Green IT has significant potential to save resources both within IT systems themselves and by enabling resource efficiencies across the broader economy through intelligent IT solutions. While awareness of the differences between "green in IT" and "green by IT" is growing among companies, there is still room for improvement. The survey found that top management is often the driver of green IT projects but budget responsibility is rarely consolidated below the executive level. Additionally, investment risk and lack of experience were cited as major barriers to green IT implementation. Support from policymakers, consumers, and staff training were areas identified as needing further development to realize green IT's untapped potential.

1. 81
Green IT
Digital economy and structural change
January 13, 2011
More than a passing fad!
A joint study by:
IT harbours huge “green” potential. This applies on the one hand to the
saving of resources in IT itself (―green in IT‖). But on the other hand it also applies
to the resources that can be saved by implementing intelligent IT systems in the
economy as a whole (―green by IT‖). 54% of the companies we surveyed for this
study know the difference between the two concepts. So while the difference is
starting to sink in, there is still scope for raising awareness.
Best-practice examples should be given greater prominence. As our
survey makes clear, only 26% of companies feel compelled to implement green IT
projects for operational reasons. Instead, at many companies the key factor is the
strength of the convictions held by the executive on the idea of green IT. At 45% of
the companies, it is top management that initiates such projects. Best-practice
examples can help in efforts to make the complexity of prospective projects
transparent. Gearing project planning to positive examples makes it easier for
companies to estimate the measures necessary for their own IT system.
To be able to leverage untapped potential, structures will need to
change. To fulfil the environmental and resource targets, though, the companies
will have to revamp their structures and rigorously integrate their environmental
and energy management activities into their IT design. That is still a long way off,
however. Some 38% of the companies in our sample have appointed an
environmental officer. At the same time, some green IT projects have to proceed
even though only 32% of the companies have installed overarching budget
responsibility for energy and IT.
Authors
Stefan Heng
+49 69 910-31774
stefan.heng@db.com
Bernd Klusmann
+49 30 27576-457
b.klusmann@bitkom.org
Florian König
+49 30 27576-456
f.koenig@bitkom.org
Editor
Antje Stobbe
Technical Assistant
Sabine Kaiser
Deutsche Bank Research
Frankfurt am Main
Germany
Internet: www.dbresearch.com
E-mail: marketing.dbr@db.com
Fax: +49 69 910-31877
Managing Director
Thomas Mayer
“Green by IT” opens sizeable scope for economic and ecological
action. Companies from different sectors hope on the one hand that by means of
intelligent IT systems and innovative resource-saving processes they can counter
cost pressures. On the other, they say they want to be able to offer customers new
goods and services and offer their staff more flexible job models in the competition
for top talent.
Companies are more likely to implement ecologically relevant
innovations if these pay off in the short run. Our survey finds that
investment risk is the major hurdle thwarting the implementation of green IT
(43% of respondents agree strongly or very strongly). On this score, 60% of the
companies see the amortisation period of green IT projects falling in a depreciation
framework of up to four years.

2. 81
The Green IT Advisory Office established by BITKOM e.V. is a
special project sponsored by Germany‘s Federal Ministry for the
Environment, Nature Conservation and Nuclear Safety (BMU), the
Federal Environment Agency (UBA) and KfW Bankengruppe. It was
set up on an initiative of BITKOM – the Federal Association for
Information Technology, Telecommunications and New Media – with
the focus of support on the ―IT goes green‖ platform of the BMU
Environmental Innovation Programme (UIP). The Advisory Office
supports professional users in the implementation of green IT
projects, primarily offering consultation on the potential to save
energy and materials via green IT technologies as well as on
subsidy programmes for priority and general promotion.
In addition to traditional projects on energy and materials efficiency
the BMU‘s priority promotion activities also support the reduction of
emissions through the use of information and communication
technologies, or ICT (―green by IT‖), which often offers even greater
savings potential. Besides the targeted expansion of innovative and
environmentally-friendly ICT and system solution concepts, a further
focus of the Advisory Office is on the communication and
representation of best-practice examples in order to publicise the
technologies and encourage others to follow suit.
Further information (in German):
www.green-it-beratungsbuero.de
Deutsche Bank Research is responsible for macroeconomic
analysis within Deutsche Bank Group and acts as consultant for the
bank, its clients and stakeholders. Deutsche Bank Research
analyses trends that are relevant for Deutsche Bank in the financial
markets, the economy and society, including their potential risks and
opportunities.
For over 10 years Deutsche Bank Research has been conducting
research into the impact of continuing digitisation on business and
society as well as the related changes.
Further information:
www.dbresearch.com/Technology and Innovation
2
January 13, 2011

3. Green IT: More than a passing fad!
Intention and methodology in this study
―Green IT‖ can easily be misinterpreted, so prematurely kindled
expectations may soon be dashed. After all, IT is not ―green‖ at first
glance – and not only because more intensive use results in higher
energy consumption. Nonetheless, IT does have ―green‖ potential.
This applies on the one hand not only to the saving of resources in
IT infrastructure itself (―green in IT‖), but it also applies on the other
to the resources that are ultimately saved by the use of IT in the
economy as a whole (―green by IT‖). Green IT and its related
potential are understood and assessed in very different ways in
practice across the broad spectrum between ―green in IT‖ and
―green by IT‖. This observation was the starting point for the present
study by Deutsche Bank Research and BITKOM‘s Green IT
Advisory Office.
Glossary of main
abbreviations
ICT
Information
and communication
technology
SaaS
Software as
a Service
CO2e
Carbon
dioxide
equivalent
Wh
Watt-hour
Measure of
greenhouse
gas effect of
emissions,
standardised
to CO2
Unit of
energy
kWh Kilowatt-hour,
1 kWh = 103
Wh
TWh Terawatt-hour,
1 TWh = 1012
Wh
Source: DB Research, 2011
1
Our study, with its focus on economic aspects, seeks to analyse the
trends shaping up in practice and the motives driving green IT
projects in the first place. With this objective, our study is divided
into three sections: the first section summarises the main findings of
our survey, depicting the results in an overview featuring individual
charts and graphs. The second section gives a breakdown of the
findings of the survey in light of the experience gathered in
consultations on green IT and thus illustrates the practical
challenges facing green IT. Finally, the third section presents the
conclusions drawn from the survey and actual advisory experience
in the context of a more highly aggregated macroeconomic
assessment.
A word of thanks
We would like to thank the German Association for Small and
Medium-sized Businesses (BVMW), the Association of German
Chambers of Industry and Commerce (DIHK), ICTswitzerland and
Microsoft Germany, who supported our survey.
Survey on Green IT
Deutsche Bank Research and the Green IT Advisory Office
established by BITKOM e.V. joined forces to conduct a survey
among industry providers and users on the subject of green IT. With
a response rate of 10%, we were able to evaluate a total of 237
completed questionnaires in our analysis. At the majority of the
respondent companies, the responses came from the top
management (69%). Some 32% of the companies classified
themselves as only green IT users and, logically, 68% as green IT
providers. Among the green IT providers 25% identified themselves
as vendors, 44% as service providers and 30% as both vendors and
service providers.
Bulk of participants from the IT sector
January 13, 2011
The bulk of the participants say they belong to the IT sector (53% of
all responses); this is followed at a large interval by the
manufacturing sector and the liberal professions (12% each). In
terms of revenues and headcount, participation in our survey was
particularly pronounced among very small companies (35% have
less than 50 employees) and very large companies (26% with over
2,500 employees). At 53% of the respondent companies the
decision-makers had an academic background in engineering or the
natural sciences. The providers of green IT technologies group was
3

4. 81
explicitly also queried about experiences to date in their in-house
use and their expectations and assessments of green IT.
Majority based in Germany
The majority of the companies that participated in our green IT
survey are based and operate in Germany (96%) – regional focal
points being the metropolitan areas of Berlin, Munich, the RhineMain region and Stuttgart. Nonetheless, thanks to the support of
ICTswitzerland there were also five users and three providers from
Switzerland. Two other users from third countries also participated
in the survey.
Key findings of our survey
Investment risk, stakeholder consent
and inadequate experience curb
progress
After the initial hype that typically accompanies the launch of new
technologies, green IT has now entered the phase of constructive
debate and actual implementation in company structures. Some
40% of the companies surveyed in this study consider the
amortisation period for green IT projects to be in the depreciation
framework of up to four years. Despite this significant progress in
implementation there is nonetheless still no lack of hurdles to be
cleared. A number of companies in our survey say these major
hurdles thwarting the implementation of green IT projects lie in
investment risk (43% agree strongly or very strongly), stakeholder
consent and the as yet still inadequate degree of in-house
experience with green IT projects (33% each).
Support needed from policymakers
and consumers
In our sample, many companies say the explanation for the sluggish
implementation of green IT projects is that it has too little importance
on the public agenda (14%: agree strongly; 34%: agree), the lack of
transparency of the product range (7%: agree strongly; 30%: agree)
and the lack of a budget (11%: agree strongly; 21%: agree). By
contrast, the potential pressure from the competition or an internal
lack of agreement is only seldom cited as a reason for sluggish
implementation. Apparently policymakers and consumers in
particular are also key in deciding whether green IT makes faster
progress.
Need for a committed executive and
attentive staff
38% of the respondents have explicitly appointed an environmental
officer who is responsible for meeting the company‘s climate and
resource targets. In 66% of the companies the upper management
or the head of the in-house IT section initiates the green IT projects.
In addition, the survey participants also often cite the commitment of
staff as one of the ―other‖ stimuli. Company training is very important
here and is already being conducted at one-third of the companies
surveyed. So green IT needs a committed executive, but also
attentive trained staff.
Budget responsibility seldom
converges below top management
Need for specific IT support
So far, green IT has had to proceed in many companies despite the
fact that budget responsibility for energy and IT does not converge
below the top management level. Overarching budget responsibility
below this level is to be found in 32% of the companies analysed.
Many companies have explicitly formulated climate and resource
targets in their strategies and are addressing the strategic
sustainability objective with specifically coordinated IT support. 60%
of the companies surveyed use management and control technology
or management systems to achieve these strategic corporate goals.
In the following we give an overview of the findings of our survey:
4
January 13, 2011

5. Green IT: More than a passing fad!
Findings of our survey among users of green IT
Nearly 40% have an environmental officer
Companies with an environmental officer
n.a.
8%
yes
38%
no
54%
N=237
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
2
At many participating companies green
IT has so far had to proceed despite
the fact that budget responsibility for
energy and IT only converges at the
uppermost level of decision-making.
Overarching budget responsibility
below the top level is to be found in
over one-third of the companies we
analysed.
Green IT must often proceed without overarching
budget responsibility
Has budget responsibility for energy and IT converged?
n.a.
17%
38% of the respondents have explicitly
appointed an environmental officer who
is responsible for meeting the
company‘s climate and resource
targets. With this finding it should be
noted that the majority of the
respondents are from small and
medium-sized companies. 75% of the
subgroup of larger companies with
more than 2,500 employees that is not
represented here say they have
appointed an environmental officer.
Differences in capital and human
resources are part of the reason for the
fact that large companies tend to work
with an appointed officer on the subject
of green IT more than small companies
do.
yes
32%
no
51%
N=237
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
3
At 66% of the participating companies
the upper management or the head of
the IT section initiates the green IT
projects. In addition, the participants in
our survey also often cite the commitment of staff as one of the ―other‖
stimuli. So green IT needs a committed
executive, but also attentive staff.
Green IT often initiated by upper management
Places where green IT is initiated in companies
10% 11%
8%
21%
45%
Environment officer
Upper management
Head of IT
Other
5%
Finance / Purchasing
n.a.
N=237, multiple responses possible
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
January 13, 2011
4
5

6. 81
In keeping with the central role of upper
management in the implementation of
green IT projects it emerges that in
close to 90% of the respondent
companies the stimulus for such
projects comes from merely one or, at
most, two places.
Green IT needs lone wolf
Number of places that initiate green IT in the company
2
27%
3
10%
>3
3%
1
60%
N=201
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
5
Majority know the difference
Difference between "green in IT" and "green by IT" has sunk in
n.a.
9%
yes
54%
no
37%
N=237
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
6
A majority of the respondent companies
know the difference between ―green in
IT‖ and ―green by IT‖. The significantly
differing approaches of the concepts
that fall under this keyword have sunk
in with many decision-makers, but
there is still scope for raising
awareness. In the subgroup of
companies that have already
implemented green IT projects some
two-thirds have realised there is a
difference between green in IT and
green by IT – but still not everyone.
More than two-thirds of the companies
surveyed have set climate targets.
Within this group, half of the companies
have explicitly anchored at most two
targets in their strategy, and onequarter of them four.
Many have defined one or two climate and/or
resource targets
Number of climate and/or resource targets anchored in company strategy
25%
2%
25%
25%
23%
1
2
3
4
>4
N=176
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
6
7
January 13, 2011

7. Green IT: More than a passing fad!
Only 26% of the respondent companies
feel compelled to implement green IT
projects. At those companies that do
feel this compulsion, the pressure is
often explained by pointing to heat
build-up in the server room and energy
costs. Thus, in many companies,
reasons other than the ones listed here
play the crucial role in decisions on the
implementation of green IT.
Only a minority feels compelled to implement
green IT
Q: "Do you feel compelled to implement green IT in the near future? If so, by
which factor?"
18%
5%
5%
10%
56%
6%
Bottleneck in energy supply
Heat build-up in server room
no
Scarcity of space
Other
n.a.
N=237, multiple responses possible
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
8
One-third of the respondents provide
training for their employees on the
subject of green IT. So this area will still
harbour considerable potential going
forward.
Considerable potential for training on subject of
green IT
Participating companies that train stafff on green IT
n.a.
16%
yes
34%
no
50%
N=236
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
9
Some 60% of the companies surveyed
use management and control
technology or management systems to
achieve the company‘s strategic
targets. Among the other supporting IT
systems the participants often refer to
virtualisation. Only a minority of the
participants say they want to approach
the targeted objectives without any
special supporting IT systems
whatsoever.
Some 60% use management systems or
management & control technology
IT systems used to achieve targets
7%
24%
28%
7%
34%
Management systems (with focus on CSR, carbon life cycle management)
Management & control technology (for data centres, facility management, PCs)
Other
no
n.a.
N=237, multiple responses possible
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
January 13, 2011
10
7

8. 81
Pressure from policymakers and consumers plays
important role
Q: "What would you say are the reasons that green IT is not being
implemented?"
No pressure from policymakers or
consumers
No green IT budget
Green IT product range is not
transparent
Competitors not doing anything either
Lack of in-house agreement
Lack of agreement between IT and
users
0%
Agree strongly
Rather disagree
25%
Agree
Disagree altogether
50%
75%
100%
Agree partly
n.a.
N=237
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
11
A number of companies say the major
hurdles thwarting the implementation of
green IT projects lie in investment risk
(43% agree strongly or very strongly),
stakeholder consent and the as yet still
inadequate degree of in-house
experience with green IT projects (33%
each). Besides, the participants also
refer to the conflict between attaining
short-term returns on investments and
installing strategic, long-term projects.
By contrast, the respondent companies
regard the availability of the IT infrastructure (7%) as the smallest hurdle in
the implementation of green IT
projects.
Hurdle of economic efficiency
Hurdles thwarting realisation of green IT projects at companies
Investment risk
Lack of experience with individual
solutions
Steakholder consent
Potential conflict over data security
Financing risk (availability, costs of
funding)
Complexity of instruments for
achieving energy efficiency
Availability of IT infrastructure
0%
25%
50%
Many companies explain the really
slow implementation of green IT
projects as being due to the often
insufficient pressure from policymakers
and consumers (14%: agree strongly;
34%: agree), the lack of transparency
of the product range (7%: agree
strongly; 30%: agree) and the lack of a
budget (11%: agree strongly; 21%:
agree). By contrast, the potential
pressure from the competition or an
internal lack of agreement is only
seldom cited as a reason for sluggish
implementation. Obviously, the
sustained interest of policymakers and
consumers could give the realisation of
green IT projects at companies an
additional fillip.
75%
100%
Agree very strongly
Agree strongly
Agree more or less
Agree little
Disagree
n.a.
N=237
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
12
Internal financing with equity capital is
by far the most important method of
funding for green IT projects.
Obviously, many companies do not
bank on green IT until they have
already generated the required capital.
Green IT projects usually financed internally
Usual method of funding green IT projects
1%
1%
15%
6%
5%
57%
11%
4%
Internal equity financing
Leasing
Financing via bank of provider
Other
External equity financing
External debt financing
Government promotion
n.a.
N=237, multiple responses possible
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
8
13
January 13, 2011

9. Green IT: More than a passing fad!
Findings of our survey specific to the providers of green IT
Over half of the respondent providers
regard investment in green IT projects
to typically have a very minor volume of
less than EUR 200,000. By contrast,
only almost one provider in ten says
the typical volume is more than EUR
500,000. The responses given here
might also suggest that green IT users
initially approach the issue cautiously,
assuming a manageable level of
financial risk owing to their overall
profitability.
Green IT mainly linked with small investment
volume
Typical investment volume for green IT projects (EUR 10,000)
34%
14%
5%
4%
18%
5%
20%
<1
1 - 4.99
5 - 19.9
20 - 49.9
50 - 99.9
>99.9
k.A.
N=162
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
14
As to be expected with new
technologies, 66% of the respondents
look for rapid revenue growth over the
coming five years; the majority call for a
rate of 1% to 15%. Nonetheless, nearly
an equal number of providers expect
either a still more substantial upswing
or else a period of flat growth in green
IT. This shows that the market picture
on the outlook for green IT is still pretty
mixed.
Broad mix of expectations for green IT
Forecast of green IT revenue growth in 5 years (% vs. 2010)
2%
15%
21%
17%
45%
-15% - -1%
Nearly unchanged
+1% - +15%
> +15%
n.a.
N=162
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
15
Over 40% of the respondents estimate
that users of green IT can achieve
energy savings of more than 15%. As
to be expected, only a negligibly small
minority think that customers will not
achieve tangible savings with green IT.
Evidently, green IT and energy
conservation go hand in hand in the
overwhelming majority of projects for
the user.
Green IT and energy conservation go hand in hand
Typical energy savings for users thanks to green IT according to providers
14%
23%
28%
4%
31%
No significant savings
15% - 30%
No estimate
Up to 15%
>30%
N=162
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
January 13, 2011
16
9

10. 81
More than one respondent in four of the
green IT providers expects that their
clients‘ investment in green IT will pay
off within two years. Nearly two-thirds
of the providers see green IT projects
being amortised within a period of three
to four years. This means that
managers who focus exclusively on
very short-term profitability will be more
reluctant to invest in green IT.
Green IT is not for impatient investors
Typical amortisation period for green IT (years)
7%
33%
5%
32%
23%
Stefan Heng (Deutsche Bank Research,
<1
1- 2
3- 4
>4
n.a.
+49 69 910-31774, stefan.heng@db.com)
N=162
Source: DB Research and Green IT Advisory Office (BITKOM), 2011
10
17
January 13, 2011

11. Green IT: More than a passing fad!
Experience gathered in green IT advisory
This second section gives a breakdown of the findings of the survey
in light of the experience gathered in consultations on green IT
projects. The insights of BITKOM‘s Green IT Advisory Office are
meant to help readers get a more concrete idea of the practical
challenges facing the green IT sector.
Everything depends on the individual case
Much of the efficiency potential can
still be tapped
They really do exist, positive examples, that is, of how green IT
projects are being successfully implemented in companies and
organisations of various sizes. However, advisory practice and
discussions with users also show that despite the availability of
technologies and solutions much of the potential for energy and
materials efficiency in ICT infrastructures and ICT systems has not
yet been tapped. The question ―why‖ is what moved the Green IT
Advisory Office to conduct this joint analysis with Deutsche Bank
Research. The findings may help many decision-makers to eliminate
the obstacles that are still blocking the implementation of green IT
projects.
Measure, measure, measure
Uncover hidden energy consumption
at weekends and during the night
Every step towards optimisation should be preceded by detailed
monitoring of energy consumption. When these analyses are
conducted over an extended period, hidden energy consumption
and peak loads at weekends and during the night can also be
uncovered. The daily work of the Advisory Office provides evidence
that optimisation projects are frequently launched without running a
battery of tests beforehand. For this reason, it is not always the
biggest energy consumption units that are exchanged first nor is
optimisation potential fully tapped.
It has been a very positive experience in planning and implementing
green IT projects to work with users who have focused on issues
above and beyond cost savings alone. In such cases it is not even
absolutely essential that these projects be monitored by in-house
environmental managers or officers to enable their successful
completion. Well-trained employees and/or IT officers with advanced
skills, but especially responsible, conscious efforts to do something
positive for the environment have a major influence on a project‘s
success.
Subsidised energy consultations
Fund for energy efficiency in SMEs
Germany‘s small and medium-sized enterprises (SMEs) in particular
can be helped in the search for hidden energy use by an energy
consultation subsidy from the Sonderfonds für Energieeffizienz in
KMU, a fund set up especially for energy efficiency in SMEs by
Germany‘s Federal Ministry of Economics and Technology (BMWi)
and KfW Bankengruppe.
The BMU’s Environmental Innovation Programme
Demand for grants for green IT
projects
January 13, 2011
Priority promotion in the BMU‘s Environmental Innovation
Programme usually sees investment being supported by a KfW loan
subsidised by the ministry. However, what is nearly in sole demand
from the Green IT Advisory Office is a grant variant (up to 30% of
the investment costs) which, as an exceptional subsidy, requires a
special application.
11

12. 81
On the general promotion side, the ERP Environmental and Energy
Efficiency Programme of the BMWi and KfW Bankengruppe, support
is offered without exception via low-interest loans. Nevertheless,
interest in grant funding is expressed regularly.
Green IT promotion
General promotion meant to take
consideration of differing project
durations
Users are in a favourable position in that they are being offered
attractive financing plans from ICT vendors and system houses as
an alternative to general promotion funding. The practice of general
promotion provides that energy and materials-efficient technologies
with differing useful lives (as an example: server vs. photovoltaics
system) obtain uniform funding offers via loans from the funding
sponsor. As a result, loan maturities for green IT projects which often
have useful lives of less than five years are longer than the useful
life. This may explain why there is frequently demand for investment
grants.
Successful energy and materials-efficiency projects
Imperative to thoroughly scrutinise
necessity and complexity of new
systems to be purchased
As a further development to general promotion, preferential support
could be given to best-practice examples in which the amount of
energy or materials-efficiency potential tapped is particularly high.
On the one hand, partial investment subsidy grants could be
examined, while on the other hand positive reference projects could
be highlighted via acknowledgement and accolades from the
funding sponsor. A number of successful energy and materialsefficiency projects already exist in which extensively tested
technologies are being used. The success of these projects is partly
attributable to the fact that the officers responsible have closely
scrutinised the necessity and complexity of their systems and
infrastructures. This enabled procurement plans to be adjusted to
actual demand and the best technologies available to be deployed.
Such projects also prove to be landmarks in general promotion and
may encourage others to follow suit. Even if the pronounced
heterogeneity of the individual IT environments invariably allows
only limited scope for comparisons, such positive project examples
may generate a great many ideas for other users.
Bernd Klusmann (Green IT Advisory Office (BITKOM),
+49 30 27576-457, b.klusmann@bitkom.org)
Florian König (Green IT Advisory Office (BITKOM),
+49 30 27576-456, f.koenig@bitkom.org)
12
January 13, 2011

13. Green IT: More than a passing fad!
Analysis of green IT: Hype has given way
to rational consideration
This third section puts the previously obtained findings into the
context of a more highly aggregated macroeconomic analysis. This
section should provide readers with an aid to find their way around
the multi-faceted realm of green IT.
In the public focus everywhere
Close correlation
GDP growth and power consumption,
real terms, Germany (% yoy)
9
6
3
0
-3
71
77
83
89
95
GDP
01
07
Electricity
Source: Bundesverband der Energie- und Wasserwirtschaft, 2008
18
Given this broad coalition of supporters, who would want to dispute
that green IT is not a key issue of this day and age? The following
examples alone say it loud and clear:
CO2e-emissions of ICT sector,
Germany 2007 (%)
— In Germany, power consumed by information and communication
9
devices totalled some 55 TWh (1 TWh = 10 kWh) in 2007 and
thus accounted for over 10% of total power consumption. The
overall information and communication technologies sector is
thus responsible for 2% of CO2e (carbon dioxide equivalent)
emissions – the lion‘s share being generated by the segment of
PCs, desktops, laptops, monitors and other hardware (Chart 19).
25
9
48
Data centres
PCs, other hardware
Telecommunications terminals
Telecommunications networks
Source: GeSI et al. 2009
Since companies have spent years seeking to meet the rapidly
increasing demand for data-processing and memory capacities,
these supplemental aspects of the strategy are now switching the
focus to energy efficiency and greater job flexibility. Correspondingly, the big IT trade fairs such as the Symposium/ITxpo in Cannes
or CeBIT in Hanover have in recent years selected green IT as one
of their key themes. Since the hype over the initial technological
fascination with green IT has now given way to rational consideration of the issue, policymakers are also seizing on it in a constructive way; they want to drive green IT forward in order to loosen
the link between energy consumption and economic growth and
lend a hand in global climate protection (Chart 18).
Practical cases draw attention to green IT
PC segment is biggest
emitter in ICT sector
18
Owing to increasing energy prices, looming climate change and
the related tightening of environmental regulatory policy many
companies are currently revising their ecological strategy. In most
cases, ICT has a key role in structuring these strategic considerations. In this context, companies from a broad spectrum of sectors
may hope on the one hand that by using intelligent IT systems they
can counter cost pressures. On the other hand, they can ideally
offer their customers new goods and services and, furthermore,
offer more flexible labour organisation models in the competition for
top talent.
19
— The energy requirements of Germany‘s data centres alone
probably totalled some 11 TWh (over 2% of total power
consumption in Germany) in 2010, according to numbers
1
published by Fichter et al. (2009) ; this equals the annual output
of five coal-fired generating plants. The CO2e emissions caused
2
by German data centres thus total nearly 6 million tonnes. In
Germany, CO2e emissions of the ICT sector are likely to increase
between 2007 and 2020 by an average of 0.9% p.a. and then
1
2
January 13, 2011
See Fichter, Klaus et al. (2009). Green IT: Zukünftige Herausforderungen und
Chancen. Background paper for the BMU/UBA/BITKOM annual conference in
Dessau in 2009.
See GeSI et al. (2009). SMART 2020 Addendum Deutschland: Die IKT-Industrie
als treibende Kraft auf dem Weg zu nachhaltigem Klimaschutz. Berlin.
13

14. 81
total 26 million tonnes; this corresponds to an increase in the
3
total share of CO2e emissions from 2% to 3%.
Green IT helps slash costs
Example of annual IT electricity costs
in a company with 130 FTEs (EUR '000)
18
16
14
12
10
8
6
4
2
0
-75%
Initial situation
Optimised IT
Jobs
Server room
Source: dena, 2009
20
Attraction of 75% savings
potential
Potential reduction in energy costs at a
typical data centre (%)
Reduction of data
and applications
Procurement of
energy-efficient
equipment
Optimisation of
climate control
Improvement in
server utilisation
0
10
20
30
Source: dena, 2009
40
21
IT making an ever larger
contribution
Share of IT industry in global GDP (%)
9
8
7
6
5
4
3
2
1
0
2002
2020
Source: GeSI et al., 2009
22
— If the German data centres rigorously retooled to efficient green
IT, power consumption could be lowered from over 10 TWh in
2008 to about 6 TWh in 2015. At an electricity price of 0.12
4
EUR/kWh this adds up to around EUR 500 m (see also Charts
20 and 21).
Inaction often due to misunderstanding
Based on the increasing importance of ecology issues, the Global
e-Sustainability Initiative (GeSI), a not-for-profit organisation of the
ICT industry sponsored by the UN Environment Programme (UNEP)
and the International Telecommunications Union (ITU), estimates
that between 2002 and 2020 the contribution of the IT industry to
global GDP is going to grow from 5.8% to 8.7% (Chart 22) – thanks
not least to the growth segment of green IT. Deutsche EnergieAgentur (dena), an energy agency in Germany, expects the world
market for desktop virtualisation to increase nearly twenty-fold
between 2008 and 2013. During this same period, the market for
retooling to energy-efficient data centres in Germany in particular is
expected to be worth EUR 400 million. Furthermore, the market for
5
―green by IT‖ is likely to total EUR 84 bn by 2020.
Thus, research on green IT produces impressive facts and
assessments everywhere. So why is it that some people always
want to refer to green IT as nothing more than a passing fad? One
reason for this perception probably has something to do with the
terminology. ―Green IT‖ can easily be misinterpreted, so prematurely
kindled expectations may soon be dashed. After all, at first glance,
IT is not ―green‖ – and this is not only because of the energy
consumption which is naturally linked with the rapidly increasing
demand of companies and end-users for more and more data
processing capacity. Critics of green IT note that on the liabilities
side there are additional items to consider besides energy
consumption, for example, the environmental compatibility of the
materials used in production or the waste electrical and electronic
equipment that eventually requires disposal.
On disposal issues, green IT critics emphasise that outdated hardware is the source of much of the waste electrical and electronic
equipment. Such ICT waste totals 5 million tonnes per year in
Germany. Nonetheless, legislation and directives at the EU level
have compelled manufacturers to introduce recyclable designs to
increase the recycling ratio and reduce environmental strains. This
was necessary in particular because decommissioned equipment
can contain as many as 60 chemical elements – including trace
6
elements such as indium. Up to now it has been difficult to recycle
this valuable IT waste because of the material‘s properties.
IT has green potential
Disregarding the clear focus on energy consumption, manufacture
and waste disposal, IT does most certainly harbour ―green‖
potential. This applies not only to the saving of resources in IT
3
4
5
6
14
See GeSI (2009), ibid.
Average price of electricity for industry from 2008/2009 according to data from VEA
(Bundesverband der Energie-Abnehmer e.V.) and BDEW (Bundesverband der
Energie- und Wasserwirtschaft e.V.).
See dena (2009). Green IT Potenzial für die Zukunft: Energieeffizienz steigern,
Wachstumsmärkte erschließen und Nachhaltigkeit sichern. Berlin.
Further tightening of the rules results today in substitutes being used whose
properties are much less damaging to the environment.
January 13, 2011

15. Green IT: More than a passing fad!
infrastructure itself (―green in IT‖), but also to the resources that can
ultimately be saved by the use of IT in the economy as a whole
(―green by IT‖). IT induces this overall macroeconomic effect via two
factors. One of these is intelligent IT systems that help to monitor
existing processes better and manage them more efficiently. Another
is intelligent systems that, also in the larger context, lead to
completely new resource-saving business models and processes.
Companies at work on green targets
Many measures focus on data
centres
As our survey, like other surveys, illustrates (see for example Chart
2 or 5 of our survey), a number of companies have already
embraced the subject of green IT and sought to reduce CO2e
emissions and resource consumption, with the measures
implemented primarily focusing on data centres. In this context,
virtualisation is an approach that seeks to combine resources of a
computer (in the server area in particular) via virtual capacities,
instead of operating huge monolithic servers for individual
applications. Besides location-allocated software applications (e.g.
SaaS) discussions focus here in particular on cloud computing
approaches. Cloud computing describes the variable deployment of
data processing capacities, setting the currently predominant,
primarily local client-server approach against variable deployment of
processing capacities, infrastructures and applications in
decentralised networks. However, our survey leaves no doubt about
it: there is still a long way to go from discussions of its benefits
through to practical implementation in companies. The virtualisation
ratio of data centres now comes to 15%, and so far even in big
international companies virtually no grid or cloud computing projects
7
have been realised yet.
On the long road towards integrated environment
management
PC remains biggest emitter
CO2e-emissions of ICT sector, Germany
(m tonnes)
2007
2006
2005
2004
2003
2002
0 2 4 6 8 10 12 14 16 18 20 22
Data centres
PCs, other hardware
Telecommunications terminals
Telecommunications networks
Source: GeSI et al., 2009
23
Not enough to simply replace old
equipment with new
There is an impressive amount of potential to be tapped in the
realisation of green IT projects. GeSI et al. (2009) calculate that
given rigorous, rapid implementation of what is possible will enable
the ICT industry‘s CO2e emissions to be reduced by 25% by 2015
and as much as 50% in 2020. In a comparison of the four ICT segments (data centres, PCs and other hardware, telecommunications
terminals and telecommunications networks) in Germany the
biggest relative savings potential may be found at data centres.
Emissions there may be reduced by 2,300 tonnes of CO 2e (35%) by
2015, and by as much as 60% or so (4,200 t CO2e) by 2020. By
contrast, the largest absolute savings potential is to be found in the
PCs, desktops, laptops, monitors and other hardware segment (by
2020: -7,000 t CO2e) – however, this segment will remain the
biggest emitter in absolute terms even after this reduction
(Chart 23).
In the context of possible measures it emerges that switching from
old equipment to new already boosts the energy efficiency of
hardware significantly. The energy efficiency of computers – as
measured in processing operations per watt – has been increasing
rapidly for years; over the past 10 years, for example, by a factor of
100. However, this efficiency gain is in most cases cancelled out by
the heavier use of IT.
Nonetheless, simply replacing old equipment with new equipment
will not be nearly enough to achieve the often ambitious
7
January 13, 2011
See Kolbe, Lutz M. et al. (2009). Studie Nachhaltigkeit und Green IT in ITOrganisationen. Status Quo und Handlungsempfehlungen. Berlin and Göttingen.
15

16. 81
environmental and resource targets. Rather, what is more important
is that companies go beyond their commitment on hardware and
software, shake out entire corporate structures and in doing so
rigorously combine the environmental and energy management
portfolios with IT design. Only a company that has addressed the
subject of green IT in an overarching manner, also taking into
account the position of the staff and communicating the measures
internally in proper fashion, can actually tap the huge operational
and strategic potential of green IT.
Establish interface between IT and
environmental management
Staff challenge
Until such an ideal situation is anywhere close to materialising,
though, much still has to be done in other areas. For instance, in
tune with other studies, our survey emphasises that with the bulk of
companies the interface between IT and environmental management is still not established as a matter of course (see for example
Charts 2, 3 and 4 of our survey). This usually results in not only
strategic disadvantages within the organisation but also an
inadequate level of communication with the staff on the environmental targets.
Like other empirical analyses, our survey also refers to the fact that
the potential to be tapped by means of technology is currently not
being used on account of the lack of insight on the part of the staff
(see for example Charts 10 and 12 of our survey). In many
organisations, for instance, it is common that employees do not shut
down their PCs overnight or over the weekend. For example, Kolbe
8
et al. (2009) measure a ratio of 50% in this context in German
companies. If the energy-saving mode is not activated, workplace
PCs consume up to 100 Wh even when they are idle.
“Green by IT” breaking new ground
Buildings offer the greatest
potential
Potential IT sector revenues on "green
by IT", DE 2020 (EUR bn)
Far beyond the aspect of ―green in IT‖, the aspect of ―green by IT‖
opens sizeable scope for economic and ecological action. For
example, ―green by IT‖ enables implementation of new offers and
innovative resource-saving processes in many sectors of the
economy. GeSI et al. (2009) put the potential savings to be achieved
via information and communication technology outside of the actual
ICT sector at close to 200,000 tonnes of CO2e p.a., i.e. eight times
the emissions of the ICT sector as a whole. These huge potential
savings are to be found among the biggest CO2e emitters in
industry, transport and logistics, energy and facility management in
particular.
Besides the potential directly linked with a given sector, as an
overarching technology ―green by IT‖ is already noticeably changing
the economy today. Particularly promising examples under
discussion are (Chart 24):
Smart
grid
Smart
motors
— Smart agriculture (IT-assisted agriculture);
Dematerialisation
— Smart buildings, connected living (e.g. climate management
systems, planning tools, equipment control);
Smart
logistics
— Smart consumption (e.g. shopping navigator, equipment control,
online coaching);
Smart
buildings
0
10
Lower estimate
20
30
40
Upper estimate
Source: GeSI et al., 2009
24
— Smart logistics (e.g. city street tolls, traffic control management,
car electronics/navigation);
— Smart motors (e.g. frequency inverter, system automation,
optimised power plant operation);
8
16
See Kolbe, Lutz M. et al. (2009), ibid.
January 13, 2011

17. Green IT: More than a passing fad!
— Smart services (innovative services, e.g. efficiency concepts for
internet shopping);
— Smart closed loop economy (e.g. recycling);
— Dematerialisation (e.g. e-invoicing, e-media, e-paper, telework,
virtual conferencing);
— Smart water supply (IT-assisted water supply and use).
Saves resources via various levers
Smart grid and smart metering on
everybody's lips
These examples save resources by substantially different potential
amounts via various levers – from saving paper by digitising
documents right through to saving mineral oil deposits by reducing
commuter traffic.
The subjects of smart grids and smart metering are on everybody‘s
lips at present in connection with the politically intense debate on
the future of energy policy. Power consumption has grown by more
than 15% since 1991 and gross power generation has now
increased to over 625 TWh. The nearly 400,000 gigatonnes of CO2e
emissions that arise in the process represent 40% of Germany‘s
total greenhouse gas emissions. A fundamental change in energy
supply is taking place with the increasing decentralisation of the
feed-in of renewable energy sources (wind, solar). This substantially
boosts the complexity of network operations and raises the bar for
the controlling information technology. With demand for electricity
constantly increasing (up 15% in Germany since 1991), green IT
can do much to reduce CO2e emissions in the smart grid and smart
metering segments.
Government can play an instrumental role
How ecologically relevant
innovations can be implemented in a
market environment
Nielsen’s “law” remains
valid: +50% p.a.
— Direct monetary subsidies (e.g. promotion programmes, stimulus
package II);
Speed of internet access, UK, Mbit per
second
1,000
— Adjustment for a consistent legal framework (e.g. Germany‘s
energy industry legislation (EnWG));
100
— Formulation of political objectives (e.g. the German government
declared in November 2008 that it intended to reduce energy
consumption in the federal administration‘s IT operations by 40%
by 2013 from the highest reading before 2009);
10
1
— Consolidation, structuring and publication of technological and
market-relevant information on the subject;
0.1
0.01
— Recommendations for the implementation of such projects at
company level;
0.001
0.0001
80 85 90 95 00 05 10 15
Actual
Estimate by Nielsen‗s ―law‖
Source: FttH Council Europe, 2008
As ―green in IT‖ and even more so as ―green by IT‖, green IT offers
clearly positive externalities for the entire economy. However, given
the ecological hype linked with the issue it should not be forgotten
that, in a market environment, ecologically relevant innovations can
only be implemented on a broad scale if they are ultimately also
economically viable for the relevant company. This is where the
government can step in and support the advancement of green IT
projects. Instruments include:
— Creation of fora for information exchanges between users and
providers (e.g. EU Code of Conduct for Data Centres);
— Establishment of focal areas for promoting academic research;
25
— Assumption of pioneer function as user of resource-saving
9
technologies (e.g. in virtualisation, thin clients );
9
January 13, 2011
A thin client is a computer terminal whose hardware is deliberately reduced
compared with a PC and mainly designed for inputting and outputting data.
17

18. 81
— Promotion of increased cable and wireless-based network
infrastructure as a technological prerequisite for the rapid
increase in data traffic with the new applications (see Chart 25).
It happens all too often also in the green IT sector that government
support is confined to direct funding. Nonetheless, the examples
show that government promotion can be much more comprehensive
and creative. There is a raft of instruments available to do so,
including infrastructure promotion in related segments (e.g. the
10
development and expansion of broadband telecommunications ). At
the end of the day, it applies as much to the promotion of green IT
as to any other cross-sector technologies that the impact should not
be viewed in isolation but rather as to how it is imbedded technically
and functionally in long-term economic relationships.
Conclusion: Green IT is more than just a
passing fad!
"Green in IT" and "green by IT"
harbour huge potential
IT harbours huge ―green‖ potential. This applies not only to the
saving of resources in IT infrastructure itself (―green in IT‖), but also
to the resources that can ultimately be saved by the use of IT in the
economy as a whole (―green by IT‖). So the difference is starting to
sink in, but it still has potential to spread: 54% of the companies in
our random sample know the difference between the two concepts
―green in IT‖ and ―green by IT‖. The macroeconomic impact of green
by IT is induced via two factors: intelligent IT systems help for one
thing to make existing processes more efficient. For another, the
systems also lead to completely new resource-saving business
models and processes.
Cross-divisional approach is most
promising
But to be able to meet the often ambitious environmental and
resource targets in the first place, the companies have to go beyond
isolated investments in hardware and software and address the
subject of green IT in a cross-divisional approach that integrates the
staff members. There is still much to do before such an ideal state
can be attained. Our survey underscores the fact that at the bulk of
companies the interface between IT and environmental management has not yet been established as a matter of course. Some 38%
of the companies say that they have appointed an environmental
officer. 32% of the companies have defined an overarching position
for budget responsibility for energy and IT.
"Green by IT" opens sizeable scope
for action
Far beyond ―green in IT‖, ―green by IT‖ in particular opens sizeable
scope for economic and ecological action. 26% of the companies
consider themselves compelled by operational requirements to
implement green IT projects. Companies in different sectors hope
that intelligent IT systems can not only help them to counter cost
pressures, but in the best of cases also enable them to offer their
customers new goods and services and their staff members more
flexible job models in the competition for top talent. Promising fields
in the ―green by IT‖ segment include, for example, smart agriculture,
smart buildings, smart grid, smart logistics, smart services and
dematerialisation. These examples save resources by substantially
different potential amounts via various levers – from saving paper by
digitising documents right through to saving mineral oil deposits by
reducing commuter traffic.
10
18
See Heng, Stefan (2010). Broadband infrastructure: The key factors are the
regulatory framework, market transparency and risk-sharing partnerships.
Deutsche Bank Research. E-conomics No. 77. Frankfurt am Main.
January 13, 2011

19. Green IT: More than a passing fad!
Emphasise best-practice examples in
advisory practice
The resource-saving potential that can be tapped thanks to green IT
is huge and totals roughly eight times the emissions of the
information and communication industry itself. Practical advisory
experience shows that when green IT is implemented at companies,
promotion programmes should focus more attention on best-practice
examples. Such examples can help in advisory practice to break
down the complexity of proposed projects. Gearing project planning
to positive examples makes it easier for many companies to
estimate the concrete impact of their investment in green IT.
Economic efficiency is decisive for
realisation
Considering the ecological expectations that often go hand in hand
with the subject of green IT one should not forget that companies
are more likely to implement ecologically relevant innovations if they
also pay off economically. Our survey highlights the general
importance of the economic efficiency of such projects. A number of
companies say the major hurdles thwarting the implementation of
green IT projects lie in investment risk (43% agree strongly or very
strongly), stakeholder consent and the as yet still inadequate degree
of in-house experience with green IT projects (33% each). On this
note, 60% of the companies in our sample see the amortisation
period of green IT projects in a depreciation framework of up to four
years. This also points to the conflict between attaining short-term
returns on investments and installing long-term projects.
Support the advancement of green IT
projects
Thanks to the positive externalities of green IT, government
promotion is certainly warranted for a limited period. The government can support the advancement of green IT projects with a
broadly based set of instruments ranging from direct subsidies and
adjustments to the legal framework alongside the formulation of
political objectives and recommendations, right through to the
establishment of public services and the promotion of
communication infrastructures.
Stefan Heng (Deutsche Bank Research, +49 69 910-31774, stefan.heng@db.com)
January 13, 2011
19

20. ISSN 1619-3245
Innovative capacity in the aftermath of the crisis:
German companies banking on R&D, No. 80 ........................................................................... November 12, 2010
Majority of bank customers in Germany do research online:
Findings of a clickstream analysis, No. 79 .................................................................................... October 14, 2010
Enterprise 2.0: How companies are tapping the benefits of Web 2.0, No. 78 ............................ September 8, 2010
Broadband infrastructure: The regulatory framework,
market transparency and risk-sharing partnerships are the key factors, No. 77 ................................. May 26, 2010
E-invoicing:
Final step of an efficient invoicing process, No. 76 ............................................................................... May 3, 2010
Age-appropriate information technology on the advance:
Putting paid to olden times, No. 74 ............................................................................................ December 29, 2009
Brave new firms:
High-tech entrepreneurship in the United States, No. 75 ............................................................ December 9, 2009
Online advertising in Germany
Ray of light in the crisis, No. 73 ................................................................................................. November 25, 2009
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