Collaborative action to make sustainable IT a reality

Recently, we had the privilege of gathering a pool of CIOs and Heads of Sustainability from Luxembourg’s financial sector for a candid discussion on sustainable IT. The aim was to engage in a meaningful discussion about the exciting challenges and opportunities that lie before financial institutions. The key takeaway was unanimous: the conversation has decisively shifted from if we should act, to the necessary how.

A shared diagnosis: the physical footprint of a digital world

The consensus in the room was clear: our "immaterial" digital world has a very physical, and growing, footprint. Worldwide we're no longer talking about a minor issue. With IT-related activities now estimated to account for 5% to 9% of global emissions, the status quo is unsustainable. As one participant noted, "We are trying to solve our climate objectives with one hand while accelerating the problem with the other through digitalization."

The challenge isn't just the carbon footprint of IT equipment. The discussion highlighted the critical need to consider the entire lifecycle of the IT ecosystem from the resource-intensive manufacturing process for IT equipment to the growing mountain of e-waste – and the significant environmental impact of new technologies like AI, which can dramatically increase energy consumption.

Pathways to action: a pragmatic approach emerges

So, with such a complex challenge, where do we start? Our discussion revealed a clear, pragmatic, three step approach that moves beyond theory.

Measure to manage: The journey must begin with a credible baseline. You can’t manage what you don't measure. We discussed the implementation of footprinting tools, to get a clear, end-to-end view of the digital environmental footprint. This provides the data needed to identify "hotspots" and make informed decisions.
Act on high-impact levers: Beyond measurement, the group shared concrete actions already making a difference. These aren't moonshot projects, but practical steps like implementing sustainable procurement policies, extending the end-of-life of hardware through donations to social organizations, leveraging the sustainability potential of modern cloud services, including data center selection, and promoting effective practices like reducing printing.
Govern for lasting change: A recurring theme was that one-off projects are not enough. Sustainable IT must be embedded in the organization's governance, with strong leadership, clear policies, and a deep commitment to raising awareness among all employees to foster a culture of sustainability.

Facing the real-world hurdles

The conversation was also grounded in reality. Participants highlighted a major challenge: the dependency on vendor cooperation and the need for greater transparency across the entire IT supply chain. The size of Luxembourg companies can complicate the negotiation process with vendors, impacting the efficient lifespan of IT equipment, including its end-of-life considerations. The consensus? Collective action is key. By aligning on our demands for sustainable products and transparent data, we, as clients, can influence the industry to change.

Conclusion: a journey of collaboration

The roundtable confirmed that sustainable IT is a strategic journey, not a one-time technical fix. It requires a holistic view that combines measurement, concrete action, and robust governance. As one leader powerfully concluded, "Our biggest challenge is no longer technology, but collaboration."

This focus on concrete action is the perfect transition to our next topic. Having established the "Why" and explored a specific "How" with sustainable IT, how do we integrate this mindset into the company's core business model? Our next article will explore just that: how to build resilience not just in your IT, but across your entire strategy.