As 2025 draws to a close, the information technology (IT) sector finds itself at a pivotal moment in its approach to sustainability. This year has seen a transformation from viewing sustainability as a strategic differentiator to recognizing it as an operational and regulatory necessity. The rapid growth of artificial intelligence (AI) has significantly influenced this shift, compelling businesses to confront the complexities of data management, supply chain realities, and energy consumption.
The transition is stark: what began as aspirational goals now faces the reality of binding regulations. IT sustainability has evolved into a core aspect of business continuity, entwined with geopolitical supply chain risks and mandatory financial disclosures. This evolution signals a significant shift in focus, where discussions of sustainability have moved from reputational benefits to accountability driven by impending regulations and potential financial penalties.
Regulatory Pressures Elevate Sustainability to Executive Level
Throughout 2025, the dialogue surrounding sustainability has risen to the level of executive committees, largely due to impending regulations and a growing awareness that environmental failures could result in direct, measurable financial consequences. A year ago, businesses discussed sustainability in terms of reputational enhancement. Now, acronyms like CSDDD (Corporate Sustainability Due Diligence Directive) and CSRD (Corporate Sustainability Reporting Directive) dominate conversations, indicating a shift toward mandatory compliance.
Chief Information Officers (CIOs) are now faced with two primary challenges. First, energy efficiency has become a critical aspect of operational expenditure management, especially amid fluctuating global energy markets. Second, the surge in energy demand attributed to generative AI has initiated discussions about responsible computing architectures. Companies must now justify AI investments not solely on traditional return on investment (ROI) but also through a newly emerging model focused on “return on compute,” which incorporates carbon expenditures into overall cost assessments.
Despite this high-level engagement, progress remains challenging. IT departments often struggle with the authority to implement change across complex organizational silos, and the necessary budgets for significant transformations are often limited.
Progress Amid Persistent Challenges
While the year has presented obstacles, it has also yielded notable advancements in specific operational areas, offering a partial roadmap for future net-zero initiatives. Three key developments stand out:
1. **Decoupling Cloud Growth from Carbon Emissions**: Major cloud providers have successfully secured renewable energy sources, paving the way for enterprises to optimize their operations. The adoption of advanced liquid cooling technologies is accelerating, primarily in hyperscale environments. Businesses are beginning to optimize workloads for low-carbon regions and adopt serverless architectures, helping to separate cloud expansion from rising emissions.
2. **Advancing the Circular IT Model**: The Managed Device-as-a-Service (MDaaS) model has emerged as a significant environmental contributor. By outsourcing device lifecycles, companies can ensure refurbishment and effective reverse logistics, substantially reducing electronic waste. However, widespread adoption remains limited, and third-party verification of these circular processes is still not robust.
3. **Emergence of Green Software Engineering**: 2025 has witnessed the formal introduction of green software engineering (GSE), shifting focus from hardware to software sustainability. Organizations have begun measuring the energy consumption of code, optimizing algorithms to minimize reliance on resource-heavy computing. The publication of the W3C Web Sustainability Guidelines Draft Note marks a pivotal moment, providing international best practices for reducing the environmental impact of web products.
Despite these advancements, significant gaps persist that could undermine net-zero objectives.
One critical challenge is the measurement and reduction of **Scope 3 emissions**, particularly from purchased goods and end-of-life asset management. Many companies still rely on aggregated supplier data, which is neither auditable nor sufficient for compliance. This lack of detailed product carbon footprints (PCF) from suppliers creates a “Scope 3 plateau,” where targets are set but emissions remain high.
Another pressing issue is the energy consumption associated with **generative AI**. Although AI has potential for sustainability improvements, the energy demands of large language models (LLMs) create an “energy debt” that can negate environmental gains made elsewhere. Organizations are deploying AI solutions without comprehensive policies for model selection and resource management, focusing primarily on achieving initial ROI metrics.
Strategic Focus for 2026 and Beyond
As the IT Sustainability Think Tank prepares for 2026, the emphasis must shift from merely identifying challenges to systematically addressing them with discipline. The advancements in 2025 must be viewed as foundational steps toward achieving sustainability goals. The upcoming year should prioritize gathering granular data, enforcing necessary regulations, and managing the increasing energy consumption associated with technological innovations.
The time for aspirational goals has ended; the focus now must be on ensuring accountability and fostering genuine progress toward a sustainable future in the IT sector.
