused on short-term financial returns.
That said, there are a growing number of “eco-investors” where sustainability efforts are a key criterion when they choose companies in which to invest. This has the potential to increase the positive financial focus on sustainability within corporations. Equally, employees are stakeholders too and there is often increasing pressure from certain demographics of the workforce to prioritise sustainability.
While some sustainability initiatives can be relatively straightforward, others can be complex and require significant changes to existing processes and systems. During times of economic uncertainty (including software price increases and tech layoffs) companies may be reluctant to undertake these complex changes, opting instead for simpler, more immediate cost-cutting measures.
The long-term detriment of scaling back sustainability
Despite the view that de-focusing sustainability can lead to positive outcomes, scaling back on these initiatives can be detrimental in the long run for several reasons.
Firstly, companies that continue to invest in sustainability can gain a competitive advantage through enhanced brand reputation, customer loyalty, and compliance with regulatory requirements. Those that scale back may find themselves at a disadvantage among consumers, employees, and investors compared to more forward-thinking competitors.
As governments and regulatory bodies increasingly focus on sustainability, companies that do not prioritise these initiatives may face regulatory risks and potential fines. Staying ahead of regulatory requirements such as those from the EU and California will become a necessity for many organisations.
Turning things around in 2025
To address these challenges and reinvigorate sustainability efforts in 2025, companies can take several steps.
These including getting senior leaders to reaffirm their commitment to sustainability, making it clear that it is a priority despite economic challenges. This can be achieved through clear communication and setting measurable goals.
Increasing awareness and understanding of sustainable IT practices among employees is also crucial, which can be done through training programs and workshops.
Companies should also look to work with suppliers and partners who prioritise sustainability, so they can achieve their goals more effectively. This includes choosing suppliers with strong environmental credentials and collaborating on joint sustainability initiatives.
Adopting FinOps practices (such as right-sizing resources, eliminating unused instances, and choosing datacentre locations that use renewable energy) all help to reduce carbon emissions.
However, cloud is not the whole picture. The way organisations acquire, use, and dispose of all technologies (including software and hardware) contributes to good sustainability practices.
On-premises datacentres are full of servers, storage, and networking equipment while users across an organisation account for hundreds and thousands of laptops, desktops, mobile phones, tablets and more. All of these have a carbon footprint throughout the lifecycle of creation, use, and disposal.
Carbon conscious decisions can, and should, be made across all areas of IT – and the wider business as a whole.
With this in mind, companies should also look to implement a circular economy model in IT operations by focusing on reusing, refurbishing, remanufacturing, and recycling IT assets to extend their lifecycle and reduce waste.
Companies should also look to actively engage with stakeholders, including employees, customers, and investors, to build a culture of sustainability.
Transparent communication about sustainability goals and progress can also foster greater support and collaboration.
Establish clear metrics and targets for sustainability initiatives. Regularly track and report progress to ensure accountability and continuous improvement.
Monitoring energy and water usage in enterprise cloud environments
One of the most significant areas where organisations can make a difference is in the management of their datacentre environments by implementing strategies to reduce their electricity and water usage.
To this point, enterprises should look to choose cloud providers and datacentre locations that operate energy-efficient datacentres. These providers often use advanced cooling technologies, renewable energy sources, and optimised hardware to reduce electricity consumption.
Some data centres use significant amounts of water for cooling. Opt for providers that use water-efficient cooling methods or those that have implemented water recycling systems.
Implement resource optimisation strategies such as auto-scaling, which adjusts the number of active servers based on demand. This reduces the energy consumption of idle servers.
Develop and deploy software that is optimised for energy efficiency. This includes writing efficient code, reducing unnecessary computations and API calls, and optimising data storage and retrieval processes.
While the economic challenges of 2024 may have impacted IT sustainability efforts in some sectors, there is a clear path forward for 2025. By reaffirming their commitment, investing in education, leveraging technology, and prioritising key areas such as FinOps, companies can make significant strides towards more sustainable IT practices. Reducing electricity and water usage in cloud environments is a critical component of this journey.
The pursuit of sustainability is not without its challenges but, with the right strategies and a dedicated approach, it is an attainable goal.