Sustainable IT Reducing Carbon Footprint and Materials Waste in the IT Environment Lecture 1 Sample Presentation Developed by: Sponsored by:

Sustainable IT

Reducing Carbon Footprint and Materials Waste in the IT

Environment

Lecture 1 Sample Presentation

Developed by:

Sponsored by:

Lecture 1 Sample Presentation Presentation Content

• In this sample presentation for Lecture 1:−Drivers of Sustainable IT for customers

−Benefits of product service systems for customers

• For additional information, including:• Drivers of Sustainable IT for vendors

• Benefits of Sustainable IT for vendors

• See:−The Natural Edge Project – Sustainable IT: Reducing

Carbon Footprint and Materials Waste in the IT Environment, www.naturaledgeproject.net/SustainableIT.aspx

Sustainable IT Introduction

• Sustainable IT: multi-component approach to establishing and sustainably operating an IT business function

• Survey: 80% of IT decision makers believe that implementing Sustainable IT in their organisations is important.

• Barriers:−51%: cost

−25%: complexity of implementation and maintenance

−21%: potential disruptions to current IT systems

Sustainable IT Introduction

• Challenge: Find a Sustainable IT solution that−Addresses barriers

−Optimises costs

−Minimises negative environmental impact

• Solution: Use a combination of−Product service systems

−Sustainable IT products

Sustainable IT Product Service Systems

• Holistic, end-to-end IT solution for large users

Stage Vendor Customer

Planning

Preparation

Commissioning

Operation

Decommissioning

End-of-contract

End-of-life

Sustainable IT Product Service Systems

• Vendors maintain ownership and stewardship

• Customers pay per contract period• Outcomes

−Standardise IT operations

−Release human and financial resources

−Significantly streamline information access, storage and support operations

−Eliminate the risk related to pollution and waste regulations and market expectations

Sustainable IT Product Service Systems

• Summarised benefits to customers−Improve service levels to end users, which in

turn leads to further increases in productivity

−Decrease the time to deploy and manage technology

−Reduce management complexities

−Lower total cost of ownership

−Leverage a greater return on assets

−Build a more agile end-user computing environment that enables faster response to change and opportunity

Sustainable IT Sustainable IT Products

• Items of client and data centre equipment−Resource efficient to manufacture

−Resource efficient to transport

−Resource efficient to operate

−Low-to-no adverse human health impacts throughout lifecycle

−Low-to-no adverse environmental health impacts throughout lifecycle

Drivers of Sustainable IT

Drivers of Sustainable IT Business Competitiveness

• Business relies on IT to improve competitiveness−IT technologies

−E-business applications

−Mobile technologies

• IT systems must support business operations by providing the right services

Drivers of Sustainable IT Asset Complexity

• IT systems must support business operations by having the flexibility to adapt to new demands

• IT business tools can:−Complicate IT asset management

−Add substantial cost

−Increase system downtime

• Example: 55% organisations surveyed were unable to undertake business improvement projects because their IT systems were too rigid and complex

Drivers of Sustainable IT Market Forces

Un-serviced productownership

Customer preference

Product service

Systems

•Post-material lifestyles •Mass customization

Business preference

•Customer orientation•Relationship marketing•Customer retention•Lean production•Efficient use of capital

•Core competencies•Outsourcing•Increased importance of shareholder value•Increased importance of stock market value

Market developments

•Saturated markets•Disintegration of industry boundaries

•The information economy•Blur between products and services

Drivers of Sustainable IT Legislation

• Many countries are adopting or proposing legislation that encourages Sustainable IT −United States

−Canada

−Mexico

−China

−Taiwan

−Japan

−Korea

−European Union

Drivers of Sustainable IT Legislation

• Impacts on e-products:− Waste volumes

− Toxicity

− End-of-life take back

− Recycling

− International transportation

Drivers of Sustainable IT Legislation

• Australian snapshot−National: Yet to enforce e-product end-of-life

take back

−State: Only ACT bans computer waste to municipal landfill

−Voluntary: Product stewardship initiatives are in development by the peak electrical and electronic industry associations

Drivers of Sustainable IT Legislation

Lack of legislation and regulation

Australia is a laggard in Sustainable IT

Delay in adopting legislation and regulation

Competitive advantage for early-adopters ahead of legislation

Drivers of Sustainable IT Environmental Pressures

• 20-50 million tonnes of e-waste worldwide annually

• The volume waste e-products in municipal waste is growing 3 times faster than any other type of waste.

• Short-life e-products are most influential on waste growth−IT products

−Mobile phones

Drivers of Sustainable IT Environmental Pressures

• Computer sales:−302 million in 2008 alone

−First billion total sales (achieved 2008): 27 years

−Second billion total sales: 7 years

• Computer operating life:−1997: 4-6 years

−2005: 2 years

• Computers at end-of-life−75-80% are landfilled

−20-25% are stored or recycled

Drivers of Sustainable IT Environmental Pressures

• IT products are toxic• Very few of the 1000 toxic substances,

other than plastics, are removed before landfilling

Elements Other Plastics

Arsenic Cadmium Mercury Brominated organics

PVC

Antimony Copper Phosphor Phthalate esters

Brominated flame ret.

Barium Hexavalent chromium

Tin PBDEs Chlorinated flame ret.

Beryllium Lead PCBs Phosphorous-based flame ret.

Drivers of Sustainable IT Social Pressures

• Toxic substances can be released into the industrial and natural environments at all stages of processing, operation and retirement

• Toxic substances can result in negative impacts on humans and other organisms.Suppression of immune system Disruption to endocrine systems

Carcinogenic Damage to reproductive systems

Cardiovascular disease Damage to DNA

Respiratory tract irritation Damage to central nervous system

Skin infection Damage to blood system

Mortality Damage to major organs

Drivers of Sustainable IT Environmental and Social Pressures

Vendors have expertise and experience

Better control over environmental and social impacts

Benefits of Product Service Systems

Benefits of Product Service Systems Economic Flexibility

Investment is spread out over the contract period

No large initial investment is required

Financial resources are freed for other activities

Benefits of Product Service Systems Economic Flexibility

• Spreading out the investment yields:−Improved purchasing power

−Easier financial forecasting

−Tax benefits

−Immunity to interest rates

−Improves access to loans and overdrafts

• Upgrade at low immediate cost whilst not having to wait to pay off their current offerings

Benefits of Product Service Systems High Return on Investment

• Lower total cost to the customer

High return on investment

Substantial medium- and long-term cost savings

Benefits of Product Service Systems Better Service Performance

• Compared to engaging multiple vendors, a single-source solution minimises:−Delays

−Administration costs

−Complexity

• Customers perform better• Customers can use freed human resources

to concentrate on their core business or expansion

Benefits of Product Service Systems Better Service Performance

• Example: Survey of six large companies• Sectors

−Manufacturing

−Banking

−IT

−Public

• Performance enhancements−Higher quality of service

−Greater efficiency through standardisation

−Better optimised processes

−Automated processes

Benefits of Product Service Systems Better Service Flexibility

• Customer only pays for the products and services required at the time−Expansions

−Downsizing

• Facility-wide upgrades are:−Regular

−Fast

−Uniform

Benefits of Product Service Systems Less Risk

Rate of new technologies development

Time for proving reliable

? Markets are somewhat unpredictable

Benefits of Product Service Systems Less Risk

• Customers share the technological and economic risks with vendors.

• Vendors’ expertise enables more accurate risk assessment and comprehensive asset management.

•Customer risk x Vendor risk = Overall risk

Benefits of Product Service Systems Lower End-of-Life Management Costs

• Product end-of-life management costs−Collection

−Remanufacturing

−Recycling

−Disposal

• Economic incentive to reduce adverse environmental and social impacts from end-of-life products

Benefits of Product Service Systems Lower End-of-Life Management Costs

• Example: Implementing EU WEEE directive• The costs of implementation are lower than

initially expected

Country Laptop Computer

Desktop Computer

Inkjet Printer

LaserJet Printer

Flat Screen Monitor

Lowest costs

Germany 0.07€ 0.38€ 0.12€ 0.43€ 0.29€ Spain 0.20€ 0.50€ 0.18€ 0.75€ 0.81€

Highest costs

Belgium 1.65€ 2.48€ 1.65€ 1.65€ 4.96€Switzerland

6.00€ 6.00€ 3.00€ 4.00€ 6.00€

Benefits of Product Service Systems Lower End-of-Life Management Costs

• Additional cost reductions−Products are easily traceable

−Collection is scheduled

−Process volumes are large

−Expert management

−Expert optimisation