ESG in the Digital Era: Data Centers and the Risk of Greenwashing

6 minutes reading
19/12/25

Environmental awareness is now at the forefront of consumer decisions, which makes the risk of greenwashing increasingly significant, particularly within the field of information technology.

While brands strive to align with Environmental, Social, and Governance (ESG) practices, clients and investors are paying closer attention to issues such as carbon neutrality, with special focus on technologies that effectively reduce emissions.

As global temperatures continue to rise each year and natural resources become scarcer, the details of this equation are critical, demanding a deeper assessment of how organizations should operate.

In this context, transparency and authenticity in sustainability initiatives are vital across all areas, including Data Center operations.

Understanding and navigating the complexities of carbon emissions and sustainability – especially in Data Centers – is not a simple task, but we will help you break down this scenario. Read on:

Understanding Digital Greenwashing

Greenwashing, a term originally coined in English, can be literally interpreted as “green washing.” It refers to deceptive narratives, actions, and campaigns in marketing and technology – partially or entirely – centered on environmental sustainability. Because they are not aligned with reality, such claims cannot withstand practical scrutiny.

This happens because many organizations have recognized the need to position themselves within the ESG context – either due to the relevance of the topic or as a response to regulatory requirements. As a result, they began promoting isolated actions that neither reflected the company’s culture nor rested on a solid foundation.

An example is the launch of a biodegradable product, designed to give the impression of alignment with sustainability trends, but in practice disconnected from the company’s portfolio and holds little weight in overall revenue.

Such initiatives are often developed to improve stakeholder perception of a brand, particularly to attract environmentally conscious consumers and investors. Unfortunately, they can still be observed across a wide range of organizations, including private and public enterprises, non-governmental entities, and even governments.

Today, the term has evolved beyond its original scope, encompassing a broader spectrum of questionable practices that extend well beyond marketing strategies.

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The Importance of Reducing Carbon Emissions

As the world intensifies its focus on addressing climate change, it becomes crucial to unravel the complexities surrounding greenwashing to foster transparency, authenticity, and effective ESG efforts.

Understanding the role of carbon emissions in the atmosphere, which transform into greenhouse gases responsible for climate change, is one of the key steps in truly addressing the challenges of environmental sustainability. While these gases play a role in supporting life on Earth, they become problematic when present in excessive concentrations.

Setting carbon reduction targets is therefore an essential step to mitigate this impact. Such goals demonstrate each organization’s commitment to shrinking its carbon footprint, which is fundamental to aligning with initiatives such as the Paris Agreement, designed to limit global warming.

How to Reduce These Emissions

Among these commitments, the Science Based Targets initiative (SBTi) stands out as a highly effective tool, serving as a reference point to assess the credibility of net-zero pledges. By endorsing targets that meet established standards, SBTi ensures that companies move beyond claims and actively contribute to global efforts against climate change.

It is important to acknowledge, however, that there is no one-size-fits-all path toward environmental sustainability – and this is where caution must be exercised regarding greenwashing. It becomes imperative to distinguish between two strategies: purchasing carbon credits and investing in technologies that generate greenhouse gas emissions.

While acquiring carbon credits provides a way to offset emissions, such measures may fall short of sustainable practices if not combined with investments in technologies capable of actively reducing emissions.

This distinction is vital when navigating sustainability initiatives, underscoring the importance of companies moving beyond symbolic gestures to embrace comprehensive strategies that genuinely contribute to a greener future.

ESG and Transparency in the Digital Market

As companies prioritize sustainability, we are witnessing an increase in the establishment of carbon targets, along with the implementation of consistent ESG policies and dedicated initiatives to put them into practice.

In this context, transparency plays a pivotal role, serving as a safeguard against doubts regarding potential greenwashing practices. It ensures the authenticity of claims related to environmental and social efforts across any type of organization.

However, achieving transparency comes with its own set of challenges. The complexity of the industry, combined with the specific processes of each company, often makes it difficult to obtain clear and verifiable information. This challenge highlights the importance of companies actively seeking and providing data that helps clients and stakeholders distinguish between genuine sustainability efforts and potential cases of digital greenwashing.

When navigating this evolving landscape, transparency goes beyond being a corporate obligation. It becomes an essential element in building trust and guiding the market toward a truly sustainable future.

Bridging the Gap Between Intention and Action

Many companies are recognizing the importance of aligning their operations with the best global practices in sustainability. However, this trend must move beyond intentions: the key lies in translating aspirations into concrete actions, setting specific and measurable goals.

This requires going beyond superficial commitments and adopting initiatives that actively contribute to ESG objectives. Such a premise ensures that, particularly within the IT sector and among Data Center managers, companies can move beyond rhetoric, effectively addressing the social impacts of their activities and countering greenwashing.

Here, fostering transparency through the proactive disclosure of clear information on corporate performance becomes a cornerstone of this effort.

By doing so, service providers not only build stronger trust with stakeholders but also actively counter situations where claims might otherwise exceed actual environmental and social contributions.


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Avoiding Greenwashing in Data Center Practices

To steer clear of greenwashing, it is essential that Data Center managers adopt a genuinely sustainability-focused approach. The first step is to set measurable ESG goals that are not only aligned with industry standards but also demonstrate a true commitment to reducing environmental impact.

At this stage, maintaining transparency is crucial. This must be done through the public disclosure of clear and verifiable information on practices, including performance metrics and long-term objectives. Such conduct builds trust among stakeholders and serves as proof of the company’s dedication to responsible and environmentally sustainable operations.

For this purpose, it is fundamental that organizations move beyond relying on compensation mechanisms such as carbon credits. Instead, priority should be given to investing in technologies that demonstrably reduce greenhouse gas emissions, rather than depending on superficial solutions. By adopting this approach, companies effectively minimize their carbon footprint.

In addition, to preserve credibility and promote accountability, Data Center companies must regularly update and communicate the progress of their ESG initiatives. Transparent reporting reinforces the authenticity of their efforts and contributes to the continuous improvement of practices.

Certifications as Proof of Sustainable Conduct in Data Centers

To combat digital greenwashing, clients are also advised to thoroughly examine the environmental certifications of their Data Center service providers. These seals validate the company’s commitment to adhering to high-level environmental, social, and governance practices, ensuring reliability when choosing a sustainable partner.

One of the most effective ways to ensure that Data Center practices are aligned with international ESG standards is to check for globally recognized certifications. Among those that confirm a Data Center’s commitment to operating sustainably and transparently are:

  • Uptime Institute Efficient IT Certification: Focuses on efficient resource use, emphasizing energy efficiency and sustainable operations;
  • LEED (Leadership in Energy and Environmental Design): A globally recognized green building certification that includes specific criteria for Data Centers, confirming that facilities are environmentally responsible and resource efficient;
  • ISO 14001 (Environmental Management System): Establishes the standard for effective environmental management systems, confirming that a Data Center is actively keeping down its environmental impact.

By reviewing these certifications, clients can gain valuable insights into their Data Center provider’s commitment to sustainable and responsible practices, enabling a more informed and transparent approach to ESG in the digital market.


REED ALSO: Green Data Centers: superior energy efficiency with reduced environmental impact


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