Driving Sustainable Growth: ESG Innovations in Cloud Computing Industry

Cloud computing has entered the world of environmental, social and governance (ESG) as socially conscious investors assess a company's impact on the world. Stakeholders want to know that the companies they are investing in are "doing no harm" and "doing the right thing" while providing a positive return on investment (ROI).

Ethical investing is paramount in decarbonization, carbon footprint reduction, board diversity and waste management. Sustainability solutions are key to achieving business goals amidst surging penetration of cloud services across automotive, healthcare, financial services, e-commerce, media, gaming, public services and has furthered the need to bolster the sustainability profile. Brands are expected to use AR/VR, edge computing, big data, blockchain and cloud-native technologies to foster brand recognition, complement sound corporate behavior and bolster sustainable investing.

Discover more regarding the practices and strategies being implemented by industry participants in the Cloud Computing Industry ESG Thematic Report, 2023, published by Astra ESG Solutions @ http://tinyurl.com/2ay7ksda

ESG strategies have gained prominence in the wake of surging environmental awareness and consumers' willingness to pay premium prices for sustainable products. Environmentally and socially conscious practices have become prevalent to attract and retain investors and customers. Cloud computing service providers have exhibited profound traction to expedite their ESG progress. For instance, the Google Cloud Platform offers carbon-free energy scores for Google Cloud regions, enabling companies to choose GCP locations optimized for reduced carbon emissions.

In July 2023, Initiative Climat International (iCI) joined forces with ERM to introduce a guidance document, helping software companies to account for the scope 3 emissions. The guidance elucidates (including but not limited to) disclosure requirements and reporting trends, a governance structure for GHG accounting and reporting, carbon reduction initiatives and scope 3 carbon accounting.

Navigating Google's Path towards a Sustainable Future
Concerted efforts to meet sustainability goals have led investors to assess what risks or opportunities companies may face from environmental issues. A shift to more resilient and low-carbon economies will require investors and other stakeholders to invest in ESG issues. Industry leaders are inclined to use green equipment in data centers to minimize power consumption. Moreover, businesses are expected to receive impetus from recycling and reuse to reduce waste and capital expenditure. In essence, Google suggests that 5 of its data centers operate at almost 90% carbon-free energy (CFE).

With data centers continuing to be sought-after in the energy transition, sustainable cloud services will witness investments galore. In August 2021, the American giant announced an infusion of USD 1.2 billion in Germany's Cloud Computing Program by 2030 to undergird cloud computing infrastructure and renewable energy usage. Besides, Google has set an audacious goal of reaching net-zero emissions across operations and value chain by 2030. Sustainability-minded organizations are expected to contribute to reversing climate change.

Inclusion Top Priority for Microsoft
Diversity representation and the focus on inclusivity help create a culture where everyone can thrive and propel progress. Prominently, the 2022 Diversity & Inclusion Report suggested that women contributed over 30% of the Microsoft workforce globally. Moreover, women in technical roles have risen between 1.4 and 1.6% points over the past half a decade. It has also embarked on a mission to represent the population of people with disabilities. As of June 2022, around 7.8% of the Microsoft employees in the core business in the U.S. self-identified as having a disability. Moreover, the behemoth spent over USD 9 billion with the U.S. diverse-owned businesses (as per the 2023 Impact Report). The company exhorts it has trained and certified 8.5 million people globally with skills for the digital economy.

As the world strives to underpin racial equity, the company has injected around USD 150 million to reinforce inclusion and the number of U.S. Black and African American and Hispanic and Latinx people managers, senior leaders and senior individual contributors by 2025. An emphasis on diversity, equity and inclusion will redefine computing solutions and help employees be more innovative and creative.

IBM Banks on Board Diversity
A wide range of strategic planning can provide avenues of growth through impact investing with data standardization, increased transparency, and process automation. Tax transparency, board diversity, executive pay, and sound governance structure will leverage companies to create long-term value. Brands and institutions have fostered governance frameworks and brought new skills and global perspectives. To put this in perspective, eleven out of 12 director nominees are independent in IBM. Meanwhile, two women directors and three ethnically diverse directors were included in the past three years, according to the IBM 2021 ESG report.

The American giant has an Audit committee to help identify financial and audit risks with the assistance of IBM's enterprise management framework about AI ethics, privacy and cyber. The development of practices and policies that emphasize transparency, trust, ethics and accountability could be pronounced, auguring well for the industry growth.

ESG Trends Paint Robust Picture
ESG ratings have become the new standard for investing as companies with high ESG ratings show less volatile earnings and a lower cost of capital and help preserve the wealth of global ecology. Furthermore, concerted efforts for improved ESG disclosures in their sustainability reports can leverage stakeholders to integrate ESG risk analysis into their investment decisions. For instance, in October 2022, Alibaba announced opening a new campus with investments in cloud computing. The design of the campus is reportedly eco-friendly, including flowerpots made from recycled plastic, a photovoltaic power generation system and high-efficiency low-energy devices in the on-site coffee shop. The global cloud computing market size was pegged at USD 368.97 billion in 2021 and could observe a 15.7% CAGR between 2022 and 2030.

Relates Reports:
• Telecom Services Industry ESG: https://astra.grandviewresearch.com/telecom-services-industry-esg-outlook

• Cyber Security Industry ESG: https://astra.grandviewresearch.com/cyber-security-industry-esg-outlook

• Third-party Logistics Market ESG: https://astra.grandviewresearch.com/third-party-logistics-3pl-industry-esg-outlook

• Business Process Outsourcing Industry ESG: https://astra.grandviewresearch.com/business-process-outsourcing-industry-esg-outlook

About Astra - ESG Solutions By Grand View Research
Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries @ http://tinyurl.com/ycxz6h34

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Astra is an ESG database and consulting service that equips companies and investors with the in-depth research and actionable insight they need to support their bottom lines and their values.

This release was published on openPR.