The one sustainable resolution all CIOs should make and the 5 key questions they should be asking in 2023

In 2023 CIOs will have to navigate a difficult landscape as they attempt to reconcile the desire to invest in technology with the need to control costs and ensure sustainable operations.

According to a recent report by Cap Gemini, organizations that have embraced sustainable IT practices have seen an average cost reduction of 12% and an improvement in customer satisfaction of 13%. Even implementing a simple sustainable IT practice (like turning off hardware/features when not in use) can lead to operational cost savings of 14% through energy reduction and reduced carbon emissions.

But the benefits of sustainable IT go beyond just reducing emissions within a company. It also includes the entire value chain, such as reducing waste through the implementation of circular economy principles, improving supplier relations, and enhancing risk management and corporate governance.

Implementing sustainable IT practices can have numerous benefits for businesses, so why are CIOs not more aggressively pursuing them?

One reason is that over 50% of enterprises don't have the expertise and skills necessary to implement sustainable IT programs. While some CIOs are addressing this skill gap by hiring Sustainable IT directors to develop and implement IT programs that align with sustainability goals and help the business gain a competitive advantage by introducing innovative IT services, many CIOs ?I speak with simply don't have the resources to do so.

But even with limited resources, CIOs can make a significant impact on sustainability by focusing on just one area; sustainable IT procurement. Given that the average supply chain emissions are 11.4 times greater than operational emissions, it is logical for CIOs to prioritize sustainable IT procurement as a starting point.

If we consider the carbon footprint of a typical enterprise IT division, it includes purchased electricity for data centres, servers and networks, indirect emissions from suppliers, and emissions from IT hardware and equipment including end-user devices and cloud-based services. Also,the manufacturing of IT equipment has a high environmental impact from the mining of component materials, and from the overhead of he ultra-pure water required in semiconductor manufacturing plants.

In addition to emissions and environmental impact, CIOs should also consider social and ethical issues in their supply chains. For example, in 2019, International Rights Advocates sued Apple, Google, and Microsoft for poor oversight of their cobalt supply chain, which was found to be using child labor in the Democratic Republic of Congo.

Sustainable supply chain practices ensure transparency across the supply chain thereby decreasing reputational risk. These practices also ensure transparency and can help to mitigate reputational risk. They can also help to de-risk and future-proof companies and can deliver cost savings. Implementing sustainable IT procurement processes together with the procurement team, makes an easy win for any CIO seeking to make a sustainability impact.

As CIOs consider their sustainability resolutions for 2023, they should ask themselves the 5 following questions:

1.????Is sustainability an important and active topic on the IT Supply Chain agenda?

2.????Are supplier emissions known, or is there a plan to gather that information?

3.????Are sustainable procurement governance, processes and tools in place?

4.????Is there a system in place to identify and manage Supply Chain risks and opportunities?

5.????Do you review the lifecycle of your supply chain to minimise waste?

For those looking for some simple tips to get started; Niklas Sundberg recommends choosing suppliers from the Responsible Business Alliance, buying eco-labelled equipment, and including take-back clauses in agreements. Alternatively, at Future Planet we have defined a pathway to pathway to reduced emissions and positive social impact through Sustainable IT and I’d be happy to share that with you.

Failing to commit to sustainable IT procurement in 2023 is not an option, it is just up to each CIO to decide for themselves where to start.