IT Best Practices.
Industry Focus: Why the Cloud means “more green” to the financial industry
Today, people are more consciously minded about where they spend their money. There is a “vote with your wallet” approach that is becoming more prevalent as people look to a company’s economic, social, and governance (ESG) impact. Metrics like the Dow Jones Sustainability World Index (DJSI) have grown in their importance for how an individual approaches a company.
Part of the movement includes companies that recognize this shift, and those in the financial industry are taking steps to increase their “greenness”. This transition can be tied into their approach to the cloud and utilize its inherent ability to increase sustainability.
Purpose-driven brands perform better
A Deloitte study showed that “Purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction.”
Much of this growth is measured by how a company focus and alignment of its purpose can laser-focus on its objectives to achieve its determined purpose. For many companies, the purpose they outline becomes one that falls into one of the ESG metrics that many consumers and employees use to measure a company’s worth.
For those in the financial industry, there is a leading voice from consumers to align their banks with personal values. Banks with strong ESG records are seeing more growth from the younger generations as they gravitate towards the companies that are more green-conscious.
This kind of transition can be seen through the Net-Zero Banking Alliance, which represents over 40% of global banking assets, along with other financial institutions committing to low carbon and zero carbon goals.
Additionally, consumers are asking their banks not just to publish their ESG data, but to help them as consumers measure their own carbon footprints and environmental impact. Some requests include rewards for environmentally conscious purchases, citing where purchases might be funding fossil fuel activities, or planting trees as part of their savings objectives.
The cloud’s environmental impact
The benefits of the cloud go beyond technological and financial. The cloud is well positioned to help companies innovate their practices to help sustainability. A study by the Microsoft Corporation titled “The Carbon Benefits of Cloud Computing: A Study on the Microsoft Cloud,” found that cloud computing is 93% energy efficient and has 98% lower carbon emissions than on-site data centers.
These kinds of impacts are great for businesses to consider when thinking of integrating their technology with the cloud. By using cloud computing services, companies stand to reduce their energy uses by 60-85% which not only helps the environment but reduces costs significantly.
Additionally, cloud computing stands to reduce greenhouse gas (GHG) emissions by cutting back on the activities that contribute to carbon emissions. Things like producing raw materials for equipment, energy consumed in transporting and assembling the equipment, and the final disposal of equipment after the end of its lifecycle all help in reduction efforts. These efforts are linked to dematerialization as companies reduce their physical products with virtual equivalents.
Some cloud service providers (CSPs) even incorporate renewable energy sources into their practice, using solar, geothermal, hydropower, and wind to power their operations. For example, Agile IT partnered with Arcadia Power to use wind turbines to fully power its headquarters.
Banks continue to innovate with the cloud
The financial industry is working to do its part when it comes to accountability and sustainability. Not only is cloud integration great for saving the environment by reducing emissions, but it also works to help consumers measure their own green efforts.
The banking industry, combined with innovative technology, is helping to lead by example and drive beneficial change. Sustainability isn’t just good for the environment, it’s great for business. Through future-proofing efforts, companies stand to increase agility, security, innovation, and synergy, which also works to help address environmental challenges. Digitalization works in tandem with sustainability and is one of the many ways a company can help improve climate impacts.
Call upon the professionals
The best way to ensure you’re positioning your business to take advantage of the green benefits of the cloud is to make sure you have the best-qualified professionals handling the vital cloud requirements for your company. Global IP Networks offers these services through our unique CloudKeySM Platform and the team of experts that have been helping businesses grow for over 20 years. We pride ourselves on round-the-clock service, and our ability to excel at delivering results. Reach out today and see how Global IP Networks can help your business.