Going for the Green: 5 Steps Leaders Can Use to Convert ESG Commitments into ROI
Is the CEO of the world’s largest investment firm with $8 trillion assets under its management championing sustainability investments because he’s an environmentalist?
Not at all.
Larry Fink’s motives are as clear as the title of his annual letter to CEOs (“The Power of Capitalism”). “We focus on sustainability not because we’re environmentalists,” Fink says, “but because we are capitalists and fiduciaries to our clients.” Fink adds that a transition to a net zero world represents “the greatest investment opportunity of our lifetime.”
No wonder 90% of executives believe sustainability is important. And it is important. Shifting to sustainable technologies will help future-proof, well, the future of the planet itself.
According to the 2023 Insight Intelligent Technology Report, an IDC InfoBrief sponsored by Insight, 1 in 3 business leaders are focused on “balancing growth with making their business more sustainable” in the next 12 months. But this objective isn’t just about “saving the planet.”
These leaders understand that Environmental, Social and Governance (ESG) practices are more than “feel good” investment strategies. Rather, they are crucial for any organization looking to come out ahead in a global economy that’s rapidly shifting to greener technologies.
As CTO and SVP of Solutions at Insight, Matt Jackson has observed this intersection of sustainability and profitability.
“What we’re starting to see is a transition to people who are investing in ESG because it makes sense for the world and it makes sense for their business,” Jackson says. “It’s saving companies money to reduce their physical and carbon footprint.”
Insight’s President and CEO Joyce Mullen isn’t surprised to hear this.
“The top drivers for business today — improving revenue, reducing costs and enhancing sustainability — are all interconnected,” Mullen says. “Sustainability and cost reduction often go hand in hand.”
Reducing carbon output to save on costs? It sounds counterintuitive.
Don’t long-term sustainability goals and short-term profit-enhancing measures clash in periods of economic duress?
Not if you know how to harmonize your IT ecosystem with sustainability.
And with these five steps, you can meet your corporate sustainability objectives. All while making both your balance sheets and the planet a lot greener.
Top three drivers to digital business initiatives in the next 12 months:
Remember the “promise of the cloud”? The main appeal was increasing your flexibility, scalability, agility and reducing costs.
That promise has evolved to include another business-critical dimension. You guessed it: ROI-driven sustainability.
McKinsey observes that a well-planned migration to the cloud — coupled with optimized resources — reduces data center emissions by more than 55%. Evidently, if all organizations made this shift, it would offset the equivalent of Switzerland’s total carbon emissions (which is no small feat).
The trouble with climate-related projections — if all organizations did X, it would offset the equivalent of Y — is one of perspective. A single organization cannot assume the perspective of “all organizations.”
So you’re right to wonder, “How do the environmental advantages of cloud technologies benefit my organization?”
Short answer: By making you less reliant on physical infrastructure.
As you migrate more of what’s mission-critical to the cloud — be it entire databases, applications or computing power — the maintenance and energy costs for your on-premises data centers decrease.
And the less you spend on physical infrastructure, the less you spend on its upkeep — it’s that simple.
Takeaway: Keeping the “promise of the cloud” is now about harnessing capabilities that reduce carbon footprints and operational expenses in tandem.
What we’re starting to see is a transition to people who are investing in ESG because it makes sense for the world and it makes sense for their business.
Modern data center platforms further enhance your organization’s flexibility, scalability and efficiency. These capabilities can turn sustainability goals and business objectives into mutually reinforcing engines of profitability.
Converged and Hyperconverged Infrastructures (CI/HCI): These systems reduce your physical footprint and energy consumption by uniting compute, storage and networking.
Cloud integration: Whether it’s a hybrid or multicloud approach, integrating cloud technologies means more efficient resource use and scalability that result in energy savings.
Automation and orchestration: Automating routine tasks and orchestrating complex workflows will minimize overhead and maximize operational efficiency.
Software-defined infrastructure: Decoupling hardware from software leads to greater flexibility, intelligent resource management and enhanced energy efficiency.
Advanced cooling and power management systems: AI-driven systems, liquid cooling and renewable energy sources reduce the energy footprint of your data center.
Data analytics and AI: These solutions streamline operations, anticipate potential issues and adjust in real time to improve efficiency.
How do you put these innovations to work for your business? Evaluate your existing IT environment, identify potential improvements and develop a plan for implementation.
Not sure where to start? Insight services include IT environment and workload assessments, modern platform evaluation, deployment, management and expert guidance for integrating these technologies into your existing systems.
Takeaway: Modern data center platforms not only improve IT performance, but they also enhance energy efficiency.
Harvard Business Review found that over 91% of remote employees would prefer to continue working remotely or adopt a hybrid model.
Agree, disagree or undecided — the work model doesn’t matter. What does? Whatever works best for increasing productivity. In this sense, modernizing your workspace doesn’t have to be a compromise between on-siters and off-siters. It can be a win-win situation and solution.
Creating a modern digital workspace increases productivity, job satisfaction and — turning back to the subject at hand — aligns the preferences of your employees with your corporate sustainability goals.
Insight builds modern workplaces using:
Digital workplace solutions. These flexible environments reduce the need for physical resources, engage end users and help the IT team focus on strategic initiatives (rather than data management).
Collaboration solutions. These tools simplify communication and reduce the need for in-person meetings and travel (save the plane trip for the events that really matter).
Managed workplace services. These services offer modern support models that quickly resolve technical challenges and reduce in-person support (less travel means fewer carbon emissions).
Embracing ESG while maintaining a healthy cash flow and smart Capital Expenditures (CapEx) doesn’t have to be a difficult balancing act.
The business value of meeting sustainability objectives can operate quietly in the background, much like a screensaver conserving energy.
We speak from experience. Insight was recognized as one of Barron’s 100 Most Sustainable Companies for showing that sustainability can be seamlessly integrated into services (and the workplace).
Takeaway: Embracing a modern digital workplace has the dual benefit of reducing greenhouse gas emissions and aligning sustainability initiatives with economic objectives.
More than 91% of remote employees prefer to continue working remotely or adopt a hybrid model.
From smartphones to flip phones, a mere 17% of the world’s electronic waste is recycled properly.
In lieu of marshalling a small army of related stats, let’s state the obvious: Responsible consumption and disposal of technology is (and remains) a largely untapped opportunity for a sustainable IT strategy.
What’s needed is an approach that reduces waste and uncovers potential value from outdated assets. Insight’s asset disposition program is a perfect example.
Asset disposition combats environmental degradation by safely repurposing old equipment through data erasure, asset remarketing or disposal.
In 2022 alone, Insight’s asset disposition services eliminated 2.5 million pounds of electronic waste, processed 300,000 assets for clients and refurbished devices worth $30M.
How does it work? Lisa Czarnecki, an IT lifecycle specialist at Insight, explains.
“Most technology can be recycled,” says Czarnecki. “If an asset has no value, or it’s at the end of the IT lifecycle, it’s completely disassembled into salvageable plastic, glass and metal components. We then send it downstream to reputable recycling vendors and refineries. And then clients are given a certificate of recycling.”
As this process is certified by e-Stewards, R2, ISO, OHSAH and HIPAA, it meets the highest standards in privacy and security.
And rest assured, Insight’s program ensures EPA- and RCRA-compliant disposal while maximizing returns on remarketable assets — a point CFOs and financially savvy readers will certainly appreciate.
Takeaway: Sustainable tech procurement and disposal are crucial (yet often overlooked) strategies to maximize asset value, control costs and earn goodwill from your customers.
There is no mistaking the upward trend in Internet of Things (IoT). The 2023 Insight Intelligent Technology Report asked 1,000 business leaders what technology will be most essential to their efforts in 3-5 years. 79% of respondents checked the “edge/IoT” box.
Why?
The answer takes us to a public water management agency that sought an IoT solution to help it stay on top of water issues in real time.
We helped the agency establish an industrial IoT backbone for water management, including distribution, telemetry from upstream devices and to ensure safe drinking water.
Our solution was the first Microsoft Azure IoT use case implemented for water overflow management and wastewater monitoring.
The digital transformation connects 26,000 devices to help un-silo data, provides advanced analytics, and real-time alerts for issues like water overflow and sewer blockages.
No wonder data-driven sustainability solutions have captured the attention of business leaders.
But what about carbon-intensive industries? Could transportation and logistics businesses expect to reap similar benefits?
The answer is an emphatic “yes!”
GrainCorp, an Australian agribusiness, collaborated with Insight to design a cloud-based analytics infrastructure. Insight’s automated solution simplified the management of these precious resources, building a pathway to a more efficient and optimized distribution model.
These success stories aren’t standalones. They’re indicators of the broader reality. One where sustainable logistics and IoT solutions deliver the best of both environmental and economic worlds. Operational efficiency and cost-effectiveness can both improve as you shorten the distance to your sustainability goals.
Takeaway: Interconnected networks, such as IoT and smart logistics systems, offer valuable potential for boosting performance and improving your bottom line.
Addressing sustainability objectives in economically challenging times is like climbing a mountain — monumental, yet not insurmountable.
The good news is you’re already five steps into your ESG-to-ROI journey. With Insight’s services, you can make a meaningful difference that benefits your business and local communities. While getting us all a little closer to a net zero world.
So what’s the key takeaway? That business growth and sustainability are not opposing goals but complementary aspects of a modern business strategy. Organizations that act on this knowledge will emerge as leaders in the greener global economy.
Remember, this isn’t just about being environmentally conscious. It’s about being a responsible and farsighted leader.
Fortunately, you can be all at once. The only question that remains now is: Are you ready to take the next step and turn sustainability into a competitive advantage?
Dr. Justin Morris is an academic philosopher turned tech writer. As a contributor at Insight, Justin applies his extensive knowledge of ethical issues to endorse sustainable practices and encourage forward-looking conduct within the tech industry.
As a Solutions Integrator, Insight can get your business and sustainability goals further, faster.
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