As the Energy Transition has continued to accelerate, software has become a main focal point in the reduction of emissions, as well as the support of producing reliable, affordable, and sustainable energy. Organizations are becoming more interested in the acquisition of renewable assets, getting more focused about the impact their operation has on the environment, and are thinking more than ever about how they can balance the pressures of profit and innovation.
One strategy we see many energy industrials exercise for both profit and innovation is cloud technology.
As many readers will know, cloud is an enabler of greater scale, elasticity, security, integration, and data storage. By hosting software in cloud environments, organizations can also take advantage of the technology to reduce overall costs and decrease the hardware required to host individual applications or enterprise solutions—freeing up their IT resources to focus on value-add projects.
Beyond the above, well-known benefits, moving applications to the cloud can help redirect the Scope 2 emissions from the energy companies to Scope 1 for a hyperscaler, ensuring they are prioritized and addressed at scale.
Consider this infographic created by the Environmental Protection Agency (EPA) that summarizes Scope 1, 2 and 3 of greenhouse gases (GHG). This graphic provides an overview of GHG protocol scopes and emissions. Although this doesn’t encompass all scopes it helps to set the stage for the rest of this blog.
As you can see, GHG emissions are classified as:
- Scope 1: Direct emissions caused by a company through operation of the things it owns.
- Scope 2: Indirect emissions created by the production of the energy that an organization buys.
- Scope 3: Indirect emissions produced by the consumers of a company's products or produced by suppliers making products the company uses.
Scope 3 is almost always the largest of the three, yet the most difficult to control.