The term ESG emerged in the 2000s as investors examined the role of environmental, social and governance value drivers in asset management and financial research.
ESG stands for Environmental, Social, and Governance. It emerged in the 2000s as investors began to recognize the importance of these value drivers in asset management and financial research. Today, ESG has become a critical agenda across various sectors, influencing not just asset value but also broader corporate strategies and commitments.
How do cloud providers perform on ESG metrics?
Cloud infrastructure providers generally score higher on environmental metrics compared to their peers in leased datacenters and managed hosting. For instance, 42% of cloud vendors have an ESG score of 60 or above for environmental dimensions, while only 22% score similarly for social variables. This indicates a stronger focus on environmental initiatives, though there is room for improvement in governance and social aspects.
Why is ESG important for technology purchases?
ESG factors are increasingly important in technology purchasing decisions. According to a study, 76% of respondents indicated that the environmental impact of potential technology purchases is very or somewhat important. This trend is particularly strong among businesses in the financial and software IT services sectors, highlighting the competitive advantage that comes from strong ESG commitments.
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