CIOs report direct commercial benefits from environmental software

The wide majority of Chief Information Officers (CIOs) have realised direct financial benefits from investing in software to tackle environmental impacts, suggesting sustainability tech is a worthwhile investment.

This is according to a Logicalis survey of 1,000 CIOs globally, where 91% reported direct commercial benefits from ESG tech investments – particularly those helping to improve energy efficiency and reduce carbon emissions.

CIOs are responsible for all enterprise technology, and most (93%) have a mandate to reduce the emissions of their companies’ IT infrastructure – a topic that is coming to the fore with the rise of power-hungry AI.

In fact, 94% of CIOs view IT as core to the success of their organisations’ environmental goals, and 95% say their organisation is increasing their investment in environmental sustainability initiatives and/or technologies.

Types of technology investments

Unsurprisingly, artificial intelligence (AI - 95%), machine learning (93%), and Internet of Things (IoT - 89%) solutions were among the most widely adopted emerging technologies  by CIOs in the survey over the past 12 months. 

When asked about the expected outcomes of their investments in next generation technologies, reducing environmental impacts was cited by 31% of those investing in quantum computing, 31% for machine learning, 30% for AI and 29% for blockchain.

CIOs’ top five priorities for assessing ESG software investments are energy efficiency (46%), environmental impact (44%), impact on corporate responsibility (37%), carbon reduction (36%), and customer engagement (34%).

Expanding CIO responsibilities

The survey also revealed that the CIO’s remit is expanding, from focusing on enablement to shaping business strategy. Nearly all CIOs report to their board on return on investment, and 85% say they face growing pressure for technology to demonstrate tangible business impact.

Bob Bailkoski, Global CEO of Logicalis Group said: “For almost every business, technology has become the primary engine of innovation, growth and resilience. With this dependence comes a new expectation of CIOs, they’re no longer just enablers of business strategy but drivers of commercial success. Whether through maintaining a keener focus on ROI from next-generation technologies, optimising security spending or maximising the financial benefits of sustainability initiatives, technology leaders need to seek out the right investments and partnerships that can help them deliver on their business goals.”

However, a majority (64%) acknowledge that their investments in the next-generation technologies cited above have yet to deliver anticipated returns.