Sustainability in IT

Get ready to dive into the future of IT organisations and their impact on the sustainability transformation! According to the PwC CEO survey 2024 one-third of company leaders anticipate climate change to revolutionise the way value is created, delivered, and captured – and this change is coming within the next three years. Hereby IT organisations play an important part, which is why we have collected insights with surveys and and engaging client conversations over the past months. Our first blog posts is dedicated to explore the current developments in IT organisations and how they are adapting to this imminent shift.

In today's rapidly evolving business landscape, environmental sustainability is emerging as a critical strategic priority that no industry can afford to ignore – and IT organisations are no exception. Highlighted by Gartner, sustainable technology is identified as one of the top strategic technology trends for 2024. However, despite the acknowledgment of its importance, a gap still exists between the intention to embrace sustainable practices within the overall company and their IT organisations. While most companies incorporate environmental sustainability into their overall business strategies, only half have integrated it into their IT strategies. The intention to adopt sustainable practices is clear, yet a well-defined action plan is often missing. We notice furthermore that as companies continue to expand their digital product and service offerings, the importance of sustainable IT becomes even more relevant.

First, we want to uncover the drivers and reasons for change. Why are IT leaders invested in sustainable IT? Our client interactions reveal seven relevant drivers behind the push for sustainable IT, with four standing out as particularly important to IT leaders.

Main drivers and reasons for change

Industry standards: Guidelines and benchmarks that drive sustainable practices within the industry.

Employer branding: Promotion to a commitment to sustainability to attract & retain talent and demonstrate corporate social responsibility.

Customer Pull: Increasing demand from IT customers that align with sustainable principles.

Regulatory Push: Government policies and regulations that promote sustainable practices (in IT).

Reputation: Maintenance of a positive image in terms of sustainability efforts as a brand & IT organisation.

Innovation: Implementation and adoption of new technologies, processes & solutions enhancing sustainability in IT organisations.

Cost Optimisation: Implementation of measures that reduce costs while enhancing sustainability performance.

First and foremost, regulatory pressure for increasing transparency is a central piece of the equation: In Europe, the Corporate Sustainability Reporting Directive (CSRD) has been in effect since January 2023, severely impacting businesses in the way they report on sustainability, demanding new structures to be set and new data points to be gathered, analysed and disclosed across the value chain. With the ordinance on mandatory climate disclosure for large companies, the Swiss Federal Council has introduced the same mechanic for larger Swiss enterprises.

In addition to legal obligations, changing industry standards, such as the climate neutral data centre pact (CNDCP) have become influential factors compelling Swiss organisations to adopt greener strategies. These standards serve as guideposts, nudging businesses to align with sustainable initiatives and reduce their carbon footprint.

Further, beyond regulatory compliance and industry norms, there is a noticeable shift in public consciousness, with growing awareness about the environmental impact of businesses. Sustainability has become a vital component not only for meeting social expectations but also for enhancing brand image and reputation – both in the perception of customers and potential employees. Customers are increasingly demanding eco-friendly products and services, and potential employees are actively seeking organisations that prioritise sustainability in their operations. The desire to work for an ethically responsible and environmentally conscious company has become a significant factor when it comes to attracting and retaining top talent. This is particularly true in the fiercely competitive IT sector, where the war for talent is set to intensify in the upcoming years. As we interacted with various Swiss firms, it became evident that companies with a strong commitment to sustainability often possess a distinct advantage in attracting and retaining skilled professionals.

Key drivers for Sustainability in IT

1. Regulatory Push

Increase of government-led initiatives and policies aimed at enforcing environmentally friendly practices and reporting

2. Reputation

Increased recognition and importance placed by stakeholders on environmental responsibility, as well as the potential for positive brand image

3. Employer Branding

Demand among employees, especially younger generations, for purpose-driven work and companies that prioritise sustainability

4. Industry Standards

Industry leaders having higher sustainability standards, which drive the establishment of industry-wide guidelines and benchmarks

What is already happening in Swiss IT organisations

In today’s rapidly evolving business- and IT landscape, we can already recognise the outlined drivers’ impact: Swiss companies are pushing a variety of initiatives to keep up with regulatory and customer demands. This doesn’t exclusively result in new challenges – it merely represents an unique opportunity for driving meaningful change. In essence, Swiss IT organisations see themselves in a position to harness the potential of technological advancements in the following three fields of action.

Click the boxes to learn more:

The footprint - sustainability in IT

The integration and adoption of environmentally responsible practices in IT – resource and energy efficiency in hardware, software, and computing across the IT organisation.

The handprint - sustainability by IT

The active role of IT in enabling and advancing sustainability capabilities within the enterprise’s business areas throughout the value chain, as well as collecting and monitoring environmental data.

Industry and Ecosystems

Networks across organisations that involve collaboration between businesses, NGOs, and governments, facilitated by IT, to address challenges together.

The journey to sustainable IT

Our customer insights show that many Swiss companies are standing on the back-foot when it comes to sustainable IT: They react to new regulations as well as industry & customer demand by launching initiatives to address immediate needs. As the number of initiatives grows, we observe an increasing need for an overarching strategy and clear goals – a shift towards the front-foot, to become more proactive, anticipate upcoming changes and harmonise efforts by streamlined standards and structures such as processes, roles and responsibilities and governance.

Key takeaways

In a nutshell, Swiss companies consider regulatory push, reputation, employer branding and industry standards as the most important drivers and are already launching their first initiatives. Hereby we want to highlight that the sustainability of IT organisations can be considered on three different levels: the footprint (sustainability in IT), the handprint (sustainability by IT) and the industry print (industry & ecosystems).

If you found this article interesting and would like to discover more about the topic, get ready for the sequel. Read our next blog post to find out what opportunities sustainable IT brings to organisations, where the current barriers are, and how the role of tech leaders is becoming more multifaceted.