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© 2010 IBM Corporation Innovation for Low Carbon Society IT Supports Your Objective WORKSHOP ON DELIVERING GREEN GROWTH <4 th March 2010>

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  • © 2010 IBM Corporation

    Innovation for Low Carbon Society IT Supports Your Objective

    WORKSHOP ON DELIVERING GREEN GROWTH

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    The world is smaller, flatter and hotter.

    Curre

    nt 1.5 3.5

    2.0

    2.5

    3.0 40

    %

    Current

    2.48 Objecti

    ve

    1.86

    Least

    energy

    efficien

    t

    Most

    energy

    efficien

    t

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    The Reality of Living in a Globally Integrated World

    Increase in global water usage since the 1900s, twice the rate of human population growth

    Idle computer capacity

    Annual consumer product and retail sales lost in United States due to supply chain inefficiencies

    The losses of electrical energy due to inefficiency - around the world

    Annual impact of

    congested roadways

    Worth of produce is wasted in India because of outdated post-harvest infrastructure

    of total port volume in many major ports is empty containers

    Spent on IT maintenance

    Lost annually in the US due to healthcare fraud

    Water

    Money

    Electricity

    Port

    Production Maintenance

    Computer

    Consumer

    Congestion

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    An IBM environmental policy and history

    1971 Environmental

    policy

    1997

    First in the world

    ISO14001 Integrated

    130 or more

    World level

    Environmental

    Awards

    0

    Ordinary Energy saving

    Reduced by Business

    model innovation +

    Energy saving,

    Business model change

    CO2 66%

    Green

    IT

    No1

    1990 1995 2000 2007

    Actual achievement of IBM Japan

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    770

    977

    1203

    1059

    176

    176

    202

    155

    2020年鳩山目標

    2020年旧政府案

    2005年実績

    1990年実績

    エネルギー起源CO2 エネルギー起源CO2以外のCHG

    △15%

    △25%

    △19%

    △36 %

    出所:地球温暖化問題に関する懇談会 中期目標検討委員会

    1

    2

    Unit : million t-CO2

    GHG

    GHG(Green House Gas)

    2020 by Aso

    2020 by Hatoyama

    2005 Actual

    1990 Actual

    GHG: Green House Gas Energy, CO2 (energy origin)

    Is 25% = 25%? - Severe facts in Japan

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    C&T in Tokyo Metropolitan: 8% (Ave) reduction is required(2010~2014)

    Second phase(2015~2019) 17%reduction

    Restriction for 1,300 buildings in Tokyo

    Need totally 25%reduction by 2020 !

    10,000

    t-CO2/year

    Base

    year

    emission

    △8%

    Reduction period 5 years

    (for 1st phase)

    Example : Base year emission = 10,000 t-CO2

    Compliance factor = 8% reduction

    Need 8% reduction on an average (2.8% reduction per year continuously)

    Reduction Method

    1) Self reduction

    2) Emission Trading

    Penalty for non- compliance

    - Required 1.3 times reduce of shortage

    - Monetary fine

    - Fact of violation will be released to the public

    - Governor will purchase credit and charge its cost to the violating installation

    Supposed cost

    for purchasing

    CO2 =

    15,000JPY/1CO2-t

    Allowance 42,000 t-CO2

    (9,200 X 5 years)

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    The world will be changing Smarter Planet

    7

    Smarter traffic

    Smarter water management

    Smarter electricity

    supply

    Smarter food supply chain

    Smarter oil Smarter cities

    Green &

    Beyond Smart Work

    New

    Intelligence

    Dynamic

    Infrastructure

    INSTRUMENTED INTERCONNECTED INTELLIGENT

    + + =

    Digital infrastructure and the physical infrastructure unified

    ../Local%20Settings/Temp/091225%20????????/adv_sp_tvcm_smarterway.mpeg

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Environmental sustainability is an imperative for 21st century business —one that not only encompasses conservation, pollution prevention, and more but also enables the creation of entirely new value and benefits.

    Lower costs while

    overcoming operational

    barriers.

    Strengthen reputations

    while meeting regulations.

    Create products and

    services that give rise

    to new markets.

    Cost New Market Enterprise Value

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    To achieve these benefits, organizations must build:

    Green infrastructure

    Take out cost & improve

    the efficiency of IT.

    Manage environmental impact of assets.

    Enable readiness with regulatory compliance.

    1 Sustainable solutions Increase organizational

    efficiency (processes, products and people).

    Decrease employee environmental impact with remote work and collaboration strategies.

    2 Intelligent systems

    Mange resources at a

    macro level.

    Use predictive analytics for water management.

    Optimize power grid.

    Optimized transportation systems.

    3

    IT Enterprise Society

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Green Innovation cases in the world

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Sustainable solutions: Applications and benefits

    SMART IS

    Consolidating distribution

    centers to reduce emissions

    by 15% and fuel costs by 25%.

    COSCO: Performed an analysis of its operations across product development, sourcing, production, warehousing and distribution. The company ultimately consolidated its distribution centers from 100 to 40 to prevent 100,000 tons of emissions each year.

    SMART IS

    Reinventing manufacturing

    processes to use less water,

    energy and other chemicals.

    IBM Burlington FAB: Retooled its chip-making process to cut annual water use by 20 million gallons, chemical use by 15,000 gallons and electricity use by more than 1.5 million kWh.

    SMART IS

    Reducing travel, real-estate

    and office costs while

    appealing to top talent.

    A smart organization: Can reduce paper consumption by 80%, cut annual real-estate costs by tens of millions of dollars and eliminate 20% of programming (or software) code —and associated energy costs —by re-engineering its workforce operations.

    Distribution Manufacture Paper

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Dashboard

    商品のエネルギー効率性評価(トップランナーとの比較)

    環境対応製品・サービスの割合

    自然エネルギーの活用割合

    排出量取得・報告の自動化割合(含むサプライヤー・協力会社)

    設備別エネルギー効率性比較

    排出量の実測割合

    CO21トンあたり経常利益(Return on Carbon)

    従業員満足度調査(環境への取り組みの影響評価)

    法規制の学習率従業員の学習・成長と満足度の向上

    学習と成長

    施設ロケーション・サプライチェーン評価

    排出源別エネルギー量内訳(電力・ガス・ガソリン・・・)

    総エネルギー量(CO2排出量)

    業務プロセスにおけるCO2排出量の可視化と最適化

    業務プロセス

    顧客満足度調査(環境への取り組みの影響評価)

    自社のCO2削減活動に協力いただいている顧客の割合

    カーボンフットプリントの表示割合

    顧客の意識向上への対応顧客

    CO2削減による財務効果(直接効果・間接効果)

    経常利益/環境投資(Return on Environment Investment)

    収益性の向上財務

    KPI戦略上の目的視点

    商品のエネルギー効率性評価(トップランナーとの比較)

    環境対応製品・サービスの割合

    自然エネルギーの活用割合

    排出量取得・報告の自動化割合(含むサプライヤー・協力会社)

    設備別エネルギー効率性比較

    排出量の実測割合

    CO21トンあたり経常利益(Return on Carbon)

    従業員満足度調査(環境への取り組みの影響評価)

    法規制の学習率従業員の学習・成長と満足度の向上

    学習と成長

    施設ロケーション・サプライチェーン評価

    排出源別エネルギー量内訳(電力・ガス・ガソリン・・・)

    総エネルギー量(CO2排出量)

    業務プロセスにおけるCO2排出量の可視化と最適化

    業務プロセス

    顧客満足度調査(環境への取り組みの影響評価)

    自社のCO2削減活動に協力いただいている顧客の割合

    カーボンフットプリントの表示割合

    顧客の意識向上への対応顧客

    CO2削減による財務効果(直接効果・間接効果)

    経常利益/環境投資(Return on Environment Investment)

    収益性の向上財務

    KPI戦略上の目的視点

    BSC

    GYYGGG総計

    G

    R

    G

    AP

    G

    G

    G

    JapanEMEAEuropeUSTotal

    ・・・

    RGGGGTS

    GGGGIBCS

    YYGGGBS

    GYYGGG総計

    G

    R

    G

    AP

    G

    G

    G

    JapanEMEAEuropeUSTotal

    ・・・

    RGGGGTS

    GGGGIBCS

    YYGGGBS

    Japan

    USEurope

    AP

    EMEA

    Cockpit

    Business

    Energy DB

    Strategy

    Management

    Operation

    Org.HR Info

    Water,Chemical

    Product/Accounting

    Gass, LNG、Chemical

    Amount, quality

    Facility Data Facility Data Facility Data Facility Data

    HQ Division Plant Factory

    LOB Energy MGMT

    Bu

    sin

    ess D

    ATA

    Knowledge

    DB

    Analysis Tool

    経営層

    Invest?

    acceler

    ator

    and

    brakes

    Practical

    Existing System EPD (EMS)

    The Hakozaki CO2 Visualization Project.

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Intelligent systems: Applications and benefits

    SMART IS

    Lowering congestion and

    carbon emissions by

    influencing traffic patterns

    on a city scale.

    Stockholm, Sweden: Implemented

    an intelligent toll system that uses

    cameras, sensors and central

    servers to identify vehicles and

    charge drivers based on when and

    where they drive—cutting traffic by

    20% and emissions by 12%.

    SMART IS

    Knowing exactly where a

    power outage occurs and

    instantly dispatching a

    crew to fix the problem.

    DONG Energy: Installed remote

    monitoring and control devices to

    gain an unprecedented level of

    information about the current

    state of the grid, lessening outage

    times by a potential 25-50%.

    SMART IS

    Using real-time information

    to help reduce the energy

    required to desalinate and

    deliver water.

    Malta: Is building an integrated

    water and energy system that will

    rely on 250,000 smart meters to

    monitor energy usage, identify

    water leaks and electricity losses,

    set variable rates and reward

    customers for using less.

    Traffic Electricity Water

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    August, 2007 system started.

    One - July, 2006: Trial period

    Traffic: 20 - 25% reduction

    Public transportation:

    +40,000 people/day

    Discharge gas (CO2 grade) :

    14% curtailment (in the city)

    Intelligent Traffic System Stockholm tax for congestion

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Driver agent

    Cars

    What-if analysis for traffic of metropolitan scale

    Macro scale simulation

    environment

    Macro scale simulator

    Predicting number of traffic

    in aging society

    current after CO

    2 e

    mis

    sio

    n

    Change of CO2 emission with

    policy enforcement

    aging

    32,000 cars / day

    49,000 cars / day

    2,000 cars / day

    Driver’s model

    Aged Young

    “Agent simulation” provide information for policy consideration

    Virtually validate enforcement of policy, societal change

    “what if” with consideration of traffic restraint, aging society

    Design driver model Decision making model for young / aged driver Capture from driving simulator

    Macro scale traffic simulation in Japan

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Green Innovation Advantage

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    Energy and Environment Framework – House of Carbon.

    • Regulation and compliance

    • Stakeholder and Pressure groups

    • Environmental groups

    • Media

    Market Forces • Customer

    • Shareholder

    • Financial and market

    analyst

    • Competitor

    Reduce

    Demand Manage

    Supply

    Carbon Management

    Strategy

    People Information Product

    IT Property Operation

    Behavioral Change

    Complex Carbon Information Management

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    We become a low carbon company.

    We support improvement in clients' carbon productivity.

    We contribute to realization of low carbon society.

  • © 2010 IBM Corporation

    WORKSHOP ON DELIVERING GREEN GROWTH

    We’ve only just begun to

    uncover what is possible on

    a smarter planet.

    The world will continue to become smaller, flatter and

    smarter. We are moving into the age of the globally

    integrated and intelligent economy, society and planet.

    By systemically managing water and energy use, as

    well as carbon emissions, smart organizations will

    realize true sustainability while achieving real business

    benefits—driving growth at the individual,

    organizational and population levels.

    Beautiful blue earth

    To the next generation