Why sustainability is key to long-term business success

Did you know that training a Machine Learning Model causes as many carbon emissions as five average American cars during their entire  life cycle? While sustainability has become an increasingly relevant topic in the business context, companies are often not yet aware of the impact that IT infrastructure and processes have on their carbon footprint. But running data centers, training AI models such as ChatGPT, and establishing and hosting IT infrastructure across the globe can eat up a lot of resources. For example, in 2021, experts estimated that IT electricity usage will rise by 50 percent by 2030. Companies therefore need to take the impact of digitalization into account when setting their sustainability goals. In this blog article, we will take a holistic look at sustainability, show you how we’re working to reduce the environmental impact of IT infrastructure and services at Bosch and share our sustainability approach in six steps. We strive to answer the question:

Why sustainability is key to long-term business success.

Driving forward Bosch’s sustainability goals 

According to the UN World Commission on Environment and Development, sustainability is defined as meeting “the needs of the present without compromising the ability of future generations to meet their own needs.” It is not just about reducing carbon emissions or using renewable energy, although those are important environmental aspects. Companies that are implementing holistic sustainability strategies benefit in various ways: Consumers take a brand’s sustainability into account when making a purchase decision. In a study conducted by IBM in 2021, 80 percent of all participants and 75 percent of millennial participants stated that they consider sustainability when making a purchase. 68 percent claimed that they were more likely to apply for a job at a company that they consider economically sustainable – making sustainability a strong employer branding aspect. Additionally, implementing sustainable practices allows companies to save costs and can contribute to a company’s long-term viability by mitigating risks associated with climate change. 

With that in mind, our experts have created the Bosch Digital Sustainability Assessment for Bosch units. We look at Bosch’s IT infrastructure and projects from a holistic standpoint and highlight ways in which they can be set up more sustainably. As an immediate outcome, clients receive a report with a management summary, the relevant sustainability KPIs and an overview of the respective project’s ecological impact. A guide shows areas of improvement which can then be implemented by the business unit.  

The offer has been up and running since the third quarter of 2022 and the responsible team has completed four projects to date. One major result was improved capacity planning for virtual machines. The number of available machines is adjusted to fit the planned workload and machines that won’t be used are turned off to save electricity. To reduce CO2 emissions, development and quality environments are hosted in regions with a better CO2 mix, for example Norway. The result is impressive: On average, the projects were able to save over 30 percent in infrastructure costs and over 40 percent of the overall CO2 emissions. 

6 steps towards a greener IT 

Our Sustainability Assessment teams have found that the best way to identify and leverage environmental potential is to have a clear process set-up. Here are their six steps for making your IT and IT processes more sustainable.  

• Conduct a sustainability audit: Before a company’s IT can become more sustainable, it is crucial to understand its current impact on the environment and society. A sustainability audit can help identify areas where the company needs improvement. 
• Set sustainability goals: Once a company has identified areas for improvement, it’s important to set clear, measurable goals. For example, a company might set itself the goal to reduce the carbon emissions caused by IT processes by 30% over the next 5 years. 
• Implement sustainable practices: In order to achieve the newly set goals, many sustainable practices can be implemented, such as using renewable energy, reducing waste and reviewing current practices to offer more sustainable solutions. 
• Invest in sustainability research and development: Investing in sustainability research and development allows companies to develop new technologies and identify practices that pave the way to becoming more sustainable. 
• Engage stakeholders: To promote sustainability and encourage everyone to work together for a greener future, companies need to engage with stakeholders, including employees, customers, and suppliers. 
• Measure and report progress: Finally, it is important to measure and report on the progress made towards your sustainability goals. This can help identify areas where improvement is needed and demonstrate the company’s commitment to sustainability to stakeholders.

That is why sustainability is key to long-term business success!