0% found this document useful (0 votes)
29 views40 pages

Sustainable IT Report

Uploaded by

christy.henitha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
29 views40 pages

Sustainable IT Report

Uploaded by

christy.henitha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 40

Sustainable IT

Why it’s time for a


Green revolution for your
organization’s IT
Introduction
As organizations around the world look to balance organizations with annual revenues in excess of
their growth objectives with the need to build USD1 billion to understand their outlook when it
sustainable businesses, it is important to ensure that comes to sustainable IT. We also interviewed senior
balance extend to the use of technology as well. IT executives, sustainability professionals, as well as
While tech solutions can help solve environmental senior executives from core functions such as human
issues, IT as a whole, has a significant carbon footprint resources, finance, and marketing. In this research, we
itself. For instance, data centers represented nearly address the following questions:
1% of the world’s energy demand in 2019.1 And
1. What is the impact of enterprise IT on the
the digital acceleration that we have seen during
environment and how is it growing?
the COVID-19 pandemic will further increase the
enterprise IT carbon footprint. 2. To what extent are organizations aware of the
environmental impact of IT?
The tech industry is urgently addressing this critical
issue. For example, Microsoft is experimenting with 3. Are organizations prioritizing sustainable IT?
approaches that help reduce the energy requirements
of data centers. Microsoft’s Project Natick, for 4. What are the benefits of implementing
instance, aims at testing the performance and energy sustainable IT initiatives and what are the key use
efficiency of underwater data centers.2 But this focus cases that organizations should focus on?
on sustainable IT does not seem to be important 5. What is the roadmap for organizations to
for most organizations. We found, for instance, that accelerate the implementation of sustainable IT
89% of organizations recycle less than 10% of their IT initiatives?
hardware.
This research focuses on how to make enterprise
IT itself more sustainable (it does not, therefore,
look in detail at how smart systems can be used
to develop innovative sustainability solutions). To
investigate this critical issue, we surveyed 1,000

2 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Executive summary
Enterprise IT contributes significantly to the world’s carbon footprint

• In 2019, 53.6 million tons of e-waste were generated worldwide – an increase of 21% in five years.3
• 89% of organizations recycle less than 10% of their IT hardware.

But despite significant growth in the carbon ...and adoption and deployment of solutions is
footprint of IT, sustainable IT is not a priority for undermined by a lack of tools and expertise
most organizations...

• Globally, only 43% of executives say they are aware • 49% say a major challenge, when it comes to
of their organization’s IT footprint. implementing sustainable IT initiatives, is the
• 50% of firms say they have an enterprise-wide lack of tools or standards/ratings to evaluate the
sustainability strategy, but only 18% have a carbon footprint of IT
comprehensive sustainable IT strategy with well- • 53% say they do not have the required expertise
defined goals and target timelines. for sustainable IT implementation.

As a result, organizations are missing out on a significant performance opportunity

• Only 6% of the organizations in our survey can be classified as highly mature when it comes to sustainable IT
• 61% of those highly mature companies have improved their ESG (environmental, social and governance)
score and brand image
• 56% have improved customer satisfaction.

A three-stage roadmap is key to driving progress and seizing the sustainable IT prize

1. Set the foundations with a qualitative and quantitative diagnostic assessment and a sustainable IT strategy
that aligns with the organizational sustainability strategy
2. Create a robust governance approach with a dedicated sustainable IT team and support from the top
leadership team
3. Operationalize sustainable IT initiatives, with sustainability a key pillar of software architecture.

3
Defining sustainable IT

Sustainable IT is an umbrella term that describes an including user hardware and devices, networks and
environment-focused approach to the design, use, communication systems, applications and data, and
and disposal of computer hardware and software cloud computing (see Figure 1). We look at key aspects
applications and the design of accompanying business of sustainable IT in each of these areas including the
processes. The term also extends to activities such application of ecodesign principles and the design
as responsible mining of rare metals used to develop of sustainable IT architectures. We also focus on
IT hardware, water conservation, and the application organizational reporting related to environmental
of circular economy principles across the technology disclosures and the governance of sustainable
lifecycle. Our research spans all areas of enterprise IT, IT initiatives.

Figure 1: Sustainable IT – applying an environment-focused approach across the enterprise IT landscape

1. Procuring hardware 1. Deploy edge


and user devices with computing to reduce
minimum lifecycle carbon network transfers
cost N 2. Use efficient data
re cometw
2. Improving employee wa transfer mechanisms
rd ices m o
awareness of device sy u
ev
an r ha

rk cat

s
ni ems
s a ion

utilization and
dd
Use

nd

sustainability
3. Proper disposal, recycling
and refurbishment of 1. Ecodesign applications
Sustainable
hardware to minimize resource
IT
a ta

4. Utilizing energy certified utilization


Clo

2. Develop sustainable
dd

and auto-off hardware


ud

5. Prolong the lifespan of architectures to


an

m
co

rationalize applications,
ns

devices pu
tin ti o and identify and
g i ca
A p pl decouple energy-
1. Adopt enterprise cloud solutions intensive applications
2. Switch to a green cloud 3. Streamline data
architecture and framework architecture and
3. Use AI/ML to optimize data optimize the data
center utilization and improve lifecycle
cooling solutions 4. Design efficient
4. Utilize or shift to public cloud and sustainable AI
utilizing low carbon grids applications

Environmental disclosure and policy


1. Establish public disclosure and sustainability 3. Mandate environmental disclosure for
reporting for IT operations IT vendors
2. Establish green policies for IT hardware and 4. Advocate circular economy principles
services procurement for vendors
Governance
1. Assess the environmental impact of 3. Establish carbon cost of IT operations
technologies and computing hardware 4. Develop change management programs and
2. Establish and follow lifecycle carbon footprint user awareness campaigns
accounting for all hardware 5. Ensure participation of senior technology
executives in the organization’s sustainability
governance

Source: Capgemini Research Institute.

4 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Why sustainable IT matters
The environmental impact of enterprise IT is a growing area
of concern
The rising demand for computing power and data storage actions from some organizations, the majority of data
poses a significant environmental challenge. The number of centers are still largely powered using fossil fuels. Only 17%
connected devices is expected to reach 55.7 billion by 2025, of organizations in our survey, for instance, have deployed
of which 75% will be connected to an IoT platform.4 The data measures to use green energy sources in their data centers.
generated by connected IoT devices is expected to grow
User devices: The production and disposal of electronic
fourfold, from 18.3 zettabytes in 2019 to 73.1 zettabytes
devices have a significant environmental impact. The
by 2025.5 The storage and processing of this data will in
extraction of metals used to manufacture smartphones, for
turn lead to increased demand for data centers. A major
instance, is linked with ecological destruction and generates
cloud computing solution provider’s operation footprint,
large volumes of toxic waste. In addition, many of the
for instance, increased 4.31 times from 2015 to 2019.6 The
rare metals used to manufacture smartphones are finite
growth in data volumes will also lead to growing adoption
resources.12 Overall, estimates indicate that the carbon cost
of technologies, such as AI, which are critical to drawing
of producing these devices is nearly equal to, or exceeds
value from massive stores of data. Our previous research has
the carbon cost of using them.13 Extending the lifespan
shown that the adoption of AI across organizations has been
of electronic devices is therefore critical. Netherlands-
rising steadily with more than one in two organizations (53%)
based phone manufacturer, Fairphone, for instance, offers
moving beyond pilots or proofs of concept in a few or more
sustainably designed phones whose modular components
use cases.7
allow them to be easily repaired,14 increasing their longevity.
All of these factors are contributing to the growing carbon
Hardware disposal also poses a significant threat to the
footprint of enterprise IT. We look at each of these in detail
environment. E-waste contains toxic substances that are
below:
hazardous to human health and the environment. In 2019,
Data centers: Data center operations are energy intensive. 53.6 million tons of e-waste were generated worldwide –
In 2019, data centers accounted for nearly 1% of the world’s an increase of 21% in five years (see Figure 2). The volume
energy demand.8 In the US, data centers are responsible of e-waste is expected to grow to 74 million tons by 2030.15
for 2% of the country’s electricity use.9 Some of the world’s Proper disposal of e-waste is therefore critical. However,
largest cloud hyper-scalers have taken significant steps current levels of e-waste recycling fall far short. Only 17.4%
towards powering their data centers with renewable energy. of global e-waste generated in 2019 was recycled.16 Our
Microsoft, for instance, has announced plans to switch to research also shows that current recycling levels are very low.
100% renewable energy to run its data centers by 2025.10 The vast majority (89%) of organizations we surveyed recycle
Google also plans to shift completely to carbon-free energy less than 10% of their IT hardware.
by 2030 to power its data centers.11 However, barring such

89%
of organizations recycle less than
10% of their IT hardware.

5
Figure 2: E-waste is a growing sustainability issue

Per capita e-waste generated in 2019

US 21 kg France 21 kg UK 23.9 kg Netherlands 21.6 kg Norway26


Norway 26kg
kg Sweden 20.1 kg Germany 19.4 kg

Spain 19 kg Brazil 10.2 kg Italy 17.5 kg India 2.4 kg China 7.2 kg Singapore 19.9 kg Australia 21.7 kg

The volume of e-waste generated globally is expected to grow from 53.6 million tons in 2019 to 74 million tons in 2030

Source: Global E – waste Statistics Partnership17

Figure 3: A glance at the enterprise carbon footprint of leading firms

Major cloud computing solution 295 thousand metric tons of CO2e in 64 thousand cars on the road
provider – carbon footprint of 2019 4.31 times increase from 2015 for a year
operationsT

Leading consumer electronics 6.1 coal-powered plants for


manufacturer – carbon footprint 24 MtCO2e in 2019 a year
of end-user devices*

Global telecom service 236 thousand homes


provider – carbon footprint of 1.3 MtCO2e in 2019 powered for a year
telecom operationsT

*Covers assembly, transportation, utilization and refurbishment of end-user devices.T Including Scope 1 and Scope 2 emissions, market-based
Source: Carbon Disclosure Project and the United States Environmental Protection Agency.

6 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Artificial intelligence: While AI has huge potential to be at In previous research, we estimated the GHG footprint of
the heart of climate action and help combat climate change, key AI use cases (see Figure 4).20 Our analysis showed that
it also carries its own carbon footprint. While it needs to be the GHG emissions produced in training and executing AI
recognized that natural language processing (NLP) models systems vary widely, from a few grams of CO2 equivalent to
are among the largest AI models (given their objective of a few kilograms, which is small compared to the overall GHG
mastering the human language),18 a study found that training footprint of a large organization. However, with growing
an AI language processing system produced 1,400 pounds of adoption of AI, organizations will need to be mindful of AI’s
carbon-equivalent emissions – about the amount produced carbon footprint and take measures to design and deploy
by flying one person roundtrip between New York and San sustainable AI applications.
Francisco.19

Figure 4: The GHG footprint of a sample of AI applications

Average organization
AI use case GHG emissions produced in...
emissions

Build/training phase Run/execution phase

6 million tons of
CO2 eq. – the average
Image recognition system for
10 kg of CO2 eq. 0.3 kg of CO2 eq. annual Scope 1 emissions for
quality control at a plant
a top 30 consumer
products manufacturer.

40 million tons of
AI-based optical character
CO2 eq. – Scope 1 emissions
recognition for a large energy 0.78 kg of CO2 eq. 0.96 kg of CO2 eq.
for a large oil & gas major
company
in Europe.

Source: Capgemini Research Institute Analysis*. Carbon Disclosure Project, Climate Change 2019 reports submitted by large
organizations across sectors.

*The analysis was conducted as part of our previous research on the use of AI to drive climate action. The analysis aimed at ascertaining the GHG
footprint of some of the popular AI use cases. The factors that were used to arrive at these analyses were: duration of the process, average power
drained, cooling consumption factor, and unit conversion factor.

7
The enterprise IT carbon footprint is expected
to grow significantly
As organizations continue to invest in digital technologies, footprint). However, organizations do not view this as an area
the enterprise IT carbon footprint is set to expand as well of concern: 78% plan to reduce less than one-fourth of their
(see Figure 5 on the growth rate of enterprise IT GHG carbon footprint through sustainable IT in the next three
years without carbon offsets.

Figure 5: CO2 equivalent emissions due to enterprise IT are increasing

GHG emissions from enterprise IT - averaged annual growth rate

20.5%

409.0

Enterprise IT, by 2025, will


312.7 have the equivalent carbon
footprint of:
9.9%
258.8
1720 463 milion passenger vehicles
222.4 driven for a year
8.4% 9.1%
OR
871 1154
665 256 milion homes’ electricity
usage per year

2017 2020 2023 2025


Run Phase (in MtCO2e) Production Phase (in MtCO2e) Enterprise IT GHG growth rate

Sources: The Shift Project, “Lean ICT–Towards Digital Sobriety.” The forecast as based on expected evolution/growth of enterprise IT (for
calculation see below*).21 Forecast years are from 2020 onwards. MtCO2e stand for mega tons of CO2 equivalent GHG emissions.

*Using the “Expected Scenario” outlined in the report titled “Lean ICT – Towards Digital Sobriety” by the Shift Project, we estimated the
growth rate of the enterprise IT GHG footprint. For the purposes of this calculation, we assumed that 40% of all shipped desktops, laptops, and
monitors, 5% of all smartphones, and 10% of all tablets are used by enterprise users.

In the next section, we look at the level of awareness among organizations regarding the environmental impact of IT and the
steps being taken towards sustainable IT.

8 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Many organizations are looking to the tech industry to help them drive
sustainable IT

Perhaps reflecting the lack of maturity in many Close to half (48%) say technology firms should
organizations, companies across sectors are looking be setting standards and deciding the norms for
to the tech industry to lead the charge when it sustainable IT and close to a quarter (23%) have
comes to sustainable IT. Our research shows that rejected technology vendors who do not adhere
they want technology vendors to drive sustainable IT to their sustainability procurement rules (i.e., the
as part of their value proposition and are willing to environmental issues that companies insist vendors
pay more for sustainable IT products and services: follow if they want to sell a technology product
or service). 90% of organizations in France and
As Figure 6 shows, 52% say technology firms should
UK believe that technology firms can help them
incorporate a sustainable IT dimension in their
measure the environment impact of IT.
products and services and 61% want tech firms to
help them measure the environmental impact of
their IT.

Figure 6: Organizations have high expectations from technology firms

68% 67% 67% 63% 62% 61% 60%


61%
52% 52% 55% 56% 53% 52% 54% 54% 53% 52% 51%54%
47% 41%

Overall Consumer Automotive Retail Life Sciences Telecom


Products and Healthcare
Insurance Banking Public Sector Energy Industrial
and Utilities Manufacturing
Technology firms can help us measure the environmental impact of our IT
Technology firms should incorporate a sustainable IT dimension in their traditional offers
Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=915 organizations.

The business case for the tech industry of meeting this demand is also clear. Overall, 45% of organizations are
willing to pay a premium of up to 5% for sustainable IT products and services (see Figure 7).

Figure 7: 45% of organizations are willing to pay up to 5% more for sustainable IT

Share of organizations willing to pay up to 5% more for sustainable IT products/services

57%
45% 49% 47% 45% 44% 44% 44% 43%
43% 40%

Overall Automotive Insurance Retail Consumer Industrial


Products Manufacturing
Life Sciences Public Sector Banking Energy Telecom
and Healthcare and Utilities
Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N = 915 organizations.

9
Despite the growing IT carbon
footprint, sustainable IT is not a
priority for most organizations
Organizations are largely unaware of the environmental
impact of IT
Our research revealed gaps in awareness regarding the executives (43%) say they are aware of their organization’s
overall environmental impact of IT. For instance, only 34% IT footprint. The level of awareness varies by sector: the
are aware that the production of mobiles and laptops has banking and consumer products sectors for instance show
a higher carbon footprint than the usage of these devices relatively higher levels of awareness, while the industrial
over their lifetime. Awareness of a company’s own IT manufacturing sector shows the lowest level of awareness
carbon footprint is also lacking. Globally, less than half of among the sectors covered in our research (see Figure 8).

Figure 8: Gaps in awareness regarding the environmental impact of organizations’ IT footprint

Percentage of respondents who are aware of the environmental impact


of their organization’s IT footprint

52% 51%
47% 46% 45% 45%
43% 42% 41%
39%
36%
28%

Overall Consumer Automotive Life Sciences Technology Public Sector


Products and Healthcare services/product
firms

Banking Insurance Retail Telecom Energy Industrial


and Utilities Manufacturing

Source: Capgemini Research Institute, Green IT survey, December 2020 – January 2021, N = 1000 organizations.

10 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
As Figure 9 shows, executives feel non-IT functions in the business that has the highest sustainable IT awareness. While
business need to build their sustainability IT awareness. the IT function, perhaps not surprisingly, is ranked number
We asked respondents to nominate the one function in the one when it comes to awareness, HR is at the bottom.

Figure 9: Ranking of business functions by sustainable IT awareness

Which of the following functions in your organization has high awareness/implementation of


sustainable IT initiatives?

IT Support/Internal IT 23%

Operations 21%

Corporate Strategy and Planning 11%

Finance 7%

Innovation 7%

Sustainability 7%

Sales and Marketing 6%

Manufacturing 6%

R&D and Product Development 5%

Sourcing/Procurement 3%

Supply Chain and Logistics 2%

Human Resources 1%

Source: : Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=1,000 organizations.

50% of firms say they have defined an


enterprise wide sustainability strategy,

however only 18%


say they have a
comprehensive sustainable IT strategy

11
Sustainable IT is disconnected from the wider
sustainability agenda
While half of firms say they have defined an enterprise- well-defined goals and target timelines. Figure 10 shows that
wide sustainability strategy, less than one in five (18%) say this is an issue across multiple sectors.
they have a comprehensive sustainable IT strategy with

Figure 10: Across sectors, organizations lack an overarching sustainable IT strategy

Percentage of organizations that have a....

59%
56%
50% 52%
50% 49% 49% 47% 45% 44% 42%

24% 23%
18% 20% 19% 19%
17% 16% 17%
14%
10%

Overall Life Sciences Automotive Insurance Banking Industrial


and Healthcare Manufacturing

Energy Public Sector Telecom Retail Consumer


and Utilities Products

Sustainability strategy covering the entire organization


Sustainable IT strategy with well-defined goals and target timelines

Source: Capgemini Research Institute, Green IT survey, December 2020 – January 2021, N = 1000 organizations.

On a geographic level, the gap is most pronounced in the UK, a sustainability strategy and 36% say they also have a
where 74% say they have an enterprise-wise sustainability comprehensive sustainable IT strategy.
strategy, but only 19% have an enterprise-wide sustainable
For many, sustainable IT is a work in progress: 62% are still
IT strategy. In contrast, organizations in the US report a
working on developing their strategy and 19% have a local
much narrower gap: 41% say that their organizations have
approach but have not achieved enterprise-wide scale.

12 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Opportunities to reduce enterprise IT’s carbon footprint
not being seized
This section examines: 1–Implementation progress
1. The extent to which organizations have implemented As Figure 11 shows, scaled implementation of carbon
measures to reduce their carbon footprint across their reduction solutions is rare. Only 15%, for example, have taken
enterprise IT landscape. steps to reduce the carbon footprint of IT hardware, with
2. The extent to which organizations have established the 46% only at pilot stage, and 39% taking no action at all.
necessary governance mechanisms and environmental
disclosure policies needed to support these measures.

Figure 11: Low utilization of opportunities to reduce environmental impact of enterprise IT

Have you undertaken any measures across different components of enterprise IT to


reduce your carbon footprint ?

39% 46% 15%


IT hardware/user devices

57% 32% 10%


Cloud computing/virtualization

46% 42% 11%


Networks and communication systems

59% 36% 5%
Applications and data

Not Aware/Not Implemented Pilots Deployed

Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=1,000 organizations.

User hardware and devices. Despite the enormity of the energy efficient data-transfer mechanisms. A shift to edge
e-waste problem,22 many organizations do not treat it as a computing, for instance, can reduce energy use by processing
priority. We found that only 35% measure the environmental data closer to the source. This reduces the need for data to
impact of disposing of their hardware. Dell, in contrast, has be transmitted to a data center that may be located several
been running a program to reuse plastic recovered from hundred miles away. However, only 15% have deployed
computers that have reached end of life to make new parts.23 edge computing initiatives and 36% are not aware or not
implemented these so far.
Applications and data. The application landscape of
an organization is often overlooked from a sustainability Cloud computing. Moving from on-premises infrastructure
perspective. We found that only 19% measure the energy to cloud computing offers significant energy savings.24 While
impact of the pre-production application environment organizations worldwide are adopting cloud computing, few
(the development and testing of applications) and only are aware of its environmental impact. We found that only
21% measure the sustainability impact of the production 19% measure cloud’s environmental impact. Further, 60% are
environment (live applications). Measures such as the use of not aware of or have not implemented a switch to a green
sustainable application architectures can help organizations cloud architecture and framework that aims to reduce power
rationalize applications and identify and decouple energy- consumption. Lance Pierce, president of Carbon Disclosure
intensive applications. However, 59% of organizations are Project, North America, says, “When organizations choose
either not aware of or have not implemented these sorts of low-carbon cloud computing, they are taking an important step
architectures. forward on sustainability. Sustainable digital transformation,
powered by a cleaner cloud, enables the creation of a sustainable
Networks and communication systems. Organizations
and thriving economy that works for people and planet in the
can also optimize their energy use by adopting more
long term.” 25

13
2–Disclosures and governance extend disclosure requirements to their vendors. Effective
reporting is also difficult when few organizations (27%) have
Overall, only a third of organizations have established policies
established the carbon cost of their IT operations, with only
mandating the reporting of the enterprise IT carbon footprint
29% using carbon assessment tools.
(see Figure 12). In addition, most organizations do not

Figure 12: Few organizations have a robust approach to reporting and KPIs/measures

Percentage of organizations that have the following in place

47%
41% 39%
33% 35% 34% 34% 33%
32% 31% 31%
27% 28%
26% 27%
23% 24%
27% 25% 27% 24%
20%

Overall Insurance Banking Life Sciences Retail Energy


and Healthcare and Utilities

Public Telecom Automotive Industrial Consumer


Sector Manufacturing Products

Sustainability reporting for IT is mandated Have a carbon cost to our IT operations

Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=1,000 organizations.

In most organizations, the governance mechanisms for oversee sustainable IT. Further, only half say that their CIOs
sustainable IT initiatives – such as committed top leadership are part of their organization’s sustainability governance
support and user awareness programs – are lacking. For team. This indicates that, in many organizations, the IT
instance, only 34% say that sustainable IT is part of their function is not necessarily seen as a key stakeholder in driving
board level agenda and only 39% have a governance body to the overall sustainability agenda.

33%
of organizations have established
policies mandating the reporting of
the enterprise IT carbon footprint

14 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Why are organizations not prioritizing
sustainable IT?
Complexity of common standards or ratings by IT materials used in a data center. Secondly, the way in which
vendors to measure impact on environment materials are used needs to advance to improve performance
and reduce footprint. The key to understanding a data center’s
Many organizations find it difficult to measure their IT’s
embodied carbon footprint lies in establishing the footprint of
carbon footprint: 49% said this is because they do not have
each component used to build the facility and their origin.” 26
access to the tools – and common measurement standards
or ratings – needed to tackle what is a multi-layered issue. All Implementation challenges are a major roadblock for
digital interactions – such as email, video or voice calls, data sustainable IT
storage and sharing – have an associated carbon cost. But,
Implementation issues are still a major challenge for
many are not aware of this fact as it is not commonly known
sustainable IT, ranging from organizations lacking the
or routinely published. A senior executive for environmental
expertise to implement to concern that deploying sustainable
sustainability adds, “The energy impact of infrastructure, like a
IT could compromise business continuity. As Figure 13 shows,
boiler, has been studied so well that organizations are very clear
over half (53%) say they do not have the required expertise
on the carbon impact. But that is not true of IT infrastructure yet.
and 48% are concerned about the high cost of setting up
I think the IT industry has to come up with green labeling for their
green infrastructure.
products, which would then make it easier for companies like us
to make greener purchase decisions.” A senior executive for environmental sustainability said
that perception issues affect how some organizations see
Additional research on the carbon footprint associated with
the impact of sustainable IT deployment on continuity of
both the manufacture and use of IT hardware is essential. Ian
operations and security. “Production IT infrastructure plays
Whitfield – CEO of RED, part of Engine Impact, a firm focusing
such a critical role in day-to-day operations as well as in data
on accelerated sustainability transformation for corporations,
security,” he explains. “Therefore, there is a fear that you don’t
cities and governments – has said, “To tackle the challenges of
want to take a risk with any. The idea is that you are somehow
carbon footprint, two things are needed. First, more research is
compromising on quality if you go for a greener product. It’s more
required to understand the real carbon footprint of the various
of a perception issue.”

Figure 13: Implementation challenges for sustainable IT

Implementation challenges are a major roadblock

53%
48%
45%
39%

Lack of domain expertise High cost of setting up Impact on business Identifying correct use
to implement sustainable sustainable IT continuity when shifting cases to invest in
IT initiatives infrastructure away from legacy systems

Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=1,000 organizations.

15
The benefits of sustainable IT
High maturity organizations deliver significant benefits

We analyzed the maturity of the 1,000 organizations governance, and operationalizing sustainable IT – is
in our cross-sector sample when it comes to rare. Overall, only 6% of organizations (which we call
sustainable IT, from those who have no mature the High Maturity Organizations) show maturity in
approach to those who have a highly mature terms of their end-to-end approach for sustainable
approach. As Figure 14 shows, significant maturity IT initiatives.
across all three areas – foundational steps,

Figure 14: Organizations are at different levels of maturity when it comes to sustainable IT

70% 7% 17% 6%
Intermediate
Low Maturity High Maturity
Group maturity characteristics Beginners Maturity
Organizations organizations
organizations

Foundation: Comprehensive
sustainable IT strategy, Setting
carbon cost and
decarbonization targets,
sustainable IT is a board agenda

Governance: Involve key


stakeholders, Service/business
models and market strategy
align with sustainable IT,
dedicated sustainableIT team

Operationalizing: Educate
investors and clients, proper
disposal of e-waste, monitor
and influence IT vendors
driving a sustainability agenda

No Maturity Low Maturity Medium Maturity High Maturity Full Maturity

Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N = 1000 organizations.

16 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Organizations that have scaled sustainable IT their ESG (environmental, social, and governance)
use cases have achieved, on average, a 12% cost score and brand image, compared to 45% of other
reduction. High Maturity Organizations deliver organizations.
significantly more benefits across multiple • 56% have improved customer satisfaction
parameters compared to other organizations, as (vs 43%).
Figure 15 shows: • 44% say green practices deliver tax savings
(vs 22%).
• 61% of High Maturity Organizations have improved

Figure 15: Organizations with high maturity across foundational steps, governance and operationalizing
sustainable IT initiatives derive considerable benefits

Sustainable IT leads to significant benefits


61% 61%
56%

45% 44%
43%
35%

22%

Improvement in ESG Improvement in Improved customer/ Tax saving due to


(Environmental, brand image client satisfaction green practices
Social &
Governance) score
High Maturity Organizations Others

Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=1,000 organizations.

17
Which sustainable IT uses cases
deliver the most benefits?
We assessed 24 sustainable IT use cases across six categories. 4. Cooling technique: Data centers are an organization’s
The analysis, which is summarized in Figure 16, shows use second largest consumer of energy, with 35% of this
case adoption and scaling as well as the use case that delivers energy taken up by powering cooling equipment. Any
the most benefits in each category. initiative that can reduce data center cooling will help to
make a significant contribution to carbon reduction.27
The six categories include:
Using machine learning to optimize cooling systems
1. IT hardware/user devices: The auto switch-off delivers 8% cost savings. Verizon – the American
hardware/features use case delivers the highest telecommunication organization – has used machine
cost savings (14% on average) from power reduction learning for cooling management to save 55 million
while reducing carbon in this category. Chandramouli kilowatt-hours of energy per year across its 24 data
Subrahamanayan, head of IT at Citrix, an American centers.28 The location of data centers also plays a
software firm, says, “We ensure that our sustainability very important role in energy consumption. Microsoft
principles are driven through our applications. when our tested an underwater data center, which provides edge
customers use our Virtual desktop infrastructure platform connectivity in coastal areas. The sub-surface sea water
for compute we automatically turn off or use ‘send to sleep’ provides free and continuous cooling, creating an energy-
mode whenever any computer resources are not being used. efficient data center design. 29Among all the use case
Those type of things add a lot more value to the sustainability categories, the most beneficial use case is also the most
cause.” According to Christophe Debuysscher, ICT adopted in this group.
Sustainability Manager at the European Patent Office, “As
5. Utilization: Using AI/ML to optimize data center
an example of one quick-win is with your fleet of printers.
utilization delivers cost savings of 9% among those who
When you have several hundreds of them on-premise in your
have deployed it. AI/ML have significant potential when
organization and you change the settings of the standby,
it comes to sustainability (see our research on AI for
low power, or sleep modes, this will result in energy savings.
climate action30). Optimizing workflows and enabling
With available printer dashboards on energy consumption,
dynamic scheduling based on renewable power are
accessible to everyone, this is a concrete and ’tangible’ thing
critical load balancing techniques that AI/ML can deliver.
which everyone can see.”
Google shifts execution of non-urgent workloads in their
2. Cloud computing/virtualization: Switching to a green data centers to when low-carbon sources of energy are
cloud architecture and framework has delivered a 19% abundant.31
cost savings among organizations that have been able to
6. Energy efficiencies and usage: The cost of running and
scale the solution organization-wide.
cooling servers far exceeds the initial price of hardware. It
3. Applications and data: Developing sustainable is therefore critical that energy-rated servers like “Energy
architectures to rationalize applications, identify and Star” are mandated in procurement.
decouple energy-intensive applications offers 11% cost
savings. Organizations should audit their applications so
they can identify the most energy-intensive applications
and take steps to address the worst offenders.

18 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
“As an example of one quick-win is with your fleet of
printers. When you have several hundreds of them
on-premise in your organization and you change the
settings of the standby, low power, or sleep modes,
this will result in energy savings. With available
printer dashboards on energy consumption, accessible
to everyone, this is a concrete and ’tangible’ thing
which everyone can see.”

Christophe Debuysscher
ICT Sustainability Manager at the European Patent Office

19
Figure 16: Sustainable IT use cases adoption and benefits across enterprise IT landscape

• 43% of organizations have launched pilots and 10%


have deployed initiatives in this category1

Energy-starred servers is the most carbon-efficient


use case with a 9% operational cost savings.
Highest Huawei worked with telecom carriers to upgrade to
carbon three-level PowerStar solutions at more than 100,000
sites. A Chinese carrier with 17,000 such sites has been
reduction able to reduce 12% energy since 2019.2
category d usage
ies an
c

n
Ener efficie
30%
1
gy

IT hardwa
5 re
/
us
er
devices
6
• 46% of organizations
20% have launched pilots
and 15% have
deployed initiatives
Least in this category1
carbon
reduction Auto switch off hardware in the office is
category the most carbon-efficient use case with a 14%
operational cost savings.

Sources:
1. Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N = 1000 organizations.
2. Huawei, “Reducing Carbon Emissions”, accessed 03 February 2021.

20 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
• 36% of organizations have launched pilots and 5% • 46% of organizations have launched pilots and 12%
have deployed initiatives in this category1 have deployed initiatives in this category1

Develop sustainable architecture to rationalize Machine learning to optimize data center


applications is the most carbon-efficient use case with utilization is the most carbon-efficient use case with a
11% operational cost savings. 9% operational cost savings.
Intel developed the Software Development Assistant, Google shifts execution of non-urgent workloads
which enables programmers and engineers to take in their data centers to when low-carbon sources of
energy measurements from a system as it executes energy are abundant.4
specific workloads.3
data
nd ion
sa at
n

liz
tio

Uti
Applica

Cooli
ng
t
ud comput
Clo ing ec
hn
ique
/v
irtu
alization

• 32% of organizations
have launched pilots
and 10% have
deployed initiatives • 34% of organizations have launched pilots and
in this category1 4% have deployed initiatives in this category1

Switch to green cloud architecture and framework is Using machine learning to optimize cooling
the most carbon-efficient use case with a 19% operational systems is the most carbon-efficient use case with an
cost savings. 8% operational cost savings.
VMwave – the virtualization software provider – has Google was able to reduce the amount of energy for
avoided a cumulative 1.2 billion metric tons of CO2 till 2019 cooling by 15%. Using the wealth of data from usage
by virtualizing computing requirements.5 of servers in data centers, Google was able to more
efficiently regulate their cooling.6

Sources:
1. Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N = 1000 organizations.
3. Intel, "Energy Efficient Software Development", February 2015.
4. Google blog, “Our data centers now work harder when the sun shines and wind blows,” April 22, 2020.
5. VMware, “Sustainability Report – 2019”, 17 August 2019.
6. Guardian, “Google uses AI to cut data center energy use by 15%,” July 2016

21
Technology firms are becoming more sustainable

The technology sector is well placed to drive has offset its entire carbon footprint since its
the sustainable IT agenda and also play a role inception by investing in “high-quality carbon
influencing and advocating for policy change offsets.” Google also aims to run its data centers
globally. Technology firms are taking proactive on carbon-free energy by 2030.
steps to decarbonize their IT operations, services,
• Microsoft is planning to become carbon negative
and products. Multiple technology firms are
by 2030, promising to remove more carbon from
implementing sustainable IT initiatives (see Figure
the atmosphere than the company emits.
17) and have also announced targets to become
carbon neutral:(i) • Apple is aiming to become carbon neutral by
2030 across its entire business and manufacturing
• Google became carbon neutral in 2007 and
supply chain.

Figure 17: Technology firms leading the way in pledging sustainable IT contribution

• Microsoft is planning to become carbon negative by 2030. • Amazon has now invested in 6.5 GW
By 2023, 70% of Microsoft’s massive data centers will run on of wind and solar projects – to power
renewable energy. their AWS data centers and fulfilment
• Microsoft charges an internal carbon fee of $15 per metric ton centers.
of carbon emissions to encourage its departments to be as • Amazon is committed to be carbon
sustainable as possible.6 neutral by 2040.3

Google Microsoft Apple Amazon

• Google became carbon neutral in 2007 and • Apple uses renewable energy to power all their data
has wiped out its entire carbon footprint centers. Using free air cooling and motion sensing lights
since its inception by investing in "high- further reducing energy consumption.
quality carbon offsets". • Apple is targeting to become carbon neutral by 2030.2
• Google aims to run its data centers on
carbon-free energy by 2030.1

Sources:
i. BBC, “Google says its carbon footprint is now zero,” September 2020.
ii. Who’s saving the planet, “Green Coding: Sustainability in Software.”
iii. Cornell University, “Green Algorithms: Quantifying the carbon footprint of computation,” December 2020.
1. BBC, “Google says its carbon footprint is now zero,” September 2020.
2. Apple, “Apple now globally powered by 100 percent renewable energy,” April 10, 2018.

22 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
• Amazon aims to be carbon neutral by 2040. • Coding: Programing languages that are written
to produce algorithms that have minimal energy
Sustainable IT is not only limited to the migration
consumption can be an innovative approach to
to greener hardware and energy. Organizations are
sustainability:
trying to be more sustainable through initiatives,
such as apps rationalization and green coding: – Netflix, Google and LinkedIn use programming
languages that are designed to consume
• Apps: Strategically identifying business
minimal energy.(ii)
applications across the organization to
understand which application need to be retired, – Cornell University has developed an online tool
replaced, or kept reduces redundancy and to help users estimate the carbon footprint of
unwanted energy consumption. their computation.(iii)

• Dell has two owned factories certified ISO


50001 and strongly encourages partners to be
ISO 50001 as well- thereby reducing the device’s
carbon footprint.5
• Dell is on its way to reducing its greenhouse gas • Samsung has a goal to
emissions by 40%.4 recycle 7.5 billion pounds of
electronics waste by 2030.
• Samsung is on track to use
100% renewable energy in the
U.S. by the end of 2020.6

HP Dell Lenovo Samsung

• HP plans to use 40% renewable energy for all • Lenovo received 4/8 Green Product Honors by
operations by 2020, and 100% in the coming future – Chinese government for low carbon footprint
making their product portfolio more sustainable.5 of gadgets manufactured.7
• HP’s goal is to increase the recycled content of • Lenovo is also working towards a 40% decrease
plastics across its print and personal systems portfolio in greenhouse gas emissions by 2021.
to 30% by 2025.

3. Amazon, “Amazon Becomes World’s Largest Corporate Purchaser of Renewable Energy, Advancing its Climate Pledge Commitment
to be Net-zero Carbon by 2040,” December 10, 2020.
4. Dell Technologies, “Climate Change,” Environment + Energy Leader, “How HP Plans to Reach 100% Renewable Energy Across
Global Operations,” April 6, 2020.
5. Forbes, “10 Most Sustainable Consumer Tech Companies,” November 2020.
6. Lenovo Story Hub, “Lenovo Recognized Among Top Companies Going Green in China for Manufacturing and Supply Chain
Innovation,” August 2, 2019.

23
Building a roadmap to accelerate
sustainable IT implementation
Drawing on our survey analysis and interviews, as well as roadmap for accelerating the sustainable IT agenda (see
our own experience in this area, we suggest a three-stage Figure 18):

Figure 18: Roadmap for sustainable IT implementation

Assess: Set the foundation Governance Plan: Create Implement: Operationalize


for sustainable IT initiatives effective governance for sustainable IT initiatives
sustainable IT initiatives

• Baseline and benchmark the • Ensure all stakeholders are • Ensure sustainability in software
environmental footprint of committed to implementing architecture
enterprise IT sustainable IT initiatives • Identify environmental impact of
• Create a sustainable IT strategy • Align services, business AI during design and training
aligned to global sustainability models, and go-to-market • Make environmental impact a
strategy strategy with sustainable IT criterion to select IT vendors
• Define key performance • Create dedicated sustainable • Develop sustainability culture
indicators, targets, frameworks IT team among employees and teams
and set carbon cost to IT • Select and scale the right
operations sustainable IT use cases
• Create a transformation
roadmap for sustainable IT

Source: Capgemini Research Institute Analysis.

24 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Stage 1: Assess – set the foundation for sustainable
IT initiatives
Baseline and benchmark the environmental footprint of
enterprise IT
Conduct diagnostic assessment to understand the This is an area where AI can provide potential solutions, with
environmental impact of IT over a third (37%) of organizations saying AI will be essential
to measure IT’s carbon footprint. This will require a close
Half of organizations are hampered by the absence of tools
collaboration between AI product teams and IT.
and standards/ratings to evaluate the carbon footprint
of their enterprise-wide IT. For example, only 29% use Conduct sustainable IT maturity assessment for
carbon emission assessment tools for all functions in the organization and business units
organization.
Conducting maturity assessments within business units and
These sorts of tools are critical. They can help organizations across the overall organization provides context on where
calculate the carbon footprint for their application portfolio the organization is placed on the sustainable IT agenda and
and data centers; the emissions savings that could be made where critical action is required. The assessment should
by decommissioning applications and moving to the cloud; include both quantitative aspects (such as potential cost or
and help set a carbon cost based on the assessment data. Use carbon savings) and qualitative aspects (such as employee
of diagnostic tools will enable organizations to baseline and behavioral impact and vendor assessments). Currently,
benchmark the environmental impact of IT and help build a only 41% of organizations conduct sustainable IT maturity
target operating model for sustainable IT. assessments for their organization and business units
(compared to 92% of High Maturity Organizations).

Create a sustainable IT strategy aligned to the organization’s


wider global sustainability strategy
Create a comprehensive sustainable IT strategy defined goals and timelines, as well as showing the potential
cost savings and environmental benefits for the organization.
Only 18% of organizations have a global sustainable IT
strategy with well-defined goals and target timelines. As Figure 19 shows, a comprehensive sustainable IT strategy
While organizations may have multiple initiatives aligned requires both a compelling vision and the capabilities
to sustainable IT, a coherent corporate strategy is critical to execute.
to focus efforts and accelerate progress. A sustainable IT
strategy for the organization will need to include clearly

25
Figure 19: Building a comprehensive sustainable IT strategy requires both vision and execution

Vision and Goals

Organizations should have


an overarching sustainable
IT vision along with the
Sustainable IT vision

relevant goals they


Execution and Governance are pursuing
Initiatives undertaken
Organizations need to embed their
vision with their IT strategy and Organizations should undertake
look at their sustainable IT various initiatives with respect to
governance structure the overall sustainability vision
Use case adoption

Organizations should be able to scale sustainable IT


use cases for climate action
Scope of Impact
Execution should holistically cover the entire impact of IT
on the environment

Sustainable IT capabilities and execution

Source: Capgemini Research Institute Analysis.

Align sustainable IT strategy with global sustainability to become the first major company to eliminate its entire
strategy and Environmental, Social and Governance carbon legacy. Google announced plans to become the
Framework first company to operate carbon free every hour and in
every region by 2030 and it plans to purchase carbon free
A range of organizations have ambitious enterprise
energy everywhere they operate.32
sustainability strategies:
• Automotive giant Ford aims to become carbon neutral
• Google, for example, is one of the first major tech giants
by the end of 2050. It will invest USD11.5 billion globally
to invest and focus on going carbon neutral. The firm
through to 2022 with the aim of reducing CO2 emissions
made the largest renewable energy purchase in history
across various operations.33
in 2019 and issued USD5.75 billion in sustainability bonds

26 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
However, a strong link between enterprise strategy and goals. The need for credible ESG disclosures is becoming ever
sustainable IT is less common. Only 40% of organizations say more important. The UK, for example, has become the first
that their sustainable IT strategy is aligned with the wider country to make the “Task Force on Climate-related Financial
enterprise sustainability strategy. Disclosures” (TCFD) reporting framework mandatory. The
TCFD was established with the goal of developing consistent
One way to build alignment and cross-organization awareness
reporting standards for companies so that investors and
of sustainable IT is to ensure the IT leadership is part of
other stakeholders could compare different companies on
the organization’s overall sustainability governance. The
their sustainability performance. The TCFD approach provides
head of sustainability for a retail chain adds, “We have a CSR
a common framework for determining which activities can
Committee that includes our top leadership, including our CEO,
be defined as environmentally sustainable and is intended to
CFO, IT director, and other senior executives. They are consulted
build transparency into how companies’ activities impact
on our group sustainability initiatives.”
the environment.34
Another tactic is to ensure that the sustainable IT strategy
is part of the organization’s wider approach to measuring,
managing, and reporting on its performance against ESG

Define key performance indicators, targets, frameworks and


set a carbon cost to IT operations
Adopt standardized frameworks and define KPIs to There are a range of frameworks and standards that
measure and manage sustainable IT performance organizations can draw on to set carbon reduction targets
for their enterprise IT footprint. These include the ISO-based
• Many organizations are not using key disciplines for
frameworks, and the GHG Protocol Corporate Accounting
measuring and managing their sustainable IT strategy.
and Reporting Standard, among others (see Figure 20).
These include: Setting measurable and time-bound goals
or targets to decarbonize the organization’s IT footprint However, most organizations have not adopted
internationally accepted standards and frameworks or set
• Defining key performance indicators (KPIs) to track and
carbon reduction targets linked to them.
measure progress against the targets.

Figure 20: Standards for sustainable IT adopted in organizations

Which of these standards/frameworks has your organization worked with for sustainable IT?

ISO 14040:2006 , ISO 14044:2006 41%

GHG Protocol Corporate Accounting and Reporting Standard 19%

Responsible Digital Institute or Institut du Numérique 17%


Responsible (INR)

Electronic Product Environmental Assessment Tool (EPEAT) 7%


standard for IT hardware procurement

ITU-T L.1470 by the International Telecommunication Union 6%

Source: Capgemini Research Institute, Sustainable IT survey, December 2020 – January 2021, N=1,000 organizations.

27
Our research also shows that the use of KPIs to track and units must include the cost of carbon in their annual budget.
measure progress on enterprise IT sustainability initiatives is The internal carbon fee was doubled to USD15 per metric ton
not widespread. For example, only 23% measure greenhouse on all carbon emissions in 2019.35,36
gas (GHG) emissions as part of their sustainable IT initiatives
assessment. Create a transformation roadmap
Without this discipline, progress is low. In fact, only 1% of
organizations have achieved their sustainable IT targets.
for sustainable IT
A roadmap with clear milestones is essential for organizations
Set a carbon cost against IT operations to chart the path to sustainable IT deployment, and we found
Setting a carbon cost against IT operations can help different that 95% of the High Maturity Organizations have one. Cisco,
functions within the organization really understand the for example, has established an Integrated Greenhouse
impact of their IT footprint. However, only 27% have set a Gas Reduction (IGR) roadmap as a part of its sustainable
cost. IT strategy, which aims to reduce emissions associated
with suppliers. Cisco uses its direct influence on suppliers
Microsoft, in contrast, is a pioneer in this area: it introduced to ensure they are using green sourcing strategies, model
internal carbon fees as far back as 2012. These are levied on designs, product fulfillment, manufacturing energy use and
internal business units for the carbon emissions associated transport mode selection. The company is working with the
with the company’s global operations for data centers, Carbon Disclosure Project (CDP) so that it is transparent
offices, labs, manufacturing, and business air travel. This acts about progress against its overall goal: cutting one million
as a driver and incentive for sustainable IT as the business metric tons of GHG emissions across its supply chain.37

Stage 2: Governance plan – create effective governance


for sustainable IT initiatives
Ensure critical stakeholders are committed to implementing
sustainable IT initiatives
Commitment from critical stakeholders – including top The European Patent Office’s Christophe Debuysscher
leadership – is essential to drive and embed sustainable IT stresses the importance of leadership buy-in, saying: “You
approaches in the organization, particularly given the low need to have C-level buy-in and they need to be convinced. Once
level of overall awareness that exists in many. This will also you have this, sustainable IT needs to be part of the governance,
help all stakeholders understand the need for sustainable IT in other words to have a seat at the Corporate Sustainability
and ensure the process is transparent and reliable. We found board. After this you can have a policy for sustainable IT
that 66% of High Maturity Organizations make sustainable IT supporting your environmental policy. Then implement concrete
part of the board level agenda, compared to a global average sustainability initiatives such as Baselining & Dashboarding
of 34%. your ICT assets’ environmental footprint starting with energy
consumption. This is where you will need to get your staff buy-in
and decide what you are going to do and how you will do it. You
might face some resistance, but you need to start from
the C-level.”

28 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Align services, business models, and go-to-market strategy with
sustainable IT
Organizations will also need to align their services, business at all times. This means tools such as Gmail, Google Search,
models, and go-to-market strategy with their sustainable IT or Google Assistant, as well as YouTube video, will run only on
norms, in order to ensure that their focus on sustainability is clean energy.38 Apple, uses its trade-in programs – along with
consistently reflected in their overall business strategy. AppleCare and recycling programs – to divert 47,000 tons of
e-waste away from landfills and direct more than 11 million
Since 2017, Google has matched global electricity
devices to new users.39
consumption with 100% renewable energy and is the world’s
largest corporate buyer of renewable energy. By 2030 Google
aims to run their business on carbon-free energy everywhere,

Create a dedicated sustainable IT team


A dedicated sustainable IT team can drive greater progress. Currently only 39% of the organizations we surveyed have a
Simply putting sustainable IT initiatives with existing IT dedicated sustainable IT team. However, this rises to 95% in
teams – or making it a priority for a number of different the High Maturity Organizations.
teams within the IT function – may not provide the singularity
of purpose and coherence demanded by sustainable IT.

Stage 3: Implement – operationalize sustainable


IT initiatives
Ensure sustainability is a key pillar of software architecture
Multiple aspects of software architecture can improve an • Ensuring the software architecture includes a sustainability
organization’s sustainable IT capability. Taking a sustainability perspective and making deployment decisions based on
perspective with software architecture is as important as the carbon cost of infrastructure
focusing on performance and cost issues. Our research also
• Creating a balance between value for money, agility,
shows that most organizations that have been able to scale
compliance, and sustainability.
these approaches not only achieve a carbon reduction but
also additional cost benefits. Once the software architecture is available, the design of
specific software modules within the architecture must also
Bringing sustainability into software architecture means:
be viewed from a sustainability perspective. For instance,
• Understanding the environmental consequences of helping developers understand the carbon cost of their
software deployment and setting clear solution-related software modules and using green coding to produce
principles on sustainability algorithms that have minimal energy consumption.

29
Identify environmental impact of artificial intelligence during
design and training phase
As AI adoption grows, IT teams will need to manage the that include Stanford/Facebook,41 Allen Institute for AI,42
carbon footprint of these technologies. This will need to and Cornell University.43
happen during the AI design and also the training phase.
• Build the capabilities needed to measure AI’s carbon
Focus on this issue is growing, as our survey demonstrates:
footprint over its lifecycle
• 46% of respondents are looking to offset the carbon
• Conduct an impact analysis before deploying AI at scale.
footprint associated with training AI algorithms.
Scaling and training AI applications should be undertaken
• A third say that, as well as accuracy, carbon footprint is with a clear understanding of the environmental
a key determining factor for AI algorithms selection and consequences.
training. However, only a third of all respondents are
• Design and deploy efficient and sustainable AI applications.
aware of the carbon footprint/energy required to run AI
Most current AI applications focus on cost and operational
algorithms.
efficacies rather than carbon cost.
Our related research study, “AI for Climate Action,”40
• Collaborate with the AI expert community and understand
advocates the following key actions:
the best practices that are emerging from the academic
• Make use of publicly available tools to monitor AI’s carbon community as well as startups.
footprint, which have been developed by organizations

Make environmental impact a criterion to select IT vendors


Overall, only 43% of organizations say environmental impact Ensuring technology vendors are transparent and
is critical when selecting an IT vendor. This is a significant accountable on sustainable IT norms will also help
issue given the volume of IT and services purchased from organizations achieve their sustainable IT targets. A senior
external suppliers and outsourcers. However, this issue is executive for environmental sustainability says, “We have
given more prominence in the public sector, where over half a green procurement policy. There is a carbon price in all our
(57%) of organizations do use environmental considerations purchase decisions. We currently have it for larger investments
when selecting vendors. in infrastructure like boilers, but we are on our way to place a
carbon price filter into all our purchase decisions, including our IT
infrastructure.”

Only
39%
of the organizations have a dedicated
sustainable IT team.

30 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
41%
of organizations conduct sustainable IT
awareness sessions for their employees

Develop sustainability culture and employee behaviors


To have sustainable IT operations it is important for • Only 41% conduct sustainable IT awareness sessions for
organizations to ensure their employee are environmentally their employees.
aware and engaged. However, only 40% say that their
• Only 31% provide incentives for employees to use IT
employees show a desire to change the company’s practice
services in a more sustainable way. Incentives can change
when it comes to the initiatives that can support sustainable
employee behavior and create the right culture, ensuring
IT, such as employees turning their computers off during
IT is used in a way that aligns with the organization’s wider
non-working hours and reducing data usage by limiting the
sustainability goals.
number of emails and video streams. But the steps needed to
encourage employees are lacking:

Select and scale the right sustainable IT use cases


Our research shows that the sustainable IT use cases that the emission of one billion tons of CO2 from 2021 to 2024.44
organizations do manage to get to scale are not necessarily However, shifting to the cloud will not be sufficient in itself if
the ones that will deliver the highest carbon reduction. For applications are shifted as-is without being redesigned from
example: a sustainability perspective. Such a “lift-and-shift” migration
approach can negate some of the sustainability benefits of
• Switching to a “green” cloud architecture and framework
moving on-premises applications to the cloud as the original
has given those organizations that have been able to scale
application architecture may be resource inefficient and
the solution organization-wide a 19% cost savings.
carbon-intensive. Organizations should therefore redesign
• But, despite its potential, over one in ten have not even their applications before migrating to the cloud. In addition,
heard of it (15%) and 45% have not implemented it. the adoption of a green cloud architecture is equally
important as it reduces power consumption and improves
The most adopted use case is moving to enterprise cloud resource utilization in the cloud-computing environment.
applications. Adoption of cloud computing could prevent

31
Conclusion
As we look to a post-pandemic recovery, sustainability must
be at the core of the world’s efforts. However, while many
organizations are focusing on their organization’s overall
sustainability agenda, they are neglecting the critical issue
of sustainable IT. To give sustainable IT the attention it
deserves, organizations need to understand the carbon cost
of our digital world and accelerate the move to sustainable
systems. In this way, sustainable IT can play a central part
in tackling climate change and moving the world to a more
resilient and sustainable future.
To achieve this goal, organizations should focus on a
number of priorities. As a starting point, they need the
diagnostic tools, strategy, and a roadmap for sustainable IT.
Critical internal stakeholders will need to be fully engaged,
employee behavior will need to change, and enterprise
software architecture will need to shift to a sustainable
footing.
With this transformation in train, not only will the enterprise
IT’s footprint become greener, it will also unleash the
potential of smart technologies to play a key role in
driving environmental innovations and improvements in
sustainability performance.

32 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Research methodology
We surveyed 1,000 organizations with annual revenues in excess of USD1 billion to understand their
sustainable IT outlook.

Country of headquarters Revenue of organization – 2019

Norway USD 10 billion -


Singapore US USD 19.99 billion USD 1 billion -
Australia 6% 10% UK USD 4.99 billion
6% 19%
7% 8%
India 35%
Spain 7% 8%

7% 7% France 23%
China 7% 7%
Sweden Germany More than
7%
7% 7% USD 20 billion
23%
Netherlands Brazil
USD 5 billion -
Italy USD 9.99 billion

Title of respondent Sector

Technology
Technologist services/ Public Sector
CDO for Sustainability product firms
Insurance
CEO
5% Industrial 6% 10%
7% 12% Retail
CTO Head of Manufacturing 9%
7% Sustainability/ 10%
11% Chief 9%
CIO
7% Sustainability
Officer 10%
11% 9% Consumer
8% Telecom
Senior Head of Products
10%
Vice 10% Corporate 9%
11%
President 11% Social Automotive 9% 10% Banking
Responsibility
Director Vice
President
Head of IT Life Sciences Energy and Utilities
and Healthcare

33
References
1. IEA, “Global trends in internet traffic, data centre workloads and data centre energy use, 2010-2019,” June, 2020.
2. Microsoft. (n.d.) Project Natick. Retrieved from https://natick.research.microsoft.com/.
3. United Nations institute for Training and Research, “GLOBAL E-WASTE SURGING: UP 21 PERCENT IN 5 YEARS,” July 2, 2020.
4. IDC, “IoT Growth Demands Rethink of Long-Term Storage Strategies, says IDC,” July 27, 2020.
5. IDC, “IoT Growth Demands Rethink of Long-Term Storage Strategies, says IDC,” July 27, 2020.
6. Carbon Disclosure Project and the United States Environmental Protection Agency.
7. Capgemini Research Institute, “The AI-powered enterprise: unlocking the potential of AI at scale,” July 2020.
8. IEA, “Global trends in internet traffic, data centre workloads and data centre energy use, 2010–2019,” June 2020.
9. BBC, “Why your internet habits are not as clean as you think,” March 2020.
10. Microsoft, “Achieving 100 percent renewable energy with 24/7 monitoring in Microsoft Sweden,” November 24, 2020.
11. Google Cloud, “Announcing ‘round-the-clock clean energy for cloud,” September 14, 2020.
12. United Nations institute for Training and Research, “GLOBAL E-WASTE SURGING: UP 21 PERCENT IN 5 YEARS,” July 2, 2020.
13. European Environmental Bureau, “Coolproducts don’t cost the Earth,” September 2019.
14. The Guardian, “Fairphone 3 review: the most ethical and repairable phone you can buy,” September 18, 2019.
15. United Nations institute for Training and Research, “GLOBAL E-WASTE SURGING: UP 21 PER CENT IN 5 YEARS,” July 2, 2020.
16. United Nations institute for Training and Research, “GLOBAL E-WASTE SURGING: UP 21 PER CENT IN 5 YEARS,” July 2, 2020.
17. Global E-waste Statistics Partnership. (n.d.) Retrieved March 30, 2021 from https://globalewaste.org/country-sheets/
18. XD Ideas, “Yes, AI Has a Carbon Footprint – So How Do We Deal With It?” January 2020.
19. University of Massachusetts Amherst, “Energy and Policy Considerations for Deep Learning in NLP,” 2019.
20. Capgemini Research Institute, “Climate AI: How artificial intelligence can power your climate action strategy,” November 2020.
21. MDPI – Andrae et al.,“On Global Electricity Usage of Communication Technology: Trends to 2030,”February 2015 data updated by
the Shift Project.
22. World Economic Forum, “The world’s e-waste is a huge problem. It’s also a golden opportunity,” January 24, 2019; The Straits Times,
“World's e-waste 'unsustainable', says UN report citing China, India and US,” July 2, 2020.
23. Economic Times, “E-waste becoming global challenge, but initiatives by companies give hope for better future,” January 22, 2021.
24. Microsoft, “The Microsoft Cloud can save customers 93 percent and more in energy and carbon efficiency,” May 2018.
25. Microsoft – Stories, “The Microsoft Cloud can save customers 93 percent and more in energy and carbon efficiency,”May 17, 2018.
26. Energy Manager Magazine,“What next for data centres on the sustainability journey?” September 2020.
27. Techerati, “Carbon reduction through IT energy optimisation,” November 2020.
28. Data center knowledge, “Not Just for Google: ML-Assisted Data Center Cooling You Can Do Today,” November 2018.
29. Microsoft, “Microsoft finds underwater datacenters are reliable, practical and use energy sustainably,” September 2020.
30. Capgemini Research Institute, “AI for Climate Action,” November 2020.
31. Google blog, “Our data centres now work harder when the sun shines and wind blows,” April 22, 2020.
32. Google, “Our third decade of climate action: Realizing a carbon-free future,” September 2020.
33. Supplychaindive, “Ford plans to go carbon neutral by 2050,” June 24, 2020.
34. ESGToday, “UK Becomes First Country in the World to Make TCFD-aligned Disclosure Mandatory,” November 2020.
35. United Nations Climate Change, “Microsoft Global Carbon Fee | Global”
36. Microsoft, “We’re increasing our carbon fee as we double down on sustainability,” April 2019.
37. Cisco, “Pushing the Sustainability Envelope: Cisco Supply Chain to Cut 1 Million Metric Tonnes of Greenhouse Gas Emissions by 2020,”
June 2016
38. Google, “ Our third decade of climate action: Realizing a carbon-free future,”September 2020
39. Apple Inc, “Environment,” accessed January 21, 2020.
40. Capgemini Research Institute, “AI for Climate Action,” November 2020.
41. Stanford University, Facebook, Mila, McGill University, “Towards the systematic reporting of the energy and carbon footprints of
machine learning – a working paper,” February 2020.
42. Allen Institute for AI, Carnegie Mellon University, University of Washington, “Green AI,” July 2019.
43. ArXiv, “Quantifying the Carbon Emissions of Machine Learning,” November 2019.
44. IDC, “Cloud Computing Could Eliminate a Billion Metric Tons of CO2 Emission Over the Next Four Years, and Possibly More,
According to a New IDC Forecast,” March 2021.

34 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Capgemini's Net Zero Portfolio Offering Framework
Companies around the world are investing heavily in smarter about their resources in the products and services
minimizing their environmental impact and seeking to be they create. We have been building on strong foundations
more resource efficient. As a responsible business, we want in supporting our clients’ sustainability ambitions and have
to play a leadership role in ensuring technology creates a created our Net Zero Portfolio offering.
sustainable future, particularly enabling our clients to be

Net Zero strategy & new business models


Purpose, commitments, transformation path

• Defining organizations’ sustainable purpose


• Defining the vision and pathway to decarbonization
• Setting the right organization and governance to secure the decarbonization ambition
• Seizing the opportunity of new business models that drive change
• Engaging talents to support the low carbon transformation
COMMIT • Engaging stakeholders to support the low carbon transformation

Green experience Sustainable operations Sustainable IT


Products & services Manufacturing & Supply Chain Devices, Apps & Infra

• Designing and developing • Implementing sustainable Assessing and reducing


low carbon customer procurement strategy environmental impacts of IT:
experiences (sourcing, contracting,
• Green equipment
• Designing and engineering low traceability)
• Green apps
carbon intelligent products • Enabling low carbon energy
• Green infrastructure
• Designing and developing low supply (renewables, hydrogen,
carbon intelligent services Power Purchase agreement,
ACT • Designing, engineering and grid management)
Three levers to developing circular products • Decarbonating factories
make it happen & services by enabling sustainable
manufacturing
• Decarbonating supply chain
including network, planning,
logistics and packaging
• Implementing circular
supply chain

Data for net zero strategy


Data platform, monitoring & reporting

• Modelling environmental impacts (carbon assessment, lifecycle analysis, etc.)


• Providing access to ESG data across value chain (data platform & tooling)
• Monitoring and reporting ESG criteria (sustainable reporting as a service)
MONITOR & • Modelling and mitigating risks through Sustainable AI (CO2 emissions prediction for sales, carbon
REPORT pricing modelling, climate change impact modelling for portfolio management, etc.)

35
About the Authors
Benjamin Alleau Laurence Jumeaux
Executive Vice President, Group Sustainability Vice-president, Business Technology,
Offering Lead, Capgemini and Future of Capgemini Invent
Technology Global Lead, Capgemini Invent laurence.jumeaux@capgemini.com
benjamin.alleau@capgemini.com Laurence Jumeaux is responsible for the
Benjamin Alleau leads the technology consulting Sustainable IT offer for the group. She has
for Capgemini Invent and is the Sustainability been working for more than 25 years in IT
offering portfolio leader for the Capgemini transformation, including organisation, technology
Group. He has more than 20 years of professional and competencies. She developed the offer by
experience in consulting and strategic account combining this IT Tranformation expertise and new
management with a passion for leveraging assets to reduce the environnemental impact of IT.
innovative technologies to improve the core
processes of organizations. While he is skilled Jean-Baptiste Perrin
in matching business process and IT strategy, Vice President, Invent for Society Global Leader,
Benjamin’s main skill is to identify and implement Capgemini Invent
large-scale agile and tech-based initiatives with an jean-baptiste.perrin@capgemini.com
ecosystem of partners to achieve both business
Jean-Baptiste leads Capgemini Invent’s social
and strategic outcomes. Benjamin graduated from
impact business initiative : Invent for Society. With a
Télécom ParisTech in 1998 as an Engineer focused
strong background in public sector and sustainable
in Information, Communication Science and
development, he is a Vice-President within Citizen
Technology and joined Capgemini in 2011
Services at Capgemini Invent France and currently
from Accenture.
develops business synergies with our most recent
acquisitions including social impact agency Purpose.

Philippe Roques Courtney Holm


Executive Vice President and Global Leader of Vice President, Capgemini Invent
eAPM, Capgemini courtney.holm@capgemini.com
philippe.a.roques@capgemini.com Courtney Holm is Capgemini Invent UK’s newly
Philippe is an Executive Vice President and a appointed Vice President of Sustainability
Global Leader of eAPM (Economic Application Solutions. Her role is to shape the way Capgemini
Portfolio Management). He has more than 30 Invent creates long term, sustainable value for
years’ experience in IT transformation. He is the clients, enabling them with fresh perspectives
author of the report “Best practices for mastering and digital solutions so that they can play a
IT performance”. Over the last 10 years, Philippe transformative role in addressing planetary, people
has been developing eAPM. Powered by AI, eAPM and systems challenges. She has built up expertise
is a decision-making platform dedicated to answer in UK based, global businesses; starting with her
CIOs’ burning platforms. Sustainability subjects role as Tesco Client Director with sustainability
are more and more investigated by eAPM decision- specialists and in her previous role, as Global Head
making asset. The eAPM approach is recognized of Sustainable Technology, driving sustainable
by top analysts as a unique accelerator. Carbon growth using innovation and technology for
footprint calculation is leveraged by eAPM features Unilever. Courtney has a proven track record of
at application level paving the way to enlightened implementing innovative technology solutions
trade-off decisions and more innovations in the for sustainable development and is an expert in
near future. facilitating collaboration around complex
business challenges.

Gunnar Menzel Dr. James Robey


Vice President, Chief Technology & Innovation Global Head of Environmental
Officer, North and Central Europe, Capgemini Sustainability, Capgemini
gunnar.menzel@capgemini.com james.robey@capgemini.com
Gunnar is the Chief Technology & Innovation Dr James Robey has led the sustainability agenda
Officer for Capgemini North and Central Europe. at Capgemini since 2008, creating and driving a
He is one of 10 Master Certified Architects across broad ranging program to reduce the Group’s
the Group and is a lead author of Capgemini’s own environmental impacts whilst identifying
annual TechnoVision trend series. Gunnar has led opportunities to support Capgemini’s clients with
many IT transformation programs, helping and their own sustainability challenges. In addition, he
supporting large organisations in reducing their teaches at a number of leading universities on the
environmental impact. topic of Sustainable Business.

36 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Matthew Bradley Kristin Kiri Trier
Sustainability Director, Capgemini Director, Capgemini Invent Germany
matthew.bradley@capgemini.com kiri.trier@capgemini.com
Matt has led a number of key sustainability Kristin Kiri Trier is a passioned sustainability leader
programmes within the Capgemini Group, and researcher (Director, researcher rer.soc.oec)
developing pioneering sustainability strategies and with over 10 years of international experience
approaches through leveraging our capabilities and in Innovation & Sustainability Management. As
services, demonstrating the vital role technology Industry Lead Sustainability & Invent for Society
has in tackling the sustainability challenges we DACH, she investigates the right sustainability
face today and beyond. Matt is an active member strategy & business for Capgemini’s clients
of the DEFRA DeSa working party to support encouraging them to drive sustainability from an
the department in their Net Zero ambitions and end-to-end perspective with the right methods and
a co-author of the United Nations and DEFRA measurements according to the Paris Agreement.
Sustainable ICT Guide.

Vincent de Montalivet Arthur Arrighi de Casanova


Head of Sustainable AI, Capgemini Global Lead Sustainability & Energy Transition
vincent.de-montalivet@capgemini.com offering, Capgemini Invent
Vincent leads Sustainable AI, part of Perform AI arthur.arrighi-de-casanova@capgemini.com
–Capgemini Group AI & Analytics offering. He has Arthur leads the Global Sustainability offering team
been working in sustainable ICT for more than ten for Capgemini Invent. He has dedicated his career
years and has held IT project management and to championing Sustainability and Energy Transition
business development roles across consulting, initiatives for clients. He comes with a proven record
SMEs, local authorities and NGOs. in supporting global companies in the design and
implementation of positive climate action strategies
that allow them to not only play a pivotal role in
saving the planet but create innovation and growth
at the heart of the enterprise.

Clémence Lambert Jerome Buvat


Managing Consultant, Sustainable IT, Capgemini Global Head of Research and Head of Capgemini
clemence.lambert@capgemini.com Research Institute
Clémence has a proven track record in innovation, jerome.buvat@capgemini.com
sustainable business modeling and product & Jerome is head of Capgemini Research Institute. He
service design within Capgemini across many works closely with industry leaders and academics
industries including financial services and to help organizations understand the business
technology. She has recently accelerated the impact of emerging technologies.
structuring and development of the sustainability
offerings for Capgemini.

Subrahmanyam K VJ Sumit Cherian


Director, Capgemini Research Institute Senior Manager, Capgemini Research Institute
subrahmanyam.kvj@capgemini.com Sumit.cherian@capgemini.com
Subrahmanyam is a director at the Capgemini Sumit is a senior manager at the Capgemini
Research Institute. He loves exploring the impact Research Institute. He leads research initiatives
of technology on business and consumer behavior across sectors to help clients understand how
across industries in a world being eaten by software digital technologies disrupt business landscape and
consumer behavior.

Shahul Nath
Senior Consultant, Capgemini Research Institute
shahul.nath@capgemini.com
Shahul is a senior consultant at the Capgemini
Research Institute. He keenly follows disruptive
technologies and its impact on industries
and society

The authors would like to especially thank Roopa Nambiar, Abhishek Jain, Somya Verma, Neha Saxena, Jinil Raj, Anne-Violaine Monnie-Agazzi,
Michiel Boreel, Navin Goel, Sandeep Kumar, Arnaud Balssa, Ron Tolido, JACQUES MEZHRAHID, Ralf Schneider-Maul, Eric Fradet, Paul Dixon,
NICOLAS GAUDILLIÈRE, Jean-Marc DEFAUT, Ramesh Kumar Ramamurthy, Arthur ARRIGHI DE CASANOVA, FRANÇOIS SONNTAG, Heino
Hüttner, Markus Vogg, Frank Wammes, Stephan Taitz, Claire Egu, Sophie Heinrich, Mario Camarero Soriano, Avishek Mukhopadhyay, Golboo
Pourabdollahian, Maud Paré, Liza Belenky, Maxime Wyka, Sarah Behnam and Soumik Das for their contribution to this research.

About the Capgemini Research Institute


The Capgemini Research Institute is Capgemini’s in-house think tank on all things digital. The Institute publishes research on the impact of
digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely
with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom, and the
United States. It was recently ranked number one in the world for the quality of its research by independent analysts.
Visit us at www.capgemini.com/researchinstitute/

37
For more information, please contact:

Global

Cyril Garcia Benjamin Alleau Laurence Jumeaux


Capgemini Invent CEO Executive Vice President, Group Sustainability Vice-president, Business Technology,
cyril.garcia@capgemini.com Offering Lead, Capgemini and Future of Capgemini Invent
Technology Global Lead, Capgemini Invent laurence.jumeaux@capgemini.com
benjamin.alleau@capgemini.com

UK US Germany
Courtney Holm Sheila Patel Kristin Kiri Trier
courtney.holm@capgemini.com sheila.patel@capgemini.com kiri.trier@capgemini.com
John Kamler France
john.kamler@capgemini.com
Arthur Arrighi De Casanova
arthur.arrighi-de-casanova@capgemini.com

Subscribe to the latest research from the


Capgemini Research Institute
Receive advance copies of our reports by scanning the QR code or visiting
https://www.capgemini.com/capgemini-research-institute-subscription/

38 Sustainable IT | Why it’s time for a Green revolution for your organization’s IT
Discover more about our
recent research

Sustainability in energy The Automotive How sustainability is Conversations for


and utilities Industry in the Era of fundamentally Tomorrow: Edition 1
Sustainability changing consumer
preferences

Climate AI Digital Mastery The data-powered Scaling innovation


enterprise

AI in The AI-powered The Future of Work Agile at scale


Cybersecurity enterprise

39
About Capgemini
Capgemini is a global leader in partnering with companies
to transform and manage their business by harnessing the
power of technology. The Group is guided everyday by its
purpose of unleashing human energy through technology
for an inclusive and sustainable future. It is a responsible and
diverse organization of 270,000 team members in nearly 50
countries. With its strong 50 year heritage and deep industry
expertise, Capgemini is trusted by its clients to address
the entire breadth of their business needs, from strategy
and design to operations, fuelled by the fast evolving and
innovative world of cloud, data, AI, connectivity, software,
digital engineering and platforms. The Group reported in
2020 global revenues of €16 billion.
Get the Future You Want | www.capgemini.com

MACS_05032021_SD

The information contained in this document is proprietary.


©2021 Capgemini. All rights reserved.

You might also like