Tech giants: showing the way in sustainability

Tech giants: showing the way in sustainability

In 2015, the world’s data centres used 416.2 terawatt hours of electricity - more than the entire consumption of the UK.

Big technology companies are among the world’s largest energy users. However, many are taking the lead when it comes to sustainability.

Individual companies’ commitments place tech firms at the energy transition forefront. Some examples: Google, the world’s largest corporate renewable energy buyer, aims to use 100% renewable energy by 2017. Apple is making clear that it expects suppliers to reduce waste and founded a subsidiary, Apple Energy, to manage its renewables activities.

Collective actions are being taken, too. RE100 brings together companies committed to switching entirely to renewable power, including Amazon, Apple, BT, Facebook, Google, LinkedIn, Microsoft, Salesforce and SAP. The Renewable Energy Buyers Alliance (REBA) is boosting corporate demand for renewable power and helping providers meet that demand. Google, Microsoft, Facebook, LinkedIn, eBay and Amazon are taking part.

Last year, tech giants Apple, Amazon, Google and Microsoft filed a legal brief supporting the Clean Power Plan for reducing power sector emissions. Bill Gates’ Breakthrough Energy Coalition has pledged over $1 billion towards the clean energy transition.

In 2015, the world’s data centres used 416.2 terawatt hours of electricity - more than the entire consumption of the UK (300 terawatt hours). A Japanese study indicates that at current growth rates the country’s data centres will consume its entire electricity supply by 2030. Data-driven companies such as Salesforce and DC/colocation providers such as Equinix have committed to reducing consumption and using renewable energy. Other data centre strategies include relocation. For example: Facebook claims its 300 x 100 metre facility in Lulea, Sweden, cooled using outside air, is the most energy-efficient ever built.

What can other industries learn from the Tech approach?

Other sectors have entirely different processes and cultures, but can learn a great deal from the way in which the tech sector is taking on these challenges. Some best practices that could be adopted widely: connecting devices and systems and monitoring processes to enhance efficiency, self-generating energy and managing grids and reusing materials, taking a ‘cradle to cradle’ approach where possible. Adobe, for example, reduces waste through a combination of product innovations, recycling and operational measures. Changing attitudes to sustainability is also driving new developments. Companies such as Philips are actively using their drive towards sustainability to boost brand image and competitive advantage.

Typically, tech company culture fully supports sustainability, placing demands on partners and supply chains. This is, in part, a result of the relatively large number of ‘Millennials’ in the sector, a group that tends to focus strongly on sustainability, according to recent Nielsen research. Firms looking to attract employees and customers from this demographic need to take that into account. Last year, the Centre for Sustainability and Excellence (CSE) published its ‘Sustainability Trends in Silicon Valley’ report. One important conclusion: to make real progress, sustainability requires attention at c-level, with dedicated professionals in charge. This level of commitment is necessary to allow new ways of thinking and working to be fully embedded. For evidence this approach works, we need only look at the tech sector.