On July 31st, 2023 the European Commission announced new sustainability reporting in the European Union. The European Sustainability Reporting Standards (ESRS) will change how European businesses (and companies that do business in the EU) are required to report on their sustainability and ESG.
The standards cover the full range of environmental, social, and governance issues, including climate change, biodiversity, and human rights. They also provide information for investors to understand the sustainability impact of the companies in which they invest. Here’s what the timeline looks like.
It's important to note that while these standards have been announced, they are not yet legally binding. However, they serve as a powerful indicator of the direction Europe is taking regarding business sustainability. It's clear that the winds of change are blowing strongly in favor of greater transparency and responsibility in the corporate world. And we’re all for it!
Sustainable IT practices are a huge part of Cycloid’s mission. We’ve spoken before about the concept of GreenOps (and you might have seen that term around), which refers to a framework for organizations to start understanding and quantifying the environmental impacts of their IT strategies whilst promoting a culture of environmental sobriety that flows through a workforce. At its heart, this methodology encourages a more mindful consumption of IT resources which are invariably dependent on planetary resources. We hope that a GreenOps strategy might be the first step for many companies to start taking responsibility for their environmental impact.
Keen to learn more? Download our Definitive Guide to GreenOps - the only ebook you’ll ever need to get your green strategies on track!
One of the main areas of GreenOps where you can make a real impact is the cloud. As businesses increasingly rely on cloud services for data storage, computing power, and software delivery, the environmental footprint of these data centers becomes an essential part of the sustainability equation.
The current “open bar” approach to cloud infrastructure generates enormous amounts of carbon emissions, wasting valuable planetary resources, as we cover in a few blog posts. The good news is that there is a way to fix it - while also providing you with the necessary ESRS data.
Cycloid’s Cloud Carbon Footprint tool is part of our FinOps module and it displays your carbon emissions alongside your cloud spending. This means that you get accurate reports on the environmental impact of your cloud usage with the same granularity as your financial reports, so you can easily identify the culprit project, team or the cloud provider and eliminate unnecessary expenses.
By streamlining your operations, you're not only lowering energy consumption and reducing your carbon footprint but also trimming your expenses. It's a win-win-win situation – you, your budget, and the environment all benefit.
It currently supports the 3 main public clouds (AWS, Azure and GCP), but we’re working on adding more.
You can download custom reports in any format to enhance your ESRS data with more accurate and granular data.
Using Cloud Carbon Footprint is not just about ticking a box to meet regulatory requirements; it's about embracing the spirit of sustainability and making a positive impact on the planet.
While the European Sustainability Reporting Standards indicate a promising shift towards greater corporate responsibility, tools like the Cloud Carbon Footprint ensure that your digital infrastructure is not only compliant but actively contributing to a more sustainable and eco-friendly future.