William Fenick, Vice President, Enterprise Verticals
Sustainability has become a compelling event for the industry. Investors and activists are putting firms under even more scrutiny when it comes to funding heavy-emitting companies. The explosion of global data growth has contributed greatly to the surge in computing power, sparked in large part by products and services leveraging automated intelligence (AI) and machine learning (ML) capabilities. As a result, stringent ESG industry regulations are in place to help offset carbon emissions, save energy and conserve natural resources.
Financial Services chief executives and board members must take action now to confront ESG requirements head-on if they haven’t already. Data-centric IT infrastructure and ESG-compliant, eco-friendly data center planning should be core components of their overall company’s eco-friendly commitment and business strategy moving forward.
In doing so, financial services top level executives and decision-makers are already seeing the benefits of prioritizing sustainability, driven by:
- feedback from shareholders and clients concerning ESG strategies
- customer expectations and preferences regarding eco-friendly practices
- robust regulation at all levels of governments, especially focused on decarbonization
- business pressure to remain relevant and innovative in a competitive market
- brand positioning and differentiation within the industry
The ROI of sustainability extends to more than just humanity and goodwill — it has tangible monetary returns, as well. According to research from Forrester Analytics, enterprises that emphasize sustainability experience a healthier bottom line, bolstered by improved customer satisfaction and higher employee retention.
Research also indicates that financial services firms that embrace sustainable business models have an opportunity to win over values-based customers. This is significant at a time when consumers of all ages are more keenly aware and focused on corporate social responsibility efforts. As a result, they are more likely to choose companies that help local communities, treat employees well, or are reducing their environmental impact.
For financial services organizations looking to elevate their brand, industry differentiation and shareholder stock price through a sustainability-first business operations approach, it goes beyond bold claims of a commitment to sustainability. The implementation of a global data-centric hybrid IT infrastructure enabled by a deep focus on renewable energy, energy efficiency and supply chain sustainability initiatives are required.
They will need data center partners with a fit-for-purpose global platform that provides the infrastructure, technology, and resources to meet changing business demands and the flexibility to adapt to evolving sustainability goals and requirements.
Here’s how the right data-centric hybrid IT infrastructure can support the sustainability efforts and goals of financial services firms and key IT architecture considerations.