As the software-as-a-service (SaaS) industry continues to grow rapidly, SaaS companies have an increasing responsibility to consider their social and environmental impact. Consumers, employees, and investors are understandably insisting that companies operate in a more sustainable and ethical manner. Fortunately, there are several quick wins that SaaS (and any other) companies can implement to improve their social and environmental performance.
Reduce Energy Consumption and Emissions
One of the most impactful steps SaaS companies can take is to reduce the energy consumption and greenhouse gas emissions associated with their operations. A study by the International Energy Agency found that data centres account for around 1% of global electricity use, and this share is expected to grow (IEA, 2021). SaaS companies can tackle this by transitioning to renewable energy sources, optimising their cloud infrastructure, and implementing energy-efficient practices in their offices.
For example, in 2021, Salesforce reached a major milestone by sourcing 100% renewable energy worldwide after committing to this ambitious target in 2013 (Salesforce, 2021).
Efficiency Quick Wins:
- If you have a remote or hybrid team, engage your employees to track and improve your Carbon Footprint from home with the Giki Zero tracker.
- Partner with a travel management company, such as Travel Perk, to not only improve your team’s booking experience and save money, but also to create net-zero travel strategies and offset emissions.
Prioritise Diversity, Equity, and Inclusion (DEI)
Not only is this the right thing to do, but research has shown that diverse teams perform better and are more innovative. A study by McKinsey found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability (McKinsey, 2020).
DEI Quick Wins:
- Perform a DEI audit and run an internal inclusivity survey. Use the results to set three SMART objectives as targets for the next six months. Perhaps there should be a higher percentage of women in leadership roles? Or reduced barriers to entry?
- Sponsor members of staff to become trained Mental Health First Aider’s. Organisations such as St John Ambulance run affordable two day courses to equip your team with the tools to support their colleagues.
- Look for accreditations that can amplify your recruitment to underrepresented communities. For example, the Salesforce Talent Alliance connects Salesforce employers with diverse candidates.
Implement Sustainable Procurement Practices
SaaS companies can also improve their environmental impact by implementing sustainable procurement practices. This includes prioritising suppliers with strong environmental and social track records, as well as choosing products and services that are environmentally friendly. A study by the University of Cambridge found that sustainable procurement practices can reduce a company’s scope 3 emissions (emissions from its supply chain) by up to 30% (University of Cambridge, 2018).
Sustainable Procurement Quick Wins:
- Look for BCorp Certified businesses when partnering with suppliers and distributors. This eliminates the need to research their policies and sustainability practices.
- For those without a BCorp or ISO 14001 credential, implement a vendor sustainability questionnaire. Use the questionnaire to assess potential suppliers’ sustainability practices. This can help you make more informed decisions about your supply chain, and plenty of templates can be found online.
By implementing these simple quick wins, companies can make significant strides towards your sustainability and DEI goals.
References
International Energy Agency. (2021). Data Centres and Data Transmission Networks. Available [online] at https://www.iea.org/reports/data-centres-and-data-transmission-networks
Salesforce. (2021). Sustainability. Available [online] at https://www.salesforce.com/company/sustainability/
McKinsey. (2020). Diversity Wins: How Inclusion Matters. Available [online] at https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
University of Cambridge. (2018). Sustainable Procurement Can Reduce Supply Chain Emissions by up to 30%. Available [online] at https://www.cisl.cam.ac.uk/resources/publication-pdfs/sustainable-procurement-can-reduce-supply-chain-emissions.pdf