IT leaders: Computing research 'informs buying decisions'
The latest Sustainability Matrix is 'essential’ reading
IT leaders say Computing’s latest research into cloud providers’ ESG efforts shines a light on this complex area of procurement.
In a difficult economy, it would be no surprise if companies neglected eco-friendly efforts in the struggle to survive. But, as reactions to Computing's latest research show, they would do it without the support of their IT team.
More than 80% of the IT leaders we talked to at the start of the year said sustainability matters to them and their businesses, and investors feel the same way.
Now IT leaders have told us that Computing's latest research into Microsoft Azure, AWS and Google Cloud Platform's green credentials has brought new information to light that's influencing their buying decisions.
Read more: Sunnier skies ahead? Cloud giants dial down the greenwash
This comparative reporting is essential
Mark Ridley, a consulting CIO and previously the head of IT at organisations including Reed, Blenheim Chalcot and the Financial Times, called Computing's annual Sustainability Matrix "groundbreaking."
"Although ESG reporting has improved from the three largest cloud providers, it is really crucial that reports like Computing's Sustainability Matrix scrutinises the information that we are being provided...
"Computing's research provides us with a solid foundation to compare the major cloud vendors. For those of us working within companies who increasingly choose to voluntarily improve ESG metrics - seen through the growing popularity of the B-Corp movement - this comparative reporting is essential.
"There's no doubt that the important work that Penny and the Computing team are doing to make ESG reporting clearer and easier to access will consistently inform the buying decisions that I'm involved in."
Really insightful
Steve Capper, CIO at AtkinsRéalis and winner of IT Leader of the Year at last year's UK IT Industry Awards, said ESG is "of great importance" at his firm, serving as a "crucial KPI during our procurement and vendor onboarding processes."
That makes the information in the latest research, which specifically examines cloud providers' holistic sustainability efforts, "really insightful" for AtkinsRéalis - and other firms, as reporting of indirect scope 3 emissions are expected to become mandatory in the near future.
Lack of data will limit adoption of cloud technologies
A CIO in the Government sector, whose organisation is "struggling" with scope 3 tracking, sounded a warning bell that cloud providers should pay attention to.
"A lack of useful and transparent data from the public cloud providers, especially as it relates to scope 3, will limit the scaled adoption of cloud technologies," they said.
"All organisations, especially government, are developing testing criteria in the journey towards net-zero. Current data [from cloud providers] does not currently support the evidence thresholds."
The CIO, who could not be named due to ongoing negotiations, was referring to tech companies' tendency to lump all climate reporting together, rather than splitting the cloud business out separately.
This means, for example, that AWS' emissions are simply rolled into Amazon's in ESG reports. The same applies to Azure and Microsoft, and GCP and Google.
We've made a case against this practice to the cloud vendors every year since launching the Sustainability Matrix. This year it seems that one of them was listening – at least partially.
In the 2024 Matrix, Google has broken its datacentres out from the rest of its business in terms of carbon-free energy generation and water consumption. Water consumption data is even provided on a per datacentre basis, which is most welcome. Both Google and Microsoft have also started providing GHG emissions on a regional basis, meaning data is available for EMEA, North America, Asia Pacific etc.
This greater across-the-board transparency really helped Google gain the edge over Microsoft in the 2024 Sustainability Matrix.
On the other hand, all Amazon sustainability data is a global aggregate. The company does not break AWS out for any reporting, or even report by global region. Computing spoke with Chris Walker, director of sustainability at AWS, in April, who confirmed the company is aware of the demands for greater transparency and granularity but is still working out how to balance that with the need for security.
"We're being more transparent but there's a lot more work we can do in that space," Walker said.
"One of the things that we're regularly looking at is the balance between transparency and security. Inherent to our datacentre DNA is security. Datacentre locations and designs are inside a red zone and that natural culture we have as a company and of our operations. Our job is to find a balance between disclosing a little bit more and finding out what we can start talking about and telling that story a little bit more."