Sustainable Software Engineering: A FinServ Imperative
The financial services industry (FinServ) is undergoing a significant shift. Sustainable software engineering (SSE) is no longer a distant ideal; it’s evolving into a critical business requirement. But what does SSE truly entail within the complex, high-stakes world of finance?
This article explores the findings of a recent qualitative case study presented at the ESEM conference in 2025. The study, conducted, provides an in-depth look at how one FinServ company, is navigating this evolving landscape. It reveals a nuanced and often contradictory picture, shaped by the unique demands of the industry.
The Market’s Demand for Sustainable Software
The market is increasingly rewarding organizations that prioritize sustainability. This trend is driving FinServ companies to integrate SSE principles into their operations. While enhancing public perception is a key driver, SSE also offers the potential for improved profitability through increased efficiency and reduced operational costs.
However, a universally accepted definition of SSE remains elusive. FinServ companies, dealing with vast amounts of data, stringent regulatory requirements, and massive transaction volumes, have a particularly unique perspective on what constitutes sustainability. This perspective often centers on:
- Reducing energy consumption of software and hardware
- Minimizing the carbon footprint of digital operations
- Extending the lifespan of software systems and hardware
Divergent Perspectives: Management vs. Developers
The ESEM study, which included interviews with senior management and software engineers , uncovered a significant divergence in perspectives regarding SSE implementation. Management, typically focused on technical and economic sustainability, often prioritizes cloud migration and business continuity as primary goals.
One executive emphasized this perspective: “Moving to the cloud is, in our view, a significant step towards sustainability.” This mirrors the study’s observation that, “Many banks are actively migrating their data and applications to cloud solutions to remain competitive.” These efforts aim to reduce on-premise infrastructure, consolidate resources, and improve energy efficiency through shared cloud infrastructure.
Software engineers, however, often emphasize human-centric considerations. They connect sustainability to manageable workloads, system performance, and the overall well-being of the development team, recognizing that technical practices must support human factors. This perspective is frequently overlooked in top-down initiatives.
Many developers expressed skepticism regarding sustainability initiatives, viewing them as primarily public relations exercises. As one developer remarked, “[It] feels like PR at the end of the day… you’re not going to advertise that you’re one of the biggest investors in drilling for oil… you’re going to say you’re investing in clean energy.”
Key Challenges and Actionable Insights
The research identified several significant challenges hindering SSE adoption internal knowledge gaps regarding SSE best practices, resistance to change within existing company culture, limitations imposed by legacy systems, and, currently, a limited demand signal from clients regarding SSE practices.
The study also highlighted several actionable insights. Many participants expressed a desire for a dedicated sustainability team, mirroring existing security governance structures. This would foster cross-functional collaboration and provide dedicated resources to champion SSE initiatives. Such a team could:
- Develop and communicate SSE strategies and metrics.
- Provide training and awareness programs for engineers and management.
- Identify and implement sustainable technology solutions.
Moreover, they also highlighted the benefits of setting key performance indicators (KPIs) to measure the effectiveness of SSE efforts. These can include metrics related to:
- Energy consumption.
- Carbon emissions.
- Infrastructure utilization.
- System performance and reliability.
Additionally, cloud migration provides significant opportunities to improve energy efficiency, reduce the need for physical servers, and take advantage of the efficient resource allocation and scalability provided by cloud providers. Therefore, the benefits of cloud migration can be enhanced through SSE efforts, and can significantly contribute to the reduction of the company’s carbon footprint.
Bridging the Gap for a Sustainable Future
The key takeaway for FinServ companies , and likely many others, is that success hinges on bridging the gap between management and developer perspectives. This requires fostering open dialogue, co-designing interventions that address practical concerns, and establishing clear metrics to measure progress.
Companies that embrace these practices will be better positioned to capitalize on the long-term benefits of SSE, including increased efficiency, enhanced reputation, and a more resilient business model. By prioritizing SSE, FinServ can contribute to a more sustainable future while achieving its business goals.
