European Green IT Survey Which technologies for sustainable development? 2010/2011 C O N N E C T I N G B U S I N E S S & T E C H N O L O G Y
OUR VISION To create new economic and ecological opportunities Innovation Commit the organisation to a sustainable development approach Technologies Reduce the impact of technology on the environment CSR* Uses Change the way we work for a responsible business *Corporate Social Responsibility (CSR) www.devoteam.com
EDITORIAL As I write this introduction, representatives from around 200 countries are gathered in Nagoya, Japan for the United Nations Biodiversity Summit. There is a lot at stake now, since their aim is to provide a response to the major extinction of species crisis which mankind has triggered. The contribution to global warming, pollution of land & water, mining operations in sensitive sites and information technology all bear part of the responsibility for rendering ecosystems fragile. Today we have to control and reduce this impact. However, we can t limit ourselves to this reading of the situation alone. On the other side of the equation, techniques for satellite imaging, simulation, global positioning and many others are in the process of revolutionising our ability to understand and protect our environment. When defining the way forward, let us keep these two opposing visions in mind: if technology is a part of the problem, it is also at the heart of the solution! The success of our 2nd European survey edition confirms that awareness is real and Green IT now has its place within organisations today. Here you will find areas that are rapidly changing, whilst others still worrying and, I hope, ideas for the consideration of your own projects. I hope you enjoy reading it. Thomas de Lacharrière, Manager of the GreenTech range of products, Devoteam Consulting, October 2010. 3
METHOD AND PANEL Notes on the methodology used > This study was carried out by Devoteam Consulting for the 2nd consecutive year. > 187 people responded from 11 European countries. > 134 organisations are represented, of all sizes and from all business areas. > The data was collected between 16th June and 15th August 2010, using a web platform. Cross Section of the panel questioned Size of organisation Business sector Profile of the people questioned 24% 6% 11% 39% 30% 37% 13% 28% 18% 33% 61% More than 10,000 employees Telecoms/Networks/IT 1,000 to 10,000 employees Banking/Insurance 100 to 1,000 employees Public sector Less than 100 employees Energy Other IT department Other departments 4
Many reasons to adopt a Green IT approach Perception of Green IT by the respondents An important issue for sustainable development Energy savings To present a better image to our customers A fashionable pretext for reducing costs Never heard of it 6% 14% 32% 51% 67% Even if a few respondents considered that Green IT is just a pretext for reducing costs, the vast majority of them see it as an important issue for sustainable development and a way to meet customer expectations. The message is an optimistic one, since only 14% of respondents see Green IT as a passing fashion. Overall, these results confirm our perception of the market, with a nuance relating to matters of image and communication which seem to be somewhat underestimated. By way of illustration, you will find below the main reasons which drive organisations to introduce Green IT programmes. Green IT, what is the return on investment? 0 10 20 30 40 50 Energy Transport Optimised processes Purchasing Easier information exchange Attractive image Internal and external communication Motivating personnel Financial Innovation New service offers Tools for product innovation Performance Environment CO 2 Waste Resource management Symbolic Conformity Electronic waste Carbon taxing Increased regulation 5
TECHNOLOGIES The IT department focuses all of its attention on the datacenter Today, energy is at the heart of datacenter management. It concentrates on the major availability of systems issues, greenhouse gas emissions and cost control. In the service sector, it may represent as much as 25% of a company s CO2 emissions. Proportion of organisations familiar with their electricity bill for the datacenter for work stations for network infrastructure 39% 38% 65% As proof, 65% of companies know how much they pay for electricity in their datacenter, in comparison with less than 40% for work stations and network infrastructure. Often lost in a general electricity bill, the last two are more difficult to monitor. Too few IT departments are responsible for the datacenter electricity bill The situation has not changed much since last year: only a quarter of IT departments pay their energy bill themselves. Entities paying the datacenter electricity bill 0 10 20 30 7% 40 7% 50 General services IT departments 26% Industry-related departments 60% Other However, it is when the IT department pays the electricity bill that most initiatives are launched. The survey shows 35% of additional initiatives under these circumstances. 6
Good practices introduced for datacenters When the IT department pays the electricity bill for datacenters When general services pay the electricity bill for datacenters Rationalise/consolidate Virtualise servers 52% 57% 83% 83% Optimise air conditioning and electrical distribution 40% 61% Monitor and detail electrical consumption 26% 28% Re-invoice energy consumed No initiative 7% 4% 17% 14% The most widespread good practices are usually not those driven purely by a Green IT policy. Agility, resilience and cost control are reasons equally as important as energy savings in a rationalisation or virtualisation. However, the emergence of energy supervision tools shows a willingness to act for the long term. These tools provide monitoring and alert functions, important components in an energy controlled project. What about outsourced datacenters? Taking energy expenditure into account in the hosting invoice is the best (and often only) force for action in the case of an outsourced datacenter. It is a trend which we see at hosting companies, as the figures from our survey confirm. Proportion of hosting invoices linked to electricity consumption. 44% 56% Linked Not linked 7
Work station: priority given to low cost actions Actions such as instilling economic awareness and configuring work stations appear to have been widely adopted by the companies surveyed. However, we note that they do have limits and that their effectiveness can t be measured. That is why more complete energy management solutions are starting to be developed. Good practices established for work stations Making users aware Default configuration Elimination of office PC s Overall energy management solution No initiative 12% 23% 27% 55% 51% Replacing fixed computers with portables has shown itself to be an effective way of reducing work station electrical consumption. In fact, portable computers have an energy efficiency which is four times greater. However, the environmental assessment of this operation will only be positive if it is carried out on equipment which has reached the end of its life cycle. If you replace computers prematurely, the gains obtained during the usage phase will not compensate for the additional impact created by their manufacturer. Using our computers for longer is still the most ecological solution. 0 10 20 30 40 50 8
Printing: an unevenly controlled subject On average, the people surveyed estimated that they print 13 pages a day. We noticed a difference between the survey and estimates made by our clients, which shows a figure two times greater. This is explained by two reasons: a poor appreciation of what we actually print and the significant volumes of certain functions such as personnel management or communication. Good practices established for printing Consolidation/generalisation of MFPs* Making users aware Economical settings as default Selective sorting Use of recycled paper Quotas per user No initiative 4% 8% 27% 33% 62% 60% 58% The widespread use of MFPs* is at the top of the list of good practices introduced in organisations. This is an encouraging point, since this solution enables both the monitoring of printing and a reduction in the number of devices used. *Multi-function printers 10 20 30 40 50 60 70 80 9
USES The remote meeting solution becomes irresistible The use of tools facilitating reduced travel has risen by almost 50% over the last year. This confirms our observations. The recession has strongly contributed to a reduction in travel budgets. Proportion of companies that have employed remote meeting solutions 2009 2010 Video conferencing 51% 56% Working from home 30% 67% Webmeeting 23% 34% Telepresence None 13% 12% 10% 23% This growth confirms the multiple advantages of these solutions; travelling time savings, reduced costs and a positive impact on the environment. Nevertheless, as the graphic below shows, users still encounter certain difficulties which companies must seek to overcome. Actually, the issue today is not so much about the deployment of equipment as it is with increasing its rate of use. The main areas where work is needed are a closer integration of the tools with each other and a better controlled management of the transformation, in order to include these tools in company practices. Impediments to the use of teleconferencing technologies Reduced conviviality Lack of equipment Poor image/sound quality Complexity of use 31% 34% 42% 62% 10
Technology is no longer an impediment to tele-working Today, information systems are widely accessible from outside the company. Also, with the increasing availability of portable equipment, working outside the office is technologically possible. However, only 16% of employees tele-work. The factors holding it back come from social practices. Proportion of applications which are remotely accessible Proportion of employees using tele-working 5% 25% 33% 37% All The majority A small proportion None 16% 84% Tele-workers Non tele-workers Nevertheless, organisations are gradually accepting the idea of tele-working. The percentage of respondents that have built it into their contracts and agreements has doubled, changing from 30% in 2009 to 67% this year. Our survey reveals that there are seven times more tele-workers in organisations which have officially adopted the practice. Tele-working in Denmark The award for tele-working once again goes to Denmark, with it being included in the contracts of all respondent organisations and 32% of people tele-working. Denmark has been able to change attitudes, adopt this new type of organisation and derive benefits from it. 11
GOVERNANCE & CSR* A halt to carbon footprint assessments through a lack of real regulatory change The proportion of companies that have carried out a carbon footprint assessment has not changed since 2009 and has stabilised at 32%. However, there are considerable disparities across Europe. The United Kingdom is at the top of the responses with more than 90% of companies questioned having carried out a carbon assessment. This gap is explained by the arrival in April 2010 of strict legislation, the Carbon Reduction Commitment, a carbon trading system for companies. Organisations having already carried out carbon assessments 32% 68% Yes No To take matters further than an isolated carbon assessment, today we see the emergence of numerous carbon and energy management software packages. These tools allow emissions to be monitored accurately in the long term, including within complex organisations. 12 *Corporate Social Responsibility
Poor control of electronic waste Only 21% of companies know the volume of their electronic waste and monitor it at the end of its life. However, it is a company s legal responsibility to manage its WEEE* correctly and ensure that it is treated under conditions that meet regulatory requirements. However, for equipment sold since 13/8/2005, a company may ask the manufacturer to pay for the disposal and treatment (Art. R543-195 of the French environmental code). Also, the cost of collection and treatment is often included in the price paid for equipment and may be reclaimed in the event that obligations are transferred from the manufacturer to the company. Proportion of organisations controlling their electronic waste 21% 18% 61% Knowledge of volumes, plus traceability Knowledge of volumes only No knowledge of the volume of waste In a technical and rapidly changing sector, sub-contracting to a specialist company is an effective 100 solution for managing the end of life of equipment. From a cost point of view, it provides administrative 80 savings and economies of scale. From an environmental and social point of view, it allows a company to be confident that it is meeting its commitments 60 towards sustainable development. Recovery of WEEE* No initiative WEEE* collected by a specialist organisation Equipment taken back by manufacturer Equipment sold to a broker Reconditioning Sale to employees Nearly 80% of equipment at the end of its life escapes the certified and controlled treatment sector, which reports recycling performance to ADEME. Apart from the impact this waste has on health and the environment, if it is not treated using methods conforming to current standards, it constitutes a potential image problem for the company. 40 20 0 13% 22% 34% 32% 51% 48% *Waste Electrical and Electronic Equipment 13
Sustainable development more evident in IT purchasing Environmental criteria is playing a greater role in the scoring matrices for tenders. To be completed, this criteria must take into account not only a product s impact all through its life cycle, but also, the supplier s sustainable development policy. Importance of environmental aspects in purchasing criteria 10% 32% 24% 34% High (more than 20%) Average (between 10 and 20%) Low (less than 10%) Not taken into account A wide range of IT eco-labels today make it possible 100 to assess the environmental characteristics of products. The graph below shows that organisations are actually starting to ask for them. 80 Ecolabels used 60 40 20 0 Energy Star 47% TCO 20% 55% 45% EPEAT European Ecolabel 18% 18% PEFC 17% Ange Bleu 8% None At least one 14
However, a lot of communication and explanation work is yet to be done: 55% of organisations do not use any eco-labelling. Each eco-label applies to a different area. Energy Star for example, covers a wide range of equipment but is limited to energy performance. EPEAT and TCO apply to the whole life cycle; the first is widely used with computers and the second has a reputation, historically where screens are concerned. However, some equipment is still poorly represented. Firstly, servers are only labelled in respect of energy, and also mobile phones are not covered by any eco-labelling for the moment. Production Treatment Distribution Use The life cycle of electronic equipment Just like the use phase, the production and end of life processing phases have a major environmental impact. As part of a responsible purchasing policy, the life cycle of equipment should therefore be extended; it is currently 3.8 years on average in organisations which took part in the survey. Average life time of equipment (in years) Servers Printers Desktop computers Portable computers Mobile phones 4,5 4,1 4 3,7 2,9 15
INNOVATION Technology at the service of [return] sustainable development Reducing the impact of IT on the environment is the most widely visible aspect of Green IT. However, a second major aspect is the contribution of technology to establishing a more responsible economy. IT departments must be stakeholders in the sustainable development policy by supplying tools to the support functions and industry-specific departments. The figures below show that e-commerce is widespread, illustrating this innovation role. Companies sustainable development strategies are using carbon and energy management tools more and more. Finally, the creation of more environmentally friendly products is facilitated by eco-design and life cycle analysis software. 45% of organisations use electronic catalogues or e-commerce tools. 24% of organisations use carbon and energy management software. 21% of organisations work with ecodesign and life cycle analysis software. Electrical vehicles, smart meters, global positioning, intelligent buildings and dematerialisation, the news is full of innovative projects towards a greener economy. It is estimated that information technologies can produce greater CO 2 savings than they emit. It is time for IT departments to become a driving force in the development of new ecological and economic opportunities. So what is your company going to do now?
CONTACT Devoteam would like to thank everyone who took part in this survey. Thomas de Lacharrière +33 (0)1 41 49 48 48 green@devoteam.com www.devoteam.com
DEVOTEAM IS HERE TO HELP A four-stage approach to defining your Green IT strategy 1 Awareness Objectives: To make Green IT part of your organisation and involve your employees Methods: Workshops, conferences, training, videos 2 Quantitative audit Objective: To quantify your environmental impacts and their associated costs Areas for work: Energy consumed by IT Electronic waste generated Impact of employees Compatible with the ADEME Bilan Carbone method 3 Qualitative audit Objective: To identify the relevant areas for work within your organisation Areas for work: CSR governance, purchasing, reporting Technologies datacenter, work station Uses video conferencing, tele-working Innovation carbon, eco-design, supply chain Use of Devoteam Green Maturity model 4 Route map Objectives: To formalise your vision and state in terms of practical initiatives Methods: Strategic plan, action plan, ecological and financial business case
We did not inherit the earth from our forebears but are borrowing it from our children! Antoine de Saint-Exupéry
C O N N E C T I N G B U S I N E S S & T E C H N O L O G Y Devoteam Consulting 12.2010 73, rue Anatole France 92300 Levallois-Perret FRANCE Tel. : +33 (0)1 41 49 48 48 www.devoteam.com