How has technology impacted sustainability, and what changes has it brought about in the way companies approach ESG issues?
Melanie Nash: As we have seen with all technology revolutions, we get more efficient but ultimately, we often also end up using more IT. This is true for Cloud and IT developments as well.
While we see more efficient data centers, aka public clouds, specializations, and availabilities in terms of SaaS, we at the same time experience an explosion of consumption.
Basically, it means we use more energy and with AI – as the potential biggest spender. Here we’ve only seen the beginning. That’s why enterprises are starting to realize the importance of sustainability, however they are still unsure on how to approach it, and how to address it both internally and externally towards their suppliers.
Can you explain FinOps and its contribution to sustainability? How can companies incorporate FinOps into their sustainability strategies?
Melanie Nash: Reduced costs imply reduced CO2-emissions and increased sustainability, which is good news. And that’s why FinOps has a huge impact on sustainability, as it helps to right-size resources and reduce cloud spend, and hence has an impact on the environment.
The sooner companies begin to incorporate FinOps into their Sustainability strategies, the sooner they will see the results. A clear FinOps strategy and approach will help companies document their efforts and the value of their sustainability journey.
What are some of the major challenges that companies face when implementing sustainable practices, and how can technology help address these challenges?
Melanie Nash: We see two challenges; transparency and how far organizations are willing to go to achieve results.
It’ll be an imperative for companies to walk down the ‘sustainability path’, but the big differentiator is going to be if they will just put pressure on suppliers or actually invest money in this journey. Technology is, next to processes, the main enabler to achieve transparency. But again, the good news is it also allows companies to save costs.
How can companies promote their sustainability efforts without falling victim to greenwashing?
Melanie Nash: The truth is they might not be able to avoid it since ESG scores and other data are not yet at the level they should be.
However, it is still important to create the market for it and drive investments to change it. So, this might be a good case for ‘fake it until you make it’, because ultimately, we are in the awareness phase and need to show how serious we are. All efforts and good intentions are steps in the right direction.
What actionable steps can companies take today to improve their ESG scores and foster sustainability, particularly regarding IT and software asset management?
Melanie Nash: We see four actional steps necessary for organizations to boost sustainability and improve their ESG scores:
- Identify what you can measure and start doing it.
- Define clauses to add to supplier contracts, including how to measure results
- Setup reporting to showcase and drive change
- Keep looking for “waste” and address it.
Meet Melanie Nash at this year’s SAMS Nordic – secure 30% with the code MKT30!
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