Thursday, 28 October 2010

Gartner and WWF Assess Low-Carbon and Environmental Leadership in the ICT Industry 2010

I will put up the report the 25th of December here on my web, until there enjoy the press release and download the study from Gartner. The press release below and original press release is here
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Egham, UK, October 28, 2010
The results of an assessment of 28 global information and communication technology (ICT) providers by Gartner, Inc. and WWF Sweden revealed that the ICT industry sees climate change and sustainability as an emerging opportunity. While it identified the emergence of a group of market makers, the industry as a whole fell short of making climate change and sustainability part of its core business.

"2009 and 2010 have seen rapid progress in the maturity of ICT vendors both in terms of their internal environmental programs, and the development of a set of low-carbon market offerings," said Simon Mingay, research vice president at Gartner. "We now have a clear group of market makers formed by BT, IBM, Cisco, Ericsson, HP, Fujitsu, and SAP who we believe are beginning to build a distinguishing capability. However, at this stage they have not really taken the issues associated with climate change and sustainability into the core of the business and their strategies, and they continue to deal with it within the mindset of incremental improvement and short-termism."

Gartner and WWF invited 28 global ICT providers* to participate. Nineteen chose to participate by providing the required information. Those companies include: Accenture, Alcatel-Lucent, BT, CSC, Cisco, Dell, Deutsche Telekom, Ericsson, Fujitsu, HP, IBM, Lenovo, Microsoft, SAP, Sun Microsystems**, TCS, Verizon, Wipro and Xerox.

The survey, the second of its kind, examined ICT providers' commitment to managing the environmental aspects of their internal operations and their supply chain. Very importantly, it also explored their capabilities in advancing the low-carbon solutions markets and developing products and services that will help them and their customers reduce their greenhouse gas emissions or increase their energy efficiency.

"The good news is that we don't see anyone going backwards," said Mr. Mingay. "But, across every category*** there are clearly a group who are on the move and a group who seem to be treading water relatively." IBM, Fujitsu, HP, Cisco and BT ranked in the top five positions, while others such as Verizon and Lenovo did not score particularly well, and held the No. 19 and No. 17 spots, respectively. Mr. Mingay said Microsoft, ranked in the No. 13 position overall, is making reasonable progress, from a relatively weak starting point.

The survey revealed that service and software providers have improved their position from 2008, but remain relatively immature in terms of both their internal programs, as well as their market offerings. SAP, ranked No. 8 overall, did substantially better than any of the other large software and services organizations. SAP has put sustainability at the heart of its communications and closer to its strategy over the last 18 months. The survey also found that Fujitsu, ranked No. 2, is the only ICT provider to set a long-term context to its initiatives, and want to help reduce more emissions in society through low carbon IT solutions than their own emissions. Fujitsu has set itself a carbon reduction goal in terms of its impact on its customers versus a target related to their own emissions. Finally, ICT providers in Asia (not Japan) are still lagging overall, but making some dramatic improvements, which Gartner analysts anticipate will continue.

The dominance of talking in 2008, when Gartner and WWF Sweden completed their first assessment has evolved into much more action in 2009 and 2010. "We now have a number of ICT providers with an actual low carbon portfolio and a readiness to move from an incremental contribution into the center stage when it comes to providing society with low carbon solutions," said Magnus Emfel, director of Climate Program, WWF Sweden. "It is precisely this shift — from ICT as a minor contributor to global emissions to a major enabler of low-carbon solutions — that we need to see replicated in business strategies and urban planning, if we are to succeed in the transition to a low carbon economy and stabilize the climate."

The survey also found that inter-industry partnerships are starting to emerge, particularly from ICT providers including Cisco, Alcatel-Lucent and IBM. This is a very significant and important step in ICT's ability to develop commercially viable solutions for a low-carbon economy, particularly around smart grid, intelligent buildings and smart city infrastructures.

When looking at ICT's own impact, and the focus on the 2 percent of ICT's global CO2 emissions, it has become evident that hardware vendors, such as HP, Ericsson and Fujitsu are increasingly focused on the energy efficiency of their equipment and making it a core business, while for software and services organizations this is not the case. Very few vendors are thinking about dematerialization in any real systematic way, though Xerox is one of the few exceptions that is reusing and recycling parts.

Collectively the ICT industry has enhanced its game in terms of providing solutions in other areas, e.g. transport and buildings, to help reduce the 98 percent of global CO2 emissions that are not generated by ICT, but that can be reduced with the help of smart ICT.

"Although the leaders in the Carbon Delivery sections such as IBM, Fujitsu, HP, BT, Ericsson and Cisco have begun to build structural capabilities, governance, and allocated organizational resources to addressing the opportunities of a low-carbon economy, their commitment still falls short of being integrated into their core business," Mr. Mingay said.

Gartner's client interactions and analysis of the survey suggests this is due to a lack of spending on low-carbon and sustainability-related solutions by the public and private sectors, except in the area of smart grids, but also to the ICT sector's conservative approach built on incremental changes in existing technologies and capacity.

"We were surprised at the lack of disruptive innovation, with the majority of responses essentially focused on the incremental 'client-driven' development," said Dennis Pamlin, co-author and independent consultant working for WWF Sweden on this project. "If the ICT industry is to deliver on its promise of making a significant contribution to enabling a transformation to a low-carbon economy it is going to require substantially more than marginal incrementalism."

"No one is making any serious effort to extend the life of equipment beyond the basics one would expect of improving reliability and quality," said Mr. Mingay. "But, with the management of e-waste and rare earth metals rapidly turning into a substantial global challenge and the growth of emerging markets the industry needs to be giving much more serious thought to dematerialization, recycling and longevity."

Additional information is available in the research note "Summary Report: Low-Carbon and Environmental Leadership in the ICT Industry by Gartner and WWF, 2010." The report is available on Gartner's website at http://www.gartner.com/resId=1456140.