Green ICT

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Implementing environmentally friendly ICT practices 26 February 2008

Welcome
(8:00am) Paul Engelman Why go green?
(8:05am) Kent Davey ICT contract provisions for environmental purchasing and electronic record keeping (8:45am) Frank Zahra Understanding and minimising an organisations environmental footprint (9:25am) Paul Engelman Where do you start? (9:30am) Morning Tea
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The facts
Globally ICT generates 2% of the worlds carbon emissions (Gartner)
Australia's carbon emissions total 522.2 million tonnes annually (National Greenhouse Gas Inventory) In Australia, ICT generates carbon emissions of 7.94 million tonnes (or 1.5%) per year (ACS study)
Australia only has 0.3% of the worlds population yet produces 1.5% of global carbon emissions (VicSuper Carbon Count)

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Gartners top 10 Strategic Technologies for 2008

Green IT Unified communications Virtualisation

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The drivers, challenges and benefits

Drivers: Measurement/disclosure Regulation of emissions Taxation of emissions Trading schemes Social responsibility Sustainability Generational influences Cost savings

Regulatory influences

Customers

Investment community

Environmental footprint
Challenges: Carbon regulation will incorporate tracking of emissions from diverse sources. Lack of market pricing for carbon No real reporting standards or comparisons

Benefits: Reduction of GHG's, carbon emissions Increased use of recycled material Overall reduction in utilisation of natural resources Reduce energy consumption & costs Reduce disposal costs Comply with impending regulatory, monetary and trading schemes Enhance reputation and appeal to socially responsible customers, suppliers, employees and investors Attract investment

Employees

Supply chain

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What does a CIO actually think about this?

IBM and ACA research study (September 2007) 104 IT managers/directors, large Australian enterprises (>500 employees)
61% have environmental policy/strategy Mostly focussed on equipment disposal & reducing energy consumption 65% unaware of their energy usage 36% believe reduction of GHG's from ICT is high priority

Primary drivers for tackling emissions: Genuine concern for the environment Enhanced corporate reputation Rising energy costs
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ICT contract provisions for environmental purchasing and electronic record keeping
Kent Davey

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Overview
National Greenhouse and Energy Reporting Act

Government procurement policies

Environmental purchasing checklist ICT contract provisions for environmental purchasing Electronic record keeping
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National Greenhouse and Energy Reporting Act 2007

Commenced 29 September 2007 Establishes single, national framework for reporting by companies from July 2008 on: Greenhouse gas emissions Energy production Energy consumption

Foundation for Australian Emissions Trading System to commence no later than 2010
Commonwealth Department of Climate Change: National Greenhouse and Energy Reporting System Regulations Policy Paper (February 2008)
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National Greenhouse and Energy Reporting Act 2007 (contd)

Mandatory reporting for companies which exceed following thresholds:
2008/09
Greenhouse Gas Emissions Energy Produced

2009/10

2010/11+ Facility

125 KT
(1000 T)

87.5 KT 350 TJ 350 TJ

50 KT 200 TJ 200 TJ

25 KT 100TJ 100TJ

500 TJ
(1012 J)

Energy Consumed

500 TJ

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National Greenhouse and Energy Reporting Act 2007 (contd)

Companies will be able to register from 1 July 2008 Registration mandatory by 31 August following trigger year Reporting mandatory by 31 October following trigger year Estimated that 700 medium & large companies will be required to report
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Victorian Government
Environmental Purchasing Policy requires that all Departments:
include environmental considerations in:
procurement planning tender specifications tender evaluation

consider options to reduce environmental impact under:

WoVG contracts OSOAs

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Commonwealth Government Procurement Guidelines

Recognise that value for money is enhanced by promoting efficient, effective & ethical use of resources:
e.g. consider energy consumption, disposal costs

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Scenario: Green Co Pty Ltd Computer Supply & Support

Green Co Pty Ltd (Green Co) wishes to replace its ageing desktop computers Green Co has issued an RFT for the supply & support of replacement desktop computers Green ICT Pty Ltd has responded to the RFT offering to supply & support replacement desktop computers

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Environmental Purchasing Checklist for Computers

Tender information required from suppliers: Confirmation that Energy Star compliant Ability to upgrade % of remanufactured / recycled components Ability to return at end of lifespan for recycling Types of packing used for delivery Noise level during operation Weight
(Commonwealth Department of the Environment, Water, Heritage and the Arts www.environment.gov.au)

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ICT Contract Provisions for Environmental Purchasing

ICT Product Warranties ICT Product Recycling & Upgrades ICT Service Warranties Environmental Management System

Parties Meetings & Communications

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ICT Product Warranties

Energy Star: Product is Energy Star compliant

Power: Product complies with specified power consumption rates in different modes

Upgradeable: Product can be upgraded

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ICT Product Warranties (contd)

Components: Product is made up of specified % of remanufactured / recycled components

Recycling: Product is designed to allow recycling at end of lifespan

Specifications: Product otherwise complies with its specifications (e.g. weight, noise)

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ICT Product Recycling & Upgrades

Recycling: Supplier will accept return of product for recycling at end of lifespan if requested by customer Upgrades: Supplier will upgrade product if required by customer

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ICT Service Warranties

Products: Equipment / products used in supply of services will comply with environmental specifications

Legislation: Services will comply with applicable environmental legislation (e.g. hazardous substances legislation)

Specifications: Services will otherwise comply with their specifications

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Environmental Management System

Environmental Management System: Supplier must have an environmental management system which complies with AS/NZS ISO 14001:2004

Environmental Policy Compliance: Supplier must comply with its Environmental Policy

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Parties Meetings & Communications

Meetings: the parties may meet by teleconference / video conference where appropriate

Communications: Notices may be given electronically where appropriate

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Electronic Record Keeping

Electronic Transactions Laws
Company Financial Records Tax Records Court Evidence

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Electronic Transactions Laws

Commonwealth: Electronic Transactions Act 1999 Commonwealth legislation Victorian: Electronic Transactions (Victoria) Act 2000 Victorian legislation & common law

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Electronic Transactions Laws (contd)

Retention of Electronic Information: Reasonable to expect electronic information readily accessible in future Retention of Electronic Documents: Method of generating electronic document reliable means of assuring integrity of document information Reasonable to expect electronic document information readily accessible in future

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Company Financial Records

Corporations Act 2001 (Cth) s 286 Requires companies to keep written financial records for 7 years Companies may keep financial records electronically provided: Method of generating electronic document reliable means of assuring integrity of document information Reasonable to expect electronic document information readily accessible in future (Electronic Transactions Act 1999 (Cth))

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Tax Records
Income Tax Assessment Act 1936 (Cth) s 262A Person carrying on a business must keep records that explain all transactions
Acts Interpretation Act 1901 (Cth) s 25 Record includes information stored or recorded by means of a computer

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Electronic Tax Records

Taxation Ruling 2005/9 recognises storage of paper records in electronic form provided: Data Quality: true & clear reproduction Data Integrity: not be able to altered Accessibility: readily accessible by Tax Office Retention: retained for statutory period (generally 5 years)

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Electronic Tax Records System

Taxation Ruling 2005/9 recognises use of an electronic record keeping system provided: System Documentation: entire system must be documented Data Integrity: secure from unauthorised access & alteration Accessibility: readily accessible by Tax Office Retention: retained for statutory period (generally 5 years)

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Court Evidence

Original Hardcopy Documents: Best form of evidence at common law Highest evidentiary weight Electronically Imaged Documents: Usually admitted unless disputed by other party resulting in need for authentication (e.g. evidence as to data quality, integrity) May have lower evidentiary weight subject to authentication evidence

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Court Evidence (contd)

Computer Generated Documents: Victorian Evidence Act 1958 s 55B document admissible if establish following conditions:
Computer which generated document used to regularly store / process information for regular activities during period Kind of information in document regularly supplied to computer during period Computer operating properly during period Information in document derived from information supplied to computer

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Court Evidence (contd)

Computer Generated Documents
Commonwealth Evidence Act 1995 s 147 presumption document authentic if:
Document produced for business purposes (includes purposes involving government activities) Computer used at time for business purposes

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Court Evidence (contd)

Steps to assist with admissibility / authentication of electronic documents: Record details of process used to produce documents (including operator & date) Prepare & maintain system documentation Document & implement authentication (e.g. PKE) & security procedures Record details of system access, operation & maintenance Record details of information supplied to system Require witnessing of all signed documents where practicable

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Conclusion
Consider obligations under National Greenhouse and Energy Reporting Act 2007 (Cth) Include appropriate provisions in ICT contracts for environmental purchasing When keeping electronic records comply with electronic transactions laws and specific laws / regulatory requirements (e.g. Tax Ruling 2005/9) Take steps to assist with admissibility / authentication of electronic documents
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Questions?

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Understanding and minimising an organisations environmental footprint

Frank Zahra

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Understanding and minimising an organisations environmental footprint

From Holistic View Set internal recycling goals and objectives Buy energy efficient equipment Purchase recycled IT equipment Set power consumption guidelines Reduce water and solid waste generation

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Greenhouse gases (GHG's)

Direct Use of fuel/combustion, generating GHG's from company controlled processes (this is relatively low for organisations based on an office environment).
Indirect Arising from the supply of goods and services to the organisation through the supply chain. Tier 1 Those from direct suppliers (e.g. electricity, staff airline travel, outsourced logistics providers) Tier 2 Those from indirect suppliers (e.g. fossil fuel extraction costs)
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Largest GHG emitting sectors (Co2) (ASX200)

Food Products 2% Commercial Services & Supplies 2% Industrial Conglomerates 2% Electric Utilities 3% Multi-Utilities 4% Construction Materials 6% Other 13%

Metals & Mining 46%

Airlines 9% Oil, Gas & Consumable Fuels 13%

Source: Vic Super Carbon Count

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How do you measure the footprint?

From a practical perspective in ICT terms: Electricity usage; Paper and printing costs (including disposal); Equipment recycling and disposal costs.

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How can you reduce your footprint?

Overall measures: Rationalise and consolidate where possible; Reduce daily reliance on paper and hard copy; Focus on electricity minimisation.

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Applications
Rationalise and consolidate where possible; Less applications used means less servers required leading to lower power requirements.

Applications

Servers

Power

Environmental footprint

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Servers
Rationalise, consolidate and virtualise where possible; Less physical servers means less cooling and power requirements; Consider outsourced data centre housing to share cooling and power requirements as well as increase data centre processing utilisation (Note: Blades require 10-15 times more power than traditional servers).
Servers Power
Environmental footprint

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Desktop and notebooks

Maximise use of recyclable components; Thin client based technology; Energy efficient monitors. TV and monitors use similar technology Producer Responsible Organisation to manage end of life disposal.

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Power management policy

Active directory based settings to force minimised consumption during periods of inactivity; Software to automatically turn-off and turn on computers as required. Turn processor based power management ON for efficient utilisation of processing.

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Paper reduction
Fax to e-mail; Storage area networking; High and low availability disk management. Archiving and content management. Paper and consumables efficiency; Recyclable. Forced duplex / multiple page print. Consumables re-use arrangements.

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Convergence
VOIP; Single infrastructure layer for voice and data. Multi-function devices; Print. Scan. Copy.

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Establishing & maintaining an environmental policy

Determine your carbon footprint. Set your organisations environmental goal. Commitment to applicable legal requirements. Document / implement / maintain. Communicate internally / externally. Review objections / targets annually. Longer term planned internal audit reviews.

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Questions?

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What have we heard today?

The drivers are here now The regulations are coming Everyday legal aspects need to be considered Practical ICT measures can be undertaken

The appropriate use of ICT can provide a significant contribution to GHG reductions

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Where do you start and how can you maintain it?

Where do you start? 1. Identify IT assets 2. Profile consumption 3. Model scenarios

Offset

Measure

Assess

Set objectives

Avoid Reduce Switch

Sources: 1. VicSuper Carbon Count 2. EPA Victoria Draft Carbon Management principles

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Case study - News Limited

Goal to be carbon neutral by 2010 In the year to June 2006 generated 146,166 tonnes of carbon emissions Intends to cut carbon emissions by 20% over next 3 years (saving 30,000 tonnes per year) Will be making serious & sustainable changes to its business and providing employees with incentives to cut emissions Implementing a Green Procurement Policy encouraging business partners to address their own carbon footprints
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Thank you

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