Data Centre Sustainability Certification – How do you demonstrate success?

One of the biggest barriers to adopting sustainability practices is knowing where to start. With past attitudes about story telling rather than impact assessments, allegations of greenwashing have been everywhere. The introduction of the Corporate Social Reporting Directive (CSRD) and EU Taxonomy regulations is changing that. Targeting large and listed companies within the EU and also their investments in other territories, it is clear on which aspects must be reported and in which ways. It means that the work done on the EU Data Centre Code of Conduct as well as wider advice given through the DCA Sustainability Best Practice Whitepaper now have a very practical and real use for the sector.

I was invited to host a discussion on data centre sustainability standards at  Data Centre World 2023 - the world's largest gathering of data centre professionals and end-users. I had invited Mark Acton, a consultant with expert insight into KPIs around energy and materials efficiency, and Steve Mellings, CEO of standards organisation ADISA to discuss the issues with me. We were to dig down into how to manage not just environmental but also social and governance risks, and how to balance these against security concerns.

Unfortunately, the best-laid schemes o' mice an' men gang aft a-gley. Steve Mellings had a last-minute injury and I asked Rich Kenny to step in on his behalf. As someone who has balanced security concerns with reuse for many years, works on software development in this area, and joins me in supporting standards development, he was able to cover these points more than most.

Energy efficiency and carbon reduction plans 

The traditional approach to environmental sustainability in the data centre sector has centred around energy efficiency. This is unsurprising given the global impact of data centres on global energy usage, which is estimated to be 1%. Power Usage Effectiveness (PUE) is a metric that the sector has used for a long time to measure progress on energy efficiency. There has been a lot of work done on cooling efficiency in order to bring down the ratio between the energy drawn by the facility and the energy used by the IT. A PUE as close to 1 as possible has been seen as a good thing. However, there is now a growing understanding that the energy efficiency of the IT itself (measured as compute power over energy draw), and the level of utilisation are just as important if not more so. The ISO 30134 family of standards have Key Performance Indicators (KPIs) for IT Equipment Utilisation (ITEUsv) and IT Equipment Efficiency (ITEEsv) that look at this and allow these concerns to be built into the Environmental Management plan.

Tied to energy usage is the issue of carbon emissions. The ISO 30134 has a KPI on this, known as carbon usage effectiveness. However, a more thorough approach would be a Net Zero Plan in line with Science Based Targets. This will require net zero on all emissions – direct, associated with energy usage and supply chain emissions – to reach Net Zero by 2050 with an interim target. It aligns with the EU’s Fit for 55 package, part of the CSRD. This requires companies to have a 55% reduction in targets by 2030 with a combination of increased energy efficiency, clean energy supply and investment where possible in carbon capture technologies. To achieve this, companies must understand where there supply chain emissions come in.  

A significant proportion of these will be in the buildings themselves. Steel and concrete are both in the top five industrial processes for greenhouse gas emissions. BREEAM and LEED are the standards that cover environmentally sound construction and I took the opportunity during our panel to ask Mark for a compare and contrast. He recommends BREEAM because it is more relevant and has annexes that are specifically designed for data centres.  

Climate neutrality 

The EU favours the term “Climate Neutrality” when talking about environmental sustainability. In simple terms, they are looking at more than just energy and carbon. Key areas outside of energy efficiency that data centres need to address are heat reuse (also known as Combined Heat and Power), Water Usage and Circular Economy for the IT hardware. The ISO 30134 contains KPIs on Water Usage Effectiveness (WUE), Carbon Usage Effectiveness (CUE) and Energy Reuse Factor (ERF), which measure success on clean energy supply, water efficiency and heat reuse.  

The last of the Climate Neutral concerns – Circular Economy is slightly more difficult to deliver. ISO is working on a number of standards that measure Circular Economy business practices and products but these are still under development. For data centres who would like to support the circular economy by selling their IT hardware for reuse, remanufacture and responsible recycling, it is best to look to standards for the service providers.  

ADISA is one such standard. Approved by the Information Commissioners Office, it provides a secure chain of custody for data bearing devices from the customers facility to the IT Asset Disposition provider’s facility and certified data sanitisation to comply with GDPR. It enables data centres to manage data security with circular economy, sidestepping concerns in sectors such as finance that tend to shred and destroy IT equipment rather than look at reuse or remanufactured.

Rich highlighted the standards that ensure ethical destruction of e-waste too, advising data centres to request an R2v3 certification from their downstream supply chain. This ensures nothing ends up in landfill or being treated in a way that would damage the environment and human health.

The social side of sustainability 

Environmental, Social and Governance (ESG) risk is a term used in many large organisations to frame their sustainability strategy. It recognises that the supply chain of materials and products has a huge impact on society at large, particularly in conflict areas and places where there are less stringent labour and health and safety laws. To address this risk, companies should establish codes of conduct for their own businesses and for businesses in their supply chain. These are based on the principles of the UN Global Compact and include clauses on modern slavery, freedom of association and child labour. Due diligence, supply chain management, training and auditing are also strongly recommended. The Responsible Business Alliance is a great place to start on this.  

A positive add on to this is the UN Sustainable Development Goals programme and business targets set against this. All UN member states have signed up to goals, which aim at a fairer, less polluting world by 2030. Although business participation is voluntary, support often means setting and reporting against measurable targets over a period of time. This enables organisations to chart progress towards sustainable development and add reach into the positive changes made.  

Governance 

Statements and policies are extending beyond the traditional anti-corruption and bribery areas. Many of the UK government supplier frameworks have a carbon reduction plan (CRP) as a pre-requisite. Companies large enough to be in scope for the Energy Savings Optimisation Scheme (ESOS) would also have to demonstrate energy and carbon reductions over time. An ISO 50001 would cover the ESOS reporting and help generate a CRP for the website. Tenders and frameworks also ask for a social value statement and supporting evidence on this. Policies on carbon, environment, circular economy and diversity and inclusion are also helpful.  

Alongside this, the Financial Conduct Authority has finalised rules on reporting against diversity targets for listed companies. At least 40% of the board should be women; at least one of the senior board positions should be a woman; at least one member of the board should be from an ethnic minority background. Failing to do this requires an explanatory document. Evidence of this is also found in the CSRD, which asks companies with over 500 employees to report diversity on company boards in terms of age, gender, educational and professional background. 

How to effect change 

It was standing room only at the DCW panel discussion. This is a really positive sign that the sector is looking to establish good standards and demonstrate improved practice. However, one question from the audience highlighted that it can be a long journey from discovery to action. With over 15 years working in environmental sustainability, he had seen nothing really happen so far. He wanted to know how we can have confidence that things are changing.  

Part of the answer is that the sector is going to have to. CSRD, EU Taxonomy, FCA regulations are just part of a raft of legislative and regulatory changes worldwide. The US, China, Australia and Japan also have corporate supply chain regulations; the Securities and Exchange Commission in the US is just one of the bodies asking for Climate Related Financial Disclosures for insurers and the finance sector.  

Another part of the answer is that people want to. Having run internal and external Net Zero and Sustainability training for nearly a year now, I can attest to the passion and determination of individuals given a shared toolbox of knowledge. Outlining the issues and sharing different approaches helps align efforts and builds confidence. Training shows that progress can be measurable and is achievable if you understand what you are doing and create a plan to get there.  

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