One world – one life! Earth’s climate is changing dramatically and putting at risk life as humans know it today. It is possible for climate to do more damage than that of the previous two world wars. Ice caps melting, out of control fires and floods they’re not just restricted to Australia!
Every industry needs to look inside itself and determine how much It can do to limit its effect on climate change. Digital Infrastructure is currently using 2%+ of all the power in the world and set to grow. There is every reason why it should grow if its effects on the environment are minimal at worst.
What that 2% of power is generated from and how efficiently it uses it will make the difference.
What will drive change?
Change will come from several areas of pressure:
Government and Social groups:
- Regional or National Legislation- global agreements.
- Pressure from NGO’s – UN, WEF, WHO.
- Public climate change demonstrations – globally gaining pace but not specific to digital infrastructure.
Financial – Incentives v penalties, market forces:
- Market forces – consumers choosing socially responsible companies over non-compliant.
- Tax incentives.
- Penalties for non -compliance of CO2e reduction where it is deemed feasible.
- Innovative products – new initiatives that are more efficient, effective and economic and save power usage.
- Shareholders and financial institutions pulling out of investments and moving to lower risk investment with environmental awareness and a CO2e reduction target?
- Investments will take environmental risk into considerations. A points system could be introduced for assessment of operational, location and financial risk.
As ethical investment becomes a standard rather than the mantle of the few, every industry will find themselves making sustainable and environmentally friendly changes to their operations. Some will seek investment to make those changes from the very same investors that demand higher standards for Carbon free practices.
Microsoft took the lead this week and announced it will achieve carbon negative status by 2030. Microsoft is ahead of the game, where they lead and others will follow!
See Black Rock Investment’s CEO Larry Fink on Climate Change Risk for investment:
Larry is not the only person showing concerns!
Hong Kong’s financial regulator Julia Leung (Deputy Chief Executive of the Securities and Futures Commission) warns on the impact of climate change on ESG investment.
ESG (Environmental, Social and Governance) investing refers to a class of investing that is also known as “sustainable investing“. This is an umbrella term for investments that seek positive returns and long-term impact on society, environment and the performance of the business.
Digital Infrastructure – the logistics of ICT IOT, 5G Broadband, Wireless – Communication data storage and processing is essential to reduce climate change. It is also part of the problem and it too must change. It is essential that it attracts investment and expands to meet demand!