Understanding Environmental Compliance, Policy, and Regulation for IT Leaders (Taking Green to the Next Level)

Joan KrajewskiSenior DirectorCompliance and SustainabilityMicrosoft CorporationARC313

Lewis CurtisPlatform Arch TeamPrincipal Architect Microsoft Corporation

Promoting Green is Popular

But what happens when they get serious?

Microsoft Confidential

What are the important pieces?

We are good at doing this…

And this.

WAN

WAN

WAN

ATM Network

001-NAME3-S

Current Allstate DNS Structure

Eth

ern

et

116-SWDC1-D 116-SWDC2-D

116-AGTNS1-D 116-AGTNS2-D

Eth

ern

et

136-ADC1-D 136-ADC2-D

136-AGTNS1-D 136-AGTNS2-D

Eth

ern

et

185-GCDC1-D 185-GCDC2-D

185-AGTNS1-D 185-AGTNS2-D

001-HODC1-D 001-HODC2-D

WAN

Caching only DNSFor Large Offices

Caching only DNSFor Large Offices

Caching only DNSFor Large Offices

Caching only DNSFor Large Offices

Northbrook

Hudson Charlotte

Dallas

Ethernet

And this…

Microsoft ConfidentialBefore jumping in

What is the first rule of any IT Architecture?

Understand their Problem Domain

Microsoft Confidential

Environmental Compliance

Microsoft Confidential

Their world is tough

Microsoft Confidential

When things go bad…

MVP Architects to be trusted member of the Environmental Compliance Community

Focus: Environmental Compliance for IT Architects

Focus: Environmental Compliance for IT Architects

How does an Architect understand the problem space of Environmental Compliance and Sustainability?

What is Microsoft doing in Environmental Compliance and Sustainability?

What are the trends in Environmental Compliance?

Academic Lectures don’t work

Get the most credible resource we could find

Microsoft Confidential

Environmental Mgt

Systems

• Corporate Policy Driven• ISO 14001• Management of

Significant Environmental Impacts

Sustainability Accounting

• Metric Driven• Carbon Disclosure Project• ISO 14064• Product Life Cycle

Analysis

Compliance

• Legal Liability Driven• Regulatory Compliance• Auditing/Monitoring

3 Concurrent Business Models

Environmental Principles

Environmental Aspects

Significant Aspects

Management Programs

Management Review

Legal & Other Requirements

Objectives & Targets

CommunicationDocumentation

Document ControlRecords

Nonconformance

EMSAudits

Structure/TrainingEmergenciesOperational Controls

MonitoringMeasurement

ISO 14001 Environ Mgmt Systems – Broadest Frameworkd

Design for Green

Materials Procurement

Production

Distribution

Collection

Recycling or Reuse

Product Life Cycle Tracks the Business

KnowledgeData

Processes

Requirements

Specifications

Documentation

Assurance – MonitoringTHE CATCH

Product Life Cycle Targets

ISO 14001 Management Programs

The Compliance Cycle is the Foundation

Procurement/Facilities- Obsolescence

-Building Design/Maintenance-Bus Travel

- Source of supply- Price & Landed Cost

- Disruption- Product Specs

Compliance- Regulations & Legislation

- Standards- Import/ Export Security

- Health & Safety

Product Dev, Manufacturing,

Logistics, and Quality-Product Development

- Manufacturability-Distribution

- Quality & Reliability- Customer- Consumer

Coordination is Critical

Partnership Mgmt is crucial in this job

Information and Communication Technology (ICT)

The Problem is of Governance and Risk

Cap and Trade LegislationIncreased Energy CostsKyoto Protocol – Reduction of Greenhouse Gases that are legally binding; implemented on a country by country basisPresident Obama’s targets setting U.S. on a course to reduce emissions to its 1990 levels by 2020 and reduce them an additional 80 percent by 2050Disclose of Climate Change risk/opportunities in SEC filingsCustomer Requirements/Market Share

Opportunity Exists Regarding Software Compliance Mgt Solutions

Microsoft Dynamics - Environmental Dashboard for Microsoft Dynamics AX enables organizations to manage their carbon initiatives for increased operational efficiency, bottom-line cost savings, and socially responsible business practices.

Project ServerTechnical ComputingSensor Networks

But, What is the Value Proposition?

Triple Bottom Line noun. A business principle that measures corporate performance along three lines: profits, environmental sustainability, and social responsibility.

ECONOMY

SUSTAINABILITYSOCIETY

SustainableDevelopment

Two Areas to Examine

Reducing the base energy used by company ICTUse ICT to enable energy reducing behaviors

Information and Communication Technology (ICT)

www.GeSI.org

ICT’s Direct Footprint

> 2% global emissions - 830 Mt C02e (2007)> Set to grow 6% each year until 2020

PCs remain largest contributor to emissions

The global footprint by sub-sector

Projections to 2020

Reducing ICT Sector Emissions

PCs:

> Efficiency gains and longer product life.> Shift from desktops to laptops> Shift from CRT to LCD screens> Potential breakthroughs – solid state hard drives, new LCD screens, new battery technology, quantum and optical computing

Datacenters:> Higher rates of virtualisation; more efficient virtualisation architectures> Low energy cooling> “Utility”/“cloud” computingSoftware as a service

Telecoms Devices:> ‘Smart’ chargers> 1W or lower standby devices > Broadband routers and IPTV boxes’ footprint increases over timeframe due to higher penetration from small base today

Telecoms Infrastructure:> New network management tools> Network optimisation packages> Solar-powered base stations> Potential breakthroughs – night battery operation, natural ventilation, “network sharing”

REDUCING ICT EMISSIONS

The Energy Mandate – The Big ICT Opportunity

Globally, ICT solutions have the potential to be an Enabler to reduce by 15% of the remaining 98% CO2 emitted

ICT enabled solutions could cut annual CO2 emissions in the U.S. by 13–22% from business as-usual projections in 2020. This translates to a gross energy and fuel savings of $140-240 billion dollars. These savings are equivalent to a reduction in total oil consumption by 11-21% and a reduction of oil imports into the U.S. by 20-36%.

In the EU – Dec. 12, 2008 - The ICT sector must lead the efforts in Europe to attain our climate change targets," said Commissioner Reding, adding that the EU executive would "play its role" in supporting this trend.

The Change Enablement Opportunity

Automation

Behavioral Changes

ICT Sector

Platforms for New

Developments

Automation Behavior Platforms for New Developments

Existing Devices•Automation of industrial processes•Building Automation•Smart vehicles•Optimization of industrial motor systemsNew Devices•Smart grid•Electric car

Data driven •Smart meters•Onboard fuel efficiency monitorsIT infrastructure enabled behavior•Teleworking•Teleconferencing•Video conferencing

Global monitoring

Applications for Efficient Markets

Applications for new products and processes design

Three Global Directions of Change

The SMART 2020-U.S. Addendum describes four main ICT opportunities to cut U.S. CO2 emissions.A smart electrical grid built on better information and communication could reduce CO2 emissions by 230–480 MMT of CO2, and save $15–35 billion in energy and fuel costs.More efficient road transportation could reduce travel time and congestion, shaving off 240–440 MMT of CO2 emissions and saving $65–115 billion.Smart buildings that consume less energy could abate 270-360 MMT of CO2 and save $40–50 billion.Travel substitution through virtual meetings and flexible work arrangements could reduce CO2 by 70–130 MMT and save $20–40 billion.

U.S. Addendum to SMART 2020

ICT Adding Value

The six broad categories of ICT as most likely to add value include:

Integrated Energy Mgt.

Systems

Advanced Communications

Systems

Advanced Sensors, Meters

and Controls

Digitally Addressable

Devices

High Efficiency End Use Devices

Design and Simulation Tools

Implementation at MicrosoftDatacenters

Source Clean EnergyEfficient Design

IT ManagementLab ConsolidationPower Management Policy Settings

Work AlternativesUnified CommunicationsHosted CollaborationOnline tools

Commuting – Central Dispatch/GPS Tracking

Connector Bus -> Promote commuting alternatives -> Reduces 250k miles per weekOn Campus Hybrid Shuttles

Also, Dematerialization – 15% of annual corporate revenue is spent on document handling

Office OneNoteOffice SharePoint Server 2007Office InfoPathDigital Download

Microsoft Confidential

Review: your world

Microsoft Confidential

Questions?

Thank you

CO2 Accounting - http://www.ghgprotocol.org/Environmental Management Systems - http://www.epa.gov/ems/Environmentally Preferred Purchasing - http://www.epa.gov/epp/EU Env. Legislation - http://ec.europa.eu/environment/index_en.htmIntergovernmental Panel on Climate Change - http://www.ipcc.ch/Product Energy Efficiency (e.g., servers, data center initiatives) - http://www.energystar.gov/U.S. Env. Laws & Regulations - http://www.epa.gov/lawsregs/

helpful resources

www.microsoft.com/teched

Sessions On-Demand & Community

http://microsoft.com/technet

Resources for IT Professionals

http://microsoft.com/msdn

Resources for Developers

www.microsoft.com/learningMicrosoft Certification and Training Resources

www.microsoft.com/learning

Microsoft Certification & Training Resources

Resources

Complete an evaluation on CommNet and enter to win!

© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS,

IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.