Greening Your Business Through Technologyict-industry-reports.com.au/wp-content/uploads/sites/4/2013/...Greeni… · ‘Greening Your Business through Technology’ gives Australian

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Leading you towards a sustainable future through G

reenIT7 Quick Wins

14 Medium-term Initiatives

21 Case Studies

Version: V1.0 © Copyright AIIA Nov 2009

Contents

Page 1

1 Introductionto‘GreeningYourBusinessThroughTechnology’ 3

1.1 Foreward from John Lenders MLC (Treasurer, Minister for Information and Communication

Technology and Financial Services) 3

1.2 Letter from Bob Hayward (Director AIIA National GreenIT Taskforce) 4

2 ExecutiveSummary 6

2.1 Purpose of the Document 6

2.2 Background 7

2.3 How to Achieve the Vision of a Low Carbon Economy 9

2.4 Why Adopt GreenIT? 12

2.5 Case Study: Canon – GreenIT Drivers 14

3 GettingStarted 15

3.1 Overview of Quick Wins 15

3.2 Case Study: SEMA – eLearning (Business Innovation) 16

3.3 Case Study: Tradeslot – Client Facing Teleconferencing (Business Innovation) 17

3.4 Case Study: PowerfulCMS – Teleworking (Business Innovation) 18

3.5 Case Study: Innovation Science – Energy Management

(Low Investment Option – Technology Innovation) 19

4 NextSteps 20

4.1 Getting Ready for Further Action 20

4.1.1 Case Study: Fujitsu – Journey Over Time 21

4.2 GreenIT Responsibilities 22

4.2.1 Director – Risks and Liabilities 22

4.2.2 Finance – Carbon Disclosure Reporting 25

4.2.3 Information Technology – Implementing GreenIT Products and Services 26

4.2.4 Marketing – The Legal Requirements of Promoting Green Products and Services 28

4.2.5 Case Study: Intel – Sustainable Program Office 30

4.3 Developing a GreenIT Roadmap 31

4.3.1 Case Study: Telstra – Cost Benefit Analysis Calculators (Business Innovation) 33

4.3.2 Case Study: PCA People – Green Business Certification Program

(Business and Technology Innovation) 35

4.3.3 Case Study: Toyota – Developing a GreenIT Roadmap (Business and Technology Innovation) 35

5 TakingFurtherAction 36

5.1 Overview of Medium-term Initiatives 36

5.2 Case Study: Corporate Express – Data Centre Optimisation (Technology Innovation) 38

5.3 Case Study: Jetstar – Virtualisation (Business and Technology Innovation) 39

5.4 Case Study: Intel – Server Hardware Refresh Using Energy Efficient Equipment

(Technology Innovation) 40

5.5 Case Study: Connex – Carbon Management System (Business Innovation) 41

5.6 Case Study: BLADE – Integrated Blade & Top of Rack Switches (Technology Innovation) 42

5.7 Case Study: DELL – Energy Management

(Enterprise Solution – Minimum 200 Desktops – Technology Innovation) 43

Page 2

Contents

6 TheFuture 44

6.1 Overview of Long-term Initiatives that Create a New Agenda 44

6.2 Smart Planet (Business and Technology Innovation) 45

6.3 Cloud Computing (Business and Technology Innovation) 48

6.4 Case Study: Handset Detection – Cloud Computing (Business Innovation) 51

7 GreenITValues–PhilosophicalConsiderationswithEmbracingGreenIT 52

7.1 Overview of Philosophical Considerations with Embracing GreenIT 52

7.2 Sustainable Consumption and Production 52

7.3 Product Stewardship 53

7.3.1 Case Study: Sustainability Victoria – Byteback Australia (Business Innovation) 56

7.4 Sustainable Supply Chain 57

7.4.1 Product Stewardship (Identify the Opportunities) 58

7.4.2 Smarter Procurement (Making it Happen) 58

7.4.3 Product Differentiation (Capitalise on the Benefits) 60

7.4.4 Green Supply Chain Myth – Green Products/Services Always Cost More 60

7.4.5 Sustainable Supply Chain Resources 61

7.4.6 Snapshot: Wal-Mart – Sustainable Product Index (Business Innovation) 63

7.4.7 Snapshot: State Government of Victoria – Environmental Selection Criteria

for Multi-function Devices (Business Innovation) 63

7.4.8 Case Study: State Government of Victoria – Environmental Selection Criteria

for Desktops and Laptops (Business Innovation) 65

8 ClosingRemarks 66

Josh Millen, National Manager for Environment and CSR (AIIA) 66

Scott Evans, Editor of the AIIA ‘Greening Your Business With Technology’ eBook 67

9 Glossary 68

10 Appendices 71

Please note: text appearing in orange indicates hyperlinks for your reference

1.1 Foreword from John Lenders MLCThe Victorian Government and the Australian Information Industry Association (AIIA) have a long-established relationship, committed to working with organisations to create a clean, green ICT industry as a fundamental component of a sustainable future.

‘Greening Your Business Through Technology’ presents a comprehensive range of relevant implementation strategies with supporting case studies, identifying opportunities which provide organisations with assistance in developing a business case for change.

From tips on getting started, to ideas and opportunities tailored for small, medium and large companies (with a special emphasis on SMEs), this eBook is a valuable resource providing GreenIT solutions for all organisations.

Examples of these solutions are outlined in the various case studies throughout this eBook. Evidence suggests organisations that are astute in terms of technology and business innovation can make intelligent decisions by adopting GreenIT initiatives.

By focusing on a GreenIT plan, companies can benefit from increased efficiency and productivity. Deriving maximum value from minimum resources, benefits such as improvements in bottom line and a reduction in environmental footprint can be achieved.

One example of this is the Victorian Government’s Byteback program. In just four years, this program has collected more than 2,000 tonnes of computer and related equipment, and established eight collection sites across Victoria. Designed for SMEs, Byteback is a great starting point for local companies to promote recycling and sustainable disposal practices – effectively minimising the volume of ewaste to landfill.

The Brumby Labor Government’s Innovation Statement Innovation: Victoria’s Future, outlines Victoria’s investment in innovation and its commitment to a low carbon economy though initiatives such as Victorian’s Science Agenda, Smart SMEs Market Validation Program and the Technology Commercialisation Program.

Innovative activities across many organisations are being driven by leadership, often underpinned by innovative applications of ICT. ICT is a critical investment that many companies make to improve their own efficiencies.

On behalf of the Brumby Labor Government, I’d like to commend all companies who have been involved in GreenIT initiatives to date. There is so much potential for the ICT industry to reduce its own environmental impact and to assist other industries to minimise their impact. By thinking holistically and adopting some of the processes outlined in this eBook – together we can create a sustainable and green future for all.

I urge everyone to get involved and start taking the important steps needed to build a GreenIT foundation. It is on this foundation that our future vision can be built, providing a solution to the environmental challenges we are experiencing today.

John Lenders MLC

Treasurer, Minister for Information and Communication Technology and Financial Services

1 Introduction

Page 3

1.2 Letter from Bob Hayward (Director AIIA National GreenIT Taskforce)The Australian economy is more dependent on technology than ever before. But as technology usage grows, there are also increased business expenses for electricity, more greenhouse gas emissions associated with that electricity consumption and extra landfill needed for all the electronic waste. Unless technology is procured intelligently, consumed efficiently and disposed of wisely, the growing use of technology can create a serious problem for business leaders – for Australia and for the planet.

Regulators, auditors, customers, investors, employees and the wider community are raising their expectations and demands for Australian organisations to be cleaner, more efficient and more sustainable. In Australia, legislation requiring detailed reporting on energy use and greenhouse gas emissions is in place, directly affecting more than 1,000 organisations which are in turn asking their supply chains to be more transparent about environmental impact information. The introduction of an Emissions Trading Scheme will place a price point on emissions in the market, adding to the need for carbon measurement, monitoring, reporting and abatement initiatives. In the near future, we can expect that governments and auditors will require all Australian businesses to report on detailed environmental information in the same way they require organisations to report on financial information today.

Technologists have critical roles to play as organisations adopt corporate social responsibility programmes and come under more intense scrutiny about their environmental credentials.

The direct impact of information and communications technology on the environment for Australia has not been recently measured. The last time any research was conducted was in 2005, when a study concluded that the use of information technology by commercial enterprises in Australia consumed electricity that in turn was responsible for just over 1.5 percent of Australian greenhouse gas emissions. This could now be anywhere between 6-8 percent considering that nearly five years have passed and that along with the rapid adoption of new technology, the original figure did not include the public sector, consumers at home, nor telecommunications technology.

To put things into perspective, during one year, someone at home in Australia might consume as much electricity just visiting online virtual worlds (such as SecondLife) as an average person does in Brazil to power their household.

There is plenty of work to be done to stop the growth of the environmental impact of IT and start to reduce it.

But there is even more opportunity to implement new technologies that help reduce the other 92-94 percent greenhouse gas emissions – through activities such as more optimised fleet management, more intelligent utility grids, electronic bills and payments, video-conferencing and improved building management systems.

Technology managers are under pressure to adopt leading practices for sustainability; practices that reduce the environmental footprint of using technologies themselves but also recognise the opportunity to deploy new technologies that can improve the environmental profile of the entire business.

All business leaders should understand what GreenIT means for their organisation and what they should be doing about it. With rising energy costs and a strong global focus on climate change, leaders should consider action to improve their corporate social standing, reduce energy waste, reduce consumption and help to preserve the environment. In doing so, organisations stand to achieve a variety of internal and external benefits, including potential cost savings.

1 Introduction

Page 4

1 Introduction

Page 5

The challenge for management and technologists is to consider the economic, social and environmental implications of any initiative to achieve a balanced outcome for their organisation.

Recognising the need to inform Australian organisations about GreenIT practices, the Australian Information Industry Association (AIIA) has commissioned this book as a guide to GreenIT. Using real world case studies, simple examples and providing clear road maps on actions to take, ‘Greening Your Business through Technology’ gives Australian managers the information they need to use technology responsibly and innovatively. As the practices covered in this book are put in place, we can look forward to a cleaner, more sustainable Australia.

I trust you will find this book a useful guide to assist in navigating your way through the transformation of Australia towards a low-carbon economy.

Bob Hayward

Director AIIA National GreenIT Taskforce

2 Executive Summary

Page 6

2.1 Purpose of the DocumentThe purpose of this eBook is to empower the key decision makers within organisations so that they can make informed decisions.

The content in this eBook has been divided into five core sections in order to make it easy for small business managers and busy professionals to access the information they need.

Part1:GettingStarted – This section provides a quick overview of GreenIT and presents a number of case studies that outline projects requiring minimum effort for maximum result, so that you can get started today on implementing GreenIT practices.

Part2:NextSteps – This section presents a summary of what organisations need to consider when taking further action towards implementing GreenIT practices, including – general considerations, stakeholder responsibilities and a guide for developing a GreenIT adoption program.

Part3:TakingFurtherAction – This section outlines the mid-term goals and implementation strategies for those organisations that want to leverage technology for environmental and financial reasons.

Part4:TheFuture – This section outlines new ‘GreenIT’ phenomena such as cloud computing, the rise of the green grid and smarter planet, and provides an insight as to how these technologies may be adopted in your organisation.

Part5:GreenITValues – This section gives and overview of the ethical considerations that relate to Product Stewardship and Sustainable Supply Chain.

In providing a comprehensive overview on GreenIT, this eBook will provide you with something to ponder, regardless of whether you:

• Are just getting started in your mission to understand the benefits of GreenIT.

• Have previously investigated the options available, but were skeptical about the benefits and could not develop a strong enough business case for implementing GreenIT practices.

• Have successfully completed a number of GreenIT initiatives and believe that there is nothing else that can be done.

A comprehensive range of relevant ‘GreenIT’ implementation opportunities, with supporting case study references are outlined in the pages below. Each case study provides a practical implementation of the relevant IT area being highlighted and elaborates further on the following:

• The advantages of using GreenIT products and services with a focus on SMEs.

• Information on how ICT can reduce their CO2 footprint and bottom line spending.

• Guidance on GreenIT best practice.

A concluding remark has been incorporated into each case study to help relate the message back to the target audience of the eBook – organisations with between 10 and 100 staff members. This is the size of the majority of ICT businesses in the local market place which are finding it difficult to both understand where to start and how to adopt GreenIT within their organisation.

2 Executive Summary

Page 7

If your organisation has less than 10 employees, the content of this book is relevant, however not all initiatives will suit your working environment and needs.

Such organisations would be better to focus on Section 3 (Getting Started – Quick Wins) and Section 4 (Next Steps – Getting Ready for Further Action).

Alternatively, if your organisation has more than 100 employees, your environment will be more complex and additional factors will need to be taken into consideration.

2.2 Background

CurrentSituation

Australian organisations want to develop green operations, yet many need assistance in both identifying the opportunities and developing the business case for change.

Though the focus in the current economy is given to cost reduction, ethical concerns are becoming central to business and brand management whilst green credentials are increasingly influencing consumer behaviour and opinion.

Local organisations understand the urgency of climate change and want to act. As such, they are looking to adopt low-cost and obvious carbon-reducing initiatives.

The key barriers that prevent further action being taken to reduce carbon emissions are either cost, or a lack of awareness of the opportunities that exist1.

Where implementation of GreenIT practices was a niche concern in the past, it is now a mainstream concern in both the commercial and government arenas.

If you are not aware of current pressure on your business – both ethically and commercially – to adopt GreenIT practices, they will soon become apparent.

Figure 1: Target Audience of the eBook

10 Staff 100 Staff

1 Carbon Down – Victorian businesses’ climate change knowledge, attitudes and behaviours, Market research report, July 2009

2 Executive Summary

Page 8

GreenIThasthepromiseofdeliveringalow-costoperatingmodelthatenablesscalablegrowth

At one level, GreenIT is simply an efficiency agenda, one aimed at reducing waste and unnecessary spending. These initiatives are relatively easy and cheap to pursue and follow the ‘less is more’ theory.

At some point, however, investment in newer, more energy efficient technologies will be required in order to reach deeper into the cost base.

This is harder, more costly and requires an ethical driver. It’s all about ‘doing the right thing’.

� Cut waste – power devices down when not in use

� Minimalism – buying just enough IT to do the job

(universal charge -> netbooks -> cloud computing)

� Telepresence – reducing travel and office facilities costs

� Audits – making energy usgae transparent

� Virtualisation & automation – increased utilisation of

fewer, simpler, devices (servers & desktop)

� New technology – new more energy effivient devices –

data centres, disk drives, CPUs etc

� Device recycling – reducing toxic waste, reuse materials

� Green energy – solar, wind, geothermal

EasierCheap

Efficient

Ethical

HarderCostly

© Copyright Ovum 2009

Figure 2: GreenIT Cookbook, Ovum

“Businesses are under increasing pressure to cut business-as-usual costs whilst at the same time creating capacity for continued innovation and platforms for sustainable growth.

A further factor is the minimisation of the costs and risks that may arise from compliance and regulatory obligations. Energy efficiency and reduced carbon emissions are becoming important considerations from both a cost-cutting and a future-growth perspective. CEOs know that it will be in their best interests for the technologies that fuel the next wave of growth to be demonstrably efficient and clean.”

Dr Steve Hodgkinson, Research Director, Ovum

www.ovum.com

http://www.ovum.com

2 Executive Summary

Page 9

2.3 How to Achieve the Vision of a Low Carbon EconomyIn order for the vision of a low carbon economy to become a reality, a disciplined approach is needed by organisations so that they can be effective in both cost reduction and the minimisation of carbon emissions. Though there are certain commonalities across organisations in different industries, no one solution is applicable to all situations.

Every organisation needs to consider its unique requirements when factoring in its current situation, its future goals organisation and making an assessment of the best opportunities for the organisation based on the cost of change to achieve the desired outcomes.

To become part of a low carbon economy requires organisational transformation, often involving a combination of business and technology innovation, the delivering of lower operating costs and development of smarter ways of working.

A number of initiatives have been highlighted below which are designed to assist organisations with a transformation to a low carbon environment. The supporting case studies are presented according to each of the following three stages.

Table 1: Organisational Transformation Initiatives

Stage ProjectType Duration Description

1 Quick wins <12 months Can be implemented immediately with minimal cost.

2 Short to medium-term projects

1-2 years Minimal investigation is required to develop the business case.

3 Long-term projects

> 2 years out Requires business feasibility in order to develop a high-level business case which confirms viability.

As Is Dissatisfaction

with how things are nowTo Be Vision of what is possibleTransformation

Cost of change

Figure 3: Organisational Transformation Overview

2 Executive Summary

Page 10

Quick Wins to Get Started

The most basic, low-cost and easy to implement quick wins that provide an immediate return on investment are:

1. Use black screens or static screen savers instead of active screensavers.

2. Automatically shutdown after hours.

3. Enable the measurement of power usage of ICT as a component of total power usage.

Other quick wins that can be considered are outlined below. Given that these actions may not suit every organisation, careful consideration should be given to both the advantages and disadvantages before adoption.

Table 2: Quick Wins to Get Started

Initiative Advantages Disadvantages

eLearning (Business Innovation)

Able to deliver quality information consistently across disparate locations at a low cost.

Not as effective as face-to-face. More suited to hard skills rather than soft skills.

Client facing teleconferencing (Business Innovation)

Able to engage with clients at a low cost and reach out to the global marketplace.

Not as effective as face to face. Best limited to lead generation. Keep negotiations face-to-face.

Teleworking (Business Innovation)

Provide greater mobility of the workforce and flexibility of working arrangements.

Not suitable for high priority tasks that require instant collaboration and quick resolution.

Energy management (Technology Innovation)

Provides the ability to reduce operating costs by lowering the baseline power consumption.

This is not the only solution available for lowering baseline power consumption. Further gains in lowering baseline power consumption can be achieved by investing in more efficient computer processing infrastructures.

2 Executive Summary

Page 11


Data Centre optimisation (Technology Innovation)

Reduces the energy required to operate a data centre.

May not generate sufficient savings in order to justify smaller data centres.

Virtualisation (Business and Technology Innovation)

Server – reduces the number of physical servers that need to be powered.

Desktop – quicker deployment, increased security, greater mobility and centralised operations.

Server – increasing the density and cooling loads may require additional investment that counters benefits.

Client – not suited to environments that require high processing power and bandwidth.

Server refresh using energy efficient equipment (Technology Innovation)

Provides immediate benefits such as reduced power consumption and increased performance.

Requires high capital cost and down time in order to manage the migration.

Carbon Management System (Business Innovation)

Provides effective framework for measuring, monitoring and the reporting of progress.

Additional overheads are required to collect key information where not readily available.

Integrated Blade switches (Technology Innovation)

Higher throughput and increased security as traffic leaving the chassis is minimised.

Fewer cables and reduced power consumption, lowering operational costs.

Requires a blade chassis (e.g., HP BladeSystem or IBM BladeCenter)

Top of Rack Switches (Technology Innovation)

Higher throughput and increased security as traffic leaving the rack is minimised.

Flatter network for more flexible and efficient virtualisation.

Easier design for scale-out (adding racks) – ie, simply add 2 power cables and 2 network uplinks.

Simplified cabling and reduced power consumption, lowering operational cost.

There are additional components to manage unless an element manager is used as part of the system setup.

Energy Management (Technology Innovation)



Short to Medium-term Projects to Transform Operations

Fourteen short to medium term initiatives have been identified which organisations can implement in order to reduce carbon emissions. Seven of these initiatives were taken from the AIIA implementation guide of the Gershon Report, as outlined on page 36. The other seven initiatives that can require more time, effort and cost to implement are outlined below. Given that these actions may not suit every organisation, careful consideration should be given to both the advantages and disadvantages before adoption.

Table 3 – Short to Medium-term Projects to Transform Operations

2 Executive Summary

Page 12

Long-term Projects that Create a New Agenda

Two key concepts need to be evaluated in order to assist organisations in the creation of an agenda that can be used to establish a long-term vision – they are the concept of a ‘Smart Planet’ and the emergence of ‘Cloud Computing’.

Both concepts enable organisations to embrace the future of a low-carbon economy and provide new business opportunities and operating models that are more productive and efficient.

SmartPlanet

The ‘Smart Planet’ concept encompasses the implementation of initiatives that lead to the replacement of existing products and services with those that are more intelligent and enable energy efficiency.

As a guide, ICT solutions will follow the GeSI SMART framework that was launched in the report ‘SMART2020: Enabling the low carbon economy in the information age’.

ICT can be a crucial factor in the overall transformation (T) to a low carbon economy – as a result of industry standards, monitoring and accounting tools (SMA), re-thinking (R) and optimising the ways in which we live and work.

CloudComputing

Cloud Computing’ focuses on improving the efficiency of provisioning computing power. As such, ‘Cloud Computing’ offers the ability to provide multi-tenanted applications that run on elastically scalable, location independent processing and data storage systems. These facilities are offered on a pay for service basis.

2.4 Why Adopt GreenIT?The adoption of GreenIT is vital to Australian organisations if they are to both reduce carbon emissions and build productivity into the future.

GreenIT can enable organisations to tackle the challenges of climate change by providing opportunities to think differently and find new ways in which to create capacity for innovation, create low-cost platforms for growth and minimise compliance costs and risks.

GreenIT encompasses the entire eco-system of an organisation and offers both technology and business innovations that reduce carbon emissions by working more intelligently.

Technologyinnovation relates to the physical infrastructure associated with IT and offers incremental efficiencies that have the potential to reduce the current global IT industry carbon footprint.

The IT Industry accounted for approximately 2 percent of Global CO2 emissions in 20072 . However, more recent estimates have calculated that this could be as high as 6-8 percent when indirect sources are also included3

Businessinnovationrefers to the application of IT systems that offer a reduction in carbon emissions associated with business operations, thereby offering transformational change that can both reduce operating costs and drive business productivity. Business innovation has the potential to reduce total Business As Usual (BAU) emissions in 2020 by 15 percent.4

2 Gartner, ‘GreenIT: The New Industry Shockwave’, Presentation at Symposium/ITXPO conference, April 2007

3 Section 1 – Letter from Bob Hayward – Director AIIA National GreenIT Taskforce, 2009)

4 GeSI report, SMART2020: Enabling the low carbon economy in the information age(June 20, 2008)

www.smart2020.org

2 Executive Summary

Page 13

Climate change is posing an increasingly significant risk to the way in which we live today. Governments from around the world are coming together to discuss ideas and solutions on how to combat climate change. Some economies have already developed programs underpinned by legislation that are driving businesses to adopt more sustainable business practices.

Recent changes in Australia have included introduction of the National Greenhouse and Energy Reporting (NGER) Act by the Australian Government and the signing of the Kyoto Protocol by Prime Minister Kevin Rudd on 3 December 2007.

The Kyoto Protocol targets aim to reduce carbon emissions by 20 percent in 2020 and 60 percent in 2050 through the implementation of a Carbon Pollution Reduction Scheme (CPRS) across the Australian economy by 2010.

As such carbon emission reduction regulations and polices begin to impact business, new market forces will provide an incentive to adopt greener operations.

Though the fundamental business principles will not change, regulatory and compliance pressures that are targeted at reducing carbon emissions will influence where future investments are made by business.

In order to establish the business case for adopting GreenIT products and services within organisations, it is important to understand the different driving forces from both an ethical and commercial perspective.

Consumers today are increasingly being driven by ethical concerns and are evaluating the overall environmental impact of goods and services before making a final decision to purchase. Giving preference to organisations that shift towards ‘responsibility’ from an overall business and brand management perspective has led to green procurement becoming a new market imperative.

Conversely, government is increasingly focused on saving money (see Gershon Report)5, so the cost benefits associated with adopting GreenIT products and services is becoming more important. In evaluating the different options available, its important to consider the end-to-end life cycle costing (LCC) instead of looking solely at cost. Even though some products and services may be more expensive from an initial cost perspective, the overall cost may be less when the environmental costs associated with waste treatment are considered, hence being seen as more ‘valuable’ in the long-term.

This development is recent and has prompted a major call to action. So, whatever the reasons were for organisations previously putting off ‘going green’, these reasons no longer hold ground given the wide spectrum of drivers from government, business ethics and commercial perspectives. As community levels of education increase on the impact of climate change, the ‘do nothing approach’ becomes progressively more irresponsible.

The second tier of this argument is that the earlier organisations invest in GreenIT practices, the better the RoI and general business outcomes.

5 Review of the Australian government’s use of information and communication technology, Sir Peter Gershon CBE FREng, August 2008.

http://www.finance.gov.au/publications/ICT-Review/index.html

http://www.finance.gov.au/publications/ICT-Review/index.html

2 Executive Summary

Page 14

2.5 Case Study: Canon – GreenIT Drivers

Synopsis

In 2004, Canon established a global environmental performance program with specific targets for the company. The program, Factor 2, provided Canon a framework to measure its progress towards doubling its eco efficiency by 2010, based on 2000 figures.

The initiatives undertaken by Canon to maximise value, while minimising resources were:

1. Maximising resource productivity through Technological Innovation.

2. Reducing environmental burden through improved management efficiency (Business Innovation).

After eight years, Canon reduced CO2 emissions per units of net sale by 30 percent as compared with 2000 figures. Though resulting in some reporting in-normalities, the use of this Key Performance Indicator (KPI) has been an effective communication tool for keeping key stakeholders updated and sustained peoples engagement throughout this long period of time.

In addition, the technology innovations achieved through focusing on waste minimisation assists Canon in being regularly ranked in the top three companies in the USA for patents granted, where many of Canon’s new devices provide customers with significant savings in energy consumption and lower operating costs.

The principles applied by Canon to reduce its carbon emissions can be applied to any organisation, regardless of size.

Taking the time-old approach of measure, monitor and reduce approach, Canon quickly identified the quick win opportunities and then progressively made improvements to further reduce emissions. By focusing on efficiency and productivity by deriving maximum value from minimum resources, Canon has improved its bottom line and reduced its environmental footprint.

Download the full version of this case study

“For us it’s a journey – a continual process of improving the performance of our products while reducing their environmental impact at all stages of the lifecycle. Our part in that journey, as the local Sales and Marketing arm of Canon is to educate our customers to use our products in the most efficient way and to reduce our own impacts - particularly in relation to eWaste and Carbon Emissions.“

Janet Leslie, Quality Safety and Environment Manager, Canon Australia Pty Ltd.

www.canon.com.au

http://www.aiia.com.au/docs/AIIA%20and%20the%20ICT%20Industry/Green%20IT%20eBook/AIIA_GreenIT_eBook_Case_Studies.pdf

http://www.canon.com.au

3 Getting Started

Page 15

3.1 Overview of Quick WinsThe definition of a ‘quick win’ is an initiative that can be implemented immediately, has a minimal implementation cost and provides a quick return on investment. In short, quick wins represent maximum return for minimal effort.

In March 2009, the AIIA released a guide as part of its implementation review of the Gershon Report.

The three high priority options identified in this guide as ‘quick wins’ were to configure PCs to:

1. Use black screens, or static screen savers instead of active screensavers.

2. Automatically shutdown after hours.

3. Enable the measurement of power usage of ICT as a component of total power usage.

These actions are very simple to implement and provide an immediate return on investment. Other quick wins that can be considered are outlined below. Given that these actions may not suit every organisation, careful consideration should be given to both the advantages and disadvantages before adoption. Refer to ‘Quick Wins to Get Started’ chart below.


eLearning (Business Innovation)

Able to deliver quality information consistently across disparate locations at a low cost.

Not as effective as face-to-face. More suited to hard skills rather than soft skills.

Client facing teleconferencing (Business Innovation)

Able to engage with clients at a low cost and reach out to the global marketplace.

Not as effective as face to face. Best limited to lead generation. Keep negotiations face-to-face.

Teleworking (Business Innovation)

Provide greater mobility of the workforce and flexibility of working arrangements.

Not suitable for high priority tasks that require instant collaboration and quick resolution.

Energy management (Technology Innovation)



Eff

ort

Reward

Figure 4: Quick Wins Effort vs Reward Matrix

Minimal Effort

MaximumReturn

http://www.aiia.com.au/pages/gershonteam.aspx

3 Getting Started

Page 16

3.2 Case Study: SEMA – eLearning (Business Innovation)

Synopsis

SEMA achieved increased productivity, competitiveness and profitability by embracing the use of eLearning to provide tailored educational sessions in the fields of business, IT and business transformation skills. By offering greater flexibility for the delivery of educational material, the disruption to business operations was minimised and staff members had the opportunity to progress at their own pace.

From a sustainability perspective, the delivery of eLearning modules on-demand through the internet has provided SEMA with a number of opportunities to reduce the carbon emissions associated with:

• Travel to training courses.

• Hiring of training facilities.

• The provision of paper related course material.

• IT related book resources.

The use of eLearning practices can be implemented within any organisation, regardless of size, language or location.

Though the environmental benefits associated with less travel and paper consumption are becoming increasingly important, it is the increase in staff retention and productivity that provides the strong business case for organisations to make the change to eLearning practices.


“What started as an initiative to solve our growing quality and retention issues, had the unexpected double benefit of fixing our problem, by enabling us to provide training in a more effective, efficient and cost effective way, whilst significantly improving our environmental impact in the IT discipline.”

David Kerr, Commercial Manager – Analytics, SEMA Group

www.semagroup.com.au


http://www.semagroup.com.au

3 Getting Started

Page 17

3.3 Case Study: Tradeslot – Client Facing Teleconferencing (Business Innovation)

Synopsis

Tradeslot reduced the cost and risk of converting international enquiries by using online meeting and teleconferencing software which offered a more viable solution than more traditional methods. Now, online meetings are hosted through CitrixOnline’s ‘GoToMeeting’ offering and all telephony enquires are facilitated using Skype.

Tradeslot has achieved a low cost operating model by virtualising client facing communications and thereby embracing a low-carbon economy. Further, Tradeslot’s clients are also being educated in the practical ways in which they too could progress to a low-carbon economy in the future.

The additional benefits of this change in communication methods include improved customer service and the ability for Tradeslot to have a viable global presence.

Client facing teleconferencing is applicable to all business operations and is simple to use. While the environmental benefits of not travelling can be measured (and are increasingly important), it is the savings of direct travel costs and lost time that make this a viable and beneficial practice.


“We use online meeting software several times a week. It is more useful than a demo video because we can begin to build a relationship with potential clients by listening to their needs and customising what they see from the outset.”

Jesco d’Alquen, CEO, Tradeslot

www.tradeslot.com.au


http://www.tradeslot.com.au

3 Getting Started

Page 18

3.4 Case Study: PowerfulCMS – Teleworking (Business Innovation)

Synopsis

PowerfulCMS utilises low cost techniques to manage international sales and mobilise a global workforce. The latest project management and client collaboration ‘Software as a Service’ (SaaS) offerings centralise all communication in a virtual environment that is shared between customers and staff regardless of their global location.

Adopting the use of SaaS tools in order to facilitate collaborative environments on-demand has enabled PowerfulCMS to establish a clear value proposition and competitive advantage. Cloud computing has enabled PowerfulCMS to manage cash flow more effectively as software licence costs become an operational expenditure instead of a capital expenditure. Further, by embracing the global workforce, PowerfulCMS is able to increase overall productivity.

From a sustainability perspective, the use of remote work environments also provides PowerfulCMS with opportunities to reduce carbon emissions, thereby requiring fewer natural resources per unit of production and emitting less CO2e (CO2 equivalent) emissions into the atmosphere.

Though this model demands a highly skilled workforce, these principles can be applied to any business considering new ways in which to increase its value proposition and competitive advantage.


“We had to innovate to find ways to break into a rather saturated market, reduce costs and increase value for our end clients. In doing so I am pleased to find the efforts undertaken positively impact the environment.”

Joe Matthew, Account Manager, PowerfulCMS

www.powerfulcms.com


www.powerfulcms.com

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3.5 Case Study: Innovation Science – Energy Management (Low investment option – Technology Innovation)

Synopsis

Innovation Science was constrained by the existing electricity supply arrangements associated with its leased office space, however, the company implemented practical and cost-effective methods of reducing carbon emission by taking a focus on minimising consumption.

The initiatives were:

1. A ‘power-down’ policy for all end-user related IT and peripheral equipment (PCs/devices).

2. Programmable shut-down periods for non-critical servers and network infrastructure.

3. The replacement of workstation UPS’ with high-end surge protection boards.

4. The implementation of energy efficient lighting.

The reduction in energy consumption was projected to achieve a 5X RoI over five years with the initial outlay of $865 projected to pay itself off in less than 11 months. Actual energy consumption figures over the first few months since implementation confirm these projections.

This achievement clearly demonstrates that an organisation can make a contribution to reducing carbon emissions, even if faced with constraints out of its control. Focusing on working smarter and more efficiently can improve the bottom line and benefit the environment at the same time.


“An average employee is at work for just 23 percent of a week: Imagine what power could be saved during the other 77 percent.”

Michael Haddy, Managing Director, Innovation Science Pty Ltd

www.iscience.com.au


http://www.iscience.com.au

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4.1 Getting Ready for Further Action – General ConsiderationsThe landscape for the adoption of GreenIT is diverse and varies depending on the size and complexity of an organisation.

As a general rule, GreenIT will have touch points within every department of an organisation ranging from governance to operations. The main driver will be to ‘do more with less,’ either through implementing efficiency gains or re-engineering existing business processes.

The key areas for consideration are:

1. Policy

2. Procurement

3. Disposal

4. Infrastructure

5. Energy management

6. Managed services

Planning a GreenIT adoption program may involve organisational brainstorming in order to develop new products and services not currently offered by the organisation. The most feasible options can then be prioritised into a roadmap, starting with some ‘quick wins’ followed by the progression towards more challenging short-to-medium-term initiatives.

The services of a specialised consulting firm may be considered in order to assist an organisation with this part of the process. By enlisting the services of a professional, the time taken to tailor a roadmap that details the ‘right fit’ for an organisation can be significantly reduced.

For more details, refer to Section 4.3 – Developing a GreenIT Roadmap and Appendix 2 – GreenIT Success Factors.

Another important consideration that will greatly impact the viability of different GreenIT options is whether the site is a ‘greenfield’ or ‘established’ site.

A ‘greenfield’ site can take advantage of the latest technology developments and factor in future agility needs to meet the ever-changing business demands.

An ‘established’ site will be limited by previous decisions and tends to be more strategic in nature. As such, it is best to combine technology updates with major projects or future ‘refresh’ programs in order to leverage capital expenditure investment.

Figure 5: GreenIT General Considerations Overview

Policy Procurement

Governance

Policy

Disposal

InfrastructureEnergy

ManagementManagedServices

Eff

icie

ncy

Gai

ns

Pro

cess

Re-

eng

inee

rin

g

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4.1.1 Case Study: Fujitsu – Journey Over Time

Synopsis

Fujitsu’s philosophy is to drive business decisions by taking the stance that environmental preservation is not an additional cost but a corporate value.

From 1970, Fujitsu has demonstrated its ongoing commitment to sustainability by conducting a number of focused environmental protection programs. This was then extended in 1993 to become a more formal environmental program which has involved the following stages:

• StageI–II(1993-2000): Establishing environmental management as a corporate agenda;

• StageIII(2001-2003): Embracing recycling, waste minimisation and green procurement;

• StageIV(2004-2006): Transitioning from environmental management to management for a sustainable environment;

• StageV(2007-2009): Becoming more aware of environmental issues and identifying the most suitable approaches to implement; and

• StageVI(2010->): Establishing global targets and working towards the 2020 vision.

As a result, all operations throughout Fujitsu have been transformed, thereby delivering both efficiency gains and optimising business processes as a result of re-engineering.

The key areas focused on include: policy, procurement, disposal, infrastructure, energy management, managed services and transformation through efficiency gains and business process re-engineering.

Those principles that Fujitsu follows which can be applied to SMEs are:

• reduce the environmental impact throughout the product lifecycle.

• conserve resources to create best-of-breed eco-friendly products.

• reduce risks caused by the use of harmful chemical substances.

• help customers improve environmental efficiency.

• disclose environment-related results and critique for continuous improvement.

• encourage employees to keep in mind the impact of their business activities.


“If you really want to understand the benefits and get the most value it needs to come from the top down. It needs to be an IT and a business strategy from the start – a whole-of-business strategy.”

Alison O’Flynn, Head of Sustainability, Fujitsu Australia Limited

www.fujitsu.com/au/


http://www.fujitsu.com/au/

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4.2 GreenIT Responsibilities The adoption of GreenIT across an organisation impacts every department, with each stakeholder having a different set of responsibilities on which to focus. Illustrated below is an example of how this may look within an organisation where the responsibilities are clearly segregated.

Figure 6: GreenIT Responsibilities Overview

DirectorRisks & Liabilities

FinanceCarbon Disclosure

Reporting

ITImplement GreenITproducts & services

MarketingPromote green

products & services

SustainabilityCoordinate GreenProgram of works

As organisations continue the journey of ‘greening’ business operations, more complex projects might require the establishment of a Sustainability Business Unit in order to manage the accountability of business transformation.

In practice, the implementation of these responsibilities will vary depending upon the size of the organisation and volume of carbon emissions being released.

Larger organisations will have stricter regulations and compliance requirements, which in turn means additional reporting on key performance indicators in order to demonstrate that efficiency gains are being achieved. This will in turn put additional pressures on the smaller organisations to deliver ongoing improvements that result in lower carbon emissions.

As the low-carbon economy integrates into business operations and matures over time, more and more organisations will be required to effectively measure and manage carbon emissions if they are to remain in business.

Though the smaller organisations may not have the resources to manage carbon emissions with the same rigor as that of larger organisations, a degree of commitment will need to be demonstrated and independently validated in order to meet the requirements of the larger organisations.

4.2.1 Director – Risks and LiabilitiesThe key areas that Directors need to become familiar with include:

• NGER Thresholds (Liability)

• Future Carbon Reduction Targets (Risk)

• Impact of CPRS on EBIDA (Risk)

• Impact of Trends in Data Centre operational costs (Risk)

In addition to the key areas identified at the time of publishing, in future Directors may also need to consider other factors including emerging legislation/trends for migrating towards a low carbon economy.

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NGERThresholds(Liability)

The National Greenhouse and Energy Reporting (NGER) Act is an Australian Government initiative that provides a single national framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects and energy use and production of corporations.

It is vital that company directors understand their situation in relation to the NGER thresholds. The cost of non-compliance is significant, with penalties of up to $220,000. Additional overdue daily penalties plus criminal charges will apply for executive officers found to be in breach.

FutureCarbonReductionTargets(Risk)

It is important to understand the Australian Government’s National Emissions Target that is set for 2020 as it gives a picture of how much change is planned in the future. Taking a gradual approach, the required cuts in emissions will progressively increase to 60 percent by 2050. This will significantly impact the profitability of those organisations that are not prepared, whereas organisations that start early and take a leading role will have the competitive advantage over others.

125 Kt 500 Tj

25 Kt 100 Tj

Cor

pora

tions

Fac

ilitie

s

87.5 Kt 350 Tj 50 Kt 200 Tj

■ Register by 31 Aug■ Report by 31 Oct■ Publication by 28 Feb



Figure 7: NGER ACT Reporting Timeline – National Greenhouse and Energy Reporting Act 2007.

Kt = Kilotonnes in CO2 equivalent of greenhouse gases emittedTj = terajoules (1012 joules) of energy consumed or produced

1st Reporting YearJuly 2008 – June 2009

2nd Reporting YearJuly 2009 – June 2010

3nd Reporting YearJuly 2010 – June 2011

4th Reporting YearJuly 2011 – June 2012

Figure 8: Australia per capita emissions – Australia’s National Emissions Target Fact Sheet, May 2009.

100%

66%

1990

tonn

es C

O2-

e / p

er p

erso

n

0

5

10

15

20

25

30

35

2008 2020-5 target

2020-15 target

2020-25 target

85%

59%

52%

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ImpactofCPRSonEarningsbeforeinterest,taxes,depreciationandamortisation(EBIDA–Risk)

The cost of business operations will grow exponentially with the cost of carbon as a result of the CPRS. The cost of carbon is driven by policy, scheme design (i.e. size of the cap) and developments in the international carbon markets.

Highly carbon intensive industries such as energy and utilities potentially face higher risks in terms of impact on their earnings. Whilst direct emitters face permit liability, many other industries (e.g. retail) face significant indirect costs arising from the increase in electricity, fuel and supply chain costs.

Companies with carbon trading and hedging strategies can minimise their overall carbon trading costs. Therefore, it will be essential for businesses to embrace GreenIT in order to minimise carbon emissions and remain competitive in the future.

ImpactofTrendsinDataCentreoperationalcosts(Risk)

Company directors also need to consider the current trend in data centre operational costs. The move towards denser computing and virtualised environments has resulted in operational costs increasing in an unsustainable manner. Careful consideration will need to be given to the ongoing viability of existing data centre operations, weighed up against the cost benefits of investing in more efficient data centre operations.

0

20%

15%

10%

5%

Utilities

Energy

Transportation

Retailing

Most other Industries

Figure 9 – Impact of CPRS on Profitability – Carbon Cost Exposure per Industry Group, RepuTex 2007.

$0.69 $1.39 $2.27 $5.54 $11.08 $22.17 $44.34

Server CapEx Server OpExWhat does this represent

20052000 2008 2012 2015

All Australian managers of Data Centres face huge transformational challenges to handle new generation servers and storage devices that are immensely fast but also heavy, dense, power-hungry and heat generating.

200-400Kg per Rack

2-4Kw per Rack

Highly virtualised & optimisedSupport internal and possiblyexternal Cloud Computing

1500Kg+ per Rack

25-40Kw per Rack

Source power technology Grid from fossilGrid from fossil & renewables with some

distributed generation, some of which is renewables

Cooling technology Room based cooling Rack based cooling Component based liquid cooling

Figure 10 – Trends in Data Centre operational costs – Office of Innovation May 2009 Sustainable ICT, CSC.

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4.2.2 Finance – Carbon Disclosure ReportingIn order for an organisation to make effective decisions regarding the management of the risks and liabilities associated with NGER and the CPRS, it must first accurately measure its current emission levels.

The most prevalent and widely supported mechanism for calculating the carbon emission for an organisation involves separating the sources of carbon emissions into the three scopes as shown in Figure 11 (commonly known as the GHG Protocol).

Initial calculations are commonly done in-house using existing financial information to provide indicative results. This creates the basis of a carbon inventory which identifies the sources and associated carbon emissions of each business activity and provides insights into the company’s exposure to any compliance or supply chain obligations.

A more comprehensive assessment must be conducted by an independent auditing company specialising in measuring carbon emissions if carbon emissions are to be disclosed externally. This is standard practice for financial reporting and ensures consistency, transparency and repeatability in carbon disclosure across different industries.

Refer to Appendix 11: Local Green Directories for a list of organisations that can assist in measuring carbon emissions.

Figure 11: Operational Boundaries, HOT CLIMATE, COOL COMMERCE: A Service Sector Guide toGreenhouse Gas Management, WRI Report, May 2006.

Scope 2 Indirect

Purchased electricity for own use

Scope 1 Direct

Company ownedvehicles

Fuel combustion

Scope 3 Indirect

Production ofpurchased materials

• Product use• Outsourced activities• Contrator owned vehicles• Waste disposal• Employee business travel

CO2 SF6 CH4 N2O HFCs PFCs

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4.2.3 Information Technology – Implementing GreenIT Products and ServicesThe following section has been written in collaboration with CSC, a leading global consulting, systems integration and outsourcing company whose mission is to provide customers in industry and government sectors with solutions that are crafted to meet their strategic goals and enable them to profit from the advanced use of technology.

Introduction

Once a commitment to improvement has been made and a baseline for carbon emissions established, the IT department generally needs to take a closer look at its operations to identify where improvements can be made. The following five pillar framework is a useful implementation model which can be used as a guide, depending upon the size and efficiencies of the existing infrastructure.

Pillar1:Reduce greenhouse gas emissions, waste and water use within the span of control of the ICT department e.g. re-designing data centres for greater efficiency to reduce energy consumption (includes server virtualisation)

Pillar2: ICT department contributions to measure and report enterprise greenhouse gas emissions, waste and water use. e.g. use of systems and tools to better capture and manage greenhouse gas emissions data

Pillar3: ICT department contributions to reduce greenhouse gas emissions, waste and water use within core enterprise processes. e.g. use of video conferencing facilities to reduce the need for travel and associated emissions

Pillar4:ICT department contributions to reduce greenhouse gas emissions, waste and water use within the enterprise value chain. e.g. facilitating online invoicing, statements and payment

Pillar5: ICT department contributions to business transformations necessary for a carbon economy. e.g. developing products to support the ‘green’ market such as a green credit card which rewards green purchases and allows reward points to be spent on environmental initiatives.

Figure 12: Environmental Impacts of Sustainable IT: Before and After, The Five Pillars of the Environmentally Sustainable ICT Framework, CSC.

Emissions / wastewithin value chain

Poorly prepared for carbonconstrained economy

The ‘98%’Challenge

Immature emission, waste andnon-finance reporting

Fully prepared for carbonconstrained economy

Sophisticated emissions, wasteand non-finance reporting

Pillar 5Total Reductions

in Emissions & Waste through business

transformation

Pillar 4Emissions / wastewithin value chain

Emissions / wastewithin the business

Pillar 3Emissions / wastewithin the business

Emissions / wastewithin ICT and

communicationsPillar 2

Emissions / waste within ICT and communications

Pillar 1 New ICT used to drive efficencies above

$

www.csc.com/au

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Pillar1:Reducinggreenhousegasemissions,wasteandwaterusewithinthespanofcontroloftheICTdepartment

The first pillar outlines good practices for the ICT department to put its own ICT house in order. This pillar deals with practices within the span of control of the office of the CIO. The ICT department has to be credible and ‘walk the walk’ by taking every possible step towards improving the environmental sustainability of the ICT department itself before it can engage credibly and productively with the rest of the enterprise as to how technology can contribute to broader environmental sustainability goals.

The IT Industry accounted for approximately 2 percent of Global CO2 emissions in 20076. However, more recent estimates have calculated that this could be as high as 6-8 percent when indirect sources are also included (please refer to Section 1.2 Letter from Bob Hayward, Director AIIA National GreenIT Taskforce, 2009).

Pillar2:ICTdepartmentcontributionstomeasuringandreportingenterprisegreenhousegasemissions,wasteandwateruse

The second pillar details the need for the ICT department to collaborate with environmental managers within the enterprise in order to construct an entirely new class of enterprise application for non-financial management information. It has taken enterprises many decades to reach the current level of sophistication of financial reporting. Within the next few years, enterprises will be required to track emissions, waste and water use across their entire value chain to the same level of detail and rigour with which financial data is tracked today.

ICT management needs to partner with the appropriate business units in the development of solutions for environmental sustainability which should include adequate capture, measurement, monitoring and reporting of non-financial indicators for both internal and external audiences. This data will come under increasing scrutiny and will eventually have to be assured and audited.

Pillar3:ICTdepartmentcontributionstoreducinggreenhousegasemissions,wasteandwaterusewithincoreenterpriseprocesses

The third pillar requires ICT management to engage with the enterprise to identify ways in which technology can be used to reduce emissions, waste and water use across core business processes. Paradoxically, good results here may require an increase in the emissions of ICT itself, yet these should be more than offset by the gains to be had across the entire enterprise.

This is one area where ICT management can contribute ideas and support to help with the challenge of reducing the other 98 percent of the world’s emissions not directly attributable to the ICT industry7.

6 Gartner, ‘GreenIT: The New Industry Shockwave’, Presentation at Symposium/ITXPO conference, April 2007

7 - Section 1 – Letter from Bob Hayward – Director AIIA National GreenIT Taskforce, 2009)

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Pillar4:ICTdepartmentcontributionstoreducinggreenhousegasemissions,wasteandwaterusewithintheenterprisevaluechain

The fourth pillar extends this concept more broadly, with ICT management engaging in a sustainability dialogue across the entire value chain of the enterprise including the supply chain, business partners and customers.

Pillar5:ICTdepartmentcontributionstobusinesstransformationsnecessaryforacarboneconomy

The final pillar of the holistic environmentally sustainable framework looks at the ICT department’s contribution to business transformations that may be required to reflect a new economic reality where emissions are priced, carbon is constrained and energy costs may be significantly higher than today. However, there is a clear customer preference for more environmentally sustainable products and services and there are new opportunities, as well as new types of risk.

4.2.4 Marketing – The Legal Requirements of Promoting Green Products and ServicesEnvironmental claims made by suppliers’ goods and services are becoming a major factor in the overall decision making process. Customers look to suppliers for answers and want to be informed as to how they can make their contribution towards reducing the environmental impacts of their actions.

To help customers make informed decisions, it is important for all environmental claims to be scientifically sound, appropriately substantiated and independently audited. Customers should be able to trust the claims being made by suppliers and rely on the information provided to them.

Not only is this good business practice – it is law.

The Trade Practices Act 1974 (the Act) states that businesses must not mislead or deceive consumers in any way and there are serious penalties for businesses that fail to meet these requirements.

The ACCC takes the conditions of the Trade Practices Act very seriously, as is illustrated by the enforcement pyramid shown in Figure 13. Cases of ‘green marketing’ that are found to be deliberately misleading or willfully in breach of the law are likely to feel the full brunt of legal action from the regulator.

If you want to make environmental claims about your business or your product, they should be clearly and accurately explained. Generally, a claim should be honest and truthful, must detail the specific ‘green’ part of the product or process to which it is referring, use language which the average member of the public can understand, explain the significance of the benefit and be able to be substantiated.

Refer to the ‘Green marketing and the Trade Practices Act’, published by the ACCC, to assist you in gaining a further understanding of how you can promote your products and services as ‘green’.

http://www.accc.gov.au/content/index.phtml/itemId/815763

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Figure 13 – Green marketing and the ACCC, ACCC.

Figure 13: Green marketing and the ACCC, ACCC.

ACCC enforcementpyramid

ACCC levels of concern over green claims

High Concern

Less Concern

CourtCases

Enforcableundertakings

Liasion voluntary compliance

Education,advice and persuasion

Broad,unverified

claims

Narrow,easily verified

claims

The ACCC promotes competition and fair trade in the marketplace to benefit consumers, businesses and the community. It also regulates national infrastructure services. The ACCC’s primary responsibility is to ensure that individuals and businesses comply with the Commonwealth competition, fair trading and consumer protection laws.

http://www.accc.gov.au

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4.2.5 Case Study: Intel – Sustainable Program Office

Synopsis

At Intel, what began as a grass roots initiative when executives asked the question, ‘What is sustainable IT?’, has become a formalised IT Sustainability Program Office.

Intel’s key aims are to deliver initiatives that focus on strategy development and education, development and delivery of sustainable metrics, drive the sustainable IT project and innovation portfolio, support external events and align eco-technology and corporate affairs.

The key enablers that develop a cohesive, integrated strategy and a sense of urgency are:

• Cultural change, through building a sustainability mindset.

• The development of a sustainability framework for maintaining focus on critical activities.

As a result, Intel has identified the key initiatives that will provide the highest impact in terms of sustainability benefits, cost considerations and potential results.

These include a reduction in energy consumption and increased efficiency of the data centre (technology innovation); incorporating new products and technologies into the office environment to increase productivity and reduce energy consumption (business innovation); and the sharing of experiences with others in order to collaborate and improve results beyond the enterprise.

Establishing an IT Sustainability Program Office provided Intel with the governance structure required to manage and measure efforts across the entire enterprise. It also provided the framework required for Intel to integrate sustainability principles into all the key decision-making processes that created awareness and a sense of urgency within the organisation.

The same principles are just as applicable to SMEs, though they may not be as formally implemented due to the overheads required.

SMEs still need to balance proposed initiatives with pragmatism and corporate goals to ensure that the investment in ‘green’ technologies results in increased efficiency and lower costs.


BuildingaLong-termStrategyforITSustainability

“Intel IT is engaged in developing a broad, ongoing sustainability strategy to help Intel consume fewer resources and emit less waste. In analysing the business case for IT sustainability, we identified the bottom-line benefits and defined the metrics that enabled us to effectively reduce our environmental footprint. Successful sustainability initiatives are now being incorporated beyond the IT organisation and we will continue to take a structured approach to identifying solutions and instilling long-term sustainability.”

Sally Wellsandt, Intel Sustainability Program Manager, Intel Corporation, April 2009

Steven Snyder, Intel Program Manager, Intel Corporation, April 2009

www.intel.com/au


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4.3 Developing a GreenIT RoadmapThe purpose of having a GreenIT Roadmap is to provide business operations with an holistic plan for the future environmental direction of an organisation that identifies the pathway for making existing operations more sustainable.

A GreenIT Roadmap provides an effective framework for communicating the ‘plan’ and gaining buy-in from all key stakeholders. However, it does not consider unplanned events and may become quickly outdated as circumstances change.

Developing a GreenIT Roadmap for an organisation is a highly specialised process, requiring expert knowledge of existing business operations, up-to-date evaluation of existing IT infrastructure and a clear direction of where the organisation wants to be in the next 2-5 years.

The development of a GreenIT Roadmap is commonly conducted by trusted advisory consulting services, however, it can be done in-house if preferred. For a list of both tactical and strategic initiatives aligned with best practices, refer to Appendix 2 – GreenIT Best Practices.

Typically, the process of developing a GreenIT Roadmap will involve a series of interviews with business stakeholders; an exercise to benchmark existing processes and infrastructure against best practices; and an evaluation process in order to identify the best initiatives to be undertaken to provide the best return on investment.

Each initiative is typically categorised into quick wins, medium-term initiatives and long-term initiatives.


Table 5: Organisational Transformation Initiatives

Stage ProjectType Duration Description

1 Quick wins <12 months Can be implemented immediately with minimal cost.

2 Short to medium-term projects

1-2 years Minimal investigation is required to develop the business case.

3 Long-term projects > 2 years out Requires business feasibility in order to develop a high-level business case which confirms viability.

The development of a GreenIT Roadmap will take one to two months to complete and will provide a 2-5 year program of works for ‘greening’ business operations. Depending upon the complexity of the environment and detail required in the GreenIT Roadmap, other activities such as ‘value chain mapping’ and ‘innovation brainstorming’ can be incorporated into the process.

Value chain mapping helps identify areas of wastage in existing processes which can be eliminated and would otherwise not have been identified.

As Is Dissatisfaction

with how things are nowTo Be Vision of what is possibleTransformation

Cost of change


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Innovation brainstorming helps identify the opportunity for new products and services not currently provided that would facilitate growth and further market penetration.

Unlike traditional IT strategic planning, the development of a GreenIT Roadmap also needs to consider the environmental impacts of different business operations.

There are a number of different scoping projects that an organisation may want to consider, these are outlined below.

These actions will not suit every organisation and careful consideration should be given to the advantages and disadvantages before implementation.

Table 6: GreenIT Roadmap scoping projects

Project Objective Advantages Disadvantages

Green Business Certification Program

To take immediate action to save water, energy, waste and money.

This gives a quick assessment and identifies quick wins at a low cost and high return on effort. It also provides a baseline for benchmarking future activities.

Some of the bigger actions can take time with longer term payoffs.

Life cycle analysis To understand the overall environmental risks and impacts of your operations.

Can identify the biggest environmental risks and impacts.

Does not measure social impacts.

Carbon Calculation To measure the CO2 emissions of your operations.

Provides a tangible measure of your CO2 emissions.

Only considers one aspect of an ecological footprint.

Green Key Performance Indicators (KPIs)

To define a series of environmental targets.

Provides tangible goals and evidence of improvement.

Can provide unnecessary overheads.

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4.3.1 Case Study: Telstra – Cost Benefit Analysis Calculators (Business Innovation)

Synopsis

In building a roadmap, it is important for an organisation to carefully consider the current situation, the future goals of the organisation and assess what the best opportunities are based on the cost of change to achieve the desired outcomes.

As a part of this process, the cost justification can sometimes be difficult to develop, making it difficult for an effective financial decision to be made due to the lack of confidence and uncertainty in the calculations.

A white paper entitled ‘Using ICT to drive your sustainability strategy’ was developed by Telstra to illustrate new Return on Investment (RoI) tools that can be used by organisations to help them in determining the feasibility of the following four proven ICT technologies:

• Video Conferencing

• Teleworking

• Web contact centres

• Fleet and Field Force Management

The RoI calculator highlights how these four proven ICT technologies can deliver cost savings to organisations, significant environmental benefits and work-life balance benefits to employees. This includes an estimation (based on certain assumptions) of greenhouse gas emission reductions and employee productivity outcomes by assessing the anticipated financial costs and savings to the company by adopting each alternative.


“Sustainability practices are now a critical business issue being driven by a variety of factors including government regulation, corporate social responsibility and increasing economic pressures”.

“Through the new Return on Investment (RoI) tools, organisations can estimate the commercial and environmental savings from investing in four specific ICT solutions. They estimate greenhouse gas emission reductions and employee productivity outcomes by assessing the financial costs and savings to the company for each alternative.”

Hugh Saddington, General Manager Marketing Strategy and Analytics, Telstra Enterprise and Government

www.telstra.com.au

http://www.telstraenterprise.com/researchinsights/Pages/Sustainability.aspx


http://www.telstra.com.au

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4.3.2 Case Study: PCA People – Green Business Certification Program (Business and Technology Innovation)

Synopsis

PCA People utilised GreenBizCheck’s (http://www.greenbizcheck.com/) certification program to quickly identify the most suitable initiatives it could adopt in order to save money and help the environment. By focusing on quick wins and short-terms initiatives, the initial certification program was completed within eight months.

The main areas covered through GreenBizCheck’s certification checklist include energy conservation; water consumption reduction; waste reduction; transportation and travel; purchasing; supply chain sustainability and carbon calculation, plus subsequent carbon offset purchase.

Recently, a new product, GreenITCheck, which has a specific focus on an organisation’s ICT footprint, was added to the certification checklist.

GreenBizCheck’s practical program helped PCA People quickly implement environmentally responsible business practices. Over an eight month period, PCA People adopted a number of initiatives that provided the following benefits:

• Saved money through reduction of energy and water usage minimisation.

• Attracted like-minded eco-savvy customers.

• Attracted and retained staff through their commitment to the environment.

• Deliverd a tax-deductibility for the certification process.

The certification process is suitable for a wide range of businesses but is mainly focused on assisting SMEs to get a better understanding on what their current environmental footprint is and how this then rates against a number or predetermined criteria. It is relevant to any organisation, both large or small, because it enables you to conduct an assessment on your organisation’s ‘footprint’ using the comprehensive GreenBizCheck checklist.

An organisation is rated on the completion of this checklist and is provided with a certification level based on this rating. There are three distinct levels of certification: Gold, Silver and Bronze. When you have received the online report you can begin to improve your score by implementing recommended measures. In other words, you can continuously improve your score and your certification level by committing to certain undertakings which are weighted according to the relative environmental impacts of the underlying action. Importantly, the report also provides practical, local suggestions regarding what you can do to improve your score and certification level. This advice is very useful for SMEs and busy professionals who are time poor. Larger organisations will find the initial checklist and scoring system useful for building a business case for a more detailed assessment or specialised focus.


“Our ethos at PCA is ‘People First’ and this has been strengthened, internally and externally, throughout the GreenBizCheck certification process. PCA People worked closely with GreenBizCheck to achieve a green business certification. It has fostered a team commitment to future sustainability of our environment and also our business. It is simply wonderful to guide a group of professionals that lead the local industry on sustainability and all work to deliver on our corporate responsibilities.”

Allison Guy-Ritchie, Managing Director, PCA People

www.pcapeople.com

http://www.greenbizcheck.com/


http://www.pcapeople.com

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4.3.3 Case Study: Toyota – Developing a GreenIT Roadmap (Business and Technology Innovation)

Synopsis

Toyota wanted to develop IT specific sustainability strategies for its three main Victoria sites in order to ensure that IT contributed to meeting the targets in its five year Environment Plan.

Fujitsu’s framework for enterprise sustainability was used to identify new opportunities and improvements at each of Toyota’s Victorian operations.

Following the completion of a series of milestones, a program of works was developed which consisted of a number of quick wins, short to medium-term projects and long-term projects.

A potential savings of 43 percent on Greenhouse Gases (GHG) and electricity consumption was modelled on the implementation of the quick wins which involved office-based IT equipment initiatives (printer, copier, fax and AV). Further reductions were forecast as being realised with the implementation of stage 2 and 3 initiatives which were planned for the future.

Other key benefits included:

• Clearly defined KPIs for the CIO.

• A realistic program of works that can achieve tangible cost savings and reductions in CO2 emissions.

• The inclusion of externally hosted facilities carbon emissions into line-of-sight for reporting on carbon emission targets.

Following a methodological process is essential in order to ensure the successful achievement of project outcomes. Careful consideration needs to be given to each individual business environment so that it can be appropriately assessed and benchmarked against in order to ensure the original benefits are realised. Though smaller organisations will not have the time and money to undertake a scoping exercise as comprehensive as that of Toyota, the principles can still be applied with the details summarised accordingly.


“It’s an opportunity for an IT department to move from a more reactive approach. It builds on the business’ existing environmental strategies and also outlines a framework for collecting information on emission and carbon trading.”

James Scott, CIO, Toyota Motor Corporation Australia

www.toyota.com.au


http://www.toyota.com.au

5 Taking Further Action

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5.1 Overview of Medium-term InitiativesThe definition of a medium-term initiative is one that can be implemented within the next 1-2 years and requires minimal investigation in order to develop a viable business case. Medium-term initiatives require more effort and planning to implement than quick wins, however, they also provide greater rewards.

Eff

ort

Reward

Figure 15 – Medium Term Initiatives Effort vs Reward Matrix

MediumEffort

MaximumReturn

In March 2009, the AIIA released a guide as part of its implementation review of the Gershon Report. The seven medium-term initiatives identified in the report were:

• Encourage agencies that are undertaking a desktop refresh to consider replacing personal computers with more energy efficient alternatives.

• Replace inefficient monitors with more energy-efficient models at the end of their life cycle (e.g. replacement of CRT monitors with more energy efficient alternatives).

• Encourage those agencies undertaking a telephone refresh to consider technologies that optimise energy use efficiency and minimise duplication of handsets per employee (e.g. VoIP as an alternative to fixed voice handsets).

• Encourage tools and practices to assist employees to reduce the number of printed pages per employee per month.

• Introduce the mandatory inclusion of green ICT requirements in all agency’s ICT RFT (request for tender) documentation.

• Require respondents to detail energy usage information for their proposed solution.

• Require that respondents indicate whether they are a signatory to the National Packaging Covenant.

You can download this information from the AIIA’s Gershon website portal, click here.

These initiatives are applicable to most business environments and provide an insight into how they may impact the procurement process throughout the supply chain. The other medium-term initiatives that can be considered are outlined below. As these actions may not suit every organisation, careful consideration will need to be given to both the advantages and disadvantages before adoption.

http://www.aiia.com.au/pages/gershonteam.aspx


Page 37

Table 7: Medium-term Initiatives


Data Centre optimisation (Technology Innovation)

Reduces the energy required to operate a data centre.

May not generate sufficient savings to justify for smaller data centres.

Virtualisation (Business and Technology Innovation)

Server – reduces the number of physical servers that need to be powered.

Desktop – quicker deployment, increased security, greater mobility and centralised operations

Server – increasing the density and cooling loads may require additional investment that counters benefits.

Client – not suited to environments requiring high processing power and bandwidth.

Server refresh using energy efficient equipment (Technology Innovation)

Provides immediate benefits in reduced power consumption and increased performance.

Requires high capital cost and down time to manage the migration.

Carbon Management System (Business Innovation)

Provides effective framework for measuring, monitoring and reporting progress made.

Additional overheads will be required to collect key information where it is not readily available.

Integrated Blade switches (Technology Innovation)

Higher throughput and increased security as traffic leaving the chassis is minimised. Fewer cables and reduced power consumption, thereby lowering operational costs.

Requires a blade chassis (e.g., HP BladeSystem or IBM BladeCenter).

Top of Rack Switches (Technology Innovation)

Higher throughput and increased security as traffic leaving the rack is minimised.

Flatter network for more flexible and efficient virtualisation.

Easier design for scale-out (adding racks) – simply add 2 power cables and 2 network uplinks.

Simplified cabling and reduced power consumption, thereby lowering operational cost.

There are additional components to manage unless an element manager is used as part of the system setup.

Energy Management (Technology Innovation)




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5.2 Case Study: Corporate Express – Data Centre Optimisation (Technology Innovation)

Synopsis

Corporate Express, Winner of the 2008 Australian Sustainability Awards, designed and built a highly efficient, next generation data centre facility that provided minimal footprint and maximum flexibility, whilst aligning the design to company CSR strategies.

‘Better than best’ practice Power Usage Effectiveness (PUE) was achieved by leveraging the benefits of first virtualising the existing infrastructure to minimise the requirements of the new data centre facility.

Initial virtualisation activities achieved include:

• A 70-80 percent reduction on data centre space, power, cooling requirements.

• The removal of 184 physical servers.

• The reduction of Total Cost of Operation (TCO) of servers by 40 percent.

The next generation, purpose built data centre achieved:

• A PUE of 1.49 – where 67 percent of all energy is consumed for computer processing.

• Minimal construction costs – approximately halved the construction costs for a TIA-942 Tier III data centre.

• A reduction of $23,000 per year in electricity costs.

Though more suited to larger organisations with a large number of servers, the same principles can be adapted to an organisation of any size in relation to aligning the data centre strategy with corporate sustainability objectives. The larger the data centre, the larger the potential savings that can be achieved.


“A key element in optimising the purpose built data centre was to firstly virtualise the environment. This allowed the new data centre to be built with a much smaller footprint, providing large savings on construction costs.

Though great efficiency gains have been achieved, ongoing monitoring and adjustment is still required to ensure the optimisation of the hot/cold aisle configurations, keeping temperature differences between hot/cold aisles exactly seven degrees Celsius. This can be achieved by using an aneometer to adjust the air velocity at each individual floor tile to prevent overcooling and wasted energy”

Mark Jones, Technology Infrastructure Manager, Corporate Express

www.ce.com.au


http://www.ce.com.au


Page 39

5.3 Case Study: Jetstar – Virtualisation (Business and Technology Innovation)

Synopsis

Jetstar embarked on a virtualisation program to commoditise all IT operations which was aimed at addressing key market challenges and supporting its aggressive growth strategy.

The technology roadmap used to achieve this was broken up into the following phases: minimise; centralise; radicalise; commoditise; outsource; and utilise Application Service Providers.

As a result, Jetstar is the only airline in the world that can access all its back office and business systems from any international check-in counter at all international airports in which the airline operates.

Virtualisation strategies reduced the physical server count by 120 units, reduced 2007/2008 IT costs by 0.82 percent of total revenue and increased the desktop asset life from 3 to 10 years.

This represents a gross IT saving for Jestar of between $805,000 and $1,250,000 per annum and contributed to an annual saving of 87,500 tonnes of CO2.

Adopting a strategy to virtualise operations is a great way to increase efficiency and productivity so that business goals can be achieved faster, better and cheaper.

This approach is more suited to organisations that have larger operations, enabling the cost benefits of virtualising to be achieved. For smaller operations, virtualisation may not be the best option as it may be possible to gain greater efficiency gains by simply upgrading to more energy efficient equipment.


“Jetstar’s virtualisation projects in the past and in a future are focused on delivering better IT cost models, organisational agility and choice. In addition to vitalising servers and systems and applications, Jetstar has extended the virtual programs through to the end appliances.

For the Jetstar business, virtualisation is a business enabling technology. VMWare has been an integral partner in helping us achieve this objective.”

Stephen Tame, CIO, General Manager IT, Jetstar Airways

www.jetstar.com.au


http://www.jetstar.com.au


Page 40

5.4 Case Study: Intel – Server Hardware Refresh Using Energy Efficient Equipment (Technology Innovation)

Synopsis

Intel consolidated its processing workload by implementing an enterprise-wide strategy designed to accelerate the server refresh cycle, thereby increasing the server performance and energy efficiency in order to reduce cost. This enabled Intel to increase computing capacity without adding extra facilities or dramatically increasing energy consumption.

By adopting a four year refresh cycle for all design computing servers, Intel’s computing capacity increased seven-fold and utilises the same space with less power, thereby providing up to $USD 250 million in projected savings over eight years.

As a result, $USD10.4 million was saved in 2008, avoiding construction costs at four Intel locations, delivering greater energy efficiency and reducing energy consumption.

Adopting a regular hardware refresh cycle is a practical way for both large and small IT operations to increase computing capacity whilst reducing energy consumption. Additional savings can also be achieved through consolidation, though this is more suited to larger operations where high RoI can be achieved due to higher consolidation ratios.

One factor that can influence the decision for smaller organisations to consolidate servers is the capacity for the organisation to provision for future growth. While this can represent a low RoI initially, it can quickly become a favourable option when you factor in the low investment required to provision additional servers.


“With the introduction of the Intel® Xeon® processor 5500 series-based platforms, the benefits we are seeing from our IT strategy to standardise on higher-end processors for our servers purchases is even more compelling and results in a significantly lower TCO.”

Diane Bryant, Chief Information Officer, Intel Corporation

www.intel.com/au


http://www.intel.com/au


Page 41

5.5 Case Study: Connex – Carbon Management System (Business Innovation)

Synopsis

Connex’s environmental mandate to use energy and resources wisely was achieved by implementing Prima Consulting’s Sustainability Management solution – Sustainability SCO2recard. All relevant data is collected in a centralised database which enables Connex to automatically monitor and assess its carbon emissions.

The cost of carbon has been minimised at four levels:

• Reduced energy consumption bills.

• Reduced administration overheads.

• Compliance with NGER, EREP & GRI legislation.

• A reduction in the number of carbon permits that need to be purchased.

Utilising carbon management software to automate reliable, accurate reporting and financial forecasting is essential to enable organisations to understand the impacts of possible ‘what-if’ scenarios.

It also provides an invaluable resource for the benchmarking of emission reduction initiatives over time, providing tangible results that demonstrate improvements made.


“Without being certain of our baseline carbon footprint, we could only make assumptions on the benefits and savings offset initiatives were having. Now Connex can measure with accuracy and validation previously unavailable to us. The environmental and financial rewards will be felt for years to come”.

Richard Mason, Environmental Sustainability Manager, Connex

www.connexmelbourne.com.au


http://www.connexmelbourne.com.au


Page 42

5.6 Case Study: BLADE – Integrated Blade & Top of Rack Switches (Technology Innovation)

Synopsis

A major worldwide Financial Services company demanded more computing power from its existing data centre facilities to deliver higher speeds for transactions, with tighter security, whilst reducing their operational costs and carbon emissions. As a result of replacing all existing switches with BLADE’s RackSwitch G8000 1/10Gb aggregation switch units, operating costs were reduced by 80 percent over a three year period, latency was reduced 73 percent and cabling requirements were minimised through the use of consolidated infrastructure.

From a network perspective, it is important to consider the significant benefits that more efficient switching equipment can provide in speed and power usage, as well as in reduced cabling. Bringing the networking back to a rack level will have a positive impact on the overall resource usage in the data centre.

Though this type of technology is mainly suited to large IT operations, it may be relevant to those SMEs that have high processing needs and where there are opportunities to consolidate switching hardware.


“Switching and network equipment makes up a significant part of the powered equipment in a data centre. The impact of cabling also impacts the effectiveness of cooling and airflow strategies in a data centre. Taking a ‘green’ approach to designing and deploying network resources, saves money, improves performance, and reduces carbon emissions. You just need to do the maths!”

Peter Hall, Vice President & General Manager

www.bladenetwork.net


http://www.bladenetwork.net


Page 43

5.7 Case Study: DELL – Energy Management (Enterprise Solution – min 200 desktops – Technology Innovation)

Synopsis

Dell embarked on an energy efficiency program that aimed at conserving energy and cutting expenses by reducing the power used by approximately 50,000 of its computers during non-business hours.

1E’s NightWatchman® and 1E WakeUp® were deployed to the 50,000 client computers that fully integrated with Dell’s corporate Microsoft® Windows Server® and Microsoft Systems Management Server (SMS) environment.

As a result, Dell achieved a 40 percent reduction in energy costs, translating into US$1.8 million in savings per year.

The use of 1E NightWatchman® is a great example of how an organisation can effectively implement energy management practices that reduce energy consumption and operating costs.

Though cost savings are more noticeable for larger corporations, 1E NightWatchman is just as relevant to smaller organisations with as few as 200 PCs.


“These are significant cost savings that put us far out in front of regulatory benchmarks and show the rest of the industry what can be achieved. Our energy conservation efforts go beyond allowing Dell to demonstrate its commitment to the environment – they offer a real-world example that empowers our customers to duplicate our success”

Jay Taylor, Senior Engineer Global Strategist, Dell

www.dell.com.au


http://www.dell.com.au

6 The Future

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6.1 Overview of Long-term Initiatives that Create a New Agenda (Business and Technology Innovation)For organisations to take a ‘big picture’ perspective and look into the future, a vision needs to be created.

This will include defining goals, accompanied by a series of milestones that measure the progress the organisation is making.

High level milestones, which define the long-term projects, are made up of a series of short-medium-term projects and quick wins and provide the criteria against which to evaluate all possible initiatives. From the list of available options, the best path of least resistance can be defined as the roadmap outlining how the ultimate organisational vision will be achieved.

Being more complex in nature, long-term initiatives require much greater depth of planning and feasibility analysis in order to ensure that the desired outcomes can be achieved. Long-term initiatives generally start out at a high level and become more granular as the project details are confirmed.

Careful attention is given to identify potential risks, dependencies and key assumptions that will be tracked over time. As circumstances change, the feasibility of the project will be re-evaluated to confirm its relevance and approval for continued development.

Two key concepts that need to be evaluated in order to assist organisations in the creation a new agenda used to establish a long-term vision; they are the concept of a ‘Smart Planet’ and the emergence of ‘Cloud Computing’.

Both concepts enable organisations to embrace the future of a low-carbon economy and provide new business opportunities and operating models that are more productive and efficient.

SmartPlanet

The ‘Smart Planet’ concept encompasses the implementation of initiatives that lead to the replacement of existing products and services with those that are more intelligent and enable energy efficiency.

As a guide, ICT solutions will follow the GeSI SMART framework that was launched in the report ‘SMART2020: Enabling the low carbon economy in the information age’.

ICT can be a crucial factor in the overall transformation (T) to a low carbon economy – as a result of industry standards, monitoring and accounting tools (SMA), re-thinking (R) and optimising the ways in which we live and work.

CloudComputing

‘Cloud Computing’ focuses on improving the efficiency of provisioning computing power. As such, ‘Cloud Computing’ offers the ability to provide multi-tenanted applications that run on elastically scalable, location independent processing and data storage systems. These facilities are offered on a pay for service basis.

http://www-07.ibm.com/innovation/au/smarterplanet

6.2 Smart Planet (Business and Technology Innovation)The following section has been written in collaboration with IBM. IBM is aligned around a single, focused business model: innovation. IBM takes its breadth and depth of insight on issues, processes and operations across a variety of industries and invents and applies technology to help solve its clients’ most intractable business and competitive problems. Click here for more information.

DevelopingaSmartPlanet

Introduction

All the issues of a hyper-connected world have surfaced since the start of this decade – the problems of global climate change and energy inefficiency, global supply chains for food and medicine and new security concerns ranging from identity theft to terrorism.

The world continues to get ‘smaller’ and ‘flatter’. However, we see now that being connected isn’t enough. Fortunately, something else is happening that holds new potential – the planet is becoming smarter.

That is, intelligence is being infused into the way the world literally works – into the systems, processes and infrastructure that enable physical goods to be developed, manufactured, bought and sold. That allows services to be delivered. That facilitates the movement of everything from money and oil to water and electrons. And that helps billions of people work and live.

How is this possible?

Firstly, the world is becoming instrumented. Imagine, if you can, a billion transistors for every human being. In reality, we’re almost there. Sensors are being embedded everywhere: in cars, appliances, cameras, roads, pipelines… even in medicine and livestock.

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Figure 16: A vision of smarter cities. How cities can lead the way into a prosperous and sustainable future, IBM Center for Economic Development analysis

Source: IBM Centre for Economic Development analysis

Communication

Energy

Business

Transport

People

Water

Human capital determinesspeed of ICT adoption

The degree of ICT adoptionaffects the attractiveness of acity’s business environment

Industry accounts fora large proportion ofwater withdrawals

Commuting affectsquality of life

Greater commerce increaseuse of transport infrastructure

Transportation is one of the primary consumers of energy demand

Energy is the reason for asubstantial part of all water withdrawals

Water quality affects thehealth of citizens

http://www-07.ibm.com/innovation/au/smarterplanet

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Secondly, our world is becoming interconnected. Soon, there will be two billion people on the Internet – but systems and objects can now ‘speak’ to one other as well. Think of a trillion connected and intelligent things and the oceans of data that will be produced.

Thirdly, all of those instrumented and interconnected things are becoming intelligent. They are being linked to powerful new backend systems that can process all the data and turn it into real insight, in real time. Any person, any object, any process or service and any organisation – large or small – can become digitally aware, connected and smart.

With so much technology and networking available at such low cost, what wouldn’t you enhance? What wouldn’t you connect? What information wouldn’t you mine for insight? What service wouldn’t you provide a customer, a citizen, a student or a patient?

The answer is, you will do all these things, because you can. But there is another reason. We will do all these things, because we must.

Consider the following:

• According to published reports, up to 10 percent of the energy we generate on the planet never reaches a single light bulb, even in developed countries.

• In Australia, congested roadways in our cities already ‘rob’ the nation of $11.1 billion in lost time, operating expenses, environmental and social costs.

• The average basket of food has travelled the equivalent of two and a half times around the continent before it comes to rest on a supermarket shelf.

• Our healthcare system really isn’t a ‘system’. There are failures to link diagnoses, medicine delivery, healthcare providers, insurers and patients – as waiting lists lengthen and costs continue to escalate.

• One in five people living on the planet today lacks safe drinking water.

• And, of course, we continue to witness the unravelling of the global financial markets, a system in which institutions could spread, but not track, risk.

Yet all of these things are solvable on a smarter planet.

Smart systems are transforming energy grids, supply chains and water management. Smart healthcare systems can dramatically lower the cost of therapy.

Smart food systems are using RFID (Radio-frequency identification) technology to trace meat and poultry from the farm through the supply chain to store shelves.

In Australia, the city of Brisbane is implementing a smart traffic system that will increase the capacity of the roads we already have, without the need to lay more bitumen.

The time has come to embrace the idea of building a Smart Planet because the technology is both available and affordable. Current approaches are not working and have resulted in the environmental issues we have today. Starting today to build a Smart Planet is the first step towards building a sustainable future for future generations.

FutureVisionforaSmarterPlanet

Many of the everyday systems on which our way of lives depends are inefficient and unsustainable. But now, smart technologies give us the opportunity to make our transport, water and energy networks, cities and buildings digitally aware. If infrastructure is digitally aware it can sense and communicate problems, give us information to make better decisions, reduce inefficiencies – even predict and prevent failure.

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For example:

• An intelligent road system will help us to reduce traffic congestion by warning people of traffic jams and suggesting alternate routes.

• An intelligent energy system will have smart meters that help people to better manage their electricity bills.

• An intelligent water system will help to reduce water restrictions by minimising waste across the system.

• An intelligent health system will improve the speed and quality of treatment and help take the pressure off hospitals.

• Intelligent broadband communications will deliver new services, create new industries and allow more Australians to work from home or avoid work related travel.

According to new research by Access Economics, smart systems also offer the most promising path for Australia to lift its long-term economic growth potential.

Conservative estimates from a ten year plan to adopt smart technologies in electricity, irrigation, health, transport and broadband communications point to benefits such as:

• Increasing Gross Domestic Product (GDP) by 1.5 percent over ten years.

• Increasing the Net Present Value (NPV) of GDP of $35-80 billion over the first ten years.

• Creating more than 70,000 jobs in 2014 alone.

As smart technologies are integrated into everyday situations, more opportunities are opened up as we examine the overarching, societal advantages of digital infrastructure.

For example, as fibre extends to the home, it will enable telenetworking, thereby reducing the need for motor transport as communities and workplaces re-align themselves. Thus, digital infrastructure could actually reverse the separation of work and home that started in the industrial revolution, delivering environmental, health and efficiency benefits.

HowdoesthisrelatetoGreenIT?

Building a Smarter Planet is all about using our resources more intelligently to minimise waste and the release of CO2 emissions into the atmosphere. While GreenIT technology innovation is focused on initiatives that relate to operating IT infrastructure, GreenIT business innovation is focused on initiatives that relate to business operations.

Each of the initiatives highlighted above all have a contribution to make. They provide the foundation in which a future vision can be built and provide a solution to the environmental challenges we are experiencing today.

• Smarter energy grids (reduces the loss of power).

• Smarter water (reduces the loss of water).

• Smarter traffic (reduces transport issues).

• Smarter healthcare (reduces healthcare issues).

• Smarter Broadband Communications (enables smart technologies and business productivity).

Of these, the key to building a Smart Planet is the implementation of the National Broadband Network. It will open up new ways of communicating and delivering services and allow the data from smart systems to be used more effectively.

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6.3 Cloud Computing (Business and Technology Innovation)The following section has been written in collaboration with SMS Management & Technology (SMS) and the Australian Computer Society (ACS).

SMS Management & Technology (SMS) is Australia’s largest publicly listed Management Services company. SMS Management & Technology solves complex problems and transform business through Consulting, Technology and Enterprise Solutions.

The Australian Computer Society (ACS) is the recognised association for Information and Communications Technology (ICT) professionals, attracting a large and active membership from all levels of the ICT industry. A member of the Australian Council of Professions, the ACS is the public voice of the ICT profession and the guardian of professional ethics and standards in the ICT industry, with a commitment to the wider community to ensure the beneficial use of ICT.

Introduction

Moore’s Law describes the observation that the processing power of a computer double every two years, allowing the density of computing to increase and lower manufacturing costs. Other similar laws are also observed with hard disk and network capacity, offering society new solutions to old problems.

Source: http://en.wikipedia.org/wiki/Moores_Law

One of the latest industry developments is the concept of ‘Cloud Computing’, whereby data processing can be provided for multi-tenanted applications running on elastically scalable, location independent processing and data storage systems, which are offered on a pay for service basis.

Cloud Computing consists of three different components – Cloud Platforms (IaaS – Infrastructure as a Service), Cloud Applications (PaaS – Platform as a Service) and Cloud Services (SaaS – Software as a Service).

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1971 1980 1990 2000 2008Year

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http://www.smsmt.com/

http://www.acs.org.au/

http://en.wikipedia.org/wiki/Moores_Law

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Compared to its predecessors (grid computing and utility computing), Cloud Computing is much more flexible and adaptable to a wide range of business applications, offering the following characteristics that were previously not possible:

• Elastic scalability – well beyond anything achievable in house.

• The potential to leverage highly efficient large scale data centres.

• The ability to leverage new applications designed as multi-tenanted from the ground up.

• Offering OpEx approaches for both Cloud Platforms and Cloud Services – eliminating wasteful use of company capital.

• The ability to coexist with in-house data centres (private clouds), especially via cloud-bursting.

Cloud Computing offered by different vendors is hosted in large data centres that have much higher energy efficiency than is possible with a dedicated environment. They also provide organisations the ability to perform cloud bursting, where peak loads from the main processing servers are redirected to Cloud Computing providers.

Figure 19: Cloud Bursting, SMS

CloudBursting

Private Data CentresPrivate dedicated Servers

Public CloudMulti-tenanted Servers

Figure 18: Cloud Computing Components, SMS Management & Technology

Google Applications

Amazon EC2 FORCE.com Microsoft AzureGoogle Applications

Engine

Dell EMC (VMware) IBMSun

Salesforce.comCloud Services (SaaS – Software as a Service)

Cloud Applications (PaaS – Platform as a Service)

Cloud Platforms (IaaS – Infrastructure as a Service)

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BusinessDriversofCloudComputing

The changing landscape of the business environment is causing organisations to spend time evaluating different opportunities that are available with Cloud Computing. The demands are being felt across all divisions and all levels of the hierarchy.

• CFOs – want the IT Department to do more for less money!

• Business users – want their business application deployed yesterday!

• New generation users – want to use all their social networking tools at work!

In the process of evaluating whether Cloud Computing is the right technology in solving a business problem, the following enablers and roadblocks need to be understood before an informed decision can be made either way.

Figure 20: Cloud Computing Enablers and Roadblocks, SMS.

For organisations exploring Cloud Computing as a technology to embrace for future projects, the following steps will help maximise the value of the opportunity:

• Be clear on whether you are going for Cloud Platforms, Cloud Services or both.

• Determine those applications that are suitable for full migration to the cloud, are suitable for cloud bursting, or should stay as is.

• Buy, or build applications that are designed for multi-tenanted architectures.

• Divide up your data and applications into those you will trust in-house and those that can be appropriately run on public cloud infrastructure.

• Ensure privacy, security and service level agreements are aligned to business expectations;

• Ensure expectations are managed.

• Plan for Cloud Computing in the context of a Green ICT agenda and overall Strategic IT Plan – it must not be adhoc.

HowdoesthisrelatetoGreenIT?

Cloud Computing can help ICT be ‘green’. However, it requires careful planning so that we don’t simply offload processing to inefficient data centres. There are plenty of benefits to getting in-house data centres efficient through virtualisation and cloud bursting for extra capacity on-demand.

Cloud Computing is also good for collaborative working and by nature is geographically independent. Mobile platforms offer a potential avenue to leverage low power platforms for processing and distributed data storage, as well as enabling easy access to Cloud Computing.

Technical

Offline capable

High availability of systems, storage and network

n Virtualisation of processors

n Easy access to services via simple interfaces and programming languages

Regulatory

n Legislative and regulatory framework that covers all locations of the ‘cloud’ services

Privacy laws that are aligned with the storage and processing model of ‘cloud’ computing

Legend

n Building block enabler Hurdle requirement

Business

n Very low cost of scaling up and down

Assured privacy and security for data and processing

Service levels agreement to required business levels

Richness of applications to degree needed to support business

n Data and storage costs much lower than in-house

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6.4 Case Study: Handset Detection – Cloud Computing (Business Innovation)

Synopsis

Uptime is of paramount importance when providing real time device and carrier information for customising the display of web-based content on mobile devices.

Hosting the service on the cloud, using a SaaS operating model, provides the necessary high availability and assurance that sudden load spike can be handled seamlessly and gracefully as computing processing is scaled up or down to meet demand.

With Amazon Web Services (AWS), the time to provision additional computing capacity takes minutes, instead of hours or days depending upon traditional methods used.

Though migrating to AWS increased hosting costs approximately 10 percent, the benefits gained through auto scaling, load balancing and massive flexibility more than made up for the convenience offered.

Enterprise grade virtualisation has been with us for a while now and Cloud Computing is the next step in that direction. Whilst Handset Detection utilises public cloud infrastructure, SMEs can take advantage of virtual private clouds (http://aws.amazon.com/vpc/) to meet business objectives. Though it is not suited to all business applications, careful consideration will need to be given to ensure alignment with business objectives and expectations.


“AWS allows us to focus our efforts on building great software and not spending time managing infrastructure. It has reduced our time to market, massively increased our service capacity and provided a rock solid foundation for us moving forward.’’

Richard Uren, Head of Magic, Handset Detection

http://www.handsetdetection.com

http://aws.amazon.com/vpc/


http://www.handsetdetection.com

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7.1 Philosophical Considerations with Embracing GreenIT The following section has been written in collaboration with ECO-Buy. ECO-Buy is an award winning not-for-profit Centre of Excellence in Environmental Purchasing which was established to encourage the purchasing of environmentally preferable products and services.

ECO-Buy works with public and private sector organisations to embed sustainable purchasing practices and acknowledges that change happens through people and that in order to facilitate change, people need good information and tools as well as support and encouragement.

Introduction

Keeping in mind the big picture and the concept of sustainability, developing ‘green’ business operations is all about Sustainable Consumption and Production.

A more detailed overview of this is given below, where additional focus has been given on both Product Stewardship and Sustainable Supply Chain that are the key enablers in helping business reduce their environmental impact.

The AIIA has worked in collaboration with Sustainability Victoria and Multimedia Victoria on this issue over the course of several years, with the aim being to influence changes in procurement by the State Government. The recent changes that have been introduced into the tendering process of IT products and services are partly a result of this work.

7.2 Sustainable Consumption and Production The Sustainable Consumption and Production (SCP) framework below shows how each key element works together to reduce an organisation’s GHG emissions. The three main focus areas are cleaner production, greening the supply chain and green purchasing.

The Victorian Commissioner for Environmental Sustainability puts the case for SCP as follows:

“The natural environment underpins our economic and social systems – we need clean air to breath, water to drink and natural resources to use in our daily lives. We rely on a healthy environment to provide us with resources.

Our demand for resources needs to match the ability of our ecosystems to produce the things we need. Otherwise, we eat into our ‘natural capital’ of resources, leaving less available for our children and future generations.”

The drive for SCP comes from the growing awareness that organisations need to embrace product stewardship across the lifecycle of their operations, including the impacts from both upstream suppliers and downstream customers.

Figure 21: Sustainable Consumption and Production, Eco-Buy

Cleanerproduction

• Reduced resource extraction

and usage

• Reduce energy consumption

• EMS

• Greener components

and packaging

• Green design

• Recyclable products

• Energy efficient products

• Reduced wastes

• Reduced consumption

Greenpurchasing

Greeningsupplychain

Greeningsupplychain

Sustainableconsumption

and production

ReducedGHG

emissions

http://www.ecobuy.org.au/

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Consumer sentiment for green products and services is also growing and in doing so, is shifting loyalty towards businesses that show a commitment towards doing the right thing for the environment.

Research by the Mobium Group shows that the consumer market for natural, healthy and sustainable products and services in Australia has grown over 25 percent to $15Bn in 2008 and is expected to reach at least $22Bn by 20108.

The Living LOHAS 2 report also notes that whilst the majority of Australian consumers want business to improve their environmental performance, that 88 percent treat ‘green’ claims with scepticism and distrust.

7.3 Product Stewardship Product stewardship considerations usually start with the manufacturer, however stewardship can also be taken on by others throughout the product’s lifecycle. This shared responsibility between all stakeholders within the supply chain is important in maximising environmental outcomes.

So, while the manufacturer might be seeking to:

• Minimise the consumption of materials, energy and water

• Avoid using toxic or hazardous materials and production processes

• Recycle materials continuously through industrial or natural systems to avoid waste

• Keep product environmental information accurate and verifiable

A company employee might be seeking to:

• Procure greener products from environmentally conscious manufacturers

• Optimise equipment operation.

• Extend lifespan of equipment

• Remarket end-of-life equipment

• Recycle responsibly

• Report transparently

ProcuringGreenerProducts

Consider the energy efficiency and resources consumed when purchasing both computer and peripheral equipment. The Electronic Product Environment Assessment Tool (EPEAT) is a ranking system that assists public and private organisations to evaluate, compare and select computing systems based on 51 specific criteria through the IEEE 1680 Standard.

Many of the larger IT manufacturers are currently working with AIIA to push the case for Australian Governments to adopt the EPEAT framework into Federal and State whole-of-government ICT procurement strategy.

In the United States, EPEAT is a mandatory requirement for Federal departments to examine when purchasing new IT products and successfully co-exists with product energy efficiency programs such as ENERGY STAR.

8. Mobium Group, October 2008, Report Summary: Living LOHAS 2, Lifestyles of health and sustainability Australia, page. 3

http://www.epeat.net/

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Aside from EPEAT, there are other guides now available to assist with green product procurement. Most of the IT equipment manufacturers provide information on their website to make informed choices – some even calculating the energy efficiency savings of a particular product model. Of course, procuring greener products isn’t just about IT hardware – there are plenty of considerations to be made about paper, printing ink, etc.

Optimiseequipmentoperation

Standby power accounts for a significant portion of electricity consumption, in some cases accounting for 25 percent of total energy consumption. To maximise the energy efficiency of your computing systems it is important to enable energy saving modes (ENERGY STAR) and minimise all standby power where possible. This may require updates to computer configurations and training staff on how to activate equipment after it has automatically powered down.

In addition, the deployment of mobile computing devices can significantly improve power consumption when compared with traditional desktop models.

Extendlifespanofequipment

It is now possible to extend the lifespan of IT equipment up to 6-7 years by using new thin client technology, thereby greatly improving the RoI. However, this does require a shift in the mindset of users. Thin client computing is not suitable for everyone within an organisation, especially those that require high-end performance, but it can be successfully deployed to the majority of users within an organisation that require basic word-processing and online capability.

When embarking on thin client technology, it’s important to also consider the lifecycle and efficiency of back-end server equipment.

Gains made on the client side can quickly be lost if servers are not optimised by virtualisation, upgraded to energy efficient hardware and load balanced. Advancing technologies will see existing computing networks migrate from distributed to centralised systems as servers deliver greater graphics processing power and enhanced software management capabilities.

Remarketend-of-lifeequipment

Utilising the services of an Authorised Computer Refurbisher (ACR) helps corporations make surplus computer equipment available for alternative reuse options. This includes:

• Certified testing, value-appropriate repair and refurbishment services that guarantee quality and prolong the useable life of technology.

• Asset recovery services to give your equipment an extended life with a new owner and recovers remaining dollar value for your organisation.

• End-of-life Stewardship, which is a service that provides a guarantee that equipment will be collected and recycled when it is of no further use, regardless of the final user of the equipment. This service is particularly useful when donating goods to charity, as it ensures that the donation of equipment does not become a financial burden on the charity when it is no longer functioning.

• Recycling services that ensure computers of no further use don’t end up in a landfill at end-of-life.

• Reporting that demonstrates the social, financial and environmental benefits of donated technology.

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RecycleResponsibly

Establish a zero eWaste to landfill policy where all IT equipment is disposed of using certified IT Asset Disposal organisations. This includes:

• Equipment de-manufacturing to ensure all reusable parts and raw materials are safely harvested.

• Downstream verification to ensure that assets are disposed in compliance with policies, customer requirements and legal obligations.

This also covers other peripheral IT equipment such as mobile phones and printer cartridges.

Victoria currently has a free IT equipment recycling program for SMEs and households called ‘Byteback’.

Up to 10 items can be taken to one of the many city-based sites and disposed of free of charge. Organisations that have a larger IT set-up can access information on alternative recycling options via www.Bytebackaustraia.com.au

Nationalproductstewardshipprograms

In Australia, national product stewardship programs are in place for products such as:

• Mobile phones

• Lubricant oils

• Agricultural chemical containers

• Consumer packaging

SustainabilityVictoria’sproductstewardshipprograms

Sustainability Victoria is currently working in partnership with a range of organisations – across all areas of the product lifecycle – on such programs as:

• Byteback

• Design for Sustainability

• Detox Your Home

• ECO-Buy

• Batteryback

http://www.bytebackaustralia.com.au/

www.mobilemuster.com.au

www.oilrecycling.gov.au

www.drummuster.com.au

www.environment.gov.au/settlements/waste

www.bytebackaustralia.com.au

http://www.resourcesmart.vic.gov.au/for_businesses/3526_2232.html

http://www.resourcesmart.vic.gov.au/for_households/dropoff_points_2826.html

www.ecobuy.org.au

www.resourcesmart.vic.gov.au/for_households_3797.html

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7.3.1 Case Study: Sustainability Victoria – Byteback Australia (Business Innovation)

Synopsis

Sustainability Victoria launched the Byteback program with the aim of developing a product steward scheme with the IT industry for end-of-life computer equipment. Byteback is being run in conjunction with the Australian Information Industry Association (AIIA) and industry partners Apple, Brother, Canon, Dell, Epson, Fujitsu, Fuji-Xerox, HP, IBM, Lenovo, Lexmark, Officeworks and several local councils in Victoria.

After collection, the computer equipment (eWaste) is transported to a specialised electronic recycling and recovery centres. Equipment is disassembled into separate material streams (plastic, precious metals, batteries, cathode ray tubes, printed circuit boards and insulated wiring) and sent off to various locations around Australia and the world for recovery and recycling. This process ensures that valuable materials and toxic chemicals are kept out of landfill and cannot have a negative impact on the environment.

In over four years, the Byteback program has:

• Collected over 2,000 tonnes of computers and related equipment – this is equivalent to 450 truck-loads or three and a half Olympic swimming pools (full to the brim).

• Established eight permanent collection sites across Victoria.

• Run regional collection events.

Some 97 percent of the waste collected has been recycled, leading to the abatement of 11,500 tonnes of carbon. Importantly, the Byteback initiative has also helped capture critical data that will inform the development of a national regulatory framework.


“The Byteback program creates an economic opportunity to grow the recovery and recycling sectors, as well as diverting valuable resources from going to landfill.”

Jan Trewhella, Acting CEO, Sustainability Victoria

www.sustainability.vic.gov.au

www.bytebackaustralia.com.au


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7.4 Sustainable Supply ChainSustainable supply chain management is the discipline of balancing cost, customer service and environmental sustainability to achieve a high-performance, low cost and low environmental impact supply chain.

Its premise is that when making a procurement decisions, green procurement principles should be given a weighting. This weighting will not only provide immediate benefits, but also longer term benefits, given that suppliers will need to show they are moving toward sustainability in order to retain business.

These benefits include:

• Increased shareholder returns.

• Protection and enhancement of a company’s brand reputation.

• Risk minimisation.

• Market appeal that drives premium pricing.

• Opportunity for first mover advantage and competitive advantage.

• Increased efficiency and cost reduction.

• Compliance with regulatory legislation – both now and in the future.

Sustainable supply chains are established by providing businesses with a framework that supports more informed decision making and demands greater transparency when reporting key performance indicators.

Underlying this is the absolute importance of early, ongoing engagement with customers, suppliers and staff. To maximise the benefits of moving to a more sustainable supply chain there is also a strong need for all the parties involved to be able to capture a share of these benefits.

Sustainable supply chain management consists of understanding the value chain, recognising how the customer requirements relate back to the sourced products and focusing on the following three key driving forces – each of which need to be evaluated on an individual business basis:

1. Product stewardship (identify the opportunities).

2. Smarter procurement (make it happen).

3. Product differentiation (capitalise on the benefits).

Figure 22: Value Chain vs Supply Chain Overview

Strategiccomponents

Golbalassembly

Finishedgoods

Satisfiedconsumer

Product Consumerrequirements

ConsumerProductrequirements

Value chain

Supply chain

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7.4.1 Product Stewardship (Identify the Opportunities)When done effectively, Product Stewardship drives value-add processes throughout the supply chain by focusing on identifying the environmental impacts associated with the behaviours of suppliers, business operations and customers.

It first requires time to understand the impacts of different procurement options available. Secondly, it needs to explore where negotiations can be made in order to improve policies, processes and principles embedded within existing business operations.

Opportunities can then be prioritised by evaluating them using models such as the Waste Management Hierarchy – where avoidance is the most preferred option and disposal the least.

7.4.2 Smarter Procurement (Making it Happen)Procurement is strongly aligned with business objectives and relies heavily on accurate planning processes to minimise waste. It impacts every business process and provides businesses with a framework to implement policies, processes and the principles required to drive cost reduction initiatives.

Figure 23: Waste Hierarchy

Disposal

Avoidance

Reuse

Recycling

Recovery of energy

Treatment

Containment

Mostpreferable

Leastpreferable

Figure 24: Procurement Cycle, ECO-Buy.

Source: Procurement Cycle, ECO-Buy

1. Identify need and asses risks

2. Evaluate and select suppliers

3. Define the specification and

invite bids

4. Evaluate bids fromsuppliers and award

6. Manage the contract & disposal

5. Audit and improvesupplier

Research green options.Incorporate green specifications

Procurement Process

Good procurement is

sustainable procurementSelect suppliers with

green credentials

Develop and use green evaluation criteria

Incorporate contractual provisionsspecifying green requirements

Specify green requirements foservice delivery and product disposal/recovery/recycling

http://www.epa.vic.gov.au/waste

http://www.epa.vic.gov.au/waste

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Smarter procurement takes this one step further by introducing additional metrics to the decision making process which support initiatives to ‘green’ the supply chain.

The key criteria used when making procurement and supply chain decisions include price, quality, fit for purpose and availability/continuity of supply. Smarter and more sustainable procurement is about including environmental and social criteria in the decision making process.

Smarter procurement forces greater transparency between suppliers, business operations and customers, which results in product innovation, behavioural change and ultimately waste reduction.

Smarter and more sustainable procurement is part of the solution to the problem of how to save both the planet and your profits at the same time.

Given that all products and services have an impact and therefore there is no such thing as a perfectly sustainable product or service, smarter and more sustainable procurement can be seen as:

1. Identifying and buying products and services that are less damaging to the environment and human health than those you are currently purchasing.

2. Reviewing and improving your purchasing processes to drive better financial and environmental and sustainability outcomes.

The key tools available that support smart procurement activities include:

• Benchmarking programs.

• Assessment and prioritisation programs.

• Education and engagement programs (staff and suppliers).

• Certification programs.

• Accreditation programs.

• Industry standards.

• Disclosure of environmental performance reporting.

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7.4.3 Product Differentiation (Capitalise on the Benefits)The end results of implementing green supply chain initiatives include product differentiation and the reduction of costs in the supply chain; so even if you are selling a commodity, or you share elements of your supply chain with competitors (making differentiation a little more difficult), greening your supply chain is a very valuable exercise. It also provides businesses with the opportunity to provide additional val ue to customers by creating new and innovative products, building stronger and deeper relationships with existing customers and suppliers and gaining competitive advantage in the marketplace.

An important part of capitalising on the benefits of product differentiation is to provide transparent reporting that provides clear evidence of the ‘green’ claims you are making.

New performance metrics need to be introduced into management reporting and should be independently audited against standardised methods so that they can be benchmarked with other organisations.

Metrics that can be used for benchmarking purposes include:

• Percentage of suppliers signing company charter.

• Number of suppliers evaluated/audited.

• Percentage of spend with ‘sustainable’ suppliers (e.g., are suppliers members of the ‘Global Compact’ charter or accredited with EMS in place).

• CO2 emissions (ie CO2 emissions of your suppliers).

• Percentage of contracts including sustainable development or environmental clauses.

• Number of buyers trained (or training hours) on sustainable procurement concepts and best practices.

7.4.4 Green Supply Chain Myth – Green Products/Services Always Cost More

It is a common misconception that green products and services always cost more. This may appear to be the case in the short-term, but when you examine the overall life cycle costing (LCC), you will realise that this is not true.

Figure 25: Life Cycle Costing, ECO Buy.

Standardproduct

Cost

WasteWaste

UseUse

Price Price

Greenproduct

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LCC = initial cost plus all other costs including:

• Installation and training

• Lease / contract-out charges

• Internal staff expenses

• Insurance costs

• Energy costs

• Waste disposal

• Maintenance

• Disposal

It is often the case that some of these factors are ignored or are not considered relevant in the overall costing of a product or service.

There are many greener alternatives that cost the same or less, from toner cartridges and recycled content construction materials, to office stationery. If the initial purchase price is higher, using a value for money/total cost of ownership perspective will often highlight the medium to longer term cost savings.

So yes – greener alternatives can cost more initially, but understanding and using life cycle thinking and costing will highlight the true cost of a product or service.

7.4.5 Sustainable Supply Chain ResourcesThe following resources have been provided as a guide to assist organisations with developing a sustainable supply chain. Not all of these resources will be relevant to your organisation and will need to take into consideration your current circumstances and future goals of your organisation.

GreenSupplyChainAnalysisTools

The following IBM and HP examples provide an overview of how the Green Supply Chain is taking shape in the IT industry.

IBM Carbon Management Analysis Tool to Optimise Supply Chain Efficiencies

HP Supply Chain Responsibility

http://www-03.ibm.com/press/us/en/pressrelease/24296.wss

http://www.hp.com/hpinfo/globalcitizenship/gcreport/supplychain.html

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RegulatoryPrograms

There is both a federal and state regulatory program currently in place that makes it mandatory for large organisations to improve energy efficiencies. These are the Energy Efficiency Opportunities (EEO) and the Environment and Resource Efficiency Plans (EREP).

Table 8: Federal and State Government Environmental Regulatory Programs

RegulatoryProgram Description

Energy Efficiency Opportunities (EEO)

Federal Government program run by the Department of Resources, Energy and Tourism.

The Energy Efficiency Opportunities program encourages large energy-using businesses to improve their energy efficiency. It does this by requiring businesses to identify, evaluate and report publicly on cost effective energy savings opportunities.

Participation in Energy Efficiency Opportunities is mandatory for corporations that use more than 0.5 petajoules (PJ) of energy per year. This is approximately equivalent to the energy used by 10,000 households. There are more than 220 corporations (incorporating around 1200 subsidiaries) registered for the Energy Efficiency Opportunities program.

Environment and Resource Efficiency Plans (EREP)

State program run by EPA Victoria.

Commercial and industrial sites in Victoria that use more than 100 TJ of energy and/or 120 ML of water per year need to participate in EREP. Participating businesses need to register with EPA and prepare and implement a plan that identifies actions to reduce energy and water use and waste generation.

Importantly, businesses must then implement those actions that pay for themselves within three years.

IndustryOrganisations/AccreditationPrograms

A list of well known industry organisations and accreditation programs that provide new metrics to support procurement and key decision making processes can be found in Appendix 9: Industry Organisations/Accreditation Programs.

CalculatorsandBenchmarkingTools

A list of useful calculators and benchmarking tools that can provide new metrics to support procurement key decision making processes can be found in Appendix 8: Calculators and Toolkits

Additionally, Appendix 17: Sustainability Performance Indicators can assist you in identifying who are the best performing organisations in relation to sustainability.

http://www.ret.gov.au/energy/efficiency/eeo/Pages/default.aspx

http://www.ret.gov.au/energy/efficiency/eeo/Pages/default.aspx

http://www.epa.vic.gov.au/bus/erep/default.asp



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7.4.6 Snapshot: Wal-Mart – Sustainable Product Index (Business Innovation)On 16 July 2009, Wal-Mart announced plans to develop a worldwide sustainable product index during a meeting with 1,500 of its suppliers, associates and sustainability leaders at its home office – signalling the start of this organisation’s journey towards developing a sustainable supply chain. Wal-Mart’s index will establish a single source of data for evaluating the sustainability of products and is being developed to translate product information into a simple rating for consumers about the sustainability of products. According to Wal-Mart, this will provide customers with a transparent view of the quality and history of products that they don’t have today.

From an SME perspective, it’s important to be aware of the changes that are happening in the larger organisations with which you are associated. For instance, if you are currently not required to report on any environmental metrics, it will be only a matter of time before you are. Those organisations that leave implementing environmental initiatives to the last minute will lose out to the organisations that have already made significant inroads in this area. A number of simple quick and easy initiatives have are discussed in the GreenIT eBook which organisations can implement today and provide immediate cost savings tomorrow – not doing so will only be to your organisation’s detriment.


7.4.7 Snapshot: State Government of Victoria – Environmental Selection Criteria for Multi-function Devices (Business Innovation)Today, Governments are coming on board for the plight to ‘be green’ by introducing new regulations and policies that provide industry with financial signs and mechanisms to encourage the greening of the supply chain. The following is an example of how the Victorian Government specified environmental requirements for Multi-Function Devices (MFDs) in a recent tender document.

The Contractor(s) must provide MFDs that:

a. Are Energy Star compliant, with Energy Star capabilities enabled.

b. Have low overall energy consumption in operation as well as standby and sleep modes.

c. Can have all components switched off by the user so that no standby power is being consumed.

d. Have document storage capacity (including the ability to code and store print jobs).

e. Have duplex and page shrinkage (at least two pages to a page) printing and copying capabilities.

f. Are able to use paper with recycled content.

“The index will bring about a more transparent supply chain, drive product innovation and, ultimately, provide consumers the information they need to assess the sustainability of products. If we work together, we can create a new retail standard for the 21st century.”

Mike Duke, President and Chief Executive Officer, Wal-Mart Stores, Inc. Walmart Sustainability Milestone Meeting, July 16, 2009)

Click here to find out more


http://walmartstores.com/FactsNews/NewsRoom/9277.aspx

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g. Are able to use paper which has previously been printed on one side.

h. Are able to use remanufactured toner cartridges, including third party remanufactured toner cartridges meeting required standards, with no effect on service agreements or warranties.

i. Have low operating noise levels.

The following features are highly desirable:

a. Units containing a percentage of recycled materials, and/or materials which can be recovered, remanufactured or recycled at the end of the unit’s useful life. Contractor(s) are encouraged to provide innovative proposals for the disposal of equipment complying with environmental standards.

b. Packaging should be recyclable or compostable, and should preferably include recycled content. Packaging take-back programs are encouraged.

c. The Victorian Government wishes to eliminate unnecessary packaging associated with MFDs. Preference may be given to an arrangement where, within the first 12 months of the contract, packaging reuse and reduction options, whilst still offering adequate protection to products, will be developed.

d. Details of strategies and policies that manufacturers and/or suppliers have developed or are in the process of developing in the area of extended producer responsibility.

With the commencement of a national eWaste collection and recycling scheme, Governments should seek to provide preference for companies that engage in community programs. While not specifically stated within this RFT, it could be implied that the last ‘highly desirable’ feature would place a Byteback participant in a more favourable position.

Support by Governments for implementing procurement preferences for brands undertaking environmental and social activities for the broader community have gone largely unnoticed – Byteback being a prime example. This demonstrates the failings of a voluntary eWaste program and the reasons why industry through AIIA is pushing for a mandated participation program with a legislative underpinning.

7.4.8 Case Study: State Government of Victoria – Environmental Selection Criteria for Desktops and Laptops (Business Innovation)

Synopsis

Industry has consistently approached and lobbied the State Government to change its approach towards RFTs for IT equipment on a number of levels. AIIA - with the support of Sustainability Victoria and Multimedia Victoria – suggested to State Government that specific causes on key environmental considerations were included in RFTs. The GSG moved to develop a green purchasing program which focused on incorporating environmental considerations into WoVG procurement documentation.

ECO-Buy assisted the GSG with the development of the green purchasing program, initially targeted for the upcoming Desktop and Notebook Computer Equipment State Purchasing Contract. The aim was to provide environmental specifications for achieving significant environmental benefits associated with procurement activities.

Tender applicants were required to demonstrate their environmental responsibility by providing details about their environmental policy and environmental management system, and to advise on progress if one or both of these initiatives had not been implemented or adopted at the time the tender was released. A response against the Electronic Product Environmental Assessment Tool (EPEAT) criteria was also required to evaluate, compare and select desktop computers, notebooks and monitors based on their environmental attributes.

This is a very effective approach for developing a sustainable supply chain that is suitable for all organisations. It takes a high level view, leveraging well established industry benchmarking programs, which provides an independent evaluation of each supplier’s environmental performance. Over time, this criterion will develop and expand to include new measures, such as Carbon Emissions and will influence smaller organisations to think and act more sustainably, even though the criterion may not be directly relevant to them.

www.dtf.vic.gov.au


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www.dtf.vic.gov.au


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8 Closing Remarks

Acknowledgments

Josh Millen

Over the past five years AIIA has sought to take a leadership role in the GreenIT and sustainability space. Our work with the Federal and State Governments on developing a national IT equipment collection and recycling program for the community has been a significant effort and well supported by major hardware manufacturers through the Byteback program and our Environment Special Interest Group.

Several years ago I approached Multimedia Victoria with the concept of developing a GreenIT program for the Victorian Business Community demonstrating how IT can play an essential role assisting and transforming businesses into the new low carbon economy. It was an area in with which both industry and government felt there was potential for new business opportunities for the ICT industry in both domestic and export arenas.

I appreciate that the Victorian Government was able to share this vision and this publication is a result of one such project from that program coming to fruition. Our Sustainable Futures Forums and GreenIT events have been very popular and those ideas have now gained momentum in other States.

I’d like to extend a special thank you to Scott Evans, the principal editor and case study coordinator, who has worked tirelessly to ensure that the detail within this publication is current and highly relevant.

Active contributors such as Alison O’Flynn from Fujitsu, Sean Casey from Intel and Bob Hayward from CSC have provided significant input and support throughout the drafting stages and their passion for GreenIT and support for the Association’s endeavours in this space continue to inspire many people. AIIA’s Victorian GreenIT Taskforce under the leadership of Steve Avery has been exemplary with sound support for AIIA’s Victorian Committee.

The GreenIT movement has matured in Australia and while there are now, more than ever, increasing business drivers and imperatives for considering GreenIT and ‘green business practices’, I think we all should not lose sight of the real necessity for GreenIT and sustainability in general – the health of our natural environment. Our greatest asset is the planet and environmental considerations are not, at least in my mind, something that we should be seeking to negotiate a path of least resistance on.

AIIA is actively involved with its members and Governments around the country on many areas that are discussed within this book. So I am pleased that this book highlights the talent and experiences of our country’s GreenIT sector and by doing so, demonstrates in real terms how applicable and important GreenIT is for SMEs and busy professionals in other industry sectors.

My hope is that this publication will be the start of future editions and will, over time, be more interactive, include additional case studies, provide links to those companies blazing a trail in t his space and provide other chapters on significant new trends and achievements.

Thank you for your support of AIIA, our green program, and our industry’s talented individuals who can help your organisations prepare and transform into lean, green and leading enterprises.

Josh Millen, Manager, Corporate Social Responsibility and Sustainability Australian Information Industry Association

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Scott Evans

I firstly want to recognise the contributions that all of the organisations have made towards the eBook and say thank you to all those referenced throughout. Without you, the number, variety and specifics of each case study would have not otherwise been possible.

It is exciting to see how much the local IT industry has embraced the adoption of GreenIT practices into their organisations.New products and services are being developed, creating new opportunities that would previously not have been available.

Educational programs are starting to surface that focus specifically on GreenIT, assisting with sharing the knowledge and educating others in the benefits of GreenIT. For example, the Box Hill Institute of TAFE launched a Vocational Graduate Certificate in ICT Sustainability in 2009.

The IT industry itself is defining new areas of competencies designed to drive the ongoing evolution of GreenIT that will influence the types of courses educational faculties provide in the future. One area in particular will be in the design of efficient data centres.

This is a quickly evolving topic which has grown in the last few years and will continue to evolve over the next few years, especially as the need to drive additional energy efficiencies will come from optimising organisations data centres.

From the outside looking in, the maturing of the GreenIT industry is also resulting in the emergence of a number of new green jobs across the Australian economic landscape.

Organisations are starting to develop cross-departmental roles to manage the implementation of GreenIT initiatives, due largely to the transformational nature of such projects and the requirement to co-ordinate a number of different stakeholders in order to ensure successful outcomes.

These roles tend to be highly specialised, requiring both a high level of technical knowledge of both IT and the environment. However, the roles also need to be balanced with strong leadership skills which will be required to influence organisational stakeholders for successful change management.

Organisational leaders will emerge to help different organisational departments come together and work towards the common goal of greening the organisation.

Looking into the long-term future, GreenIT will be pivotal in enabling organisations to reduce carbon emissions through both technology and business innovation. There are many big innovations currently in progress that will have a dramatic impact on the Australian ICT industry in the future, such as NBN, Cloud Computing, Smart Planet and mobile computing, to name just a few.

Unfortunately, these technologies by themselves are not sufficient. They also require organisations to understand both the business drivers and the transformational change required for successful implementation.

Governments around the world are starting to develop business tools that impose a carbon tax to assist with this, but this alone is not enough. ‘This does not assist business in making the connection with technology innovation, nor does it help businesses to understand the nature and impact of the rapidly changing business driving forces.

My goal is that this publication will help you address these issues so that more GreenIT initiatives can be adopted within your organisation.

Throughout the journey of writing this eBook, I am heartened to see so many organisations making significant efforts towards greening their operations and reaping a financial benefit at the same time. It is hoped that more organisations can follow suit and look forward to hearing of your story on how adopting GreenIT into your organisation has been financially beneficial.

Scott Evans, Editor of the AIIA ‘Greening Your Business Through Technology’ eBook

www.scottbottini.com

http://www.bhtafe.edu.au/Courses/GCIS1.htm

www.scottbottini.com

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Term Description

AIIA Australian Information Industry Association

ACCC Australian Competition and Consumer Commission

ACR Authorised Computer Refurbisher

Aneometer A device that is used for measuring wind speed

AV Audio Visual

BAN Basel Action Network

BAU Business As Usual

Blog An online website used to record regular entries of commentary, descriptions of events, or other material such as graphics or video

BPO Business Process Outsourcing

Byteback (Australia) A free computer take-back program to help people dispose of end-of-life equipment, or equipment that has reached the end of its useful life responsibly.

B2B Business to Business

CapEx Capital Expenditure

CEO Chief Executive Officer

CIO Chief Information Officer

Cloud Computing A style of computing in which dynamically scalable and often virtualised resources are provided as a service over the Internet.

CO2 Greenhouse gases

CO2 emissionsGHG emissions Greenhouse gas emissions

CO2 calculation Calculation of the GHG (greenhouse gas) emissionsCO2 footprint ‘the total set of GHG (greenhouse gas) emissions caused directly and

indirectly by an individual, organisation, event or product’ (UK Carbon Trust 2008

CPRS Carbon Pollution Reduction Scheme

CSR Corporate Social Responsibility

C2B Customer to Business

DR/BCP Disaster Recovery / Business Continuity Plan

eBook Electronic Book (soft copy in the form of a pdf)

EBIDA Earnings Before Interest, Depreciation And Amortisation

EDI Electronic Data Interface

EEO Energy Efficiency Opportunities

EITE Emission-intensive trade-exposed

eLearning Technology supported education/learning (TSL) where the medium of instruction is through computer technology, particularly involving digital technologies.

eMeters Electronic Meter Reading

EMS Environmental Management System

EPA Environment Protection Agency

EPEAT Electronic Product Environmental Assessment Tool

http://www.bytebackaustralia.com.au/

http://en.wikipedia.org/wiki/Cloud_computing

http://en.wikipedia.org/wiki/ELearning

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EREP Environmental and resource efficiency plan

eService Services available online via the internet (C2B, B2B, EDI, SaaS etc)

ETS Emissions Trading Scheme

eWaste surplus, obsolete, broken, or discarded electrical or electronic devices

GDP Gross Domestic Product

Gershon report An independent review of the Australian Government’s use of information and communication technology (ICT)

GeSI The Global e-Sustainability Initiative

GHG Protocol The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.

Greenfield A project that lacks any constraints imposed by prior implementations

GRI Global Reporting Initiative

GSG Government Services Group

HDD Hard Disk Drive

IaaS infrastructure as a service

ICT Information, Communication and Technology

IEEE Institute of Electrical and Electronics Engineers

IP Intellectual Property

KPI Key Performance Indicator

Kyoto Protocol A protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC).

LCA Life Cycle Analysis

LCC Life Cycle Costing

LCD Liquid Crystal Display

LEED Leadership in Environmental and Energy Design (US)

LMN Large Multi-National Organisation

LOHAS Lifestyles of Health and Sustainability

MFD Multi-Function Devices

MMV Multimedia Victoria

NBN National Broadband Network

NGERS National Greenhouse and Energy Reporting System

NPV Net Present Value

OpEx Operational Expenditure

PaaS Platform as a Service

PCs Personal Computers

PUE Power Usage Effectiveness – a metric used to determine the energy efficiency of a data centre.

RFQ Request for Quotation

RFID Radio frequency identification

RFT Request for Tender

http://en.wikipedia.org/wiki/EWaste

http://www.ghgprotocol.org/

http://en.wikipedia.org/wiki/Kyoto_Protocol

9 Glossary

Page 70

RoHS Restriction of Hazardous Substances Directive (Europe)

RoI Return on Investment

SaaS Software as a Service

SAN Storage Area Network

SATA Serial ATA

SCP Sustainable Consumption and Production

SMART Goals Simple, Measurable, Achievable, Realistic, Timely Goals

SMART Planet The implementation of initiatives that lead to the replacement of existing products and services with those that are more intelligent and enable energy efficiency

SME Small to Medium Enterprise

TCO Total Cost of Ownership

Teleworking Telecommuting, e-commuting, e-work, telework, working at home (WAH), or working from home (WFH) is a work arrangement in which employees enjoy flexibility in working location and hours.

VOIP Voice Over Internet Protocol

VPN Virtual Private Network

WEEE Waste Electrical and Electronic Equipment Directive (Europe and Canada)

Wikis A collection of Web pages designed to enable anyone with access to contribute or modify content, using a simplified markup language.

WoVG Whole of Victorian Government

Document design and creation by Big Mouth – www.bigmouth.net.au

http://en.wikipedia.org/wiki/Teleworking

http://en.wikipedia.org/wiki/Wikis

www.bigmouth.net.au

Page 71

You can download a full version of the appendices by clicking here

Appendix 1: GreenIT Success Factors

Appendix 2: GreenIT Best Practices

Appendix 3: Hazardous Materials in IT Equipment

Appendix 4: Data Centre Optimisation

Appendix 5: Carbon Management Software

Appendix 6: Power Management Software

Appendix 7: Print Management Software

Appendix 8: Calculators & Toolkits

Appendix 9: Industry Organisations and Accreditation Programs

Appendix 10: Vendor Green Portals

Appendix 11: Local Green Directories

Appendix 12: Local Green Research

Appendix 13: GreenIT News

Appendix 14: Local GreenIT Forms

Appendix 15: Local GreenIT Training and Certification Programs

Appendix 16: Further Reading on GreenIT

Appendix 17: Sustainability Performance Indicators

Appendix 18: AIIA GreenIT Quick Reference Guide – Featured Organisations

Appendix 19: List of eBook References

You can download a full version of the appendices by clicking here

10 Appendices

http://www.aiia.com.au/docs/AIIA%20and%20the%20ICT%20Industry/Green%20IT%20eBook/AIIA_GreenIT_eBook_Appendices.pdf

http://www.aiia.com.au/docs/AIIA%20and%20the%20ICT%20Industry/Green%20IT%20eBook/AIIA_GreenIT_eBook_Appendices.pdf

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