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Greening The Internet

Joseph AlhadeffVP Global Public Policy and Chief Privacy Officer

Avoid false dichotomies

• The carbon footprint of ICT is important,

But • The potential of ICT

to measure, contain, mitigate, and solve environmental problems is much more critical to a sustainable future.

Eco-EfficiencyOptimize resource utilization

Minimize carbon footprint

Eco-TransparencyProtect business reputation

Promote green brand

Eco-InnovationDesign green products

Implement green processes

Path to a Greener Future

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Sustainability:A Market Perspective

The Sustainability Paradigm

Source: Brundtland Commission Report, 1987

InnovationRisk Management

Margin ImprovementGrowth Enhancement

Job CreationSkills EnhancementSocial Investments

Business EthicsSecurity

Clean Air, Water & LandEmissions Reductions

Zero Waste, Releases & Spills

DiversityHuman Rights

Community OutreachLabor Relations

Safety & HealthEnvironmental Regulations

Global Climate ChangeCrisis Management

Resource EfficiencyProduct Stewardship

Life-Cycle ManagementProducts to Service

Social Progress

Environmental Stewardship

Socio-Environmental

Socio- Economic

Eco-Efficiency

Economic Growth

Copyright 2009 Oracle Corporation.

• Resource Depletion / Rise in Commodities

• Push for Accountability and Transparency

• Move Towards Regulations

•

Pull from Financial Markets

• Peer Pressure on Rise

• Need to Be Part of DNA and

Corporate Governance

Trends & Drivers for Sustainability

Oil prices, Energy consumption, Commodity prices on Water usage, Air pollution and climate change

awareness

Demands on companies from major stakeholder groups, such as shareholders, employees, and financial institutions

Corporate transparency (the Global Reporting Initiative, OECD guidelines, the UN Global Compact)

Dow Jones Global Index and the Dow Jones Sustainability Index showed that the Sustainability Index significantly

outperformed the other index, Socially Responsible Investment (SRI), Carbon Disclosure Project (CDP)

Peer pressure is influencing companies to be more transparent

Sustainable development becomes more engrained in companies and their governance structures, it will challenge and eventually change the parameters of

acceptable corporate behavior

Copyright 2009 Oracle Corporation.

Functional View of SustainabilityIntelligent Management of Carbon, Energy and Other Natural ResourcesRisk & Performance Management

Data Collection & Contextualization

IT Infrastructure

Supply Chain & Operations Management

Sustainability Business

Intelligence

Sustainability Management

Environmental Compliance & Risk Management

Environmental Compliance & Risk Management

Sustainability ReportingSustainability Reporting

Natural Resource Planning and Budgeting

Natural Resource Planning and Budgeting

Carbon Cap & Trade, Offset Management

Carbon Cap & Trade, Offset Management

Digital Content Management

Digital Content Management

Workload ManagementWorkload Management

Application ConsolidationApplication Consolidation

Software-as- a-ServiceSoftware-as- a-Service

Server & Storage Virtualization

Server & Storage Virtualization

Design for the EnvironmentDesign for the Environment

Sustainable ProcurementSustainable Procurement

Supply Chain PlanningSupply Chain Planning

Green ManufacturingGreen Manufacturing

Environmental Health and Safety

Environmental Health and Safety

Intelligent Asset Management

Intelligent Asset Management

TransportationTransportation Reverse LogisticsReverse Logistics DematerializationDematerialization Smart Utility

GridsSmart Utility Grids

ERP & SCM IntegrationERP & SCM Integration

Emissions CalculationsEmissions Calculations

Meters, Building & Energy Systems Integration

Meters, Building & Energy Systems Integration

Shop Floor Control and MES

Shop Floor Control and MES

Data AggregationData Aggregation

Operational AnalyticsOperational Analytics

Enterprise AnalyticsEnterprise Analytics

Policy MgmtPolicy Mgmt

Controls MgmtControls Mgmt

Data Verification

Data Verification

Copyright ©2009, Oracle. All rights reserved. Oracle Confidential

The Business Case for Sustainability

• Measurable Reduction in Operating Costs

• Stock Markets Rewarding Leaders

• Strengthened Brand and Reputation

• Improved Stakeholder Relations

• Indirect Savings Through Avoidance of Environmental Risk

• Innovation/Differentiation Opportunities

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Enabling the Eco-Enterprise

ICT – An Enabler of Sustainable Design

• Think in terms of ecosystem (value chains etc)• Use ICTs to gather information and model processes• Make information actionable by reconsidering

process, flow, and organization of activities• Better understand impacts and identify waste• Balance between just-in-time and cost saving loads• Optimize the ecosystem to capture the potential

benefits of ICTs and related technologies – much more than “paperless”

• Find the cultural and motivational dimension that applies to your enterprise/staff

• Traditionally supply networks are optimized on time and cost

• Model carbon emissions – Manufacturing Lines– Product Sourcing– Transportation Lanes

• Build in cap-and-trade constraints• Run scenario analyses to align

network design in the context of strategic business objectives

• Analyze supply network risks

Eco-Innovative Supply Chain DesignRe-evaluating the Optimization Equation

Copyright 2009 Oracle Corporation.

• Load Optimization– Increased weight & volume utilization of

transportation assets results in lowered energy consumption and emissions

• Dock Optimization– Increased loading/unload efficiency

results in reduced truck idle time and emissions

• Route Optimization– Increased efficiency per unit of

distance traveled results in lowered energy consumption and emissions

Eco-Efficient TransportationReduce Financial and Environmental Costs

Copyright 2009 Oracle Corporation.

• Oracle Real Application Clusters• Commodity hardware, smaller servers• Improved hardware utilization• Hardware consolidation

• Oracle Virtual Machine• Most efficient use of available system resources• Three times more efficient than other server virtualization products• Reduce power and space requirements

• Oracle Active Data Guard• Leverage your existing disaster recovery site• No additional storage or servers required• Offload resource-intensive activities from the production database

• Oracle Advanced Compression• Use resources more efficiently• Reduce disk space requirements• Lower storage costs

Eco-Efficient Data Centers

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Some of the things we’ve been up to…

And how our products help us, and our customers, go green

Oracle Corporate Citizenship

Oracle is committed to using our technology and resources to advance education in innovative ways, protect the environment, promote diversity, and enrich community life.

www.oracle.com/commitment

Copyright 2009 Oracle Corporation.

• First software company to participate in the U.S. EPA Climate Leaders Program

• Member of the U.S. EPA Green Power Partnership Program

• Member of the Climate Savers Initiative

• Participate in Demand Response Programs

• 14 European and South African operations are certified to the ISO 14001 environmental standard

• Best Workplace for Commuters Award Winner

• Conservation and recycling programs ranging from water, paper, waste, etc.

Oracle Environmental Stewardship

Copyright 2009 Oracle Corporation.

• > 6% of renewable energy > 6% of renewable energy • Energy usage reduced to < Energy usage reduced to <

0.5kWh supporting each kWh of 0.5kWh supporting each kWh of IT equipment IT equipment

• Support energy use is >50% Support energy use is >50% less than typical industry less than typical industry practicepractice

Austin Data CenterTowards an Energy Efficient Benchmark

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"Technology vendors have a critical role to play to enable more sustainable business practices," said Cody Sisco, Manager of Advisory Services at BSR (Business for Social Responsibility). "The emphasis on sustainability at Oracle's global customer and partner event demonstrates how important it considers these opportunities. Through Oracle's "Enable the Eco-Enterprise" awards, Oracle is rewarding more sustainable business practices, and demonstrating how other organizations can use technology to cut costs, improve business efficiencies, and minimize their environmental impacts. We encourage Oracle and the software industry to continue to accelerate their customers' progress in addressing sustainability challenges."

Enabling the Eco-Enterprise Award

Oracle products that help reduce costs by optimizing resource utilization and minimizing an organization’s carbon footprint:

• Oracle Real Application Clusters allow customers to add capacity on demand with one inexpensive PC server at a time. This helps save on electricity, cooling, and floor space.

• Oracle Active Data Guard offloads resource-intensive activities from databases in the primary data center to an underutilized standby site. This enables greater hardware efficiency and lower operating costs.

• Oracle Advanced Compression compresses any type of data, including structured and unstructured data such as documents, images, and multimedia, as well as network traffic and data generated in the process of being backed up. As a result, companies can significantly lower storage requirements, increasing energy efficiency.

• Oracle VM is server virtualization software that fully supports both Oracle andnon-Oracle applications. With Oracle VM, companies

can consolidate servers and reduce power consumption.• Oracle Self-Service Applications automate formerly paper-driven processes. With these

applications, companies can reduce a company’s carbon footprint by cutting consumption of natural resources through elimination of printing and distribution. Oracle Self-Service Applications include the following:

- Oracle Procurement— manages the procurement of goods and services online- Oracle Internet Expenses— manages the expense reimbursement process- Oracle Payables—automates invoice processing- Oracle eBilling Manager—enables online bill access and payment - Oracle Web Conferencing— enables virtual meetings, with the ability to view visuals

Oracle products that help companies design green products and implement green processes:

• Oracle’s Agile Product Lifecycle Management solutions enable companies to accelerate product innovation and maximize product profitability by managing product information, processes, and decisions throughout the product lifecycle and across the global product network. Companies using Agile Product Lifecycle Management are able to implement “cradle-to-cradle” product design processes that assume no waste at all.

• Oracle Asset Lifecycle Management consists of many solutions that are part of Oracle E-Business Suite Financial family of applications. These products give an organization the ability to monitor assets—from service and maintenance, to upgrade, transfer, or configuration—during their entire lifecycle. Companies can also reduce energy use and improve asset performance through reliability-centered maintenance.

• Oracle Lean Manufacturing allows companies to implement processes that eliminate the wastes that inflate costs, lead times, and inventory requirements. With Oracle Lean Manufacturing, companies can more easily adhere to environmental compliance initiatives and develop processes that promote environmental sustainability.

• Oracle Reverse Logistics manages the handling and disposition of returned goods, improving a company’s ability to put returned goods back on the market, while providing better data on why goods are returned. Companies implementing reverse logistics processes can dramatically reduce the waste going into landfills and increase opportunities to reintroduce returned products to market.

• Oracle Strategic Network Optimization helps companies optimize global supply chain operations and deploy improved risk mitigation strategies. With “what if” scenario capabilities, companies can model and predict impacts of implementing green networks.

• Oracle Transportation Management delivers transportation planning and execution capabilities to shippers and third-party logistics providers. It integrates and streamlines transportation planning, execution, freight payment, and business process automation on a single application across all modes of transportation, which allows companies to build more efficient and environmentally friendly distribution networks.

Oracle products that improve brand by making sustainability efforts transparent to the market:

• Oracle Business Intelligence (BI) is a portfolio of technology and applications that provides the industry's first integrated, end-to-end Enterprise Performance Management System, including category-leading performance management applications, BI applications, BI foundation and tools, and data warehousing. With Oracle Business Intelligence, companies can identify metrics and create dashboards to monitor environmental sustainability activities. With holistic visibility into sustainability efforts, companies can confidently promote socially and environmentally responsible activities.

• Oracle Governance, Risk and Compliance Manager (GRC Manager) delivers end-to-end support for GRC processes—including best-in-class infrastructure services for content and records management, identity management and access control, and change and configuration management—along with integrated intelligence for insight into the status of all GRC activities across the enterprise. With Oracle GRC Manager companies can monitor and report on compliance with global regulations, while safeguarding their brand and reputation through information reliability and data protection.