ICTs Enable Large Carbon Reductions

ICTs and Sustainable development – Copyright Innhotep 2012 1
Innovation as a
strategic priority
ICTs and Sustainable development
Be green and cost effective with ICTs
2008

Executive Summary
ICTs are a noticeable source of GH G emissions, and a major component of
innovative solutions for sustainable development.
Many abatements in costs and carbon footprint are made possible by undertaking
innovative solutions in ICTs, in both direct and indirect ways.
Leveraging technologies and people behaviors enables value creation.
Existing and planned regulations create more and more constraints, which can be shifted
into strength if addressed correctly (gain in competitiveness, product range widening ).
ICTs and sustainable development
Innhotep proposes analyses and solutions to help firms integrate innovation in their
strategy and organization and benefit from it in various fields, including ICTs.

Agenda
I. ICTs: high benefits, few problems
II. About us
III. Appendix

If appropriately managed, ICTs enable large abatements
by 2020, about five times their own emissions
Emissions
ICT Footprint
Selected ICT-enabled abatements
Other abatements
GtCO2e
Buildings and transport are the most important areas
where ICT can contribute to emission reductions
Source: SMART2020, The Climate Group
* Please note that dematerialisation is not a sector, but occurs in all sectors
and was seperated here for illustrative reasons
** See Appendix
SplitbyAreaSplitbyabatementtype
1**
2**
3**
5**
4**
Share of ICTs emissions in the global emissions
(GtCO2)

Product
range/Services
offer diversification
Benefits for our clients
Energy
consumption
management
GHG emissions
reduction
Increased brand
awareness and
competitiveness
Problems
CO2
EMISSIONS
ENERGY
CONSUMPTION
CLEANTECH
(Renewable
energies, eco-
efficiency
technologies,
green IT,..)
SENSITIVITY TO
ENVIRONMENT
AL ISSUES
• Strategies
• Partnerships
• Market insights
Change
management
Levers Our capabilities
Source: Innhotep
We can help firms tackle sustainability issues through
innovation, including in ICTs

ICT contribution to emission reduction / energy saving
Direct (reducing the ICT
sector’s own energy
requirements)
Indirect (using ICTs for
displacement of carbon
emissions)
Energy management
systems
ICTs’ other contributions to sustainable
development and « systemic effects »
Next generation networks
More efficient production
processes
Device materials
Use of renewable energy
in produciton
Modern radio technology
Catastrophy detection and
warning
Crisis management
Montitoring of climate change
Knowledge base & repository
on climate change
Remote Appliance Power Management
Presence Based Power
(via RFID & Sensors)
Decentralised Business
Districts
Real Time Freight
Management
Personalised Public
Transport
‘In-Person’ Conferencing
Increased
Renewable Energy
Re-usage/replacement
NGNs
Dematerialisation (e.g.
online phone bills, online
movie rental etc.)
Reduction of power
requirements of devices
and network equipment
Easyness of implementation
Impact on CO2 emissions
Source: Innhotep
We can provide analyses of potentialities and manage
adequate changes

• Local binding regulation and
legislation
– National
– International (EU, )
– Others
• National voluntary standards
established by workgroups on demand
of policy-makers
• International voluntary standards
established by international
organizations and insitutions
(European Standard Organizations
(ESOs) for example)
We can help our clients shift legislation and standards
from constraints to opportunities
Source: www.ce.org, June 2008
Industry Commitments & Initiatives State-side regulation and standardization
• The number of standards and regulations is continuously increasing
• The firms which do not adapt their product offer to the new standards will quickly be left behind
• Innovation lets firms anticipate forward regulations and take a competitive advantage on the
market
• Voluntary, market-oriented programs
• Standards developed by industry
• Research and analysis
• Consumer education
• Promotion of energy-efficient products
• Outreach and coordination
Proposals
Incentives

Agenda
II. About us
III. Appendix

Our positioning : value creation through
innovation
: « Business Innovation Accelerator »
Innhotep Ventures is a fast growing professional services firm, dedicated
to innovation strategy and management.
We support our clients to achieve high impact projects that create value
through innovation. We have two complementary activities:
1. Independant consulting firm for large companies:
• Innovation strategy design and implementation to create value
and stimulate growth, mainly in two main areas:
Energy and Clean technologies
Information technologies
• Strategy and business innovation management
Organisation (R&D conception and/or optimisation,
strategic marketing, etc.)
Managerial innovation and associated tools (collaborative
intelligence, etc.)
2. Startup coaching
• Accelerating startup growth during all their stages of
development

Our ambition : instill technical and business innovation
to serve the vision of our clients
Integrate innovation within
the strategic vision
Identify concrete ways of
innovation
Help our client implement
operational strategy
VISION
Innovation strategy
Organizations / process
Change management
Ideas generation
Business and
feasibility study
Projects portefolio
Implementation
plan
Business Intelligence
Partnerships
Define strategy
VISION

Our ambition: support our clients to address their key
strategic business issues
New strategic issues
What are the main weak
signals in my market
today, but crucial within 2
- 5 years?
How to detect
real business gems ?
(ideas, startups, products,
services ...)
How to get organized to
design and deploy new
offers?
What new offers can
be designed to
conquer
new markets?
Business innovation
identification
Projects
implementation
New activities
and offers to
invent ?

Our ambition: support our clients to address their key
organization and management issues
New organisational and management issues
How to capitalize on key
internal and external
resources to feed my
strategy ?
How to come across
operational barriers
to optimize the
strategy
implementation ?
How to best detect and
leverage internal and
external innovation ?
How to take
advantage of the new
possibilities offered
by Enterprise 2.0
innovations and tools
?
New management
approaches
New tools and
innovative methods

Benchmark
Opportunity
analysis
Strategic
intelligence
Business
models
Partnership
targeting
Offer design
Startups
identification
Market studies
THINK
BUILD
Project
feedback
New business
projects
Deployment
OPERATE
Strategic
positioning
Brainstorming
sessions
Strategic
roadmaps
Project
management
Processus
(creation )
Tools (audit,
sourcing, etc.)
Support our clients : 3 main types of mission

Some of our clients
Strategy and
Innovation
Management
Energy and
Cleantechs
Information
Technologies

Experience
Claire Bacquart
Associate Director
Innhotep
Innhotep
Yahoo! Marketing Manager, Small Business (SMB), Europe
(10 countries, 100M$ managed)
One Plus One
Filmfestivals.com
• Numerous missions in the field web and digital innovation :
opportunity identification, conduct of innovative studies and
benchmarks, client needs specification, new offerings
development, brainstorming and think tank animation
• More than 10 years of operational experience as an IT manager,
with international teams
• Various expertise including : Innovation management (open
innovation, enterprise social networks, mobile financial services,
etc.), business model assessment (notably for numerous IT and
web startups), innovative market assessment, etc.
Demba Diallo
Associate Director
Innhotep
Innhotep
Colombus Consulting
Cap Gemini Ernst & Young
Arthur Andersen
• More than 10 years in strategic, organisation and management
(Arthur Andersen, Cap Gemini Ernst &Young, Colombus
Consulting)
• Numerous missions in the field of IT and cleantechs, growth
strategies, including technology and business model
assessment
• Vast experience in the design and implementation of new
business with strong technological components
• Seminar, brainstorming and think tank session animation
• Co-founder of startup Stribe
Experience
Our team : some of our consultants
ESCP-EAP Graduate : Oxford, Madrid, Paris.
Marketing specialization
Education Education
Ph.D Telecom Paris in innovation management
Sciences Po Paris Graduate
Research stays in Harvard, MIT, UC Berkeley

Innhotep / Expert Scientipôle Initiative
Colombus Consulting
BearingPoint
Arthur Andersen BC
Thales International Venezuela, Air France
• Numerous missions in the field of IT project management,
growth strategies and project implementation, cleantechs
strategies, technology and business model assessment
• Vast experience in the design and implementation of business,
technologic and operational projects
• Numerous benchmarks and studies concerning the value chain
of knowledge and information : idea management, content
management, enterprise social networks, etc.
• Startup assessment for public funding : internet, data
management, M2M, waste, smart grids, energy, etc.
Sidney Delourme
Consultant
Innhotep
Innhotep – Consultant
Intelleco – Consultant Strategic Intelligence
Strategic Scout – Junior Consultant Energy & Telecom
Edu-Performance Canada –Marketing Manager
• Numerous missions in the field of business and strategic
intelligence, innovation identification and screening, startup
analysis, new product and services assessment, emerging
market assessment
• Vast experience in strategic and operational marketing,
business development, technology assessment
• Various expertise : information technologies, home automation,
cleantechs, renewable energies, energy efficiency, smart grids,
etc.
Our team : some of our consultants
Johann Girard
Senior Project Manager
Innhotep
Experience Experience
Education Education
ESSEC
Arthur Andersen University, Chicago
MBA Sustainable Performance, ISC Paris
Double Degree Superior School of International Business and
London South Bank University, Master in Strategic Marketing

What does Innhotep mean ?
• The word Innhotep was chosen in resonance with the name
Imhotep, « He who comes in peace » or « the one who is
welcome »
• Vizier of Pharaoh Djoser, Imhotep designed in Africa, at
Saqqara (Egypt), the first pyramid in history.
• Aside architecture, Imhotep was a scholar in medicine,
mathematics, astrology and religion, exemplifying the
breadth of knowledge needed to achieve successful
innovation
• He contributed to the existence of a single language and
scripture, foundations for the administration and
the religion of one of the most impressive civilizations of
mankind
Site web : innhotep.com
Blog : innhotep.blogspot.com
Twitter : twitter.com/Innhotep

Agenda
II. About us
III. Appendix

The global problem of climate change also involves ICTs
Though emitting GH G, ITCs enable large abatements through various channels
Many regulations and standards are already in force and still to be issued by
different institutions
B
C
A
Appendix

The global problem of climate change also involves ICTs
Since 1970, the production of greenhouse
gases has risen by more than 70%, which
results in consequences such as
– Rise in planet temperature
– Changing weather patterns
– Rising sea-levels
– Desertification
– Shrinking ice cover
–
Those consequences have serious impact on
the lives of millions of people and political
stability in many parts of the world
Energy efficiency is the fastest and most cost
effective way to reduce GHG emissions
Climate change is a concern for all of humanity and requires efforts on the part of all sectors
of society, including the Information and Communication Technologies (ICTs) sector
GtCO2-eq/yr
Source: IPPC Climate Challenge Synthesis Report 2007
A

ICTs contributed an estimated 0,9 tonnes GtCO2e in 2007, their current 2% share in global
emissions is expected to rise as ICTs become more widely available
Source: The Climate Group « Smart 2020 »
Source: ETSI (European Telecommunications Institute) 2007
ICT contribution to GHG Emission 2007 (GtCO2)
2% of global
footprint
ICT contribution to GHG Emission 2007 (GtCO2)
The impact of ICTs on global GHG emissions is to rise
sharply in the following years (1/2)
A

Source: Gartner Group (2007)
0,53
0,82
1,43
Source: The Climate Group, Smart 2020
Footprint by ICT subsector
PCs and peripherals will be responsible for 50% of ICT emissions in 2020, while data centers
will experience the fastest growth
The impact of ICTs on global GHG emissions is to rise
sharply in the following years (2/2)
A

The global impact of building related abatements
enabled by ICT
Two main drivers of buildings’ emissions
– Surface area
– Energy intensity
Biggest reduction potential in building
design, BMS and Voltage optimisation
Importance of Benchmarking
BMS can adapt the building to changes in
the way it is used
US and Canada have come up with very
innovative companies in the area of smart
building technology
HVAC = Heating, ventilation and airconditioning
BMS = Building Management systems
B

The global impact of grid related abatements enabled by
ICT
The power sector accounted for 24% of global
emissions 2002
Smart meters allow consumers to know more about
their consumption habits and allows for automatic
metering
Advanced Grid Management systems (e.g.
refrigerators which reduce their performance during
peak times)
Sensors for remote metering
High importance for countries like India, where
Grid inefficiencies seriously hinder economic
development
T&D = Transmission and Distribution
B

The global impact of motor & industrial processes
related abatements enabled by ICT
Motor systems are devices which convert electricity
into mechanical power
They can be inefficient as they operate on full
capacity, independent of the actual load
ICTs role is to monitor energy use and provide
real-time energy data for optimization
Simulation software for plant and manufacturing
process design
Inter-system communication
HVAC = Heating, ventilation and airconditioning
BMS = Building Management systems
B

The global impact of logistics related abatements
enabled by ICT
Transport sector is responsible for 14% of
global emissions
Software for design of transport systems
Optimisation of route planning would
comprise avoidance of congestion etc.
Other interesting opportunities include
– CO2e emissions tracking platforms
– Electronic freight exchanges (EFX) to allow
for the ‘auction’ of spare space on vehicles
– Reverse logistics platforms
– Protocols for system interoperability
– CO2e route optimization standards
B

The global impact of dematerialisation enabled by ICT
Telecommuting has the highest impact but faces
corporate doubts about adoption, and those are not
technical:
– Perceived disadvantage concerning ‘employee performance
management’
– The necessary cultural shift in collaboration for the employees
Impact of telecommuting depends on the efficiency of
the country looked at (decreases impact) and the relation
between workhours and free-time (the more work hours,
the more impact)
There is a need to establish blueprints for roll-out in the
companies where most impact is to be had, as well as
policy support
B

Concrete examples of positive ICT impact on emissions
in Europe
Source: WWF
Flexi-work
CO2savings(milliontonnes)
Number of Flexiworkers (millions)
Number of Calls (millions)
CO2savings(‘000tonnes)
Number of Customers (millions)
AudioconferencingVirtual answering machines
Number of customers (millions)
Web-based tax return Replaced business travelOnline Phone Bills
Number of Users (millions) Replaced business travel (%)
B

EU « Code of Conduct » (CoC)
Voluntary commitment of individual companies, with the aim of reducing energy consumption of products and/or systems
through
– the setting of agreed targets
– in a defined development timescale
Energy consumption levels are complemented by general commitments of power and energy management
Serves as basis for other EU policy initiatives
Source: European Commission DG JRC, June 2008
Digital TV
External
Power
Supplies
Uninterrup
tible
Power
Supplies
Broadban
d
Equipment
Data
Centers *
CoC
* Under Development
Day to day operations
(energy management)
Normal replacement
cycle/adding new servers
Retrofit/ dedicated energy
efficiency programme
Designing new data
centres and equipment
end-use equipment network equipment
set-top boxes
TVs with integrated
receiver / decoder
internet TV and
converters
PVR (Personal Video
Recording)
For mobile phones
For domestic
appliances
For power tools
For IT equipment
C

Overview of Regulations and Standards (EU)
Name
Organiz
ation Type Goal /Topic Content/Actions Further Info
EU Targets for
Sustainable Energy
Eco-Design of Energy
Using Products Directive
(Directive 2005/32/EC)
Restriction of the use of
certain hazardous
substances in electrical
and electronic equipment
and Waste electrical and
electronic equipment
EU Energy Star
Programme
EU Codes of Conduct
European
Commissi
on
EU
EU
EU
EU (EC
Joint
Research
Centre)
EU Target
Framework
Directive
Directive
Voluntary
label
Voluntary
Enable an organization to
Reduce energy consumption by
20% by 2020
Focus on energy-using products
over life-cycle
Tackle the fast increasing waste
stream of electrical and
electronic equipment and
complements
Help eco products to gain higher
market shares
Identify and focus on key issues
and agree solutions,
initiate and develop policy,
Set ambitious voluntary
standards and commitments
1. Double the share of renewable energy in
national gross energy consumption from 6% to
12% by 2010 and 20% by 2020
2. Increase the share of green electricity in total
electricity consumption from 14% to 22% by
2010
3. Raise the share of biofuels in the transport
fuel market to 5,75% by 2010. Proposed 10%
minimum market share of biofuels in 2020.
No directly binding requirements for specific
products, but conditions and criteria for setting
of such requirements and possibility for the
commission to implement via directives
Producers will be responsible for taking back
and recycling electrical and electronic
equipment
Requires the substitution of various heavy
metals and brominated flame retardants or
polybrominated diphenyl ethers
Voluntary energy efficiency labelling of office
equipment and other devices
Forum for industry, experts and Member
States, Open and continuous dialogue on
market and product
Performance. Voluntary commitment of
individual companies
http://ec.europa
.eu/enterprise/e
co_design/inde
x_en.htm
http://ec.europa
.eu/environment
/waste/weee/ind
ex_en.htm
www.eu-
energystar.org
C

European Standards Organisations (ESOs)
Directive
98/34/EC:
Formal recognition of 3
European Standards
Organisations (ESOs)
CEN
CENELEC
ETSI
Financial support at the
European
level
21 Proposals for Standardization Work Programme
Standards resulting from an open consensus building process and published by
recognised standardisation bodies are by nature voluntary and non binding documents
14 Proposals passed evaluation process
11 Grant Agreements for execution
8 contracts signed
This 2008 ICT Standardisation Work Programme follows the previous year’s exercise. The expected results include
European standards, Technical Specifications, ETSI Standards, ETSI Group Specifications, CEN Workshop
Agreements (CWAs), CENELEC Workshop Agreements (CWA), ETSI Guides, Technical Reports, guidelines,
organisation of events, and actions that aim at supporting the implementation of the standardisation deliverables.
Source: European Comission document on 2008 ICT Standardisation Work Programme
C

Overview of Regulations and Standards (ESOs)
Name Organization Type Goal /Topic Content/Actions Further Info
'DTR/EE-00002 Work
Item‘ TR 102 530
'DTR/EE-00004'
Work Item; TR 102
532
'DTS/EE-00005' Work
Item ; TS 102 533
ETSI (European
Telecommunicati
ons Standards
Institute)
ETSI (European
Telecommunicati
ons Standards
Institute)
ETSI (European
Telecommunicati
ons Standards
Institute)
Voluntary
standard
Voluntary
standard
Voluntary
standard
The reduction of energy
consumption in
telecommunications
equipment
and related infrastructure.
The use of alternative energy
sources in
telecommunication
installations
Energy consumption in BB
Telecom
Network Equipment
Study and produce a report on the various
methods (hardware and software) of
controlling/reducing energy consumption in
telecommunications network equipment
and related infrastructure
Study the use of alternative energy source
in the telecommunication
installation/application. (Solar, wind, fuel
cell, etc.)
To define energy consumption targets and
measurement methods for
fixed and wireless broadband telecom
network equipment. - In first phase,
DSL, ISDN and combined NW equipment. -
In second phase, Wimax, PLC
and Cable Service Provider equipment.
Phase 1 proposed target dates are
stated in table below. Reference
documents: 1. Network Equipment part
of: EC, JRC, institute for the Environment
and Sustainability, Renewable
Energies Unit, "Broadband Equipment Code
of Conduct - Draft Nov. 2005
2. ETSI work item WI-DTR/EE-00002
"Reduction of energy consumption in
telecommunications equipment and related
infrastructure.
C

Overview of Regulations and Standards (ESOs)
Name Organization Type Goal/Topic Content/Actions Further Info
'DTS/EE-00006‘
'DTS/EE-00007‘
'DTR/ATTM-06002'
ETSI (European
Telecommunicati
ons Standards
Institute)
ETSI (European
Telecommunicati
ons Standards
Institute)
ETSI (European
Telecommunicati
ons Standards
Institute)
Voluntary
standard
Voluntary
standard
Voluntary
standard
Environmental consideration
for
equipment installed in
outdoor location
Energy efficiency of wireless
access network
Equipment
Power Optimization for xDSL
transceivers
To write a technical report on the
applicability of ETSI environmental
classes to equipment installed in outdoor
cabinet. Also acoustics noise
emission will be considered.
To define wireless access network energy
efficiency metrics, define efficiency
parameters and measurement methods for
wireless access network equipment. In
first phase GSM/EDGE, WCDMA/HSPA and
WiMAX is addressed.
Possibilities to optimize the power
consumption of the xDSL transceiver
shall be investigated. These investigations
may include power modes that
are beyond the currently existing modes.
The potential influence of power
optimization schemes on the stability and
performance of each line of the
network due to power optimization, e.g.
non-stationary noise, shall be an
important part of the WI. This WI will aim at
building coherence with other
ETSI documents relating to the topic.
Therefore, a close collaboration with
other WI in TM6 (e.g. ADSL, VDSL, SpM),
with other ETSI technical bodies
(e.g. ETSI EE) and other standardization
bodies (e.g. SG15/Q4) is needed
for that WI.
C

Overview of Regulations and Standards (International)
Name Organization Type Goal /Topic Content/Actions Further Info
ISO 14001:2004
ISO 14004:2004
ISO 14020:2000
ISO 14021:1999
ISO 14024:1999
ISO 14025:2006
Intl. Organization
for
Standardization
Intl. Organization
for
Standardization
Intl. Organization
for
Standardization
Intl. Organization
for
Standardization
Intl. Organization
for
Standardization
Intl. Organization
for
Standardization
Voluntary
standard
Voluntary
standard
Voluntary
standard
Voluntary
standard
Voluntary
standard
Voluntary
standard
enable an organization to
develop and implement a
policy and objectives which
take into account legal and
other requirements
General guidelines on
principles, systems and
support techniques of EMS
Specifies the requirements for
environmental management systems.
Guidelines on the elements of an
environmental management system and
its implementation, discusses principal
issues.
Establishes guiding principles for the
development and use of environmental
labels and declarations
Environmental labels and declarations --
Self-declared environmental claims (Type
II environmental labelling)
Environmental labels and declarations --
Type I environmental labelling -- Principles
and procedures
Establishes the principles and specifies
the procedures for developing Type III
environmental declaration programmes
and Type III environmental declarations. It
specifically establishes the use of the ISO
14040 series of standards in the
development of Type III environmental
declaration programmes and Type III
environmental declarations.
www.iso.org
www.iso.org
www.iso.org
www.iso.org
www.iso.org
www.iso.org
C

Overview of Regulations and Standards: Initiatives
Name Organization Type Goal/Topic Content/Actions Further Info
EPA Energy
Star
DoE Save Energy
Now
WattWatt
Gridwise
IEE E-Server
project
The Green Grid
US EPA and
Department of
Energy (DoE)
US DoE
IEC
US Dept of
Energy
Consortium of
AMD, Intel, Dell,
Sun HP, IBM and
others
Voluntary
label
US national
initiative
community
website
Industry
initiative
Help eco products to gain
higher market shares
drive a 25% reduction in
industrial energy intensity
in 10 years
Harness ideas and raise
awareness
improve coordination
between supply and
demand, and enable a
smarter, more efficient,
secure and reliable US
electric power system
Advancing energy
efficiency in data centers
and business computing
ecosystems
Voluntary energy efficiency labelling of
office equipment and other devices
Industrial companies can participate in no-
cost energy assessments and utilize ITP
resources to reduce energy use while
increasing profits
Community for individuals interested in
electrical energy efficiency
remote control of virtual thermostats via a
web interface
defining meaningful, user-centric models
and metrics; developing standards,
measurement methods, processes and new
technologies to improve data center
performance against the defined metrics;
and promoting the adoption of energy
efficient standards, processes,
measurements and technologies
www.energyst
ar.gov
http://www1.ee
re.energy.gov/i
ndustry/savee
nergynow/
http://wattwatt.
com/
http://www.gri
dwise.pnl.gov/
http://www.the
greengrid.org/
home
C

ICTs Enable Large Carbon Reductions

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