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.
Recommended Citation
Park, Jiyong and Saldanha, Terence, "Hiding IT’s Carbon Footprint in the Cloud? Cloud Migration, Corporate Carbon Disclosure, and Environmental Performance" (2024). ICIS 2024 Proceedings. 1.
https://aisel.aisnet.org/icis2024/soc_impactIS/soc_impactIS/1
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.
Comments
05-SocImpact