Environmental Impact of Software as a Service (SaaS)

Elisa Moscolin

Executive Vice President for Sustainability and Foundation

In this video, Elisa explains the environmental impact of software and how data centers drive these emissions. She further explains why cloud hosting can be more energy-efficient than on-site options, explore the hidden costs of the 'cloud,' and find out if software efficiency can offset its environmental footprint.

IT sector

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Environmental Impact of Software as a Service (SaaS)

9 mins 9 secs

Key learning objectives:

Understand the environmental impact of cloud-based software emissions
Outline strategies for reducing software-related emissions

Overview:

Cloud-based software and data centres contribute significantly to global emissions, with the ICT sector consuming substantial energy. Emissions arise from both device usage and data centres where software processes and stores information. Despite its name, the “cloud” relies on physical data centres with a notable environmental footprint. Major providers show cloud hosting can be more efficient, potentially cutting emissions by up to 88% compared to in-house servers. As demand grows, balancing software’s efficiency with its environmental impact is vital for sustainable tech practices.

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Summary

How does cloud-based software contribute to global greenhouse gas emissions?

Cloud-based software generates emissions through its dependence on energy-intensive data centers, which power and process the applications we use daily. Although less visible than transportation or manufacturing, the Information and Communications Technology (ICT) sector contributes around 2-4% of global emissions and uses about 4-6% of global electricity. Cloud data centers, which host most SaaS platforms, draw large amounts of power and create a notable environmental footprint.

What strategies can help reduce emissions associated with cloud-based software?

One key strategy is to utilise large cloud providers with efficient data centers, like Amazon's AWS, which can reduce carbon emissions by up to 88% compared to traditional on-site data storage. These providers employ energy- efficient practices, such as optimising server use and integrating cleaner power sources. Companies can also implement sustainable software practices, including minimising unnecessary data processing and adopting green coding techniques, to reduce the energy demand of their applications.

Can software efficiencies offset the emissions generated by cloud software usage?

While software efficiencies can help reduce emissions, it’s unlikely they alone can offset the carbon footprint without additional efforts, especially as cloud demand continues to grow. Cloud-based solutions can make operations more efficient, reducing emissions in some cases (e.g., less travel due to video conferencing). However, broader sustainability measures like optimising data center efficiency, reducing redundant data, and increasing renewable energy adoption are essential for substantial long-term impact.

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Elisa Moscolin

Elisa Moscolin is a sustainability professional with a track record of driving this agenda in global blue-chip organisations. She advises Boards and Executive teams on sustainability strategy and execution. She has worked in the ICT and Financial Services sectors. Elisa is currently Executive Vice President for Sustainability and Foundation at Sage Group plc.; Sage is a global market leader for technology for small and medium businesses and Elisa is leading its sustainability agenda. Elisa has previously worked for Vodafone Group in global and local roles in Italy, the UK and Kenya. In Kenya she worked with Safaricom, a subsidiary of Vodafone which developed M-Pesa, the iconic mobile-based money transfer and banking platform that has greatly improved financial inclusion in the country. She is an alumni of Cambridge Institute for Sustainability Leadership and holds a Master’s Degree in International Studies and Diplomacy. Elisa’s professional ambition is to contribute to shifting the business community toward more ethical and responsible business practices.

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