LCL aims to take a leading role in the world of data centers regarding sustainability. How is this ambition reflected in your operations?

Steve: The answer lies in embedding sustainability within our strategy map. Our customer intimacy strategy dictates our actions, initiatives, investments, our approach to people and hiring. It allows us to measure not just financial value but also social and environmental value. This approach incorporates social values like talent management and DEI ( Diversity, Equity and Inclusion), alongside environmental efforts such as reducing our CO2 emissions and lowering the PUE (Power Usage Effectiveness) to 1.3.

Laurens: Our strategic journey began years ago, evolving into the customer intimacy strategy. With changing times, sustainability quickly became integral, inspired by initiatives like the UN Global Development Goals and the Green Deal. This broader view extends beyond financial metrics, which reshapes our company’s role. 

Steve: Nations and regulations provide direction, but companies can set their paths too. Being proactive is crucial. But you can only successfully implement sustainability if it involves the top. The CEO and management team must be on board; otherwise, it won’t succeed. Embedding it in your strategy sends the clearest possible signal.

Laurens: CIOs also play an important advisory role in this, especially in efficiency improvements, like choosing the right IT equipment to save CO2, or using AI to meet climate goals. 

What does this commitment to sustainability mean in concrete terms?

Steve: As a company, you can allocate three things to a certain strategy: time, resources, and funds. If our goal is "to reduce CO2 emissions by 50%", we identify projects that can achieve this, create roadmaps, and allocate time, resources, and funds to these goals. For DEI, we ensure compliance with policies and allocate budgets, which, for staff training, are now threefold what they were five years ago. This also leads to innovative projects like the Data Center University, where we develop in-house training for our staff. It all comes down to making the right choices from an integrated strategy.

Laurens: Resources aren’t unlimited, but not everything requires a big budget. For example, promoting and collaborating with Close The Gap is low-cost but impactful. When we discovered our new generators could also run on HVO100, the switch didn’t incur extra costs but reduced their CO2 emissions by 90%. HVO100 is pricier than diesel, but the reduction is worth it. Moreover, conversations with stakeholders are cost-free but can motivate them and start a movement.

How does LCL help its customers achieve their Environmental, Social, and Governance (ESG) objectives?

Laurens: As a supplier, we have responsibilities. We engage with our clients and listen to their needs, and they expect us not only to improve our PUE, for example, but also to provide ideas, tips, and inspiration. We take time to listen to and support our clients in their goals.

Steve: Our efforts complement our clients’ similar objectives, enhancing their sustainable procurement processes and the overall quality of their supply chain.

What Key Performance Indicators (KPIs) have you defined to monitor the progress of your ESG roadmap?

Steve: We track around 65 KPIs, update them quarterly, and provide an annual overview in our sustainability report. As we advance with CSRD (Corporate Sustainability Reporting Directive), we’ll likely revise existing KPIs and integrate new ones. It’s a continuous process.

Laurens: Over time, we gain better insights and adjust. We recently created a KPI for GWP (Global Warming Potentials) gasses < 675 with our sustainability workgroup, but such a measure should no longer be a KPI in 2030.

Steve: Today, we have KPIs for our material topics. We are ahead of many SMEs in terms of number, quality, and monitoring.

Laurens: The KPIs that stand out are those we committed to, like the SBTi (Science Based Target initiatives). It’s crucial we have a roadmap since we are judged on these. But our KPI on renewables is our own initiative. We commit to our own production, going a step beyond many other companies.

Steve: Our risk KPIs also set us apart; we have about ten of them. It's rare for SMEs to link KPIs to risks like we do.

Is the second report merely an update of the first, or does it contain fundamental new elements or changes in direction?

Laurens: Our maturity has greatly increased; there was no talk of a double materiality assessment before. Through experience, you learn and gain new insights. We’ve also learned a lot from sustainability ratings like EcoVadis. (LCL is EcoVadis Gold). We chose to take initial steps in CSRD reporting, including a double materiality assessment, whereas the first report wasn’t based on a framework. This is a significant evolution.

Steve: The focus has shifted to include more governance and social aspects, adding depth and context to our environmental efforts. This is based on feedback and improvements suggested by stakeholders and corporate auditors.

To what extent does LCL’s ESG report meet the requirements of the European Corporate Sustainability Reporting Directive (CSRD)?

Steve: Our report already includes elements like double materiality assessment and IROs, (Impact, Risk, and Opportunity), based on Eufrag standards for CSRD. We are working on compliance, with Deloitte as our auditor for both financial and non-financial reporting. We involve them in an early stage so that there are no hurdles for third-party assurance. This ESG report is not yet fully CSRD-compliant, but we are on the right track.

Laurens: We strive to help our clients meet their scope 3 goals, supporting their sustainability objectives through direct actions and strategic advice.

LCL also contributes to the (self-)regulation of its own market. Through which channels or initiatives does this happen?

Laurens: SBTi (Science Based Target Initiative) is something we have been doing voluntarily, for 2 years now, as one of the few Belgian companies. LCL has registered for the most ambitious goal, aiming to limit warming to 1.5°C.

Steve: We’ve also been participants in the European Code of Conduct for Energy Efficiency in Data Centres for years. This is a voluntary initiative that brings stakeholders together to reduce energy consumption.

Laurens: The CNDCP (Climate Neutral Data Center Pact) is another one, we even helped lay the foundation. It supports the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050. It aligns with the European Data Strategy, which aims to make data centers in the EU climate-neutral by 2030. LCL commits to being climate-neutral by 2030 for all its data centers on its own initiative. Through these initiatives, we take responsibility and take steps to self-regulate and make the market more sustainable.

LCL has integrated sustainability into its core operations, with a strong focus on reducing CO2 emissions, improving energy efficiency, and aligning with global initiatives such as the Science Based Targets initiative and the European Green Deal. Their ESG reporting reflects these commitments, and LCL is actively contributing to industry-wide self-regulation efforts. By setting new standards and supporting climate goals, LCL is helping shape a more sustainable future for the data center industry.

You can view the full report here: LCL Sustainability Report 2023.

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