Business leaders across India now face the daunting task of becoming more sensitive to their companies’ energy consumption and environmental impact. Organizations are realizing that being green is good for business, positively affecting brand image and fast becoming a competitive differentiator for customers, partners and suppliers. The fact that going green can reduce costs and thus improve the bottom line simply increases the level of interest ingoing green.
Reji Pillai, Leader for energy and utility industry, IBM India/South Asia
While environmental concerns may start with the chief executive, they quickly filter down to other C-suite executives and line-of-business leaders, who are being asked to quantify and reduce corporate energy use and environmental footprints, streamline supply chains, meet regulatory requirements and modify information technology (IT) departments to drive more energy-efficient operations. The total data centre capacity in India is expected to reach 5.1 million sq. ft by 2012 and is projected to grow at a compound annual growth rate of 31% from 2007 to 2012, according to Gartner.
These activities are not merely environmentally responsible: they can also drive cost savings—another universal corporate mandate. For example, according to IBM’s projections, energy costs eat 30-40% of a company’s operational budget—and these costs are projected to double over the next five years. A single dollar in energy savings can often drive an additional $6 to $8 in operational savings.
To develop policies that are both good for the planet and good for business, corporate leaders must consider these questions:
1. Are all aspects of the business, including operations, IT and product lifecycle management, efficient and protective of the environment?
2. As part of the overall strategy to increase business efficiency, should the organization be considering environmental stewardship and energy consumption as new business barometers?
3. Does the organization maintain a public commitment to meaningful and achievable goals, with transparency in reporting progress in meeting those goals?
Each of these issues can seem complicated when considered individually and perhaps overwhelming when viewed as an interrelated group. They require a framework that helps identify and prioritize environmental efforts by illustrating how problems and opportunities can be broken down into distinct areas and then segmented into manageable projects to be addressed. These projects can be joined to form a cross-organizational program managing energy and environmental issues.