Greening Your Business Through Technology - WITSA

2ExecutiveSummaryClimate change is posing an increasingly significant risk to the way in which we live today.Governments from around the world are coming together to discuss ideas and solutions on howto combat climate change. Some economies have already developed programs underpinned bylegislation that are driving businesses to adopt more sustainable business practices.Recent changes in Australia have included introduction of the National Greenhouse and EnergyReporting (NGER) Act by the Australian Government and the signing of the Kyoto Protocol byPrime Minister Kevin Rudd on 3 December 2007.The Kyoto Protocol targets aim to reduce carbon emissions by 20 percent in 2020 and 60 percentin 2050 through the implementation of a Carbon Pollution Reduction Scheme (CPRS) across theAustralian economy by 2010.As such carbon emission reduction regulations and polices begin to impact business, new marketforces will provide an incentive to adopt greener operations.Though the fundamental business principles will not change, regulatory and compliance pressuresthat are targeted at reducing carbon emissions will influence where future investments are madeby business.In order to establish the business case for adopting GreenIT products and services withinorganisations, it is important to understand the different driving forces from both an ethical andcommercial perspective.Consumers today are increasingly being driven by ethical concerns and are evaluating the overallenvironmental impact of goods and services before making a final decision to purchase. Givingpreference to organisations that shift towards ‘responsibility’ from an overall business and brandmanagement perspective has led to green procurement becoming a new market imperative.Conversely, government is increasingly focused on saving money (see Gershon Report) 5 , sothe cost benefits associated with adopting GreenIT products and services is becoming moreimportant. In evaluating the different options available, its important to consider the end-to-endlife cycle costing (LCC) instead of looking solely at cost. Even though some products and servicesmay be more expensive from an initial cost perspective, the overall cost may be less when theenvironmental costs associated with waste treatment are considered, hence being seen as more‘valuable’ in the long-term.This development is recent and has prompted a major call to action. So, whatever the reasonswere for organisations previously putting off ‘going green’, these reasons no longer holdground given the wide spectrum of drivers from government, business ethics and commercialperspectives. As community levels of education increase on the impact of climate change, the‘do nothing approach’ becomes progressively more irresponsible.The second tier of this argument is that the earlier organisations invest in GreenIT practices,the better the RoI and general business outcomes.5 Review of the Australian government’s use of information and communication technology, Sir Peter Gershon CBE FREng, August 2008.Page 13