Cloud Technology Can Reduce Emissions in Financial Service Industry
Consumers have benefited immensely from the fintech revolution. FInancial transactions are easier than ever before, but that ease comes at a cost. For every financial transaction made, there are often carbon emissions associated with back-end processes making them possible. Due to the increased prominence of climate change issues, sustainability is becoming an important topic for financial industry consumers. 60% are more likely to purchase sustainable services, and roughly 85% of people globally have shifted their general purchasing behavior towards sustainability in the past 5 years.
Cloud computing can be part of the solution. From last year until 2024, transitioning to cloud computing is on track to save at least 629 million metric tons of carbon emissions overall, decreasing total IT emissions by almost 6%. Cloud computing is more energy efficient than traditional data centers. They replace physical machines with virtual ones. Cloud centers even decrease the production of e-waste. Cloud centers reduce the harmful effects of decommissioned servers, networking equipment, and racks in the landfill by diverting 81% of waste.
When green energy powers cloud data centers, the benefits double. Google Cloud is strategically choosing the location of data centers so they can achieve 24/7 carbon-free energy by 2030.