Organizations are increasingly focusing on the impact they have on the environment and how the environment affects business activities. S&P Global Market Intelligence unveils the crucial intersection of environmental, social and governance (ESG) factors with the rapidly evolving landscape of cloud computing in the blog post, "The growing imperatives of ESG and how cloud computing measures up."
Read the blog to learn from insightful research that explores the role of ESG criteria in evaluating cloud providers, measuring sustainability and meeting compliance standards. You'll gain valuable knowledge and practical strategies to navigate this transformative era. Take charge of your ESG journey today. Read the blog and contact us to learn how add it Cloud Solutions can support your ESG journey at every stage.
What is ESG and why is it important?
ESG stands for Environmental, Social, and Governance. It emerged in the 2000s as investors began to recognize the importance of these factors in asset management and financial research. Today, ESG has become a critical agenda across various sectors, influencing decision-making beyond just financial metrics. Companies are increasingly held accountable for their ESG commitments, which can impact their competitive advantage.
How do cloud computing providers perform on ESG metrics?
Cloud infrastructure providers generally score higher on environmental metrics compared to their peers in leased datacenters and managed hosting. For instance, 42% of cloud vendors have an ESG score of 60 or above for environmental dimensions, indicating a strong focus on sustainability. This efficiency allows enterprises to potentially reduce their energy use by up to 60% by migrating workloads to the cloud.
What role do ESG factors play in technology purchasing decisions?
ESG factors are increasingly important in technology purchasing decisions. According to a study, 76% of respondents indicated that the environmental impact of potential technology purchases is either very important or somewhat important. This trend is particularly pronounced among businesses in the financial and software IT services sectors, highlighting the growing emphasis on sustainability in procurement processes.
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