Green it governance cio-club

Green-IT Governance

Tanguy Swinnen

Green-IT Governance, the zen future

1.  A Few facts 2.  Green-‐IT 3.  From opera8ons to governance 4.  Targeted outcomes

Green-‐ict.com 12/09/2013 Green-‐IT @ CIO-‐Club 2


1.  A Few Facts –  Environmental pressure –  External Drivers

2. Green-‐IT 3. From operaCons to governance 4. Targeted outcomes


The environmental pressure

•  We are facing growing environmental challenges: o  Global warming, o  Resources scarcity, o  Financial Crisis

•  Professional ICT and home electronics represent 2 to 3% of GHG and are responsible for massive toxic e-‐waste.

•  We need to reduce the environmental footprint of ICT. •  Hopefully ICT is also an enabler to a low carbon

economy. Greening BY IT

Greening OF IT



1.  A Few Facts –  Environmental pressure –  External Drivers

2. Green-‐IT 3. From operaCons to governance 4. Targeted outcomes


From global to Green-IT Governance

•  Hence the need for governance … –  Promotes trust in the organizaCon and its people, –  Improves decision-‐making and the quality of these decisions, –  Enhances the percep8on of the organizaCon among people, –  Improves the ability to miCgate risks, –  Improves stability … sustainability (financial, legal, social, industrial).


Global WTO, FMI, WEO Na8onal SSM (Malaysia)

Organiza8on

Finance IAS, SOX Sustainability GRI, ISO 14001

IT

Regulations, frameworks and standards

+ (N)GOs less formal pressure

Pressure is increasing. Green-‐ict.com 12/09/2013 Green-‐IT @ CIO-‐Club 7

Regulations, frameworks and standards

Regula8on Voluntary Financial impact Scope

ISO 14001 Global

ISO 50001 Global

Energy Star Global

EU Code of conduct for datacenter

EU

Building regulaCon (EPC)

EU/naConal

Carbon monitoring (CRC)

NaConal (UK)

Sustainable ICT specificaCons (ITU)

Global

Current situa8on Projected situa8on Green-‐ict.com 12/09/2013 Green-‐IT @ CIO-‐Club 8

External drivers

•  RegulaCons and mandatory reporCng –  Carbon ReporCng (CRC), WEEE, RoHs

•  Customers expectaCons •  PoliCcal pressure

–  United NaCons, European Union, naCons •  NGO lobby

– WWF, Greenpeace, ITU, WRI •  Standards, labels, best pracCces, tools

–  ISO14000, ISO 50000, ISO 26000, –  EPEAT, Energy Star, EU Code of Conduct, Green Grid

•  Environmental protecCon –  Kyoto protocol


Standards and labels (certificates)

Type Object Scope Impact (1)

ISO 14001 STD Environment management system (InternaConal OrganizaCon for StandardizaCon)

Global CSR

ISO 50001 STD Energy management system (InternaConal OrganizaCon for StandardizaCon)

Global FaciliCes

ISO 26000 STD Guidance on social responsibility (InternaConal OrganizaCon for StandardizaCon)

Global CSR

Energy Star LBL Energy efficiencient for EE equipments (Environment and Energy Agencies US)

Global Proc

EPEAT (IEEE1680)

LBL Environmentally preferable electronics (Green Electronic Council US)

Global Proc

FSC LBL Eco paper (not recycled) (Forest Sterwardship Council US)

Global Proc

LEED LBL Eco efficient buildings (Green Building Council)

US FaciliCes


Directives, best practices, reporting and tools

Type Object Scope Impact (1)

CRC REP Carbon ReporCng Commitment (Government)

UK CSR

GRI REP Sustainability reporCng framework (3BL) (Global ReporCng IniCaCve)

Global CSR

CoC datacenter BP Datacenter efficiency pracCces (European Commission)

EU ICT

ADEME BP Code of conduct for greenwashing (Environment and Energy Management Agency)

FR Comm

DC Maturity Model TL Goals and direcCons for DC efficiency (Green Grid US)

Global ICT

ODCA BP Guidance CO2 reporCng (cloud providers) (Open data Center Alliance)

Global ICT

WEEE DIR CollecCon, recycling, recovery targets (European Commission)

UE Proc

UNFCCC Protocol NM0350

DIR (BP)

Datacenter efficiency (moneCzaCon) (UN Framework ConvenCon on Climate Change + Power Assure and Carbonomics)

Global ICT

Now entered into force

NEW AND HOT The methodology will help data centers realize potenCal energy savings and carbon reducCon in areas where CER (CerCfied Emission ReducCon) credits can be traded and sold to buyers in industrialized countries with reducCon targets under the Kyoto Protocol.


Mandatory carbon reporting (UK)


•  Companies listed on the London Stock Exchange must measure and report on their carbon emissions from April 2013,

•  Companies have to report on their emissions in all

countries of opera8on, not just the UK, •  Companies must include all direct emissions but also

report emissions from purchased heat and electricity and emissions from surface transportaCon, even if provided by a third party.

Will concern more companies in a near future

Will prevent uncontroled « grey » opera8ons

Indirect emissions should be accounted.

Mandatory carbon reporting (UK)


On a pure ICT point of view, mandatory reporCng should help embed climate change consideraCons : •  into investment decisions, •  into operaConal decisions.

But, to avoid a race to low carbon reporCng and prior to taxaCon, indirect emission need to be accounted

Companies that voluntarily report their climate change impacts realize other benefits such as saving costs through energy efficiency, the adopCon of new technologies and increased innovaCon.

This is a long journey, as no internaConal reporCng standard exist, and ther is no « SAS70 » for third-‐parCes (indirect) carbon emissions.

c l oud supp l i e r . Offsho re development


1. A Few Facts 2.  Green-‐IT

–  Scope –  Challenges –  Hot topic : Cloud –  EU’s (and other’s) response

3. From operaCons to governance 4. Targeted outcomes


Green-IT governance and the triple bottom line

The broader concept of sustainability •  The triple bolom line (TBL) is made up of "social, economic and

environmental" factors. TBL accounCng expands the tradiConal reporCng framework to take into account social and environmental performance in addiCon to financial performance;

•  The concept of TBL has three pillars: People, Profit and Planet.

•  Green-IT also comprises managerial aspects to control and monitor the effectiveness of implemented measures as well as marketing measures to communicate the success towards important stakeholders (Erek et al. 2009).

•  These measures can be structured regarding their strategic, operational and technical impact and along the IT activity chain of IT departments covering a source, make (data center, office environment), deliver and return process (Schmidt et al. 2009; Molla 2008).

•  Green-IT is a systematic application of environmental sustainability criteria to the design, production, sourcing, use, and disposal of the IT infrastructure in order to reduce IT, business process, and supply chain related emissions and waste and improve energy efficiency (Molla et al. 2009).


A few Green-IT activities

Greening Of IT … 2 -‐> 3 %

AcCons taken by an organizaCon to lower IT environmental footprint. e.g.

  Managing electrical power used by IT infrastructure

  Managing wastes and consumables used by IT and related systems

  Sustainable IT pracCces

  IntegraCng and aligning with enterprise level carbon management targets and iniCaCves

Greening By IT … 98%

ICT projects and products allowing a reducCon of the global environmental footprint (*). e.g.

  Environmental friendly pracCces (travel opCmizaCon / reducCon, ...)

  Water opCmizaCon in gardening   IntegraCng building automaCon & power

management systems   Eco-‐driving   Home-‐energy monitoring

(*) GeSI evaluates to 16,5% the potenCal for IT to help reducing industry GHG emissions.

IT: 3%

Other Industries:

97%

Green of ICT Main focus : •  Easy (operaConal) •  Low hanging fruits

Green by ICT Lille alenCon today: •  Broader scope •  Higher potenCal

Green-‐ict.com 12/09/2013

Green-‐IT @ CIO-‐Club 16






1. Who’s involved ?


(in) direct consumpCon

2. Behind utilization

•  A model to consider full life of a product on Earth … •  … and idenCfy, @ each step, what can be done.


3. All actors in a single direction

•  OperaCng model for the management of Green-‐IT iniCaCves (OF,BY).

Green-‐IT Governance

ICT CSR

HR

PROCUREMENT FACILITIES

OPERATIONS ( business)

RISK/LEGAL COMMUNICATION

Finance

Frameworks & Standards Pragma8c implementa8on BENEFITS

Con8nuous improvement Green-‐ict.com 12/09/2013 Green-‐IT @ CIO-‐Club 20

Green IniCaCves






Reminder

•  Major waste of energy in DC ? Cooling •  How to reduce that waste ? Free Cooling •  How to achieve Free Cooling ? To the North !! •  Can you do that with your DC ? No! SOLUTION : share a DC !


Accountability

•  Outsourcing does not relieve from accountability! – Make sure you can audit your provider –  IdenCfy your part of DC’s environmental impact – Take into consideraCon the whole chain

•  OpConal backups •  Networking •  …


And …

•  Legal aspects •  PRISM •  Interoperability •  Risk percepCon •  Human







Ever growing use of IT

•  IT Spending Forecast Summary, Q2 2012 Update Gartner's current U.S. dollar growth forecast for overall global IT spending in 2012 has been revised up slightly from 2.5% last quarter to 3.0% now.

•  EU tries to help its market to keep pace … together with maintaining H2020 objecCves.

Ever growing use of IT

Higher and Higher environmental

pressure (H2020)


(future) stds do exist and are here to help

3

Annex

- General Logo for promotional purposes

- Participant logo

- Endorser logo



1. Environmental pressure 2. Green-‐IT 3.  From opera8ons to governance

–  Governance schemes –  ImplemenCng Green-‐IT: SGM framework

4. Targeted outcomes


Different governance schemes

•  Choose the governance leadership o  Corporate level: CEO, board, o  IT centric: CIO, o  Sustainability driven CSR Manager;

•  Choose the governance model o  Opt for a centralised or decentralised model, o  Interact (or not) with other models (CobIT, ISO14000);

•  Choose a governance framework and a tool to qualify the achievements and quanCfy the objecCves.


Green’ing a FW

•  Prepare to change by identifying the right stakeholders (out of usual IT domain of influence) –  Helps interviewing the right persons

for accurate assessment; –  Helps in identifying the right pain-

killers; –  Helps identify the right persons for

communicating initiatives and manage changes.


From Typical Business Goals

To IT Goals

... To

COBIT Processes

Formal approach


Processes of interest

Expert Mappings

EDM EDM02 Ensure Benefits Delivery

EDM02 EDM03 Ensure Risk OpCmizaCon

APO APO02 Manage Strategy APO12 Manage Risk

APO01 Manage the IT Management Framework APO12

BAI BAI04 Manage Availability & Capacity

BAI01 Manage Programmes and Projects

DSS DSS01 Manage OperaCons

DSS01

MEA MEA01 Monitor, Evaluate and Assess Performance and Conformance

MEA01


Any New Stakeholder ?

•  Procurement Management •  Facilities Management •  CSR officer •  Communication Mgr •  Business Operations (*) … and external stakeholders



1. Environmental pressure 2. Green-‐IT 3.  From opera8ons to governance

–  Governance schemes –  Implemen8ng Green-‐IT: SGM framework

4. Targeted outcomes


Implementing Green-IT: SGM framework

•  The Green-‐IT Strategy, Governance and Maturity framework supports the organizaCon from day 1.

•  Green-‐IT SGM is a pure governance

methodology, it implements, monitors and controls: –  The transformaCon of CSR or sustainable

strategy into tac8cal Green-‐IT decisions at departmental level,

–  The converCon of tac8cal decisions into opera8onal acCviCes,

–  The Green-‐IT porlolio and dashboard of KPIs.


SGM’s structure

•  The Green-‐IT SGM framework is mulCdimensional : –  addresses 5 (IT) governance domains

–  analyses the con8ngencies –  gathers various regula8ons under a single umbrella

–  calculates 5 maturity levels –  comprises 4 phases keeping 3 perspec8ves in mind: 3Ps


Implementing SGM : Continuous Improvement

ASSESS Quick scan Detailed audits Maturity check

RecommandaCons Quick Wins

PLAN IMPLEMENT Project Plan Green objecCves KPI definiCon

Strategic TacCcal OperaConal

Green-‐IT Strategy Roadmap

Green BSC Green PPM

Periodic reassessment Risk miCgaCon

CommunicaCon From greening OF IT -‐> Sustainable IT Green-‐ict.com

12/09/2013 Green-‐IT @ CIO-‐Club 37

Implementing Green-IT: Octant



1. Environmental pressure 2. Green-‐IT 3. From operaCons to governance 4.  Targeted outcomes

1.   Typical Case 2.  Your benefits


Context

Industry Sponsor Sustainability strategy Governance archetype

Public Agency CIO Yes, under CSR responsibility Decentralised governance

Demand Green maturity of organizaCon Large focus (greening of and by IT)

Green achievements 1.  Immediate wins in datacenter operaCon 2.  Improvement of the data management processes 3.  ImplementaCon of Green KPIs 4.  Boost of homework iniCaCve

Collateral achievements 1.  Energy week (internal communicaCon) 2.  Change of behaviour between faciliCes and IT 3.  Green-‐IT as part of Kyoto program (CSR)

Status Ongoing project

Conclusions Green-‐IT is a company wide concern

Load (duraCon) ASSESS 20 days (2 months)

PLAN 45 days (4 months)

IMPLEMENT 60 days


Quickscan

•  230 topics reviewed, each question has 3 attributes –  Governance domain (5) –  Optimization domain (5) –  Level (strategic, tactic, operational)

•  15 anonymized interviews –  6 ICT –  2 CSR –  1 facilities –  1 procurement –  1 HR –  2 communication –  2 operation (business)

•  The answers are: –  0 to 5 (pertinence) –  Text (process) –  Number (measurement)

ASSESS PLAN IMPLEMENT


Discrepencies

•  Non-IT scores lower than IT •  Efficient IT, and hence quite green without knowing •  Little understanding from non-IT’ers about what IT actually

does •  IT’s willingness to go further in the green direction

Green-‐Of

Green-‐By

Org's involvement

IT's involvement

IT

non-‐IT



Deliverables

•  As-Is Cartography of Green Items (GI) –  Sorted by optimization domains –  Includes Greening OF and BY actions

•  Quick wins •  Findings and recommendations

–  Strategic –  Tactical –  Operational

•  As-Is maturity –  Yesmen and never happy ones removed –  Global and specific views –  Internal benchmarking

•  Draft of roadmap



As-Is cartography

Level 1 Level 2 Level 3

Green OF IT

DataCenter 1.1 Datacenter efficiency

1.2 Datacenter load

Office AutomaCon

2.1 Desktop management

2.2 PrinCng management

IT OrganizaCon

3.1 IT architecture (server, storage) opCmizaCon

3.2 Storage and archiving management

3.3 Sustainable (green-‐IT) projects

Enterprise 4.1 Paper consumpCon reducCon

Sustainability 5.1 Global IT footprint

5.2 Greening BY IT projects



As-Is cartography

Level 1 Level 2 Level 3

Green OF IT

1.Datacenter 1.1 Datacenter efficiency • Split data rooms • Deployment/moving hardware • Usage water cooling • Usage free cooling • HeaCng reuse • Datacenter harmonizaCon • Cooling management

1.2 Datacenter load • New storage purchase • New servers purchase • Physical decommissioning

• Ghost servers hunCng • Energy monitoring



As-Is cartography

LEVEL 1 LEVEL 2 LEVEL 3 MEASUREMENT

ID Type Domain Name Lead Status ReferenCal Exist Ref Unit Period Historic Quality Remarks

DC-‐1

OF

Datacenter Datacenter efficiency FaciliCes Ongoing

COC datacenter, Green Grid

YES

Usage of free cooling FaciliCes Stopped

Tested in DC1, then stopped. Bad ROI vs the move to a new datacenter in 2015.

Move hardware to more efficient datacenter

FaciliCes Ongoing

Yes. As the maximum energy capacity is reached in DC1 and DC2 (actual electricity use @ approximately 80% of total available electricity). Usage of collocaCon datacenter premises (lower PUE, around 1,5)

Plan new datacenter (more efficient)

FaciliCes Ongoing

Done, waiCng for implementaCon decision (country). Is currently a blocking factor for energy efficiency investments, like dynamic cooling.

Energy efficiency monitoring

Facilites Ongoing PUE 1,80 YES PUE n/a Month Yes High

Yes. ObjecCve for DC1 (1,80-‐1,83) for 2011. 1,81 in January. ObjecCve for DC2 (1,86), 1,83 in December 2010. For collocaCon, fixed PUE of 1,5 (in contract). No other KPI measured, an iniCaCve as been launched end of April by FaciliCes to measure CUE et WUE.

PUE Level of Efficiency 3,0 Very Inefficient 2,5 Inefficient 2,0 Average 1,5 Efficient 1,2 Very Efficient



Dashboard & Roadmap



What’s going on

ICT

Green Governance

FaciliCes PROC Common projects

GAL GPL

Green Dashboards

Green-IT Strategy

Common projects



Current Achievements (abstract)

•  Alignment of Ticket to Kyoto with IT:  datacenter efficiency improvement,  PC switch off implementaCon,  Green prinCng management;

•  Green-‐IT awareness campaign:  SCckers in liys, on printers, in meeCng rooms,  Green-‐IT best pracCces on intranet;

•  Pilot Greening-‐BY IT projects:  Homeworking,  Thin clients project for field workers ;

•  Green dashboard of KPIs.

Quick Wins



1. Environmental pressure 2. Green-‐IT 3. From operaCons to governance 4.  Targeted outcomes

1.  Typical Case 2.   Your benefits


Your benefits

•  The benefits are mulCple and involve all stakeholders

•  Immediate ROI (both finance and environment !) and quick wins •  Improved corporate branding / image •  High shareholder value / saCsfacCon •  GHG and e-‐waste emissions reporCng •  AnCcipate regulaCons / avoid penalCes •  In line with company’s CSR mission


Conclusions

•  Green thinking is pervasive; •  Green-‐IT involves many people in the organizaCon.

… •  Unifying frameworks do exist; •  Low-‐Hanging fruits can easily be idenCfied … together with mid-‐ and long-‐ term visionary roadmap.


Your Partner in Green-‐IT and sustainable business strategy

Thierry Holoffe [email protected] @ThierryHoloffe

Tanguy Swinnen [email protected] @TanguySwinnen

www.green-‐ict.com green@green-‐ict.com

@Green_ICT_Com Green-‐IT Observatory