Guided by the Ten Principles, Datatec drives climate action across 50 countries

Datatec Ltd, a Johannesburg Stock Exchange-listed ICT solutions and services company operating in more than 50 countries, is demonstrating how a global business can embed sustainability into its operations and achieve real reductions in its environmental footprint.

Guided by the Ten Principles of the United Nations Global Compact, the company is pursuing ambitious climate goals across its divisions: Westcon International, Logicalis International, Logicalis Latin America and Mason Advisory.

“Datatec’s environmental responsibility focuses on three key areas: carbon emissions, energy usage and e-waste management,” says Sharon Kekana, responsible business manager at Datatec. These focus areas are central to the company’s commitment to climate action and its contribution to a cleaner, healthier planet.

This commitment has grown significantly over the years.

The company recognises the importance of moving beyond simply identifying risks to

understanding their potential financial impact. This is where performing a climate scenario analysis became a crucial step.

“The scenario analysis allowed us to model over the coming decades how different climate change-related risks – such as extreme heat or water stress and drought – could potentially impact our operations, including the possible financial effects,” explains Kekana. “This forward-looking perspective provides the strategic insights we need to prioritise our efforts and invest in solutions that not only mitigate future risks but also create a more resilient business.”

Datatec has committed to the Science-Based Targets Initiative (SBTi) Corporate Net-Zero Standard – the world’s first framework for corporate net-zero target setting in line with climate science.

The group aims to:

• Achieve net-zero greenhouse gas emissions across its value chain by 2050
• Reduce scope 1 and scope 2 emissions by 50% by 2030, against a 2022 baseline
• Ensure 85% of suppliers by spend set science-based targets by 2028

Progress is already visible – Datatec achieved a 12% reduction in scope 1 and 2 emissions in its most recent reporting year compared with the 2022 baseline year. This is a result of a number of initiatives across the business:  energy efficiency measures; increasing the proportion of operational electricity consumption from renewable sources; installing on-site solar generation at a small number of logistics centres; and decreased diesel and petrol consumption in company-owned vehicles.

“While this is reasonable progress, we need to and are accelerating our actions to meet our SBTi target of 50% reduction by 2030,” says Kekana.

Datatec is also embedding climate action into leadership accountability – its CEO and CFO have linked a portion of their compensation to environmental KPIs, including Datatec’s net-zero tracking.

A dedicated budget supports subsidiaries in implementing carbon reduction initiatives, from LED lighting and motion sensors in offices to energy audits and infrastructure upgrades in data centres.

The company also invested in an automated data collection system to track emissions across more than 200 sites. “This technology gives us accurate, site-specific data. That level of detail allows us to tailor carbon reduction plans for our high-emitting locations and focus our budget more effectively,” says Kekana.

Employee engagement has been central to Datatec’s climate efforts. To encourage collective action, the company created a network of responsible business champions. These champions play a key role in identifying opportunities and implementing carbon reduction projects at the local level.

“We have also launched sustainability and movement challenges that not only promote participation but also connect our employees globally. For instance, the Logicalis Revive and Thrive Movement Challenge brings together employees from around the world, encouraging everyone to get active with a shared goal of giving back to communities in need. All funds raised support global initiatives and locally nominated charities. This approach demonstrates that engaging our employees goes beyond reducing emissions; it fosters a global community committed to a more sustainable future,” says Kekana.

“While Datatec’s responsible business strategy was developed independently, the Ten Principles of the UN Global Compact provide a benchmark. Our Code of Conduct is anchored in the Ten Principles, which reinforce the importance of our climate strategy and keep us aligned with global standards.”

Datatec also participated in the 2023 UN Global Compact SDG Innovation Accelerator, focusing on scope 3 emissions – the most complex part of ICT value chains. “Scope 3 emissions are particularly intricate, spanning supplier purchases to end-of-life management of products,” Kekana explains.

“Datatec’s participation in the SDG Innovation Accelerator was a pivotal experience that reinforced some valuable lessons, and through managing data across 200 sites and engaging employees worldwide, Datatec has learned what works.”

Says Kekana: “Begin with a clear carbon reduction plan to guide your targets. Put strong data systems in place early. Engage your colleagues globally and ensure climate KPIs sit at the heart of executive performance goals, cascading through the organisation. That’s what truly drives change.

“Climate action starts at the top, but it succeeds when everyone in the company is part of it. That’s how we’ve managed to make real progress – even as the business continues to grow.”

Datatec’s approach to tackling climate change highlights the importance of making sustainability a core part of business operations. By committing to clear goals, getting employees involved and using technology to measure impact, Datatec is reducing its environmental footprint and setting a standard for others to follow.

Says Dr Achieng Ojwang, Executive Director of the UN Global Compact Network South Africa, “We applaud Datatec for championing sustainability, as this commitment reflects a dedication to a healthier planet and the power of community. By leveraging our programmes and collaborating towards shared goals, they’re inspiring others to join in the journey towards meaningful change.”

 

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