Introduction
A growing number of data centers are addressing their Scope 1(direct emissions, like diffused gas coming from the operation of a data center's equipment) and Scope 2(purchased energy, like the emissions generated by the power acquired by the data center from the electrical grid) emissions with renewable energy sources such as solar, wind, and geothermal. As this happens, Scope 3 has become the largest contributor to data center greenhouse gas emissions. However, the quantification and reporting of scope 3 is a huge challenge for data center operators. It is equally important to determine the amount of carbon hidden within data centers and identify major contributors to emissions.
How to Define Scope 3 Emissions?
Scope 3 emissions include: purchased goods and services (for example, the manufacture, transportation and disposal of various equipment and material components required for the construction of data centers); Capital goods (e.g., computers, electrical systems, cooling systems); Business travel (flights, trains, rental cars, hotels, etc.); Employee commuting (car, bus, etc.); And waste management (e-waste, batteries) in the value chain of the data center organization.
In essence, these emissions are those that occur in an organization's value chain but are outside the organization's purview - emissions generated by partners and suppliers and activities unrelated to its direct operations.
You Can't Fix What You Can't Measure
The Science Based Targets initiative says that Scope 3 target boundaries should include most value chain emissions, e.g., two-thirds of the total emissions from the top three source categories or Scope 3. However, organizations in the early stages of a Scope 3 journey sometimes misreport easily available data, such as business travel and employee commuting. These emissions typically represent only a small fraction of the total emissions of Scope 3, leading to the misconception that Scope 3 represents only a small fraction of an organization's total carbon footprint.
The quantification and reporting of scope 3 is a huge challenge for data center operators. Gathering the necessary data is a major obstacle, as it requires reliable quantitative tools and transparency from partners and suppliers. In the United States, disclosure of scope 3 emissions is still voluntary. But that is changing fast.
In a recent white paper, Schneider Electric broke down its carbon footprint by scope, greenhouse gas source category, life cycle stage, and data center subsystem to identify the largest sources of emissions. This report takes the GHG Agreement's High-level 9 category, standardizes the Scope 3 framework, and breaks IT down into more granular categories applicable to IT reporting. This will help the company determine the scope-3 emissions for all of its IT operations.
Things are changing in Europe. The new Corporate Sustainability Reporting Directive (CSRD) came into force on January 5 last year. CSRD's sustainability reporting obligations cover a wide range of companies, requiring Scope 3 reporting and digital labeling of sustainability information to facilitate auditing and comparison.
What Actions Could Be Done to Reduce Scope 3 Emissions?
Sustainable Supply Chain
Data centers should prioritize suppliers with robust sustainability practices and encourage the adoption of eco-friendly processes within the supply chain. A significant portion of Scope 3 emissions in data centers originates from the manufacturing and transportation of IT equipment. Collaborating with environmentally conscious suppliers helps minimize the carbon footprint associated with the production and delivery of hardware. This not only reduces emissions but also fosters a sustainable and responsible supply chain ecosystem.
Renewable Energy Procurement
This is an important means of reducing emissions from Scope 3 greenhouse gas Category 3 - fuel and energy-related activities. Data centers should prioritize the procurement of renewable energy to power their operations, transitioning away from fossil fuel-based electricity sources. Energy consumption is a major contributor to Scope 3 emissions. Shifting to renewable energy sources, such as wind or solar power, significantly reduces the carbon intensity of a data center's operations.
Circular Economy Practices
The disposal of electronic waste contributes to Scope 3 emissions. By extending the life of IT equipment through upgrades, refurbishment, or repurposing, data centers can minimize the environmental impact of manufacturing new hardware and reduce the carbon footprint associated with waste management. This is an effective way for data center operators to minimize their environmental impact. Research from Serverfarm shows that "modernizing data centers, while expanding capacity while reusing existing buildings and infrastructure, can achieve an 88 percent carbon reduction compared to the material carbon cost of new projects."
Data Center Efficiency Optimization
Data center efficiency directly impacts energy consumption and, consequently, Scope 3 emissions. Implement DCIM tools for comprehensive monitoring and management of both IT and facility aspects. This includes real-time monitoring of power usage, cooling efficiency, and IT equipment performance.
Conclusion
In the age of sustainability, data center operators are proactively addressing the challenge of Scope 3 emissions to mitigate their environmental impact by adopting renewable energy, optimizing energy use, and implementing supply chain sustainability. Despite the challenges posed by quantifying and reporting Scope 3 emissions, it is this transparency that has prompted the industry to be more proactive in finding innovative solutions. It cannot be overlooked that addressing Scope 3 emissions will require global collaboration and industry efforts.
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