Paper Number

2583

Paper Type

Complete

Description

Cloud migration makes the accountability of IT emissions shift from Scope 2 (compulsory to report) to Scope 3 (voluntary to report). This study examines the effect of firms’ cloud migration on their environmental performance and voluntary disclosure of carbon emissions related to cloud computing. Using data on U.S. firms during 2010–2019, our findings show that cloud migration reduces Scope 2 emissions while it is negatively associated with the likelihood of disclosure of Scope 3 emissions from purchased goods and services. We provide evidence corroborating that complexity of cloud configuration and lack of relevant information from cloud service providers appear to drive client firms’ low rate of carbon disclosure related to cloud computing, rather than their motivation to enhance environmental performance. This study highlights that not accounting for this shift of carbon accountability along cloud computing value chains can underestimate and mislead corporate environmental responsibility associated with IT investments.

Comments

05-SocImpact

Share

COinS
 
Dec 15th, 12:00 AM

Hiding IT’s Carbon Footprint in the Cloud? Cloud Migration, Corporate Carbon Disclosure, and Environmental Performance

Cloud migration makes the accountability of IT emissions shift from Scope 2 (compulsory to report) to Scope 3 (voluntary to report). This study examines the effect of firms’ cloud migration on their environmental performance and voluntary disclosure of carbon emissions related to cloud computing. Using data on U.S. firms during 2010–2019, our findings show that cloud migration reduces Scope 2 emissions while it is negatively associated with the likelihood of disclosure of Scope 3 emissions from purchased goods and services. We provide evidence corroborating that complexity of cloud configuration and lack of relevant information from cloud service providers appear to drive client firms’ low rate of carbon disclosure related to cloud computing, rather than their motivation to enhance environmental performance. This study highlights that not accounting for this shift of carbon accountability along cloud computing value chains can underestimate and mislead corporate environmental responsibility associated with IT investments.