Companies that implement comprehensive measures for sustainable IT1 have better ESG ratings2 (61 percent), higher customer satisfaction (56 percent) and realize tax benefits (44 percent).

However, only 6 percent of companies have a high degree of maturity in this regard. The majority, on the other hand, are not unsure how to design sustainable IT. These are the findings of the Capgemini Research Institute 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 were surveyed worldwide and across industries.

Technologies can help solve the climate crisis, but IT it also creates its own CO2 footprint. "Due to the accelerated digitalization in the course of the pandemic, the emissions of our digital world are increasing rapidly. Companies need to measure the CO2 footprint of their IT and minimize it through sustainable practices," says Ralph Schneider-Maul, head of Capgemini's Center of Excellence Digital Manufacturing in Germany. "In addition to a sustainable software architecture, the decisive factor for success will be that all stakeholders in the company are involved. 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 not yet 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 CO2 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 unaware of the climate-relevant effects of their IT: 57 percent of respondents 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 often, while companies in the manufacturing industry (28 percent) are least familiar with the CO2 emissions of their IT. Furthermore, only 34 percent of those surveyed across all industries are aware that the production of a mobile phone or laptop produces more CO2 emissions than over their entire period of use.

Compared to other sustainability initiatives, measures for sustainable IT currently receive less attention and fewer resources. Although half of the companies have a company-wide sustainability concept, less than one in five companies (18 percent) have a comprehensive strategy for sustainable IT, including a schedule and clearly defined goals. On the agenda of the board level is the topic of sustainable IT at every third company (34 percent).

Only a minority of companies today use appropriate means and uniform standards to record the environmental impact of their IT. For example, 29 percent of the organizations surveyed determine their CO2 footprint using 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 achieve their set goals. Furthermore, a quarter of companies (27 percent) have set emission costs for their IT operations so that the ecological footprint of IT can be seen across departments.

Expectations of technology companies in the decarbonization of IT

The leading technology companies ("Big-Tech") are pushing the decarbonization of IT operations, services and products and could thus influence the global perception of sustainable IT. The companies surveyed in the study expect the technology industry across industries to help them adopt sustainable IT practices. Accordingly, 52 percent of respondents believe 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 want to be supported by tech companies in recording the environmental impact of their own IT.

Recommendations for the implementation of sustainable IT

For the rapid implementation of sustainable IT, the study authors recommend a three-step 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 be available for download  here.

Methodology of the study

The Capgemini Research Institute surveyed 1,000 companies worldwide with annual sales of more than one billion US dollars about their position in terms of 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 senior 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 associated 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 enterprise IT: user hardware and devices, networks and communication systems, applications and data, and cloud computing.

[2] ESG ratings assess sustainable business practices of companies in the areas of environmental, social and governance.

Note: this article is borrowed from it-dily.net  for reasons of conviction the study was documented by www.capgemini.com