Going Green with Information Technology: Benefits and Challenges

Introduction

There has been a corresponding growth in innovations in information technology and the recognition that companies of all sizes and types must reduce their impact on the environment by adopting so-called green practices. For micro-businesses with just one or a few employees, this may mean something as simple as recycling aluminum cans and paper, but for larger enterprises, going green may mean investing significant resources upfront with the expectation that the payback will be worthwhile—both in terms of energy savings and through an improved corporate image. To determine how companies can benefit from going green today, this paper reviews the relevant literature to define going green with information technology, analyze its impact on the environment, and discuss the pros and cons associated with these practices. A description of practical ways to implement green IT is followed by a summary of key research findings in the conclusion.

What Does Going Green with Information Technology Mean?

Faced with impending peak oil around mid-century, it has become both patriotic and pragmatic—for consumers and businesses alike—to search for alternative energy resources to replace dwindling supplies of fossil fuels. These efforts have widely been characterized as "going green." For example, Morey (2012) emphasizes that "the world today is hooked on the idea of going green. From installing solar panels on homes and businesses to driving hybrid cars, the efforts to be more environmentally friendly are becoming more and more visible" (p. 119).

There is nothing especially complex or mysterious about going green, since the term simply means improving business performance in ways that contribute positively to the natural environment in which companies operate. Information technology can facilitate this process in a number of ways. In this regard, Huang, Ding, and Kao (2008) report that "green innovations are new technical improvements or administrative practices for improving natural environmental performance and competitive advantage of an organization" (p. 9). The technical innovations that characterize green practices are those that contribute to the improvement and refinement of product and service development and manufacturing technology; by contrast, administrative innovations affect managerial activities directly and influence the design of organizational administrative processes indirectly (Huang et al., 2008).

The Impact of Going Green with Information Technology on the Environment

Although every business setting will be unique, the impact of going green with information technology on the environment will directly relate to the extent that adopted practices supplant or replace environmentally harmful ones. In this regard, Schiller (2011) reports that "there were an estimated 592 million PCs in use in 2002, but this will rise to four billion by the end of the decade. Any company that cares about climate change therefore has an incentive to consider how IT equipment is designed, organized and bought. Moreover, many have found that there are substantial cost savings to be made from adopting green IT principles—reducing energy and equipment costs and driving greater efficiency in working practices and procedures" (p. 15).

This analysis can quickly become inordinately complex when the entire supply chain of products and services is taken into account, and many smaller companies in particular must be satisfied with informed estimates in the absence of further empirical research. Larger companies, however, have realized significant reductions in their carbon emissions through improved fleet management and supply chain management practices using information technology (Basile, 2008). According to Basile, "companies of all sizes are realizing the enormous economic potential of being green. The latest wave of environmental awareness and the existence of a growing number of green technologies have placed within reach the possibility of being a good environmental steward while growing the bottom line" (p. 22).

Despite the potential for being perceived as engaging in greenwashing, a growing number of business leaders concede that it is their intention to do well while doing good, and that the bottom line remains the most important overarching factor in considering the effects of information technology on green initiatives. An examination of the respective pros and cons associated with going green with information technology is therefore warranted, as discussed in the following section.

Conclusion

Computers and their peripherals have made it possible for consumers and companies alike to interact in more efficient ways, but the paperless office envisioned when these devices first emerged has not been fully realized. Nevertheless, the research demonstrates that going green with information technology makes good business sense because of the wide range of positive outcomes that can be achieved, including an enhanced corporate image and an improved bottom line. While every company is unique and its approach to using IT to achieve improved environmental practices will differ, the research consistently shows that innovations in technology can be applied in ways that designers may not have anticipated, and that savings in energy and other resources are achievable when information technology systems are optimized to reduce excessive energy consumption.

The research also reveals significant downsides to using information technology, even for the most laudable environmental purposes—most notably the growing volume of toxic waste generated by obsolete IT equipment. Despite these constraints, the enormous investment in information technology to date indicates that these resources will be present for the foreseeable future. It is therefore vitally important to use them in ways that leverage their greening capabilities while minimizing the potential environmental threats they represent.

Basile, T. J. (2008, July). A green formula. PM Network, 4, 22.

Chen, A., Dietrich, K. N., & Huo, X. (2011, April). Developmental neurotoxicants in e-waste: An emerging health concern. Environmental Health Perspectives, 119(4), 37–39.

Huang, Y-C., Ding, H-B., & Kao, M-R. (2009, July). Salient stakeholder voices: Family business and green innovation adoption. Journal of Management and Organization, 15(3), 9–10.

Morey, T. (2012, March/April). Going green beyond the greenhouse. The Agricultural Education Magazine, 84(5), 119–120.

Schiller, B. (2011, May). Greener IT: The number of computers in use globally is set to hit four billion by 2020. Financial Management (UK), 11–12.