From Sustainability Strategy to Execution
In the last ten years, enterprise architects have played a central role in the digital transformation. Their holistic view of the organization, underpinned by comprehensive methodologies and extensive access to IT and business portfolio data, makes them ideally suited to translate business strategies into actionable plans.
However, enterprise architects have not yet significantly impacted corporate sustainability goals, although many IT organizations are pursuing at least one sustainability initiative. By using frameworks such as the United Nations Sustainable Development Goals (SDGs), the Amazon Web Services (AWS) Well-Architected Framework and the Azure Well-Architected Framework, enterprise architects can set sustainability goals and develop actionable plans for business, application, data and technical architectures.
Integrating the UN’s Sustainable Development Goals into Business Architecture
Interest in the 17 Sustainable Development Goals (SDGs) set by the United Nations (UN) has increased and the urgency to achieve them is growing. These goals provide a blueprint for a sustainable future by 2030, with 169 targets and 232 unique indicators to track progress.
Despite the importance of these goals for shareholders, customers and employees, actual progress has been slow. A study by MSCI ESG Research LLC found that only 38% of companies are “compliant” with the UN SDGs, while nearly 55% are either “non-compliant” or “neutral”. Only 0.2% were “strongly aligned”, raising concerns about “greenwashing”, where companies publicly commit to sustainability without delivering meaningful results.
Enterprise architecture plays a critical role in implementing strategic plans and achieving the SDGs by tracking the implementation of actions. Enterprise architects can drive this process through four key steps:
1. Determining alignment with the SDG goals and demonstrating commitment
Leaders should begin by identifying the SDGs most important to their organization and defining appropriate actions to engage employees. For example, a manufacturer could focus on SDG #122—“Ensure sustainable consumption and production patterns”—by measuring natural resource efficiency and waste reduction. An energy sector organization might track progress toward SDG #7—“Ensure access to affordable, reliable, sustainable, and modern energy for all”—by increasing the percentage of renewable energy in their mix.
2. Making the SDGs comprehensible in the landscape of corporate capabilities
Once the relevant SDGs have been defined, they should be linked to the company’s core capabilities. By examining which corporate capabilities can contribute to achieving the sustainability goals, high-level strategies can be transformed into implementation plans. This process also involves defining responsibilities by involving the employees responsible for each capability. A systematic dialog between business architects and business owners around the SDG targets will generate new ideas and identify ways to measure improvements.
3. Align SDG targets with current portfolio and budget priorities
The next step is to review the projects, work streams and tasks required to achieve the SDG targets, along with their estimated impact and budget. By understanding the relationships in the current landscape, enterprise architects can facilitate conversations between stakeholders to help prioritize initiatives and allocate budgets effectively.
4. Measuring results and creating transparency of success
Tracking progress from the actual state to the target state is crucial. Enterprise architects can help model and monitor progress from multiple angles — capabilities, processes, technologies and people— to determine where adjustments are needed and ensure a solid feedback loop for continuous improvement.
Optimizing Application and Data Architectures in the Cloud
Cloud computing has revolutionized resource scaling and data storage, significantly reducing energy consumption, waste and greenhouse gas (GHG) emissions. According to a study by Accenture, cloud computing is 93% more energy efficient and produces 98% less GHG emissions than on-premise data centers. Moving workloads to the cloud helps organizations contribute to the UN SDGs and analyze their carbon footprint.
However, moving inefficient workloads to the cloud doesn’t automatically make them energy-efficient. Public cloud providers adopt a “shared responsibility model,” where the provider ensures the sustainability of the cloud environment, and the customer ensures the sustainability of applications in the cloud. Companies need to invest in cloud-native architectures that focus on the optimal use of cloud services to achieve high efficiency.
Case Study: Netflix and Cloud Efficiency
Netflix provides a real-life example of optimizing application and data architectures in the cloud. By leveraging Amazon Web Services (AWS), Netflix has been able to scale its operations efficiently, ensuring that it uses resources only when needed. This approach reduces waste and energy consumption. AWS’s commitment to renewable energy also supports Netflix’s sustainability goals, showcasing how cloud architecture can contribute to a company’s overall sustainability strategy.
Enhancing Technical Architecture for Sustainability
Enterprise architects can also drive sustainability by optimizing technical architecture. This involves selecting energy-efficient hardware, optimizing software for lower energy consumption, and implementing robust data management practices.
Case Study: Google’s Data Centers
Google’s data centers are an excellent example of sustainable technical architecture. Google has designed its data centers to be highly energy-efficient, using custom-built servers and advanced cooling techniques. According to Google, their data centers use 50% less energy than typical data centers. Moreover, Google is committed to using 100% renewable energy for its data centers, significantly reducing its carbon footprint. Enterprise architects can look to Google’s example when designing their own technical architectures to enhance sustainability.
Leveraging Data Architecture for Sustainability Insights
Data architecture plays a crucial role in sustainability efforts. By collecting, storing, and analyzing data efficiently, organizations can gain valuable insights into their sustainability performance and identify areas for improvement.
Case Study: Unilever’s Data-Driven Sustainability
Unilever has effectively used data architecture to drive its sustainability initiatives. By leveraging advanced analytics and data management techniques, Unilever tracks its environmental impact across the supply chain. This data-driven approach has enabled Unilever to reduce waste, optimize resource use, and improve sustainability reporting. Enterprise architects can adopt similar data architecture strategies to enhance their organization’s sustainability efforts.
Conclusion
Achieving sustainability goals requires commitment, a clear execution plan, ongoing investment, and organizational change. Enterprise architects are uniquely positioned to support these initiatives practically and effectively, ensuring long-term success. By aligning business architecture with SDGs and optimizing application, data, and technical architectures, enterprise architects can play a crucial role in creating a more sustainable future.
As companies increasingly recognize the importance of sustainability, enterprise architects will continue to be instrumental in turning strategic goals into tangible results, helping organizations meet their sustainability commitments and drive positive environmental and social impact.
