All About the New ITIL 4 Sustainability in Digital and IT Publication, Course, and Exam

To say that ITIL 4 has elevated the IT profession well beyond the technical domain is an understatement.  This path of professional enlightenment continues with one of Axelos’ latest publications, “Sustainability in Digital and IT.” (SDIT, you are going to see this acronym a lot so please take note.)  And it is long overdue!  For the first time, the ITIL framework directly addresses how IT impacts the environment and larger ecosytem and how digital technology can improve your organization’s sustainability.  Once siloed within the Corporate Social Responsibility Office, Sustainability (which includes environmental stewardship as well economic and social development) is now everybody’s responsibility.  According to a Harvard Business Review survey, 99% of CEOs believe “sustainability issues are important to the future success of their businesses.”

In this article, we discuss ITIL 4’s new “Sustainability in Digital and IT” publication – its content, structure, and the associated exam.  We also learn some key concepts along the way, including the impact of digital transformation (both good and bad) on sustainability.  We will conclude with some practical tips your organization (Yes, that means you, too, CIO) can take to enhance its sustainability.  In “Sustainability in Digital and IT,” lead editor, Antonina Klentsova, lead architect, Mattie Yeta, and author, Deborah Albers, make the case that doing well and doing good are not mutually exclusive – in fact, these days organizations need to do both to be successful over the long-term.  This is especially true when you consider that today’s consumers are arguably younger, wealthier, and better informed than in past generations.  And, according to Forbes, they are four to six times more likely to purchase from a company that pursues a higher purpose.  This is not just a moment.  This is the future. You heard that right, even if you are not personally concerned about sustainability issues such as environmental change, responsible sourcing, and fair working practices, there is a good chance that your consumers care, and that impacts the bottom line.

Sustainability matters

Once upon a time – not very long ago in fact – Sustainability was not a topic mentioned seriously in many for-profit boardrooms.  At best, the annual report might devote a few well-intentioned words to “green initiatives” or “fair labor” practices without any substantive details.  In certain industries such as Energy and Mining, “Sustainability” often meant “Compliance” with State, Federal, and international laws and standards regarding safety and stewardship of finite natural resources.  In other organizations, “Sustainability” languished under the purview of the Corporate Social Responsibility Office and was synonymous with any charitable donation of time, money, or resources.  To be clear, financial contributions to the local homeless shelter or youth group are needed more than ever; but they are not the same as Sustainability.

Times are changing.  Consider this: since 2020, BP has committed to becoming a net-zero carbon company by 2050, performs annual materiality assessments (more on this later), and tracks its progress on this and other sustainability issues on a dashboard that is publicly accessible. Nestle, through its Nestle Cocoa Plan is committed to addressing the issues of child labor, primarily in rural Western Africa.  My own alma mater, Johns Hopkins University, has the largest transportation fleet of buses, shuttles, cars, and other vehicles in Maryland aside from the State itself.  In Johns Hopkins University’s Sustainability Plan, improving transportation is prominent and is addressed through a variety of mechanisms including electric vehicles, smarter shuttle routes, and even commuter incentive programs.  Even the Entertainment Industry has started to pay attention.  Recently, the super hot k-pop band, BTS, announced it would issue and sell non-fungible tokens, NFTs, (anybody who can explain these to me earns a free compliment) . . . only to be greeted with a major backlash.  (Their management company refused to back down . . . but we’ll see how long that lasts).

So what happened over the last few years?  Did governments around the world start to crack down on sustainability compliance?  Did companies suddenly run out of raw materials?  Or did the hearts of corporate investors, much like the fabled Grinch’s, “grow three times” at the sight of a sustainable Whoville?  While I would like to believe in the latter, the trophy, in this case, goes to the consumer!  There’s nothing new about consumers demanding high quality services and products (and on my doorstep within two days, thank you very much).  However, these days consumers also want to feel good about their purchase.  They want to know that their purchase did minimal or no harm to the environment, was not produced by forced labor or in a “sweat shop,” and that the producer or service provider understands the “big picture” and is doing something meaningful and good for the world.

In short, issues that used to be addressed on the margins as short-term checklists and “nice to dos” are now being woven into the very fabric of the organizational ecosystem and considered critical to long-term success.

The role of IT

If Sustainability is good for the business, what exactly is the role of IT?  Some obvious things come to mind.  For example, over the past five to ten years, many organizations have drastically reduced their print output due to improved technologies that make digitizing paper documents simple and storage inexpensive.  In order to control energy costs, many organizations have investigated ways to more efficiently cool data centers; and using less energy has an environmental benefit.  Even moving to the cloud may be more energy efficient and carbon neutral than traditional data centers. Most recently, over the past couple of years, collaboration technologies have allowed many employees to continue to work from home, which reduces pollution due to commuting.  But this is just skimming the surface with now-routine use cases.  Digital technology adds an entirely new dimension to the conversation. Fully digitized organizations have the opportunity to use digital technology to mass-produce one-time-use consumer products and contribute to waste.  Or they can use technology to track their own emissions and curb waste.

World Economic Forum: Amount of e-Waste Generated each Year

It is usually more of a “both . . . and” scenario.  Take cryptocurrency as one example.  On one hand, each cryptocurrency transaction requires an enormous amount of energy.  At the same time, the UN sees cyptocurrency as a potential tool of sustainability since the transparency created by block chain technology helps to combat corruption with monetary exchange in many parts of the world.  In another well-studied example, the very technologies that enable us to communicate without traveling, such as laptops and mobile phones, also contribute to a staggering amount of e-waste when we discard them.  In fact, according to a recent World Economic Forum report, the amount of e-waste produced each year is enough to construct 4,500 replicas of the Eiffel Tower!

Suffice it to say that the modern CIO is no longer just the captain in the technology wheelhouse.  Nor is the CIO merely concerned with using technology to control cost.  Today’s successful CIO understands how technology can further his or her organization’s sustainability goals and realizes the impact to the financial bottom line.

Sustainability defined

What exactly is “Sustainability?”  SDIT defines it this way:

Let us dissect this definition.  First of all, Sustainability is a “business approach.”  What is meant by that?  Several notions come to mind.  All businesses are intentional, organized, and involve relationships and systems.  In order for sustainable actions to have meaningful impact, they must also be planned and implemented in a systemic, logical, and persistent way.

United Nations Sustainable Development Goals 2015

Second, Sustainability is focused on creating long-term value.  This is a key part of the definition.  While some organizations are able to turn short-term profit, it is sometimes at the expense of the long-term interest of the communities in which they operate, detrimental to long-term health of the planet, and even potentially sacrifices the long-term success of their own company.  This publication suggests that short-term and long-term goals should be balanced and that, over the long-term, sustainable organizations tend to be more successful.

Third, Sustainability addresses “economic, environmental, and social development.”  In other words, although some people equate “sustainability” with environmental stewardship, it is much broader and includes other domains such as social justice, fair labor, responsible sourcing, and anti-corruption, to name a few.

In fact, SDIT suggests that organizations consider the United Nations Sustainable Development Goals (SDGs), crafted in 2015, as a starting point and reference when developing their own Sustainability Vision, Strategy, Plans, and Metrics.

Topics covered and key messages of SDIT

At its core, SDIT grafts core concepts from the expansive Sustainability domain onto the ITIL 4 Framework, and they complement each other in a balanced ecosystem.  Additionally, SDIT draws on some of the insight offered by the “Digital and IT Strategy” publication with reference to digital strategy and technology.  Using the UN SDGs as a recurring reference, other high-level topics covered in SDIT include:

• Applying the seven ITIL guiding principles to create sustainable digitally-enabled products and services
• Navigating Volatility Uncertainty Complexity and Ambiguity (VUCA) challenges using sustainable strategies, procurement and responsible sourcing, products, and practices.
• Obtaining a practical grounding in the key principles of sustainability
  

  The ITIL Service Value System

Conducting cost-benefit analysis, identifying risks and opportunities, and using best practice guidance.

SDIT also applies other ITIL 4 concepts, such as the Four Dimensions of Service Management and the Service Value System, to Sustainability.  In fact, although it is not specifically stated, one could easily imagine Sustainability as another component of an organization’s service value system (i.e., business model).  Perhaps more accurately, Sustainability should be embedded into each element of an organization’s business model.

This brings up a good point.  If you paused on the phrases “Four Dimensions of Service Management” and “Service Value System,” fear not!  You do not need to take an ITIL 4 Foundation class prior to reading SDIT.  Even if you are unfamiliar with these concepts, the SDIT publication provides ample concept review pages and definitions to bring you up to speed.  However, if you have taken any ITIL 4 courses (especially ITIL 4 Foundation, Digital and IT Strategy, and Direct, Plan, and Improve), you will appreciate SDIT even more.

The structure of SDIT

ITIL Seven Step Continual Improvement Model

Let us take a deeper dive into the structure of SDIT and what is covered in each chapter.  Aside from the first chapter, SDIT is framed using the ITIL seven-step Continual Improvement Model.  This is not surprising since the model has been a stalwart approach since ITIL v3 and is the structure used for other ITIL 4 publications, including “Digital and IT Strategy.”  Starting in Chapter 2, each chapter discusses improving an organization’s sustainability using the steps of the Continual Improvement Model as a guide.  For example, Chapter 2 covers the first step of the Continual Improvement Model and asks “What Is the Vision?”  The chapter focuses on how to create consensus around a sustainability vision that works for your own organization and is consistent with the culture and values your organization has now or would like to develop.

The Table below provides more information regarding each chapter of the publication as well as some of the key topics covered.

The Table below provides more information regarding each chapter of the publication as well as some of the key topics covered.

Key concepts

It would be impractical to explore all the above content in a short article.  However, let us delve into a few of the deeply rooted concepts.

The triple bottom line

The Triple Bottom Line

One of the foundational concepts is the Triple Bottom Line.  Many people use the phrase, the “bottom line,” in the context of something that impacts the financial position of their organization.  The Triple Bottom Line states that the financial or “economic” bottom line is just one area with which the organization should be concerned.  An organization should devote equal attention to the “environmental” and “social” bottom lines.  In other words, when an organization makes a decision, takes an action, or produces a product or service it should not only be financially viable, but it should also profit the natural environment and improve (or at least not harm) people and communities.  In this article, McKinsey talks about why it is necessary for organizations to “do well by doing good.”  The Triple Bottom Line is not a new concept – indeed, as a professor of nonprofit management, I have been teaching this to my graduate students for more than fifteen years, and the concept predates that.  In my estimation, it is the most important concept since, absent a profit motivation, many organizations would not prioritize the other bottom lines.  The Tripe Bottom Line does not say that organizations should care about economic and social bottom lines; it says that they must. At points in history, doing well from a financial perspective and doing “good” for the world were pit at odds with each other in a zero-sum, “I-win-you-lose” proposition.  At some point, the philosophy evolved to consider that, on some occasions, a win-win scenario could be achieved where financial profitability and social responsibility could co-exist.  Now, the general thinking is that not only can the two co-exist in a commensal relationship but, in fact, financial profitability is often dependent on sustainability and vice versa.

The circular business model and circular economy

Directly related to The Triple Bottom Line concept, a circular business model “describes an organization that earns value for stakeholders while simultaneously minimizing ecological and social costs by contributing to a circular economy.”   A circular economy is based on:

• Eliminating waste and pollution
• Keeping products and materials in use
• Regenerating natural systems

The Circular Economy

Briefly put, a circular economy maximizes value while minimizing waste.  Typically, the latter is accomplished by reducing the amount of raw materials or energy used in production, reusing materials, or recycling them.  For example, one of my favorite small businesses uses decades-old Japanese kimono fabric and “up-cycles” it by creating bow ties, pocket squares, and other haberdashery items.  And for the consumer, it’s not only sustainable, it’s also vintage and very cool (well, if you’re into bow ties).  On a larger scale, SDIT uses the example of Dell, which started a program in 2014 to build computers out of recycled materials.  They reached out to consumers to collect raw materials (plastic, metal, etc.) from salvaged computers and controlled the process to melt and reconfigure these raw materials into new computers.  The Ellen MacArthur Foundation produced a short and entertaining video that provides other examples of the circular economy.

The Circular Business Model and Circular Economy Concepts remind me a lot of the thinking that goes into Lean, which focuses on minimizing waste.  In this way, it dovetails nicely with concepts introduced in ITIL 4 like value stream mapping.

The materiality assessment

A third useful concept is that of the Materiality Assessment.  SDIT defines the Materiality Assessment as “the process of identifying and assessing potential Environmental, Social, and Governance (ESG) issues that affect the business and the stakeholders.” When an organization can determine the most important sustainability issues, it can better understand impact opportunities, address risk, engage stakeholders around issues they care about, and weave sustainability into larger business strategy.  In essence, the Materiality Assessment helps organizations determine where they can have an impact and how they should prioritize sustainability issues.  Without an assessment, there is a good chance the organization might focus on sustainability issues that do not resonnate with stakeholders or issues where the organization would not have great impact.  Here is an example of a materiality assessment from Syngenta Group, which, in its own words “transform[s] agriculture through tailor-made solutions for the benefit of farmers, society and our planet . . .”

UN Materiality Assessment

Audience

The SDIT course is designed for anybody who concerned about the intersection of technology, digital transformation, and Sustainability.  The CEO, CIO, Chief Digital Officer, and other senior business and IT leaders should be at the top of the list.  These are the roles that have the authority to make decisions and that can most strongly influence the direction and culture of the organization.

Prerequisites needed to take course and exam

In short, there are no prerequisites nor is any prior knowledge needed to take the course.  As you can see in the certification scheme graphic below, SDIT exists separately and outside of the familiar Managing Professional (MP) and Strategic Leader (SL) tracks. This is a great way for leaders, both those in IT and those working outside of IT, to get strategy-focused and unbiased guidance on Sustainability and an understanding of how ITIL concepts support the wider business.

ITIL 4 Certification Path and Extension Modules

The exam

Taking the SDIT course is required to sit for the exam. The exam consists of thirty-five multiple choice questions and is closed book.  Candidates have sixty minutes to complete the exam.  Additionally, the course includes a case study that presents two fictional organizations.  During the course, candidates must complete four practical assignments.  Much like in the Digital and IT Strategy course, the instructor grades each of the practical assignments.

Suggestions for your organization’s

When it comes to the sustainability journey, one size does not fit all.  To a large extent, your organization’s ability to foster positive changes depends on its size, the industries in which it competes, its history and culture, and what matters to its internal and external stakeholders.  Much like when you plan to launch a new product or service, a good place to start is to think about what matters to your consumers, what matters to your key stakeholders (e.g., investors, regulators, etc.), and what matters to your employees.  Then, estimate what position you are in to influence these issues or make a difference.  There are many great suggestions that appear in SDIT, and it must be emphasized that a variety of actions should be taken in concert to have the greatest impact.  Here are ten of my own:

1. Consider whether products you create can be re-used by secondary consumers or recycled/up-cycled.
2. Determine which tools and technologies are needed to track progress on organizational sustainability goals. Can this be accomplished using an enterprise ITSM platform?  Or will a more specialized tool be required?
3. Map value streams for key processes and process intersections. Removing wasteful steps in a value stream often leads to both efficiency gains and reductions in other forms of physical waste and e-waste.
4. Include measurable sustainability metrics when developing other IT metrics and key performance indicators.
5. Improve your IT asset register of equipment inventory and your configuration management database. Both inform decisions regarding IT assets and configuration items, especially when it comes to planned obsolescence and fleet replacement of equipment.  Not only could this help you curb e-waste, but it could also help reduce cost.
6. Consider whether aging computer equipment can be securely donated to local schools or nonprofit organizations. (Of course, first check with your Chief Information Security Officer to determine whether this is feasible.)
7. When budgets allow, give employees paid time off to volunteer with charitable organizations. Some organizations specify which nonprofit organizations are acceptable for volunteering.  You are likely to experience greater success when you leave the choice up to your employees.  Just make sure the organization is registered as a 501(c)(3) organization with the IRS or as a non-stock corporation within your state (or the equivalent if you are outside of the United States).
8. Encourage employees to serve on local nonprofit boards (especially with nonprofits that directly address sustainability issues).
9. Match or partially match employee donations to 501(c)(3) nonprofit organizations.
10. The Corporate Social Responsibility campaigns that gain the most traction (and also earn the most goodwill and financial return for the organization) are those closely aligned with the mission, products, and services of the organization.  For example, a paper company that supports renewable forestry nonprofits is more likely to be thought of in a favorable way by consumers than if it were to support a seemingly unrelated cause.