FUTURE PROOFING
There is also a significant movement to include sustainability as part of software development with Sustainable Software Engineering and the Sustainable Software Development Life Cycle ( S-SDLC ).
More transparent and detailed reporting will be part of new regulations , such as the European Energy Directive that required data centre operators to report key performance indicators to the European database by late 2024 , then in May 2025 and subsequent years . Such regulation is likely to see similar measures in other jurisdictions , which will likely inform overall sustainability strategies .
All such efforts will rely on the availability , quality , and reliability of data , but the digital transformation wave of recent years has meant that every business is becoming a digital business and so is more data driven and accustomed to collecting , analysing , and acting upon derived intelligence .
Beyond just cost , responsible business
A positive social impact first and foremost speaks to the integrity and values of a business , and should be the prime motivator in , and of , itself . However , people are far more aware of these aspects , and so there is also a reputational cost that plays a key part in aligning the company ’ s total cost of sustainability .
A business must be able to bear the cost and thrive while being sustainable . As the previous cited survey showed , despite growing numbers of executives achieving success in implementing sustainability strategies , they still struggle to find investment , and yet , studies now support the idea that companies with strong ESG values and activities also correlate with strong financial performance .
Sustainability must be socially equitable too , ensuring that everyone can participate and contribute as well as benefit . An example is access to energy , where it empowers local communities to thrive socially and economically , but balance the use of renewable energy .
There must also be a more expansive environmental protection element , that goes beyond lessening impact and into areas such as conservation and biodiversity . Sustainability has a stewardship duty , ensuring that a liveable environment is provided for future generations to enjoy .
The economics of future talent
There are also benefits that are incurred , from a top down and a bottom up perspective . The average tenure of a CEO in a Fortune 500 company has been just over seven years for about a decade , however , the median within that range has fallen by 20 % since 2013 , at six years . A recent survey of CEOs found that more than three quarters ( 77 %) said that delivering on broader societal demand to accelerate their sustainability journey is a priority . With the indications of increasing career mobility among CEOs and such a strong commitment to delivering on ESG values , companies that have already established a strong ESG record will attract the top-level talent at the highest level .
However , this translates to talent acquisition at every level . Younger people are more career mobile and have been shown to seek out companies and positions that align with their own values , offering more than just a pay cheque . A strong sustainability profile is becoming more important in attracting and retaining the best talent as it is now seen as a broader indicator of a company that is well run , aware , and willing to stand on strong values . Societal attitudes too are changing , as consumers use their buying power to express their own values .
This also highlights the importance of social and gender equity with skilling future talent . To ensure that there are opportunities for all , especially to redress the balance in digital infrastructure , to benefit from a diverse workforce of different ways of thinking , which bolster innovation .
Transcending effect
Total cost of ownership previously provided a new , more valuable way of assessing a key aspect of doing business . Sustainability is moving the same way , with not just the cost , but the derived benefits being equally recognised .
As sustainability becomes a higher-level consideration in every aspect of business , beyond compliance , to a way of life – Total cost of sustainability as a holistic approach and business concept allows leaders to change perceptions to maintain their excellence .
Society is striving towards more responsible stewardship , and companies that continue to perform best at being sustainable , will be the successful ones to do business with , and to aspire to join . �
Natalya Makarochkina , Senior Vice President , Secure Power Division , International Operations , Schneider Electric
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