If digital transformation defined the past 10 years for retailers, the next 10 are set to be determined by another, possibly greater challenge: cutting carbon emissions to net-zero.
As net-zero is now a key business target, carbon emissions must become a key measure of effectiveness. Considering eco-effectiveness is essential to ensure that companies are building viable, sustainable, and profitable businesses that really benefit the planet. Sending documents electronically vs. printing them, videoconferencing vs. flying to a client’s office, ordering online vs. driving to the store, are often considered more ‘green’, however, this is far from true.
Did you know 63.9% of global electricity is still generated using fossil fuels which go towards powering and charging our phones, laptops, tablets, and smart TVs. So, every time we hit a like button, thumbs up or thumbs down, we are using this energy. The data centres that power our internet use, currently produce approximately 3.8% of global carbon emissions, which is similar to the aviation industry and is rising alongside digital acceleration in a post-pandemic world.
The rise of cryptocurrency is also a significant contributor. According to the Cambridge Center for Alternative Finance (CCAF), Bitcoin currently consumes around 110 Terawatt Hours per year, roughly equivalent to the annual energy draw of small countries like Malaysia or Sweden.
What does it mean for retailers?
The shift to net zero will fundamentally change people's relationship with products. It will be about championing products and business models with longer life spans — such as rentals, reusable, and recycled products. Read our blog on how eCommerce will become ‘Recommerce.’
We also spoke to Jurryt van Arend, Head of Global eCommerce at the fast-growing Dutch company JOOLZ. JOOLZ's strategy from the start was to build a 'green' business, listen to Jurryt as he talks about how sustainability has “always been in their DNA” on the Future of Digital Commerce podcast.
What do consumers want?
Consumers seem to be ‘calling the shots’ in the retail industry and informed consumers will come to demand that brands are open, honest and transparent about their impact on the planet. Consumers will want ‘green’ websites, that consider carbon output. Maybe Google’s algorithms will eventually take into consideration a website’s carbon output, (or maybe it already does).
A recent survey found that 80% of consumers want technologies that help them monitor their carbon footprint. It’s easy to see how consumers will also demand this of brands.
Where do I start?
Some cloud providers have made ambitious commitments to reduce their adverse impact on the environment. Google has promised it will operate carbon-free by 2030, while Amazon, Facebook and Microsoft have pledged to use 100% renewable energy to power their data centre facilities.
Assess the impact of your digital infrastructure.
Volkswagen Canada recently opted for a low-carbon website to promote its new electric car. Consumers can choose between the typical website experience and a less data-heavy interface that uses black-and-white images and simply formatted text. According to Volkwagon, its low-carbon website is 50% cleaner than the typical page.
Do you know what your website’s carbon footprint is?
If, not, start by measuring it here Website Carbon Calculator.
Train your designers, developers and experts.
Sustainability principles can now be added to website and application design practices to reinforce environmental thinking. Designers and engineers can provide an option to switch to dark mode which uses a lot less energy. Consider your UX, and streamline websites so users don’t spend unnecessary time looking for what they need.
Use images only where they really add value. And use smaller images to reduce data transfer, and page weight.
Software engineers and developers should adopt more environmentally conscious approaches to software development by signing up to the Green Software Foundation, which was launched by Microsoft and others to accurately measure emissions and help construct more sustainable software.
Consider where your server is. Often a non-local server is used. If for example, a European business with a local market uses a US-based centre, it transfers data internationally for no reason. Use local hosting solutions, to reduce data transfer and emit less co2.
There is a new generation of centres powered by renewable energies. Businesses can find a local centre through the Green Web Foundation Directory.
Also, think about the technology that is running on the servers to ensure that the most efficient versions are used. Newer versions of PHP are not only faster but also use fewer server resources and therefore less energy.
And of course, you can plant trees to offset your carbon impact. Simply Commerce has partnered with Ecologi in our ‘plant for placements’ programme.
Don’t forget to shout about it
We are fast approaching the tipping point in the digital sphere, and the environmental implications are more urgent than ever. Brands that incorporate sustainability principles into their use of digital technologies will not only reduce harm to the planet but will also gain consumer trust and loyalty in a world where climate change is fast becoming both an obstacle and an opportunity to generate new forms of business value. Make sure your customers are aware of your commitment to change.
Sources: https://www.forbes.com/sites/cognizant/2021/09/21/how-to-be-both-digital-and-green-at-the-same-time/ https://www.hallaminternet.com/designing-for-sustainability-can-the-internet-damage-the-environment/ https://hbr.org/2021/05/how-much-energy-does-bitcoin-actually-consume
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