Green For Green: Aligning Business, Technology and the Planet

With the dialogue about climate change increasing, businesses look to their CIOs to take action and glean the benefits gained from “doing good” — improved corporate reputation and financial gains.

As CIOs increasingly become visionary leaders within organizations, they must consider global issues as they align their IT infrastructure with their business goals. The biggest global issue confronting businesses today is the impact of climate change. Above being singled out as culprits of emitting high carbon levels through information and communications technologies, businesses have the power and the means to drive positive action. In the last five years, the discussion of the environment has moved from political think tanks to corporate boardrooms and unless CIOs emerge as the organizations’ strategists, this highly charged issue can cost them their jobs.

Why is being “green” the CIO’s business? Gartner research has found that 2 percent of global carbon emissions are derived from powering IT and communications equipment. Forward-looking companies are taking immediate action to address climate change issues to prepare for imminent government mandates, for economic benefits, and to build and preserve their reputation as socially responsible. It will be critical for any business’ bottom line.

ECONOMICS
Implementing, managing, and operating an IT infrastructure presents a large financial strain on any company. Purchasing and running low heat, energy-efficient equipment is financially beneficial. This equipment will less likely malfunction, and long-term costs associated with power and cooling will be drastically lower. Even the initial cost of upgrading to energy-efficient equipment will be returned in energy and maintenance savings.

In addition to skyrocketing energy prices, the Department of Energy’s National Energy Technology Laboratory estimated power interruptions and disturbances cost the U.S. electricity consumer at least $79 billion per year, and a single recent rolling blackout caused an estimated $75 million in losses in Silicon Valley alone. Realizing the cost and urgency of this situation, America’s largest innovators are taking the matter into their own hands.

These companies are committed to addressing the issue of climate change through internal efforts and by banding together to form new “green-focused” organizations, such as:
 

• The Green Grid: a consortium of information technology companies and professionals seeking to lower the overall consumption of power in data centers around the globe
• Climate Savers Computing Initiatives: a nonprofit group of eco-conscious consumers, businesses, and conservation organizations
• Sustainable Silicon Valley: a collaboration of businesses, governments, and nongovernmental organizations that are identifying and addressing environmental and resource pressures in the valley
• Business Council on Climate Change: a partnership of San Francisco Bay Area businesses committed to reducing greenhouse gas emissions and advancing corporate environmental leadership

These national and local organizations are committed to raising awareness and implementing a new standard of business. They are also driving financial investment in the cause and—most importantly—increasing public awareness.

REPUTATION
Corporations that are leading the charge for responsible innovation are updating their bottom line, which integrates a commitment to reducing their environmental impact into their core value proposition. Publicized investments of time and money are being made to reduce emissions from IT and promote a green image, which directly impacts the bottom line not only for the member company, but also for its customers, partners, and vendors. These organizations are promising to partner and deal exclusively with companies that adhere to similar policies and practices, encouraging businesses to amend their ethical policy and green image or risk partnerships and sales efforts. The task of reducing the environmental footprint and developing the company’s green reputation thus falls first to the CIO.

Businesses do not have to make a financial commitment to actively improve their reputation and combat climate change. CIOs can work to build a green reputation by examining the company’s infrastructure, assessing internal best practices, and updating policies. For example, pledging to use only recycled and reusable hardware components as well as energy-efficient products, and reducing water, energy, and waste are simple ways to make a difference and build the company’s reputation to succeed in an increasingly green market.

GOVERNMENT INCENTIVES
Although going green holds strong economic benefits and boosts a company’s reputation, a third reason to green a company also looms. We already can see increased carbon-related regulations and fiscal solutions for corporations to combat climate change. Recent draft legislation coming out of the House Committee on Energy and Commerce has an entire section aimed at addressing energy consumption in the data center.

Specifically relevant to the CIO, a section of the “Energy Independence Bill” will help data center operators—with the help of the Department of Energy (DOE) and the Environmental Protection Agency (EPA)—to calculate energy efficiency through specifications, benchmarks, and measurements, and devise a road map to reduce emissions and costs. The program will reflect the data center’s total energy consumption. Among the factors considered will be the performance and utilization of servers, data storage equipment, and HVAC systems, as well as the adoption of software for virtualization and data management techniques.

Naturally, this will fall into the role of the CIO, who will be tasked with ensuring the company’s IT infrastructure is compliant with any green regulations. Although currently voluntary, preparing early for this legislation can only positively impact a business.

As the CIO manages the company’s assets of people, processes, and possessions, the environmental impact must also be considered at every level. Rapidly shifting corporate standards demand a new type of consideration, and early adoption of a green attitude and practices is the only way to lay a positive foundation for future business growth.

Based in San Francisco, Rebecca Geller helps companies develop and publicize their social responsibility and green practices as a key driver to business success. She can be reached at Rebecca.Geller@gmail.com.