Sustainability


Managing emissions Businesses, even those committed to sustainable practices, can find decarbonisation across all scopes challenging – especially Scope 3. Channel partners can manage their own Scope 1 and 2


operational emissions. For example, they have control over their buildings or fleets. Scope 3 emissions - also known as ‘value chain emissions’ - can be trickier to control. Although a company does not produce them directly, it is indirectly responsible for them through its chain. For example, when a company purchases, uses and disposes of products from its suppliers, this can impact its Scope 3 emissions. Measuring emissions that originate outside a company can be


understandably complex. However, while controlling Scope 3 emissions can be challenging, it is not impossible. For example, resellers and MSPs are uniquely positioned to work regularly with both vendors and end-users and have oversight over the landscape. Vendors and channel partners need to work together to


meet customer demands and address Scope 3 emissions at the procurement stage. Tis collaboration should prioritise carbon and data transparency between suppliers, and extend to wider sustainability initiatives such as reparability, recyclability, and embodied emissions of the equipment they purchase, which can also support Scope 3 reduction.


Staying on top of rules and regulations Te channel faces an increasingly stringent regulatory landscape around sustainability. For example, this year, the UK Government’s Climate-Related Financial Disclosure Regulations 2022 will mandate that some channel partners – and their customers – report their carbon emissions and associated management practices. Proposed regulations from the European Parliament aim


to reduce instances of greenwashing, while the European Commission’s Corporate Sustainability Reporting Directive (CSRD) requires certain companies to disclose the social and environmental risks they face, as well as the impact of their activities on people and the environment. Globally-recognised industry sustainability assessments such


as those performed by companies including CDP, EcoVadis and EcoAct also provide further incentives for businesses to demonstrate their commitment to sustainability. Together measures such as these will help ensure that companies are held accountable for their actions. It’s vital, therefore, that channel partners stay abreast of current and pending rules and regulations if they are to truly capitalise on the sustainability opportunity. Partnering with a vendor who is leading by example can help with this. Ultimately, channel partners play a dual role in sustainability.


Tey need to decarbonise their own operations to meet changing regulatory requirements and mobilise to help support their end- customers who may be subject to these changes.


The generative AI balancing act AI has the potential to help mitigate greenhouse gas emissions and enhance a company’s sustainability efforts. Te channel can support customers on their sustainability journey by introducing AI-driven solutions such as smart IoT devices into their portfolio. For example, by analysing large datasets, generative AI can predict


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energy demand and optimise energy usage, resulting in substantial reductions in energy consumption and carbon emissions. However, there is a balance that needs to be maintained. While


generative AI can help mitigate global greenhouse gas emissions, the high energy intensity associated with AI technologies must be taken into consideration. For instance, training a large language model (LLM) like ChatGPT-3 is estimated to consume around 1,300 megawatt hours (MWh) of electricity, which is equivalent to watching over 1.6 million hours of Netflix. Tis estimate doesn’t even account for the energy needed to run such a model. Generative AI has the potential to be a game-changer for the


channel’s sustainability efforts, but care must be taken to address these challenges to ensure its use doesn’t inadvertently contribute to climate change instead. Te channel can lead the way by enabling their customers to sustainably scale AI deployment and minimise the barriers to adoption.


Encouraging a culture of sustainability To ensure compliance, businesses should set targets and implement approaches that encourage both employees and customers to adopt more sustainable practices. Tis approach will help to foster a sustainability-first culture rather than treating it merely as a box- ticking exercise. For example, employees who know they will be rewarded for


prioritising sustainability are more likely to want to embrace that change and integrate it into the company culture. Providing rewards such as financial bonuses, promotions, or increased responsibility, can motivate employees to continue to adopt sustainable practices in their daily lives. At the same time, witnessing colleagues rewarded for environmentally friendly actions can create a domino effect, inspiring more areas of the business to adopt sustainable behaviours. Over time, this can lead to a lasting change. Te company


will benefit from the shiſt in culture, as sustainability becomes a greater focus. Te increase in sustainable practices will not only help reduce emissions but also create a sense of fulfilment among employees and contribute to a greener future. Furthermore, channel partners that innovate and adopt sustainable practices early on will distinguish themselves from their competitors.


Time for action Te channel is moving toward a more sustainable future, and the industry must work together to create lasting change. Channel partners must take more decisive action and a dual role in accelerating both their own and customers journeys if they are to capitalise on the opportunities that the demand for greater sustainability offers. Not only is there a need to comply with the increasing number


of rules and regulations regarding ESG reporting, of which data and connectivity are key, but consumers are also increasingly demanding more sustainable solutions and products. Channel companies that fail to adapt will lose competitive bids to those who prioritise greener strategies. We need to foster a culture of sustainability that supports new


policies and ways of working, makes sensible use of available data and technology, and encourages greater creativity and innovation.


January/February 2025 | 27


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