Sustainability and sustainable operations are now essential in today’s business world. By transforming these challenges into opportunities for improvement and economic efficiency - such as moving toward a circular economy and minimizing waste and resource use - organizations can enhance their overall performance. This strategy not only attracts environmentally conscious consumers but also serves as a driving force for businesses seeking to balance profitability with environmental responsibility.  

Generating Value from Sustainability 

Sustainability has begun driving revenue decisions for businesses, and value-creating companies are doing more to engage their workforces in sustainability efforts. Research suggests that to catch up with these value creators, other businesses should begin by understanding which practices are most closely linked to positive financial impact. A McKinsey survey reveals that companies that prioritize sustainability and have successful sustainability programs tend to follow a distinctive set of management practices. These practices include making sustainability a strategic priority, establishing clear goals and targets, and embedding sustainability into their corporate culture and employee training programs. 

This approach allows companies to derive value from their sustainability initiatives while effectively navigating the opportunities and risks posed by environmental challenges, such as climate change. The survey also indicates that value-driven companies are more proactive in involving customers and business partners in their sustainability efforts. Compared to other companies, respondents from these value creators are more likely to collaborate with customers and suppliers on sustainability issues, adjust their product portfolios to be more sustainable and consider sustainability factors in supplier selection and evaluation. Additionally, they are more likely to report that sustainability influences how they manage their facilities and transportation networks. 

When looking five years into the future, approximately 40% of survey respondents anticipate that their companies will generate value from sustainability efforts. Gaining insight into the unique practices of today’s value-driven companies could help others identify strategies to achieve similar success (source: McKinsey Sustainability, “How companies capture the value of sustainability: Survey findings”, McKinsey & Company, 2022). 

Sustainability in IT 

Sustainability can take on various meanings and carries different nuances for different groups. However, it generally refers to the societal goal of meeting the needs of the current generation without compromising or depleting Earth's natural resources, thus preserving ecological balance. 

In the context of IT, sustainability encompasses various aspects, such as adopting environmentally conscious practices in the manufacturing of technology assets and ensuring technology teams work together to use these assets efficiently and dispose of them responsibly. It also extends to include corporate responsibility in the design and production of IT hardware, as well as the management of the natural resources involved in these processes. 

The processes, initiatives and strategies aimed at achieving sustainability on a global scale are collectively referred to as sustainable development. Like sustainability, sustainable development focuses on meeting the needs of the present without compromising the ability of future generations to fulfill their own needs, as outlined in the United Nations' 1987 "Report of the World Commission on Environment and Development." 

Acting Responsibly 

When considering sustainability in the context of broader benchmarks, a good starting point is to apply ESG criteria when evaluating investments in a company. Analysts use these criteria to identify challenges specific to various sectors, industries, and companies. Similarly, customers can adopt this approach when deciding on product purchases. 

Building a Sustainability Strategy 

An organization can actively work to reduce its environmental impact and operate more sustainably. A key aspect of an IT sustainability strategy is implementing eco-friendly technologies and practices, which can help lower the organization’s carbon footprint and lessen its overall environmental impact. 

Some key sustainability steps for an organization: 

Essential Sustainability Metrics 

There are several metrics an IT organization should pay attention to in order to become more sustainable. 

The first is its carbon footprint, which includes greenhouse gas emissions resulting from electricity use, data center equipment manufacturing and transportation, and other IT-related activities. For organizations utilizing data centers, it’s also essential to measure energy efficiency by tracking the amount of energy consumed per unit of computing power. 

Hardware plays a significant role in all IT operations. Reducing the consumption of new devices minimizes the impact on scarce resources, as well as paying attention to production and transportation environmental implications. Therefore, organizations should focus on extending the lifecycle of their assets. Additionally, any resulting electronic waste (e-waste) can be measured and reduced. For instance, companies can recycle hardware by donating it to schools, clubs, or associations, thereby extending its useful life. 

Another effective way to minimize e-waste is by leasing hardware. In practice, this is already done with cloud data centers, and is becoming increasingly popular in personal lives, such as leasing cars, using cell phones under contract, or accessing entertainment through subscription services. 

Other valuable metrics for organizations to consider include IT asset utilization, supply chain sustainability, and paper and water usage. 

Cloud sustainability is a shared effort:

The Human Factor is Key 

Technology and processes are not the only factors to consider when pursuing sustainable IT: the most crucial element is people. Sustainability resonates deeply on a human level, inspiring individuals to challenge the status quo and drive change. Therefore, it’s essential to connect with employees, as they are key agents of transformation both within and beyond your organization. 

Engage your workforce by sharing your sustainability goals and highlighting early successes. This approach will motivate and inspire employees across the company to get involved. There is a valuable opportunity to co-create sustainable IT programs that everyone can contribute to. For instance, you could reward employees who extend the use of their laptops and cell phones by an additional year or encourage a software amnesty, where employees recycle unused application licenses and SaaS subscriptions. When employees see the company’s commitment to doing the right thing, they are more likely to propose their own initiatives, such as donating IT equipment to local charities and social programs.