Net zero for FSIs: have we reached the tipping point?

[_Marcus_Bonner_]

Discover how to holistically transform your ESG initiatives

Organizations within the financial services industry (FSI) are committed to achieving their sustainability targets, but stepping onto this path can be both complex and daunting. They require relevant, competent, and capable technologies that allow them to deliver and optimize customer service, while staying ahead of disruption and market instability. They also must achieve all these objectives against a backdrop of changing sustainability expectations, both from their customers and the regulatory landscape. By aligning their tech strategies with sustainability initiatives, FSI’s can grow stronger, more resilient, and more able to accelerate a data-first strategy. In fact, Accenture Research found that enterprises linking digital and sustainable transformation are 2.5 times more likely to be among tomorrow’s strongest-performing businesses. Beyond the business value payoff, FSI’s are also driven by the need to make a positive impact on our planet and be a force for good.

Recently, a number of significant sustainability regulations and expectations have been implemented across the EU, many of which apply across more than one country or jurisdiction. Climate-change-related risks remain a priority for the financial services sector with  some of the most important regulatory shifts and papers that should be under consideration by FSIs. Some of the most important include:

1. The European Union Taxonomy, which became effective on 01 January 2023.
2. Three of the European Supervisory Authorities (ESAs) published their views on the European Sustainability Reporting Standards.
3. The Kunming-Montreal Global Biodiversity Framework (GBF) was introduced.
4. The European Council and Parliament are reaching a final agreement on the Carbon Border Adjustment Mechanism (CBAM).
5. The International Organization of Securities Commission (IOSCO) launched the development of Compliance Carbon Markets (CCM) and Voluntary Carbon Markets (VCM).

As Environmental, Social and Governance (ESG) concerns continue to put pressure on FSIs, there is a growing need for sustainable IT that provides the support, technology, and capabilities FSI’s need to reduce energy consumption and carbon footprints, while remaining aligned with business strategy and corporate responsibility. HPE Greenlake meets FSI organizations at the intersection of IT and sustainability, helping them overcome the limitations of legacy technology by using modern IT infrastructure as-a-service, pay-as-you-use model.

The sustainability conversation

Considering that ESG factors are a burning topic for FSIs, having the right strategy and tools to stay on top of regulatory requirements is more important than ever before. Utilizing modern IT infrastructure can pave the way for improved compliance and lower carbon footprints that deliver on sustainability and ESG commitments.

Companies can see the benefit of moving their infrastructure to a hybrid cloud architecture that allows for them to create value, enable growth and optimize operations, while remaining ahead of ESG mandates and expectations. HPE GreenLake provides IT infrastructure with its hybrid cloud, as-a-service offerings that not only reduces overprovisioning but at a better performance per cost with the tools to monitor energy usage in real time.

•  With HPE GreenLake, FSIs can embed sustainability from within the IT stack, while still optimizing infrastructure and architecture to remain competitive and ahead of disruption. What truly sets it apart? It is also addressing the delta between asset book value and fair market price to allow the safe and controlled depreciation of assets, thus allowing sensible discussions about asset end of life and the circular economy.

What makes IT efficiency and sustainability at HPE special?

• Trusted brand and reputation in sustainability
• A hybrid cloud environment that delivers a holistic approach to sustainability across every IT domain.
• HPE sustainability leadership uses a circular approach spanning global design, manufacturing, logistics, product-use, and end-of-use return and upcycling.
• 20+ years of IT asset management expertise and financial know-how that has infused more than $500M back into customers budgets from upcycling and accelerated migration programs in FY2021
• Reduce electronic waste and increase value-return through circular approach to asset disposition
• HPE’s supply chain sustainability programs meet or exceed global best practices, including governance, risk management, and compliance
• Over 30 years of global leadership in sustainability and IT efficiency. Many recognized leadership organizations to establish best practices for sustainability and IT efficiency were founded or developed by HPE.3
• The tools required to embed sustainable business practices and credentials that meet compliance needs, regulations and customer expectations.
• Resource efficiency, as-a-service model- allowing FSI IT staff to concentrate on development rather than simple break/fix duties
• hybrid cloud, as-a-service offerings that reduces overprovisioning
• Data efficiency — a better job of managing the data usage/storage
• The Sustainability Dashboard which provides a holistic view of energy profile and consumption in real-time
• The opportunity for FSI’s to modernize their multi-generational IT environment and become sustainable with a proven 30% reduction in carbon emissions with less energy use[1]
• This commitment to sustainability embedded within HPE GreenLake reflects HPE’s overarching dedication to achieving ESG objectives through sustainable best practices. Today, 85% of technology returned to HPE is upcycled and put back into active use, 50% of renewable electricity is sourced for HPE’s operations (with the goal to achieve 100% by 2030), more than 6,000 patents have been filed for transformational low-carbon technologies since 2000, and more than 500 social and environmental responsibility audits have been conducted with suppliers.

The Power of HPE GreenLake

HPE GreenLake provides financial institutions with the ability to use technology to enable measurable sustainability. With HPE, FSIs can make smart sustainability decisions and drive incremental progress towards their sustainability goals. This fully managed, pay-as-you-go hybrid cloud solution enables full ESG visibility, while delivering the perfect blend of public, private and on-premises edge environments. It ensures that FSI’s benefit from a next-generation hybrid cloud model that is transformative across data, security, and sustainability.

Marcus Bonner
Hewlett Packard Enterprise

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