Since 2007 the EU has been commendably doing everything in its power to drive the agenda, most notably at the Bali United Nations Framework Convention on Climate Change meeting in December 2007.
While the European Union is providing the political will, the action on the ground and investment in new technologies is coming from what some may consider a surprising source. US multinational companies are providing a great deal of the knowledge and manpower to bring about significant change globally both through new technologies and working practices and the influence they exert over their suppliers.
Recent figures back this up with US companies now investing around three times their European counterparts in alternative energy and clean technology. Nowhere is this more evident than in California where venture capitalists are using the expertise they have garnered from years of investing in promising IT and internet firms to support growth in clean technology. Investments in research and development in the various technology sectors, such as the ICT sector, are also spilling over to contribute to the development of clean technology. For example, more efficient batteries developed for laptops have been adapted to power the Tesla electric car.
On top of the technological advancements there is also an element of competition between rival companies to see who can be greener. Each week there is a new announcement of an environmental commitment or a new product or service being launched with a reduced environmental impact. Although some claims can be over the top, for the most part they represent real and ambitious commitments that, if fulfilled, can make a difference. Each announcement is pushing the bar that little bit higher.
Whereas in the past these actions have been fueled purely by a sense of community, now increasingly, being green is also good for the bottom line. For HP we estimate that around six billion dollars worth of business came as a result of our social and environmental credentials in 2006, and it would have even been more in 2007. Experience has shown that corporate citizenship is now often on a par with quality when it comes to customer choice, so for companies to be competitive it is vital that they walk the talk on environmental issues.
Recycling is another prime example of how doing the right thing can also positively affect the bottom line. HP recently made an engineering breakthrough that has enabled us to make printer cartridges out of recycled plastics which was not previously possible. Given that the price of oil is now over $100 a barrel this will obviously save us money. We also look to recycle or refurbish as much old IT equipment as possible for resale through holding take-back events where people can drop off their old computers and printers.
Beyond internal actions, one crucial area where multinationals can really make an impact is through their large and complex supply chains. If a large company is really serious about reducing its carbon footprint, it must take steps to educate and coax its suppliers into taking steps to reduce their impact. HP for example is committed to reducing its overall energy consumption by 20% by 2010 from 2005 levels. However around 80 percent to 90 percent of HP’s overall carbon footprint comes from its suppliers, that is why we are committed to providing the tools and training to reduce this figure.
There seems to have been a real sea-change in attitude in recent years. Companies have the presence and the resources to drive change in environmental actions on the ground globally and now crucially, more than ever, they have the will to act. Customers are increasingly voting with their wallets and buying products from companies that are seen as leaders in the environmental sphere. It is no longer a case of can a company afford to go beyond what is required of them by law, but can they afford not to.
About the author
Klaus Hieronymi
The author is Head of Environmental Business Management at Hewlett-Packard
Europe Middle East and Africa
The potential of ICT in mitigating climate change
In 1919 British aviators John Alcock and Arthur Whitten Brown made the first ever non-stop transatlantic flight. Since then we have seen a revolution in travel with over 25,000 transatlantic flights per month
The dramatic increase in aviation has led to a subsequent increase in emissions, as four people taking a return flight to New York from London emits 5,500 kilograms of CO2.
Currently aviation only accounts for three percent of the EU’s greenhouse gas emissions but emissions have grown by 87 percent since 1990. Although aircraft makers are producing progressively more efficient aircraft, the increased number of flights will quickly cancel out this gain. Many consider that the only way to effectively reduce emissions is to reduce the number of flights.
Organisations such as the WWF believe one answer lies in the use of videoconferencing. The progress made in this field has meant that virtual meetings are unrecognisable from the grainy pictures and delayed feed of a few years ago. HP’s state-of-the-art HALO studio even called on the expertise of Dreamworks, the makers of Shrek, to make the virtual meeting as close to the real thing as possible.
“Highly secure, networked, videoconferencing solutions such as HALO are business communication tools of the future, said Jan Riecher, vice president, Commercial Enterprise, Imaging and Printing Group, HP EMEA. “The advantages are obvious in terms of benefits to the environment through decreased travel, time savings and increased productivity. For instance, HP finished one of our own projects nearly six months ahead of schedule and cut 44 international trips using HALO studios as the tool to communicate. We plan to expand our use of HALO tools in Europe in the future through customer-led opportunities and HP investment.”
The WWF sees ICT solutions, such as videoconferencing, as a significant contributor to reducing overall greenhouse gas emissions. Whereas ICT is widely considered to be one of the villains, it is in fact only responsible for approximately two percent of global CO2 emissions. What interests the WWF is ICT’s potential to chip away at the remaining 98% of emissions.
Dennis Pamlin, Global Policy Advisor from the WWF and an expert in the field agreed, “it seems unlikely at first, but when you consider the changes that have happened over the past few years it really is quite obvious. People can now fill in their tax forms on-line, you download music rather than buying a CD saving on the need for materials and shipping and rather than sitting in traffic for two hours a day people can work from home.”
The potential contribution of ICT is causing excitement amongst business, NGOs and policy-makers alike. The European Commission is expected to introduce policy measures to encourage the deployment of ICT equipment for energy efficiency. The WWF is also currently working on a project to identify some one billion tonnes worth of CO2 reductions using ICT solutions alone.
But there remains the question of what ICT is doing to reduce its own carbon footprint which whilst small, is not insignificant. IDC estimates that the number of servers worldwide will increase from 24 million in 2006 to 35 million in 2010. The ICT industry, and HP in particular, appears to be taking this very seriously. HP has developed state-of-the-art Power and Cooling Technology which almost halves the amount of energy required to keep servers cool. The company has also committed to reduce the energy consumption of their PCs and desktops by 25 percent by 2010.
It is unlikely that everybody will give up flying, but now given the advances in technology there is more of a choice. Faced with the decision to either spend twenty hours on a plane for an hour long business meeting, or walking down the corridor and having a face-to-face meeting using a HALO room, the choice seems an obvious one, and it will hopefully have positive ramifications for the environment.