Green Technology Economic and Environmental Benefits From I CT

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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Table of Contents
Summary .................................................................................................................................................. 3 Background .............................................................................................................................................. 5 Opportunities outside the IT Budget .......................................................................................................... 7 A Framework for Better Leveraging ICTs 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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Background
The ICT industry is responsible for approximately 2% of global CO2 emissions. 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 - Gartner/HP/McKinsey/WWF[1]
Throughout 2007, a large number of experts from industry, government and NGOs collaborated to synthesize their perspectives on the role of technology in mitigating climate change. The resulting paper, The Contribution of ICT to Climate Change Mitigation was presented last year in Davos. In response to this paper, the Governors of the IT and Telecoms Industries approved the seven points listed below. These ideas demonstrate the pivotal role of technology, across all industries and governments, in securing a low-carbon future.
Smart Buildings & Solutions to reduce the level of emissions from buildings and core infrastructure Infrastructure through improved design, monitoring and control, as well as engineering and construction industry support via appropriate tools to reduce energy needs.
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, dematerialization of products at both the early design and delivery stages, and improvement of logistics for the delivery of final products to end customers and consumers. Increased capabilities in the supply of energy to users through technologies to improve measurement, 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, and the efficient management of specific implementations.
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.
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Virtual Meetings ICT solutions to enable and encourage remote collaboration with individuals, governments and organizations to reduce or remove the need for individual travel.
Increased Energy Efficiency of Data Centre Technologies and Electronic Devices
Solutions to increase the energy efficiency of data centre infrastructure, solutions through virtualization, consolidation and new technologies and solutions to increase the power efficiency of mobile and consumer electronic devices. Solutions include utilizing virtualization and consolidation technologies to re-locate data centres to lower cost and cleaner energy locations while maintaining existing employee premises.
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 ICTs capabilities to drive a green agenda. 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.
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Opportunities outside the IT Budget

Many organizations have incorporated a Green IT agenda, but it is often restricted to the traditional IT environment i.e; the data centre. ICT, however, is pervasive in many areas of business and not strictly limited imited to the IT Department and its sphere of influence. 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. This will become essential in successfully succes meeting the demands of environmental performance, regulation and the need to both reduce costs and maximize revenue.
ICT is pervasive within the business environment. It can be found in data-centres, data centres, desktop and laptop devices, embedded processors, software in mobile phones, washing machines, building climate control, manufacturing tools, security systems, GPS receivers, vehicles, games consoles, domestic heating units and many other electronic devices. ICT solutions can assist in bringing all of these devices, software, data and infrastructure together to enable more efficient business, economic benefits and environmental benefits. By leveraging ICT capabilities, CEOs, CIOs and CFOs are well placed to drive positive change in moving to a less energy rgy and material intensive society and economy. To help understand where ICT can have an impact, a standardized framework has been developed that helps an organization look at where ICT can become an enabler of strategic economic and environmental benefits, benefi thus moving beyond the traditional focus of looking for energy savings from ICT infrastructure alone. 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. In addition, 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.
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A Framework for Better Leveraging ICTs 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. 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.
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. We have identified four main business functional areas: business operations, service and support, sales and marketing, and manufacturing and distribution.
Business Operations
This area relates primarily to Back office functions such as Management, Finance, HR, and the IT Organization and includes the back office infrastructure. 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, utilizing advanced Video Conferencing and better collaboration capabilities Dematerialization Paperless business transactions such as e-billing and e-procurement, as well as the movement to electronic storage of data. Data-centre Data centre consolidation, virtualization, automation and orchestration Procurement The adoption of company-wide Green products and services
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Service & Support

This area focuses on how companies provide services to their customers. Examples of this functional area include: The ability to control and co-ordinate field service staff in the most effective manner, thereby optimizing travel between jobs and the delivery of spares/components in the most efficient manner. Smart Metering Optimize the manner in which energy usage is tracked, monitored and billed. Customer Call desks The ability to optimize call centre locations and to reduce heavy usage of IT through optimized Desktop and Voice Infrastructure. Customer Billing Similar to Back Office operations looking at ways of encouraging customers to accept paperless billing/invoicing arrangements. Field Operations
Sales and Marketing

The area describes how to drive a smarter way of conducting interactions with partners, suppliers and customers through reduced travel and more collaboration, as well as reducing the overall consumable profile such as paper and print. 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, tracking and invoice completion processes. 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. Provide tools and information to help marketing and strategic functions follow an enterprise wide environmental agenda.
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. Examples of typical initiatives in this functional area include:
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Smart Manufacturing Improved way in which ICT can control and manage the manufacturing process to optimize energy efficiency and reduce raw material movement. Logistics In addition to improved transportation movements look at packaging recycling as well as how specific shipments are constructed.
Detailed Analysis of Business Areas

The following section outlines in detail the various activities and initiatives that could be driven out of the framework. In addition, the appendices to this document provide (i) examples of ICT solutions available in each area (ii) some sample implementation case studies, (iii) a case study of the ICT Greening Framework.
EMC established a centralized change management tool to reduce travel and allow remote changes to be applied to equipment. In the first two years of operation EMC has avoided over 650 metric tons of CO2 . In addition to the emissions avoidance the process delivered a financial benefit to EMC in terms of both internal cost reduction and increased revenue.
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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 organizations environmental footprint takes place within this area. 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, including hardware, software, services and personnel corresponds to about 12% of total company costs. [18] The potential total emissions avoidance from the implementation of smart building solutions could be as high as 1.68GtCO2e by 2020 [30] The implementation of ICT capabilities could lead to a reduction of approximately 7% of total building emissions. [30] According to the Carbon Disclosure Project (CDP), ''U.S. companies lag well behind their foreign competitors in climate risk disclosure. Only 47% of the S&P 500 companies answered the CDP questionnaire, as opposed to 72% among the Financial Times 500.''. [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 1.5% of GDP - through inefficiency in their use of property. [47] Studies have identified that advanced technologies in the facilities space, such as Building Energy Management Systems (BEMS), could lead to energy savings of between 5% and 40%. [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. [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. [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
3
3
Low Low
Low Low
High
Relative Economic ROI
Key area of improvement
Smart Building & Infrastructure
Smart Manufacturing
Carbon Accounting & tracking
Virtual Meeting
Data-centre
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were replaced by non-travel means, such as audio or video conferencing, they might save about 25 million tons of carbon dioxide by 2010; 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, of which $17 billion (less than 2 percent) was offset by innovation. [47] 16% of the companies used the internet for product design, while only 5% used internet-based solutions to their support human resource management. [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
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Service & Support

Overview
Service based organizations are most impacted by emissions attributed to the support of sold products and the delivery of services to customers. The public sectors main environmental impact area is attributable to the high levels of staff servicing requests rather than technology based solutions. 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
Low
Medium
High
Analysis
300,000 tons of paper could be avoided if an estimated 25% of printed directories printing were moved online. This corresponds approximately to a reduction in emissions of 0.9 MtCO2e. [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, 230 times the energy impact and 240 times the greenhouse gas effect of a virtual one. [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, distance travelled by service users and printing. The research estimates that if this figure was matched by the UK as a whole it would reduce CO2 emissions by around 14,000 tons per year, at EU level this would mean a reduction of approximately 160,000 tons[32] The amount of fuel wasted by congestion in U.S. urban areas alone increased by 480 percent, from 500 million gallons to 2.9 billion gallons from 1982 to 2005. [48] Traffic congestion creates a $78 billion annual drain on the U.S. economy in the form of 4.2 billion lost hours [48] Telecom Italias Info412 call centre operation now has almost a quarter of its workforce e-working. It has found that home-based staff spends 15% less time on calls and take 3.3% more calls per hour than call centre-based colleagues. [47]
3
High
3 2
2
2 3
3
1
1
1
2
2
Low Low
Low Low
High
Smart Manufacturing
Virtual Meeting
Data-centre
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Smart Buildings for support and maintenance locations Call home support from products for preventative maintenance Migration to hybrid, or low emission vehicles for support and maintenance teams Virtual helpdesk through work from home capability.
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Sales & Marketing

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
Low
Medium
High
Analysis
A doubling in e-commerce over a ten year period, estimated a total reduction in greenhouse gases emissions of 206.3m tons (187 Mln metric tons) per decade[55] Downloading music could reduce CO2 emissions by 0.42MtCO2 per year from avoided CD manufacturing and shipping. The dematerializing of paper could save up to 4.3 MtCO2 whereas paper and plastic dematerialization could achieve 4.7 MtCO2e per year although the potential can be higher. [55] It is estimated that, in the US market, digital distribution channels and more efficient inventory management could lead to a decline in the use of retail buildings by 1.5 billion square 2 feet (140m ) and to a reduction in warehouse space by 1 billion 2 square feet (94m ). Combined the total CO2 emissions avoided per annum would be around 20 MtCO2. [55] In the US e-newsprint could reduce emissions by 1- 1.65 million tons per year. If each average office worker avoided printing only 5 pages per year, this could reduce emissions by about 2.63 MtCO2 per year. [55] Amazon.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. A plausible estimate for the ratio of commercial building energy consumption per book sold for traditional stores versus online stores is 16-1. [55] In 2006, European B2C e-commerce sales of goods and services (including online travel, event tickets and digital downloads) totalled $182 billion. With a projected annual growth rate of 34% over the 2006 2010 period, the market is projected to triple, reaching $578 billion by 2010. [55] Both in US and Europe, 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 $2.2 trillion of turnover in the US. [55]
3
High
3 2
2
2 3
3
1
1
1
Low Low
Low Low
High
Smart Manufacturing
Virtual Meeting
Data-centre
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Research conducted by TIAX of Cambridge, Mass., the estimated 3.9 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, one study of on-line book selling found that its costs per square foot were 50% less than a bookstore, with many of the reasons for this difference (less floor space, less inventory) also being environmentally positive. [47]

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
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Manufacturing and Distribution

Overview
Manufacturing considered a significant area of focus within the resources and products sectors for emissions reduction. 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.
Low Medium High
Low
Medium
High
3
High
Analysis
A sixth of the worlds electricity and a third of new electricity now come from micro-power (on-site or decentralized energy production, such as waste-heat or gas-fired cogeneration, wind and solar power, geothermal, small hydro, and waste- or biomass-fuelled plants) rather than from central thermal stations. [41] Industry emits directly and indirectly about 37% of all CO2 emissions. Contributions to the emissions in individual countries can vary from around 30% in advanced economies to over 80% in rapidly industrializing countries. [32] Enabling driving conditions that minimize energy use (ecodriving) are estimated to improve efficiency by 5% to 20%.[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. Under these assumptions possible benefits in terms of GHG emission reductions would sum to 57, 380 and 760 MtCO2e respectively. [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, while load factors may be in the order of 50%. [55] Every tonne of freight transported by air for one kilometre results in 0.6Kg of CO2 emissions, compared to just 0.003Kg for ocean transport. [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. [32] The global emission reduction potential available in 2030 by increasing efficiency in the industry sector, at a cost of US $100 per ton of emission reduction or less, will be between 2,000 and 5,100 Mt CO2e. [55]
3 2
2
2
3
3 3
1 1
1
Low Low
Low Low
High
Smart Manufacturing
Virtual Meeting
Data-centre
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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. [30] Value of global logistics industry in 2005 was estimated at $3.5 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. [30] ICT-based SCM (supply chain management) could save 1.1% of total energy consumption under optimistic assumptions in 2020. [18]

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, 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)
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Green ICT
Overview
Significant opportunities exist across most industry sectors with high potential for emissions reduction within Financial Services and Communications and High Tech industries. 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
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, producing about 700,000 tons of CO2 emissions (equivalent to the annual emissions of a typical gas-fired power station). [46] Centralized active power management software could save 175,000 a year for a business with 20,000 staff[46] 42% of executives responding to an Economist survey said their organizations do not monitor ICT-related energy spending. [46] According to industry analyst firm IDC, 80% of the IT organizations in the United States are actively consolidating IT, and by 2009 worldwide spending on IT consolidation is predicted to reach $25 billion. [32] It is estimated that data centres in the U.S consumed about 61 billion kilowatt-hours in 2006. This is more than the electricity consumed by the nations colour televisions and similar to the amount of electricity consumed by approximately 5.8 million average U.S households. [32] To date, more than 1.2 million servers have been virtualized globally, which is equal to saving 8.4 billion kilowatt-hours of electricity a year [48] Advanced cooling technologies, together with more energy efficient servers, could allow for the same computing performance and reduce an organizations total energy use by 75 percent. [48] The cost of running data-centre facilities is rising by as much as 20 percent a year, far outpacing overall IT spending, which is increasing at a rate of 6 percent. [40] The investment required to launch a large-enterprise data centre has risen to $500 million, from $150 million, over the past five years. The price tag for the biggest facilities at IT-intensive businesses is approaching $1 billion. [40] Between 2000 and 2006, the amount of energy used to store and handle data doubled, with the average data facility using as much energy as 25,000 households. [40]
Medium
High
3
High
3 2
2
2 3
3 3
1
1
1 1
Low Low
Low Low
High
Smart Manufacturing
Virtual Meeting
Data-centre
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Within one media organization, almost a third of the nearly 500 servers analysed had utilization rates below 3 percent, and nearly two-thirds were below 10 percent. [40] According to Gartner, the power consumption of a rack fully equipped with blade servers will increase from 15 kW (2005) to approaching 52 kW (in 2011), 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, the 3-year costs for powering and cooling a server are already between 1 and 1.5 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. [24] An idling server still consumes about 60 to 70% of the energy compared to a server in normal production operation. [24] 8.4% of data-centre operational costs are attributed to electricity. [35]

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, software as a service and application service provision
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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, 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. 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. Application
Strategy
Infrastructure While each lever is not wholly within the ICT domain, ICT plays a critical role across all of them. 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.
These levers for green business innovation are described in the table below:
Strategy
Taking a top-down approach to change, the strategy lever looks at potential changes in organizational strategy that can support significant changes in the environmental impact of the organization. By adapting and tuning the strategy of an organization, change may result to the underlying processes and infrastructure required and ICT can be the enabler of these changes. Example: dematerialization, where a shift in sales strategy from physical product deployment to digital sales requires ICT solutions to enable the strategy.
Process
For many businesses, 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. Most business processes have an ICT component to them and by understanding how processes are supported by applications and infrastructure, ICT can help drive more efficient and greener processes. Example: implementation of document workflow processes that require ICT applications and infrastructure to support the processes in the most efficient manner.
Applications
Business applications drive and support business processes. By understanding how these applications can be optimized to drive greater efficiencies, be rewritten or even replaced, there is an opportunity for ICT to drive performance improvements in business processes. Example: the deployment of collaboration applications and telepresence applications that improve the efficiency of information sharing processes through the better use of application technology.
Infrastructure
IT infrastructure can be be consolidated, standardized and optimized to drive efficiencies in operation that help improve application (and therefore process) efficiencies. Moving beyond consolidation and optimization, 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. Example: virtualization and consolidation of infrastructure to reduce energy costs and increase energy efficiency.
Strategic changes will produce a cascading effect across the application and infrastructure levels of an organization. While small changes to strategy could potentially have a major impact on environmental performance, the same is not normally true for small changes to the supporting infrastructure. To affect
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major change within organizations, it is key to identify strategic change such as product dematerialization and a decoupling of economic growth from raw material usage.
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. The third axis provides the organization with a way of measuring and tracking the benefits that Manufacturing Sales & Marketing have been en delivered. Without the ability to measure returns on investment, both economic and environmental, organizations are unable to assess how effectively Business Service & Support or appropriately capital has been invested and the organization is performing. 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, industry and organization size) siz How can the initiatives be driven over time and be tracked in terms of trend and overall outcome. Invariably each initiative will need an element of investment and should provide a payback in terms of operational efficiency, productivity improvements, revenue enhancements or cost reductions along with the underlying measurement of a reduced CO2 footprint.
It is also critical to continue measuring the impact of ICT initiatives. Although these these initiatives traditionally utilize metrics and measures such as Power Usage Efficiency, CPU Utilization, ADEPT was able to produce a working aircraft engine prototype number of servers and other related measures, it is becoming necessary to in just under two years with a move beyond a simple energy efficiency model. 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. (such as reduced travel due e to the video conferencing solution). These metrics need to include the impacts on the people, business processes as well as the activities being undertaken. 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. 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. While many measurements exist already in various frameworks provided either through voluntary or regulatory organizations, 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.
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Examples of measurements: Raw material production and delivery emissions Transport distances and modes used in delivery of service/product Employee commute - 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
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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. Effective implementation, however, requires that a business focus its efforts on the initiatives that will provide the highest ROI from both a financial and green standpoint.
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
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, partners and competitors. This snapshot shows the relative spend, 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.
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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; Manufacturing and Distribution (M&D), Service and Support (S&S), Sales and Marketing (S&M) and Business Operations (BO). The process assesses the currently deployed level of ICT by examining the organizations people, processes and technology capabilities. Jones Lang LaSalle adopted a Assessing the capability of the organization to leverage deployed technology gives an solution for its intranet, accurate view of current organizational leading practices and areas where client extranet, and Internet improvements can be made. 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.
mail messages with collaboration workspaces, saving the company U.S.$500,000 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. New technologies allow businesses and consumers to control and reduce their carbon footprint, creating a platform for radical change in the way that products and services are produced and delivered. The challenge awaiting the industry is to effectively demonstrate how ICT can be used not just for individual process changes, but instead for these large-scale strategic efforts. ICT has too often been considered a driver for the business, and as such has been viewed in the silo of the specific project for which it is needed. By viewing ICT strategically across the entire organization, ICT can become the engine of the business.
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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, including, but not limited to, Accenture, Applied Materials, Autodesk, BT, CA, Cisco, EMC, Gartner, HP, Microsoft, SAS, Satyam and the WWF. A full list of source reports is provided in the bibliography. [1] The contribution of ICT to Climate Change Mitigation: World Economic Forum, 2007 [2] ICT in water supply and Irrigation management. Moshe Sne. Centre for International Agricultural Development Cooperation. 2005 [3] Low Carbon IT Solutions: Contributing to the first billion tons of global CO2 reduction with smart IT solutions. HP Eco Solutions Programme. HP. 2008. [4] Energy Management as a Corporate Strategy, OSIsoft [5] Advanced Electronics and Information Technologies: The Innovation-Led Climate Change Solution. . Laitner, John, Ehrhardt-Martinez, Karen. 2007. American Council for an Energy Efficient Economy (ACEEE). [6] Towards a High-Bandwidth, Low-Carbon Future: Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions. Version 1.0. Mallon, K., Johnston, G., Burton, D., Cavanagh, J. Climate Risk [7] A smarter shade of Green: How innovative technologies are saving energy, time and money. Technology CEO Council. 2008. [8] Microsoft report on Environmental Sustainable dashboards. http://www.microsoft.com/environment/business_solutions/articles/dynamics_ax.aspx [9] Smart 2020: Enabling the low carbon economy in the information age. The Climate Group, GeSI. 2008. Additional information taken from [A] IOM Summit Poll Shows Interest in Green IT Growing Dramatically, but Mainly for Economic Reasons, 19 September 2008, Gartner. [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. [C] Various publications on Enel Spa Italys deployment of smart meters to 27 million consumers report savings of USD$500m per year with an investment of USD$2b, giving a payback period of 4 years [D] Cisco best practice example and http://www.connectedurbandevelopment.org/about [E] Autodesk example for Unterfrnksiche berlandzentrale eG, Llsfeld (Z), a regional electric utility supplying 125,000 residents over approximately 1,000 square kilometers in northern Bavaria, Germany. [F] Cisco Whitepaper Economic & Green Benefits of Cisco Tele-Presence [G] Case Study material provided by Accenture, Applied Materials, Autodesk, CA, Cisco, EMC, Gartner, Microsoft and through online research into publicly available case studies.
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Bibliography
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. ACEEE ACEEE ACPI ADL Alliance Bernstein Arthur D. 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 & Knrr 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 - 2004 Conferencing at BT: Results of a survey on its economic, environmental and social impacts Making Sustainability Real - 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 - The energy future to 2030 Crossing the divide? The future of clean energy The fundamentals of Energy Security Towards a High-bandwidth, 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, 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, by Gartner and WWF Achieving Agility: Defining Agility in an IT Context Defining the Environmental Value of IT Environmentally Sustainable IT: U.S. 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, Cooling, & 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, 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
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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. 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. 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. 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, 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, such as weather data for transport conditions or physical storage container capacity monitoring
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Business Operations Sample Use Cases

Report Source Smart Meters Towards a high-bandwidth, lowcarbon future[6] Data EcoVision Solutions, a Gold Coast based technology development company, uses an integrated control and management system which will facilitate cooperative management of resources in the energy and water supply chain. EcoVision has produced a home touchscreen interface which provides consumers with real time feedback of electricity, potable water, recycled water and gas usage. Greenhouse gases relating to resource consumption are displayed in graphical form as well as photovoltaic solar power or other forms of renewable energy generation. Energy use can be monitored at circuit level (eg lighting separate from general power) or at discrete appliance level. In conjunction with various in-home sensors and timers, 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.[8] Baxter International Inc. - a U.S.-based maker of products used to treat kidney disease and other medical conditions has seen growing costs from pollution control and waste disposal, environmental fees for packaging and electronic goods, fees for environmental remediation, and more. Over a three-year period Baxter maintained its environmental-related costs at $88.3m. At most companies, that money would come off the bottom line. But Baxters leaders realized there was an opportunity contained within those costs. By careful accounting of its environmental costs and efforts to contain them through such steps as reducing purchases of raw materials, as well as energy and water conservation Baxter turned a liability into an asset. It reduced costs by $90.3 million during that same three-year period, actually coming out $2 million ahead. Data-centre configuration The innovation led climate change solution[5] According to one assessment, current trends in technology use will lead to a 10 percent reduction in energy requirements for data centres, while simple management improvements can reduce consumption by an additional 20 percent. Implementing current best practices can lead to a significant 50% reduction. Mobile infrastructure technologies currently available include network optimization packages which can reduce energy consumption by 44% and solar-powered base stations, which could reduce carbon emissions by 80%. Adoption of these measures by 2020 would lead to the avoidance of almost 60 MtCO2e in 2020. 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, while also improving survivability by up to 23 percent.
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]
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Service and Support Key Activity examples

Example Smart buildings for support and maintenance locations Description Implementation of building management systems into an organizations production facilities to reduce the energy consumption from heating, cooling and lighting as well as providing improved maintenance and therefore greater efficiency from core building infrastructure. 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, fuel cell, 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.
Call home support from products for preventative maintenance Migration to hybrid, or low emission vehicles, 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
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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, some hotels began installing small infrared sensors to detect when no one is in the room. After 30 minutes, the temperature is automatically reduced by 3 degrees; these technologies have saved as much as 37 percent of hotel heating costs. Similarly, 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 isnt needed. The world's largest and arguably "smartest" smart meter deployment was undertaken by Enel SpA, the dominant utility in Italy with over 27 million customers. Over a 5 year period beginning in 2000 and ending in 2005 Enel deployed smart meters to its entire customer base. The system provides a wide range of advanced features, including the ability to remotely turn power on or off to a customer, read usage information from a meter, detect a service outage, detect the unauthorized use of electricity, change the maximum amount of electricity that a customer can demand at any time; and remotely change the meters billing plan from credit to prepay as well as from flat-rate to multi-tariff. In various publications Enel has estimated the cost of the project at approximately 2.1 billion Euros and the savings they are receiving in operation of 500 million Euros per year, an astonishing 4 year payback and a testament to the power of next-generation advanced metering systems. Smart-working Towards a highbandwidth, lowcarbon future[6] EME is an electricity distribution firm in the East Midlands, UK. Approximately 150 of its 469 staff at the Pegasus building tele-work 1 to 5 days per week, resulting in considerable savings for both the employer and employees. Due to the high telework uptake, EME reduced its amount of office space, currently at a premium, saving the company approximately $A270,0006 per year. The workers save approximately $A 40 per week and an average of 10 hours each per week in commuting time. In total, an average of 38,000 km per week was saved by the 150 teleworkers (Hopkins & James 2001). Sunderland City Council save around 80 tons of CO2 per year from reductions in staff time, distance travelled by service users, 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, time and money[7]
Device efficiency
In early 2007, Sky (the UKs largest satellite broadcaster) released a satellite set-top-box with automatic functionality to turn itself off completely, rather than go into standby mode when not being used.
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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, 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. Reduced heating and cooling requirements at sales locations Reduction in energy consumption by devices. Reduced fuel consumption by staff returning to charge devices
Product dematerialization through online sales
A move away from traditional product shipping to online channels, 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, mobile phones and personal information devices to extend life on battery power, reducing the need to charge while also improving the productivity of the sales workforce through increased time in the field
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Sales & Marketing Sample Use Cases

Report Source Route & Fleet Management 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. Through an agreement with Black and White Cabs Pty Ltd, 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, bus interchanges and shopping centres. The service only runs during peak hour and costs the commuter $1 for each trip. In Malta, an information technology service has utilized a hybrid approach to telework to maximize the opportunities and overcome challenges associated with telework. Malta Information Technology and Training Services Ltd (MITTS) decided on a three-day-telework, two-day-office programme with its staff. This way they have managed to retain skilled working mothers who could not commit to a full office-based week Cisco Systems, one developer of telepresence conferencing facilities, has offices all over the world and a highly mobile workforce. Since adopting the technology internally, the company has set a worldwide target of reducing its own air travel by 20%. The Australian division of Cisco has already reduced air travel by 16% in less than one year. Retail marketing automation can help eliminate the waste and costs associated with printed materials by printing on demand, when and in the location they are needed as opposed to being printed at a central location and then distributed. Assessments conducted found that retails could reduce wasted signage and other printed marketing material by up to 90 percent. In early January 2007, Steve Jobs announced that Apple had sold over 2 billion songs via the iTunes Store, or approximately 166 million CDs. Stacked one on top of each other, this pile of CDs (in their cases) would reach over 1,000 miles high. If you tipped over this pile, it would extend more than one-third of the way from New York to LA. Looking at this another way. A CD along with a slim plastic case and one or two pages of liner notes weighs about 60 grams. If a standard tractor trailer can move 36 tons of product (or about 605,000 CDs), 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. 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 2.43 Kilowatts of electricity per hour over a 24 hour period. Total consumption is 58 kilowatt-hours per day of electricity. 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.
Smart-working
Towards a high-bandwidth, lowcarbon future[6]
Tele-presence
Towards a high-bandwidth, 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
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Manufacturing and Distribution Key Activity examples

Example Smart Buildings for Factories and Warehousing Description Implementation of building management systems into an organizations production facilities to reduce the energy consumption from heating, 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. 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, 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
Automated control of micro-generation capabilities to integrate with grid provided power, 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, 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, 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
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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% - 50%, increased yield per land and water unit by 20% 100% and improved produce quality. Investment capital can be recovered in 1 3 years by saving water and energy, expansion of the irrigated area and yield increase. 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, 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. Through the monitoring and calculations the customer was able to cut energy consumption and its corresponding contribution to greenhouse gas emissions by 11.3 percent Supply chains that can be optimized to make the most of ocean transportation could have significant benefits. Over the course of a year, HP was able to shift more than 250 containers of notebook computers from air to ocean shipments, saving approximately 4,000 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. Due to electric market oversupply conditions, the equipment never ran the way it was designed to operate. Instead of running equipment in a steady-state, base-loaded operating configuration consistent with the design specifications, the market dictated that it was run in a cycling, part-load operating mode. The organization removed traditional methods and tools and used a plant wide real-time monitoring solutions data to generate empirical models of plant performance. Armed with this asset performance data, the organization designed performance improvement initiatives around benchmarking best-in-class operating performance. Applications were developed and rolled out to the entire fleet to assist operators in achieving optimal performance. 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.
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
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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. This will include a reconfiguration to a hot/cold aisle layout, movement to pod style enclosed units, 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. 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, 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. Virtualization in the data-centre will enable significant reduction in both servers and storage while end-user devices can be consolidated.
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. Power settings can be applied to monitors, 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. Rationalization enables a reduction in quantity of underlying 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, power over Ethernet and wireless.
Reduction in energy used by print devices and consumable usage, 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, 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. Systems such as email, ERP and web services can be provided when based on common software packages.
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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, which could reduce carbon emissions by 80%. The expected adoption of these measures by 2020 would lead to the avoidance of almost 60 MtCO2e in 2020. According to one assessment, current trends in technology use will lead to a 10 percent reduction in energy requirements for data centres, while simple management improvements can reduce consumption by an additional 20 percent. Implementing current best practices can lead to a significant 50 percent reduction. In May 2006, the University of Leeds found that 70% of its desktop computers ran 24/7. The university immediately began a successful campaign to reduce this figure. Between 2006 and 2007, overall electricity consumption fell by 2% - previously it had been rising at a rate of 3% PA. Storage Virtualization Smarter Shade of Green[7] Purdue University in Indiana is one of the leading research institutions in the United States, with more than 69,000 students, 19,000 staff members and 7,400 courses in more than 500 specializations. Purdues information technology (IT) staff faces an extraordinary challenge of information growth and the attendant need for increased storage, servers and systems. Storage virtualization technologies, coupled with server virtualization software, reduced Purdues administrative energy footprint by almost 20 percent. This energy reduction represents 35 kilowatts of power. Using virtualization technology to reduce and consolidate the environment, EMC has been able to virtualize 1,357 of its servers to just 231 physical machines, resulting in infrastructure (space, power and cooling) savings of more than $4.6 million (a savings of 67 percent) and eliminating nearly 3,159,726 pounds of CO2 emissions over a three-year period. By consolidating 13 billing systems into a single enterprise system, Verizon Wireless is now saving $20 million annually. The first step was assembling a cross-functional team whose members represented every step in a customer's experience, from marketing and sales to network operations, store operations and support. 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 2,400 stores would walk out with an activated, ready-to-use wireless phone.
Data-centre configuration
The innovation led climate change solution[5]
Device Power Savings
Server Virtualzsation
Smarter Shade of Green[7]
Application Rationalization
Various Sources
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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.
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% - 14% of energy costs were identified 2 year pay back on most initiatives $334,628 saving on utility bills during 1st year of implementation alone $50,000 annual savings at pilot building $4M estimated savings upon project completion Energy Consumption reduction: Electricity -12%; Steam -45%; 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, procurement, 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 2,500 tons Solution payback in under a year
Smart Buildings Implementation
Enterprise Energy Management Software Implementation
Carbon Network Logistics Optimization
Tele-presence
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Green ICT Benefits

Due to the increasing maturity of solutions within the Green ICT arena, organizations are likely to see benefits in the following ranges from implementation of specific technology solutions. 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. 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%. Improvements to the energy efficiency of the facility itself could deliver significant environmental and economic benefits to the organization. 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). Newer building designs and core facilities infrastructure should enable a ratio of 1:1.6 to be achieved providing a saving of approximately 50% on both power consumption and emissions. Improved facilities design will provide the organization with a core data-centre that should offer improved levels of reliability to users with less downtime. Due to improvements in performance of newer equipment, using more energy efficient processing and power technology, 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%. 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, 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. 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.
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Next Generation Data centre
While the implementation of facility improvements, virtualization, automation and hardware refresh will deliver individual benefits the combination of all strategies can enable a significantly great economic benefit. Many data-centres are approaching, or have reached, power capacity. Once reached organizations are unable to deploy infrastructure into locations and will be required to build additional datacentre capacity. Typical data centres cost in the region of $400 - $5,000 per sq foot, depending on the location and power loading, and would be usually need to be around 50,000 square feet in size. Extending the life of a data-centre could therefore avoid a capital outlay of anything of up to $250m for an organization. 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. 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. 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. Typically each application will have an associated technical environment including production, testing and development systems. 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. Undertaking a rationalization programme should provide a roadmap to reduce the application estate and release infrastructure for other required business tasks. In addition as much as 70% of production data is never accessed but is repeatedly mirrored and backed up requiring storage infrastructure and staff, both of which contribute to the organizations environmental footprint. While the benefits for changing the power setting on a single desktop may be small (savings of around 75%, or $65 a year per desktop could be achievable) the benefits across the enterprise are significant. Deployment of usage and time based configurations can be completed quickly and easily and could provide a 1,000 device organization with annual savings of $65,000. Additional savings could be delivered through a reduction in the need to cool the office due to wasted desktop heat production. 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 1,000KWH a year per device. Changing the type of device should support a reduction in the deployed footprint. 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. Through improved print management an organization could also significantly reduce the typical output per office user from the typical 12,000 pages per year. 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.
Application & Data Rationalization
End-user Device Power Management
Output Rationalization and Printer Consolidation
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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. Their energy costs had been increasing while revenue had remained relatively consistent. The organizations 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. LEM wanted to embark on a programme of work that would enable them to examine their sustainability/green objectives, subsequently driving an analytical phase to determine what actions could be taken to improve their overall CO2 footprint. One of the key challenges in initializing the programme was to understand how they could best structure their analysis and thinking. This would be critical in ensuring assessment, 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 Business Area Analysis

Utilizing the framework developed by the WEF, the first step that the organization took was to conduct an initial workshop where each of the core business areas was assessed. A workshop analysed each of the key Business activities/functions of LEM which were then allocated into an appropriate Business Area within the Framework. A decision tree was constructed that depicted each of the Business functions to be analysed, relative to their current mode of operation. Details were captured from both key experts across the organization, as well as existing IT systems to determine the level of emissions caused by the main business activities of LEM. This data focused on the as-is status of the process at time of capture, in order to start the next part of the analysis and to-be solution development process.. LEMs operational management team were presented with the initial analysis, highlighting those operational areas that could yield potential benefits. The presentation included comparative information on organizations operating in a similar high-tech manufacturing environment. 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.
WEF Framework ICT Levers for Innovation

Coming out of the Business Area analysis - the results for LEM were clear. While the majority of the functions were performing well, the level of emissions being produced within the Manufacturing and Distribution business area were significantly higher than LEMs closest competitors. Based on the results, LEM management established a Green Team to move the analysis forward and identify what specific changes were required. The next element of the framework was then introduced. The objective of P a g e | 41

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. In addition, from a strategic perspective any future company projects, regulatory and governmental directives were introduced that would ultimately have to shape the solution. Having interviewed experts within the manufacturing & distribution and ICT functions, 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. The framework provided details of the types of activities that should, or could, have been undertaken and delivered a maturity assessment of the ICT capability associated with the business processes. As issues were identified the team were able to drill down, highlighting specific issues which could be addressed through innovative ICT solutions.
It became clear that while LEM had invested heavily in a new ERP solution to provide detailed production process information to management, it had not implemented additional modules around logistics due to cost constraints. It also identified that little investment had been made into the facilities themselves. Lighting remained switched on 24x7 despite areas not being occupied for much of the day, nor were they turned off at night. Heating systems competed with air-conditioning units on a daily basis. The core recommendations to remedy these two areas were the implementation of an advanced logistics system and an integrated building management system. The framework assessment provided LEM management with an understanding of the benefits, both environmental and economic, that could be achieved by making these two improvements. Using data from organizations that had previously undertaken similar activities LEM, were able to calculate benefits delivered by the programmes as well as the expected costs for implementation. 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. ,
WEF Framework Measurement

Prior to implementation of the recommendations, by ,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 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. A Dashboard was constructed for LEM that enables all stakeholders to clearly see the overall programme performance at a glance.
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Green Technology Economic and Environmental Benefits From I CT

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Green Technology: Driving Economic and Environmental Benefits from ICT

Report prepared with the support of Accenture

Green Technology : Driving Economic & Environmental Benefits from ICT

The significant contribution of Accenture is gratefully acknowledged.

Green Technology : Driving Economic & Environmental Benefits from ICT

Smart Energy Management

Sustainable Energy Production

Carbon Accounting & Tracking

Green Technology : Driving Economic & Environmental Benefits from ICT

Increased Energy Efficiency of Data Centre Technologies and Electronic Devices

Opportunities outside the IT Budget

Green Technology : Driving Economic & Environmental Benefits from ICT

A Framework for Better Leveraging ICTs Greening Capabilities

Service & Support

Holistic Framework for Green ICT

The Business Area View

Service & Support

Sales and Marketing

Manufacturing and Distribution

Green Technology : Driving Economic & Environmental Benefits from ICT

Detailed Analysis of Business Areas

Relative Environmental ROI

Relative Economic ROI

Key area of improvement

Smart Building & Infrastructure

Smart Energy Management

Sustainable Energy Production

Carbon Accounting & tracking

Green Technology : Driving Economic & Environmental Benefits from ICT

Key Example Activities

Service & Support

Relative Environmental ROI

Relative Economic ROI

Key area of improvement

Smart Building & Infrastructure

Smart Energy Management

Sustainable Energy Production

Carbon Accounting & tracking

Green Technology : Driving Economic & Environmental Benefits from ICT

Key Example Activities

Sales & Marketing

Relative Environmental ROI

Relative Economic ROI

Key area of improvement

Smart Building & Infrastructure

Smart Energy Management

Sustainable Energy Production

Carbon Accounting & tracking

Green Technology : Driving Economic & Environmental Benefits from ICT

Key Example Activities

Manufacturing and Distribution

Relative Environmental ROI

Relative Economic ROI

Key area of improvement

Smart Building & Infrastructure

Smart Energy Management

Sustainable Energy Production

Carbon Accounting & tracking

Green Technology : Driving Economic & Environmental Benefits from ICT

Key Example Activities

Relative Environmental ROI

Relative Economic ROI

Key area of improvement