FUTURE PROOFING
Total cost of ownership to total cost of sustainability
New business concepts transcend existing approaches to open up a new way of thinking . Sustainability now requires such a trajectory . Total cost of sustainability is a new business concept for thinking about that assesses all aspects of a sustainability strategy , extending beyond ESGs and sustainability targets , explains Natalya
Makarochkina at Schneider Electric .
T otal cost of ownership is cited as a comprehensive assessment tool or ‘ an analysis that looks at the hidden costs beyond price ’. Business concepts develop to give new perspectives and insights .
In technology , total cost of ownership had particular resonance for CIOs , where the capital expenditure for a new data centre was highly impacted by the design configuration , operating costs improved with energy efficiency , and reliability costs were carefully balanced with mitigating the risks of any outages – also costly in terms of business reputation . Utilising these headings , the various impacts both positive and negative , could be more fully understood .
Today , the potential negative impact or ‘ cost ’ with regards to sustainability , and protecting our planet , is more critical . Most organisations agree it is essential to conduct business operations sustainably , in a way that allows not only our environment , but economies and societies to thrive . In light of the challenge , it ’ s time to expand our approach .
The vision for the future of sustainability happens primarily in the C-suite . Driven by the CEO , the CIO is pivotal in partnering with senior executives as digital transformation and sustainability reach an inflection point driven by the rapid technological advances in AI .
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