About the IT Climate Leadership Challenge

The IT Climate Leadership Challenge is about climate change, and what the IT industry can do to help stop it. They need to cut their own greenhouse gas emissions -- currently as bad as the aviation industry's. IT industry chiefs should also use their influence with politicians to great climate-saving effect -- that's what we want.

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Earth is on the brink of runaway climate change and the consequences will be catastrophic. Our changing climate affects everyone.

The Information and Communications Technology (ICT) sector creates two percent of global greenhouse gas emissions. That's the bad news. The good news is that its services and products could cut the world's emissions by an estimated 15 percent when applied in industry, buildings, transport and power sectors. Smart 2020, A report by The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), with independent analysis by McKinsey & Company, has all the details.

Politicians will meet in Copenhagen this December to agree a successor to the Kyoto Protocol. A strong Copenhagen deal will create the right market conditions for a massive roll-out of smart technologies -- the stuff that the IT industry makes. So you might expect IT CEOs to be lobbying governments for a strong deal? Well they're not... yet.

1. What is the difference between this challenge and Greenpeace's Guide to Greener Electronics?

The Guide to Greener Electronics indicates how much action companies are taking to eliminate toxic components from their products, increase recycling and reduce their climate impact. It ranks the major market leaders in the mobile phone, computer, TV and games consoles sectors.

The climate leaders challenge is a bigger demand aimed at the whole ICT sector, fitting to the size of the climate change crisis.

2. How can IT cut everyone else's greenhouse pollution?

In energy use -- smart buildings and smart products cut energy waste
In electricity distribution -- smart grids and appliances that makes whole systems more efficient
In transport and shipping -- efficient logistics cut out unnecessary movements
"De-materialisation" of services -- technologies such as video conferencing.

More from McKinsey, Gartner, WWF, Climate Group

These are solution that already exist -- all that is needed are the right incentives to ensure their widespread roll-out.

3. What makes an IT chief a climate leader?

We'll know that IT industry CEOs and presidents are climate leaders when they:

Publicly call for global regulation for developed nations to cut emissions by at least 40 percent at the Copenhagen climate talks, in December 2009.
Lobby their own national government to get on board with strong climate deal.
Measure the company’s absolute emissions and commit to cut them by at least 20 percent by 2012.
Make sure company operations and manufacturing uses one-quarter renewable energy by 2012.
Prioritise those technologies and product development lines that cut greenhouse emissions across the economy.

Some companies are moving in the right direction, reducing their own emissions in business, and improving product efficiency. Those who have acted are already reaping rewards -- saving money and enjoying improved reputation. But what the world needs now is way, way more daring and important.

4. How will you be scoring the companies on their "leadership"?

We will be applying the above criteria (the five points above). Throughout the year we will regularly assess companies responses to the challenge. Those companies taking the most ambitious stance in 2009 will be highlighted as true climate leaders in contrast to others who stand by and fail to step up to the challenge.

5. Who are you addressing this challenge to?

The challenge is for CEOs and presidents of all IT sector players, including software provides and communications companies, who can enable others to cut emissions right across the economy.

6. What does "who can enable others to cut emissions right across the economy" mean?

The IT industry should be providing technology and services that replace current polluting practice. This includes:

Smart production systems -- making sure production systems in factories and industry run to their full potential, so that there is as little energy wasted as possible.
Smart logistics -- finding efficiencies in transport and storage, could deliver fuel, electricity and heating savings.
Smart buildings -- better building design, management and automation
Smart grids -- reducing transmission and distribution losses from the power sector through better monitoring and management of electricity grids, including smart meters and more advanced technologies.

7. What are the sources of information on IT sector greenhouse gas emissions?

Climate Group (2008) on behalf of the Global e-Sustainability Initiative (GeSI). Smart 2020: Enabling the low carbon economy in the information age
Members of the Climate Group include BT, China Mobile, Dell, Google, IBM and Lenovo.
McKinsey and Company (2008) How IT can cut carbon emissions. The report “estimates abatement potential by studying all known opportunities to optimize energy productivity in four sectors, buildings, power, transport, and manufacturing.”

8. Isn't the IT sector already doing a lot? Why are you picking on them?

Some companies have started to respond to climate change by measuring their own emissions, improving product efficiency and a few have set reduction targets. Companies with the most ambitious targets include HP (25 percent cut by 2010), Philips (25 percent cut by 2012) Cisco (25 percent cut by 2012) Sun Microsystems (20 percent cut by 2012). However none of these companies has shown clear support for a strong Copenhagen deal in 2009.

Those who have started to respond to climate change are certainly leading the pack, but these are small steps compared to what the world needs, and what their potential role could be.

This climate leaders challenge is for the industry to leap forward, to slash emissions and to create a whole new market for themselves as "enablers" -- businesses who can reduce emissions for others. Obviously, there are many other sectors that could do a whole lot more on climate. In the short time until Copenhagen talks, IT companies have very little to lose and a lot to gain from meeting this challenge.

9. Isn't it more important for companies to cut their own emissions, rather than lobbying governments about Copenhagen?

It's not an "either-or". Naturally, companies need to reduce their environmental footprint -- greenhouse gas emissions are a part of that -- simply because it's wrong to make others pay for your rubbish. And besides, what does it say about an IT company's "smart" products and services, if they can't say "we've cut our emissions using this stuff so we know that it works."

The IT industry would be a big winner from a strong Copenhagen deal. In fact, the Copenhagen agreement will create the market conditions for a massive roll-out of IT solutions to cut emissions across entire economies. The world is shifting to a low carbon economy, and early adopters stand to gain the most in this emerging market.

10. Is this an endorsement of some companies over others?

No. Greenpeace recognises companies for addressing environmental issues, but doesn't endorse them or their products.

11. Will you recognize carbon offsetting and carbon neutral programs in the challenge?

The priority is to cut emissions significantly now. Electronics companies can take many steps to direct cut emissions from their operations such as installing or buying renewable energy. Carbon offsetting, (such as Dell's 'Plant a Tree for Me' program) should be a last resort and not a distraction from the emissions reductions required. Without tough global standards for carbon offsets, terms such as 'carbon neutral' can be meaningless, or even a distraction that delivers no absolute reductions in emissions.

12. Are Greenpeace's statements influenced by donations?

Not at all. To maintain absolute independence Greenpeace does not accept money from companies, governments or political parties. We're serious about that, and we screen for and actually send checks back when they're drawn on a corporate account. We depend on the donations of our supporters to carry on our nonviolent campaigns to protect the environment.

13. How is this different than all the other climate programs involving ICT companies like the Climate Savers and US EPA Climate leaders?

Most current programs focus mainly on efforts of companies to reduce their own emissions. Because 2009 is a vital year for the world to address climate change we are looking for Technology CEO's to take stand on the biggest threat to the planet and the most important global legislation to tackle it. If they stand by and let this historic moment pass the planet and their businesses will be the losers.

(Last updated: 2 March 2009)