Fintech and electronic banking services are godsends of the modern era. Never has it been easier for money to change hands. Nearly 369 billion purchases are made every day, many of which happen on electronic platforms. But behind every transaction lies a hidden fee: carbon emissions. Climate change is a price the whole world pays for our modern conveniences, and it’s only getting higher with time.
Finance industry consumers know the importance of sustainability. 1 in 3 consumers would pay more for sustainable services, and roughly 85% of the globe has shifted its purchasing behavior towards sustainability in the past 5 years. Many of these changes are incremental, but they represent an emerging trend. As climate change becomes more dire, so too are the actions people are willing to take to mitigate it. 99% of CEOs agree that sustainability initiatives are crucial to their long term success, but many aren’t sure how to actually cause change.
Cloud computing could start the solution. Here are 3 major ways that the cloud reduces greenhouse gas emissions. First: cloud data centers are more energy efficient than on-premise ones. They’re able to perform the same services using less power. Second: the cloud replaces physical machines with their virtual equivalents, reducing the carbon they would have emitted. Third: dematerialization lowers the consumption of resources. Cloud services let people do more with fewer electronic devices, thereby reducing e-waste. Mass migration to cloud services can reduce global carbon emissions by 59 million metric tons every year. That’s equivalent to taking 22 million cars off the road!
Cloud data centers can also be located anywhere in the world. If data centers tap into a clean energy grid, they increase their emission savings. Google uses geography to their advantage as they work towards 24/7 green energy by 2030.