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Carbon reporting is arriving in IT procurement

Business By Mits Cloud Practice 1 min read
Carbon reporting is arriving in IT procurement

Sustainability reporting has moved from voluntary to structured for large listed Indian companies through SEBI's Business Responsibility and Sustainability Reporting requirements. Those companies increasingly push the question down their supply chain, and software vendors are part of that chain.

The question usually arrives inside a procurement questionnaire, next to the security section. It asks whether you measure emissions, whether you have a reduction target, and what your cloud providers report. Answering 'we have not looked at this' is survivable today and will be less so as the questionnaires standardise.

For a software firm, the measurable portion is narrower than it sounds. Cloud consumption, office electricity, employee commuting and business travel cover most of it. The major cloud providers all publish per-account carbon reporting tools, and those tools give you a defensible number without a consultant.

There is a useful overlap with cost. The actions that reduce cloud emissions — shutting down idle environments, right-sizing instances, choosing regions with cleaner grids, moving batch work to efficient instance types — are largely the same actions that reduce the bill. A FinOps effort produces sustainability numbers almost as a by-product.

Be careful with claims. Marketing a service as carbon neutral on the basis of offsets is increasingly scrutinised, and India's advertising and consumer protection rules on misleading claims apply to environmental statements as much as any other. State what you measure and what you have reduced; avoid adjectives you cannot evidence.

The pragmatic first step is simply to produce a number. One page, covering cloud and office energy, updated annually. That is enough to answer the questionnaire honestly and to notice which direction you are moving.

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