Smarter IT choices are needed to stay ahead of the ESG curve

The construction sector has a vital role to play as we aim to create a lower carbon future. Buildings account for 40% of energy consumption worldwide and a third of greenhouse gas (GHG) emissions. Furthermore, the past 20 years have seen emissions from cement and concrete production double, currently amounting to 8% of global carbon dioxide generation.

There is a renewed and industry-wide focus on tackling these issues. Architects Declare and UKGBC are among the groups pushing to accelerate real change and a host of initiatives and awards have sprung up aimed at encouraging best practices to make a tangible difference. 

There is also mounting pressure on building firms to provide indisputable evidence of their environmental, social and governance (ESG) policies and of the benefits they bring. Carbon offsetting is increasingly disapproved of as an example of greenwashing, an empty promise that will not contribute to reaching net zero targets.

Two ESG disclosure laws became mandatory in the UK in 2022, and reporting will become further formalised through new sustainability disclosure requirements. Many other countries are following suit – in Europe, the non-financial reporting directive (NFRD) is being expanded to include stricter reporting to meet new EU sustainability standards.

Exclusion from tenders is on the horizon unless firms can validate their sustainability claims

These measures are a shot across the bows for construction firms, heralding what is to come. ESG requirements in public tenders are getting more stringent and further stipulations are expected to follow, which could impact the bottom lines of non-compliant businesses.

Exclusion from tenders is on the horizon unless firms can validate their sustainability claims. So the implications are clear: what is needed is fundamental behavioural change.

Change starts from within

Although mindsets are shifting when it comes to design and construction, working practices within many building firms themselves trail behind. Legacy IT systems have long been an industry millstone, hindering operational efficiency.

What is less well understood is that outdated IT infrastructure is a huge generator of carbon dioxide. Enterprise technology accounts for about 1% of worldwide GHG emissions – the same amount generated by the whole of the UK and equal to half of all emissions from global aviation and shipping.

It is all too common for architects, designers and engineers to work on bids for eco-friendly projects on power-hungry CAD workstations

Implementing greener IT is not simply about reviewing infrastructure to drive carbon reduction; it is also about instigating new attitudes and behaviours to transform working practices, operations and solution efficiency.

Unfortunately, many construction companies are not practising what they preach. It is all too common for architects, designers and engineers to work on bids for eco-friendly projects on power-hungry CAD workstations that do not maximise the use of renewable energy sources.

Once the project kicks off, project teams replicate that behaviour many times over. To put that into perspective, 60 traditional CAD workstations running for 12 hours produce approximately 48,000kg of CO₂ – the equivalent of driving a family car seven times around the Earth.

Smarter IT choices hold the key

The figures make it clear that IT teams have the potential to make a tangible difference to a company’s environmental impact. Fortunately, there are a number of practical steps that teams can take to accelerate the journey to net zero.

Adoption of desktop-as-a-service (DaaS) is one way to contribute to ESG targets. VDIPOD, for example, is a purpose-built VDI platform tailored for AEC applications that is hosted from data centres operating on 100% renewable energy.

It provides firms with metrics and an audit trail to simplify ESG reporting. Construction companies using this solution use 81.7% less energy with an 89% renewable power model (one VDI server supporting 60 laptops/thin clients) at source and CO₂ reduction of up to 43% compared with traditional CAD workstations.

Since migrating over 400 employees to VDIPOD, a multi-award-winning international architecture studio has already achieved a three-fold increase in renewable power use and a 90% reduction in kilowatt hours per person. These benefits will grow as the platform is rolled out across the US, Canada and Asia.

Migrating to an infrastructure-as-a-service (IaaS) model is another route that IT teams can take to reduce their organisation’s environmental impact. With fully-managed IaaS, infrastructure responsibility moves to the service provider, along with power consumption and carbon footprint.

IT teams can reduce energy consumption, cooling costs and waste from decommissioned equipment

Escaping the burdens of maintaining on-premise technology, IT teams can reduce energy consumption, cooling costs and waste from decommissioned equipment. Cloud providers can also improve firms’ sustainability and ESG scores further by using virtual machines and containers to reduce the number of data centre servers.

Global engineering company SNC-Lavalin is working with AEC industry IT specialist Creative ITC to reduce its global data centres from 16 to three. “One of the biggest benefits we have already seen in our carbon footprint is we have reduced storage by 69%, electricity by 53% and floorspace by 45%,” Steve Capper, group CIO of SNC-Lavalin, says.

When looking to engage an MSP providing new sustainable technology solutions and futureproof IT infrastructures, be sure to scrutinise their ESG credentials and industry experience to ensure you unlock the greatest value and achieve the greatest impact on sustainability goals.

With public cloud hyperscalers increasingly castigated for under-used resources and poor environmental controls, smaller cloud providers may be a consideration. Creative’s private cloud solutions are hosted from Equinix-powered data centres, which operate on 100% clean, renewable energy. The company’s data centres operate at approximately 90% utilisation and achieve a power usage effectiveness ratio (total energy used versus energy delivered to IT equipment) of 1.2 versus an industry average of 1.8.

Unlocking benefits

There is a clear connection between ESG aims and business value. By implementing more sustainable working practices, such as adopting fully managed IT solutions like DaaS and IaaS, companies can dramatically reduce their carbon footprint and positively impact ESG scorecards.

Moreover, in addition to contributing to global environmental goals, business leaders adopting best practices will reap operational and financial rewards. With increasingly stringent ESG requirements, they will have more opportunity to bid for tenders and face fewer regulatory interventions.

Time is running out for the industry to drive fundamental behavioural change and make smarter choices

Sustainable companies outperform their industry peers on profitability and EBITDA, and enjoy increased productivity, top-line growth and reduced costs. Publicly owned top performers are also more likely to see greater equity returns, reduced downside risk and higher credit ratings.

With such a pivotal role to play on a global stage, time is running out for the industry to drive fundamental behavioural change and make smarter choices now. As environmental, social, and governmental concerns grow ever more urgent, business and IT leaders should keep these benefits at the front of their minds and leave no stone unturned to transform their operations for the better. Future success – for their firm and the planet – depends on it.

Keith Ali is managing director at Creative ITC