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Charting out a successful sustainability journey for IT Enterprises.

September 7, 2020

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Written by: Anand MA – Head of Products, Treeni Sustainability Solutions.

Do IT enterprises really need a sustainability strategy?

Would you call yourself a successful business leader if your company is a million dollar enterprise, but it does not align with even one sustainable development goal? In today’s day and age, business success is defined not just through profitability and balance sheets, but through the triple bottom line. A concept that was developed almost three decades ago, the triple bottom line focuses on people, planet and profit, taking into account the social, environmental and economic impact that enterprises create. Today, more than ever, having a robust sustainability strategy that can drive this triple bottom line is imperative, especially for companies operating in the Information Technology (IT) sector. 

The IT industry is among the fastest growing in the world, and one where growth is fueled by both – evolving technologies and rising consumer demand. In the last blog, we outlined how it is fast becoming an important differentiator for enterprises to gain long term visibility among consumers, communities and investors. While digital technology and environmental sustainability may seem mutually exclusive, there are a tonne of inefficiencies that exist in the corporate sustainability space for IT. Almost 90% of executives find sustainability to be important, only 60% of companies incorporate sustainability in their strategy, and merely 25% have sustainability incorporated in their business model (GreenBiz)

Creating a holistic sustainability strategy, thus, is becoming top priority for most C suite executives.  Here’s a checklist that IT leaders can follow when starting out on this journey:

How can IT leaders create a smart sustainability strategy?

Setting goals and targets: Focus on initiatives that can add strategic value to your company, and think beyond business operations here. The UN SDGs are a great place to start, to see which goal aligns with the business best. Set science based, research driven and time bound targets keeping the interest of all important stakeholders in mind to implement these goals effectively. 

Focus on ESG, not just climate action: Over the last few years, IT’s contribution to GHGs has increased significantly. We generate more than 50 million tonnes of e waste every year. Moreover, in the current work from home scenario during the pandemic, tech has become almost impossible to function without, increasing the demand for gadgets and cloud based solutions even more, Consumers are becoming more and more aware about material sourcing, supply chain management and human rights issues nowadays. Social issues and governance models thus need to be tackled carefully before putting this strategy in place. 

Analyzing EHS risks: Assessing environmental, health and safety performance is extremely critical to get right. In fact, it is easier for IT teams to keep track of EHS risks than other industries, since these risks can be tracked easily through tech innovations. How productive is your workforce? How many accidents did the company see in the recent past? Was there any health concern that teams faced? Did the company in any way cause any environmental degradation. It’s all traceable! Advanced data analytics have transformed the way enterprise leaders engage with investors. The information they provide not only drives strategic decision making, but higher business growth as well. There may be multiple direct and indirect costs associated with compliance, and accounting for is also something IT leaders need to look into.

Reporting and disclosures: McKinsey states that a company’s  financial performance corresponds to how well they mitigate ESG risks today. Earlier, these were voluntary, however, sustainability disclosures and reporting are increasingly becoming important tools for investors to consider, before they invest in the enterprise.  At this time, sustainability reporting is primarily guided by the Global Reporting Initiative (GRI). Now, there is also the CDP (Carbon Disclosure Project) and the Dow Jones Sustainability index to consider. The scope and depth of these disclosures differ considerably, and understanding which fits best with the company’s sustainability agenda becomes imperative. 

Building smart supply chains: Typically ~90% of the company’s environmental impact comes from these supply chains. With more than 33 gigatonnes of GHGs generated each year, supply chains for consumer packaged goods will need to pay significant attention to sustainability. To do this, companies must determine how natural and human resources are used at every step of the production process. Performance indicators and goals need to be aligned with the global sustainability agenda for higher success rates. In the last few years, Digital technology has also increased companies’ ability to suppliers.  It would do well for IT leaders to bring the modularity of the cloud to their supply chains as well! Smart supply chains driven by AI and ML algorithms and supported by block-chain are the future 

In conclusion, tech and sustainability are championed by different functions, but their collaboration is necessary to ensure strategic business growth. Often, an enterprise may not have both capabilities in house. A team of experts who understand these challenges and both domains extensively can help. Our consultant-led teams at Treeni along with our disruptive, state of the art resustain™ model have been enabling a smart play of technology and sustainability for enterprises in almost all industries. Our customized, R&D led and innovative solutions not only create long term and efficient sustainability strategies, but also ensure holistic resilience for the enterprise, no matter their size, industry or capability. Together, we can make our planet better for our future generations! 


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