Green Technology: Driving Economic and Environmental Benefits from ICT

Report prepared with the support of Accenture

Green Technology : Driving Economic & Environmental Benefits from ICT

Green Technology: Driving Economic and Environmental Benefit from ICT was produced in January 2009 by the World Economic Forum, within ithin the framework of the Technology Governors partnership programme.

The significant contribution of Accenture is gratefully acknowledged.

Editors
Joanna Gordon World Economic Forum Andrew Skinner Accenture Andrew Button Accenture

Project Advisor
Stephen Nunn Accenture

Consultative Group

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Summary
Building on the work of the 2007 IT & Telecoms Industry Partnership Programme, this report focuses on the potential environmental and economic benefits that could be realized from ICT solutions. While the IT sector produces only 2% of global emissions, efficient and innovative use of ICT can lead to green solutions across multiple industries. Such solutions provide innovative changes to the way a business functions, rather than purely focusing on traditional ICT programme-led benefits, which historically lay in the area of technology based energy reductions. The key enabler to the implementation of such innovative solutions is the ability to (i) identify, develop and prioritize where the opportunities exist, (ii) estimate the environmental and economic benefits case and (iii) measure, assess and maximize the results. To support this approach, a standard framework has been developed to help organizations understand how the use of innovative ICT solutions can have a greater impact on both the environmental and economic bottom line. The framework is divided into three key aspects: • Business Area: the specific areas within the business which can be addressed; • Green Business Innovation: the Strategic, Infrastructure, Application and Process areas where ICT Innovations can enable environmental impacts; and • Measurement Protocols: the ability to track the actual benefits. Many business driven sustainability or green initiatives are already underpinned by the use of technology. It is by making the connection between ICT and business operations that true innovative enablement is possible. As ICT is an enabler for most business processes, and therefore overall business strategies, it makes sense to look to ICT for solutions to help drive green benefits within these areas. While each industry has adopted varying degrees of technology to drive the green agenda, they have, as a whole, failed to adopt large scale implementation of these types of initiatives. Moreover, they have often failed to recognize the role that ICT has to play in executing and optimizing the initiatives. As a result, limited research currently exists around the benefits of driving ICT for Business innovation. Far reaching opportunities exist for the ICT sector to promote and drive a green change in business, but only if the ICT that runs through each business unit and across all sectors is recognized as a driver and not a mere enabler.

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Green Technology : Driving Economic & Environmental Benefits from ICT

Table of Contents
Summary .................................................................................................................................................. 3 Background .............................................................................................................................................. 5 Opportunities outside the IT Budget .......................................................................................................... 7 A Framework for Better Leveraging ICT’s Greening Capabilities .................................................................. 8
The Business Area View ..................................................................................................................................................... 8 The ICT Levers Driving Innovation ................................................................................................................................... 21 The Measurement view................................................................................................................................................... 22

Make an Early Impact and Prioritize ........................................................................................................ 24 Conclusion .............................................................................................................................................. 25 References.............................................................................................................................................. 26 Bibliography ........................................................................................................................................... 27 Appendix 1: Business Areas: ICT Key Activities and Examples ................................................................... 28 Appendix II: Green Business Innovation & Green ICT: High-Level Analysis................................................. 38
Green Business Innovation Benefits ................................................................................................................................ 38 Green ICT Benefits ........................................................................................................................................................... 39

Appendix III: Case Study: Using the ICT Greening Framework ................................................................... 41
WEF Framework – Business Area Analysis ...................................................................................................................... 41 WEF Framework – ICT Levers for Innovation .................................................................................................................. 41 WEF Framework – Measurement.................................................................................................................................... 42

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government and NGOs collaborated to synthesize their perspectives on the role of technology in mitigating climate change. Page | 5 . and the efficient management of specific implementations. ICT solutions have the potential to be an enabler to reduce a significant part of the remaining 98% of total CO2 emitted by non-ICT industries” .Background “The ICT industry is responsible for approximately 2% of global CO2 emissions. a large number of experts from industry. monitoring and control. “The Contribution of ICT to Climate Change Mitigation” was presented last year in Davos. In response to this paper. • dematerialization of products at both the early design and delivery stages. in securing a low-carbon future. Increased capabilities in the supply of energy to users through technologies to improve measurement.Gartner/HP/McKinsey/WWF[1] Throughout 2007. Carbon Accounting & Tracking Systems to measure and report on energy usage and emissions generation with linkage across an organizations’ supply chain. thus enabling product comparison and targeted environmental improvements. Smart Manufacturing Improvement to manufacturing processes to reduce wastage and energy consumption through technology which supports activities such as: • monitoring and management of production process. These ideas demonstrate the pivotal role of technology. as well as engineering and construction industry support via appropriate tools to reduce energy needs. Smart Buildings & Solutions to reduce the level of emissions from buildings and core infrastructure Infrastructure through improved design. and • improvement of logistics for the delivery of final products to end customers and consumers. management and prediction of demand. Smart Energy Management Sustainable Energy Production Technology to support the integration of micro-generation solutions into the wider energy supply chain. across all industries and governments. The resulting paper. the Governors of the IT and Telecoms Industries approved the seven points listed below.

The Governor CEOs were very clear that the next phase of effort should focus on clarifying the economic rationale behind adoption of greener technologies and building a framework to help all heavy users of ICT better leverage ICT’s capabilities to drive a green agenda. solutions through virtualization. 6|Page .Green Technology : Driving Economic & Environmental Benefits from ICT Virtual Meetings ICT solutions to enable and encourage remote collaboration with individuals. Solutions include utilizing virtualization and consolidation technologies to re-locate data centres to lower cost and cleaner energy locations while maintaining existing employee premises. consolidation and new technologies and solutions to increase the power efficiency of mobile and consumer electronic devices. The challenge for ICT now is whether it continues to evolve naturally within business or whether ICT can truly become an active enabler of change for the enterprise while driving down emissions and reducing the environmental impacts of business operations. Increased Energy Efficiency of Data Centre Technologies and Electronic Devices Solutions to increase the energy efficiency of data centre infrastructure. governments and organizations to reduce or remove the need for individual travel.

data and infrastructure together to enable more efficient business. the data centre. ICT. however. security systems. ICT solutions can assist in bringing all of these devices. manufacturing tools. games consoles. embedded processors.e. Page | 7 . CEOs. software in mobile phones. but it is often restricted to the traditional IT environment i. building climate control. Organizations must now look beyond the traditional remit of the Green IT agenda to see how ICT can be applied to the working environment and business processes. ICT is pervasive within the business environment. is pervasive in many areas of business and not strictly limited imited to the IT Department and its sphere of influence. vehicles. a process has been developed to help understand how to benchmark and prioritize these initiatives while developing clear execution plans and solid metrics to track progress. a standardized framework has been developed that helps an organization look at where ICT can become an enabler of strategic economic and environmental benefits. economic benefits and environmental benefits. domestic heating units and many other electronic devices. regulation and the need to both reduce costs and maximize revenue. To help understand where ICT can have an impact. It can be found in data-centres. By leveraging ICT capabilities. data centres. The framework provides a basis for understanding how organizations can decrease their overall carbon footprint through either energy efficiency or the the application of innovative ICT solutions. benefi thus moving beyond the traditional focus of looking for energy savings from ICT infrastructure alone. desktop and laptop devices. software. GPS receivers. This will become essential in successfully succes meeting the demands of environmental performance. CIOs and CFOs are well placed to drive positive change in moving to a less energy rgy and material intensive society and economy. washing machines. In addition.Opportunities outside the IT Budget Many organizations have incorporated a Green IT agenda.

• Green Business Innovation: the Strategic. Infrastructure Application Process Strategy Manufacturing & Distribution Sales & Marketing Business Operations Service & Support Holistic Framework for Green ICT The Business Area View Provides an understanding of how IT has and can be used most appropriately to drive efficiencies within specific business functions and departments. utilizing advanced Video Conferencing and better collaboration capabilities Dematerialization Paperless business transactions – such as e-billing and e-procurement. We have identified four main business functional areas: business operations. Examples of initiatives and areas of focus include: Smart Buildings The physical buildings used by core business functions and how they are operated and managed in a more energy efficient manner. Virtual Collaboration The ability to attain support functions operating in a more flexible manner. Finance. and • Measurement Protocols: the ability to track the actual benefits. and the IT Organization and includes the back office infrastructure. virtualization. The framework is divided into three key aspects: • Business Area: the specific areas within the business which can be addressed. service and support. and manufacturing and distribution. sales and marketing. as well as the movement to electronic storage of data. Business Operations This area relates primarily to Back office functions such as Management.Green Technology : Driving Economic & Environmental Benefits from ICT A Framework for Better Leveraging ICT’s Greening Capabilities The following framework has been designed to provide a structured method for analyzing how ICT can be applied to drive green benefits at both a business and operational level. Application and Process areas where ICT Innovations can enable environmental impacts. Data-centre Data centre consolidation. automation and orchestration Procurement The adoption of company-wide Green products and services 8|Page . Infrastructure. HR.

Service & Support This area focuses on how companies provide services to their customers. monitored and billed. Field Operations Sales and Marketing The area describes how to drive a smarter way of conducting interactions with partners. Examples of this functional area are: Sales support The ability to provide better communication and business decision support tools to optimize or minimize travel between customers and negate the need to return to the office location – purely to undertake administrative task such as order placement. Examples of this functional area include: The ability to control and co-ordinate field service staff in the most effective manner. Provide tools and information to help marketing and strategic functions follow an enterprise wide environmental agenda. Customer Call desks The ability to optimize call centre locations and to reduce heavy usage of IT through optimized Desktop and Voice Infrastructure. suppliers and customers through reduced travel and more collaboration. tracking and invoice completion processes. Smart Metering Optimize the manner in which energy usage is tracked. Examples of typical initiatives in this functional area include: Page | 9 . thereby optimizing travel between jobs and the delivery of spares/components in the most efficient manner. as well as reducing the overall consumable profile such as paper and print. Customer Billing Similar to Back Office operations – looking at ways of encouraging customers to accept paperless billing/invoicing arrangements. Reduce the load on paper and consumables through the use of more online media and potentially increase the “Green Brand” impact through online media usage and promotion. Product Marketing Strategic activity Manufacturing and Distribution This is a major area for many organizations and one in which ICT already plays a major role. through interaction with both the manufacturing process control and supply chain management.

Logistics In addition to improved transportation movements – look at packaging recycling as well as how specific shipments are constructed. the appendices to this document provide (i) examples of ICT solutions available in each area (ii) some sample implementation case studies. 10 | P a g e . In addition. In addition to the emissions avoidance the process delivered a financial benefit to EMC in terms of both internal cost reduction and increased revenue. EMC established a centralized change management tool to reduce travel and allow remote changes to be applied to equipment.Green Technology : Driving Economic & Environmental Benefits from ICT Smart Manufacturing Improved way in which ICT can control and manage the manufacturing process to optimize energy efficiency and reduce raw material movement. Detailed Analysis of Business Areas The following section outlines in detail the various activities and initiatives that could be driven out of the framework. (iii) a case study of the ICT Greening Framework. In the first two years of operation EMC has avoided over 650 metric tons of CO2 .

could lead to energy savings of between 5% and 40%. such as Building Energy Management Systems (BEMS). services and personnel corresponds to about 12% of total company costs. Only 47% of the S&P 500 companies answered the CDP questionnaire.5% of GDP . as opposed to 72% among the Financial Times 500. [47] A 2006 study by the European Telecommunications Network Operators Association and the World Wildlife Fund concluded that if 20 percent of business travel in the European Union (EU) Complexity of Implementation Low Medium High Implementation Benefit 3 Relative Environmental ROI High 3 2 2 1 1 1 1 2 2 3 3 3 2 1 Low Low Low Low High Relative Economic ROI Key area of improvement Smart Building & Infrastructure Smart Manufacturing Smart Energy Management Sustainable Energy Production Carbon Accounting & tracking Virtual Meeting Data-centre P a g e | 11 . [18] The potential total emissions avoidance from the implementation of smart building solutions could be as high as 1.''. [47] A Deutsche Telekom study showed that a video conference over a distance of 100 km uses less than 5% of the primary energy that would be consumed if the participants were to travel by car – much more with increasing distances and the use of air travel. [39] A programme in Holland found that radical forms of e-work can reduce space requirements from a standard 25 square metres per employee by 50% or more.Business Operation Function emissions by Industry Sector Overview Business operations have the most impact within the Financial services and public sector due to large back office processing (both human and computer) capabilities Most activity designed to decrease the organization’s environmental footprint takes place within this area.through inefficiency in their use of property.S. [29] A study by the UK Royal Institute of Chartered Surveyors (2002) concluded that UK businesses were wasting up to £18 billion a year – around 1. including hardware. [47] Studies have identified that advanced technologies in the facilities space. companies lag well behind their foreign competitors in climate risk disclosure. [30] According to the Carbon Disclosure Project (CDP). [55] A study within Scandinavia has shown that the total costs (which can act as a rough proxy for environmental impacts) of travelling to a business meeting range from 4 times greater than conferencing for a car journey within Scandinavia to more than 20 times greater for air travel outside Europe.68GtCO2e by 2020 [30] The implementation of ICT capabilities could lead to a reduction of approximately 7% of total building emissions. Overall gains limited due to the relative low level of emissions that are attributed to back office functions Low Medium High Financial Services Communications & High Tech Products Public Sector Resources Analysis The average ICT budget of organizations within the ICT industry. ''U. software.

such as audio or video conferencing. they might save about 25 million tons of carbon dioxide by 2010. of which $17 billion (less than 2 percent) was offset by innovation. [47] 16% of the companies used the internet for product design. [18] Key Example Activities Smart Office Print and output rationalization through move to print-to-file and print-on-demand Enterprise demand analysis to support futures pricing Data manipulation for improved analytic processing Integration of micro-generation to office locations Internal carbon accounting and chargeback across all business functions Tele-presence capabilities for international executive meetings Next Generation Enterprise data-centre 12 | P a g e . while only 5% used internet-based solutions to their support human resource management. 22 million more tons could be saved if just 10 percent of EU employees became telecommuters [48] A Bureau of Economic Analysis study showed that industry spent in the region of $102 billion in 1992 on pollution control.Green Technology : Driving Economic & Environmental Benefits from ICT were replaced by non-travel means.

S. 230 times the energy impact and 240 times the greenhouse gas effect of a ‘virtual’ one. at EU level this would mean a reduction of approximately 160. It has found that home-based staff spends 15% less time on calls and take 3.9 billion gallons from 1982 to 2005.9 MtCO2e. The public sector’s main environmental impact area is attributable to the high levels of staff servicing requests rather than technology based solutions. The research estimates that if this figure was matched by the UK as a whole it would reduce CO2 emissions by around 14. Overall benefits could be significant in the long-term due to the ability to deploy products that are supportable remotely by a remote workforce Benefits can be realized through building changes for large call centre type locations as well as testing labs Low Medium High Financial Services Communications & High Tech Products Public Sector Resources Complexity of Implementation Low Medium High Analysis 300.3% more calls per hour than call centre-based colleagues. [47] Implementation Benefit 3 Relative Environmental ROI High 3 2 2 2 3 3 3 1 1 1 2 2 1 1 Low Low Low Low High Relative Economic ROI Key area of improvement Smart Building & Infrastructure Smart Manufacturing Smart Energy Management Sustainable Energy Production Carbon Accounting & tracking Virtual Meeting Data-centre P a g e | 13 .2 billion lost hours [48] Telecom Italia’s Info412 call centre operation now has almost a quarter of its workforce e-working. distance travelled by service users and printing.S.000 tons per year. urban areas alone increased by 480 percent. [47] Power sector accounts for 24% of global emissions in 2002[30] Potential benefit from ICT adoption in improving electrical transmission could be over 2GtCO2e by 2020[55] It is estimated that India lost 32% of total generation output due to power grid issues[30] Research by the Department of Communities and Local Government in the UK found the web services of Sunderland City council saved around 80 tons of CO2 per year from reduction in staff time.Service & Support Function emissions by Industry Sector Overview Service based organizations are most impacted by emissions attributed to the support of sold products and the delivery of services to customers.000 tons[32] The amount of fuel wasted by congestion in U. [55] Increased use of ICT in motor systems could deliver a savings of up to 970MtCO2e by 2020[30] A physical answering machine has 20 times the material impact. from 500 million gallons to 2. This corresponds approximately to a reduction in emissions of 0.000 tons of paper could be avoided if an estimated 25% of printed directories printing were moved online. [48] Traffic congestion creates a $78 billion annual drain on the U. economy in the form of 4.

14 | P a g e . or low emission vehicles for support and maintenance teams Virtual helpdesk through “work from home” capability.Green Technology : Driving Economic & Environmental Benefits from ICT Key Example Activities Smart Buildings for support and maintenance locations Call home support from products for preventative maintenance Migration to hybrid.

1. reaching $578 billion by 2010. A plausible estimate for the ratio of commercial building energy consumption per book sold for traditional stores versus online stores is 16-1.65 million tons per year.com has both 20 times the inventory turnover and eight times the sales per square foot of a traditional superstore and it s warehouses consume about half the energy per square foot of retail stores. The dematerializing of paper could save up to 4. [55] In 2006.3 MtCO2 whereas paper and plastic dematerialization could achieve 4.Sales & Marketing Function emissions by Industry Sector Overview Core function across all organizations with relatively low level of emissions Highest source of emissions within Sales & Marketing attributed to movement of sales forces for customer visits so highest levels seen within Financial services and Product organizations Largest gains can be achieved through implementation of solutions to reduce travel such as virtual sales material and supporting remote access to the sales process Many benefits have been realized through movement to ecommerce solutions but second wave of activity expected due to increase level of connectivity of consumers Low Medium High Financial Services Communications & High Tech Products Public Sector Resources Complexity of Implementation Low Medium High Analysis A doubling in e-commerce over a ten year period.2 trillion of turnover in the US.3m tons (187 Mln metric tons) per decade[55] Downloading music could reduce CO2 emissions by 0. this could reduce emissions by about 2. digital distribution channels and more efficient inventory management could lead to a decline in the use of retail buildings by 1. [55] It is estimated that. estimated a total reduction in greenhouse gases emissions of 206. the vast majority of sales is in the B2B (business to business) segment which accounts for around 87% of the total online sales in Europe and for about $2. If each average office worker avoided printing only 5 pages per year. [55] Amazon. event tickets and digital downloads) totalled $182 billion. Combined the total CO2 emissions avoided per annum would be around 20 MtCO2. With a projected annual growth rate of 34% over the 2006 – 2010 period. the market is projected to triple.42MtCO2 per year from avoided CD manufacturing and shipping. European B2C e-commerce sales of goods and services (including online travel. [55] In the US e-newsprint could reduce emissions by 1.63 MtCO2 per year. [55] Both in US and Europe. [55] Implementation Benefit 3 Relative Environmental ROI High 3 2 2 2 3 3 3 1 1 1 2 2 1 Low Low 1 Low Low High Relative Economic ROI Key area of improvement Smart Building & Infrastructure Smart Manufacturing Smart Energy Management Sustainable Energy Production Carbon Accounting & tracking Virtual Meeting Data-centre P a g e | 15 .7 MtCO2e per year although the potential can be higher. in the US market.5 billion square 2 feet (140m ) and to a reduction in warehouse space by 1 billion 2 square feet (94m ).

the estimated 3. with many of the reasons for this difference (less floor space.Green Technology : Driving Economic & Environmental Benefits from ICT Research conducted by TIAX of Cambridge.9 million telecommuters in the United States reduced gasoline consumption by about 840 million gallons last year.. while curbing carbon dioxide emissions by nearly 14 million tons [48] Increased efficiency of economic activities – for example. [47] Key Example Activities Advanced route planning for sales staff Produce dematerialization through online sales material Product energy assessment and labelling Implementation of e-commerce solutions through the delivery of web-based sales channels to endcustomers Energy saving configuration on sales team mobile devices 16 | P a g e . less inventory) also being environmentally positive. one study of on-line book selling found that its costs per square foot were 50% less than a bookstore. Mass.

100 Mt CO2e. [55] Every tonne of freight transported by air for one kilometre results in 0.000 and 5. [41] Industry emits directly and indirectly about 37% of all CO2 emissions.6Kg of CO2 emissions. wind and solar power. 380 and 760 MtCO2e respectively. [32] Enabling driving conditions that minimize energy use (ecodriving) are estimated to improve efficiency by 5% to 20%. geothermal. [32] The global emission reduction potential available in 2030 by increasing efficiency in the industry sector. Under these assumptions possible benefits in terms of GHG emission reductions would sum to 57. [32] The books-on-demand market is expected to grow from approximately 20 billion books pages in 2006 to approximately 38 billion book pages in 2009. will be between 2. at a cost of US $100 per ton of emission reduction or less. Low Medium High Financial Services Communications & High Tech Products Public Sector Resources Complexity of Implementation Low Medium High Implementation Benefit 3 Relative Environmental ROI High Analysis A sixth of the world’s electricity and a third of new electricity now come from micro-power (on-site or decentralized energy production. [55] 3 2 2 2 3 3 3 1 1 1 2 2 1 Low Low 1 Low Low High Relative Economic ROI Key area of improvement Smart Building & Infrastructure Smart Manufacturing Smart Energy Management Sustainable Energy Production Carbon Accounting & tracking Virtual Meeting Data-centre P a g e | 17 . while load factors may be in the order of 50%.or biomass-fuelled plants) rather than from central thermal stations. Distribution considered key area of analysis within High-tech sector due to extension of the value chain to integrate manufactures on a global basis Majority of focus has been on reducing the impact of raw materials production and supply chain Significant benefits expected through implementation of solutions from Smart manufacturing and smart buildings Specific attention is given to organizations within the resources sector due to the availability of solutions for smart grid and sustainable energy production.003Kg for ocean transport. and waste. compared to just 0. small hydro. [55] Past research has highlighted that in developed countries at any given time 20 to 30% of all trucks on the road are circulating empty. such as waste-heat or gas-fired cogeneration. Contributions to the emissions in individual countries can vary from around 30% in advanced economies to over 80% in rapidly industrializing countries.[55] Using WBCSD 2030 projections for light duty vehicles three scenarios are analysed assuming that ICT could enable a 3%. 20% and 40% switch to public transportation by 2030.Manufacturing and Distribution Function emissions by Industry Sector Overview Manufacturing considered a significant area of focus within the resources and products sectors for emissions reduction.

Fuel-Cell. Gas Turbine) Integration of real-time monitoring of production processes with MRP and ERP systems Remote design teams through distributed CAD/CAM solutions Energy efficient device manufacture (stand-by improvement) 18 | P a g e .Green Technology : Driving Economic & Environmental Benefits from ICT The transport sector is considered responsible for 14% of global emissions [30] Optimizing logistics using ICT could result in a 16% reduction in transport emissions and 27% reduction in storage emissions globally. [18] Key Example Activities Smart Buildings for factories and warehousing On-demand manufacturing integrated with sales systems Advanced energy distribution with factories for reduced power loss (energy capacity on demand) Integration of micro-generation to production facilities (Wind.5 trillion[30] Logistics expected to grow by 23% between 2002 and 2020 in Europe[30] 80% of fleets in the UK have less than 5 trucks[30] Survey of the top 100 freight shipping companies found only 26% of importers and 28% of exporters reported on their emissions[30] The value of the potential savings through more efficient commercial road transport alone (161 MtCO2e) is estimated to be up to €33 billion ($52 billion) in Europe.1% of total energy consumption under optimistic assumptions in 2020. [30] Value of global logistics industry in 2005 was estimated at $3. [30] ICT-based SCM (supply chain management) could save 1.

000 a year for a business with 20. over the past five years. [40] The investment required to launch a large-enterprise data centre has risen to $500 million.S consumed about 61 billion kilowatt-hours in 2006. from $150 million.S households. which is increasing at a rate of 6 percent. [48] The cost of running data-centre facilities is rising by as much as 20 percent a year. The price tag for the biggest facilities at IT-intensive businesses is approaching $1 billion. [32] To date.Green ICT Function emissions by Industry Sector Overview Significant opportunities exist across most industry sectors with high potential for emissions reduction within Financial Services and Communications and High Tech industries. This is more than the electricity consumed by the nations colour televisions and similar to the amount of electricity consumed by approximately 5. producing about 700. [46] According to industry analyst firm IDC. the amount of energy used to store and handle data doubled. and by 2009 worldwide spending on IT consolidation is predicted to reach $25 billion. could allow for the same computing performance and reduce an organization’s total energy use by 75 percent. [46] Centralized ‘active power management’ software could save £175.000 tons of CO2 emissions (equivalent to the annual emissions of a typical gas-fired power station). with the average data facility using as much energy as 25. which is equal to saving 8. far outpacing overall IT spending. Scope of activity not limited to data-centre but also includes enduser based infrastructure as well as networking and communications Has received high level of activity over past 12-18 months due to high energy prices and level of marketing from ICT organizations Organization activity has slowed due to impact of economic slowdown but should remain a corporate imperative Low Medium High Financial Services Communications & High Tech Products Public Sector Resources Complexity of Implementation Low Analysis 18% of office workers never switch off their PC at night or weekends and a further 13% leave it on some nights each week.2 million servers have been virtualized globally. [40] Medium High Implementation Benefit 3 Relative Environmental ROI High 3 2 2 2 3 3 3 1 1 1 1 2 2 1 Low Low Low Low High Relative Economic ROI Key area of improvement Smart Building & Infrastructure Smart Manufacturing Smart Energy Management Sustainable Energy Production Carbon Accounting & tracking Virtual Meeting Data-centre P a g e | 19 . [40] Between 2000 and 2006. together with more energy efficient servers.000 households. more than 1. [32] It is estimated that data centres in the U. 80% of the IT organizations in the United States are actively consolidating IT.8 million average U.000 staff[46] 42% of executives responding to an Economist survey said their organizations do not monitor ICT-related energy spending.4 billion kilowatt-hours of electricity a year [48] Advanced cooling technologies.

the 3-year costs for powering and cooling a server are already between 1 and 1. [24] 8.Green Technology : Driving Economic & Environmental Benefits from ICT Within one media organization. the power consumption of a rack fully equipped with blade servers will increase from 15 kW (2005) to approaching 52 kW (in 2011). [40] According to Gartner. almost a third of the nearly 500 servers analysed had utilization rates below 3 percent. and nearly two-thirds were below 10 percent. specifically due to the dramatic rise in power density as a result of the disproportionately high growth rates of blade servers. [24] According to the Uptime Institute.4% of data-centre operational costs are attributed to electricity.5 times the procurement costs. A projection into the year 2012 suggests a costs ratio of 22:1 in the worst-case scenario and a ratio of 3:1 in the best-case scenario. [35] Key Example Activities Data-centre facilities re-engineering Data-centre consolidations and rationalization Virtualization of infrastructure (both data-centre and end-user) End-user device power saving and configuration Printer rationalization Application rationalization and re-engineering Network re-architecture Cloud computing. [24] An idling server still consumes about 60 to 70% of the energy compared to a server in normal production operation. software as a service and application service provision 20 | P a g e .

the strategy lever looks at potential changes in organizational strategy that can support significant changes in the environmental impact of the organization. While small changes to strategy could potentially have a major impact on environmental performance. standardized and optimized to drive efficiencies in operation that help improve application (and therefore process) efficiencies. the same is not normally true for small changes to the supporting infrastructure. Strategic changes will produce a cascading effect across the application and infrastructure levels of an organization. These levers provide the solutions to the identified green opportunities within each business area and can provide either Process a top-down approach through strategic change or a bottom up approach through infrastructure re-architecting. By adapting and tuning the strategy of an organization. various levers can be used to drive reengineering and solution development and to help enable the development of innovative solutions that are both green and provide true business change. Example: implementation of document workflow processes that require ICT applications and infrastructure to support the processes in the most efficient manner. Example: dematerialization. Application Strategy Infrastructure While each lever is not wholly within the ICT domain. there is an opportunity for ICT to drive performance improvements in business processes. These levers help ICT organizations understand how they can become active contributors to addressing the additional 98% of organizational emissions that result from activity beyond the ICT industry itself. ICT can help drive more efficient and greener processes. Process For many businesses. Applications Business applications drive and support business processes. Example: virtualization and consolidation of infrastructure to reduce energy costs and increase energy efficiency. To affect P a g e | 21 . infrastructure can become a true “platform for innovation” and provide the basis for the applications to run on in the most environmentally and financially efficient manner. be rewritten or even replaced. where a shift in sales strategy from physical product deployment to digital sales requires ICT solutions to enable the strategy.The ICT Levers Driving Innovation Infrastructure Application Process Strategy Manufacturing Sales & Manufacturing Sales & Marketing & Distribution Marketing Business Operations Service & Service & Support Support Within each of the business functions. Example: the deployment of collaboration applications and telepresence applications that improve the efficiency of information sharing processes through the better use of application technology. Moving beyond consolidation and optimization. the manner in which they conduct their business can be optimized and improved by looking at the underlying business processes and ensuring they are streamlined and optimized. ICT plays a critical role across all of them. change may result to the underlying processes and infrastructure required and ICT can be the enabler of these changes. Most business processes have an ICT component to them and by understanding how processes are supported by applications and infrastructure. These levers for green business innovation are described in the table below: Strategy Taking a top-down approach to change. Infrastructure IT infrastructure can be be consolidated. By understanding how these applications can be optimized to drive greater efficiencies.

business processes as well as the activities being undertaken. While many measurements exist already in various frameworks provided either through voluntary or regulatory organizations. The third axis provides the organization with a way of measuring and tracking the benefits that Manufacturing Sales & Marketing have been en delivered. There are a number of lifecycle measurement initiatives and processes available publicly that could be utilized within specific industries and geographies raphies to assist with understanding ICT innovation initiative impact. it is becoming necessary to in just under two years with a move beyond a simple energy efficiency model. Invariably each initiative will need an element of investment and should provide a payback in terms of operational efficiency. CPU Utilization. Without the ability to measure returns on investment. the ICT industry needs to work further to develop more measurements measure and metrics to enable better comparison of the potential impacts and benefits of their various green initiatives. It is recommended that team that was significantly smaller organizations nizations move towards a process lifecycle model that takes into account than a traditional team – saving both CO2 increasing activities (such as increasing ICT infrastructure for video not only time but prototype conferencing solutions) and balancing this against CO2 decreasing activities manufacturing and tooling costs by using digital prototyping tools. Although these these initiatives traditionally utilize metrics and measures such as Power Usage Efficiency. revenue enhancements or cost reductions along with the underlying measurement of a reduced CO2 footprint. organizations are unable to assess how effectively Business Service & Support or appropriately capital has been invested and the organization is performing. These metrics need to include the impacts on the people. Operations Three key metrics are important important to assess the relative performance of ICT in delivering change to the organization: Infrastructure Application Process Strategy Benchmarks KPI (Key Performance Indicators) ROI (Return on Investment) How are other organizations or ICT applications being measured and how can they be compared to peer groups (geographic.Green Technology : Driving Economic & Environmental Benefits from ICT major change within organizations. Measurements should cover all the activities a business is involved in to provide a more robust robu benefit analysis that can reveal the full extent of the CO2 impacts of any ICT initiatives more clearly. it is key to identify strategic change such as product dematerialization and a decoupling of economic growth from raw material usage. both economic and environmental. The Measurement view The initial two axes of the framework identify where changes can be made that will facilitate the introduction of innovation through the use of ICT. 22 | P a g e . ADEPT was able to produce a working aircraft engine prototype number of servers and other related measures. industry and organization size) siz How can the initiatives be driven over time and be tracked in terms of trend and overall outcome. It is also critical to continue measuring the impact of ICT initiatives. (such as reduced travel due e to the video conferencing solution). productivity improvements.

distance travelled and mode of travel • Desktop/Laptop utilization • Consumables consumed (toner/paper/etc) • Transportation and storage related emissions • Manufacturing related emissions • Emissions from disposal and recycling activities • Office area utilized/employee P a g e | 23 .Examples of measurements: • Raw material production and delivery emissions • Transport distances and modes used in delivery of service/product • Employee commute .

profit. growth and emissions of the organization in a diagrammatic form and allows for direct comparison against others. The benchmarking is supplemented by further analysis that examines the extent to which different functions within the organization are responsible for emissions output. however. 24 | P a g e . partners and competitors.Green Technology : Driving Economic & Environmental Benefits from ICT Make an Early Impact and Prioritize The framework helps identify where within the organization there are opportunities to use ICT to be greener and what types of ICT solutions and tools one can use. Narrowing the scope of the problem Identify areas with greatest environmental impact Perform detailed analysis of high impact areas Assess opportunities for ICT to improve business efficiency Implement ICT in the business to reduce overall environmental impact Implement ongoing monitoring 1 • Organisations need to know ‘where to look’ when assessing the reduction of environmental impact • Identify high impact business areas for further analysis Rationale 2 3 4 5 • Effects of the chosen action must be monitored and new opportunities identified and addressed • An ongoing measurement framework is put in place to determine trend improvements • Regular reports presented to leadership level • Management need to • All opportunities to use • Implementation must focus effort on ICT to reduce be carefully managed addressing high impact environmental impact and tracked to ensure problem areas of the problem area the environmental and need considered $ case is delivered • The highest impact areas are assessed in more detail to understand their effect • Projects should be scoped and costed in environmental and $ terms • Projects are delivered and tracked against business cases through clear benefits management • Measurable improvements in environmental impact Activity Output • Identification of where to focus detailed analysis • Details of where in the • Scoped and costed high impact division project portfolio remedial action should be taken Phased approach to implementation of the framework In the first phase of the analysis it is important to identify areas of significant impact and to undertake an initial benchmarking exercise to position an organization against peers. This snapshot shows the relative spend. Effective implementation. requires that a business focus its efforts on the initiatives that will provide the highest ROI from both a financial and green standpoint.

New technologies allow businesses and consumers to control and reduce their carbon footprint. accurate view of current organizational leading practices and areas where client extranet. and Internet improvements can be made. processes and technology capabilities. Service and Support (S&S). mail messages with collaboration workspaces. and as such has been viewed in the silo of the specific project for which it is needed. The process assesses the currently deployed level of ICT by examining the organizations’ people. but instead for these large-scale strategic efforts.$500. The challenge awaiting the industry is to effectively demonstrate how ICT can be used not just for individual process changes. Manufacturing and Distribution (M&D). P a g e | 25 . Jones Lang LaSalle adopted a Assessing the capability of the organization to leverage deployed technology gives an solution for its intranet. saving the company U.S. creating a platform for radical change in the way that products and services are produced and delivered. Sales and Marketing (S&M) and Business Operations (BO).Benchmark Analyse Benefit Assess Relative ICT Spend Current ICT Effectiveness Low High S&S M&D Re-assess Discuss Relative Environmenta l Impact Ba seline Relative Emissions Relative Profit BO Address Progress S&M Short Medium Long Time Relative Growth Low High Future ICT Effectiveness Size indicating relative emission levels The next phase of the process provides the organization with an analysis of the level of effective ICT usage across the main business areas.000 per year. Conclusion The ubiquity of ICT in business provides the sector with a unique opportunity to drive innovative change while actively reducing greenhouse gas emissions. ICT can become the “engine of the business”. sites to replace flurries of eThe final phase of the assessment provides the organization with an understanding of the expected environmental and economic benefits that could be achieved and information about the level of investment required. ICT has too often been considered a “driver for the business”. By viewing ICT strategically across the entire organization.

2007. GeSI. Autodesk.org/about [E] Autodesk example for Unterfränksiche Überlandzentrale eG.000 square kilometers in northern Bavaria. [1] The contribution of ICT to Climate Change Mitigation: World Economic Forum. HP. Applied Materials. but Mainly for Economic Reasons”. Cavanagh. Burton. Moshe Sne. HP Eco Solutions Programme. [B] Figures provided by CA from a ROI and savings calculation for a large client and a proposal to implement Operations Energy Management for CA. Laitner. [C] Various publications on Enel Spa Italy’s deployment of smart meters to 27 million consumers report savings of USD$500m per year with an investment of USD$2b. 2008. Karen. 19 September 2008. A full list of source reports is provided in the bibliography.. EMC.connectedurbandevelopment. Gartner. [6] Towards a High-Bandwidth. CA. time and money. Technology CEO Council. Mallon. Microsoft and through online research into publicly available case studies. BT. Microsoft. Autodesk.aspx [9] Smart 2020: Enabling the low carbon economy in the information age. EMC.. SAS. Germany. . Ehrhardt-Martinez.0. Cisco. http://www. American Council for an Energy Efficient Economy (ACEEE). Applied Materials. 2008. but not limited to. Version 1.microsoft. 2008.000 residents over approximately 1. Lülsfeld (ÜZ). Johnston. Accenture. J. Additional information taken from [A] “IOM Summit Poll Shows Interest in Green IT Growing Dramatically. Climate Risk [7] A smarter shade of Green: How innovative technologies are saving energy. CA. K. a regional electric utility supplying 125. 2005 [3] Low Carbon IT Solutions: Contributing to the first billion tons of global CO2 reduction with smart IT solutions. OSIsoft [5] Advanced Electronics and Information Technologies: The Innovation-Led Climate Change Solution. giving a payback period of 4 years [D] Cisco best practice example and http://www. [8] Microsoft report on Environmental Sustainable dashboards.com/environment/business_solutions/articles/dynamics_ax. 26 | P a g e . including. G. [4] Energy Management as a Corporate Strategy. Centre for International Agricultural Development Cooperation. D. Cisco. Gartner. Low-Carbon Future: Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions. [F] Cisco Whitepaper – “Economic & Green Benefits of Cisco Tele-Presence” [G] Case Study material provided by Accenture.. The Climate Group. Satyam and the WWF. HP. 2007 [2] ICT in water supply and Irrigation management. John. Gartner.Green Technology : Driving Economic & Environmental Benefits from ICT References The authors of this document acknowledge the subject matter expertise and input provided by various organizations in the creation and release of this paper.

7. 12. 23. 22.Bibliography 1. 5. 47. Social and Environmental Value? The Dawn Of Green IT Services Information Workplace Trends 2007 The dawn of Green IT Services Climate Futures: Responses to climate change in 2030 Energy Efficient Infrastructures for Data Centres Defining the Environmental Value of IT Assessment of Global Low-Carbon and Environmental Leadership in the ICT Sector. 54. 15. low-carbon future: Teleco-based opportunities to reduce greenhouse gas emissions Facts and Figures on E Waste and Recycling Addressing the challenge of energy efficiency through Information and Communication Technologies Green for Go: Supply chain sustainability ICT and e-Business in the ICT Manufacturing Industry: ICT adoption and e-business activity in 2006 A Sustainable E-Europe: Can ICT Create Economic. 40. 29. 32. by Gartner and WWF Achieving Agility: Defining Agility in an IT Context Defining the Environmental Value of IT Environmentally Sustainable IT: U. 34. 45. 56. 26. 21. environmental and social impacts Making Sustainability Real . Little BT BT Carbon Disclosure Project Cato Institute CERA CERA CERA Climate Risk Computer TakeBack Campaign EICTA Ernst & Young European Commission European Commission Forrester Forrester Forrester Forum for the Future Fujitsu Siemens & Knürr Gartner Gartner Gartner Gartner Gartner GeSI & The Climate Group Government Business Council HP ECO programme HSBC IDC IDC IDC IPTS Kaseya Lehmans Brothers McKinsey McKinsey National Intelligence Council NDRC. People Republic of China Oliver Wyman Oxford University Parliamentary office of Science and Technology The European Commission Technology CEO Council IPTS Time Magazine UK CEED UK Government United Nations University Uptime Institute WWF WWF How ICT sectors are transforming the economy while driving gains in energy productivity Advanced Electronics and Information Technologies: The Innovation-Led Climate Change Solution Advanced Configuration and Power Interface Specification Energy Consumption by office and telecommunications equipment in commercial buildings Abating Climate Change: What Will Be Done and the Consequences for Investors Energy Consumption by Office and Telecommunications Equipment in Commercial Buildings . 11. 30. 16. Business Should Learn From Europe Smart 2020: Enabling the low carbon economy in the information age The state of Green Government: A candid survey of Federal programme managers Contributing to the first billion tons of global CO2 reduction with smart IT solutions The Climate Confidence Monitor 2008 The growing importance of Green IT Driving reduced cost and increased returns form the green data centre The growing importance of Green IT: Findings from IDC's US Green IT survey The future impact of ICTs on environmental sustainability Green Computing: Using IT Automation to Achieve Energy Efficiency The Business of Climate Change Data centres: How to cut carbon emissions and costs Using energy more efficiently: An interview with the Rocky Mountain Institute's Amory Lovins Global Trends 2025: A Transformed World China's National Climate Change Programme Making Green IT a Reality: Customer Perspectives on the Impact of Storage Vendor Decisions on Power.2004 Conferencing at BT: Results of a survey on its economic.The energy future to 2030 Crossing the divide? The future of clean energy The fundamentals of Energy Security Towards a High-bandwidth. 55. 37. 20. 39. 36. 8. 50. 33. 31. 46.A Challenge for Regions Carbon Disclosure Project Report 2008: S&P 500 Do Environmental Regulations Increase Economic Efficiency? Global Energy scenarios for Strategic decision making . 35. 6. 48. 14. 10. 24. 41. 9. 49. 38. ACEEE ACEEE ACPI ADL Alliance Bernstein Arthur D. 44. Cooling. 28. 52. & Space in Enterprise Data Centres Six cases of corporate strategic responses to environmental regulation ICT and CO2 emissions A Sustainable Europe: Can ICT Create Economic. 17. 51. 18. 27. 13. 3. 19. 43. 25. 42. Social and Environmental Value? A Smarter shade of green The future impact of ICT on Environmental Sustainability Will the environmental lose out to the economy Future Scenarios: ICT-Enabled environmentally smart buildings Stern Review: The Economics of Climate Change Revisiting energy used to manufacture a desktop computer: Hybrid analysis combining process and economic inputoutput methods Four Metrics define Data Centre "Greenness" The first global IT strategy for CO2 reduction Saving the climate at the speed of light P a g e | 27 .S. 53. 4. 2.

Green Technology : Driving Economic & Environmental Benefits from ICT Appendix 1: Business Areas: ICT Key Activities and Examples Business Operations – Key Activity examples Example Smart Office Description Implementation of building management technology to reduce the heating and lighting cost for office locations through automated control of devices coupled with the use of advanced sensors to improve monitoring and reporting. Greater level of flexibility in workforce Reduction in operating costs for data centre facilities as well as increased energy efficiency and flexibility in infrastructure Reduction in wasted activity and associated saving of transportation and material Print and output rationalization through move to print-to-file and print on demand Enterprise demand analysis to support futures pricing Integration of microgeneration to office locations Tele-presence capabilities for international executive meetings Utilization of micro-generation to help in powering office locations “off-grid” and to provide input back to the grid when excess supply exists. such as weather data for transport conditions or physical storage container capacity monitoring 28 | P a g e . Utilization of advanced print technology to reduce printed output and utilization of file based printing to reduce operational costs of printing Detailed analysis of energy utilization across the organization to enable negotiations with supplier based on futures pricing rather than on spot energy prices Benefits Reduced energy consumption by facilities Reduction in consumable usage and technology footprint Long term reduction in energy costs together with improved budgeting for the organization Reduction in energy costs and revenue from excess capacity Reduction in travel costs and associated CO2 emissions. automation and orchestration capabilities within an organizations’ data centre Data manipulation for improved analytic processing Retention of data collected within the organization for advanced processing to support more efficient activity. The use of video conferencing solutions to reduce the need for travel and facilities for face-to-face meetings Next Generation enterprise data-centre Introduction of energy efficient data centre solutions and tools to enable virtualization.

lowcarbon future[6] Data EcoVision Solutions. fees for environmental remediation.a U. It reduced costs by $90. as well as energy and water conservation – Baxter turned a liability into an asset. which could reduce carbon emissions by 80%. EcoVision has produced a home touchscreen interface which provides consumers with real time feedback of electricity. At most companies. and more.3 million during that same three-year period. a Gold Coast based technology development company. while also improving survivability by up to 23 percent.Business Operations – Sample Use Cases Report Source Smart Meters Towards a high-bandwidth. while simple management improvements can reduce consumption by an additional 20 percent. Over a three-year period Baxter maintained its environmental-related costs at $88. uses an integrated control and management system which will facilitate cooperative management of resources in the energy and water supply chain. Energy use can be monitored at circuit level (eg lighting separate from general power) or at discrete appliance level. A regional ambulance service re-engineered their system to deliver an estimated 30 percent reduction in carbon footprint through the more effective distribution of ambulances across the region. Adoption of these measures by 2020 would lead to the avoidance of almost 60 MtCO2e in 2020. environmental fees for packaging and electronic goods. By careful accounting of its environmental costs – and efforts to contain them through such steps as reducing purchases of raw materials. Data-centre configuration The innovation led climate change solution[5] According to one assessment. actually coming out $2 million ahead. But Baxter’s leaders realized there was an opportunity contained within those costs. recycled water and gas usage. potable water.S. Implementing current best practices can lead to a significant 50% reduction. current trends in technology use will lead to a 10 percent reduction in energy requirements for data centres. that money would come off the bottom line.3m.-based maker of products used to treat kidney disease and other medical conditions – has seen growing costs from pollution control and waste disposal. Network Equipment Smart 2020[9] Route & Fleet Management Low carbon IT solutions contributing to the first billion tons of CO2 reduction with smart IT solutions[3] P a g e | 29 . Mobile infrastructure technologies currently available include network optimization packages which can reduce energy consumption by 44% and solar-powered base stations. an in-home EcoVision controller provides automation features to reduce energy consumption and phantom loads as well as shed loads in times of network constraint. Internal Carbon Accounting Microsoft report on Environmental Sustainable dashboards. In conjunction with various in-home sensors and timers. . Greenhouse gases relating to resource consumption are displayed in graphical form as well as photovoltaic solar power or other forms of renewable energy generation.[8] Baxter International Inc.

Green Technology : Driving Economic & Environmental Benefits from ICT Service and Support – Key Activity examples Example Smart buildings for support and maintenance locations Description Implementation of building management systems into an organization’s production facilities to reduce the energy consumption from heating. or low emission vehicles. hybrid or hydrogen to reduce emissions from unavoidable transport such as maintenance staff attending customer locations for hands-on-work The ability to utilize technology to provide call agents “from anywhere” using VoIP and thin client technologies Benefits Significant reduction in energy usage in buildings as well as reduced maintenance costs for infrastructure components Reduced downtime due to failures of devices Reduction in emissions from vehicles as well as financial saving from fuel costs Reduced travel and facilities costs and flexible workforce enablement Agile test and development environments while maintaining energy efficiency. cooling and lighting as well as providing improved maintenance and therefore greater efficiency from core building infrastructure. Call home support from products for preventative maintenance Migration to hybrid. for support and maintenance teams Virtual helpdesks through “work from home” capability Lab and testing system virtualization Using virtualization techniques within the development and testing area to reduce demand for physical infrastructure 30 | P a g e . fuel cell. The use of embedded monitoring technologies within devices that enable early detection and notification of potential failures Switch of vehicle technology from gasoline to either electric.

In total. detect a service outage. Sunderland City Council save around 80 tons of CO2 per year from reductions in staff time. the temperature is automatically reduced by 3 degrees. read usage information from a meter. The world's largest and arguably "smartest" smart meter deployment was undertaken by Enel SpA. Similarly. Due to the high telework uptake.1 billion Euros and the savings they are receiving in operation of 500 million Euros per year. P a g e | 31 . saving the company approximately $A270.Service & Support – Sample Use Cases Report Source Environmental Sensors The innovation led climate change solution[5] Data After learning that hotel rooms were left unoccupied for an average of 11.5 hours per day. In various publications Enel has estimated the cost of the project at approximately 2.0006 per year. an astonishing 4 year payback and a testament to the power of next-generation advanced metering systems. UK. the dominant utility in Italy with over 27 million customers. some hotels began installing small infrared sensors to detect when no one is in the room. distance travelled by service users. rather than go into standby mode when not being used. resulting in considerable savings for both the employer and employees. lowcarbon future[6] EME is an electricity distribution firm in the East Midlands. these technologies have saved as much as 37 percent of hotel heating costs. The workers save approximately $A 40 per week and an average of 10 hours each per week in commuting time. Smart-working Towards a highbandwidth. After 30 minutes. motion sensors in light ballasts turn off lights when no one is present and daylight sensors turn off lights in office buildings when artificial light isn’t needed. and remotely change the meter’s billing plan from credit to prepay as well as from flat-rate to multi-tariff. currently at a premium. Over a 5 year period beginning in 2000 and ending in 2005 Enel deployed smart meters to its entire customer base. Sky (the UK’s largest satellite broadcaster) released a satellite set-top-box with automatic functionality to turn itself off completely. The system provides a wide range of advanced features. detect the unauthorized use of electricity.000 km per week was saved by the 150 teleworkers (Hopkins & James 2001). EME reduced its amount of office space. time and money[7] Device efficiency In early 2007. and printing Smart Meters Various sources e-Government Low carbon IT solutions contributing to the first billion tons of CO2 reduction with smart IT solutions[3] A smarter shade of Green: How innovative technologies are saving energy. change the maximum amount of electricity that a customer can demand at any time. an average of 38. including the ability to remotely turn power on or off to a customer. Approximately 150 of its 469 staff at the Pegasus building tele-work 1 to 5 days per week.

Reduced fuel consumption by staff returning to charge devices Product dematerialization through online sales A move away from traditional product shipping to online channels.Green Technology : Driving Economic & Environmental Benefits from ICT Sales & Marketing – Key Activity examples Example Advance route planning for sales staff Description The use of tele-matics and geographical information systems to allow for the most time and cost effective routes to be planned Benefits Improved fuel efficiency by sales staff as well as reduced wear-and-tear on vehicles due to improved driving behavior Reduction in raw materials. for example music and software downloads rather than physical media Product energy assessment and labeling Implementation of ecommerce solutions through the delivery of web-based sales channels to endcustomers Energy saving configuration on sales team mobile devices Detailed assessment of device energy usage as part of the sales material to provide greater levels of information to consumers and support improved energy forecasting and measurement Inter-action with customers through web technology to reduce the need to travel to specific locations as well as reducing the size of the retail/sales locations Application of power saving configurations to laptops. Reduced heating and cooling requirements at sales locations Reduction in energy consumption by devices. mobile phones and personal information devices to extend life on battery power. transportation costs and material entering the waste stream as well as a reduction in capital costs for product purchasing Potential increased revenue through increased sales and product price premiums Decreased fuel consumption by customers. reducing the need to charge while also improving the productivity of the sales workforce through increased time in the field 32 | P a g e .

Tele-presence Low carbon IT solutions contributing to the first billion tons of CO2 reduction with smart IT solutions[3] A typical Halo studio uses 2. the Apple iTunes Store has saved about 275 tractor trailers worth of CDs from being manufactured and shipped and is adding to that by about five tractor trailers worth per week. lowcarbon future[6] ICT enabled consumers Low carbon IT solutions contributing to the first billion tons of CO2 reduction with smart IT solutions[3] Product Dematerialization Various Sources P a g e | 33 .000 CDs). maxi cabs travel along a fixed route every 15-30 minutes in five subburbs to provide commuters easy access to and from their local train stations. has offices all over the world and a highly mobile workforce. Looking at this another way. the company has set a worldwide target of reducing its own air travel by 20%. or approximately 166 million CDs.000 miles high. lowcarbon future[6] Tele-presence Towards a high-bandwidth. two-day-office programme with its staff. Assessments conducted found that retails could reduce wasted signage and other printed marketing material by up to 90 percent. one developer of telepresence conferencing facilities. Since adopting the technology internally. Malta Information Technology and Training Services Ltd (MITTS) decided on a three-day-telework. Total consumption is 58 kilowatt-hours per day of electricity. Retail marketing automation can help eliminate the waste and costs associated with printed materials by printing on demand. an information technology service has utilized a hybrid approach to telework to maximize the opportunities and overcome challenges associated with telework.Sales & Marketing – Sample Use Cases Report Source Route & Fleet Management Towards a high-bandwidth. In Malta. If you tipped over this pile. this pile of CDs (in their cases) would reach over 1. This way they have managed to retain skilled working mothers who could not commit to a full office-based week Cisco Systems. Smart-working Towards a high-bandwidth. lowcarbon future[6] Data Brisbane City Council (located where?) is currently trialling a personal public transport (PPT) system which operates outside the Translink network. when and in the location they are needed as opposed to being printed at a central location and then distributed. In early January 2007. it would extend more than one-third of the way from New York to LA. The Australian division of Cisco has already reduced air travel by 16% in less than one year. Through an agreement with Black and White Cabs Pty Ltd. Stacked one on top of each other. Steve Jobs announced that Apple had sold over 2 billion songs via the iTunes Store. bus interchanges and shopping centres. If a standard tractor trailer can move 36 tons of product (or about 605. A round trip flight for three passengers from London to Tokyo generates the same level of greenhouse gas emissions as a Halo Studio located in Europe for an entire year. The service only runs during peak hour and costs the commuter $1 for each trip.43 Kilowatts of electricity per hour over a 24 hour period. A CD along with a slim plastic case and one or two pages of liner notes weighs about 60 grams.

Greater levels of device customization to match user requirements more accurately Implementation of smart transmission capabilities within large factories to reduce loss on transmission links that are not in use Benefits Significant reduction in energy usage in buildings as well as reduced maintenance costs for infrastructure components Reduction in stock levels and wastage due to greater prediction on resource requirements Reduction in energy usage On-demand Manufacturing integrated with sales systems Advanced Energy Distribution with factories for reduced power loss (energy capacity on demand) Integration of microgeneration to production facilities (Wind. enabling virtual teams to be engaged in the process without the need to travel Reduction in energy costs and potential revenue from re-sold energy Reduced wastage from inefficient processes Energy efficient device manufacture (stand-by improvement) Implementation of improved device stand-by technology to reduce the energy consumed by devices either in stand-by mode or acting as vampire draw Reduce time to design as well as reduced transportation and prototype manufacturing costs Reduce energy costs for the organization 34 | P a g e .Green Technology : Driving Economic & Environmental Benefits from ICT Manufacturing and Distribution – Key Activity examples Example Smart Buildings for Factories and Warehousing Description Implementation of building management systems into an organization’s production facilities to reduce the energy consumption from heating. accurate stock data and reduced wastage from inefficient processes while providing management with more accurate real-time reporting metrics Use of wide area collaboration tools to share design work remotely. cooling and lighting as well as providing improved maintenance and therefore greater efficiency from core building infrastructure Integration of the manufacturing production line with webbased ordering systems to support build-to-order and buildon-demand. allowing use of locally produced power first as well as the re-sale of excess capacity back to the grid Integration of sensors on the production line with the controlling software and central systems to enable improved energy accounting. Gas Turbine) Integration of real-time monitoring of production processes with MRP and ERP systems Remote design teams through distributed CAD/CAM solutions Automated control of micro-generation capabilities to integrate with grid provided power. Fuel-Cell.

50%. base-loaded operating configuration consistent with the design specifications. expansion of the irrigated area and yield increase.3 percent Supply chains that can be optimized to make the most of ocean transportation could have significant benefits. Over the course of a year. Armed with this asset performance data. the market dictated that it was run in a cycling. Applications were developed and rolled out to the entire fleet to assist operators in achieving optimal performance. water consumption and sewage as well as air pollution at production sites or in office building was deployed at a Hungarian company that produces woodern furniture. part-load operating mode. Instead of running equipment in a steady-state. The organization removed traditional methods and tools and used a plant wide real-time monitoring solution’s data to generate empirical models of plant performance. the equipment never ran the way it was designed to operate. Through the monitoring and calculations the customer was able to cut energy consumption and its corresponding contribution to greenhouse gas emissions by 11. the organization designed performance improvement initiatives around benchmarking best-in-class operating performance. Due to electric market oversupply conditions. Smart Logistics Low carbon IT solutions contributing to the first billion tons of CO2 reduction with smart IT solutions[3] Web based report[4] Benchmarking systems P a g e | 35 .000 tons of CO2e A large US power company began to explore new ways of using realtime performance data to identify performance improvement opportunities in its equipment. HP was able to shift more than 250 containers of notebook computers from air to ocean shipments. saving approximately 4. This approach of using advanced data systems and leveraging real-time performance management platform resulted in $50 million of fuel savings over a two year time period.Manufacturing and Distribution – Sample Use Cases Report Source Advanced Water Management ICT in Water Supply and Irrigation management[1] Data Adoption of ICT and automation can enhance water use efficiency in irrigation by 10% . increased yield per land and water unit by 20% 100% and improved produce quality. Building Management System Low carbon IT solutions contributing to the first billion tons of CO2 reduction with smart IT solutions[3] A tool which allows customers to monitor and control parameters such as energy usage. Investment capital can be recovered in 1 – 3 years by saving water and energy.

Rationalization enables a reduction in quantity of underlying infrastructure. Reduction in energy used by print devices and consumable usage. Systems such as email. CPUs as well as peripheral devices such as printer and plotters Reduction in the number of printers and output devices used within the organization through the provision of technologies associated with printing to files as well as implementation of print on demand Reduction in the number of applications deployed within the organization through identification of core services and providing subscription type architecture. Power settings can be applied to monitors. Software as a service and Application Service provision Connection to centralized services that are operated to take account of scalability benefits gain through operating multiple organizations systems on core infrastructure. Re-coding of existing in-house applications may also be undertaken to improve the efficiency of processes Rationalization of networks to remove non-required redundancy. Office locations re-engineered to provide solutions such as VOIP. Virtualization in the data-centre will enable significant reduction in both servers and storage while end-user devices can be consolidated. movement to pod style enclosed units. power over Ethernet and wireless. ERP and web services can be provided when based on common software packages. End-user device power saving and configuration Printer rationalization Application rationalization and re-engineering Reconfiguration of operating system components to reduce energy consumption when the devices are not being utilized.Green Technology : Driving Economic & Environmental Benefits from ICT Green ICT – Key Activity examples Example Data-centre facilities reengineering Description Re-design of the data-centre facility to improve the heating and power requirements. Selection of locations based on environmental performance (facility performance and location temperature characteristics) Benefits Reduction in power consumption associated with cooling the facility through improved thermo-dynamics Reduction in energy requirements due to ability to better leverage shared service components. localized cooling solutions for hotspots and high performance workloads and the use of free cooling through outside air Rationalization in the number of data-centres supported by an organization through consolidation of infrastructure in to more efficient locations. paper and toner Reducing in energy usage through a reduction in infrastructure deployed to support the organizations processes Reduction in network device power usage through removal of legacy devices and waste reduction Reduction in cost for processing as well as changing capital expenses to operational cost Network re-architecture Cloud computing. support virtualization while reducing the need for on-site staff Reduction in energy requirements due to removal of base load requirements on underutilized components as well as reduction in capital spend on additional infrastructure refresh Reduction in energy utilized Data-centre consolidation and rationalization Virtualization of infrastructure (both datacentre and end-user) Implementation of next generation virtualization technologies to reduce the number of physical devices and increase the level of utilization on the items deployed. This will include a reconfiguration to a hot/cold aisle layout. 36 | P a g e .

The university immediately began a successful campaign to reduce this figure. Using virtualization technology to reduce and consolidate the environment.6 million (a savings of 67 percent) and eliminating nearly 3.357 of its servers to just 231 physical machines. Storage virtualization technologies. which could reduce carbon emissions by 80%. Verizon Wireless is now saving $20 million annually.400 courses in more than 500 specializations. The first step was assembling a cross-functional team whose members represented every step in a customer's experience. Purdue’s information technology (IT) staff faces an extraordinary challenge of information growth and the attendant need for increased storage. Between 2006 and 2007. They took 18 months to standardize and implement a single set of business processes that would ultimately make it possible to ensure that every customer who walked into one of the company's 2. 19. Implementing current best practices can lead to a significant 50 percent reduction. store operations and support.400 stores would walk out with an activated. servers and systems. In May 2006. coupled with server virtualization software. while simple management improvements can reduce consumption by an additional 20 percent.726 pounds of CO2 emissions over a three-year period. current trends in technology use will lead to a 10 percent reduction in energy requirements for data centres. EMC has been able to virtualize 1.Green ICT – Sample Use Cases Report Source Network Equipment Smart 2020[9] Data Mobile infrastructure technologies that are currently available include network optimization packages which can reduce energy consumption by 44% and solar-powered base stations. ready-to-use wireless phone. According to one assessment. By consolidating 13 billing systems into a single enterprise system. power and cooling) savings of more than $4. Data-centre configuration The innovation led climate change solution[5] Device Power Savings Server Virtualzsation Smarter Shade of Green[7] Application Rationalization Various Sources P a g e | 37 . from marketing and sales to network operations. This energy reduction represents 35 kilowatts of power.000 staff members and 7.000 students.159. The expected adoption of these measures by 2020 would lead to the avoidance of almost 60 MtCO2e in 2020. with more than 69. reduced Purdue’s administrative energy footprint by almost 20 percent. Storage Virtualization Smarter Shade of Green[7] Purdue University in Indiana is one of the leading research institutions in the United States. overall electricity consumption fell by 2% . the University of Leeds found that 70% of its desktop computers ran 24/7. resulting in infrastructure (space.previously it had been rising at a rate of 3% PA.

usage. 26% reduction in warehouse electricity consumption through site rationalization 33% reduction in carbon emissions for vendor inbound activities through consolidation of movements 11% saving on distribution costs as part of a 3-year change programme Deployment of solutions to 13 major offices lead to a saving of over $9m in avoided transportation and associated hotel accommodation in the initial 10 months of use Additional reduction in carbon emissions equivalent to approximately 2. procurement.000 annual savings at pilot building $4M estimated savings upon project completion Energy Consumption reduction: Electricity -12%. Green Business Innovation Benefits Example Initiatives Retail Location Energy Management Benefits Delivered The top six energy related initiatives identified that carbon emissions reductions could be achieved to save 65 tons of CO2 per annum across four sites Potential savings of between 6% .Green Technology : Driving Economic & Environmental Benefits from ICT Appendix II: Green Business Innovation & Green ICT: High-Level Analysis The following provides a high-level analysis of benefits from specific innovation initiatives for both Green Business Innovation and Green ICT.628 saving on utility bills during 1st year of implementation alone $50. chilled water -10% Achieved over $10m in savings on a $120m spend purely from operational improvements and behavioral change and targeted further $10m through information management.14% of energy costs were identified 2 year pay back on most initiatives $334. Steam -45%.500 tons Solution payback in under a year Smart Buildings Implementation Enterprise Energy Management Software Implementation Carbon Network Logistics Optimization Tele-presence 38 | P a g e .

Newer building designs and core facilities infrastructure should enable a ratio of 1:1. The exact level of benefit will depend on the maturity of the implementing organization in terms of ICT and the level of activity already undertaken in optimizing the technology environment. Improvements to the energy efficiency of the facility itself could deliver significant environmental and economic benefits to the organization. providing improved user experiences Due to the low levels of utilization across typical infrastructure components significant reductions in the number of deployed instances are achievable.6 to be achieved providing a saving of approximately 50% on both power consumption and emissions. Due to improvements in performance of newer equipment. Typical legacy data centres today operate with an efficiency ratio of around 1:3 (where one unit of power reach the computer infrastructure from every 3 delivered to the centre). Area of Focus Unused device power-down Data centre facilities Environmental & Economic Many organizations have not implemented processes or systems to track the deployed infrastructure leading to legacy systems drawing power while delivering little or no business benefit. Simply auditing the environment to identify these devices could lead to a reduction in infrastructure of over 10% together with power savings of between 10-20%. Due to increased capability from processing systems and transfer rates from data storage systems both interactive and batch workloads are likely to be undertaken more quickly.Green ICT Benefits Due to the increasing maturity of solutions within the Green ICT arena. refreshing hardware could enable a reduction in infrastructure requirements of between 15% to 35% together with associated power savings which could be as high of 20%. P a g e | 39 . Utilization Ratios Servers: PCs: Direct attached storage: Network Storage: Hardware Refresh Infrastructure Virtualization 5-15% 10-20% 20-40% 60-80% Reduction in infrastructure of between 5% and 20% for production systems and 5-50% for development environments should be achievable. The implementation of virtualization technologies also enables a reduction in the need to size for peak load as additional capacity can be provisioned from a shared pool as necessary. The ability to rapidly provision infrastructure for new tasks will also lead to a reduced time to initiate development projects as systems can be created automatically as required instead of the physical deployments of new infrastructure. organizations are likely to see benefits in the following ranges from implementation of specific technology solutions. Improved facilities design will provide the organization with a core data-centre that should offer improved levels of reliability to users with less downtime. using more energy efficient processing and power technology.

Using the ratio of 10:1 this would mean a reduction in infrastructure power usage by over 20% as typically older applications will be hosted on less efficient infrastructure. Changing the type of device should support a reduction in the deployed footprint. Many data-centres are approaching. Typically each application will have an associated technical environment including production.000 square feet in size.000 per sq foot. Faster. centralized multi-function devices could reduce the number of devices deployed within the organization by a factor of 5 saving both capital expense as well as operational costs for maintenance and consumables. As organizations grow and adapt additional applications are deployed to provide new business functions but rarely does any activity take place to rationalize or reduce the application portfolio. Printers and fax machines in active state will use anywhere up to 30 times the energy when compared with an idle state providing potential saving of over 1. In addition as much as 70% of production data is never accessed but is repeatedly mirrored and backed up requiring storage infrastructure and staff.Green Technology : Driving Economic & Environmental Benefits from ICT Next Generation Data centre While the implementation of facility improvements. and would be usually need to be around 50. Application & Data Rationalization End-user Device Power Management Output Rationalization and Printer Consolidation 40 | P a g e .000 device organization with annual savings of $65.$5. Extending the life of a data-centre could therefore avoid a capital outlay of anything of up to $250m for an organization.000KWH a year per device. While the benefits for changing the power setting on a single desktop may be small (savings of around 75%. Deployment of usage and time based configurations can be completed quickly and easily and could provide a 1. The paper used by printing actually causes 80% of laser printers environmental impact so while the implementation of duplex and printon-demand technology could reduce output by over 50% the environmental benefits would be significantly greater. power capacity. Undertaking a rationalization programme should provide a roadmap to reduce the application estate and release infrastructure for other required business tasks. or have reached. The implementation of the combined technologies will provide the organization with a much more flexible infrastructure capability that is able to react quickly and efficiently to changes in business demand and strategy. Typical data centres cost in the region of $400 . When a large telecoms organization undertook an assessment of their application estate it was identified that they had 10 times the number of applications than they actually required.000. automation and hardware refresh will deliver individual benefits the combination of all strategies can enable a significantly great economic benefit. virtualization. both of which contribute to the organizations environmental footprint. depending on the location and power loading.000 pages per year. Additional savings could be delivered through a reduction in the need to cool the office due to wasted desktop heat production. or $65 a year per desktop could be achievable) the benefits across the enterprise are significant. Once reached organizations are unable to deploy infrastructure into locations and will be required to build additional datacentre capacity. testing and development systems. Through improved print management an organization could also significantly reduce the typical output per office user from the typical 12.

The objective of P a g e | 41 . This would be critical in ensuring assessment. WEF Framework – Business Area Analysis Utilizing the framework developed by the WEF. This data focused on the as-is status of the process at time of capture. While the majority of the functions were performing well. LEM wanted to embark on a programme of work that would enable them to examine their sustainability/green objectives. highlighting those operational areas that could yield potential benefits. This provided the management team with the necessary data to understand exactly where improvements could be made and identify which changes merited consideration to support sustained competitive differentiation in the marketplace. The organization’s CEO was aware due to increased media coverage that more stringent levels of regulation would be introduced effecting taxation based on the level of emissions that the organization was producing. The presentation included comparative information on organizations operating in a similar high-tech manufacturing environment. A decision tree was constructed that depicted each of the Business functions to be analysed. relative to their current mode of operation. LEM’s operational management team were presented with the initial analysis. the first step that the organization took was to conduct an initial workshop where each of the core business areas was assessed.the results for LEM were clear. in order to start the next part of the analysis and to-be solution development process. A workshop analysed each of the key Business activities/functions of LEM which were then allocated into an appropriate Business Area within the Framework. Details were captured from both key experts across the organization. definition and execution of robust solutions that would not only decrease their overall CO2 footprint but also improve overall profitability of the company. WEF Framework – ICT Levers for Innovation Coming out of the Business Area analysis .. One of the key challenges in initializing the programme was to understand how they could best structure their analysis and thinking. Based on the results. Their energy costs had been increasing while revenue had remained relatively consistent. as well as existing IT systems to determine the level of emissions caused by the main business activities of LEM. LEM management established a “Green Team” to move the analysis forward and identify what specific changes were required. subsequently driving an analytical phase to determine what actions could be taken to improve their overall CO2 footprint. The next element of the framework was then introduced.Appendix III: Case Study: Using the ICT Greening Framework Management at a Large Enterprise Manufacturing (LEM) company had raised concerns about their performance in relation to their Green and Sustainability Agendas. the level of emissions being produced within the Manufacturing and Distribution business area were significantly higher than LEM’s closest competitors.

The core recommendations to remedy these two areas were the implementation of an advanced logistics system and an integrated building management system. highlighting specific issues which could be addressed through innovative ICT solutions. were able to calculate benefits delivered by the programmes as well as the expected costs for implementation. As issues were identified the team were able to drill down. It calculated a series of ‘to be’ targets and a set of KPIs that could be tracked throughout the duration of the programme to ensure that the ROI was indeed achievable and being met. The framework assessment provided LEM management with an understanding of the benefits. or could. it had not implemented additional modules around logistics due to cost constraints. 42 | P a g e . The “Green team” were able to produce a standardized set of reports that highlighted the returns to the organization for presentation to the operational management team. by . Heating systems competed with air-conditioning units on a daily basis. The framework provided details of the types of activities that should.using the Measurement aspects of the framework the ‘Green Team’ were able to develop an ‘as is’ baseline to each of the initiatives identified. It became clear that while LEM had invested heavily in a new ERP solution to provide detailed production process information to management. In addition. Using data from organizations that had previously undertaken similar activities LEM. A Dashboard was constructed for LEM that enables all stakeholders to clearly see the overall programme performance at a glance. the team were able to gain a greater understanding of how investment into ICT had been made and identify the potential shortfalls across the four key ICT levers of innovation. both environmental and economic. It also identified that little investment had been made into the facilities themselves. that could be achieved by making these two improvements. WEF Framework – Measurement Prior to implementation of the recommendations. Having interviewed experts within the manufacturing & distribution and ICT functions. nor were they turned off at night. Lighting remained switched on 24x7 despite areas not being occupied for much of the day. from a strategic perspective – any future company projects. have been undertaken and delivered a maturity assessment of the ICT capability associated with the business processes. regulatory and governmental directives were introduced that would ultimately have to shape the solution.Green Technology : Driving Economic & Environmental Benefits from ICT the ICT Levers for Innovation is to examine each of the Business Functions identified in the previous phase but now from a process efficiency and underlying IT perspective. .