Green-IT Governance : the sustainable pair

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As invited lecturer @ Jönköping International Business School, I've tried to explain how both the concepts of governance and green-it form together the future for a more sustainable world.

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  • Coming from the industry,Coming right after a financial discussion, I’ll try to cross the Engineering / Mgt chiasm and open minds to topics that might seem less engineering oriented but that are fully part of the engineer day-to-day job and decision making framework.Speaking about City Blocks, Olivier already introduced the fact that various people had to be involved in his research projects. On of the points of my talk today is to explain how you can make all tohse profiles work together, towards a single direction.The comparison will stop there : I think I manage not to include any equation !The main messages I’d like to bring are :Broad subject, which make organisation’s border permeable Need for close collaboration of the entire organisation
  • I won’t take to much time on the environmental topics, they should already by fully understood;I’ll try to focus – of course – onto the relationship between IT and environment.The idea is of course not to provide you with expertise on regulations or governance, … but really to open minds onto a wide range of topics.Governance-- my main point in the contact of those two hours, shall be to give you hints on the set of questions and perspectives to support a dissertation on the topic of teleworking.Framework-- the idea of showing some aspects of the framework is to show that when is come to management advise, it may make sense to follow existing framewrok
  • Global warming : leads to focussing onto CO2 emissionsExtending the thoughts by looking at what is needed to feed the energy consumers : resources (in general)For operatingBut also for building and discardingBe cautious : scarcity is not to be understood as a geological matter, but rather in geo-political termsAt last, no (quoted) company today would invest without a ROI of some kind. Let’s face the situation : most of green actions are aligned with economical actions.
  • We’ve see the operational impact on global warming ;We’ve more extended impact on environment …Let’s face it (speaking to future managers) : green-ict will only be considered if initiatives create actual ROI.
  • And things are getting worse !!Opposite trends : need for IT to decrease its footprint … but the consumption for IT growth bigger and bigger.I hope I could convince you that IT IS a poluting industry;There is room for improvementThings can only get worse and worse with ever increasing demand for IT services.
  • Often, we focus on DC because limited number of stakeholders.Looking more specifically to DC : Coming back to emission vsconsumtion of scarse resources, : the diagram can be read both ways and drive the very same msg !!
  • Knowing that aviation industry produces 3 % of the total CO2 emissions in the world, how much do you think IT is responsible for ?
  • I suppose I convinced you that there is room to make IT greener;Now, there is another way to use IT in environmental context
  • Re-inforcing again the need to orchestrate various profiles towards a single direction.GREEN-OF ITA few questions should be answered:What is priority for corporate ?Do I introduce new risks ?What are the side-effects ?Do I have enough maturity ?More?GREEN-BY ITSmart GridsSmart BuildingsSmart CitiesOptimizing transportationImproved Waste ManagementMore?
  • LearnInformation …Caturing information must be reviewed (e.g. people-sensors, or the Internet of Things and hence the whole concepts behind M2M communications)Open DataUnderstandPeopleIT : Big DataInteractWeb 2.0…
  • Growth : be careful not to grow for the sake of growing: -- choose the direction wrt current situation (assess !)Local authorities must facilitate those opportunities for growing by thinking “services” both towards industry and citizen-- Growth through innovation can be achieved only with help of shared resources s.t. not only huge player can activate innovative thinking.Resources and outcomes efficiency -- think green from the idea creation -- think globally to create circularities.Ready for change-- Plan for those changes-- keep plans flexible-- make change part of the DNA : sustainability include (very) long term view and hence new external changes shall happen!-- Huge changes  innovative ways of financing must be found (e.g. for infrastructure changes) and permitting scheme must be made lighter
  • Energy IT-based optimizationGreen-OfWasteIT-tooling to create global view of material (and services) flows TransportationIT-based treatment of huge sets of data to optimize transportationRealtime IT-based publication of figuresNeighborhoodInvolvementWeb 2.0Industry : ClusteringPeople : higher citizenship + citizen-sensorWaterIT-based tooling to capture climate information and irrigate accordinglyIT-based flow mgt to use “just enough” quality water
  • Governance is affected by 2 main drivers:Internal driversExternal driversGovernance implementation Cascading from values to execution.Based on existing standards, best practices, labels and tools.Taking associated risks into considerationMonitored (continuous improvement and drivers respect).Backed by a pragmatic framework and tool
  • Some may argue the approach is too much mechanical; still, it is interesting to compare with Delphi-like
  • ContingencyEASDLCEntgov of IT
  • e.g. PRINTERS * double-side * B/W * recycled paper & cardridges * Networked MFPs (not replacing but renewing !)
  • Lights-out management (LOM) is the ability for a system administrator to monitor and manage servers by remote control. A complete LOM system consists of a hardware component called the LOM module and a program that facilitates the continuous monitoring of variables such as microprocessor temperature and utilization. The program also allows for such remote operations as rebooting, shutdown, troubleshooting, alarm setting, fan-speed control, and operating system reinstallation.
  • Need for always more Computing / storage power.How To ?
  • Sustainability evaluation :What about current machines ? … might include in planning constraints a wave approach based on foreseen EoLWhat about Networking ?What about people internal resources ?What about Risk
  • Still some common charactéristics …
  • Rappelerquel’on en a déjà touché un mot qd on a parlé de UK
  • We don’t want to run short on goods at the shop !4 levers to be used; don’t stick to a single one
  • Net result may depend on-- general outside temperature-- existing acquired devices
  • Green-IT Governance : the sustainable pair

    1. 1. T O D O By . Your Partner in Green-IT & sustainable business strategy Green-IT Governance: An introduction
    2. 2. Learning Objectives  Understand Green-IT context & CSR  Understand need for Green-IT Governance 2  Get to know a practical framework (and tool)  Review tow Case Studies  Cloud  Transportation
    3. 3. Green-IT
    4. 4. Green-IT  Understand the general context behind environmental initiatives  Understand the general context of 4 Green-IT  Understand both roles of IT in environmental context
    5. 5. Environmental Context
    6. 6. WorldWide Environment 6  Global warming  Scarcity of various resources  Global financial crisis
    7. 7. Measuring GHG Need for comparable measurement Greenhouse gases (GHGs) 7 •Water vapor •Carbon dioxide •Methane •xNitrous oxide •Ozone … How do we compare ? Global Warning Potential Global warming potential (GWP) - a measure of how much a given mass of greenhouse gas is estimated to contribute to global warming. It is a relative scale which compares the gas in question to that of the same mass of carbon dioxide. CO2e Carbon dioxide equivalent (CDE) and Equivalent carbon dioxide (or CO2e) are two related but distinct measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide (CO2) as the reference.
    8. 8. Carbon footprint and offset  The carbon footprint is the amount of GHG emitted by an organization (event, person, product) in CO2e   8 Primary (direct) CF: CO2e directly emitted by the business, including external energy use; Secondary CF: Primary CF + C02e from suppliers to customers and disposal. Use a recognized method like WBCSD GHG protocol  Don’t skip the steps: Less -> Efficient -> Offsetting. Carbon offsetting is the compensation of CO2e emission (carbon footprint) by investing in environment friendly projects, research or by buying carbon credits.  Being carbon neutral means you have a zero carbon footprint.
    9. 9. Earth impact @ time of buying 9  The Goods Economy is condemned to be eco-risky.
    10. 10. Environment: A few figures  How many computers are taken out of circulation yearly? 10 Multiple objectives: To prevent earth pollution (chemicals) To prevent resources scarcity Depends on where it is used. 150 millions, but the recycling is increasing: Objectives for EU: - 45% in 2016, - 65% in 2019.  What is the carbon footprint of a laptop used during business (4 years)? (C to C) Sourcing to distribution: 400 kg CO2e Use: 150 kg to 250 kg CO2e Recycling (0 to 75%): 0 to -30 kg CO2e
    11. 11. Green I(C)T
    12. 12. Ever growing use of IT  IT Spending Forecast Summary, Q2 12 2012 Update Gartner's current U.S. dollar growth forecast for overall global IT spending in 2012 has been revised up slightly from 2.5% last quarter to 3.0% now. Ever growing use of IT Higher and Higher environmental pressure
    13. 13. The Chain of Energy Loss 13
    14. 14. Conclusions: IT is under Green Pressure  Changing climate forces us to adapt our behavior:  Reduce the CO2 footprint  14 Reduce waste and pollution  ICT is not an environmentally friendly industry (2-> 3% of global industry footprint)  The changing supply chain  Demand side: green customer and shareholder attitude  Environmentally friendly customers vote with their wallet
    15. 15. 2 facets for Green-IT
    16. 16. Green-IT : 2 facets  Environmental facts about ICT use 16  How can IT help ?  Improve own IT environmental footprint  Improve others’ environmental footprint
    17. 17. A few Green-IT activities 17 Greening Of IT Actions taken by an organization to lower IT environmental footprint. Greening By IT ICT projects and products allowing a reduction of the global environmental footprint. e.g.  e.g. Managing electrical power used by IT infrastructure  Managing wastes and consumables used by IT and related systems Environmental friendly practices (travel optimization / reduction, ...)  Water optimization in gardening  Sustainable IT practices   Integrating building automation & power management systems Integrating and aligning with enterprise level carbon management targets and initiatives 
    18. 18. 18 Sustainability … and Smart XXX
    19. 19. Further than the environment 19 CSR SD CSR is embedded in Corporate Sustainability and Sustainable Development 19
    20. 20. General Definition  Smart cities can be identified along six main axes or dimensions: 20  a smart economy  smart mobility  a smart environment  smart people  smart living  smart governance
    21. 21. What is smartness  [latin : intelligare] covers 3 related aspect in modern languages:  Learn  Information must be created and 21 shared  Understand  People’s skills and abilities must be fostered  Huge sets of data must be valued  Interact  Everybody can be a sensor and capture the information
    22. 22. Expected capabilities  Growth  Resource efficiency  Limited un-used outcomes (wastes) 22  Ready for change
    23. 23. Domains to be tackled  Energy  Waste  Transportation 23  Neighborhood / involvement  Water … within a consistent, holistic direction  Need governance approach to create, execute and control set of policies fully aligned with higher level (strategic) directions.
    24. 24. Our view …  Smart city is the instantiation of Sustainable Development concepts within the City. 24 … Is it “just” Utopia ? ... It is today a real concern for a lot of local authorities
    25. 25. Stockolm 25 http://www.siemens.com/entry/cc/en/greencityindex.htm
    26. 26. From Smart-Cities to … Smart-X 26  Smart –  … – Infrastructure  … – Mobility  … – Financing  … – Industry  … – transportation … let us create the Smart – Society.
    27. 27. The Smart – Society  The Smart – Society is the one that is ready to tackle the challenges of the future, (e.g. demographic changes, shortage of raw materials, …). 27  The Smart Society applies sustainability approach onto various domains with two common denominators : Innovation and the Green-BY IT.
    28. 28. Green-IT Governance
    29. 29. Green- IT Governance  Understand general concepts of Governance  Understand Regulations and 29 standards
    30. 30. Governance 101
    31. 31. Introduction  Why do we need governance? (institute of governance)  Promotes trust in the organization and 31     its people, Improves decision-making and the quality of these decisions, Enhances the perception of the organization among people, Improves the ability to mitigate risks, Improves stability (financial, legal, social, industrial).
    32. 32. Green-IT governance: some concepts  Green IT governance can be defined as an operating model that describes the administration of Green-IT initiatives (…) Green IT governance specifies the decision rights and accountability framework to encourage environmentally desirable behavior in the sourcing, use and disposal of IT. To achieve this, roles, responsibilities, accountability, and control for Green IT initiatives need to be clearly established (Molla et al. 2009). 32  Green Governance is a systematic life-cycle to help an organization drive towards overall sustainability. The life-cycle focuses on continuous improvement and encompasses the following areas:  Strategy  Risk Management  Compliance Management  Idea Management  Portfolio Management  Project Management (Clark, 2008)
    33. 33. Formal approach From Typical Business Goals To IT Goals ... To COBIT Processes 33
    34. 34. Green-IT Governance is not (solely) an IT matter … Finance CSR ICT HR Green Green-IT Governance Initiatives RISK/LEGAL 34 PROCUREMENT Frameworks & Standards COMMUNICATION OPERATIONS ( business) FACILITIES Pragmatic implementation BENEFITS Continuous improvement … and changes behavior for all employees !!
    35. 35. Internal drivers  Alignment with Goals and objectives of 35 Multiple Green-IT drivers from different departments         the organization Efficient ICT to support business services Sustainable culture Better ROI and reduced operational costs Change in behavior and work practices Improved internal and external image Attract and retain employees Optimization of operations Innovation / Risk management
    36. 36. External drivers  Regulations and mandatory reporting  Carbon Reporting (CRC), WEEE, RoHs  Customers expectations  Political pressure  36  NGO lobby  Pressure is incr g easin .  WWF, Greenpeace, ITU, WRI Standards, labels, best practices, tools    United Nations, European Union, nations ISO14000, ISO 50000, ISO 26000, EPEAT, Energy Star, EU Code of Conduct, Green Grid Environmental protection  Kyoto protocol
    37. 37. Regulatory Environment
    38. 38. Standards and labels (certificates) Type Object ISO 14001 Scope Impact (1) STD Global CSR Global Facilities Global CSR Global Proc Global Proc Global Proc US Facilities Environment management system (International Organization for Standardization) ISO 50001 STD Energy management system (International Organization for Standardization) 38 ISO 26000 STD Guidance on social responsibility (International Organization for Standardization) Energy Star LBL Energy efficiencient for EE equipments (Environment and Energy Agencies US) EPEAT 3 levels, based on 23 criteria on reduction of environmentally sensitive materials, material selection, design for end of life product, energy conservation, end-of-life management, corporate performance, packaging LBL (IEEE1680) FSC Environmentally preferable electronics (Green Electronic Council US) LBL Eco paper (not recycled) (Forest Sterwardship Council US) LEED LBL Eco efficient buildings (Green Building Council) (1) Most impacted department
    39. 39. Directives, best practices, reporting and tools Into force in 2013 Type Object CRC Scope Impact (1) REP UK CSR Global CSR EU ICT FR Comm Global ICT Carbon Reporting Commitment (Government) GRI REP Sustainability reporting framework (3BL) (Global Reporting Initiative) 39 CoC datacenter BP Datacenter efficiency practices (European Commission) ADEME BP Code of conduct for greenwashing (Environment and Energy Management Agency) NEW AND HOT The methodology will help data centers realize potential energy savings and carbon reduction in areas where CER (Certified Emission Reduction) credits can be traded and sold to buyers in industrialized countries with reduction targets under the Kyoto Protocol. DC Maturity Model TL Goals and directions for DC efficiency (Green Grid US) ODCA BP Guidance CO2 reporting (cloud providers) (Open data Center Alliance) Global ICT WEEE DIR Collection, recycling, recovery targets UE Proc Global ICT (European Commission) UNFCCC Protocol NM0350 DIR (BP) Datacenter efficiency (monetization) (UN Framework Convention on Climate Change + Power Assure and Carbonomics)
    40. 40. Standards, labels, best practices and tools Regulation Voluntary Financial impact Scope ISO 14001 In 2020: -20% CO2e in UE (base 1990) ISO 50001 Global Energy Star 40 Global Global EU Code of conduct for datacenter EU Building regulation (EPC) EU/nation al Carbon monitoring (CRC) National (UK) Sustainable ICT specifications (ITU) Global
    41. 41. But all countries don’t have the same maturity 41
    42. 42. Governance Wrap-up  Use a framework (internal or external) tailored to your organization that 42 Company goals, firm size, organization structure, performance strategy, environmental impact of industry, environmental strategy, IT infusion, IT diffusion and corporate, IT, CSR governance archetypes are contingency factors.  Assesses the As-Is situation  Envisions a To-Be situation  Helps creating a roadmap  Manages the risk  Supports the green-IT strategy and the changes in the organization.
    43. 43. A practical Framework
    44. 44. Thoughts from the real world   44 You will be able to motivate key stakeholders You will prepare the organization for a shift in attitude: Think at a Change Management process! Be adaptive to the contingencies of the organization,   Look for achievable results, (budget, quality, time)  Look for immediate financial and environmental results (quick wins): Stronger factor for Green-IT!   Use existing standards, tools; don’t reinvent the wheel  Identify the internal sponsor (IT, CSR, Management) Privilege an evolutionary approach (As-Is -> To-Be) vs a revolutionary one. Build on the people, essential to the infusion of the Green-IT in the whole organization Evaluate the risk if the organization does not comply to regulation and mandatory reports
    45. 45. “Exec summary” 45
    46. 46. SGM Framework: 4 steps 46 ASSESS PLAN IMPLEMENT Quick scan Detailed audits Maturity check Project Plan Green objectives KPI definition Strategic Tactical Operational Recommandations Quick Wins Green-IT Strategy Roadmap Green BSC Green PPM Periodic reassessment Risk mitigation Communication From greening OF IT -> Sustainable IT
    47. 47. STO  3 mgt Levels; 3 timeframes; Strategy 47 Tactics Operations
    48. 48. Green-OF IT Greeen-By IT IT Lifecycle De-Centralized IT Centralized IT 4 pillars and 1 arch 48
    49. 49. Org / IT x-fusion 49 • • • • Gov Paradigm Entreprise Architecture SDLC Corp gov of IT  This are covers topics that sets the organization in relationship with the IT:  Contingency and Paradigms  Enterprise architecture  SDLC / Bus / IT alignement (effectiveness)  Enterprise governance of IT
    50. 50. Centralized IT 50 •DC Facilities •IT Equipment •Networking •Application Facilities Power Cooling Other Architecture •Outsourcing Covered under Lifecycle > Energy Supply Management IT Compute + Virtualization Storage Network Covered under various places of SGM2.0 fw Other  Removal of unused capacity (disk, servers, …)  Higher T° for DCs …
    51. 51. De-Centralized IT 51  This area covers any IT device that can be •End-User computing •Mobility •Printing •Departmental manipulated by the end user. Thus ITDepartment cannot claim full control (and hence full responsibility) on those devices. Computing  Personal HDs  Laptops & desktops  Screens  Smart Phones & PDAs  Printers Sample actions for printers:     double-side B/W recycled paper & cartridges Renewing to Networked MFPs
    52. 52. IT-Lifecycle 52 •Procurement •Recycling •Disposal •Supplier Mgt •Energy Supply  This area covers the various aspects before and after IT-services are created and managed by the IT-department (w/ help of other departments).  Retiring unused servers(*)  Re-using servers (internally or externally)  Light-Out Management (*) Watch out ! Various aspect (e.g. data privacy, …) must be considered
    53. 53. Green-By IT 53 •CSR •CO2 reporting •Green Business •Business Automation •Business Optimisation •Tele-Collaboration  This area covers any aspect of the business (other than processing and storage) where greening can be facilitated by the usage of IT. IT can help actually in enabling Business transformations.  Note that the more IT infused, the easiest it will be to green the organization BY the ICT.  Topics under this area might evolve at the time new innovation comes.
    54. 54. Green-BY opportunities … 35 opportunities have been identified by GeSI ; that should make it possible to reduce by 16 % global industry CO2 footprint. 54 http://gesi.org/assets/js/lib/tinymce/jscripts/tiny_mce/plugins/ajaxfilemanager/uploaded/SMARTer2020-presentation.pdf
    55. 55. Case Studies
    56. 56. Cloud Is it Sustainable ?
    57. 57. Cloud : just a hype or a real (potential) pain killer ?  IT’s pain points for the organization :  Is IT Corp’s core business ?  How to guarantee temporary extra power ?  Who should host Open Data ?  How to foster Open-Innovation ?  Do I need to double-invest for BCP/DRP ?  How to protect Region’s strategic IP ? Green-ict.com 11/10/2013 Green-IT Conference 2013 Sustainable Cloud 57
    58. 58. THE solution (?) • • Sustainability impact is not that easy (holistic model) • Risk perception shall vary • Green-ict.com 11/10/2013 Outsourcing does not relieve from accountability Might lose some independance Green-IT Conference 2013 Sustainable Cloud 58
    59. 59. Cloud’s general attributes 59  Shared pysical resources  Abstract Resources  On-demand Provisioning  Elastic Scale  No Up-front Hardware Investment  Utility Consumption and Pricing Green-IT Conference 2013 Sustainable Cloud Green-ict.com 11/10/2013
    60. 60. Planet  How to set up free cooling in a hot (and humid) Region ?  How to limit ghost / idle machines  From product delivery model to service model  Green-BY solutions GeSi says : 16,5 % global GHG. … Watch out … Networking energy Secondary energy Green-ict.com 11/10/2013 Green-IT Conference 2013 Sustainable Cloud 60
    61. 61. People  Enabler for communities  Foster creation stds and hence make more data available  Makes IT (internal) people closer to actual business … Watch out … People side of change Green-ict.com 11/10/2013 Green-IT Conference 2013 Sustainable Cloud 61
    62. 62. Profit Limited CapEx  makes it possible for more innovative StartUp to use same power as big players  provides low-cost redundancy and thus improve sustainability … Watch out … Budgeting Green-ict.com 11/10/2013 Green-IT Conference 2013 Sustainable Cloud 62
    63. 63. Accountability  Outsourcing does not relieve from accountability!  Make sure you can audit your provider  Identify your part of DC’s environmental impact  Take into consideration the whole chain  Optional backups  Networking … Green-ict.com 11/10/2013 Green-IT Conference 2013 Sustainable Cloud 63
    64. 64. Transport How can IT help ?
    65. 65. General Statement  Ahead of the 2-3% of industry footprint direct responsibility, … IT can help global industry to reduce carbon footprint by as much as 16%
    66. 66. 6 domains of industry … 66
    67. 67. 4 Change levers 67
    68. 68. 6 Industry domains, 4 Levels of action 68 1,91 GtCO2e
    69. 69. Transportation:  Service must remain  Main target are inefficiencies … and hence optimization ... based on 69  huge data sets  Real-time telemetrics  Major opportunities: (>50% transportation potential)  Optimization of Logistic nw  Telecommuting  Ecodriving
    70. 70. EcoDriving   Delivery needs  70 Eco-logy // Eco-nomy : 8% gain Scope definition  Embodied truck Energy ?  Measurable effects  Energy Consumption from ICT systems  Operational fuel consumption  Training fuel consumption  Reduced refinery use  Side effects  Healthier air  Private eco-driving
    71. 71. TeleCommunting  Eco-logy // Well-being  Scope definition  Personal device embodied energy  Measurable effects  Energy Consumption from ICT systems  Reduce private vehicle used  Higher private warming …  Side effects  Higher quality of life  Higher quality of work (isolation)  Change in Mgt culture 71
    72. 72. Future ?
    73. 73. The future Let’s brainstorm together! 73
    74. 74. Your Partner in Green-IT and sustainable business strategy Thierry Holoffe Tanguy Swinnen tho@green-ict.com tsw@green-ict.com @TanguySwinnen @ThierryHoloffe www.green-ict.com @Green_ICT_Com green@green-ict.com Green-IT Observatory Green-ICT Green-IT Conference Kuala Lumpur 10 October 2012 74 74

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