четверг, 23 февраля 2012 г.

The economic benefits of green IT.

_, April 07, 2011 (Pakistan Observer): During the last decade, growing concerns over the global environment and subsequent effects of climate change that is blamed on human population boom has led to the establishment of green revolution. Initially, considered more of a loose movement of environmentalists and academicians, this green revolution literally has grown into a global phenomenon that has finally involved government agencies and private industries where once-traditional operations have been infused with ecologically friendly processes, usually in the form of decreasing expulsion of greenhouse gases and waste water.

Investing in green IT But green revolution has expanded to different sectors from agriculture, manufacturing, power distribution, water resource management, traffic systems, construction, among others. These sectors have adopted green systems that are primarily for long-term sustainable development. Such adoption is no longer a way for industrialists to make environmentalists happy but it is one that should enable them to realize the cost-benefits of new, more efficient, and environment friendly processes.

Based on empirical data from academic and government sources, adoption of eco-friendly green programs could result in positive gains in a countrys economy. The United Nations Environment Program released a report in late 2010 proving that investing on green technology - that is, processes that enhance the planets natural capital : would have long-term benefits in terms of ensuring availability of natural resources for any industry, more jobs, and even more efficient industries that produce more for less raw materials.

One sector that has fully embraced green technology is the information and communications technology (ICT) industry. This sector has become the backbone of nearly all industries as it builds on the need for faster and more efficient transactions at lesser costs. In fact, an International Data Corporation study revealed that ICT investments went up to US$3 trillion in 2010. This already points to increasing demand for ICT in various businesses.

Economic concerns on ICT

With ICT having a lot of potential going for it, it is also a very resource intensive industry, consuming space and power for use in communication and data transfer. Majority of ICT investments are in businesses and most of these are located in buildings, which are the worlds primary consumers of electricity, rated at about 40 percent overall. This will not decrease especially as more companies, homes, and government rely heavily on ICT infrastructure for basically all modes of transactions.

A report in 2010 by Connection Research showed that greenhouse gas emissions from the ICT sector would increase slowly over the next decade until 2020.

Furthermore, the study showed that green ICT implementations are minimal or rudimentary at best. Surprisingly, the Connection Research report only covered the United States, United Kingdom, Australia and India, which are among the biggest consumers of ICT. This implies that companies and other institutions in these countries have yet to fully comprehend the need for green ICT.

ICT as key driver in green revolution

Despite what seems to be the ICT industrys own negative, albeit relatively minimal environmental impact and the slow process as to which major industries are implementing green ICT, there are still areas where ICT itself can still be a key tool in ensuring a sustainable green economy.

The European Commission identified several key roles where ICT can be used to achieve these goals.

For instance, smart electricity grids and metering systems improve distribution of electricity to areas where they are most needed, thus reducing wastage of power that could amount to millions if not billions of dollars. Likewise, water management systems can also be controlled using intelligent ICT systems in order to distribute just the right amount of potable water to different locations. Sewer systems can also be monitored and maintained to reduce pollution, which costs money to manage through traditional means.

Buildings, which account for nearly 40 percent of all power being used, could cut down consumption by as much as 20 percent if automatic lighting and air conditioning systems are put in place. Even the construction of new buildings can be more efficient using ICT instruments that help engineers visualize the physical infrastructure as well as lay out all the utility requirements (electricity, cable TV, Internet and telephone connections, water, etc.) from the design phase.

Businesses can also increase their efficiency using ICT technologies. SAP has invested on business application software that manage resources efficiently. Increasing productivity at only a fraction of the cost means that companies can use the savings on investing in their core business or even expand their operations.

From an economic standpoint, as stated in a study by the World Economic Forum, the impact of ICT on the economy is not direct but through the benefits gained from its utilization in various sectors. While it is taking time for many industries and governments to implement these green ICT infrastructures, researchers all agree that green ICT will not be a fad but a core aspect of all businesses. However this is done would still result in long-term sustainability not just for businesses but more importantly for the environment.: The writer is Country Head, SAP Pakistan

(THROUGH ASIA PULSE) 07-04 2011

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