Verdantix Carbon Benchmark For Global IT Services Firms Reveals A Diversity Of Energy And Carbon Management Strategies
London, June 6, 2011. Global IT services firms pursue a wide range of strategies for carbon and energy management, according to a recent report from independent analyst firm Verdantix. The in-depth comparison of the world’s 14 largest IT services firms reveals for the first time in detail profound variations in carbon targets, GHG reduction plans and energy management strategies. The Verdantix Carbon Strategy Benchmark compares Accenture, Atos Origin, BT Global Services, Capgemini, CSC, Fujitsu Services, Hitachi, HP, IBM, Infosys, Logica, Orange Business Services, TCS and Wipro.
“A complex mix of factors drive carbon strategies in the IT services sector” commented Verdantix Director David Metcalfe. “Many GHG targets were set in the pre-recession market without accurate data to validate commitments. The carbon and energy management strategies of global IT services firms are at different stages of maturity. Marketing and sustainability leaders are wrestling with the impact of the growth in cloud computing and data centre outsourcing services on their carbon footprint. Business strategy needs to determine environmental goals, not the other way around.”
The Verdantix carbon strategy benchmark identifies the impact of business models on CO2 emissions. Compared to pure IT services firms, Fujitsu, Hitachi, HP and IBM are ‘carbon heavyweights’ because of their manufacturing business units. To improve comparability enterprise services business groups should report their GHG emissions separately from the overall group.
The country location of energy consuming assets like data centres, offices and telecoms networks influences carbon strategies. Capgemini and Orange, with operations in nuclear-powered France, have limited opportunities for GHG reduction in their home market due to the low CO2 emissions factors of the national electricity grid. In the UK, the carbon policy agenda is more advanced than any other country in the world. This explains why BT and Capgemini UK have more mature carbon management frameworks.
The sector shows huge variations in CO2 reduction plans. Carbon reduction targets range from 5% to 100% of emissions with twelve firms out of fourteen setting absolute reduction targets. Time scales for reduction range from 3 years to 22 years. Fujitsu and Hitachi set 1990 as their baseline year whereas Atos Origin, Capgemini and Logica set 2008 as their baseline.
“Our detailed analysis of the carbon disclosures, targets and strategies of fourteen global IT services firms reveals a market in transition” commented Janet Lin, Senior Manager in the Verdantix New York office. “Many firms in the sector consume more energy every year but claim to reduce their CO2 emissions by buying green tariff electricity or renewable energy certificates. This is a corporate marketing expense reminiscent of pre-recession corporate responsibility initiatives. Executives should scrutinize the business value of spending on carbon strategies that achieve reduction targets without tackling energy consumption or energy efficiency.”
The Verdantix report, “Carbon Strategy Benchmark: IT Services Sector”, is available for Verdantix clients to download at www.verdantix.com.
About Verdantix
Verdantix is the fastest-growing, independent, analyst firm focused on sustainable business strategies and market opportunities. For more information visit www.verdantix.com.
Press contact
Elinor Newman-Beckett,
+44(0)203 371 6792
press@verdantix.com
Monday, 06 June 2011