Unlocking Sustainability with Cloud

Sustainability has become a critical focus for stakeholders across all industries. As environmental concerns grow, businesses are increasingly held accountable for their ecological footprint, and sustainability now impacts every division and activity within a company. The IT department is no exception. But what does sustainability in IT mean?

To begin with, it’s about integrating sustainability principles into a company’s IT infrastructure and processes, making them more energy and thus resource efficient. This applies to both hardware and software, ensuring that computing across the organisation has a minimal impact on the environment. Furthermore, IT plays a crucial role in enabling and enhancing a company’s overall sustainability efforts, helping to achieve green goals and sustainability objectives. 

How can cloud computing effectively support meeting environmental goals?

In today’s rapidly evolving technological landscape, the adoption of cloud-based solutions is becoming essential for organisations aiming to enhance efficiency and sustainability. Our study of the Swiss market reveals that 59% of respondents are actively using cloud technology, with a further 16% in the pilot phase. This trend highlights a significant movement towards cloud adoption, largely driven by its role in reducing resource consumption and supporting sustainable IT operations. As more companies recognise these benefits, cloud computing is poised to become a cornerstone of modern business strategies.

Cloud computing offers organisations an effective way to achieve sustainability goals by lowering reliance on physical hardware, thereby resulting in less energy consumption. By migrating to the cloud, companies can eliminate the need for on-premises servers, reducing both infrastructure requirements and the environmental impact of hardware production and maintenance.

The use of cloud services also contributes to sustainability through energy efficiency. Cloud providers design their data centres to optimise energy use by leveraging economies of scale and advanced technologies such as efficient cooling systems and resource management. These strategies allow cloud services to operate with significantly less energy than traditional, in-house data centres. In addition to energy efficiency, cloud computing’s scalability is a key factor in reducing waste. Businesses can adjust their IT resources in real time, scaling up or down based on actual demand. This flexibility ensures that companies only consume the energy and resources they need, avoiding the inefficiencies of over-provisioning hardware.

Furthermore, many cloud providers are investing in renewable energy sources such as wind and solar to power their operations. By powering their data centres with clean energy, they are helping to reduce carbon emissions, making cloud computing a vital enabler of both corporate sustainability and green achievements.

What makes the cloud a game-changer for small and medium-sized businesses?

For smaller and medium-sized businesses (SMEs) as well as family-owned enterprises, adopting cloud computing can be particularly impactful. One of the immediate benefits could be cost savings: By reducing the need for physical hardware and its associated maintenance, cloud computing allows SMEs to allocate their teams and IT resources more efficiently. In addition, the flexibility of cloud solutions enables these businesses to adapt quickly to market changes without the burden of large upfront investments in IT infrastructure. Other advantages include improved operations, flexibility, and scalability. Cloud adoption also enables SMEs to use technologies such as AI, boosting their competitiveness.

For SMEs, the adoption of cloud computing goes beyond cost savings and operational flexibility; it offers a distinct advantage in an increasingly eco-conscious market. By leveraging cloud solutions, these businesses can significantly reduce their environmental footprint and align their IT operations with broader sustainability goals. This not only enhances their reputation but also attracts eco-conscious customers and investors, providing a competitive edge in a marketplace that values green initiatives.

Furthermore, cloud providers offer enhanced security and disaster recovery, often outperforming on-premises solutions in terms of protection and resilience. Cloud-based collaboration tools also improve teamwork and productivity, helping SMEs remain agile in a dynamic marketplace. Together, these benefits can lead to better funding opportunities and a stronger reputation.

How about compliance and assurance?

As businesses move to a cloud-based IT infrastructure, managing compliance becomes a critical consideration. Companies must meet regulatory requirements while ensuring that their IT systems remain secure and trustworthy. This journey isn't just about technology; it's about building a foundation of trust and assurance.

By prioritising security and compliance, businesses can foster trust with their stakeholders and demonstrate their commitment to protecting data and maintaining integrity. Moreover, integrating compliance into the cloud journey is not just about ticking boxes; it involves creating a holistic strategy that embeds security at every level. 

At PwC, we understand the unique challenges companies face when migrating to the cloud. Our cloud offerings ensure smooth transitions by embedding assurance at every stage. By integrating compliance into the cloud journey, we help businesses meet regulatory standards, build trust, and establish a robust IT framework that supports their long-term goals.

Furthermore, with our knowledge and experience in sustainability assurance, including sustainability reporting and assurance, we ensure that the right data is captured and reported accurately. This enables companies to demonstrate how their cloud adoption contributes to reducing emissions and advancing their sustainability initiatives.