Wednesday, January 25, 2023

Sustainability as Storytelling

Data centers spend quite a lot of money on electricity and power, so reducing consumption makes excellent business sense. But “storytelling” about sustainability also is aimed at regulators who need to be pacified, as well. 


Operating costs aside, data centers need to assure potential regulators that they are doing everything they can to reduce carbon footprint and energy consumption. The trick is to do so without undue damage to the operating business and financial performance. 

source: Eaton 


The point is that all sustainability, diversity or inclusion goals have an implied cost. The trick is to succeed without sacrificing basic business performance. 


It is the same sort of fundamental logic CxOs have to apply to the rest of their operations. Those information technology initiatives that promote and protect the current business get deployed first. Other initiatives that promise benefit, but over a longer time horizon, are deployed in a measured way.


Initiatives that promise future benefit get less attention and funding. Sustainability (energy consumption and carbon footprint) are most often somewhere in that middle ground, unless regulators threaten to make it an immediate business issue. 


source: Eaton 


When that happens, the financial impact of compliance on the business becomes secondary. Data centers simply must do enough, and spend enough, to convince regulators to leave them alone.


No comments:

Post a Comment