Ransomware Attack That Undid 2 Years of Sustainability Progress: Why OT Security Is Your Hidden Carbon Risk

In the fast-paced digital age, industries are increasingly leveraging Operational Technology (OT) to enhance efficiency, streamline processes, and accelerate their sustainability goals. However, as the use of OT grows, so do the vulnerabilities associated with it. A recent ransomware attack that crippled Schneider Electric’s sustainability division demonstrates just how intertwined cybersecurity threats are with sustainability efforts—and how a breach in OT security can undo years of progress in carbon reduction and environmental goals.

The High Cost of OT Vulnerabilities

Operational Technology (OT) environments, which include industrial control systems (ICS) and other networked technologies used in manufacturing, energy, and critical infrastructure, are essential for businesses focused on enhancing operational efficiency. For many companies, OT systems are integral to their sustainability efforts, enabling the optimization of energy usage, reduction of waste, and automation of environmentally friendly processes. But what happens when these systems are compromised?

In a recent ransomware attack targeting Schneider Electric, the company’s sustainability initiatives were hit hard. The breach not only compromised sensitive data but also brought production to a halt, impacting their ability to operate efficiently and meet carbon-reduction goals. The attack effectively erased two years of progress in sustainability and forced the company to recalibrate its efforts.

This incident highlights a critical, often overlooked risk: OT security is your hidden carbon risk. While many businesses focus on energy-efficient technologies and carbon reduction strategies, the security of OT systems should be viewed as equally crucial. When OT systems are breached, the potential for environmental setbacks increases dramatically, especially in industries that rely on these technologies for green initiatives.

Why OT Security Matters for Sustainability Goals

OT environments are particularly vulnerable to cyberattacks due to their increased connectivity and the use of legacy systems, which were not originally designed with cybersecurity in mind. As companies push forward with Industry 4.0 and adopt more connected systems, OT infrastructures become more exposed to external threats.

1. Disruption of Energy Management Systems: Many sustainability goals, such as energy reduction and carbon neutrality, rely heavily on the effectiveness of energy management systems powered by OT. A ransomware attack on such systems can cause production shutdowns, disrupt energy-saving measures, and undo the progress made in reducing carbon footprints. For instance, critical infrastructures may be forced to operate inefficiently or even revert to fossil-fuel-powered solutions when automated systems are compromised.
2. Delayed Production and Carbon Impact: Production delays caused by OT system breaches can lead to an increase in energy consumption. Factories and power plants that rely on OT for optimization of energy use may end up using more resources as manual intervention takes over during a downtime, significantly increasing emissions.
3. Financial and Reputational Costs: The financial consequences of an OT security breach are not limited to ransom payments and recovery efforts. Rebuilding lost sustainability progress can be expensive, especially if operations need to be restarted from scratch or re-engineered. Furthermore, the reputational damage from losing progress on environmental goals can alienate customers and investors who prioritize sustainable business practices.

OT Security and Insider Threats

One of the primary challenges in securing OT environments is the potential for insider threats. Unlike IT environments, which often focus on data protection and the security of sensitive information, OT security has a narrower focus on physical devices and industrial systems. However, this narrow focus makes OT environments particularly vulnerable to malicious insiders who may have both the access and the expertise to exploit vulnerabilities.

• Insider Threats: Given that OT systems are often integrated with legacy infrastructure, employees or contractors with deep knowledge of the systems may be able to exploit these weaknesses. Whether intentional or accidental, these vulnerabilities can significantly compromise the security of the entire system, including its role in sustainability efforts.
• Limited Awareness of OT Security Risks: Many employees in OT environments may not be fully aware of the cybersecurity risks posed by connected technologies, which means that potential threats can go unnoticed. Training and awareness programs are critical to ensuring that OT systems are protected, and that staff understand the far-reaching impacts a breach can have on sustainability goals.

The Geopolitical Landscape and OT Security Risks

The growing geopolitical tensions across the globe are further amplifying the risks to OT systems. According to a PwC report, as companies increasingly rely on global supply chains and interconnected systems, the potential for cyberattacks targeting OT infrastructure has escalated. Nation-state actors and cybercriminals are actively looking to exploit vulnerabilities in critical systems, including those in energy and manufacturing, which can directly affect both business continuity and sustainability outcomes.

For example, if an OT system managing a factory’s emissions control mechanism is compromised, the impact on carbon emissions could be immediate and significant, as the factory may no longer be able to control or optimize its emissions processes effectively. Geopolitical instability has made such vulnerabilities even more pronounced, creating additional challenges for industries already working hard to meet stringent environmental targets.

Key Steps to Mitigate OT Security Risks

Given the profound link between OT security and sustainability, it’s imperative for companies to prioritize OT security in their sustainability strategy. Here are several steps companies can take to safeguard their OT systems and their environmental goals:

1. Strengthen OT Security Posture: Start by ensuring that OT systems are built with cybersecurity in mind. This includes implementing strong access control policies, network segmentation, and real-time monitoring to detect any anomalies or breaches.
2. Implement Robust Incident Response Plans: Prepare for the possibility of a ransomware attack by developing an OT-specific incident response plan. This should include clear protocols for minimizing downtime, securing backup systems, and protecting critical infrastructure during a breach.
3. Upgrade Legacy Systems: Many OT systems rely on outdated software or hardware that is particularly vulnerable to cyberattacks. Upgrading these systems not only enhances security but also improves efficiency, reducing the potential for carbon-emitting downtime.
4. Employee Training: Provide ongoing training to employees and contractors on OT security best practices. This includes educating them about the risks posed by phishing attacks, the importance of strong passwords, and how to recognize potential cybersecurity threats in the OT environment.
5. Collaborate with Experts: Work with cybersecurity experts who specialize in OT security to continuously assess your systems and ensure they remain resilient to evolving threats.

Why OT Security is Directly Linked to Environmental and Carbon Risk

1. The Physical Impact of Cyber Breaches

• Safety System Failures: Unlike IT breaches that typically affect data, OT security breaches can compromise physical machinery. Malware targeting Industrial Control Systems (ICS) can disable safety systems, causing malfunctions that may lead to environmental disasters or uncontrolled emissions.
• Operational Inefficiency: Cyberattacks or misconfigurations in Programmable Logic Controllers (PLCs) can cause machinery to operate inefficiently, wasting energy and increasing carbon emissions.

2. Forced Shutdowns and “Dirty” Restarts

• Production Loss: Ransomware attacks in the energy and manufacturing sectors often result in complete operational shutdowns. Restarting these processes consumes significant energy, causing a spike in emissions.
• Pipeline Disruptions: Attacks like the 2021 Colonial Pipeline hack show how shutting down critical infrastructure can disrupt the supply chain, leading to increased emissions from less efficient transportation alternatives.

3. Vulnerability of Legacy Systems

• Insecure by Design: Many OT environments rely on aging legacy systems that cannot be easily patched or upgraded. These outdated systems were built before widespread internet connectivity, leaving them exposed to modern cyber threats.
• Lateral Movement: If a cybercriminal gains access to the IT network, they can easily infiltrate the OT environment, taking control of high-energy machinery.

4. The Hidden Carbon Cost of Security

• Energy-Intensive Security Tools: While OT systems require robust protection, the tools to secure them, such as AI-driven monitoring and defenses, can consume considerable energy and increase carbon emissions.
• Legacy System Incompatibility: Older equipment often can’t support active monitoring or advanced security measures, requiring energy-intensive workarounds to ensure protection.

Conclusion

The ransomware attack on Schneider Electric’s sustainability division is a stark reminder that OT security is not just a matter of protecting digital assets—it is intrinsically tied to the success of sustainability goals. By securing OT systems and mitigating risks from cyberattacks, businesses can safeguard their progress toward a greener, more energy-efficient future. As industries increasingly turn to OT for sustainable operations, cybersecurity must be considered a key component of any comprehensive sustainability strategy.

To truly reduce carbon footprints and reach environmental goals, companies must realize that OT security is your hidden carbon risk and addressing it is crucial for the success of both business and environmental sustainability.

Reference:

– https://www.scworld.com/news/ransomware-attack-claims-schneider-electrics-sustainability-division
– https://www.pwc.com/gx/en/issues/cybersecurity/geopolitical-shifts-amplify-ot-risks.html
– https://www.bankinfosecurity.com/blogs/cybersecurity-operations-ai-carry-hidden-climate-costs-p-3906