IBM tackles energy efficiency

Energy efficiency is one of the best ways to deal with the energy and carbon issue. It provides a long term solution, decreases demand on a per unit basis, decreases costs and resources and brings about conservation.

In March; IBM announced that it would use its considerable resources and expertise in  tackling the environmental area. Now, NYTimes reports that IBM is tackling the energy efficiency of data centres – it’s own and for others.

I.B.M. is beginning a $1-billion-a-year investment program intended to double the energy efficiency of its computer data centers and those of its corporate customers

By 2010, I.B.M. plans to double the computing capacity of its hundreds of data centers worldwide without increasing power consumption, by using an array of hardware, software and services. These include a new cooling system that stores energy and chills the data center only as needed; software to increase the use of computers and automatically switch them to standby mode when not needed; and 3-D modeling and thermal engineering techniques to optimize the air flow through data centers.

The rise of Internet computing is behind the rapid growth of data centers and the increase in energy use. The number of server computers in data centers has increased sixfold, to 30 million, in the last decade, and each more powerful machine burns far more electricity than earlier models.

With reports that the computers around the world are responsible for 2% of carbon
emissions in the world, equal to the aviation industry there will be more companies interested in this. In fact, there are reports that Google and others are buying up land near Hydro electric projects in the US to construct data centres and utilise the cheap energy is a clear trend that there is a demand out there for these kind of services.

IBM has the technology, innovation in hardware & software and consulting services to make this happen.

The News changes at News Corp

When a visionary like Rupert Murdoch speaks we need to listen…very carefully. From owning a small newspaper in Australia he now owns and heads one of the top media companies in the world. Now, he announces that News Corp has acknowledged the risks in Climate Change and wants to tackle it head on.

Rupert Murdoch gave a speech a couple of years back on how the media landscape has changed and how the audiences are different from before. He saw the trend, accepted the challenge and then, he bought MySpace.com. From nowehere, he owned one of the most popular sites in the world and making more money then he coughed up for the company with a single advertising deal with Google. As he says, he took a small risk and re-invented themselves.

Now, Climate change is similar for News Corp. Going carbon neutral is good. Cutting down energy is good. But Rupert realises that he can make a bigger difference. For good or bad, he has had a strong influence on his large media network across the world. Now, that influence may make a big difference.

In his speech he spells out the potential:

But becoming carbon neutral is only the beginning. The climate problem will not be solved by one company reducing its emissions to zero, and it won’t be solved by one government acting alone.
The climate problem will not be solved without mass participation by the general public in countries around the globe.

And that’s where we come in.

We’re starting with our own carbon footprint. Not nothing. But much of what we’re doing is already, or soon will be, little more than the standard way of doing business.

Our audience’s carbon footprint is 10,000 times bigger than ours… That’s the carbon footprint we want to conquer. We cannot do it with gimmicks. We need to reach them in a sustained way. To weave this issue into our content– make it dramatic, make it vivid, even sometimes make it fun. We want to inspire people to change their behavior.Imagine if we succeed in inspiring our audiences to reduce their own impacts on climate change by just one percent. That would be like turning the State of California off for almost two months.

And imagine if… we were able to take on the carbon footprint of our audience in Asia. Many of the most serious impacts of climate change will be felt there, and China and India’s emissions are rising rapidly. STAR is the number one Hindi-language network in the world. In India alone, we reach 100 million people.

The challenge is to revolutionize the message.

For too long, the threats of climate change have been presented as doom and gloom– because the consequences are so serious.

We need to do what our company does best: make this issue exciting. Tell the story in a new way.

The biggest challenge that I have seen with Climate Change and other sustainability issues is the marketing. Changing people’s behaviour is a herculean task. We have to wait and see how this strategy actually gets implemented but the signs are positive.

The real message in the speech is this: The unique potential– and duty– of a media company are to help its audiences connect to the issues that define our time. 

Shaping managers for eco management

Sushil Kumar, a professor at the Indian Institute of Management – Lucknow (IIM-L), one of the top of MBA schools in the country, writes about the newly introduced “Corporate Environmental Management and Carbon Markets” course.

Professor Kumar points to the increasing interest from large corporates from the Indian industry who are interested in the Clean Development Mechanism and he actually puts a number on the certified emission reduction (CER) units per year available in India right now at USD 2 billion.

In this scenario he believes it is important that B-Schools take up the initiative to train managers for a changing future.

The objectives of the course on Corporate Environmental Mangement and Carbon Markets are as follows:

  • To provide an overview of global and national environmental policy/law issues.
  • To discuss the Environmental Impact Assessment (EIA), Environmental Management Plan (EMP), and Environmental Management Systems (EMS).
  • To examine and analyse various strategies of environmental management.
  • To describe implementation of the Kyoto Protocol and understand Emission Trading Systems.
  • To understand the Clean Development Mechanism from the perspective of business in India.

This is great stuff. In my MBA, I had to struggle to find courses which would help to understand this field from a business  point of view better.

I decided to do an elective in Environmental and Resource Economics from the Economics department in Adelaide University which provided the theory and a self-managed course in Environmental Accounting provided a practical grounding. And, all through the MBA I took the time to read books, follow stories and people to connect the learnings in the MBA to the green new world of the future.  For more information on what I did and the books I read check the post Life Study – Continous Personal Development.

I hope more schools around the world take the tip from IIM-L.

Green Business in India

Dr. Nachiket Mor, Chairman, New Ventures India Steering Committee and Deputy Managing Director, ICICI Bank announces a 100 cr fund to invest in Green Businesses in India (hat tip: Karen Seeh).

Dr. Mor also announced Rs.100 crore investment towards the innovation and development of green businesses in India.

“The burden of climatic changes will be borne by the developing countries, therefore opening up a huge market for green business and the market of clean energy is going to double by 2015″, he said.

India has to maintain its GDP growth to become a developed country and green businesses have lot of growth potential for Indian economy, he added.

India offers a great opportunity for investors who can take risk, invest and take initiative and the current economical growth provides the right pace for venture funding to innovative projects, said Dr. T Ramasami, Secretary, Department of Science and Technology, Government of India.

New Ventures India’s goal is to achieve at least 15 million dollars worth of investments in 20 sustainable and green businesses by 2008. These include areas of green building materials, energy efficiency products and services, renewable energy and water products, said Deikun.

CII – Godrej GBC aims at creating India as one of the global leaders in green businesses and India has leadership potential in green technology in the cement, paper, green buildings and renewable energy sector, said S Raghupathy, Senior Director and Head CII – Sohrabji Godrej Green Business Center (Godrej GBC).

Dr. Mor is a visionary in this area. In Deeshaa, our team had interacted with him at different times and he spearheaded the entry of ICICI bank in the Micro finance and rural banking areas. This will be the new growth area for ICICI.

The Green Wave is spreading in all directions and India has great potential in this area.