Green IT: Notes from Australia's CIO Network

analysis For some early adopters of Green IT, this trend is now assuming a business as usual status. Followers, on the other hand, may struggle to fund Green IT initiatives in the current economic environment.

cio network
(Credit: CIO Network)

Although in the next 12 months sustainability is likely to remain in the top five organisational priorities, lack of benchmarks, standards and regulations make it difficult for companies to translate intentions into actions.

Australian businesses that embarked on the Green IT journey at early stages of this movement have both cut their carbon footprints and made positive changes in their staff environmental awareness.

"Our firm has been moving proactively towards reducing its carbon footprint for many years. The corresponding growth of environmental awareness and activities amongst our people is clear," says Gwenyth Taylor, project management office manager at Allens Arthur Robinson.

"Along with encouraging such activities as participation in Ride to Work day and Earth Hour, firms can inspire their people by demonstrating their commitment to the environment, carrying out initiatives such as using green power, saving and using recycled paper, reducing water use and providing Met tickets for use in Melbourne's CBD, rather than taking taxis."

"While many Green IT issues may not be readily understood, such as server virtualisation and blade servers, many are simple to understand, such as vendor buy-back schemes for all old PCs, or having reduced paper use by 45 per cent over three years."

Followers of the Green IT trend are now facing harsher scrutiny of their projects as priorities become focused on cost-cutting targets.

"By broadcasting the importance to the firm of its environmental impact and those of its suppliers, and making staff aware, and proud, of their firm's achievements in the area, firms can markedly enhance staff morale and loyalty. As an added benefit, we have found in many cases we are also saving money."

In recent years, "Green IT"-labelled initiatives have enjoyed a high priority status, central funding and sponsorship by companies' leaders. Importantly, these programs have resulted in the development of various green policies that have gradually proliferated through corporate IT procurement and property management strategies.

CIO Network research suggests that although in the next 12 months sustainability may slip on the priorities list, it is likely to remain in the top five due to a combination of drivers. The expectations of customers, business partners and staff are likely to maintain the pressure on companies to embrace the green approach to their products and services from both manufacturing and operational perspectives. International trends may further strengthen the sustainability cause in Australia.

In the current economic environment, however, followers of the Green IT trend are now facing harsher scrutiny of their projects as priorities become focused on cost-cutting targets. Companies may struggle to find sufficiently appealing return on investment in Green IT initiatives. Naturally, there is little appetite to experiment with emerging technologies.

Additionally, due to the lack of industry benchmarks, regulations and standards that are credible, easy to understand and apply, organisations have to reinvent a wheel to measure and baseline their carbon footprints.

Strategies for overcoming challenges Green IT currently faces were discussed at a peer forum recently organised by CIO Network. This event brought together representatives from different industries, including financial services, manufacturing, government, utilities and professional services, and was led by Mary Hawkins, a former leading technology executive in the financial services sector. Lessons discussed at the forum included:

  • ICT managers should align business cases for their Green IT projects with other corporate strategies and their companies' values, instead of focusing on cost savings alone.

  • Developing an environmental risk assessment framework for projects and embedding it in IT governance processes can assist in making eco-friendly technology decisions and reduction of ongoing techno-pollution of the corporate environment.

  • Whilst such technologies as virtualisation, cloud computing and blade servers can contribute to the green agenda, higher priority should be given to initiatives targeting changes in work practices and processes. The focus should be on making changes towards more eco-friendly business culture.

  • Inclusion of green requirements into request for proposal documents, outsourcing contacts and an overall vendor management strategy is essential for the transparency of the IT-related carbon footprint.

  • To sum up, rather than green-washing their ICT (whether in-house or vendor-supplied), organisations may adopt a more integrated approach to eco-friendly business — the one that should bring together product development, distribution, property management, procurement, HR and, of course, ICT.

To address the issue of benchmarking, The CIO Network is currently researching the adoption of Green IT by Australian businesses. The research will provide an insight into such questions as which Green IT initiatives have a positive return on investment, and overall progress against most popular Green IT initiatives (including, servers and storage virtualisation, paper management, datacentre consolidation, power management, etc).

The CIO Network is a peer-to-peer forum for Australian ICT end users, which holds events and provides services with the aim of assisting in CIO decision-making through knowledge sharing, in a vendor-free environment.

These summary notes by CIO Network research director Leila Abbasova are published as part of a collaboration between The CIO Network and ZDNet.com.au and stem from a recent event the group held on Green IT issues.

Talkback 4 comments

    Cost reductions will be a critical driver too Turlough Guerin -- 14/01/09

    This is an that needs to be addressed with some urgency. With energy costs set to increase, green IT principles need to be considered in business strategy which includes IT.

    A survey I ran on a recent blog suggests communication and education of IT departments is now a critical issue for large IT-based comapnies to address: http://www.nowwearetalking.com.au/blogs/green-files/whos-paying-for-it

    Cost reductions v. important Renai LeMay -- 14/01/09 (in reply to #320120940)

    hi Turlough,

    in my conversations with CIOs, it feels like to me that Green IT is somewhat of a touchy-feely issue -- interesting to be on board with, but not really that important per se yet.

    I feel it will get traction when it aligns with primary business drivers -- eg cost reductions, as the CIO Network research suggests.

    Cheers,

    Renai LeMay
    News Editor
    ZDNet.com.au

    Carbon foot print reduction is in my priority list Manish Gaur -- 15/02/09

    Reducing carbon footprint and aligning IT projects with firm's sustainability strategy is something we all need to start thinking about if we haven’t yet. Agenda for this FY and many more years to come will be to develop a roadmap to bring a sustainable IT environment aligned with firm’s existing or newly defined carbon footprint reduction policy. Green IT environment is something is in my priority list and hopefully be on yours soon. Finding out what is “working” in your organisation for the last 10 years and is being responsible for large amount of carbon emission is something I would see as a starting point. How many employees are clicking print button as a human behaviour is not what you would want to (or I would suggest you to) concentrate on straight away. What I found more interesting is print impressions on every click. Playing smartly and trying to reduce print impressions will be very well aligned with IT and IT manager's capability rather than trying to change organisational behaviour in a day, not which I would suggest anyone to go for. Another important agenda item in my list is virtualisation, step one is to position yourself against industry standard prior to sign any hardware capex, you may not need big virtual farms. What is available as service is also worth while to look at! I would say
    "YES/NO" to outsourced hosting environments dependent on your IT infrastructure. Third item (at higher maturity level), could be an enterprise content management with business process workflow management tool will allow organisational change agents to bring required changes within human behaviour to work online rather than printing hundreds of pages of reports everyday.

    Best Regards, Manish Gaur

    Do you guys know what you are talking about? Anonymous -- 25/05/09

    Honestly; this is just a load of crap. Most of the comments here have MBA stench. I am sorry guys, you do not know what you are talking about. Independent and creative thinking is required to solve problems in question. Yet all you offer is repetition which you probably read somewhere or heard from someone else. BTW: the print impression comment here takes the crown in "I have no idea what I am talking about" category.

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