CIO OPINION
43 % of companies believe connected IoT , 5G , and edge computing are critical ICT technologies to meet ESG targets .
Sarwar Khan , Sustainability Director , BT
Is ESG taking priority over IT transformation in African enterprises ?
Digital transformation agendas and their sustainability commitments are often in conflict with each other , where increasing demand for AI solutions , as well as data centre and network capacity needed to support AI adoption , are boosting energy consumption and carbon emissions , compromising ESG targets , explains Sarwar Khan at BT .
Gartner research shows that 50 % of CIOs will have performance metrics tied to the sustainability of their IT operations by 2025 – and by 2027 25 % of CIO compensation will be linked to their sustainable technology impact . This means that sustainability must now switch from abstract discussion to practical action .
Yet , organisations ’ digital transformation agendas and their sustainability commitments are often in conflict with each other . For example , increasing demand for AI solutions , as well as data centre and network capacity needed to support AI adoption , boost energy consumption and carbon emissions , compromising corporate environment , social and governance , ESG targets .
Compliance with ESG regulations and standards , and realising the promised benefits of sustainability , adds to the mounting pressure on CIOs . A recent BTsponsored IDC InfoBrief revealed that CEOs globally are prioritising meeting ESG goals and commitments , rated most important by 44 % over driving digital business initiatives , rated most important by 37 %. But there is an understanding of the critical role sustainable IT plays in ESG .
38 INTELLIGENTCIO AFRICA www . intelligentcio . com