Is Green the new black?

Jose Iglesias, vice president Global Solutions at Symantec, told CRN that government legislation is the main factor compelling organisations to be ‘greener’. He also claimed that Australia is on par with the rest of the world when it comes to adopting Green policy.

“The unique thing about Australia is that it is embracing world standards to drive down carbon emissions,” he said. “Australia took the initiative with the Kyoto Protocol and the willingness to embrace such an important agreement says a lot.”

The more cynical among us will point out that breaching government legislation has a financial cost, which supports the original argument that enterprise will always look after its bottom line. Carbon credits, penalties for ignoring environmental regulations and the rising cost of energy are pushing Green issues higher up the agenda of C-level executives.

According to Philip Carter, head of IDC’s APAC Green IT practice, IT executives are expecting vendors to take greater responsibility in the arena of Green IT. Carter’s claims are validated by an IDC poll that revealed 81 percent of organisations believed the Green policy of IT suppliers would become ‘much more important’ over the next few years and may influence vendor selection. Carter also predicted the local channel as a whole will increasingly focus on internal Green policies and practices.

“In most cases, the first phase of the adoption of Green IT will be about ‘Lean IT’ – focusing on improving energy efficiency of IT equipment within the data centre to reduce costs in the face of rising electricity costs,” said Carter. “We also see governments playing a key role here in the region by way of introducing regulations for energy efficiency and e-waste to expedite organisations down this path.”

IBM conducted a study late last year that examined the attitudes and practices of Australian enterprise towards Green IT. The survey revealed 62 percent of respondents cited genuine concern for the environment as the primary reason for implementing Green policy. Corporate reputation and rising energy costs were also mentioned as motivating factors.

“Since early 2007 there’s been an explosion in interest surrounding Green IT,” said Malcom Mackay, spokesperson for project Big Green, IBM. “Driving changes in the market are a number of things – a sense of social responsibility, expectations of the greater community and a greater understanding of the environmental impact of IT.”

He added that corporations had discovered a marketable connection between implementing more efficient and cost-effective business practices and taking an eco-friendly approach, leading many to adjust their go-to-market strategy.

“People are starting to look at technology from the perspective of the environment. They want to incorporate what is being done with a sense of corporate responsibility,” said Mackay. “Green practices have been around for ages – IBM, for example, has had an environmental strategy since 1971 – there is just a greater awareness at the societal level now.”

According to Mackay, being a leader in the Green movement provides greater leverage in setting future corporate environmental standards.

“Theoretically, there must be some regulatory structure; however there is also the opportunity to self-regulate. Early adopters will differentiate themselves and set the standards,” he said.

Mackay highlighted the efforts of The Green Grid, an international consortium focused on improving the energy efficiency of data centres and corporate IT practices. IBM views membership to the group as a proactive contribution to the Green cause as it promotes the adoption of energy efficient standards, processes, measurements and technologies.

How does the IT industry compare?

Alan Monument, senior consultant, CA claimed the current Green IT movement may be likened to the quality certified movement of the 1990s, which most notably impacted the whitegoods industry.

“In the near future our organisations will probably be allocated an energy efficiency rating to demonstrate exactly how Green we actually are,” said Monument.
In 1992, the US Environmental Protection Agency launched Energy Star, a voluntary labelling program, designed to promote and recognise energy efficiency in monitors, climate control equipment and other technologies. It resulted in the widespread adoption of sleep mode among consumer electronics.

In comparison to other industries, how does IT in Australia rate when it comes to conceiving, developing and adopting Green standards?

According to the Department of the Environment and Water Resources, whitegoods are a major source of energy consumption and greenhouse gas emissions, accounting for around 40 percent of residential greenhouse gases. The energy efficiency labelling system in Australia was first proposed in the late 1970s, by the New South Wales and Victoria state governments. When raised with the appliance industry in 1982, there was resistance on two grounds: the program should be uniform nationally rather than risk different state approaches and it should be voluntary.

Although several states commenced mandatory labelling in the mid 1980s, it wasn’t until 1992 that a mandatory national labelling scheme was finally agreed to, and legislation in the last state and territory wasn’t passed until 2000. It took almost 20 years to achieve national consensus in the whitegoods industry, so how long will it take IT?

Faced with the possibility of a similar energy rating scheme to address the spiralling energy consumption of data centres, IT has been significantly more proactive in the Green space than most other industries – often pioneering environmental initiatives despite the absence of government mandates.

Mackay claimed the future of Green IT lies in embedding environmental policy within the infrastructure of all businesses. Green will no longer be a secondary consideration, rather it will be at the core of an organisation’s operations.

“Green will be an ongoing requirement,” said Mackay. “It will be important to be able to tell your Green story to customers. It will also be embedded in business practice and be viewed as a base requirement of doing business.”

While the publicity Green IT is attracting may waver in coming months and be overshadowed by a new fad, Mackay believes the groundwork has already been laid to ensure Green issues remain a priority to vendors and their partners.“

The issue is more public, there is a lot more information sharing, which is making an impact on the Green movement,” he said. “While I do see the hype dying down, the issue is here to stay.”