Why CIOs must lead the charge on ESG – and why enterprise architecture is the key

In an era marked by heightened environmental, social and governance (ESG) scrutiny and rapid artificial intelligence (AI) adoption, the integration of actionable sustainable principles in enterprise architecture (EA) is indispensable. By embracing sustainable architecture practices and aligning technological advancements with sustainability objectives, organizations can harness AI’s transformative potential while safeguarding the planet while meeting regulatory requirements. 

As research suggests, the potential benefits of generative AI (genAI) adoption far outweigh the challenges, making it imperative for businesses to adopt a strategic approach toward scaling their AI implementation while observing guidelines for ESG compliance. 

Beyond AI, EA plays a critical role in ensuring the incorporation of ESG sustainability principles into architecture designs, standards and metrics. The outcome not only focuses on a mission aligned with addressing climate change and promoting societal good but also ensures digital resilience and future-proofs businesses. Leveraging sustainable architecture principles and practices, organizations can link enterprise business and technology strategies with ESG principles that have the potential to unlock new opportunities for innovation, efficiency and competitive advantage while aligning to a strong mission statement regarding improving societal impacts on the earth. 

Is your IT sustainable? The urgent call for green IT leadership 

SustainableIT.org’s IT standards for ESG sustainability report shows that IT’s share of carbon has grown 2.5x since 2007. With the sudden deployment of AI “everywhere” IT is having significant positive and negative impacts on organizations’ goals to reduce greenhouse gas (GHG) emissions.  

• IT’s Scope 2 and 3 GHG emissions are equivalent to the UK’s total annual emissions and half that produced by the aviation industry. Training a single AI model emits as much as five average cars over their lifetimes.  
• Data centers consumed 220-320 TWh (trillion watts per hour) in 2021, roughly 7% of what the entire US consumes annually. 
• GPT-3 training used energy equivalent to 120 average U S households’ yearly consumption and generated equivalent to the yearly emissions of 120 US cars. GTP-4 is rumoured to be 10x times larger. 
• E-waste was 57 Mts (megatons) or 1 million metric tons in 2021, heavier than the entire Great Wall of China. E-waste will double to 120 Mts by 2050. Material value is $62.5 billion, but only 20% is recycled. 

Capgemini’s Sustainable IT report reveals that only 18% of 1,000 large organizations have a comprehensive IT sustainability strategy with clear goals and timelines. Nearly half of these companies lack the tools to implement and scale sustainability initiatives in IT. This gap underscores the urgent need for businesses to integrate sustainability into their IT practices, using technology to drive lasting environmental and operational benefits. 

These challenges, though significant, can be met by engaging your EA competency which will focus on the design of sustainable architectures while leveraging principles, patterns and deployment strategies focused on green design, green coding and responsible AI as a catalyst for sustainability. By aligning enterprise technology strategies and design with ESG principles, organizations can drive positive impact while unlocking new opportunities for innovation, efficiency and competitive advantage. 

The role of EA in ensuring IT sustainability and the responsible use of AI  

The new composition of IT leadership to make sustainable IT a reality must take hold to ensure sustainability strategies have equal airtime with executives and are considered with weight along with other IT strategies tied to digital transformation: cloud migration, technology currency, AI applied to corporate systems like supply chain, vendor selection/performance and cybersecurity, to name a few. 

For companies to ensure they meet their sustainability mandates as well as ensure responsible AI development and deployment, they must now consider their:  

• Energy demand and carbon emissions 
• E-waste/IT infrastructure end-of-life management and circularity 
• Water usage (ensuring availability and sustainable management of water) 
• Unfair/biased decision-making and discriminatory outcomes (human impact). 
• Data security and customer privacy 
• Unethical business conduct 
• Equality and access for all 

EA plays a crucial role in coordinating the various roles, processes, information, applications and technology required for an organization to effectively implement its architectural framework while ensuring alignment to CIO, CDO and CEO strategic initiatives and drivers. For those working within or alongside EA, these concepts are well-established pillars of the discipline. 

SustainableIT.org’s Sustainability principles for EA will help EA organizations stand up new ways of assessing the viability of solutions against key sustainability principles while defining alignment to ESG standards. Now more than ever organizations realize the importance of EA and its ability to inform the CxO agenda. EA’s look at the entire “estate” with an enterprise-wide view and being inclusive in their approach to solutioning business asks while acknowledging the importance of taking sustainability measures and responsible AI practices into account. 

What is new is EA’s focus to be inclusive of ESG mandates that span financial and reputational impacts and benefits. EA must now provide strategic planning and architecture services that incorporate new skills and techniques to help organizations leverage sustainable architecture principles and sustainable architectural designs to seamlessly integrate their enterprise business and technology strategies with ESG goals. By aligning your infrastructure and operations with ESG frameworks, we identify key opportunities to drive innovation, enhance operational efficiency and gain a competitive edge. EA’s expertise ensures that an organization not only meets compliance standards but also capitalizes on the growing demand for sustainability-driven business models. 

Incorporation of new sustainable architecture and responsible AI principles, practices and patterns 

EA must now consider ESG goals and metrics and incorporate ESG and AI principles into their Architecture Guidelines and Guardrails, applying them to both business and IT initiatives. 

SustainableIT.org has defined standard EA sustainability and high-level Responsible AI principles that I believe map into existing EA Frameworks like IASA BTABoK. Some ESG principles are already covered under standard architectural frameworks, while others are an extension to existing Level 1 principles. These include a business focus on ethics, AI data optimization for trustworthy outcomes, energy-efficient technology and application principles centered on UX and accessibility for all. 

Just as with existing practices such as application rationalization, technology modernization and cloud migration, sustainability and green IT principles must be integrated into solution evaluations. These should be considered through the lens of ESG and responsible AI, forming a key part of the architecture competency deliverable. 

In addition to updating and creating new ESG principals, EA must update their artifacts and deliverables to focus on sustainable architectural designs and green engineering standards. As a starting point, we should look at updating the following artifacts that are produced: 

Business impacts  

• Business models  
• Business capabilities  
• Strategic planning efforts  
• Objectives and key results  
• Road mapping and investment planning  

Technical impacts  

• Quality attributes impact assessment  
• Sustainable design principles  
• Sustainable patterns and reference models  
• Cloud and infrastructure methodology  
• Requirements impacts  
• Product road mapping  
• Design review authority  

Business architecture should have a new level of importance in organizations as solutions need to consider a focus on reduction of waste while improving environmental outcomes. When redefining existing workflows and accessibility to systems they must consider a diverse workforce. Finally embracing opportunities for a “circular” economy will be key. With a circular economy, organizations can drive the optimization of resources, reduce the consumption of raw materials and recover waste by recycling or giving it a second life as a new product. Research indicates that the circular economy presents a $4.5 trillion economic opportunity by minimizing waste, driving innovation and generating jobs. And emerging business models centered on reuse, repair, remanufacturing and sharing offer substantial potential for innovation. 

New EA governance structures 

Governance principles regarding how to measure architectural designs for ESG and responsible AI and who EA engages to report on governance decisions must also change. During an architecture review, architects and engineers should consider the sustainable impacts (both positive and negative) that each option provides. The EA competency needs to become proficient in understating the sustainable IT standards taxonomy and how to effectively assess, research and vet technology/solution options for their ability to achieve positive business outcomes while ensuring they meet sustainability goals. 

Capturing the pros and cons of the recommended options and the decision records of what was voted on and agreed to and by whom will be critical for traceability. These records tracked metrics on cost reduction, technology currency, service reuse, security compliance and adherence to data principles. New key metrics to capture include:  

• Alignment with strategic goals. Measures how architecture initiatives support business transformation goals, sustainability targets and key performance indicators (KPIs). 
• Compliance and governance. Regulatory compliance ensures that architecture designs comply with industry standards and regulations, including GDPR, HIPAA or ESG frameworks. This should include new ISO standards. 
• Technology alignment and rationalization 
  • Technology debt reduction. Measures progress in reducing outdated or redundant technology systems. 
  • Standardization and integration. Assesses adherence to technology standards, including cloud migration, integration with legacy systems and enterprise-wide IT solutions. 
• Cost and resource optimization 
  • Cost efficiency. Tracks cost savings from architecture initiatives, such as through optimization of IT infrastructure, cloud usage, or vendor management. 
  • Resource utilization. Measures the efficient use of infrastructure, personnel and technology to maximize output and minimize waste. 
• Innovation and future-readiness 
  • Scalability, flexibility and accessibility. Assesses the adaptability of the architecture to future business needs and technology evolution. 
• Sustainability metrics 
  • Sustainable IT. Tracks initiatives tied to energy efficiency, carbon footprint reduction and green IT practices. 
  • ESG compliance. Ensures architecture projects align with ESG goals set by the organization.  

These metrics ensure that an architecture review board maintains oversight on critical architectural decisions, aligning technology with business goals, cost efficiency and regulatory standards while also enabling sustainable, future-ready IT environments. In the past, decision records went directly to the CIO, CDO and CISO as well as the business partner and executives owning the line of business. Now, at least quarterly, if not monthly, updates would flow to the traditional IT leadership but include the chief compliance officer, chief data officer, chief risk officer, chief sustainability officer and potentially other C-level executives with ESG oversight.  

As sustainability strategies become more holistic and ESG materially more the driver for action, responsible AI and sustainability strategies need to account for the diversity in ESG issues that can be caused using AI, and practitioners must be able to pick the solutions that truly help address their organization’s most material issues. 

EA sustainable design benefits based on metrics 

The benefits of engaging Architecture to ensure sustainability principles are leveraged during architectural design with a focus on ensuring alignment to ESG goals include: 

• Cost savings and resource optimization. The architect’s role has traditionally focused on technology modernization, consolidation, and optimization of the tech stack. In sustainable architectures, EA must now prioritize designs that optimize resources, reduce energy consumption, and minimize waste across business operations and infrastructure. Examples include using horizontal scaling when needed, shutting down idle containers and VMs, and evaluating the necessity of continuous active-active configurations. Additionally, adopting energy-efficient solutions like green data centers and cloud platforms will help reduce waste. These streamlined designs not only lower the environmental footprint but also enhance financial performance by cutting operational costs. 
• Market differentiation. By leveraging ESG architectural deliverables, organizations can differentiate themselves, attract socially conscious customers, secure ESG-focused investments, and boost shareholder value while enhancing brand reputation. 
• Innovation acceleration. IT organizations have limited budgets to cover their existing business demands while ensuring operation support and up time. ESG combined into Digital initiatives can drive innovation by fostering creativity, collaboration with the business on re-engineering processes and the pursuit of sustainable solutions. In this way there is support from existing and augmented funding models. Architectural deliverables focused on sustainability encourages the assessment and development of cutting-edge technologies (i.e., Renewable energy systems, efficient process automation and cloud). It also positions organizations as thought leaders in their respective industries. 
• Stakeholder engagement. Sustainable principles in architecture will facilitate transparent communication, data sharing, and collaboration across stakeholders, fostering trust, accountability, and mutual value creation. 
• Regulatory compliance. Governments around the world are enacting stricter regulations to address environmental and social challenges. Through design compliance, EA will focus on the identification and mitigation of risks associated with social inequalities, cyber security breaches, environmental degradation and the identification of governance failures. 
• Holistic alignment and long-term value creation. EA ensures that sustainability goals are integrated across the entire organization, aligning IT, business processes, and operations with long-term environmental objectives. This ensures resiliency in a rapidly changing world. Embedding ESG principles future proofs operations while being able to adapt to evolving market changes. 
• Data-driven decisions. EA provides the framework for leveraging data analytics to track and measure sustainability performance, enabling more informed decision-making and continuous improvement. 

Sustainable architectures leveraging EA can be a game changer in ensuring ESG mandates 

The paradigm shift in enterprise architecture is driven by pressing global challenges such as climate change, resource depletion, and growing social inequalities. These challenges have transformed sustainability from a compliance requirement into a strategic imperative. Climate change jeopardizes business continuity and disrupts supply chains, posing risks organizations can no longer ignore. Resource depletion compels businesses to rethink resource management and waste reduction for long-term viability. These global issues highlight the need for companies to not only reduce their negative impact on the planet and society but also to actively contribute to solutions. 

While there are many opportunities yet to emerge, one thing is clear according to PwC: EA management is crucial for a sustainable IT strategy, where an ESG transformation in IT is a starting point. EA management guides IT landscape development and links technology with business activities. It not only helps clarify strategic issues but also provides full visibility down to a granular level of IT artifacts and components. 

As a chief enterprise architect for more than 17 years, I see this as a call to action for all EA professionals and VPs/chief enterprise architects. We must apply responsible AI and ESG principles to guide business units and leadership in the ethical use and deployment of AI. Neglecting this responsibility could hinder our organizations’ ESG goals and exacerbate carbon emissions challenges. While AI holds transformative potential, it is our duty as EAs to ensure its use aligns with climate health and sustainability. 

Lisa Pratico has held executive roles at TJX, BCBSMA, THP, HP Inc. and National Grid, where she developed strategic roadmaps for growth and transformation, guiding organizations through complex IT and business challenges. With expertise in managing large IT ecosystems and leading POC engagements utilizing AI, data, cloud technologies and automation, she has successfully driven digital disruption, fostering innovation through collaboration. 

This article was made possible by our partnership with the IASA Chief Architect Forum. The CAF’s purpose is to test, challenge and support the art and science of Business Technology Architecture and its evolution over time as well as grow the influence and leadership of chief architects both inside and outside the profession. The CAF is a leadership community of the IASA, the leading non-profit professional association for business technology architects.