What are EED and CSRD: Why They Matter for Data Centre Management
In recent years, sustainability has become a top priority for industries worldwide, and the data centre sector is no exception. As governments strive to reduce carbon footprints and mitigate climate change, regulatory directives such as the Energy Efficiency Directive (EED) and the Corporate Sustainability Reporting Directive (CSRD) are playing a crucial role in reshaping how data centres operate and manage their environmental impact.
Explaining EED and CSRD
The Energy Efficiency Directive (EED) and the Corporate Sustainability Reporting Directive (CSRD) are pivotal pieces of legislation within the European Union (EU), designed to drive energy efficiency and sustainability across various sectors, including data centres. It's important to note that these directives apply not only to EU-based companies but also to global enterprises that operate within the EU. This means that regardless of their location, companies meeting certain criteria must comply with the reporting obligations outlined in the directives. The primary goal of the EED is to reduce energy consumption and greenhouse gas emissions, while the CSRD focuses on promoting corporate sustainability and transparency.
The Regulatory Landscape
Energy Efficiency Directive (EED)
The EED is a cornerstone of the European Union’s commitment to energy efficiency. Its primary goal is to reduce energy consumption and greenhouse gas emissions across various sectors, including data centres. Here’s what you need to know:
Reporting Obligations
Data centres above 500 kW need to report annually on environmental performance related to:
- Energy consumption
- Power utilisation
- Temperature management
- Cooling efficiency ratios
- Water usage
- Heat utilisation
- Energy reuse
- Use of renewable energy (aligned with CEN/CENELEC EN 50600-4 standards)
Global Impact
The updated thresholds will impact most data centre operators globally, encompassing reports on data traffic, storage, temperature, power, water, carbon effectiveness, energy reuse, renewable energy, and cooling ratios.
Corporate Sustainability Reporting Directive (CSRD)
The CSRD is a game-changer for businesses operating within the EU. Here’s why:
Mandatory Disclosure
Companies, regardless of their location, must comply if they:
- Operate in the EU
- Have over 500 employees
- Are listed on EU-regulated markets or operate in specific sectors (e.g., banking, insurance, energy, transport)
What to Report
- Annual sustainability reports following the European Sustainability Reporting Standards (ESRS)
- Topics include climate change, biodiversity, human rights, diversity and inclusion, anti-corruption, and tax transparency
Assurance Requirements
- Independent verification by auditors is now mandatory
- Data centre operators must ensure accurate and comparable reporting
The Impact on Global Enterprises
- Compliance costs. Enterprises operating data centres within the EU must invest in sustainability measures, reporting systems, and efficient technologies.
- Competitive advantage. Proactive adoption of sustainable practices can give enterprises a competitive edge and meeting regulatory requirements appeals to environmentally conscious customers.
- Supply chain considerations. Enterprises with data centre supply chains must ensure compliance across the entire value chain.
- Innovation and adaptation. Enterprises must innovate to meet EU standards, potentially influencing global best practices.
- Collaboration and partnerships. Collaboration with data centre providers and technology vendors is essential.
How DCIM Can Help
Data Centre Infrastructure Management (DCIM) software offers solutions for:
- Real-time monitoring. Track energy consumption, cooling efficiency, and other KPIs and anticipate issues and optimise performance.
- Capacity planning. Allocate resources efficiently based on compliance requirements.
- Energy management. Compare historical and real-time data for compliance reporting.
Bringing it All Together
EED and CSRD are reshaping the data centre landscape by placing a heightened emphasis on energy efficiency and sustainability.
Compliance with these directives is not only essential for global enterprises but also presents opportunities for data centres to demonstrate leadership in environmental stewardship.
Leveraging advanced Data Centre Infrastructure Management (DCIM) solutions is crucial in this journey. Excellent scalable data polling and reporting, along with APIs and integrations to share data across multiple systems, are invaluable in this effort.
This is where Sunbird DCIM can provide valuable assistance. Sunbird DCIM is architected from the ground up to offer open RESTful APIs and out-of-the-box integrations, along with the most powerful and scalable polling engine to collect data efficiently and accurately.