Cassandra Garber, chief sustainability officer of Dell Technologies, likes things in threes. Fittingly, she thinks three factors explain why for businesses, sustainability, and the disclosure that goes with it, are vital for building trust.
First, stakeholders’ demand for transparency on environmental and social topics has been growing for some time, Garber tells me: “Even if they’re not in agreement or alignment with what you’re doing, they want you to be transparent about it.”
The second big factor is regulation. “Transparency on greenhouse gas emissions in particular is now regulated in multiple countries and, increasingly, in several states,” Garber says. “So data transparency in general on environmental and social issues is becoming a compliance topic.”
The third? AI—which is both a problem and a solution. “Transparency of our data in this space, not only is it more critical because of the environmental and social impacts of AI and risks associated with AI, but AI makes transparently sharing data easier.”
At global tech giant Dell, Garber leads an ambitious ESG effort that spans climate, the circular economy, digital inclusion, human rights, and philanthropy. “Our strategy, in a nutshell, is integrate sustainability everywhere.”
To do that, Dell runs a hub-and-spoke model, Garber notes. “My team is the hub, and so we sit at the center of the company,” she says. “Anything pan-Dell that is environmental or social impact, we run, we coordinate, we facilitate.”
Garber’s team also uses a little something called OMG, or "operating model and governance." Every business unit and function in the 120,000-employee company has a responsible ESG lead who is part of its ESG Interlock community.
This a business imperative, not a nice-to-have. “We identify what are the environmental and social risks and opportunities within your business unit and/or your function,” Garber says. “You are responsible for prioritizing what actions you are going to take, what deliverables you have on your plate, in alignment with our overall strategy for the company.”
The internal conversations that result help move the needle. “That’s how we get scale, and that’s how we get a catalyst,” Garber says.
She gives the example of projected emissions. “We have this network where we can immediately go out to everyone and say, ‘Hey, flagging this is happening. Need help from CSG [Client Solutions Group] and finance to figure out how we’re going to tackle this,’” Garber explains. “Our internal operating model is the key to our transparency.”
To be transparent with customers, Dell provides the carbon footprint for the product configuration they’ve chosen. “There is no standard for the IT industry for a product carbon footprint, so transparency becomes the key,” Garber says. “What is included in your carbon footprint becomes critical to explaining what the number is, because you can’t assume all product carbon footprint methodologies are the same.”
Dell also shares its nine ESG goals. Among them: By 2050, it will achieve net-zero GHG emissions across scopes 1, 2, and 3. That goal is approved by the Science Based Targets Initiative (SBTi).
Which brings us back to AI.
For Garber, generative AI is a perfect example of how a fundamental industry shift can knock sustainability goals off course. “And everyone in your industry is immediately off track because the energy required to run these large language models is significant.”
Dell has a strategy to confront the AI challenge. For starters, it can make its products more energy-efficient, Garber says. “It’s also an operating strategy, because we can use AI to do a better job of managing energy efficiency, of finding electricity and renewable electricity.”
But ultimately, it’s all about transparency, Garber maintains: “If we recognize that we are not going to meet the goal—which many of us in the industry are openly talking about—transparency is the epitome of how you explain that to regulators and to customers.”
Such frankness can be a trust builder. “For us, it’s about showing the impacts of AI, showing how we’re addressing them,” Garber says; “showing what impact that has on our goals and what we’re doing as an industry to do our best to stay on track.”
Three cheers to that.
Nick Rockel
nick.rockel@consultant.fortune.com
