Big Green Innovations - SMTA

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Big Green Innovations - SMTA

Energy, the Environment and Sustainability

Big Green Innovations

Innovation that matters –

for our company, and for the world

slnunes@us.ibm.com

© 2008 IBM Corporation


All new levels of media attention, public awareness, and

political pressure has made sustainability everyone’s business.

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© 2008 IBM Corporation


Rising concern over climate change is one of the significant

forces reshaping governments and societies around the world.

Changing Demographics

Longer life spans, lower birthrates, aging population, dynamic work force

Accelerating Globalization

Developed countries erosion of industrial jobs, growing migratory work force

Rising Environmental Concerns

Climate change, flood, droughts, pollution, long cycle times for correction

Evolving Societal Relationships

Integrated delivery of secure services anywhere at anytime, blending cultures

Growing Threats to Social Stability and Order

Terrorism, safety and security, immigration, regional conflicts

Expanding Impact of Technology

Infrastructure, collaboration, interoperability, pace of technology

Source: Government 2020, IBM Institute for Business Value, April 2008

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© 2008 IBM Corporation


The world must drastically improve resource management to

avoid economic, environmental, and political catastrophes

• Global energy demand is fast outstripping global supply in an era of

rapid worldwide development (particularly China, India).

• At present rates of consumption, minerals due to run out within 50 years

are copper, lead, mercury, nickel, gallium, tin and zinc.

• One-third of world’s population is experiencing some form of water

stress today.

• Soaring food and energy costs pushed consumer prices up at the second

fastest rate in a quarter-century in the U.S.

• The Intergovernmental Panel on Climate Change (IPCC) calls for a 50-

85% reduction in CO 2

emissions by 2050 to mitigate the risks of climate

change.

• The G-8 countries (U.S., UK, France, Germany, Italy, Japan, Canada,

Russia) agreed to a 50% reduction in greenhouse gas emissions by 2050.

Sources: “The Greening of Government: A Study of How Governments Define the Green Agenda”, Institute for Electronic Government, IBM Corporation,

Feb 2008;, US Department of Labor, July 16, 2008, The IPCC Fourth Assessment Working Group Reports: Key Findings, Dr. R. K. Pachauri, Chairman,

IPCC, Sept 2007; The Wall Street Journal, July 10, 2008; Mtal stocks and sustainability R. B. Gordon*, M. Bertram and T. E. Graedel, Proceedings National

Academy of Science, Jan 2006

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© 2008 IBM Corporation


Across the board, information technology can make enormous

contributions to improve energy efficiency, improve water

efficiency, and reduce greenhouse gases.

The Bad News: IT accounts for

2% of global CO 2

emissions

The Good News: IT can significantly

contribute to control and reduce the

98% of CO 2

emissions caused by

other activities and industries

Source: Gartner, Green IT, October 12, 2007

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© 2008 IBM Corporation


Keystone Strategies

World Greenhouse Gas Emissions Flow Chart

Source: World Resources Institute

6 Big Green Innovation IBM Confidential March, 2007

© 2008 IBM Corporation


Better information flow is critical to improving

environmental intelligence and strategic decision support

Nature of Managing Constrained Resources Must Evolve

From

Manual Data Collection

Managing in Isolation

Intermittent Measurement

Multiple Data Sets

“Guesstimation” Tools

Commodity Pricing

Tactical Problem Solving

To

Automated Sensing

Managing Collaboratively

Real-Time Measurement

Data Integration

Modeled Decision Support

Value Pricing

Strategic Risk Management

“One barrier to better management of water resources is simply lack

of data — where the water is, where it's going, how much is being

used and for what purposes, how much might be saved by doing

things differently. In this way, the water problem is largely an

information problem. The information we can assemble has a huge

bearing on how we cope with a world at peak water.”

Source: Wired Magazine, “Peak Water: Aquifers and Rivers Are Running Dry. How Three Regions Are Coping”, Matthew Power,

April 21st, 2008

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© 2008 IBM Corporation


IBM has developed a diverse set of innovative

technologies and services to address climate change.

The IBM Energy and the Environment Initiatives apply innovative technology and

services to help clients grow in a carbon conscious world – innovation that matters

to businesses, governments, people and the planet

• Energy Efficient Technologies and Services

• Mobility Services

• Intelligent Transportation Systems

• Intelligent Utility Networks

• Carbon Management

• Advanced Water Management

• Alternative Energy

Ongoing update at ibm.com/green

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© 2008 IBM Corporation


Energy Efficient Technologies and Services

IBM has taken a holistic approach to addressing energy

efficient technologies and services.

Diagnose

Facilities

Compute

Resources

Cooling

Innovations

Consolidation &

Virtualization

Active Energy

Management

Distributed

IT

Responsible

Disposal

Demand-side

Efficiency

Monitoring &

Verification

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© 2008 IBM Corporation


Customers achieve significant results using energy

efficient technologies and services.

• Average achievable energy

savings greater than 40%

• Data Center Energy Efficiency

assessment shows average

payback < 2 years

• Average utilization rates

increased 2X to 4X

• $1 energy savings drives another

$6-8 in operational savings on

average

• Efficiency projects ranged from

2,000 sq. ft. to 180,000+ sq. ft.

Energy Efficient Technologies and Services

Source: Data from subset of IBM engagements with over 2000 clients where savings have been quantified.

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© 2008 IBM Corporation


Using IT to transform business processes

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© 2008 IBM Corporation


Carbon Management

Carbon management is one of the biggest

challenges we will face under mandates

and deadlines to reduce carbon emissions.

Customer and Product

Strategy

How do we …

• communicate green

credentials to citizens

• exploit new green market opportunities

• design products to be more carbon-friendly

• optimise benefits throughout the full product

lifecycle

IT

How do we …

• integrate carbon management into IT

Strategy

• identify which areas of IT provide the

greatest opportunities for carbon

reduction

• reduce and minimize carbon in each

area of IT – both now and in the future

• optimise to get more IT capacity for less

carbon

• how do we address immediate

capacity/power issues

What is ...

• the focus of carbon reduction efforts

• the linkage between carbon strategy and

business strategy

• an integrated plan of action

• the financial plan for a carbon program

Supply Chain

How do we …

• make our end-to-end operations more

carbon-friendly

Property

How do we …

• reduce carbon in

– buildings and offices

– production plant

– distribution centers

• manage and improve carbon footprints

• get to a more sustainable property portfolio

People

How do we …

• establish and implement effective green

HR policies

• engage with our employees on the

green agenda

• enable and sustain behaviour change

across our organization

Information

How do we …

• measure and monitor information on

carbon consistently and efficiently

• demonstrate regulatory and policy

compliance

• implement a carbon scorecard and key

performance measures

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© 2008 IBM Corporation


Business Challenges of Low Carbon Economy

Confederation of British Industry Climate Change commissioned a report on how businesses

need to adapt to a low carbon economy - adoption of the UK Climate Change Bill published Nov 2007

Company priorities to operate in a future low Carbon Economy

1. There will be a need to modify existing business models to include green

and carbon emission reduction at its core - in the low carbon future, companies

will have to be green to grow

2. Redouble their focus to improving energy efficiency, particularly in the

areas of buildings & transportation

3. Focus within Supply Chain and employees to make the workplace more able

to cope with climate and other changes

4. Companies need to be able to measure their carbon footprint, and

develop effective reporting systems and procedures that set the benchmark for

reporting carbon emissions performance in the future

•Source CBI Report “Climate change : Everyone’s business” : Nov 2007

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© 2008 IBM Corporation


The core of Carbon Management is the carbon model and our Green

Sigma TM methodology

• Typical supply chain optimization only

considers monetary costs and service

levels. Including broader environmental

costs and constraints can change the

picture.

– Carbon trading, if and when it happens, will

change the ROI calculation for CO 2

reduction,

as CO 2

will then have a price

• IBM’s supply chain model will

– Quantify the cost and carbon impact of

business and supply chain policies.

– Identify areas where carbon and cost

reduction can be achieved simultaneously

(e.g. reduced wastage, re-work etc)

– Help to manage trade-offs between cost and

carbon imperatives where these do not align

– Include the costs and benefits of carbon

trading in any optimization

Transport

Options

Packaging

Options

Process Options

CO

CO 2

2 CO 2

Supply Chain Cost

$ $

$ $ $

Inventory

Policy

Options

Design/

Sourcing

Options

Energy

Options

Carbon Trading

(mandatory in EU from 2008; 20XX in US

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© 2008 IBM Corporation


Carbon Initiatives alone are not enough …

There are interdependencies on water and energy management also

Nuclear Power

Hydro Power

Reforestation

Oil Production

Alternative Fuels

Carbon

CO CO CO CO 2

CO 2 2 CO2 2 2

CO CO 2

CO CO

CO 2 CO CO2 2

2 2 2 2

CO 2 CO 2

Coal Power

Alternative Power

Water

Energy

Hydro Power

Agriculture

Nuclear Power

Water Pumping

• Water used in oil production (4 parts water to 1 part oil) and ethanol production

• Approx. 40% surfacewater in USA is used to generate electricity (coal, nuclear, hydro)

• ~3% of electricity generation (in USA) is used just for pumping/moving water

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© 2008 IBM Corporation


Snapshot of Global Water Stress

W

WSI – Water Stress Index; limited access to water, or available water is not potable

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© 2008 IBM Corporation


• Address the challenges of water

availability, quality, purity, distribution,

provisioning, operations and consumption

• Measure, monitor and manage water

usage and related costs for water utilities,

water boards and private industry

• Leverage IBM internal best practices –

including an IBM manufacturing site which

reduced water usage by 27% while

increasing manufacturing output by over

30%, saving millions of dollars a year in

energy, water and treatment costs

• Manage and maintain water infrastructure

and assets

• Deep Thunder for weather event modeling

and operations management

• IBM Global Center of Excellence for

Water Management in the Netherlands

and Ireland

Advanced Water Management

Advanced water management is an imperative in a world

faced with scarce water resources.

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© 2008 IBM Corporation


Advanced Water Management

Case Study: The Beacon Institute is creating the first technology

based river and estuary monitoring and forecasting network.

Mission: “To create a global center for interdisciplinary research, policy-making

and education regarding rivers, estuaries and their connection with society.”

• Creating REON (River and Estuary Observatory Network) with the goal of turning

all 315 miles of the Hudson River into a distributed network of sensors that will

collect and analyze biological, physical, and chemical information

• Will link models to understand phenomena across a range of spatial and

temporal scales

• IBM as the IT partner will collaborate

on the design of a sensor

backbone network (hardware

and software) to support the entire

length of the Hudson River

and estuary


Collaborative Innovation

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© 2008 IBM Corporation


Case Study: Smart Bay, Ireland - integrated data & information with

advanced visualization to support multiple users in environmental

monitoring/management

• An integrated data/information environment and portal

solution using existing sensor data feeds (fishing and

aquaculture)

– General public/water quality

– Public policy

– Research

• A federated data environment to support large volumes of

heterogeneous data and multiple user requirements,

including

– Sensor-based data (including real-time/streaming)

– Syndicated data sources (including weather)

– Large scale modeling and simulation data

– Geospatial information (GIS)

• New advanced visualization technologies and capabilities

will be developed and implemented for very large and

complex data sets

– To improve usability

– To visualize uncertainty

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© 2008 IBM Corporation


Case Study: IBM Burlington, VT & Fishkill, NY – Advanced Water

Management for Process Control and Cost Savings

• IBM utilizes well integrated data

acquisition, storage and visualization

systems to tightly control water using

processes, improved efficiency and

reduced cost

• SPC is used to “crunch” vast amounts

of operational data and present results

in an efficient and concise interface

Green Sigma Dashboards convey Key

Process Indicators

• “Total Cost” of water which includes;

raw water, energy, chemicals,

maintenance and labor, is developed

and used to drive efficiency projects

with attractive ROIs

• IBM has achieved over $3M in annual

savings by reducing water usage by

27% and increasing manufacturing

production over 30%

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© 2008 IBM Corporation


Alternative Energy

IBM applies intellectual property and research to

the quest for alternative energy.

• Leverage IBM know-how in thin

films, semiconductors, silicon,

nanotechnology, materials

science and cooling for

photovoltaics

• Concentrator photovoltaics

research 1

• Applied research for

desalination and water

purification

Source: 1) IBM Press Release, May 15, 2008, “IBM Research Unveils Breakthrough In Solar Farm Technology: “Liquid Metal” at the Center of

IBM Innovation to Significantly Reduce Cost of Concentrator Photovoltaic Cells (http://www-3.ibm.com/press/us/en/pressrelease/24203.wss)

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© 2008 IBM Corporation


Opportunities in photovoltaics

• 90% of market is still Silicon based

• New focus on low cost synthesis, solar paint, building materials

as substrates

• Strong growth projected for many years

Key technical areas in IBM:

• Solution processed Cu-In-Ga-Se (CIGS) – focus on low temperature

• Advanced Si photovoltaic devices

• Cooling of PV cells in concentrator applications (>2000 suns)

• Photoelectrochemical conversion solar fuels

• Nanostructured PV

Grid parity expected 2015-2025

“economy-of-scale” extrapolation

JP Morgan (from RP Williams, IBM)

p-Si overlayer

Top Electrode

n-Si nanowire

TCO

Substrate

Future cost breakthroughs will appear thru radical manufacturing

approaches tied to nanotechnology

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© 2008 IBM Corporation


IBM has a long history of environmental tradition and leadership.

1976: Think!, the company

magazine, devoted an

entire issue to IBM’s energy

conservation and

environmental programs

1990: Think! Devoted an entire issue to IBM’s

environmental programs – beginning IBM’s annual

Corporate Environmental Reporting

44%

1991: Established IBM’s

Product

Stewardship

Program

96%

2006: Amount of IT product and product waste

processed by IBM’s product End-of-Life

Management operations

hat was reused or recycled

1997: IBM become the first major multi-national to

earn a single global registration to the ISO 14001

environmental management system standard

1990 - 2006: Between 1990 and 2006, IBM’s global energy conservation actions

reduced or avoided CO 2 emissions equal to 44% of its 1990 emissions

2006: IBMers

“Jam” on

innovation for a

better planet, and

IBM $20M, Big

Green Innovations

1971: T. J. Watson

Jr. issued IBM’s first

corporate policy on

environmental

protection

1989: IBM offers its

first product takeback

program

95%

1987 - 2006: Reduction in hazardous waste generation since the 1987 base

year of this pollution prevention metric

1992: IBM becomes

charter member of

Energy Star Program

1994: Established

Global Materials

Recovery Center

Network for product reuse

and recycling

2005:

Global

Innovation

Outlook 2.0

2007: Intelligent

Utility Networks,

Intelligent

Transportation

Systems,

Project Green

Collaborating to develop solutions …

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© 2008 IBM Corporation


Technical & business innovation will be required if we are

to make global progress

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Ubiquitous

Sensing

Advanced

Metering

More “granular” data (multiple

spatial and temporal scales)

Environmentally

aware

decisions

Legacy Integration

Analytics,

visualization

Insight

Application

Integration

“Information

Advanced

Utility” impact

businesses

assessments

Innovation Will Require

• Radical Transformation of Entire

Industry Sectors

– Organizational, intellectual property

and regulatory barriers exist and in

some cases prevent sharing &

integration of information

– Impact of carbon tax or carbon capand-trade

system may influence

supply chain practices

• Examination of Complex Politics

& Policies Related to

Environment Management

– Both a technical and an emotional

subject, with unpredictable decisions

and outcomes

– Businesses must be prepared to

respond to likely changes and adapt

business models as necessary

© 2008 IBM Corporation


What Will It Take

• Improved Information Flow

– Integration of disparate systems,

enabling federation of data across

independent data sources

– Creation of Unified Modeling and Open

Standards to enable sharing of

information in common format

– Implementation of Collaborative tools, for

technical and social interaction

• Application of Systems-Level

Thinking Both Technically &

Culturally

– Encourage and enable passionate, multidisciplinary

communities to solve

complex problems holistically

– Foster understanding of decision

impacts across various segments of the

ecosystem

Changing the IP Landscape

For a knowledge-based economy

Enabling Collaborative Innovation

For multi-disciplinary skills and more thoughtful solutions

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© 2008 IBM Corporation


“You can't make a product greener,

whether it's a car, a refrigerator or

a traffic system, without making it

smarter - smarter materials,

smarter software or smarter

design.”

Tom Friedman, The Power of Green

New York Times, April 15 2007

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© 2008 IBM Corporation


Thank-you!

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© 2008 IBM Corporation

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