INTERNATIONAL GREEN IT

AWARENESS WEEK 1-7 JUNE 2010 Dominique C. Brack, Switzerland

SESSION:

FROM KPIS TO THE BUSINESS CASE-

RETURN ON INVESTMENT ON GREEN IT

Dominique C. Brack, Switzerland

Dominique C. Brack, Switzerland

Dominique C. Brack, Switzerland

• Non-profit making

internationally

collaborative book.

• Creative Commons

license (available for

free).

• Can be downloaded on

the Green IT Awareness

week webpage.

Materials

Energy

Resources

Waste

Products

Manufacture Utilisation Disposal/

Recycling

Forward Logistik Reverse Logistik

AROUND KPIS

Good KPI or bad KPI? You have 5 sec to decide!

• Percentage of servers located in data centers.

• Number of greenwashing advertising campaigns.

• Average percentage of utilization of CPU of system

during the measurement period.

• Average percentage of utilization of memory

capacity of system within measurement period.

• Percentage of “dead” servers i.e. servers that are

not used based on for example hardly any CPU

utilization.

• Percentage of recycled printer paper in use.

• Number of undetected environmental violations

relative to the committal.

• Percentage of energy used from renewable

sources (“green energy”).

• Number of power point slides per minute.

• Percentage of total power that is “green” power.

• Percentage of employees who consider that their

business acts responsibly in the

society/community in which it operate.

Good KPI or bad KPI? You have 5 sec to decide!

QUANTIFIABLE AND KEY TO

ORGANISATIONAL SUCCESS

Specific

Measurable

Aligned

Realistic

Timely

Ethical

Recorded

define KPIs

define KPI target

Peer review

Implement and Adjust if necessary

check

SMARTER

test KPI

create/ accept KPI

Corporate

Strategy & Values

• Objective: What I am trying to achieve?

• Indicator: What I am going to measure?

• Measures: How I am going to measure?

• Targets: What are the expected results?

• Results: What have I actually achieved?

KPI METRICS OF APPLICABILITY

Gre

en

Pro

cure

me

nt

Po

licie

s (L

ab

el

Pro

du

cts)

Ew

aste

disp

osa

l gu

ide

line

s (Stew

ard

ship

)

Materials Waste

Your Company or Yourself

Profit (Economic Value)

People (Social Impact)

Planet (Environmental Practice)

Triple Bottom

Line:

Strategic

Tactical

Operational/ Technology

CIO

Sys

Admin

Corporate Governance, CSR

Gre

en

Pro

cure

me

nt

Po

licie

s (L

ab

el

Pro

du

cts)

Ew

aste

disp

osa

l gu

ide

line

s (Stew

ard

ship

)

Materials Waste

Your Company or Yourself

Profit (Economic Value)

People (Social Impact)

Planet (Environmental Practice)

Triple Bottom

Line:

Strategic

Tactical

Operational

CIO

Sys

Admin

Corporate Governance, CSR

Materials

Energy

Resources

Waste

Products

Manufacture Utilisation Disposal/

Recycling

Forward Logistik Reverse Logistik

Materials

Energy

Resources

Waste

Products

Manufacture Utilisation Disposal/

Recycling

Forward Logistik Reverse Logistik

• Aluminium, for instance, has an

negative environmental impact

when the raw material is

extracted, but it is relatively

benign when used or recycled.

Materials

Energy

Resources

Waste

Products

Manufacture Utilisation Disposal/

Recycling

Forward Logistik Reverse Logistik

• A printer will have its main

impact during its utilisation,

because of the consumption of

consumables--paper, in this

instance.

GREEN PROCUREMENT

Success Factors

Procurement Objective

Tender Process

• Contractual requirements

• Supplier:

o Environmental policy

o Carbon footprint

o Carbon reduction initiatives

Standards

• Energy Star ratings

• Suppliers’ equipment ratings

• Certification (EPEAT, RoHS)

Equipment

Selection

• Laptops/desktops vs. virtual desktops

• Multi-function devices

• LCD monitors

Success Factors

Procurement Objective

Carbon Offsets • Carbon management principles

e-waste disposal

• Computers and peripheral devices

• Mobile phones

• Printer cartridges included

• Buyback program

e-waste disposal

• Options for end of life

• Equipment disposed of environmentally

• Extend lifespan of equipment

• Ensure does not go to landfill

• Audit equipment disposal suppliers

e-waste collection • Collect e-waste from within supply chain

GREEN PROCUREMENT CONTINUED

CapEx vs OpEx

2008 2000 2015 2010 2012

Server CapEx

Server OpEx

Costs

“GREENWASHING”

• green*wash: (gr~en-wosh) -washers, -washing, -

washed 1.) The phenomenon of socially and

environmentally destructive corporations

attempting to preserve and expand their markets

by posing as friends of the environment and

leaders in the struggle to eradicate poverty. 2)

Environmental whitewash. 3) Any attempt to

brainwash consumers or policy makers into

believing polluting mega-corporations are the key

to environmentally sound sustainable

development. 4) Hogwash. CorpWatch Definition

GREEN E-WASTE DISPOSAL

GUIDELINES

Primary deployment lifecycle

Secondary deployment lifecycle

• ICT equipment contains

hazardous materials

• most concern are the heavy

metals like lead, mercury,

cadmium and chromium (VI),

halogenated substances (e.g.,

CFCs), polychlorinated

biphenyls, and plastics.

SELECTING A VIABLE RECYCLING OR

DISPOSAL PARTNER

Accra, Ghana, 2009 ©2009 Basel Action Network (BAN)

Guiyu, China. May 2008 ©2008 Basel Action Network (BAN))

BASEL ACTION NETWORK (BAN)

• Toxic Trade -- BAN serves as the information clearinghouse for

journalists, academics, and the general public on the subject of

waste trade. BAN maintains a website on international toxic trade

that can be accessed at www.ban.org.

• Policy Advocacy -- Recognised by the United Nations Environment

Program as the leading organization dedicated exclusively to issues

of “toxic trade,” BAN is regularly invited to participate as an NGO

expert at internal meetings and policy deliberations.

• Research – BAN conducts field investigations in developing

countries as well as providing photographic and video

documentation of toxic trade.

• Campaigns -- BAN works with NGO organizations around the globe

in campaigns to counter any form of toxic trade.

BLAH

BLAH

BLAH

BLAH

BL

BLAH

BLAH

Coffee Break!

With

compliments!

A parish priest is to offer ‘eco-sinners’ the chance

to confess in what is thought to be the first

‘green’ confessional booth. Obviously you can’t

confess all your sins in one go but must separate

bottle, paper and plastic confessions.

GREEN IT BUSINESS CASE

„There is no such thing as a 'zero

carbon footprint' – Especially not

for electrical components – Even if

you are dead you create emissions

either through cremation or through

carbonisation in the ground!” By Dominique C. Brack

„There is no such thing as a 'zero

carbon footprint' – Especially not

for electrical components – Even if

you are dead you create emissions

either through cremation or through

carbonisation in the ground!” By Dominique C. Brack

#1

Less

Description Criteria

Less refers simply to

using or creating less.

From an environmental

(not financial or

operational) point of

view, this is the most

preferred approach.

Execute a frugal approach when it comes

to consumption and infrastructure.

Don’t buy if you don’t have to. Reduce

your footprint (literally), shrink office

space, recycle/reuse hardware, and

share desks and hardware. Don’t travel,

etc.

#2

Efficiency

Description Criteria

Most of the projects with a

solid ROI are within the

efficiency realm. Bluntly,

this means doing things

better with what you have

or changing the way things

are done to make them

better.

These strategies include the bulk of

possibilities with economic impact:

virtualisation, higher server load,

videoconferencing, data centre,

rightsizing, hot/cold aisles, air-

conditioning, power-safe mode, CRT

replacement, etc.

#1

Offset Description Criteria

Offset is raising

awareness; it is an

honourable thing to

do. But the question

must be, do I really

need this bailout

from a financial and

risk perspective?

Buy credits, assign a budget to the offsets,

and play with scenarios. For instance, what

would happen if a ton of CO2 cost $10 or

$100? Contemplate different offset costs for

different geographical locations. Consider

local legislation. Watch emission scheme

developments. Involve the corporate CSR

team. Model your tax strategy around

offsets.

• When looking at the specific business case,

some key factors should be taken into

consideration:

• Corporate social responsibility

• Economic value

• Social impact

• Environmental practice

• Regulatory, compliance, and policy-based

aspects

• Direct impact of climate change

GREEN RETURN ON INVESTMENT

(GROI)

% of indirect financial benefits

% of direct financial benefits

IT/ Individual Organisation Projects best done by…

• Data centre

optimisations

(temperature, layout,

HVAC, PDUs, generator,

etc.)

• Data centre

redesign/rebuild (tiering)

• Green procurement

policy for IT

• IT equipment metering

• Monitor replacement

(CRT)

• Life cycle management

of ICT equipment

• Company-wide PC power

management and

scheduling

• Operational savings

• Combining heat and

power systems for offices

and data centres

• Corporate social

responsibility (CSR)

regarding IT programs

• Virtualisation; server

consolidation

• E-waste disposal

guidelines

IT/ Individual

• Carbon neutrality, carbon

offsetting and carbon trading

programs

• Utility rebates; reduced

electricity costs

• Comprehensive telecommuting

policy; technology enablement

• Full print output rationalisation,

paperless office

• Reduction of greenhouse gas

emissions

• Emissions reduction (chemical

pollutants, waste, water)

• Employee health programs

• Office energy management

• Initiatives for improved

employee productivity

• Procurement of green

programs

• Green asset life cycle

programs, equipment

recycling

• Implementation of

alternative renewable

energy sources (solar and

wind)

• Green legislation

compliance and efficiency

incentives

Organisation

KEY SUCCESS FACTORS

• Sustainability initiatives embedded within

corporate strategy

• Executive champions

• Engaged and involved employees

• Dedicated resources

• Information and communication technology

• Sustainability initiatives fit within the overall

strategy and program

• An engaged and involved community

• Celebration of successes

• Quantifiable targets and reporting

• Insufficient resources/budget

• Corporate commitment

• Insufficient priority/importance

• Unclear targets

• Culture

• Legacy technology infrastructure

• Requirement for short-term ROI

• Inability to monitor/measure progress

• Knowledge/understanding

• Recognised standards

• Relevant research

• Independent advice

• Training

• Peer support group

DOMINIQUE’S QUICK ETHICS CHECK

The

bubble

and me.

Put yourself in the following position: Think of your unborn son or

daughter and imagine that your ethical decision will make front-page

news and be posted on every billboard in town, even making it to

the local TV news and late-night shows. Would you be happy for

your son or daughter to hear, see, and experience this?

The

future

and me.

Picture yourself sitting back, enjoying the fruits of your labour and

achievements. Now think about the best decisions you have made in

the past. Does your current decision stack up with those? Is it in

line?

The

social

and me.

Think of your mentor, an inspiring leader, or someone less fortunate

than yourself. If you have to explain your decision to this person, will

it be understandable or reasonable in his or her context?

CLOSING

“Decisions

shape the

present and

future–not

intentions!”

—Dominique C. Brack

For complaints, suggestions, praise, and warm fuzzies, please contact

me at GreenIT@807am.com. Yours sincerely, Dominique C. Brack.