Data has become more essential than ever in businesses, especially as companies shift toward eco-friendly models. However, this greater dependence on data also brings various risks, such as data loss and theft. To meet environmental, social, and governance (ESG) goals and sustainability targets, it’s crucial to have strong data backup strategies in place. Thus, organizations should not overlook the need of data backup even as they give increasing focus on these investment ideas.

Effective data backup solutions stop data loss and promote the ESG performance and sustainability of a company in the data-driven environment of today. This article discusses the role of data backup on ESG and sustainability to assist you in harnessing its benefits in achieving your ESG goals.

What is the Role of Data Backup in ESG (Environmental, Social, Corporate Governance)?

ESG (Environmental, Social, and Corporate Governance) is a framework for evaluating a company’s sustainability and ethical impact. It is a model that allows firms to recognize and evaluate the non-financial hazards and opportunities resulting from daily corporate activities. However, attaining ESG and sustainability depends critically on data backup. In the following sections, we will explore its role in each vital area.

Protecting the Environment through Efficient Data Storage

Data centers and IT systems consume much energy, contributing to an organization’s carbon footprint. However, you can reduce this environmental impact using backup solutions that help to optimize energy use in several ways:

• Energy Efficiency

Efficient backup strategies can minimize the data used, leading to a smaller environmental footprint. Moreover, modern data backup solutions centers employ energy-efficient data tools, such as cloud storage, that use renewable energy. Thus, using these advanced tools also helps to reduce your overall carbon footprint instead of using inefficient methods. Offline storage media, such as magnetic tape and external hard drives, reduce energy use by storing data inactively.

• Efficient Resource Management

Regular data backup can help an organization optimize its data storage practices, allowing it to use resources more efficiently. This includes avoiding redundancy by only storing necessary data and discarding outdated storage practices that consume excessive energy and materials.

• Reduction in Physical Storage Need

Traditional storage methods, such as paper records, take up physical space and materials, leading to deforestation, increased waste, and inefficiency. However, with modern data backup solutions, organizations can reduce the need for physical storage, reduce waste, and conserve natural resources.

• Disaster Recovery

Backing up your data will ensure quick recovery without needing extensive physical resources in the event of a natural disaster or other environmental impact that could lead to data loss. When such events happen, an organization can minimize downtime and the environmental costs of starting from scratch due to data loss.

Enhancing Social Responsibility through Data Backup

Data backup plays a major role in fulfilling an organization’s social responsibility:

• Protection of Sensitive Information

Sensitive information must be protected and safeguarded. Thus, when organizations collect and store sensitive information, including customers’ and employees’ data, they must ensure privacy and security. Using efficient data backups that employ high-standard security solutions ensures maximum protection for such sensitive information, fostering customer trust.

• Regulatory Compliance

When your organization performs regular data backups, it complies with legal and regulatory requirements. Thus, data backup solutions help organizations adhere to data regulations and standards, enabling them to perform their social responsibilities and ensure data integrity.

• Stakeholder Trust

Generally speaking, stakeholders such as partners, customers, workers, and investors want to collaborate with and support an organization prioritizing data security. Therefore, you gain the trust of stakeholders when you use backups to guarantee the availability and integrity of data. Also, a robust backup solution will ensure immediate business continuity after a data disaster, fostering and maintaining trust with stakeholders, especially customers.

• Positive Social Impact

Companies can make positive social impacts when they back up data to protect their digital assets. Many modern businesses operate with these digital assets, including information. Thus, data backup indirectly supports employment and economic stability, which leads to a positive social impact.

Strengthening Corporate Governance through Data Backup

Data backup also plays a crucial role in strengthening an organization’s corporate governance. By implementing robust data backup strategies, organizations can:

• Regulatory Compliance

Many industries are subject to strict data protection that mandates regular backups. Compliance with these regulations shows good governance practices, helping to avoid legal penalties.

• Risk Management

By safeguarding an organization’s data from possible loss brought on by hardware failures, human mistakes, cyberattacks, or natural disasters, data backup solutions assist to control data risk. This is absolutely important since these events can seriously damage the company’s reputation and cause operational slowdown in the lack of a trustworthy backup plan. However, with a robust backup system, you can ensure quick data recovery, preventing loss of customer trust.

• Accountability and Transparency

Consistent data backup practices enhance transparency and accountability. They ensure that accurate records are available for audits, reporting, and stakeholder communications, which is vital for maintaining trust.

• Ethical Data Management

Data backup supports the ethical handling of data, which aligns with the governance principle of integrity and ethical conduct. As a result, an organization can showcase its commitment to protecting stakeholders’ information and ensuring proper data security.

• Decision-Making

An organization can access accurate and complete data with a reliable backup system when needed. Thus, you can make strategic decisions backed by correct information.

How Does Data Backup Foster Sustainability?

Data plays a crucial role in any organization, so data backup enables its sustainability by ensuring continuity, security, and efficiency. The following are some significant ways that data backup supports organizational sustainability:

• Quick Disaster Recovery

Backing up the data of a firm helps to stop human error, cyberattacks, or data loss during natural disasters. Having a good backup plan and disaster recovery strategy guarantees swift recovery in case of data loss, so reducing downtime and ensuring business operations carry on fast.

• Data Security

Preserving data in its original form is crucial, and regular data ensures that you can always restore data to the state it was before a cyber attack or disaster. Thus, an organization can always preserve data integrity and prevent unauthorized alterations.

• Cost Efficiency

Data loss can incur a significant loss for an organization, including lost revenue, legal fees, and damage to reputation. However, backup solutions prevent such loss by enabling quick recovery and optimizing data use and management, leading to long-term cost savings.

• Reputation Management

Improper data management can ruin an organization’s reputation during situations like a data breach or significant downtime after a data disaster. However, with robust data solutions, you can manage your reputation by fostering trust among customers and stakeholders. Quick data recovery also shows that an organization is reliable and trustworthy, ensuring sustainability.

• Operational Efficiency

Regular backups guarantee that data is constantly accessible for the operational requirements of an organization—that is, for analytics, reporting, and decision-making. It also lessens the effects of data loss on a company’s operations so that staff members may continue to be productive long after a data disaster.

Conclusion

Data backup plays a crucial role in ESG. Therefore, it has to be given great attention to guarantee responsible social and environmental effect, the improvement of corporate governance, and a sustainable company environment. Giving data backup top priority in your environmental, social, and governance (ESG) and sustainability plans can assist in safeguarding data assets and support the development of a more ecologically friendly digital future.

Storware places great importance on sustainability. That’s why we’re happy that the technology solutions we create support these values. Learn more from our other articles:

• Backup Under the Sign of Sustainable Development
• Server Virtualization: A Game-Changer For Green IT

Backup and DR solutions are generally not associated with sustainable development. However, in the changing landscape of data protection, “green skills” that combine technological awareness with technical knowledge will become increasingly important.

The price of the solution, functionality, efficiency (measured by RTO and RPO indicators), functionality or relations with suppliers are the most common factors that determine the choice of a backup tool. So far, a small group of customers attach importance to energy efficiency, although creating backups and disaster recovery processes can have an impact on electricity bills. It is not excluded that with rising energy prices, as well as new directives such as the CSRD (Corporate Sustainability Reporting Directive), entrepreneurs will start to pay more attention to this factor.

According to Moor Insights & Strategy, by 2025 data centers will consume over 3% of electricity. On the other hand, storage accounts for 30% of the total energy consumption of data centers. This coefficient is likely to increase. Managing and storing constantly growing data and the associated processes of starting storage systems, migrating resources, creating backups, replicating or ensuring a safe and functional environment require more and more electricity.

IT departments are under constant pressure from management, employees, and consumers who are making increasing demands on system performance, their security, and cost reduction. As if that weren’t enough, in the coming years there will be another challenge. Under the CSRD (Corporate Sustainability Reporting Directive), around 50,000 European companies will be obliged to report on sustainable development. This will also indirectly affect the functioning of IT units. Sustainable development in the case of IT is not only about using less energy, especially when it comes to its use in server rooms, but also about designing a more thoughtful infrastructure and rational data management.

Less data, less energy

A lot of unnecessary data lies on the disks of computers or smartphones – old photos, paid bills, never used recipes or emails from a few years ago. The same is true for corporate resources. On NAS servers, there is a lot of completely useless data that is often replicated. While for consumers, the mess on disks does not have a major impact on the household budget, for business users it can lead to a significant increase in costs. Organizations that want more sustainable data storage must be aware that there are costs associated with this, and the transition to new systems and operations can be difficult. However, with careful planning, some of the obstacles can be avoided or at least mitigated.

Energy-intensive tasks such as storage and backup significantly increase energy consumption, but the value of this data – especially in the case of older or “dark” data – can be negligible. They also have a negative impact on the natural environment. A classic example is video files. It is estimated that they are responsible for 70% of CO2 emissions generated by data centers. It often happens that a large broadcaster stores over a hundred versions of the same episode of a series on its servers, although it would be enough to limit this number to a dozen or so. Meanwhile, long-available deduplication and compression techniques help to clean up the server room of unnecessary data. These methods eliminate redundant or duplicate data, reducing storage requirements and increasing overall system performance. Minimizing the data footprint saves costs, shortens backup and recovery times, and reduces energy consumption. Everything indicates that deduplication and compression technologies will likely play a significant role in sustainable digital information storage practices.

However, in order to see irregularities and then put things in order, you need to have insight into data and storage environments. With greater visibility, organizations can make informed decisions about deleting or archiving unnecessary data, archiving it to the cloud or to tape. Pure Storage introduced a sustainability assessment function to its offer less than two years ago, which controls the level of energy consumption and carbon dioxide emissions by the disk array, and then recommends how to reduce both coefficients.

It is worth noting, however, that according to IDC, about 90% of carriers in data centers are hard drives. Their manufacturers also have their own arguments for energy efficiency and sustainable development. For example, specialists from Western Digital recommend that in the case of HDDs, the entire life cycle of the carrier should be assessed. Although from the point of view of I/O, flash memory is more energy-efficient than mechanical disks, although much more energy is needed to produce SSDs than in the case of HDDs. In addition, interesting solutions are appearing on the market that allow you to limit the energy consumption of mechanical disks. One such example is a product offered by the Estonian startup Leila Storage.

While some manufacturers, such as Pure Storage, are announcing the imminent end of mechanical disks. that even by 2026. However, this is an unlikely scenario. Leil Storage is trying to prove that HDD users can also save a lot of energy and reduce carbon dioxide emissions into the atmosphere.

Collaboration Between Storware and Leil Storage

According to the Estonian startup, companies often make the mistake of assuming that erasure coding, media recycling, tape longevity, or 50% compression will achieve sustainable development goals. However, it is not that simple. Therefore, Leil Storage offers a shortcut, providing its own backup and archive storage systems, available in three versions: standard (maximum capacity 1.5 PB), advanced (9 PB), and enterprise green (up to 15 PB). Leil Storage uses 28TB UltraSMR disks manufactured by Western Digital.

This choice is not accidental. SMR disks are currently only used by hyperscalers. Unlike universal models with CMR recording technology, data is not written to magnetic tracks located next to each other on a single platter, but overlaps. This design allows you to fit 30% more data on the same area as with CMR media. Additionally, an SMR disk consumes the same amount of energy as a CMR disk, which translates to greater energy efficiency per 1TB of disk space (Leil Storage estimates it to be around 18%).

The startup will introduce a special ICE (Infinite Cold Engine) module this summer, which will cut power to unused disks. According to Leil Storage’s analysis, this will allow for a 43% reduction in energy consumption compared to a classic disk array. The startup predicts that as ICE evolves, savings will increase to 50% in 2025 and even 70% in 2026.

Leil Storage devices are currently compatible with products from companies like Acronis, Cohesity, and Rubrik. Recently, the Estonian startup began work on integrating its product with Storware software.