News in the Channel - issue #21

SUSTAINABILITY IN CLOUD SERVICES

CONTINUED

want transparency when it comes to the manufacturing process of their hardware. “This includes the use of mined materials such as precious metals, water usage, anti-bribery and modern slavery to name but a few areas vendors need to raise their game,” he says. “This information is critical for ESG reporting of the customer as they need to know the provenance of materials if they are to become an ethical business.” Mark says that a transparent leadership taking visible ownership of their ESG agenda signals commitment and reliability. “With some businesses requiring sustainability targets and measures in place to onboard a supplier (e.g. MSPs), it is something that should be considered throughout the channel,” he says. “ESG targets should be measurable and trackable. Accountability is everything to modern businesses, many can talk the talk, but few practice what they preach.” Communicating credentials To stand out in an increasingly crowded marketplace, cloud vendors must highlight their sustainability credentials to customers, says Becky. “Clear, measurable goals, such as reducing emissions by a specific percentage over time or achieving net zero by a particular year, are effective in demonstrating commitment. Equally important is sharing the practical steps being taken, such as switching to renewable energy sources or adopting carbon offsetting initiatives.” To connect meaningfully with consumers, vendors need to firstly be aligned with as many businesses as possible that have similar ESG values as themselves, Mark adds. “Being able to show that the business is not only doing its part but working with partners who share the same sustainable values will signal authenticity and reliability,” he says. “Having a strong ESG portfolio and showing ESG initiatives can also give you better access to credit to expand your business.” Cory adds that vendors should highlight the percentage of renewable energy that powers their services. “Vendors can also showcase the ways in which their solutions reduce energy consumption compared to alternatives,” he says. “It is also important to strongly communicate sustainability commitments to customers, as well as long-term goals and ongoing initiatives for environmental protection.” Mike Barron, UK managing director, SYNAXON, adds that customers need

to see bold and verified commitments to achieving key goals. “And, in the shorter-term, demonstrable actions: the use of plastic-free packaging and recycled materials in products and programmes that drive higher levels of recycling and reuse of products, for example. ‘However, that’s going to take a quite significant change in channel business models and applying those changes and adapting to them will take time. Once it does start to happen, the changes will happen swiftly, and we’ll see more suppliers promoting and more customers embracing a circular approach to the product lifecycle.” Future It is expected that sustainability will become more integral to business strategy in future. “Regulatory pressures and stakeholder expectations are likely to intensify, making it crucial for vendors to continue innovating and investing in greener technologies,” notes Becky. “For businesses, choosing the right cloud partner can help them meet their ESG goals, reduce their carbon footprint, and ultimately contribute to a more sustainable future. “Cloud providers that demonstrate a genuine commitment to sustainability will find themselves at the forefront of this shift, as companies of all sizes look for partners that can help them achieve their environmental and social ambitions.” Mark adds that business success is increasingly aligned with creating a positive impact on the world. “Addressing it will allow businesses to attract new revenue and gain a competitive edge while fulfilling their broader responsibilities to society,” he says. “It is important to be on the journey to sustainability with our customers, as every business has an impact. Together, let's shape a greener future and unlock the potential of sustainable innovation.” John adds that with growing concerns about climate change and increasingly stringent regulations worldwide, businesses will be under more pressure to adopt sustainable practices. “On top of that, sustainability makes commercial sense: reducing waste means cutting costs, which boosts competitiveness,” he adds. “It’s not just about doing good for the planet; it’s also about driving efficiency and value. The surge in ESG-focused investment strategies will further nudge businesses to align with these values, making strong ESG credentials a must-have for staying competitive and relevant.”

Gavin Connolly field CTO

getnerdio.com

John Bradshaw director of Cloud Computing Technology and Strategy, EMEA

akamai.com

Mike Barron managing director

synaxon-services.com

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