ESG is no longer a tick box for enterprises

ESG is no longer a tick box for enterprises

Managing energy consumption in IT and AI systems presents several challenges, particularly when integrating advanced tools with existing infrastructure, requiring upfront investment and technical expertise, which can be challenging. Executives from Kyndryl, NetApp, Shaffra, and Pure Storage, share their insights.

A 2023 study by PwC showed more than 60% of Middle East businesses were in favour of increasing time spent on addressing ESG. The report mentioned risk management, compliance, and the circular economy as top priorities for the year ahead. At the time of the survey, one third of regional companies employed a Chief Sustainability Officer. A more recent PwC report from June this year noted the transition from ambition to action. Now, 75% of respondents are expecting stricter ESG regulations.

Effectively managing energy consumption in IT and AI systems is becoming increasingly important, especially as global electricity demand from AI, data centres, and cryptocurrency is projected by the IEA to reach 800 TWh by 2026. This surge highlights the need for optimisation to keep operational costs in check.

“ESG is no longer a box-ticking exercise; it has become a business-level criterion for selecting suppliers. A few years ago, customers were not asking for information on how sustainable technology was or what vendors and suppliers can do to help them meet their sustainability goals,” says Omar Akar, Regional VP CEE and META, Pure Storage.

“The pace of change can seem slow and cumbersome as there are so many paths from which to choose and many different methodologies to follow,” adds Akar.

Enterprises can start with measurement of Scope 1, 2 and 3, to understand an organisation’s individual starting point. Once there is an understanding of the situation, look at external frameworks to help reduce emissions and map progress.

“Effective energy management requires IT modernisation, as legacy systems can consume more than a third of enterprise power, while cloud migration can reduce energy consumption by up to 87%,” says Nidal Azba, Chief Technology Officer, Kyndryl MEA.

“Sustainability is top of mind for most organisations today. They recognise the importance of reducing their environmental impact and to reduce cost,” says Walid Issa, Senior Manager, Presales and Solutions Engineering Middle East and Africa, NetApp.

“Current tools for managing energy consumption in IT systems leverage AI-driven analytics, intelligent power management software, and cloud optimisation platforms,” says Marc Wehbi, Co-founder and CTO, Shaffra.

These solutions monitor and optimise power usage by dynamically adjusting resource allocation based on real-time demand.

Marc Wehbi, Co-founder and CTO, Shaffra
Marc Wehbi, Co-founder and CTO, Shaffra
Nidal Azba, Chief Technology Officer, Kyndryl MEA
Nidal Azba, Chief Technology Officer, Kyndryl MEA

Inhibitors and pain points

Rapid technology advancements pose a challenge in deciding when to invest in new technology versus optimising existing systems for better efficiency. A lack of standardisation in measuring energy efficiency and limited financial incentives further hinder progress.

“Balancing performance, energy savings, system reliability, and sustainability goals often require significant infrastructure upgrades and adopting renewable energy sources,” says Kyndryl’s Azba.

“At Kyndryl, several challenges in managing energy consumption have been identified, including the integration of new management solutions with existing systems and accurately measuring energy use due to dynamic workloads,” adds Azba.

The exponential increase in data volumes requires additional storage capacity, which increases energy consumption. This in turn causes challenges for cooling and power management inside the data centre as it contributes significantly to the overall energy consumption.

“Balancing the costs associated with energy consumption, including electricity and cooling, against the need for high-performance storage solutions is a critical challenge,” says NetApp’s Issa.

“Another challenge is the inefficient resource utilisation and how to track and optimise these resources in real-time. Being compliant can be challenging and therefore keeping up and adhering to evolving energy efficiency regulations and sustainability standards can be demanding,” adds Issa.

NetApp addresses these challenges through innovative solutions such as ONTAP, Active IQ, Cloud Insights, and BlueXP Sustainability Dashboard which collectively help organisations optimise energy consumption, reduce costs, and enhance sustainability.

Managing energy consumption in IT and AI systems presents several significant challenges, particularly when integrating advanced tools with existing infrastructure. This process often requires substantial upfront investment and technical expertise, which can be daunting for many organisations.

“Maintaining continuous monitoring to dynamically adjust energy usage demands sophisticated analytics and AI capabilities,” says Shaffra’s Wehbi.

In a technology-driven landscape like the UAE’s, where smart city initiatives and high-technology environments are prevalent, leveraging real-time data for energy optimisation is crucial.

“Remember, customers are asking for this. ESG goals, emissions targets, and adherence to national and international standards are all being added to RFPs,” says Pure Storage’s Akar.

“Those companies who cannot prove they are taking strides to reduce their carbon emissions will be financial losers as they are already being excluded from deals. Businesses need to start approaching ESG issues from all angles,” adds Akar.

Pure Storage sees green credentials incorporated into every RFP response. It is a key part of how decisions are being made. Global companies are telling technology suppliers, they have to adhere to certain standards and demonstrate accurate figures for reduced energy use or they will not be considered.

Omar Akar, Regional VP CEE and META, Pure Storage
Omar Akar, Regional VP CEE and META, Pure Storage
Walid Issa, Senior Manager, Presales and Solutions Engineering Middle East and Africa, NetApp
Walid Issa, Senior Manager, Presales and Solutions Engineering Middle East and Africa, NetApp

Range of operational benefits

Organisations can leverage advanced energy monitoring and management tools; for instance, Kyndryl utilizes real-time insights and AI-driven technologies to dynamically optimise power usage. Additionally, adopting energy-efficient hardware, IT virtualisation, and advanced cooling technologies improves efficiency.

Modern technology approaches like Kyndryl Bridge, for example, facilitate these outcomes by enabling real-time monitoring and management of IT energy consumption. The platform optimizes efficiency, automates power adjustments, and reduces costs while supporting broader sustainability objectives in a seamless, integrated manner.

These efforts, combined with sustainability frameworks, enable organisations to align IT practices with broader environmental goals, improving both operational performance and environmental responsibility.

“Effective energy management of IT systems not only reduces operating costs and extends hardware lifespan, but also enhances system reliability by preventing issues like overheating and overloading,” says Kyndryl’s Azba.

This contributes to improved performance, a lower environmental footprint, and progress toward net-zero goals. These actions underscore a company’s commitment to sustainability, boosting its reputation and compliance with regulatory standards. 

“Adopting a sustainable strategy will help by optimising energy use, reducing carbon emissions, and prioritising data efficiency and the whole world benefits,” says NetApp’s Issa.

“Sustainability begins with an intelligent data infrastructure. We can be more sustainable with analytics, data stewardship, optimisation, cloud use, and power efficient hardware innovations,” adds Issa.

Management of energy consumption offers several key benefits to enterprises like cost savings, environmental sustainability, improved resource utilisation, enhanced reliability and uptime, and compliance with regulatory requirements. By integrating sustainability practices, organisations can achieve significant cost savings by improving energy efficiency, reducing waste, and optimising resource utilisation.

NetApp provides customers with energy-efficient all-flash storage solutions, advanced data management software, ONTAP, predictive analytics with Active IQ, comprehensive monitoring with NetApp Cloud Insights and NetApp BlueXP Sustainability Dashboard to empower organisations to reduce their environmental impact and achieve cost savings.

These solutions support efficient resource utilisation, dynamic scaling, and proactive optimisation, ensuring that organisations maintain high performance and efficiency while minimising energy usage.

“Optimising energy use also enhances system performance and reliability, as AI-driven solutions ensure that resources are utilised effectively, reducing the risk of system overloads and downtime,” says Shaffra’s Wehbi.

“Flash technology for data storage is one such area. Some flash solutions are engineered to be up to 85% more energy-efficient and take up less space in data centres as well as requiring less power to run and cool. E-waste is a further consideration. Organisations should select suppliers who can significantly reduce the volume and regularity of devices sent to landfill,” summarizes Pure Storage’s Akar.

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