cisco green it

Slide 1: Green Building From Concept to Reality Jayes Kim 김준식 Internet Business Solutions Group (IBSG) July 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 1

Slide 2: Agenda Why Green? Greenhouse Gas, Building, and ICT Building Efficiency Green Energy Green ICT Reducing Travel Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 2

Slide 4: What is Green? “Green is used to mean environmentally friendly”. Thus, green is more than CO2 emissions and global warming, and includes: Energy efficiency in general (process, product) Material efficiency, the minimization of waste (manufacturing, packaging, etc.) Sustainable sourcing of raw materials Restrictions on hazardous materials (in production process and in product) Prevention of food and drug contamination Protection for the safety of consumers Full lifecycle product management, including recycling, reuse, and safe disposal Green for Building “Water”, “Energy”, “Building Materials”, “Solid Waste” Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 4

Slide 5: Green Strategy. It Is Simple Waste Hierarchy Prevent Reduce More Reuse favorable Recycle Disposal Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 5

Slide 7: 3 Key Green Trends in Business 1. Skyrocketing energy price Impact: Increased costs 2. Compliance with new regulations Impact: Higher costs and operational restrictions 3. Rise of ethical consumerism Impact: Lost sales to “greener” competitors Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 7

Slide 9: Environmental Regulations and Policies Are Impacting Business Harvard Business Review Harvard Business Review China Green construction will become a mainstream China Green construction will become a mainstream 1.Reduction of energy use 1.Reduction of energy use technology in the next 5 to 10 years (Nov 2006) technology in the next 5 to 10 years (Nov 2006) per unit of GDP by 20% by per unit of GDP by 20% by 2010, 65% by 2020 2010, 65% by 2020 2.Govt. to develop/refurbish 2.Govt. to develop/refurbish buildings to be green buildings to be green 3.Municipal regulations for 3.Municipal regulations for Europe Europe new building projects new building projects 1.20% Reduction by 2020 1.20% Reduction by 2020 4.IAQ regulations in 2007, 4.IAQ regulations in 2007, US US 2.Energy Trading Scheme, Alternate Peak Power Usage Alternate Peak Power Usage 1.US GBC (LEED) 2.Energy Trading Scheme, 1.US GBC (LEED) Equator Financing Schemes Schemes 2.Grid wise, ADR Equator Financing 2.Grid wise, ADR 3.BRE Environmental 5.Sustainable Building 5.Sustainable Building 3.All Federal Buildings to 3.BRE Environmental 3.All Federal Buildings to Assessment Method Certification Schemes in Certification Schemes in be Green Assessment Method be Green (BREEAM) Shanghai, China GBC Shanghai, China GBC (BREEAM) 6.11 eco-cities, 140 LEED 6.11 eco-cities, 140 LEED buildings buildings India India Middle East Middle East 1.Bureau of Energy 1.Bureau of Energy 1.UAE Government mandates 1.UAE Government mandates Efficiency set up, 30% Efficiency set up, 30% that all new buildings have to that all new buildings have to reduction in energy reduction in energy be Green from 2008 be Green from 2008 consumption. TE, IRI and consumption. TE, IRI and GIRHA ratings, In GBC GIRHA ratings, In GBC 2.Projected 10-12% Green 2.Projected 10-12% Green Buildings out of new Buildings out of new construction construction Cisco Confidential © 2006 CiscoCopyright © 2008 Cisco Systems, Inc. Cisco Confidential Presentation_ID Systems, Inc. All rights reserved. All rights reserved. Internet Business Solutions Group 9 9

Slide 10: Consumers Worldwide Are Concerned About Global Warming… Major Concerns of Worldwide Public 45% 40% 39 41 The Economy 37 Health Concern 35% 34 32 About 30% 30 Job Security Global Warming 25% Has 20% Doubled 16 Global Warming 15% 15 14 Political Stability 14 13 Crime 13 10% 11 12 Terrorism 7 8 War 5% 6 6 Immigration 0% October 2006 April 2007 Source: Nielsen, “Climate Change and Influential Spokespeople,” 2007 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 10

Slide 11: …And Are Willing to Change “I am willing to make significant changes to the way I live to help prevent global warming” North Canada 86 12 America United States 76 22 Italy 93 6 Spain 86 12 Europe Great Britain 81 16 Germany 69 28 Russia 43 41 Philippines 95 4 China 83 14 Asia Indonesia 82 13 S. Korea 56 30 India 55 17 Note: Gaps represent respondents who did not answer or did not know. Agree Disagree Source: BBC World Service Climate Change Poll, 2007 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 11

Slide 13: What Does Your Carbon Footprint Look Like? CO2 Emissions Vary by Industry and Company Illustrative Example 9 100 100 24 33 Mfg & Logistics 6 % of CO2 Emissions 4 9 Travel 2 19 3 43 5 ICT 43 Buildings 33 0 Offices Data Office ICT Company Taxis Air Production Logistics TOTAL Centers Cars Travel Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 13

Slide 14: What ICT Can Do for Your Green Appetite? Intelligence: ICT helps the building and the energy supply more efficient. Substitution: ICT substitute physical movements or spaces for virtual communications. Awareness: ICT keeps awakening the tenants or users. Its Own efficiency: ICT innovate itself to be greener. Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 14

Slide 16: Ways the Network Can Reduce Building-related CO2 Emissions Converge existing building-management and ICT systems on the same underlying data network; incorporate the latest intelligence in systems and controls Redesign office space; use ICT solutions to improve efficiency and enable “hot-desking” Promote environmental awareness by giving building users real-time information on energy use Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 16

Slide 17: Converging Networks onto IP Enables Intelligent Building Management ICT Systems Building Systems High-speed Internet Lighting Wireless Elevator VPN 24/7 Monitor IP Telephony HVAC Audio- and Video- Fire conferencing Visitor Management Video Surveillance Interactive Media Access Digital Signage Energy Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 17

Slide 18: Better Office Utilization Saves Energy and Reduces Materials Cisco’s Connected Workplace Reduces Space by 40% per Employee and Energy Use by 58% per Employee Construction Savings Operations Savings 58% Reduction in Energy for Heating, Cooling, and Lighting Typical savings for a 450 100,000-square-foot office: 400 1,500 tons of concrete Watts Per Employee 350 300 280 tons of steel 250 2,850 tons of CO2 200 emissions 150 100 This is the equivalent of 50 taking 560 cars off the road 0 for a year Traditional Connected Workplace Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 18

Slide 19: Options for Greener Buildings Estimated HIGH Challenges Actions Impact Integrate Design buildings with converged ICT and Reduces “green” into building management systems, with energy use overall design automated controls for energy efficiency by 30%+ and reduced emissions DEGREE OF IMPACT Reduces Use office Design flexible, collaborative workspace energy by 20- space more with pervasive connectivity and efficient 30% and efficiently sharing of expensive assets furniture / ICT costs by 40% Increase Use dashboards to provide real-time Reduces energy visibility into energy use; recycle and energy use awareness reduce paper and electronic waste by 10-15% LOW Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 19

Slide 21: Decentralized Energy Microgeneration Reduced need for costly transmission systems and shorter times to bring on-stream; Substantially reduced grid power losses over long transmission distances; Improved reliability of industrial parks, information technology and data management systems including stock markets, banks and credit card providers where outages would prove to be very costly (IEA, 2006g); Proximity to demand for heating and cooling systems which, for fossil fuels, can increase the total energy recovered from 40–50% up to 70– 85% with corresponding reductions in CO2 emissions of 50% or more; Zero-carbon, renewable energy sources such as solar, wind and biomass are widely distributed and useful resources for DES. Source: IPCC Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 21

Slide 23: Cisco@Smart Grid? “One possible model for the electricity network of the Cisco provides future would be analogous 70% of the to the Internet, in the sense that decision-making is Internet distributed and that flows infrastructure! are bidirectional.” Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 23 23

Slide 24: Illustrative Architecture Technological Options for Demand-Side Management Electricity Demand- In-house Communication Home Market Management Options Appliances EIB (UTP cable, separate protocol Utility Smart Definition Meter consumption Demand- Consumption profile response data PLC (LAN plugs, Power IP-protocol Exchange Smart Home Energy Controller • Control Radio • Optimization (WLAN, Day-ahead • Management ZigBee, prices Z-Wave, WiMAX, Insteon) EIB: European Installation Bus, common standard in Europe and the U.S. Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 24

Slide 26: Steps You Can Take to Reduce ICT-related CO2 Emissions Virtualize servers and storage; implement shared SANs Specify energy-efficient equipment Reconfigure gear for optimal airflow and power management Reduce wasted energy by turning off unused equipment Reduce wasted materials and paper by recycling and reducing paper-based transactions Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 26

Slide 27: The Scope of Green ICT Opportunities Major Focus Is the Data Center There are green ICT opportunities in design, manufacturing, operation, and disposal For every dollar spent on computer hardware, 50 cents are spent on power and cooling, growing to one dollar by 2012 Energy will be second-highest operating cost in 70% of worldwide data center facilities through 2009 In 2008, half of data centers will have insufficient power and cooling capacity Many organizations face annual energy bill higher than their annual server budget Sources: Forrester Research, 2007; Gartner Group, 2006; Storage magazine, 2007; IBM, 2007; Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 27

Slide 28: Options for Greener ICT Operations Estimated HIGH Challenges Actions Impact Integrate Reduces DC Use renewable energy, and design data “green” into energy use center with efficient equipment and by up to data center cooling systems 50% (DC) design DEGREE OF IMPACT Virtualize servers and storage, configure Reduces DC Optimize racks for optimal airflow, and optimize OpEx* by architecture ~50% power efficiency Improve Reduces DC Avoid waste, recycle, and promote energy use operational energy awareness by 5% efficiency LOW * Includes energy costs. Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 28

Slide 30: Steps You Can Take to Reduce Travel-related CO2 Emissions Shift employee car travel to alternative / public transportation Migrate to “greener” company car fleets Promote teleworking and “homeshoring” to avoid commuting Replace business travel with virtual conferencing Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 30

Slide 31: Avoiding the Commute with Teleworking and “Homeshoring” Teleworking “Homeshoring” Enabled by new technologies Virtual call centers employ Avoiding daily commute of home-based customer service 27 miles saves 3 tons of CO2 agents per year, improves air quality, Virtual call centers will employ and reduces traffic congestion 328,000 agents in the U.S. Teleworkers are often more by 2010—24% annual growth productive and work longer hours Home-based agents offer greater productivity, higher retention rates, greater flexibility Sources: CDW Telework Study, 2007; IDC, 2006; Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 31

Slide 32: Conferencing Solutions Enable Collaboration Without Travel TelePresence: Integrated Audio-/ Webconferencing Immersive Webconferencing with Video “In-person” Conferencing Capabilities—Richness of User Experience Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 32

Slide 33: Options for Greener Travel Cumulative Estimated HIGH Challenges Actions Impact Significantly Additional Use a full suite of mobility and collaboration reduce travel- 10-25% technologies, including Cisco TelePresence; reduction related carbon use home-based call center agents in air travel footprint DEGREE OF IMPACT Additional Reduce 10-20% Introduce virtual conferencing tools to employee reduction in avoid travel; promote teleworking ground commute travel Reduce carbon 15-35% Promote greener car fleet and public reduction footprint of transportation in car-fleet company car carbon fleet LOW Source: Cisco IBSG, 2008 Cisco Confidential Copyright © 2008 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 33

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