CIO Compensation May Soon Be Tied to Green Data Centers

Like it or not, the potential of green data center savings puts CIOs on the front line in the fight for sustainability.

InformationWeek

July 8, 2024

1 Min Read
Green data center
Image: Alamy

More corporate boards are thinking about tying CIO compensation to sustainability achievements such as moves to green data centers.

At the same time, a growing number of IT job candidates are making their employment decisions with corporate commitments to sustainability as a key evaluative criterion.  

Why Is This Happening Now? 

“Global businesses have reached a sustainability inflection point. Stakeholder expectations and heightened investor scrutiny are putting organizations under pressure to articulate their societal roles more clearly, prioritize environmental and social objectives within their business strategies, and demonstrate progress to stakeholders,” according to the Harvard Business Review.

“We also know that employees are prioritizing their employment decisions based on an organization’s purpose, culture, ESG goals, and diversity, equity and inclusion (DEI) priorities.” 

The pressures for sustainability are not just coming from employees and stakeholders. A growing number of large enterprises are also holding their supply chain partners accountable for environmental advancements, especially in terms of energy usage reduction and the reduction of industrial waste.

Suppliers must now fill out annual “report card” questionnaires on performance, and one of the categories that they’re required to report on is sustainability, and what they are doing to improve it. 

Related:Eco-Friendly Innovations: A Guide to Green Materials in Data Centers

Green Data Center as Low Hanging Fruit 

I’ve asked numerous CEOs and CIOs about the pressures of making their companies more sustainable. To a person, all have said that the easiest way to show improvements in sustainability is to “green” their data centers. 

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InformationWeek

InformationWeek, a sister site to Data Center Knowledge, is a trusted source for CIOs and IT leaders seeking comprehensive and authentic coverage of the constantly evolving world of technology and its impact on business. Our experienced and ethical journalists conduct in-depth examinations of crucial issues and the impact of global events on IT operations and strategies, helping forward-thinking executives stay at the forefront of their industries. InformationWeek also provides a platform for enterprise IT leaders and leading tech companies to share their insights and experiences through exclusive interviews, opinion pieces, and events, offering firsthand accounts of strategies, trends, and innovations.

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