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ADVANCING CSR AND
SUSTAINABILITY AT




             SALVADESSWARAN P.S. 0311/48
 GROUP - 6   KANISHKA MOHAN      4014/18
             ROHAN SINGH         4025/18
ASPECTS OF SUSTAINABILITY
               Economic                                           Environmental                                              Societal
 • Direct                                             • Material Consumption                                 • Quality of Life
   • RM & Labour Cost                                   • Packaging Mass                                       • Employee Satisfaction
   • Capital Cost                                       • Useful lifetime                                      • Knowledge
 • Potentially Hidden                                   • Hazardous Materials                                    Enhancement
   • Recycling Revenue                                • Energy Consumption                                   • Peace of Mind
   • Product Disposal Cost                              • Life cycle energy                                    • Perceived Risk
 • Contingent                                           • Operational power                                    • Complaints
   • Employee Injury Cost                             • Local Impact                                         • Illness/Disease Reduction
   • Warranty Cost                                      • Recyclability                                        • Illnesses avoided
 • Relationship                                         • Impact on local streams                              • Mortality reduction
   • Loss of goodwill                                 • Regional Impact                                      • Accident/Injury
 • Externalities                                        • Smog, Acid Rain                                      Reduction
   • Ecosystem                                          • Biodiversity reduction                               • Lost time injuries
     Productivity Loss                                • Global Impact                                          • Reportable releases
   • Resource Depletion                                 • CO2 emissions                                        • No. of incidents
                                                        • Ozone depletion                                    • Health & Wellness
                                                                                                               • Nutrition provided
                                                                                                               • Food costs

Source: Joseph Fiksel, Jeff McDaniel, Catherine Mendenhall, 1999. Measuring Progress Towards Sustainability Principles, Process, And Best Practices.
GREEN DATA CENTRE
                                      • Started in 2006, assuming
                                        electricity costs would only
                                        increase; total cost €11 million
                                      • Innovative cooling solutions –
                                        servers installed back to back
                                      • Innovative heat utilisation –
                                        exhaust used to heat offices
                                      • Joined The Green Grid – funded
                                        research to reduce energy usage
                                        for servers
                                      • Electricity obtained from RECS
                                        (Renewable Energy Certificate
                                        System) potentially saving over
Heat exchanger in shade of building     9000 tonnes of CO2 /year
GREEN DATA CENTRE: IMPACT

                                               •   [-] Construction costs up by 15-20%; total cost €11 mn
                                               •   [+] Decreased PUE value to 1.35 (industry average ~1.8)1
            Economic                           •   [+] No AC until 17 degrees; savings for 250 days/year
                                               •   [+] Energy usage decreased by 30%; additional costs
                                                   amortize in 2.5 years


                                               • [+] CO2 savings of 1,300 tonnes/year in air conditioning
                                               • [+] Energy saving of 3.5 million kWh compared to
       Environmental                             conventional data centers
                                               • [-] Power consumption still high at 14.5 million kWh in
                                                 2009



              Societal                        • No direct impact


1   http://www.datacenterknowledge.com/archives/2011/05/10/uptime-institute-the-average-pue-is-1-8/
VIRTUALISATION

• Virtualisation enables combining several virtual servers
  on one physical server
• Offers high flexibility, scalability and increased stability
  & reliability
• Host Europe GmbH began offering virtualisation in 2008
• Actively promoted by offering free hosting – not
  successful
• By 2009, technology more widely accepted
• Host Europe one of the largest providers of virtualisation
  technology in Europe
• Further efficiency gain expected through utilisation of
  quad core processors
VIRTUALISATION: IMPACT

                • [+] Server utilisation increased from 15%, in 2007 to 40%
  Economic        in 2008
                • [+] Potential to increase SU to 80%



                • [+] 20,000 virtual machines hosted in 8,000 physical
                  servers
Environmental
                • [-] Utilisation limited by customer demand & hardware
                  limitations



                • [+] Gains in efficiency lead to:
   Societal     • (i) lower energy costs per customer
                • (ii) cheaper hosting solutions
COMMUNITY, EMPLOYEES &
        WORKPLACE MEASURES
• Workplace measures
   – Ergonomic workplaces coupled with courses to
     improve posture and preventive training
   – Smokers encouraged to quit
   – Subsidised health food and membership to gym
• Flexibility for employees
   – Special leaves for weddings, childbirth or moving
   – Full overtime compensation and flexible working
     hours
   – Secondary employment encouraged
COMMUNITY, EMPLOYEES &
         WORKPLACE MEASURES
• Family friendliness
   – Average age 29 years; hence employees will be
     planning for families
   – Child care centre helps employees keep children close
• Social & Community engagement
   – Direct donations: Doubled the employee collection &
     donated the amount to charity during Christmas 2009
   – Indirect donations: Free hosting solutions to 33
     beneficiaries
   – “Girl’s Day”: Initiative to encourage young women to
     take up jobs in IT
COMMUNITY, EMPLOYEES &
   WORKPLACE MEASURES: IMPACT

                • [-] €750 expended per employee on professional training
  Economic      • [-] Additional costs in subsidising services like gym and
                  health foods




Environmental   • No direct impact




                • [+] High employee engagement, with better quality of life
                  at home & workplace
   Societal     • [+] CSR initiatives to encourage net societal
                  improvement
                • [+] Encourage gender diversity though “Girl’s Day”
NEED FOR SUSTAINABILITY

• Sustainability is becoming important for businesses due
  to:
   – Rising concerns about environment and climate changes
   – Stricter regulations on green house gas emissions
   – Impact on consumers and economic factors
• Companies need to anticipate regulatory changes in order
  to succeed in a dynamic environment
• Peer pressure and customers expectations are also
  pushing companies to adopt greener practices
• However going green is not always a compulsion, and
  these days companies are adopting green practices in
  order to improve their efficiency and cut down on costs
CONCERNS – ENERGY USE

• Global energy usage for IT doubled between 2000 and
  2005
• By 2050 the energy use in ICT expected to quintuple from
  2005
• By 2020 45 per cent of domestic energy usage was
  predicted to be consumed by ICT
• A large share of energy usage in IT is not productive
• A major portion of the total energy goes into cooling the
  equipment and other peripheral activities
• Only a quarter of the total energy is used in the core
  activities
CONCERNS – ENERGY USE

• Use of internet and ICT is going to increase, hence it is
  energy efficient data centers are essential
CONCERNS – E-WASTE DISPOSAL

• Most of the IT systems and tools are rapidly involving
• Shorter technology cycle ⇒ Systems become obsolete
  sooner
• Constant renewal of hardware will continue in future as
  the ICT sector is constantly evolving
• Close to 80% of components in junk hardware is
  recyclable
• Dumping of toxic substances such as lead, cadmium,
  arsenic etc., pose serious health and environment risks
• Lack of proper systems to tackle e-waste
• Businesses have a social responsibility to take the lead in
  reducing the environmental impact
CONCERNS – E-WASTE DISPOSAL
CHALLENGES FACED


• Pushing Virtualization to Customers

• Improving Sustainability

• Improving Gender Ratio
PUSHING VIRTUALIZATION

• Pushing Virtualization to customers is a challenge
• Why are customers reluctant to use VPS:
   – Lack of understanding or Security/Privacy issues?
• Educate customers about lower cost, lower carbon
  footprint and help them calculate possible savings
• Address any security and privacy concerns customers
  may have
• Showcase customers who have been using virtualization
  solutions to save costs
IMPROVING SUSTAINABILITY

• Reaching out to schools to educate children about
  sustainability
• Donation/Recycling vs. Disposal of IT products
• Promote use of public transport and bicycles by
  employees
• From the bottom up - ideas from employees to conserve
  resources like paper and water
• Explore alternate options while expanding capacity:
   – Off-shore data centers
   – Alternate technologies (e.g. ARM servers)
IMPROVING GENDER RATIO

Very low proportion of women, especially in technical
positions
• Showcase child-care day centre to attract more women
  applicants to positions
• Spearhead an industry - wide initiative to instil interest in
  girls about IT industry (a la Grace Hopper Women in
  Computing)
• Short-term: Preferential recruitment to administrative
  positions for women
• Women employees can become ambassadors to attract
  more women to Host Europe
IMPACT OF SUGGESTIONS

                • [+] Virtualization helps cut down on costs – both for
                  Host Europe and customers
  Economic      • [+] Low-power servers help reducing energy and
                  cooling costs by several magnitudes
                • [-] Expenditure on initiatives to improve gender ratio

                • [+] Virtualization & Low-power servers reduces
                  energy consumption
Environmental
                • [+] Public Transport reduces individual carbon
                  footprint

                • [+] Improvement in gender ratio helps make the
                  workplace more diverse
   Societal
                • [+] Donating IT equipment helps spread technology
                  to the less privileged communities
THANK YOU!

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Host Europe GmbH

  • 1. ADVANCING CSR AND SUSTAINABILITY AT SALVADESSWARAN P.S. 0311/48 GROUP - 6 KANISHKA MOHAN 4014/18 ROHAN SINGH 4025/18
  • 2. ASPECTS OF SUSTAINABILITY Economic Environmental Societal • Direct • Material Consumption • Quality of Life • RM & Labour Cost • Packaging Mass • Employee Satisfaction • Capital Cost • Useful lifetime • Knowledge • Potentially Hidden • Hazardous Materials Enhancement • Recycling Revenue • Energy Consumption • Peace of Mind • Product Disposal Cost • Life cycle energy • Perceived Risk • Contingent • Operational power • Complaints • Employee Injury Cost • Local Impact • Illness/Disease Reduction • Warranty Cost • Recyclability • Illnesses avoided • Relationship • Impact on local streams • Mortality reduction • Loss of goodwill • Regional Impact • Accident/Injury • Externalities • Smog, Acid Rain Reduction • Ecosystem • Biodiversity reduction • Lost time injuries Productivity Loss • Global Impact • Reportable releases • Resource Depletion • CO2 emissions • No. of incidents • Ozone depletion • Health & Wellness • Nutrition provided • Food costs Source: Joseph Fiksel, Jeff McDaniel, Catherine Mendenhall, 1999. Measuring Progress Towards Sustainability Principles, Process, And Best Practices.
  • 3. GREEN DATA CENTRE • Started in 2006, assuming electricity costs would only increase; total cost €11 million • Innovative cooling solutions – servers installed back to back • Innovative heat utilisation – exhaust used to heat offices • Joined The Green Grid – funded research to reduce energy usage for servers • Electricity obtained from RECS (Renewable Energy Certificate System) potentially saving over Heat exchanger in shade of building 9000 tonnes of CO2 /year
  • 4. GREEN DATA CENTRE: IMPACT • [-] Construction costs up by 15-20%; total cost €11 mn • [+] Decreased PUE value to 1.35 (industry average ~1.8)1 Economic • [+] No AC until 17 degrees; savings for 250 days/year • [+] Energy usage decreased by 30%; additional costs amortize in 2.5 years • [+] CO2 savings of 1,300 tonnes/year in air conditioning • [+] Energy saving of 3.5 million kWh compared to Environmental conventional data centers • [-] Power consumption still high at 14.5 million kWh in 2009 Societal • No direct impact 1 http://www.datacenterknowledge.com/archives/2011/05/10/uptime-institute-the-average-pue-is-1-8/
  • 5. VIRTUALISATION • Virtualisation enables combining several virtual servers on one physical server • Offers high flexibility, scalability and increased stability & reliability • Host Europe GmbH began offering virtualisation in 2008 • Actively promoted by offering free hosting – not successful • By 2009, technology more widely accepted • Host Europe one of the largest providers of virtualisation technology in Europe • Further efficiency gain expected through utilisation of quad core processors
  • 6. VIRTUALISATION: IMPACT • [+] Server utilisation increased from 15%, in 2007 to 40% Economic in 2008 • [+] Potential to increase SU to 80% • [+] 20,000 virtual machines hosted in 8,000 physical servers Environmental • [-] Utilisation limited by customer demand & hardware limitations • [+] Gains in efficiency lead to: Societal • (i) lower energy costs per customer • (ii) cheaper hosting solutions
  • 7. COMMUNITY, EMPLOYEES & WORKPLACE MEASURES • Workplace measures – Ergonomic workplaces coupled with courses to improve posture and preventive training – Smokers encouraged to quit – Subsidised health food and membership to gym • Flexibility for employees – Special leaves for weddings, childbirth or moving – Full overtime compensation and flexible working hours – Secondary employment encouraged
  • 8. COMMUNITY, EMPLOYEES & WORKPLACE MEASURES • Family friendliness – Average age 29 years; hence employees will be planning for families – Child care centre helps employees keep children close • Social & Community engagement – Direct donations: Doubled the employee collection & donated the amount to charity during Christmas 2009 – Indirect donations: Free hosting solutions to 33 beneficiaries – “Girl’s Day”: Initiative to encourage young women to take up jobs in IT
  • 9. COMMUNITY, EMPLOYEES & WORKPLACE MEASURES: IMPACT • [-] €750 expended per employee on professional training Economic • [-] Additional costs in subsidising services like gym and health foods Environmental • No direct impact • [+] High employee engagement, with better quality of life at home & workplace Societal • [+] CSR initiatives to encourage net societal improvement • [+] Encourage gender diversity though “Girl’s Day”
  • 10. NEED FOR SUSTAINABILITY • Sustainability is becoming important for businesses due to: – Rising concerns about environment and climate changes – Stricter regulations on green house gas emissions – Impact on consumers and economic factors • Companies need to anticipate regulatory changes in order to succeed in a dynamic environment • Peer pressure and customers expectations are also pushing companies to adopt greener practices • However going green is not always a compulsion, and these days companies are adopting green practices in order to improve their efficiency and cut down on costs
  • 11. CONCERNS – ENERGY USE • Global energy usage for IT doubled between 2000 and 2005 • By 2050 the energy use in ICT expected to quintuple from 2005 • By 2020 45 per cent of domestic energy usage was predicted to be consumed by ICT • A large share of energy usage in IT is not productive • A major portion of the total energy goes into cooling the equipment and other peripheral activities • Only a quarter of the total energy is used in the core activities
  • 12. CONCERNS – ENERGY USE • Use of internet and ICT is going to increase, hence it is energy efficient data centers are essential
  • 13. CONCERNS – E-WASTE DISPOSAL • Most of the IT systems and tools are rapidly involving • Shorter technology cycle ⇒ Systems become obsolete sooner • Constant renewal of hardware will continue in future as the ICT sector is constantly evolving • Close to 80% of components in junk hardware is recyclable • Dumping of toxic substances such as lead, cadmium, arsenic etc., pose serious health and environment risks • Lack of proper systems to tackle e-waste • Businesses have a social responsibility to take the lead in reducing the environmental impact
  • 15. CHALLENGES FACED • Pushing Virtualization to Customers • Improving Sustainability • Improving Gender Ratio
  • 16. PUSHING VIRTUALIZATION • Pushing Virtualization to customers is a challenge • Why are customers reluctant to use VPS: – Lack of understanding or Security/Privacy issues? • Educate customers about lower cost, lower carbon footprint and help them calculate possible savings • Address any security and privacy concerns customers may have • Showcase customers who have been using virtualization solutions to save costs
  • 17. IMPROVING SUSTAINABILITY • Reaching out to schools to educate children about sustainability • Donation/Recycling vs. Disposal of IT products • Promote use of public transport and bicycles by employees • From the bottom up - ideas from employees to conserve resources like paper and water • Explore alternate options while expanding capacity: – Off-shore data centers – Alternate technologies (e.g. ARM servers)
  • 18. IMPROVING GENDER RATIO Very low proportion of women, especially in technical positions • Showcase child-care day centre to attract more women applicants to positions • Spearhead an industry - wide initiative to instil interest in girls about IT industry (a la Grace Hopper Women in Computing) • Short-term: Preferential recruitment to administrative positions for women • Women employees can become ambassadors to attract more women to Host Europe
  • 19. IMPACT OF SUGGESTIONS • [+] Virtualization helps cut down on costs – both for Host Europe and customers Economic • [+] Low-power servers help reducing energy and cooling costs by several magnitudes • [-] Expenditure on initiatives to improve gender ratio • [+] Virtualization & Low-power servers reduces energy consumption Environmental • [+] Public Transport reduces individual carbon footprint • [+] Improvement in gender ratio helps make the workplace more diverse Societal • [+] Donating IT equipment helps spread technology to the less privileged communities