Aligning Technology Strategy with ESG Objectives

Coy Wright
VP, Energy, Utilities, & Resources Industry Solutions, Rimini Street
4 min read

Enterprise software systems are vital to business operations, but frequent upgrades and replacements can disrupt workflows and place significant strain on budgets, hindering progress toward Environmental, Social and Governance (ESG) goals. ERP software vendors persistently push businesses to upgrade systems customers have already invested years into customizing to suit their unique processes, even imposing arbitrary end-of-support deadlines to compel companies to follow their rigid roadmaps or transition to cloud-based solutions. This shift often forces businesses to essentially repurchase software they already own, locking them into a recurring subscription revenue model that seems to prioritize vendor interests over customer flexibility.

Rimini Street’s approach to optimizing and extending the useful life and value of major enterprise software for 15 additional years or more offers a solution that aligns seamlessly with ESG objectives. Let’s explore how this strategy helps businesses achieve sustainability, empower their workforce and strengthen governance practices.

Environmental benefits: Reducing waste and emissions

Extending the life of enterprise software systems supports environmental sustainability by eliminating the need for costly upgrades and replacements. Frequent migrations, mandated by vendors to remain on full support, often lead to inefficiencies and unnecessary resource utilization, as organizations are forced to upgrade systems prematurely. By maintaining and optimizing existing software for long-term use, companies can minimize their contribution to the environmental impact caused by resource-intensive upgrades.

Further, extending asset life can be an effective tactic for reducing Scope 3 emissions, which are indirect emissions across the value chain. Software upgrades and migrations often demand extensive efforts, from implementing complex workflows to utilizing significant human resources, all of which drive up emissions. Consider the environmental toll of a large ERP project: Intensive travel for consultants attending endless workshops and meetings is often required, resulting in heightened carbon emissions due to flights and transportation. Additionally, there’s the waste of running parallel systems during transitions, which doubles electricity consumption. Each step compounds the environmental impact, turning what should be a step forward into an unsustainable cycle of resource depletion and waste.

Beyond carbon emissions, many IT projects — including AI — require substantial levels of electricity and water to operate. Data centers, which support these technologies, consume vast amounts of electricity and water for cooling, presenting sustainability challenges. Yet, implementing AI and other advanced technologies can drive transformative innovation, enhance operational efficiencies and advance the business, providing a significant opportunity for competitive advantage.

For example, AI-driven predictive maintenance allows companies to analyze equipment sensor data and forecast potential failures before they occur, minimizing unplanned downtime and extending the lifespan of critical machinery. Smart grid management leverages real-time data to optimize energy use, enhance grid resilience, cut operational costs and support ESG goals with reduced emissions.

By carefully balancing the adoption of these innovations with sustainable practices — such as increasing the life of existing enterprise systems and optimizing IT operations — businesses can minimize environmental impact while still accelerating progress. This approach helps ensure that companies can lead responsibly, achieving both their innovation goals and their commitment to ESG priorities.

Rimini Street’s approach of optimizing existing systems for long-term use helps businesses lower their carbon footprint while still meeting operational needs. This strategy reflects a proactive commitment to environmental stewardship and sustainable IT practices.

Social benefits: Empowering workforces and communities

IT often moves too quickly, discarding systems, processes and the people involved without ever fully optimizing the solutions already in place. Instead, organizations find themselves chasing “the next big thing,” spurred by software vendors’ promises of new features and warnings of upcoming end-of-support dates. This continuous upgrade cycle leads to significant disruptions, requiring teams to adapt to systems that typically demand higher labor costs and hard-to-find skills, while sidelining the expertise and processes that the organization invested years into building. The inefficiencies created by ripping and replacing systems are often ignored in upgrade justifications, yet they have a profound impact on overall company performance and culture.

What if businesses could break free from the cycle?

By optimizing existing systems and adopting composable ERP strategies — where best-fit solutions complement current enterprise applications — companies can achieve innovation without negatively affecting their workforce or culture. This approach not only proves easier on budgets but also reflects a commitment to investing in an organization’s greatest asset — its people. Stable, reliable systems can enhance employee morale and productivity, while new training initiatives provide opportunities for professional growth.

Beyond supporting the workforce, extending software lifespans creates savings that can be reinvested into strategic company initiatives, like AI, automation, data analytics, and advancing renewable energy and decarbonization technologies. Rimini Street’s model supports these goals by enabling cutting total ERP support costs by up to 90% and redirecting funds to workforce development and business transformation.

Governance benefits: Strengthening oversight and accountability

Prolonging the life of enterprise software can deliver critical governance benefits, helping ensure long-term stability, transparency and accountability. By avoiding the risks associated with rushed migrations and unproven ROI with upgrades, companies foster stronger oversight and mitigate operational disruptions, enabling leadership teams to focus on strategic priorities. Moreover, the cost savings generated from third-party support and optimized IT strategies allow businesses to reinvest in robust compliance measures and data security enhancements, aligning IT operations with governance best practices. This proactive approach demonstrates an organization’s commitment to accountability and reliability, reinforcing trust amongst stakeholders.

From a governance perspective, extending asset lifespans also showcases strong fiduciary responsibility by maximizing the value of existing investments. Companies that adopt lifecycle management strategies are increasingly recognized in ESG ratings. , with organizations earning higher scores for their commitment to circularity. This approach not only cuts capital expenditures but also frees up resources for strategic initiatives, innovation or compliance programs. By embracing this model, businesses underscore their dedication to sound governance while driving impactful and sustainable outcomes.

Key takeaways

Rimini Street’s unique approach to maximizing the useful life and value of enterprise software systems for 15+ years is not just a practical cost-saving solution but a pathway to advancing ESG goals, driving meaningful change and fostering sustainable growth. By helping reduce environmental impact, empowering workforces and reinforcing governance frameworks, businesses can align their IT strategies with their broader quest for positive transformation. Organizations adopting this model not only enhance their operational resilience but also set an example for others in their industry, showcasing how technology strategies can be leveraged to create a sustainable, equitable and transparent future. Learn how Rimini Street serves as a strategic IT partner for energy, mining and utilities organizations here.

 

About the author

About the author

Coy Wright

VP, Energy, Utilities, & Resources Industry Solutions, Rimini Street

Mr. Wright serves as VP, Energy, Utilities & Mining Industry Solutions. In this role he is responsible for global strategy and business development to build and grow revenues across the energy, utilities, and resources (e.g. mining) industries. Mr. Wright is Rimini Street’s thought leader for all things related to this industry both internally and externally and will also establish and maintain strong relationships with key industry stakeholders, partners, and clients to understand their needs, support their innovation strategy, and ensure they are provided with support, products, and services that address their needs in the industry.

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