Sustainability is top of mind for organizations, as investors and other stakeholders are placing a higher emphasis on environmental, social and governance (ESG) ratings and performance. Investors perceive that companies with higher ESG ratings have lower risk.
The contributions that products and services make to an organization’s overall carbon footprint are key factors in ESG ratings, and for data-intensive businesses, data centers are key targets for meeting zero-carbon goals.
More efficient on-premises data centers and sustainable cloud services can play a key role in meeting carbon reduction goals.
The Cloud Right approach
Taking the Cloud Right™ approach can help organizations improve their ESG credentials and increase transparency by moving high-demand workloads to a more efficient platform. The major cloud providers recognize this opportunity and are providing ESG reporting tools to help companies understand and track sustainability factors.
Organizations considering a migration to cloud can look beyond standard cost analyses and build sustainability metrics into the overall equation.
average reduction in carbon emissions with Cloud Right
For example, a recent DXC study showed that customers who modernized applications in migrating from on-premises infrastructure to cloud or hybrid IT achieved an average of 37 percent lower carbon emissions and reduced total cost of ownership (TCO) by 34 percent.
It’s important to know the carbon impact of both existing and target environments. In terms of the future production of CO2, for example, it might well make sense to invest in a new air handling system for a 20-year-old data center. Still, because of their massive scale, cloud hyperscalers have major advantages by applying sustainability measures such as server optimization and accessing renewable energy sources.
DXC Technology is actively pursuing decarbonization for customers. DXC reduced carbon emissions 20.6 percent and lowered energy consumption by 10.7 percent in fiscal year 2020. By actively working with cloud services partners and integrating environmental sustainability criteria into the supply chain selection process, DXC is focusing on ways to support customers’ sustainability goals. In 2021, DXC was recognized by Newsweek magazine as one of America’s Most Responsible Companies and by EcoVadis for “outstanding sustainability performance."
Ultimately, actively managing and reducing IT costs, consumption and automation will help organizations become more sustainable.