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CyrusOne's Climate Risk Management

It is becoming more evident every year that companies must understand climate risk to achieve long-term success. We cannot just continue "business as usual" and expect to prosper — instead, we must learn to predict and prepare for potential future conditions across a large range of scenarios.

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CyrusOne’s approach to understanding and addressing climate risk is multi-faceted. We identify risks through a variety of processes, including our annual Enterprise Risk Assessment process, stakeholder and industry engagement, and climate risk tools and investigations. We consider both transitional risks (risks to our business related to the transition to a climate-neutral economy) and physical risks (risks resulting from physical changes to the climate). 

Our strategy to mitigate the risks of climate change includes: 

  • A transition to renewable electricity: Like most data center operators, we recognize that our high electricity consumption is our primary climate impact and that most of our transitional risk is associated with these impacts, such as from emerging regulations or customer preference. Transitioning to renewable and carbon-free electricity insulates us from these risks.
  • A focus on water conservation: Unlike many in our industry, we strive to build data centers that do not rely on evaporating large amounts of water for cooling. Given that climate change has already begun to increase water scarcity in many places and is expected to continue doing so, this strategy will prevent us from contributing to water shortages in the communities and environments where we operate. It will also reduce the risk to our facilities of business disruption from water curtailments or friction with local communities.
  • Sustainable site selection: As part of our site selection process for new facilities, we incorporate assessments for climate risks such as water scarcity, future floods, and carbon pricing. By assessing these risks before purchase and incorporating them into our purchase decision, we can minimize our total risk and avoid surprises.
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