Accelerating ESG through IT services
Businesses around the world have defined environmental, social and governance (ESG) targets and commitments. Attention has now turned to meeting targets. Given that enterprise technology is responsible for one percent of global greenhouse gas emissions – equivalent to the total carbon dioxide emitted by the UK, IT service providers are well-positioned to capitalise on this ESG pivot by offering simple products for businesses to achieve their goals.
From an environmental perspective, optimising IT infrastructure is an easy win, both in terms of energy usage and a business’s bottom line. Edge computing is the latest trend in this area, reducing the poor environmental efficiency of data centres and fully cloud-based solutions. Hardware providers will benefit from strong circular economy offers – those seeking not only to recycle assets responsibly but maximise asset lives.
Socially, the IT services industry facilitated the dramatic cultural changes to remote working arising from the pandemic. Meanwhile, SaaS offerings are becoming increasingly accessible to previously marginalised communities. Equally, there is ongoing debate around how AI can help eliminate biases from processes such as recruitment and investment decisions, although care must be taken to ensure that the AI development is not distorted by coded bias.
Data security is the tenant of governance that is commonly cited in the IT services sector. While undoubtedly important, there is more the sector can offer. Improved data management, transparency and efficiency are clear benefits. Blockchain, under the right conditions, is being used successfully to identify localised risk hotspots and increase transparency.
The IT services sector is aware of its role in ESG, with products already being positioned to tackle businesses’ problems in the space. However, there remain big gaps to fill if ESG targets are to be met. Consolidating, updating and leveraging IT systems are needed to accelerate businesses towards their ambitious targets.
For more information please get in touch with the corporate finance or ESG teams.