Podcast: Sustainable IT – an investment in the future or an expensive image boost?

Last Updated on 27. May 2025 by mgm-marketing

Sustainable IT – an investment in the future or an expensive image boost? This question is currently occupying many companies and IT managers. In the third CIO Advisory debate podcast, Olaf Terhorst and Nils Gralfs from mgm consulting partners engage in a heated discussion about whether green IT is actually a driver of returns or whether it will ultimately fizzle out as nothing more than a PR stunt. They not only highlight ecological aspects such as IT’s contribution to reducing the carbon footprint, but also economic arguments, regulatory challenges and the danger of greenwashing.

The debate shows that sustainable IT is not a new trend, but has long been part of the strategic agenda of many companies – with opportunities and pitfalls. Companies need to weigh up how targeted investments in energy efficiency, modernisation and innovative technologies can strengthen not only the environment and society, but also their own competitiveness. At the same time, real progress can only be achieved through measurable measures and consistent integration into the overall strategy – and not through mere lip service.

In the debate: Olaf Terhorst, Partner at mgm consulting partners, and Nils Gralfs, Senior Manager at mgm consulting partners
Moderator: Karsten Kneese, Marketing Manager, mgm
Length: 36 minutes

Listen to the podcast and join the discussion

The most important points at a glance

Below, we summarise the most important arguments from the podcast and provide recommendations on how sustainable IT can become a real added value for companies.

Pro sustainable/green IT

  • Environmental protection and social responsibility: Due to its high energy consumption, especially in the age of cloud computing and artificial intelligence, the IT industry contributes significantly to global energy demand. Sustainable IT can help reduce the carbon footprint and lower emissions, which makes an important contribution to climate protection.
  • Economic advantages: Investments in energy-efficient data centres and renewable energies lead to lower operating costs in the long term. Large providers are already investing in their own wind farms or innovative cooling solutions because renewable energies are becoming increasingly cheaper. Every kilowatt hour saved has a direct positive effect on the profit margin.
  • Regulatory requirements and future security: New standards such as ISO 50001 require companies to implement energy management systems that create transparency and identify potential for optimisation. Companies that invest in sustainable IT at an early stage are better prepared for future regulations and can secure their competitiveness.
  • Image and positioning: Sustainable IT can strengthen a company’s image and serve as a differentiator in the market. Customers, partners and investors increasingly expect a credible commitment to sustainability.
  • Innovation potential: The use of waste heat (e.g. for heating offices) or the consistent modernisation of IT landscapes opens up new opportunities for increasing efficiency and reducing costs.

Cons of sustainable/green IT

  • Greenwashing and token measures: In many cases, companies limit themselves to symbolic measures or offsets without making any real changes. This is often used as a PR measure without achieving any substantial improvements.
  • High initial investment and economic efficiency: The switch to sustainable IT requires initial investment, which is difficult to finance, especially for companies with old legacy systems. In some industries, such as banking, decades-old IT structures prevent rapid change.
  • Regulatory complexity and bureaucracy: New reporting requirements and certifications cause additional work. The actual measurement and tracking of CO₂ savings is complex and ties up resources that may be lacking elsewhere.
  • Rebound effect: Efficiency gains are often offset by increased consumption elsewhere, so that the actual savings are lower than expected.
  • Modernisation backlog: Old IT systems often block the introduction of new, sustainable technologies. Without fundamental modernisation, the potential of sustainable IT remains untapped.

Conclusion and recommendations from the podcast

The discussion in the podcast shows that sustainable IT should not be a pure PR tool, but can offer real added value if implemented strategically and with a sense of proportion. Our recommendations:

  • Focus on measurable efficiency gains: Measures should not only aim to improve image, but should also be justified by concrete savings in energy and costs.
  • Integration into the overall strategy: Sustainable IT should be seen as part of continuous modernisation and optimisation, not as a one-off additional measure.
  • Gradual change: Regular updates and the replacement of old systems allow the transition to sustainable IT to take place during ongoing operations.
  • Avoid greenwashing: Companies should strive for real change and not implement mere compensation measures or sham solutions.
  • Use regulatory requirements as an opportunity: Requirements such as energy management systems can be used as leverage to create transparency and implement targeted improvements.

Companies should see sustainable IT as an investment in the future that offers both ecological and economic benefits. It is crucial that measures are credible, economically viable and continuously developed – then sustainable IT can become a real driver of returns.

Further information

Karsten Kneese
Karsten Kneese is responsible for consulting topics in the mgm marketing team. As host of the podcast ‘innovation implemented’, he also makes these topics audible.