Carbon accounting: a key step toward broad sustainability management
Growing concern about the environment, especially global warming and climate change, is putting pressure on public and private sector organizations to reduce emissions of carbon dioxide (CO2) and other greenhouse gases. The challenge can be exceedingly complex, and it creates a significant market opportunity for IT vendors to develop solutions that quantify emissions and, ultimately, help companies manage their businesses more sustainably. A fortunate but underappreciated fact is that sustainability initiatives can often pay for themselves quickly by reducing waste and inefficiency. However, the market for carbon management specifically and sustainability solutions overall is still characterized by complexity, immaturity, and fragmentation. In such an environment, enterprises and IT vendors must focus on solutions that provide both visibility into key processes and flexibility to adapt to rapid change.
SUMMARY
Impact
Ovum view
Key messages
TREADING CAUTIOUSLY IN THE NEW CARBON MARKET
The IT industry’s view broadens beyond “green IT”
CO2 accounting and management will be a major market
Sustainability and profit need not be at odds
THE INVISIBLE, INTRACTABLE PROBLEM
CO2 is hidden, but not harmless – and poses a major challenge
A typical customer – complex needs, uncertain solutions
Customers often favor incumbent IT vendors – if they can deliver
VOLUNTARY AND MANDATORY REPORTING
The power of public opinion, NGOs, and investors
The current state of mandatory regulation
North America
South America
Asia
Australia and New Zealand
Mandatory renewable energy targets
Lifecycle accounting
IT INDUSTRY RESPONSE
Major shift in recent years
Early entrants have substantial domain expertise
Major ISVs move into sustainability – at varying speeds
SIs and consultants: some established, others just starting
Fujitsu
IBM
Tieto
Accenture
CSC
Logica
Capgemini and Hitachi Consulting
THE OUTLOOK
Coping with uncertainty
Sustainability and profit: it’s not either-or
RECOMMENDATIONS
Overview
Recommendations for enterprises
Recommendations for vendors
Alternative views
APPENDIX
Methodology
Further reading
Impact
Ovum view
Key messages
TREADING CAUTIOUSLY IN THE NEW CARBON MARKET
The IT industry’s view broadens beyond “green IT”
CO2 accounting and management will be a major market
Sustainability and profit need not be at odds
THE INVISIBLE, INTRACTABLE PROBLEM
CO2 is hidden, but not harmless – and poses a major challenge
A typical customer – complex needs, uncertain solutions
Customers often favor incumbent IT vendors – if they can deliver
VOLUNTARY AND MANDATORY REPORTING
The power of public opinion, NGOs, and investors
The current state of mandatory regulation
North America
South America
Asia
Australia and New Zealand
Mandatory renewable energy targets
Lifecycle accounting
IT INDUSTRY RESPONSE
Major shift in recent years
Early entrants have substantial domain expertise
Major ISVs move into sustainability – at varying speeds
SIs and consultants: some established, others just starting
Fujitsu
IBM
Tieto
Accenture
CSC
Logica
Capgemini and Hitachi Consulting
THE OUTLOOK
Coping with uncertainty
Sustainability and profit: it’s not either-or
RECOMMENDATIONS
Overview
Recommendations for enterprises
Recommendations for vendors
Alternative views
APPENDIX
Methodology
Further reading
LIST OF TABLES
Table 1: Europe
Table 2: Americas
Table 3: Asia
Table 1: Europe
Table 2: Americas
Table 3: Asia
LIST OF FIGURES
Figure 1: Regional greenhouse gas initiatives in North America
Figure 2: SAP’s on-demand offering, Carbon Impact
Figure 3: CA ecoGovernance dashboard shows information about suppliers’ sustainability performance
Figure 4: Fujitsu’s approach now addresses sustainability performance across various non-IT processes.
Figure 5: Logica’s sustainability strategy – solutions and methodology for customer engagement.
Figure 1: Regional greenhouse gas initiatives in North America
Figure 2: SAP’s on-demand offering, Carbon Impact
Figure 3: CA ecoGovernance dashboard shows information about suppliers’ sustainability performance
Figure 4: Fujitsu’s approach now addresses sustainability performance across various non-IT processes.
Figure 5: Logica’s sustainability strategy – solutions and methodology for customer engagement.
