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As one of the leading nations actively pursuing sustainable climate goals, New Zealand has not only enacted sustainability acts but also actively guides businesses to comply. New Zealand’s Zero Carbon Act of 2019 mandates businesses in the country to adjust their operational system to achieve a net-zero carbon emission status by 2050.

Because of this, every sector of the Kiwi economy is now under pressure to reduce their carbon footprint. However, one focal point in this discussion is cloud emissions. With more organisations shifting towards digital-based operations and cloud computing, conventional cloud technology leaves behind the same environmental challenges the act seeks to resolve.

In this article, we will look at the environmental implications of cloud-based operations and how Kiwi businesses are managing them to achieve net-zero status.

What are cloud emissions?

Cloud emissions are those greenhouse gases that are produced when data are being stored, processed, and transferred through cloud computing platforms. Every time you send an email, upload a file, or stream a video through the cloud, energy is being used. This energy usage emits gases. These emissions come from data centres that house thousands of servers running nonstop, and they require cooling systems to prevent overheating. All these cause emissions.

These types of emissions (Scope 3) are usually the hardest to track, even though they contribute significantly to the overall carbon footprint of businesses. This is because they are not easily noticeable by the end user. In New Zealand, these Scope 3 emissions are beginning to gain attention and let's look at why that is so.

Why are cloud emissions gaining attention in New Zealand

Businesses in New Zealand, from small entrepreneurs to large corporations and government firms, all use cloud technologies at one level or another. More than 70% of Kiwi businesses agree that the technology is key to their future growth.

The reasons are understandable. Cloud technologies offer flexibility with operations; they are cost-efficient and they're scalable. However, as these organisations begin to conduct more all-round carbon audits, the emissions produced during digital operations are now being considered as a blind spot.

From local reports and assessments from sustainability groups, it's now evident that digital emissions in New Zealand are on the rise, with organisations having larger online infrastructure contributing the most.

This is why the government in New Zealand is applying more pressure to ensure that businesses pursue climate transparency. Cloud storage and usage have to be included in their accountability reports and net-zero strategies. However, why should this be added to the carbon footprint?

Cloud infrastructure and how it influences carbon footprint

The cloud ecosystem in New Zealand boasts some notable global providers like Amazon Web Services (AWS) and Microsoft Azure, in addition to other emerging local data centres. These facilities use a lot of energy, which comes with emissions. These emissions come from the electricity needed to run and cool servers.

It's a good thing that the majority of these tech giants are aware of their carbon footprint and are now in a competition to outperform each other on sustainability projects. For local data centres, they can stay clean by using New Zealand’s relatively clean electricity grid, but this also comes with the challenge of infrastructure scale. With this reality on hand, how are businesses responding?

How are businesses in New Zealand managing cloud emission problems

As demanded by the Zero Carbon Act, businesses are mandated to include their cloud emissions in their sustainability reports. These reports usually include inquiries around who their cloud provider is, where their data is stored, and how much energy their digital services consume.

And as a response, many of these businesses, such as Green Cone, are now taking green practices seriously. These businesses now have to optimise their workloads to avoid wasteful computing. Also, they have to schedule their intensive processes during hours when grid energy usage is off-peak. Businesses are also choosing data centres that use renewable energy and those that offer carbon tracking dashboards.

How are businesses tracking cloud emissions

Like we saw earlier, tracking cloud-based emissions is quite complex. However, there are certain tools and services that organisations can now use to measure and manage the carbon footprint of their digital activities on the environment.

Google Cloud Carbon Footprint is a tool that businesses can use to track their project's emissions in real time. There's also the AWS Customer Carbon Footprint tool that can give businesses insight into their energy consumption and their carbon footprint across workloads.

In addition to these, there are consultancy firms that specialise in sustainability and third-party auditing firms that can help organisations track and interpret their emission data and how they can use the data to form an ESG strategy.

Cloud Sustainability Becomes Business Priority

With every stakeholder in New Zealand's green future goal actively pursuing the 2050 deadline, businesses are now taking cloud emissions more seriously. Kiwi businesses are now tasked with integrating cloud sustainability into their operational strategies.