# Implementing sustainable technology practices that don’t come at a cost
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-05-23
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Why Sustainable Planning is Essential Post-Pandemic
Meta Description: Uncover the hidden costs of high-intensity compute technologies on carbon footprints and learn why sustainable planning is the future of financial success.
URL: https://financedigest.com/implementing-sustainable-technology-practices-that-dont-come-at-a-costhtml

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_By **Nick Dale,** EVP Business Development, [Verne Global](http://WWW.verneglobal.com)_

The pandemic has had an unforeseen effect on ESG requirements, and in particular on sustainable planning. Instead of tightening money belts, business leaders are instead looking to improve the sustainable and societal impact of business operations. Why? The pandemic exposed risk that was completely unanticipated, shocking [investors and executives who had failed to future-proof portfolios and businesses](https://www.financedigest.com/thoracic-drainage-devices-market-rising-new-business-opportunities-for-investors.html "Thoracic Drainage Devices Market Rising New Business Opportunities for Investors"). It was the first real proof-point for sustainability, and with decision-makers unwilling to be caught in this situation again, the [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector.html "Combatting economic uncertainty in 2023 with the payments sector") borne out of the crisis is widely being used as an opportunity to realign on sustainable planning. A focus on ESG is not just lip service to social conventions, [it’s now good financial](https://www.financedigest.com/midlands-accountants-say-its-never-too-early-to-get-financial-protection.html "MIDLANDS ACCOUNTANTS SAY IT’S NEVER TOO EARLY TO GET FINANCIAL PROTECTION") policy.

The way forward is clear: as ESG applies [financial rather than just moral relevance to planning](https://www.financedigest.com/cfos-need-a-focus-on-forex-in-financial-planning-tools-accountagility-reveals.html "CFOs need a focus on forex in financial planning tools, Accountagility reveals") models, a business making strides towards being carbon neutral is a safer investment than one that isn’t. But even as business leaders strive to make greener choices, many are unaware of the hidden environmental [costs of their technologies](https://www.financedigest.com/latam-airlines-reduces-cost-per-user-by-83-thanks-to-innovative-ad-technology.html "LATAM Airlines reduces Cost Per User by 83% thanks to innovative ad technology").

**The environmental cost of high intensity compute**

Even before the pandemic, [enterprises have looked to artificial intelligence to aid in predicting](https://www.financedigest.com/2019-predictions-ai-enterprise.html "2019 predictions: AI in the enterprise") market conditions and business outcomes. Indeed, in January 2020, some 85 percent of financial institutions reported they were using some form of AI ( [University of Cambridge and World Economic Forum Survey](http://www3.weforum.org/docs/WEF_AI_in_Financial_Services_Survey.pdf)). Adoption of AI has become even more ubiquitous across industry [sectors in recent months as businesses have relied more heavily on data](https://www.financedigest.com/how-data-governance-as-a-service-can-transform-the-financial-sector.html "How Data Governance-as-a-Service can transform the financial sector") to provide facts during periods of uncertainty. So, even as the focus on sustainable planning in terms of technology practices has increased, access to high intensity [compute has in tandem become an increasingly integral component of business](https://www.financedigest.com/how-cloud-computing-saves-businesses-money.html "How cloud computing saves businesses money") operations across the board.

Unfortunately, this is not helpful for companies trying to reduce their [carbon footprints](https://www.financedigest.com/coca-cola-digital-ad-campaigns-use-seenthis-streaming-technology-to-avoid-excessive-carbon-footprint.html "Coca-Cola Digital Ad Campaigns Use SeenThis Streaming Technology to Avoid Excessive Carbon Footprint"). Because of the vast and [complex data](https://www.financedigest.com/tackling-the-complexity-of-data-within-financial-organisations.html "Tackling the complexity of data within financial organisations") sets that are needed to train models that can identify patterns and generate predictions, the supercomputers that need to be used are extremely power-hungry. Plus, for insights to be relevant, compute often needs to run constantly, with minimal disruption to uptime. As an example of how power-intensive high performance computing can be, the carbon emissions released each day by the ICON weather forecasting algorithm is approximately equal to flying from New York to San Francisco four times (per [2020 University of Cambridge research](https://arxiv.org/abs/2007.07610)).

**The hidden [emissions adding to your carbon](https://www.financedigest.com/how-to-reduce-your-business-carbon-emissions-without-impacting-profit-margins.html "How to reduce your business’ carbon emissions without impacting profit margins") footprint**

![Nick Dale](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/nick-daleverneglobal-450x322-1736838315996-compressed.jpg)

Nick Dale

The good news for enterprises looking to implement [sustainable technology](https://www.financedigest.com/cryptocurrency-a-viable-route-to-sustainability-for-financial-technology.html "Cryptocurrency: A viable route to sustainability for financial technology") practices is that there is a standardised method of gauging carbon emissions against which they can measure their efforts. The most widely recognised international accounting and reporting standards for greenhouse gases is supplied by [The Greenhouse Gas Protocol (GHGP)](https://ghgprotocol.org/). It clearly [sets out the emissions](https://www.financedigest.com/norways-wealth-fund-tells-firms-to-set-net-zero-emission-goals.html "Norway’s wealth fund tells firms to set net zero emission goals") generated by enterprising operations that contribute to a carbon footprint into three different ‘scopes’.

However, the ‘bad’ news is that while companies may have already been aware of their Scope 1 emissions – those from directly owned or controlled sources – and perhaps their Scope 2 emissions, those indirectly generated from [energy purchased by the company](https://www.financedigest.com/luc-remont-proposed-as-new-boss-of-french-energy-company-edf.html "Luc Remont proposed as new boss of French energy company EDF"), many are only beginning to take note of their Scope 3 emissions, which include all other indirect emissions. This means [companies who truly want to commit to sustainable technology](https://www.financedigest.com/5-top-tips-on-how-to-grow-a-technology-company.html "5 Top Tips on how to grow a technology company") practices have to scrutinise activities across the entire value chain.

Over 80 percent of compute doesn’t need to be located [near the end](https://www.financedigest.com/exclusive-nissan-seeks-tech-tie-up-without-renault-as-alliance-nears-end-of-road.html "Exclusive-Nissan seeks tech tie-up without Renault as alliance nears end of road") user, which means that many enterprises choose to locate it externally, for example somewhere the financial cost of the power is less. However, the GHGP stipulations mean that when a business’s compute is passed on to an external [data centre](https://www.financedigest.com/manchester-arts-centre-the-lowry-selects-logpoints-siem-technology-to-safeguard-customer-data.html "Manchester arts centre The Lowry selects LogPoint’s SIEM technology to safeguard customer data"), the emissions generated by it are still counted among their Scope 3 emissions.

**Relocating compute is better for business**

With the environmental cost of AI being so high, [enterprises need to think even harder about where to locate their high intensity compute](https://www.financedigest.com/enterprise-training-and-the-future-of-cloud-computing.html "Enterprise Training and the Future of Cloud Computing"). It’s [becoming clear that the best way](https://www.financedigest.com/ways-to-become-a-millionaire.html "Ways to become a millionaire") to offset the high energy consumption of high intensity compute is to locate it in a data centre that is connected to a power grid fuelled by renewable energy sources. For example, tech giants such as Google are [investing in data centres](https://www.financedigest.com/buyers-shun-city-centres-for-country-villas-when-it-comes-to-lifestyle-investment-in-iberia.html "BUYERS SHUN CITY CENTRES FOR COUNTRY VILLAS WHEN IT COMES TO LIFESTYLE INVESTMENT IN IBERIA") in the Nordics specifically for the renewable energy and increased energy efficiency that can be found there.

What’s more, this kind of [sustainable investment doesn’t have to come with a financial](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability") penalty. In Iceland, for example, where the grid is powered by abundant geothermal and hydroelectric renewable energy sources, companies using high intensity compute services can be offered a lower [cost electricity tariff that is fixed for ten years](https://www.financedigest.com/commonenergy-mistakes-costing-homeowners-hundreds-of-pounds-each-year.html "Commonenergy mistakes costing homeowners hundreds of pounds each year") or more by data centre providers. As well as not enforcing a choice between sustainability and profitability, the fixed [costs allow for long-term financial](https://www.financedigest.com/how-much-does-cloud-based-financial-software-cost.html "How Much Does Cloud-based Financial Software Cost?") planning around sustainable technology practices.

Focusing on sustainability is no longer a box-ticking exercise, but amounts to smarter business. Re-designing operations as the effects of the [pandemic begin to subside is not about building back](https://www.financedigest.com/as-who-pandemic-pact-talks-begin-poor-countries-on-back-foot.html "As WHO pandemic pact talks begin, poor countries on back foot") what you had, it’s about building something better. With the option to locate [energy intensive parts of the value chain somewhere they can be powered](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") with reliable, low-cost renewable energy sources, future-proofing a company doesn’t have to come at a cost to its bottom line.


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