Despite Net Zero Legislation Australian Sustainability Efforts Stall Amid Data Challenges: Hitachi Vantara Study

Announcement posted by Hitachi Vantara 06 Jun 2023

Data centre decarbonisation represents a key opportunity for future efforts, though it is not listed as a main focus area despite legislation now in force for Australia's emissions reduction target of 43% by 2030 and net zero emissions by 2050.

SYDNEY, 6 June 2023 – Australian businesses are making sustainability a priority, with 62% of companies citing that they have developed plans for achieving carbon neutrality. However, this is well under 72% of enterprises globally according to The State of Data Infrastructure Sustainability, a new global report from Hitachi Vantara, the modern infrastructure, data management and digital solutions subsidiary of Hitachi, Ltd. (TSE: 6501). At the same time, just 68% of Australian enterprises have advanced plans for achieving net zero carbon emissions, compared to 77% of businesses globally.

While 72% of Australian respondents overall said that they were on plan with progress against their carbon reduction goals compared to 64% globally, this survey revealed that actual progress may not be as robust as many businesses believe. All this comes at a time as Australia has committed to achieve net zero emissions by 2050 and reduce greenhouse gas emissions by 43% below 2005 levels by 2030. At the same time, each state has also set interim emissions reduction targets by 2030: NSW: 50%; Victoria: 50%; Queensland: 30%; South Australia: at least 50%; Western Australia: 80% below 2020 levels; ACT: 65-75% (on 1990 levels). Tasmania already achieved net zero in 2015.

Download a copy of The State of Data Infrastructure Sustainability report here.

The survey sought to shed light on the importance of sustainability for organisations today, and the steps being taken to address today’s data sustainability challenges. Key findings include:

When asked what the biggest challenge is to achieving their sustainability goals, 45% said they lacked a sustainability strategy and implementation plan (compared to 37% globally), with 41% plagued with striving to keep up with regulations (versus 46% globally).
One in three also noted that they had inadequate access to critical sustainability data.
The timing for achieving their goals is still decades away; on average, organisations do not expect to be at net zero carbon emissions until 2048, 25 years from now.
Ethical obligations (56%) were cited as the primary driver of the organisation’s sustainability goals while complying with regulations (47%) and meeting customer environmental expectations (41%) rounded out the top three.
Globally, 56% of organisations cited compliance with new legislation and regulation as their primary drivers for sustainability goals followed by attracting and retaining talent (38%) and cost optimisation (37%).
57% of Australian respondents said that their data centre footprint had not changed at all in the past two years. This compared to 61% globally. Just 7% said it decreased at all compared to 16% globally.
In looking ahead two years, 44% expect the carbon footprint of their data centre will either stay the same or increase; this compares to 73% globally; only 6% (compared to 9% globally) expect it to decrease more than 10%.

The Critical Role of the Data Centre in Reducing Emissions

The lack of progress in reducing the data centre footprint was highlighted with just 36% of Australian respondents compared to 50% of respondents globally saying that creating an eco-friendly data centre was a high or very high priority for the organisation. When asked what steps they had taken already to reduce their carbon footprint, 50% of respondents both in Australia and globally (49% globally) are using the latest technological solutions, 41% (versus 46% globally) are shifting to alternative energy resources and 40% are decarbonising their data centre (versus 46% globally)

However, 46% of respondents (compared to 39% globally) are turning to outside assistance to support a drive to ensuring energy efficient buildings, plants and equipment. Data centre decarbonisation was also cited as the area where firms need outside assistance, with 40% (and 39% globally) saying they needed third-party help while 35% (compared to 37% globally) required third-party help to use the latest technological solution to reduce their carbon footprint.

Part of the problem appears to be that executives across the C-Suite are not fully aware of the importance of data centre modernisation to achieve their overall sustainability goals. CEOs and CIOs appear better informed, with 38% of CEOs and 33% of CIOs and CFOs saying that an eco-friendly data centre is one of the most effective ways to reduce their company’s carbon footprint; while just 14% of Chief Data Officers and 17% of Chief Sustainability Officers were of the same opinion.

“To get to net-zero goals as set out by Federal and state governments, this global survey suggests that Australian businesses are in catch-up mode compared to their global peers in their sustainability efforts,” said Nathan Knight, Vice President and Managing Director, Hitachi Vantara Australia and New Zealand. “Data centres consume large amounts of electricity and account for 4% of the total greenhouse emissions worldwide. Yet only 36% of Australian businesses believe that eco-friendly data centre is a top priority in reducing carbon emissions, compared to 50% of global respondents. Four in 10 firms require third-party help to achieve data centre decarbonisation. Australian firms must establish a concrete strategy and implementation plan, with leadership buy-in, that takes a broad view of emissions across their entire IT estate, including edge, on-prem, and off-prem.”

For more information about Hitachi Vantara’s efforts in sustainability, visit: https://www.hitachivantara.com/en-us/solutions/sustainability.html

A Closer Look at Keys to Sustainability Success

Survey respondents were designated as being leaders, advanced, early implementers, or beginners based on their level of progress in creating an eco-friendly data centre by implementing eight key sustainability initiatives.. Overall, leaders were more likely to say they had started taking steps to decarbonise their data centres, with just under half (46%) of leaders saying they had started, compared to 40% of beginners who said the same. However, when it came to goals for net zero carbon emissions, there was not as big of a gap, with leaders targeting 2048 for net zero compared to 2049 for beginners.

For more information on how Hitachi Vantara is helping customers provide a data-driven approach to sustainability, please click here.

Breakdown of Survey Respondents

Commissioned by Hitachi Vantara, ThoughtLab Research interviewed 1,000 respondents globally, including 100 in Australia, across a range of industries including financial services, manufacturing, transportation, healthcare, and public sector. Nearly all of the respondents (96%) are from companies with 1,000 or more employees.

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About Hitachi Vantara

Hitachi Vantara, a wholly-owned subsidiary of Hitachi Ltd., delivers the intelligent data platforms, infrastructure systems, and digital expertise that supports more than 80% of the Fortune 100. To learn how Hitachi Vantara turns businesses from data-rich to data-driven through agile digital processes, products, and experiences, visit hitachivantara.com.

About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the business structure of “Digital Systems & Services” - supporting our customers’ digital transformation; “Green Energy & Mobility” - contributing to a decarbonized society through energy and railway systems, and “Connective Industries” - connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s consolidated revenues for fiscal year 2022 (ended March 31, 2023) totalled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.