'Green IT' and Sustainability Global Scenario and the Indian Story Date:   Tuesday , March 06, 2012 The last decade is a witness to the emergence of Green IT as one of the most globally adopted practices. This surge can perhaps be attributed to the fact that our consumption of energy resources is by far exceeding the produce of renewable and non-renewable sources of energy and this crying need to turn energy efficient is now resonating loud across all quarters, demanding action. With the term ‘Green’ now fast turning into a synonym for a responsible way of operating, organizations are keen on adopting it in their policies and operating procedures and branding themselves as ‘Green’. While there are no doubts on the degree of environmental consciousness globally, what remains to be assessed is that whether the Green IT concept in India has managed to earn some serious roots and champions for the cause within the organizations or is it just lingering at a superficial level. Today’s information systems are a complicated mix of people, processes, hardware, software, network and policies and one reason for the unprecedented data explosion is the emergence of new business models. There is an increased thrust by governments and organizations to go the green way. This is evident from the number of organizations emphasizing on terms like green IT, green policies, renewable and clean energy, sustainability etc. As a matter of fact, a number of them also highlight their contribution to a sustainable environment in the form of operational and energy gains. The concept which originated from developed nations is slowly becoming popular among developing economies, including India. A large number of companies have initiated Green IT as a part of their Corporate Social Responsibility (CSR) strategy. There are many success stories about the business benefits derived from Green IT implementation. But whether Green IT is a top priority for Indian organizations or it remains a good to have initiative is yet to be seen. What constitutes Green IT? While the word ‘Green’ carries a more expansive connotation, the term 'Green IT' encompasses all activities related to IT deployment and usage in a way that minimizes the impact on the environment. In other words, Green IT conceptually aims to minimize resource consumption, typically power which is generated from fossil fuels. Low resource consumption not only reduces carbon emission but also helps an organization increase its bottom line revenues. Green IT practices involve developing strategies and solutions which are environment friendly and economical to the organization. These deployments could be categorized as data center/server virtualization, desktop virtualization, storage virtualization, data center power and cooling technologies, insulation techniques, printing and paper usage anagement and power management tools for PC’s and monitors. Drivers of Green IT Researchers and practitioners have identified a number of factors behind the growth of Green IT. These could be categorized as economic, regulatory and stakeholders related. Over the last few years, unit cost of electricity has been increasing and if reports are to be believed, a further increase in power tariffs is inevitable. India has one of the highest industrial electricity rates in the world exceeding those in the U.S., China and most developing countries (Rao et al., 2009). Further, the slowing down of the global economy has resulted in tightened IT budgets forcing CIOs and decision makers to think of ways to reduce costs. In many countries there are strict government guidelines and legislation pertaining to optimizing the usage of IT resources. For example, in Australia the Green IT initiatives are driven by carbon-emission reducing legislation and a carbon tax is expected to be implemented by next year. Further, consumers’ demands and pressure from society at large also drives Green IT implementation. Organizations to preserve their brand value and CSR goals treat stakeholders demand seriously. Watson (2008) believes that companies are putting a higher premium on "softer elements" such as brand value and meeting corporate social responsibility goals as compared to positive financial gains. Global adoption trends and Indian Scenario Green IT deployments in developed nations have far exceeded the developing nations. This is evident from research reports on Green IT implementation across global markets. In one such study by Ovum entitled ‘Green IT deployments across Global Markets’, the number of organizations using Green IT grew to 73 percent in second-half of 2010 from 68 percent in the first-half. This survey involving CIO’s and IT decision makers across Europe, United States, Middle East and Australia also found that by 2012, 80 percent planned to deploy Green IT (Guan, 2011). As per a recent Fujitsu report 2011 "Green IT: The Financial Services Industry Benchmark," which compares the Green IT maturity of financial services institutions in U.S., UK, Australia and India, Indian financial services institutions are below the all country average in all areas of Green IT. The findings are in line with a 2010 Gartner poll which found that just 15 percent of Asian firms had plans to launch Green IT projects in near future compared to 40 percent of US and 58 percent of European companies. Another study by Green ICT Consortium on Hong Kong IT professionals found that just 38 percent of firms are implementing such a strategy, compared with 81 percent in North America (Clark, 2010). The earlier claims that the interest towards green IT has been on upsurge in Indian organizations has not become a reality. However, India is poised to make significant investment in energy conservation. This is evident from a recent Gartner report “Hype Cycle for Green IT and Sustainability in India, 2011” which reports that by 2015, India’s spending on Green IT and sustainability initiatives will double from $35 billion in 2010 to $70 billion in 2015 (Gartner, 2011). This trend would be most visible in ICT Industry, banking and financial services, hospitality, manufacturing, pharmaceuticals etc. The way forward There is a strong business case for Green IT – reducing resource utilization and promoting corporate image. At the user level, there is a need to create awareness about the importance of Green IT. The corporate sector needs to pay a crucial role in sensitizing all its stakeholders about the relevance of Green IT strategies. One area that needs greater attention is the development of guidelines around e-waste generation, handling and disposal. In the absence of a regulatory framework in India, e-waste disposal has traditionally taken place through regular garbage collectors who simply dismantle or burn the waste. To counter this problem, HCL Infosystems introduced the 'Green-Bag' campaign aimed at providing users a free e-waste take back and recycling service. In 2009-10, the company collected and recycled 73092 kg of e-waste (HCL, 2012). The government’s role will be to develop guidelines around responsible IT usage and disposal, and incentivizing enterprises to promote the concept. Gopalratnam (2011) believes that government policies that support use of green products, services and processes along with provision for tax rebates can motivate organizations to adopt Green IT. In the long run, the real success will depend on the awareness level and attitudinal change demonstrated by the stakeholders. Sources: Clark, R. (2010), “The Green IT bandwagon rolls on, Green Channel”, Enterpriseinnovation.net (Jan 2010); Gopalratnam, V.C. (2011), “CleanTech - Green IT for a Healthier Environment”, Silicon India; Guan, L. (2011), “Green IT becomes valuable to the bottom line”, GN, August/September 2011; HCL (2009), “Internal audit reports on the quantity of e-waste collected and recycled”, hclinfosystems.in/hclesafe_audit.htm; Gartner Report (2011), “Indian Green IT and Sustainability spend to reach $70 billion by 2015”, Hype Cycle for Green IT and Sustainability in India, Gartner.com, Rao, N., Sant, G. and Rajan, S. C. (2009), “An overview of Indian Energy Trends: Low Carbon Growth and Development Challenges”, Prayas, Energy Group, Pune, India; Watson (2008), “Are Businesses Getting Greener?”, CIO Insight, Cioinsight.com The article has been co-authored by Pallavi Dhyani, Business Analyst, NIIT