Growing your business and saving the planet don’t have to be mutually exclusive goals
If there’s one thing the IT industry needs to get real about, it’s technology’s impact on the climate and the need to take sustainability seriously. There’s a major conversation to be had on the subject of AI and energy but we’ll save that for another day. In any case, the recent news about DeepSeek might well bring some respite in terms of the potential impact of the growth of AI on existing climate commitments.
Staying on the subject of sustainability, the recent Channel Trends Report from Agilitas IT Solutions provides some good news overall. Although based on a survey of UK channel companies, it is of relevance to Ireland.
The good news is that sustainability is rising up the agenda for channel companies again, after falling down the list of priorities in 2022 and 2023. The even better news is that the industry is shifting from offsetting, which has been the subject of some controversy over its effectiveness, to carbon reduction strategies.
According to the survey, a third of channel businesses invested in offsetting strategies in 2022, but that proportion has now dropped to less than a quarter.
Instead, channel business are putting more focus on reduction strategies which, when done effectively, can reduce carbon and cost. More than a third (36%) of those surveyed have already implemented initiatives to become more sustainable with energy efficiency by streamlining business processes, implementing remote and hybrid working models and working with eco-friendly suppliers. Another 37% are planning to implement strategies in the next 12 months. Unfortunately, over a quarter are not prioritising any carbon reduction activities in the near future. But that’s still only a minority.
As Deborah Johnson, head of ESG at Agilitas notes, carbon reduction strategies “focus on directly reducing the amount of greenhouse gases emitted into the atmosphere from a business’ own operations. By adopting energy-efficient technologies, transitioning to renewable energy and improving waste management, businesses can make a meaningful and lasting impact on mitigating climate change and can often make cost savings too from creating greater efficiencies”.
When asked to score sustainability out of 10, three-quarters of companies rate it as a 7. The survey notes “a significant divide” in the way different roles perceive and act on sustainability. Only 8% of junior managers view sustainability as a high priority compared to over half of CEOs and business owners.
Taking ownership
This is understandable given that the role of junior managers is likely to be far more fixed on the day-to-day and much less strategic. The good news is that the people with the power to do something about implementing sustainability policies, such as CEOs and business owners, are much more preoccupied with the subject. A cynic might say something like ‘they would be, wouldn’t they?’, while suggesting their interest might have more to do with being perceived to be sustainable than doing anything substantial about it.
Doubtless there are some who are working on this as a protective measure and it’s less about protecting the planet and more about protecting their business. But you know what? That’s fine. If the two become synonymous, even better.
The other point worth noting is that over half of respondents in all age groups believe sustainability will impact the channel in the next 12 months, including a massive 91% of 18-24 year olds.
Agilitas quotes Lee Ellams, head of marketing at Tieva, who argues that partnerships “are key to sustainability in the IT channel, enabling companies to share resources, knowledge, and solutions. Together, they can tackle supply chain emissions, boost energy efficiency, and promote circular economy practices”.
He adds that suppliers can adopt green manufacturing and share sustainability data to help integrate their efforts into broader practices to benefit clients and the ecosystem.
On that note, the report highlights transparency as an important consideration for the channel, particularly when considering consistent data collection, clear communication and reporting mechanisms.
Channel businesses need to be able to log data accurately and regularly to track progress and demonstrate commitment to sustainability efforts. This is particularly relevant to channel companies because accurate data collection is essential to tracking Scope 3 emissions and providing support for their customers’ sustainability goals.
Ellams notes that achieving full carbon footprint visibility across Scope 1, 2, and 3 for MSPs and VARs is “challenging due to complex supply chains and inconsistent supplier data. Key obstacles include limited visibility into Scope 3 emissions, unreliable data, and inconsistent reporting”.
Commenting on the issue, Agilitas CEO Sara Wilkes argues there is a need to create a culture of collaboration and innovation: “We have been no stranger to overcoming challenges throughout our sustainability journey, and the importance of high-quality data collection cannot be underestimated. Ensuring data is accurate, well-logged and reviewed regularly is just the first step.”
According to the report, sustainability “is no longer a distant goal for businesses in the IT channel; it has become an urgent imperative”. Let’s hope so. And let’s hope it’s an imperative for many other industries too.
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