GREEN IT Delivering Business Sustainability

ALISON O’FLYNN
July 2008
Business Sustainability
© Fujitsu Australia Limited 2007 CORPORATE PRESENTATION

Note: This is the text of the presentation. The slides with images and video ae also available:

• GREEN IT Delivering Business Sustainability (Slides)
• GREEN IT Delivering Business Sustainability (Video)

AGENDA

Our Global challenges

Our National challenges

Our Business challenges

Our IT challenges and opportunities

OUR GLOBAL CHALLENGE

Globally we need swift action

Budget 2 giga tonnes of carbon equivalents (Co2e) per annum

Actual 9 giga tonnes of carbon equivalents (Co2e) per annum

Australia is a late mover

Emissions trading already operates in 27 EU countries and 28 states in the US & Canada.

Learn and link globally

OUR NATIONAL CHALLENGE

“Delaying is – delaying now. It’s not postponing a decision, it’s making a decision”
(Professor Ross Garnaut – National Press Club address, 4th July 2008)

OUR NATIONAL CHALLENGE

Budget is 2 tonnes of Co2e per person

Actual is 28 tonnes Co2e per person

Our current climate is greatly impacted

Our neighbours are developing nations

Our economy in terms of trade will be exposed

Government Position

Reduce – GHG Emissions – 60% by 2050

Adapt – to the unavoidable changes

Shape – global solutions

OUR BUSINESS CHALLENGE

• Climate change is now recognised as a major business risk
“Whether you are convinced by the science or not, climate change is emerging as the big sleeper issue for company boards in 2007 and
into 2008”
(Australian Institute of Company Directors, Company Director, December 07 – January 08)

BUSINESS DRIVERS

Major Economic & Industry Disruption

• Regulatory
• Shareholder
• Value
• Profitability
• Reduced
• Carbon
• Footprint
• Operations
• Risks
• Leadership
• Community

OUR IT CHALLENGES

In 2006

Japan: Power consumption of IT equipment = 5% of total power consumption¹

US: Power consumption of data centers = 2% of total power consumption²

IT a large consumer of power in the office

Increases in power prices (16% by 2010)

PCs contribute 40% of ICT GHGs²

Total cost of ownership procurement - CAPEX vs. OPEX

PCs and Monitors 40%
Fixed line telecoms 15%
Mobile telecoms 9%
Lan & of f ice telecoms 7%
Printers 6%
Servers (including cooling) 23%

1. Japanese Ministry of Economy, Trade and Industry
2. EPA, US
3. Gartner, September 2007

OUR IT CHALLENGE

•Recycling law for IT assets only exists in few countries (800m PCs next 5 years)

Country in which recycling law is enacted
Country in which Fujitsu independently provides recycling service
-Reducing the environmental burdens “by “ IT solutions
- Reducing the environmental burden “of “IT itself

ROLE OF THE IT INDUSTRY

What is the role of the IT industry toward a low-carbon society?
To reduce environmental burdens for customers (Green IT)
To minimize environmental burdens caused by business operations

CASE EXAMPLE – TOYOTA MOTOR CORPORATION AUSTRALIA

SITUATION

In 2005 Toyota Australia developed a 5-Year Environment Plan, and in 2007 reported progress in their annual Sustainability Report

Toyota wanted to develop a strategy for Green IT to complement their vehicle production strategies.

Toyota needed to develop specific sustainability strategies for IT at their Corporate HQ to ensure that IT contributed to meeting the targets in their Environment Plan

OUTCOMES

After assessment, we worked with Toyota to develop a ‘Statement of Intent for Green IT’

We also proposed a Green IT vision statement for Toyota’s IT department.

The Statement will guide IT toward a strong contribution to Toyota’s Environmental Plan by:

Optimising Infrastructure

Managing Energy Use

Lifecycle management of IT assets

OUR APPROACH

We applied our Green IT Framework Phase 1

Using interviews and questionnaires we quantified alignment between the Toyota IT department plans and Toyota’s corporate sustainability strategy.

The scope included the extended IT environment as Toyota outsource to several providers.

VALUE TO THE CLIENT

Highlights the key role IT will play in meeting Toyota’s corporate environmental objectives, including carbon emission reduction targets

Allows Toyota to commit to develop a detailed strategy for Green IT including targets and KPIs.

Communicates Toyota’s intent to extend environmental measures to its IT suppliers and partners.

TOYOTA MOTOR CORPORATION AUSTRALIA – CIO LEADERSHIP

Toyota Australia is set to be the first in the company's Asia-Pacific region to institute a green IT policy

Wheels turn for Toyota's green push
Tuesday, 15 July 2008 | The Australian Financial Review
“Its an opportunity for an IT department to move from a more
reactive approach.”
“It builds on the businesses existing environmental strategies
but will also outline a framework for collecting information on
emission and carbon trading.”
“Toyota Australia will be the first Asia-Pacific affiliate of the
Japanese motoring giant to put in place a green information
technology policy.”
“The policy proposes a reduction in the number of energy-hungry
computer servers the subsidiary operates through the use of
virtualisation technology as well as other means to cut the
amount of electricity its computer systems consume.”
“It also proposes to direct computer hardware, software and services purchases towards suppliers with strong green credentials and will govern the disposal of IT equipment that has reached the end of its life.”

FURTHER INFORMATION

Contact: Alison O’Flynn
Email: Alison.o’flynn@au.fujitsu.com
Phone: 0419 872 496
Website: http://www.fujitsu.com/au/