Shady ASThe environmental impact of the technology sector has reached a scale that can no longer be ignored. Global electricity demand from data centres reached 415 TWh in 2024, approximately 1.5% of worldwide electricity consumption, and the International Energy Agency projects this figure will double to 945 TWh by 2030. At the same time, the world generated 62 million tonnes of electronic waste in 2022 — an 82% surge from 2010 — with only 22.3% formally collected and recycled.
For European businesses, sustainability is rapidly shifting from a voluntary commitment to a regulatory obligation. The EU's Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy for sustainable activities, and growing stakeholder expectations mean that IT departments must now account for their environmental footprint with the same rigour applied to financial reporting. Green IT is no longer a niche initiative — it is a strategic imperative that touches every aspect of technology management.
The environmental footprint of IT
Understanding the scope of IT's environmental impact is the first step toward addressing it. Data centres are the most visible source of energy consumption: cooling systems alone account for 30-40% of total facility energy use, while servers and IT equipment consume 40-60%. In the United States, data centres consumed approximately 176 TWh in 2023, representing 4.4% of total national energy usage, with projections indicating this could rise to 6.7-12% by 2028. In Europe, data centres in Germany, France, the UK, and the Netherlands together consumed 41 TWh in 2024.
Beyond energy, electronic waste represents a growing crisis. The raw materials embedded in the 62 million tonnes of e-waste generated in 2022 were valued at USD 91 billion, yet only USD 19 billion was recovered through environmentally sound recycling. IT equipment — servers, networking gear, end-user devices — contributes significantly to this waste stream, particularly as hardware refresh cycles accelerate to keep pace with evolving performance demands.
The carbon footprint of software itself is an often-overlooked factor. Inefficient code, over-provisioned cloud resources, and unnecessary data storage all contribute to energy waste. A growing body of research suggests that thoughtful software engineering practices — from algorithm optimisation to efficient data structures — can reduce the energy consumption of applications by 30-50%.
EU sustainability regulations affecting IT
The regulatory landscape for sustainability reporting in Europe has undergone a fundamental transformation. The CSRD, which began applying to the first wave of companies in the 2024 financial year, requires organisations to report according to the European Sustainability Reporting Standards (ESRS). These 12 standards, developed by EFRAG and adopted by the European Commission in 2023, span environmental, social, and governance topics and mandate double materiality assessments — meaning companies must disclose both how sustainability issues affect the business and how the business impacts society and the environment.
For IT departments, CSRD compliance means tracking and reporting on energy consumption, carbon emissions from data centre operations, e-waste management practices, and the environmental impact of the technology supply chain. The directive requires external assurance of sustainability reports, raising the bar for data accuracy and completeness. Companies with more than 1,000 employees are now squarely in scope.
The EU Taxonomy adds another layer by establishing criteria for what constitutes an environmentally sustainable economic activity. IT investments in energy-efficient infrastructure, renewable energy-powered data centres, and circular economy practices for hardware can qualify as taxonomy-aligned, potentially improving access to green financing and enhancing investor relations.
Green cloud strategies
Migrating to the cloud can be a powerful lever for sustainability, but the environmental benefits depend heavily on provider choice and configuration. Among the major hyperscalers, Google Cloud has been a pioneer — the first major provider to achieve carbon neutrality — and has set a goal to run on 24/7 carbon-free energy by 2030. Microsoft Azure has been carbon-neutral since 2012 and aims to be carbon-negative by 2030, with commitments to be water-positive and zero-waste. AWS matched 100% of its energy consumption with renewable energy in 2024, seven years ahead of its original 2030 target, and aims for net-zero emissions by 2040.
However, organisations should look beyond headline commitments. Carbon neutrality often relies on carbon offsets rather than actual emissions reductions. A critical best practice is to select cloud regions powered by low-carbon electricity grids. Both Google Cloud and Azure offer carbon footprint dashboards that allow customers to monitor emissions and choose server locations based on carbon intensity. Auto-scaling, right-sizing instances, and implementing serverless architectures can further reduce energy waste by ensuring that compute resources match actual demand.
Beyond infrastructure choices, green software engineering practices make a meaningful difference. This includes optimising data transfer to reduce network energy consumption, implementing efficient caching strategies, scheduling batch workloads during periods of high renewable energy availability, and regularly decommissioning unused resources. Tools like the Green Software Foundation's Software Carbon Intensity (SCI) specification provide a standardised way to measure and compare the carbon impact of software.
Hardware lifecycle management and circular IT
Extending the useful life of IT hardware is one of the most impactful sustainability strategies available. Manufacturing a server or laptop produces far more carbon emissions than operating it over its lifetime, making hardware longevity a critical environmental consideration. Organisations should adopt a circular IT approach that prioritises repair, refurbishment, and reuse over replacement.
Practical measures include establishing partnerships with certified IT asset disposition (ITAD) providers, implementing robust asset tracking to maximise utilisation, and choosing hardware vendors with strong sustainability credentials and take-back programmes. When procurement is necessary, favouring energy-efficient equipment certified under standards such as ENERGY STAR or EPEAT ensures that new hardware meets rigorous environmental criteria.
For end-of-life equipment, responsible recycling through certified e-waste processors ensures that valuable materials are recovered and hazardous substances are handled safely. Organisations should also consider donating functional equipment to educational institutions or non-profits, extending its useful life while supporting community initiatives.
Measuring and reducing your IT carbon footprint
Effective Green IT programmes begin with measurement. Organisations should establish a comprehensive IT carbon footprint baseline covering Scope 1 (direct emissions from owned facilities), Scope 2 (indirect emissions from purchased electricity), and Scope 3 (supply chain emissions including hardware manufacturing and cloud services). The Greenhouse Gas Protocol provides the standard framework for this accounting.
Key metrics to track include Power Usage Effectiveness (PUE) for data centre operations — where the industry average is approximately 1.58, meaning 58% more energy is consumed for cooling and infrastructure than for actual computing — as well as carbon emissions per unit of compute, energy consumption per employee, and e-waste diversion rates. Setting science-based targets aligned with the Paris Agreement provides a credible framework for year-over-year improvement.
Regular reporting against these metrics, integrated into broader corporate sustainability reporting, ensures accountability and enables continuous improvement. Automated monitoring tools can provide real-time visibility into energy consumption patterns, helping identify optimisation opportunities and demonstrating progress to stakeholders.
How Shady AS can help
At Shady AS SRL, we help Brussels-based and European businesses develop and implement comprehensive Green IT strategies that deliver both environmental and business value. From conducting IT carbon footprint assessments and designing energy-efficient infrastructure to advising on CSRD-compliant sustainability reporting for IT operations, our consultants bring deep expertise in sustainable technology practices.
Whether you are looking to optimise your cloud strategy for sustainability, establish hardware lifecycle management programmes, or build a roadmap toward carbon-neutral IT operations, we provide the strategic guidance and technical expertise to make it happen. Contact Shady AS SRL today to start your Green IT transformation and turn sustainability into a competitive advantage.