What do businesses get when applying green technology?

1. Impact of IT on the environment and the role of Green Information Technology

According to a study by the Institute for Global Systems Research (PIK), big data and cloud computing will consume about 13% of total global electrical energy by 2030, triple times compared to 2018. This also indirectly causes an increase in carbon emissions and global temperatures. Statista statistics indicate that big data and cloud computing account for about 2% of total greenhouse gas emissions globally.

Besides, according to a report by PwC, AI can contribute to reducing global emissions by 4% by 2030 by optimizing production, transportation and energy processes (2). However, AI also consumes a lot of energy to train complex models and algorithms. A study by the University of Massachusetts has shown that training an AI model can be equivalent to the carbon emissions of five cars over their lifetime.

Electronic devices such as computers, phones, tablets, etc. also cause environmental pollution due to their production, use and disposal. According to the Organization for Economic Cooperation and Development (OECD), in 2019, there were about 53.6 million tons of electronic waste generated worldwide, of which only 17.4% was collected and recycled. mechanism. According to Apple's 2023 environmental progress report, emissions from the manufacturing of electronic products account for about 66% of its total emissions.

It can be seen that applying Green Information Technology (Green IT) is an inevitable trend for businesses to face the global challenge of climate change. Some examples of Green Technology applications include:

• Design, manufacture and recycle electronic devices in an energy-efficient and environmentally friendly manner, reducing greenhouse gas emissions and solid waste;
• Use new technologies such as low-power chips, multi-processor systems optimized for artificial intelligence, distributed architecture and diversification to improve performance and save power;
• Migrate from traditional data centers to cloud or hybrid data centers, leveraging renewable energy sources and using efficient cooling solutions.

2. Benefits of applying Green Technology for businesses

Firstly, applying Green Technology helps reduce CO2 emissions while reducing operating costs for businesses. By limiting the use of individual servers and optimizing cloud usage, emissions will be reduced and costs will be more optimized. Switching from traditional data centers to cloud or hybrid data centers helps businesses to optimize cooling processes and save significant energy. In addition, businesses should invest in high-performance equipment and software to reduce power consumption and maintenance costs.

Second, promoting the implementation of Green Technology helps businesses improve their competitiveness by responding to government legal regulations on green transformation. The European Green Deal of the European Union (EU) has been issued with regulations on Green Public Procurement (GPP), in which Green Technology criteria will apply to both public and private procurement packages. The European Green Deal is also important for Vietnam and ASEAN because it demonstrates the EU's commitment and determination to respond to climate change and reduce emissions. Businesses that meet standards and regulations on quality, safety, environmental protection and sustainable development will improve their competitiveness in expanding cooperation and attracting domestic and foreign investment.

 Applying Green Technology helps improve the competitiveness of businesses

Third, businesses that take the lead in applying Green Technology will meet expectations and increase customer satisfaction. Market and consumer behavior related to sustainability and environmental protection have changed. 73% of Gen Z are willing to spend more money on sustainable products compared to Millennials (68%), 88 % of consumers want to use brands that strictly adhere to green values in everyday life ( 3). Therefore, promoting Green Technology helps businesses increase satisfaction and engagement with generations of consumers in the context of green consumption becoming a trend.

Fourth, demonstrating environmental responsibility gives businesses an advantage in attracting talent and enhancing employee engagement. Applying and promoting Green Technology creates a working environment that encourages creativity and innovation in the application of green and sustainable technologies. A business that effectively achieves its ESG goals will better attract and retain its talent, especially the Gen Z generation.

Green technology is an inevitable trend for sustainable development of businesses in the context of increasingly serious climate change. By applying Green Technology, businesses not only minimize the negative impact of information technology activities on the environment, but also improve competitiveness, increase customer satisfaction, and attract talented people. and contribute to realizing the government's green transition and carbon neutrality goals. To do this, businesses need a clear transformation roadmap as well as careful preparation of resources and strong determination from the leadership.

Source: Compiled

Compiled by the DTSVN author group - Digital transformation solutions for the Finance and Banking industry.

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