CIOs go green, vet IT investments for sustainability

Sustainability is on the rise as a CIO imperative, with most CIOs now central to their organization’s increasing focus on sustainability planning — a trend that’s shaking up what technologies IT leaders are investing in and the vendors and partners they are signing deals with.

More than nine in 10 CIOs are ramping up sustainability investments, according to the Logicalis Global CIO Report for 2024. The report, based on an annual survey of IT leaders, also found that 90% of CIOs prioritize partners and vendors based on their sustainability credentials — a huge change since the 2023 report, when 49% of CIOs looked at carbon output, sustainability, and energy efficiency when choosing new suppliers.

With massive data centers and AI projects likely to consume huge amounts of energy in the coming years, CIOs are paying attention to the carbon footprint of their IT operations, says Bob Bailkoski, CEO of Logicalis, an IT reseller and managed service provider.

CIOs seem to be responding to pressure from above as company leaders face regulatory, shareholder, and employee demand to limit their carbon emissions, Bailkoski says. Many CIOs and other company leaders are now seeing sustainability as a key piece of their employee recruiting efforts, with many job seekers prioritizing green initiatives.

“[Top talent] can get top dollar wherever they go, but they won’t choose an organization based on the dollar value,” he says. “They’ll choose based on whether values align overall.”

Customer demand is also fueling the trend, Bailkoski says. “There’s a clear correlation between organizations that have a sustainable offering or sustainable outlook and an improved bottom line,” he adds. “If you have a sustainable approach, your consumers prefer to buy from you versus the competitors.”

CIOs go green

US Signal’s Gaudy Jandron is one CIO not surprised by the changing tide. In 2023, the cloud, security, and networking service provider announced it will transition its data centers and offices in Michigan to renewable energy sources, Jandron says.

That the CIO role has become more strategic and business-focused is another factor for green IT efforts targeting power and digital infrastructure, she says. “The CIO is now responsible for identifying and implementing new technologies that can help the organization achieve its business goals, including sustainability planning,” Jandron adds.

Like most CIOs in Logicalis’ survey, Jandron examines the sustainability efforts of potential suppliers and partners as part of her vendor selection practices. In addition, US Signal has created a sustainable data management to-do list, which gives its customers tips on how to limit the amount of data they store and thus, reduce energy use. The company’s Michigan data centers have installed power-efficient technologies, including in-row cooling systems and high-density servers, she adds.

Mike Rawson, CIO of citizenM, is also emphasizing green IT as part of the global hotel chain’s IT strategy. Rawson’s focus on adopting innovative technologies that support sustainability includes implementing blockchain for transparent ESG reporting, AI for energy management, and IoT solutions to monitor and reduce resource consumption, he says.

Rawson also has several other sustainability tasks, such as overseeing the IT tools for ESG management and reporting, collaborating with the company ESG team to create a cohesive sustainability approach, and promoting a culture of sustainability in the IT department.

Rawson’s work with ESG is emblematic of a larger trend that sees CIOs as central to companies’ ESG reporting efforts.

As for vendor and partner evaluation, Rawson has also added sustainability criteria into the company’s procurement processes.

The hotel chain’s sustainability efforts go beyond IT as well; it requires new hotels to meet green energy standards, and it works with partners to reduce food waste.

“CitizenM is committed to reducing the carbon footprint of its IT operations,” Rawson says. “This includes optimizing data centers for energy efficiency, adopting cloud solutions that prioritize sustainability, and implementing green IT practices.”

CIOs as sustainability leaders

IT leaders should go beyond jumping onto the green bandwagon, however, says Tony Bailey, executive vice president at InterVision, an IT services provider. Instead, they should spearhead sustainability efforts.

“As technology leaders, we have a responsibility to drive environmental sustainability across our operations and product lifecycles, setting an example for the industry and our customers,” he says.

InterVision offers modern workforce management solutions that help customers manage distributed workforces. InterVision also has several in-house sustainability initiatives, with goals to decrease commuting-related emissions and office power consumption by 25% each year, Bailey says.

Like many of the CIOs represented in the Logicalis survey, Bailey evaluates the sustainability efforts of potential partners and suppliers. InterVision actively looks for partners that take innovative approaches to reducing their environmental impact, he adds.

Bailey sees the company’s sustainability efforts as creating much bigger benefits than simply protecting the environment.

“This approach benefits the environment, enhances operational efficiency, attracts top talent, and positions us as a forward-thinking organization,” he says. “By integrating sustainability into our core business strategy, we’re not only reducing our environmental impact but also creating long-term value for our stakeholders.”