# How application management can help tackle the finance industry’s carbon emissions
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-12
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Reducing Carbon Emissions in Finance Industry: Application
Meta Description: Learn how digital platforms can make a significant difference in reducing carbon emissions for finance institutions. Find out more with ddroidd.
URL: https://financedigest.com/how-application-management-can-help-tackle-the-finance-industrys-carbon-emissionshtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/golden-coins-sbi-300939552-2-1736837579663-compressed.jpg)

##### **With ambitious net-zero targets being pledged, there is growing pressure on the ‘high carbon’ finance industry to reduce emissions as new studies push the sector further into the spotlight. While there are several areas that need to be considered from recycling to more environmentally responsible investments, one area that is often overlooked and could make a significant difference is their digital platforms. Melissa Hendry, Co-founder and Managing Director of ddroidd, a technical and digital transformation specialist, discusses how application management can reduce carbon emissions, whilst improving performance and security.**

**Topping the carbon emissions charts**

The finance industry has been under fire following a recent Greenpeace and WWF study, which concluded if the UK’s biggest banks and investors were a country, they’d rank 9th in the world for the carbon emissions they are responsible for – 805 million tonnes of greenhouse gases in fact.

However, as one of the biggest users of online systems and data centre processing that requires high-speed and high-security processing, it is no surprise the industry emitted more emissions than Germany and 1.8 times more than the UK in 2019.

**Added pressure as the world [goes more digital](https://www.financedigest.com/lloyds-goes-digital-but-what-does-that-mean-for-loyalty.html "LLOYDS GOES DIGITAL – BUT WHAT DOES THAT MEAN FOR LOYALTY?")**

Online [banking and payments have continued to increase](https://www.financedigest.com/banking-and-fintech-convergence-will-increase-reliance-on-it.html "Banking and Fintech Convergence will Increase Reliance on IT") year-on-year since its inception; but the global pandemic caused a quicker than expected shift. As consumers began to embrace a more [digital world to reduce contact and adjust shopping habits, it put additional pressure on digital platforms to perform](https://www.financedigest.com/seenthis-launches-creative-platform-to-boost-performance-and-reduce-co2-emissions-in-digital-advertising.html "SeenThis launches Creative Platform to boost performance and reduce CO2 emissions in digital advertising").

Covid has changed the way consumers [engage with their banks](https://www.financedigest.com/how-conversational-commerce-can-help-banks-engage-with-millennials.html "How conversational commerce can help banks engage with Millennials") and shopping. This, combined with the increase in online payments, regulatory KYC (know your customer) and security checks, as well as AI for predictions, analytics and reporting, is only going to put more pressure on [financial institutions’](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") systems – resulting in more, not less, resources and energy being required.

**How data contributes to [carbon emissions](https://www.financedigest.com/playground-xyz-study-finds-carbon-emissions-from-digital-ads-fall-by-63-on-average-when-measured-and-optimized-for-attention-time.html "Playground xyz study finds carbon emissions from digital ads fall by 63% on average when measured and optimized for attention time")**

On its own, the software we use does not [consume energy](https://www.financedigest.com/uk-consumer-mood-sinks-to-new-depths-despite-energy-bills-help.html "UK consumer mood sinks to new depths despite energy bills help") or cause environmental harm. The issue is the way [software is developed](https://www.financedigest.com/reckon-software-goes-from-strength-to-strength-with-appointment-of-new-partner-development-manager.html "Reckon Software goes from strength to strength with appointment of new Partner Development Manager") and deployed. Software is dependent on hardware, and as reliance on software increases exponentially, so too does the reliance on the machines which support it.

Currently, when a user accesses a webpage, the information contained is requested from external servers. Each time the webpage is visited, most of this page information is served afresh and discarded once the user leaves. Constant information requests [mean more servers are needed](https://www.financedigest.com/does-the-monzo-effect-mean-banks-will-need-to-rethink-brand-building.html "Does the ‘Monzo effect’ mean banks will need to rethink brand building?") and there is more chance of overload as ‘new’ content must be retrieved every time. This data is unnecessarily stored and continues to consume [space on the hardware that requires energy](https://www.financedigest.com/green-initiatives-cut-self-storage-business-space-stations-energy-costs-by-75.html "Green initiatives cut self-storage business Space Station’s energy costs by 75%").

[Technology has the uncanny ability to provide solutions to the very problems it creates](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology"). Using smarter code, combined with an efficient set-up of hosting architecture, some technology providers can establish optimised applications that give [businesses full control over their processing power](https://www.financedigest.com/national-world-launches-new-ad-manager-platform-powered-by-danads-empowering-businesses-to-take-control-of-their-advertising.html "National World launches new ad manager platform, powered by DanAds, empowering businesses to take control of their advertising").

Rather than devices needing to continually retrieve the same data, technologies such as the ddroidd A+++ solution [recycles and reuses](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") previously processed information, eliminating the need for unnecessary information reprocessing that demands extensive resources. It’s a method that can cut information reprocessing by 90%, reduce a website’s energy consumption, improve reliability

and responsibility as well as [cut costs](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis"). Indeed, reducing the energy consumption of software can be 100 times more [powerful](https://www.financedigest.com/siemens-energy-signs-7-billion-eur-offshore-power-deal-with-tennet.html "Siemens Energy signs 7-billion-eur offshore power deal with TenneT") than reducing the energy consumption of hardware.

**Does streamlining data cause performance issues?**

Using smarter, more efficient code to recycle and reuse previously processed information not only reduces a business’ carbon emissions, but through proactive [application management can significantly increase the performance and security](https://www.financedigest.com/application-security-in-the-finance-industry-what-you-should-know.html "Application Security in the Finance Industry: What You Should Know") of a digital platform.

[Financial institutions need to keep data safe and secure](https://www.financedigest.com/the-financial-sector-must-act-to-tackle-internal-data-security.html "THE FINANCIAL SECTOR MUST ACT TO TACKLE INTERNAL DATA SECURITY"), at all times. Website failure and [security breaches could be catastrophic for the industry](https://www.financedigest.com/the-financial-services-industry-needs-to-get-serious-about-cyber-security-in-the-covid-19-era.html "The financial services industry needs to get serious about cyber security in the Covid-19 era"). However, if a website is running on legacy technology and inefficient architecture, or there’s an [increase in customer demand and spikes in traffic](https://www.financedigest.com/benefits-of-increasing-blog-traffic-with-guest-blogging-and-posting-service.html "Benefits of Increasing Blog Traffic With Guest Blogging and Posting Service"), it can all put a platform under extra pressure and cause it to fail.

Many [businesses will choose](https://www.financedigest.com/tips-for-choosing-the-right-chief-finance-officer-for-your-business.html "Tips for Choosing the Right Chief Finance Officer for Your Business") to have a team on standby for reactive support to fix issues or inefficiencies in an application as they arise, such as system breakdowns. Taking a more proactive approach to application [management ensures ongoing improvements](https://www.financedigest.com/improving-risk-management-in-the-insurance-industry.html "Improving risk management in the insurance industry") and enhancements to prevent inefficiencies from becoming critical performance problems.

Proactive application [management also gives an overview of the system to help develop plans for the future](https://www.financedigest.com/what-is-the-future-of-ip-management.html "What is the future of IP Management?"). It’s a long-term [solution that guarantees ongoing efficiency](https://www.financedigest.com/scanwriter-v-verafin-which-solution-can-help-you-unravel-financial-scams-efficiently.html "ScanWriter v. Verafin: Which Solution Can Help You Unravel Financial Scams Efficiently?"). Proactive application [management combined with reactive support is the perfect solution to ensure a digital platform](https://www.financedigest.com/newly-launched-quintessential-to-provide-prestige-living-management-platform-for-prs.html "Newly launched Quintessential to provide ‘prestige living’ management platform for PRS") is fit for purpose, not only today but in the future.

**But what about the environment?**

The [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") has a substantial carbon footprint, which will likely continue to increase unless drastic action is taken. While a spokesman for UK [financial institutions has advised](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") the industry is committed to being net zero by 2050, clear steps of achieving this have not been defined.

[Financial institutions](https://www.financedigest.com/what-the-future-holds-for-financial-institutions-in-2023.html "What the Future Holds For Financial Institutions in 2023") need to review their environmental touchpoints and assess how they can begin to make changes that will reduce carbon emissions. Looking at their digital platforms, is a simple yet effective first [step in reducing their impact and online](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") carbon footprint. And it could also [save money](https://www.financedigest.com/saving-money-hacks.html "Saving money hacks"), increase security, and improve performance as a result. Win win for all involved.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---