BRSR for IT companies

At Corpcomm Studio we noticed that many information technology- services sector companies write “Not Applicable” under various items to be reported in BRSR ( Business Responsibility and Sustainability Report), thinking that those items are applicable only to the manufacturing sector.

In most of these cases, this is far from the truth. At the outset, BRSR is an industry-agnostic framework and the majority of the items are applicable for reporting across industry sectors.

As an example let me address the applicability of LCA for IT companies ( BRSR P2: Leadership Indicators item 1) . Many think LCA ( lifecycle assessment ) is applicable only to manufacturing companies. It’s important to note that LCA as a practice is also applicable to an information technology (IT) company. While traditionally used for physical products, LCA can also be adapted to assess the environmental and social impacts of services, including those provided by IT companies. IT services often have indirect environmental and social impacts associated with their lifecycle stages, such as development, deployment, operation, and end-of-life management.

Here are some specific examples of how LCA can be applied to an IT company:

1. Development Stage: Assess the environmental impacts of software and application development processes, including the energy consumption of servers and data centres, the use of raw materials in hardware components, and the emissions associated with the process ( mostly scope 2 & 3).
2. Deployment Stage: Evaluate the impacts of deploying IT services, such as the energy consumption of servers and networking equipment, the carbon footprint of data centres, and the environmental and social implications of cloud computing.
3. Operation Stage: Consider the energy consumption of IT infrastructure during normal operations, including servers, data storage, and networking equipment. Evaluate the indirect impacts of IT services, such as energy usage by end-users, data transfer, and internet connectivity.
4. End-of-Life Stage: Assess the impacts of IT equipment disposal, including e-waste management, recycling practices, and the potential for hazardous materials or data leakage during disposal.
5. In most cases, IT companies operate from a leased facility so it's important to track the green building practices of the building.

LCA can help identify areas of improvement within each stage of the service lifecycle and guide IT companies toward more sustainable practices. By considering energy efficiency, waste reduction, responsible sourcing, and other sustainability factors, IT companies can optimise their services to minimise environmental and social impacts.

It's important to note that adapting LCA methodologies to the specific context of IT services may require some customisation and consideration of unique aspects. However, the principles of LCA can be applied to assess and improve the sustainability performance and reporting of IT companies.

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