Cloud service providers (CSPs) are beginning to experience regulatory, societal and market pressures to integrate sustainability considerations into their business strategies. CSPs face the challenge not only of migrating their business to a more sustainable model but measurably validating the sustainability of their datacenters to provide environmental, social and governance (ESG) transparency and tools to quantify clients’ carbon usage and savings. This is necessary to respond to solidifying government regulations and customer ESG visibility requests, as well as to help customers reduce their environmental footprint, meet demands for acceptable environmental practices and compliance, and achieve their sustainability and climate goals. 

With ESG reporting now mandatory in many countries, businesses are seeking ways to gain visibility into their carbon emissions, both internally and across their supply chains, to assess the environmental costs of their operations in order to plan carbon management and reduction strategies. CSPs also feel pressure to provide their customers with operational data on carbon efficiency, carbon transparency and environmental impact. As concerning as this may seem, it can be a win-win for both the CSP and the end customer. Optimizing workloads and infrastructure helps reduce waste and therefore reduces energy consumption, driving down the cost to operate. 

In this 451 Research Pathfinder report, we explore requirements for CSPs to become more sustainable, as well as existing and emerging tools to aid them in measuring and reporting progress toward their sustainability goals.