The path to a green digital world: a sustainable corporate strategy

The path to a green digital world. 2021 was among the top seven warmest years on record. It also saw some of the most extreme weather events: from severe flooding in Belgium to devastating wildfires that saw 7.3 million acres^[1] of land reduced to ash in the US. In short, the climate is changing and for many of us, the effects are being felt on our doorstep.

Climate change and technological advancement

At the same time, technological advancement offers tools and capabilities to deal with the climate crisis. Organizations often use tech tools to measure, monitor and reduce carbon emissions. And ever more sophisticated computer modelling techniques allow the forecasting, preparation and mitigation of extreme weather events.

The third GIEC report was released this April 2022. It calls on society, energy efficiency, and innovation. The solutions are there. And the IPCC is categorical: acting will cost less than not acting.

The materiality of the invisible

But technology has an impact too. It is based first and foremost on physical realities. Such as: terminals, servers, computers, phones, antennas, underground and submarine cables, satellites etc. To manufacture and use these instruments, we need energy.

• • Data transmission networks: 1.1-1.4% energy

Data transmission networks constitute 1.1-1.4%^[2] of total global energy consumption.

• • The information and communication technologies(ICT): 10% of the world’s electricity.

The information and communication technologies (ICT) sector consumes another 10% of the world’s electricity. And it produces 50% more greenhouse gases than air transport per year ^[3].

Energy consumption often dominates the conversation surrounding the footprint of technology. Leading by example, major tech players, such as Google, have already made the switch to 100% renewable sources^[4]. And this is only the beginning.

It’s also when viewed as a commodity that’s manufactured, sold, used and discarded, that our devices are responsible for real physical, social and environmental damage. We’ve reached a point where no business can operate without technology. And just as few can afford to not take action to reduce its impact.

Prioritising sustainability as a strategic pillar

One way of conceptualising corporate strategy is the how (the methods and actions) used to achieve the why (a company’s mission and vision). There is a drastic need for companies to make sustainability a driving force behind their decisions. The first place to start is placing sustainability within the business mission and/or vision. In other words, sustainability starts at the top.

Evernex Sustainability Strategy

This is why Evernex has enshrined its commitment to a more sustainable IT world. As its company mission guides the implementation of day-to-day business processes and operations that support this goal. Part of this has been to take ownership of our role in the problem and dedicate resources to measuring our impact to find actionable methods to reduce it. Here are two main steps we’ve taken to create a Sustainable Strategy for Evernex:

1. 1. Update carbon footprint calculations

In 2021, we updated our carbon footprint calculations using the French ‘Bilan Carbone’ and GHG Protocol methodologies. It found we produced more than 15,000 tCO2e in 2020: equivalent to the emissions of 1400 Europeans. This presented us with a challenge as 96% of our emissions originate in the supply chain: sourcing and delivering materials, and shipping products to businesses.

Our response was to develop and implement a low carbon strategy by joining a CDP (Carbon Disclosure Project) initiative called ACT Assessing Low Carbon Transition – step by step, supported by the French agency ADEME.

Aligned with sector decarbonization goals and scientific guidelines, we look at potential optimisations along our entire process.

1. 1. Environment ISO certifications

Another example is our Environment ISO certifications. They require the involvement of all manner of teams and staff members in the assessment of whether the business is acting responsibly or not.

During the process, staff have time to reflect on and reappraise their actions. It created a mindset of continuous improvement. Necessary to build a truly sustainable future in IT.

Evernex has been able to implement a robust roadmap to reduce its environmental impacts. The company enables this sustainability to filter down into every department of the business.

Rethinking the use of IT for improved value

A crucial step in incorporating sustainability at the strategic level is reframing our use of IT to see environmental – and economic – value at every stage of the asset lifecycle.

Historically and today, consumption of technology is based on the linear economic model of take-make-dispose. Raw materials are extracted from the Earth, from mines that are concentrated in few countries on which we all depend.

The digital industry consumes 320 tons of gold and 7500 tons of silver, 22% of the world’s mercury consumption (514 tons) and up to 2.5% of lead consumption. The manufacture of computers and cell phones alone consumes 19% of the global production of rare metals such as palladium and 23% of cobalt.^[5].

China leading producer of raw resources

China is now the leading producer of 28 mineral resources essential to our economies, often accounting for more than 50% of world production ^[6]. Unfortunately, China uses a linear economic model to produce its raw resources, which is all but sustainable. The main aim of this economic model is to gain profit:

1. 1. Take

Raw materials are then processed and transported to facilities all over the world where they are manufactured into hardware. At this stage in the life cycle analysis, more than 75% of their lifetime carbon emissions have already been emitted ^[7].

1. 1. Make

After manufacture, products are marketed and sold, transported, and installed.

1. 1. Dispose

After around 5 years of use, the original equipment manufacturer (OEM) issues an End-of-Service or End-of-Service-Life date. Oftentimes spelling the end of the lifespan of that piece of equipment. As manufacturer-provided maintenance becomes unsustainably expensive and warranties end. The hardware is replaced with a newer model, and frequently ends up as e-waste in landfills.

This take-make-dispose model, sees functioning IT equipment end up scrapped contributes to the mounting piles of e-waste, predicted to grow by 70% by 2050^[8], and creates numerous socio-environmental problems.

At every stage, from the extraction, to manufacture, operation and disposal, carbon emissions are released, and after their short lifespan, precious earth metals are laid to waste and toxic chemicals (used for extraction and fabrication processes) are free to leech into and damage the environment and local populations as they eventually end up in the food chain. Due to this, 10% of China’s arable land is contaminated with heavy metals. And 80% of its underground well water is unfit for human consumption ^[9]

This should not be the norm. Major players, such as Google and HP, are acting towards both the energic and material sustainability of technological consumption by implementing circular practices in their operations ^[10].

The path to a green digital world

A circular economy is regenerative and restorative by design. As it aims to always maintain products and materials at the highest utility and value. For IT equipment, this means retaining it as functioning hardware for as long as possible.

Growth in the use of third-party maintenance (TPM) is an example of how hardware life extending services benefit both company finances and environmental responsibility by offering up to 70% savings compared to the manufacturer.

Sustainable IT practices not only provide economic value by extending the life of equipment. In improving customer perception, businesses with sustainable practices and transparency can gain a competitive advantage^[11] to attract customers^[12], retain talent and generate revenue.

It’s by implementing practices where environmental protection and economic value creation converge that we are going to see real movement towards sustainability. Large firms have the resources to manufacture, remanufacture and recycle their own data center equipment. Yet for most business an operation of this scale is out of the question. An immediate way companies can reduce their impact is by partnering with service providers that offer scalable, sustainable solutions.

Collaborating with sustainable partners

No business can create real impact alone. To meet our goal of a sustainable digital world, we help other businesses support the cause with sustainable alternatives to the current use of IT.

IT from a lifecycle perspective

We approach IT from a lifecycle perspective, to provide a range of IT Life & Professional Services that embed sustainability at every stage of the equipment lifespan. This so called circular economic system acts like this:

1. 1. Manufacture with spare parts and TPM

We provide refurbished hardware and spare parts through our Third-party maintenance (TPM) and Spare as a Service (SPaaS) offerings. Or flexible options for lease and rental that let equipment live numerous ‘lives’.

1. 1. Extend the useful life of IT equipment

Our TPM challenges the refresh cycle. It eliminates the expensive need for new. As we extend the useful life of equipment with cost-effective support.

1. 1. End-of-Life cycle

We collect the IT equipment once it reaches its true end of useful life. Not before. And ensure the secure destruction of data in line with industry best practices.

1. 1. Reprocess IT equipment

Then we reprocess equipment, salvaging functioning components to be reused in other systems. recycling Raw materials will be remanufactured, at a specialised, EU Directive-authorized facility.

1. 1. Reduce Carbon emissions via global collaboration

Through our global coverage that enables us to collaborate across geographies, companies operating in multiple locations can begin to reduce their carbon emissions, standardise their practices and align them with a circular economic system that will be crucial for a more sustainable future in technology.

Conclusion

In March 2022, the Securities and Exchange Commission (SEC) proposed the first climate disclosure rules for public companies^[13]. SEC i another in a growing list of governing bodies. Including the EU – with its forthcoming Corporate Sustainability Reporting Directive (Oct 2022). And Impact and evolution on IFRS (ISSB). All proposing and imposing regulations making sustainability an issue of compliance.

These regulations require companies to disclose their GHG-emissions as well as their exposure to climate change risks. In the short term, it means potentially incurring costs for the implementation of new processes. Yet, in the long-term, these regulations mean sustainability reporting will eventually be integrated into global financial audits and provide consistency in a changing world.

Adopt sustainability as a corporate strategy

Within IT, adopting sustainability as a corporate strategy, businesses take a proactive rather than reactive approach to climate change and new regulation laws. This will help them to:

• stay ahead of the curve on reducing their impact
• anticipate the consequences of climate change on their activity (double materiality)
• , and create a fit-for-future business model, based on sobriety, energy efficiency and innovation.

Sources

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• Kamiya, George. 2021. “Data Centers and Data Transmission Networks.” IEA. November, 2021. Data Centres and Data Transmission Networks – Analysis – IEA.
• Mills, Mark p. 2013. “The cloud begins with coal: big data, big networks, big infrastructure, and big power – an overview of the electricity used by the global digital system.” August, 2013.
• Pitron, Guillaume. 2019. “La guerre des métaux rares: la face cachée de la transition énergétique et numérique.” 2019.
• Hetzel, Patrick and Bataille, Delphine. 2016. “Les enjeux strategiques des terres rares et del matieres premieres strategiques et crtitiques.” May 19, 2016. Assemblee nationale. r15-617-21.pdf (senat.fr).
• “The digital footprint in France: ADEME and Arcep submit their first report to the Government.” January 19, 2022. The Environment | Arcep.
• “En Chine, trois millions de décès prématurés par an à cause de la pollution.” March 15, 2017. Les Echos.
• Hölzle, Urs. 2021. “Four consecutive years of 100% renewable energy – and what’s next.” Google. April 20, 2021. Google achieves four consecutive years of 100% renewable energy | Google Cloud Blog.
• “Global Waste to Grow by 70 Percent by 2050 Unless Urgent Action Take: World Bank Report.” The World Bank. September 18, 2018. Global Waste to Grow by 70 Percent by 2050 Unless Urgent Action is Taken: World Bank Report.
• “Once is Never Enough.” Google. March, 2018. Circular economy of Google data centers | Google Sustainability.
• Escaler, Gerard. 2020. “Transforming Sustainability Into A Competitive Advantage.” Forbes. September 9, 2020. Transforming Sustainability Into A Competitive Advantage (forbes.com).
• “Recent Study Reveals More Than a Third of Global Consumers are Willing to Pay More for Sustainability as Demand Grows for Environmentally-Friendly Alternatives.” Business Wire. October 14, 2021. Recent Study Reveals More Than a Third of Global Consumers Are Willing to Pay More for Sustainability as Demand Grows for Environmentally-Friendly Alternatives | Business Wire.
• Freedman, Andrew. 2022. “SEC proposes first climate disclosure rules for public companies.” AXIOS. March 21, 2022. SEC proposes first mandatory climate risk disclosure rules (axios.com).