HP Charged With Meeting Eco-Friendly Requirements of Both Aviva and the European Union (EU)
Eco-friendly is no longer optional. Even in a tight economy, enterprises are placing an increased emphasis on sustainable development, not just because leaders see it as the “right thing to do,” but because it offers a distinct business advantage. Customers and clients respond favorably, employees see it as an enhancement of the corporate culture. And – more often than not – changes that “save the earth” also save money on operational costs like energy expenditures, a strong motivator in this economic climate.
A sure sign that environmental sustainability is gaining traction in the business world is the increased inclusion of “green” in corporate planning, requests for proposals and other transactions. In fact, verbiage about environmental compliance is starting to appear in some contracts and – for the first time – in Service Level Agreements (SLAs) between IT providers and their clients.
One of the first such agreements was signed earlier this year between HP and Aviva, the world's fifth-largest insurance group and the biggest in the UK.
This major outsourcing agreement, worth $1 billion over 10 years, will have HP purchasing two data centers on behalf of Aviva and running the operations of those centers for a decade. HP will provide Aviva with data center modernization services as well as management for the insurance firm's mainframe, midrange and Windows® servers.
HP will also be charged with meeting eco-friendly requirements of both Aviva and the European Union (EU) throughout the duration of the contract and will be held accountable as part of a formalized agreement between the two companies.
“We talk about environmental sustainability with many of our clients,” says Clive Freeman, HP account manager for Aviva, “but this is the first instance of our putting the specifics in writing. We have an entire section of our SLA that details our ‘green' obligations with this client and our side of a partnership approach to climate change.”
On the client side, it's a reinforcement of the way they approach their business every day.
“Corporate Responsibility is the 'how' in the way we conduct business in Aviva, says Malcolm Simpkin, IT Services Director for Aviva UK. “It is embedded in every aspect of our business and working with business partners is no exception. When it comes to outsourcing, we have an even stronger focus.”
Among its specifics, the SLA requires that HP:
- Utilize “eco-friendly” or renewable power sources to run the data centers and prepare an annual report detailing compliance with this requirement
- Carry out a strategic review of the use of renewable energy in delivery of the service contract
- Develop and implement an environmental management system within the first year of the contract
- Conduct an annual environmental audit and hold an annual environmental review meeting between Aviva and HP to review progress, set targets and investigate new technologies and processes
- Review the utilization of equipment to best eliminate waste and demonstrate energy efficiency improvements through a “consumption normalization” metric
- Ensure that all systems, equipment and other items comply with the European Union's Waste Electrical and Electronic Equipment Directive (WEEE) and the Restriction of Hazardous Substances Directive (RoHS)
- Fully comply with the disposal process required by the WEEE
- Register the two data centers for the new EU Code of Conduct for data centers which encourages best practice in all areas of energy efficiency and minimization of environmental impacts for data centers
“Throughout Europe, and especially here in the U.K., we are seeing an increased emphasis on the environment,” says Freeman. “While this agreement is innovative today, I think it will soon be quite commonplace with our clients.”
Anne Augustine, EMEA Global Citizenship & Environmental Sustainability Manager for HP, agrees with that assessment. “What we're doing with this client is nothing new,” she says. “It is simply the first time we've formalized the environmental aspects of our work. The fact is that we'll be implementing many of the same high level of eco-services that we do throughout the world.”
For example, says Augustine, the project will be using an HP-developed and patent pending carbon application (C-Counter) to baseline and then proactively manage the carbon impact of the IT services over the duration of the agreement. Developed in Australia as part of the HP Carbon Assessment Service, C-Counter provides accurate mapping of emissions from IT assets by measuring, monitoring and storing carbon usage data in real time.
Also, she says, all hardware utilization will be benchmarked and monitored every year to clearly show a reduction in the cost of the data center in financial and carbon terms.
“In complying with the terms of this contract, we're able to bring the environmental sustainability expertise of HP to the table,” says Freeman. “For example, we're using elements of HP Design-for-Environment (DfE), an engineering perspective in which the environmentally related characteristics of a product, process or facility are optimized. Our experts identify, prioritize and recommend environmental improvements through a company-wide DfE program. HP's DfE guidelines derive from evolving customer expectations and regulatory requirements, but they are also influenced by the personal commitment of its employees.”
HP adds further structure to the Aviva project through its Environmental Sustainability Program, an internal governance model that includes a Global Environmental Governance Council, Global Environmental Core Team and regional implementation teams. These teams, led by HP's Global Environmental Sustainability manager, work to ensure HP is using people, capabilities and innovative thinking to address climate change and other environmental issues while continuing to address these critical business imperatives: lowering costs; retaining and growing their customer base; increasing market share; and increasing shareholder value.
“We're demonstrating through our strategies that environmental responsibility and business success go hand in hand,” says Augustine. “Doing what's right for the environment is not only the right thing to do” she says, “but also a smart business practice.”
Augustine adds that HP's energy-saving IT solutions can help reduce power costs by up to 60 percent, while driving ever-greater computing performance. Gains in energy efficiency help cut facility costs as well, contributing to lower cost structures that can make a business more competitive.
“Environmental responsibility makes financial sense for our customers,” says Augustine. “It's a win-win situation.”
It's a win that also extends beyond the data center walls. As an extension of this formalized contract, HP has committed to jointly engage with Aviva in the local area to help the general public become more aware, and responsibly dispose of, old and unused IT equipment. Planned efforts include an HP ‘Take Back Event,' produced by HP staff and Aviva Group employees, which allows individuals to conveniently recycle unwanted computers and equipment from any manufacturer. HP's take-back service includes pickup, transportation, evaluation for reuse or donation and environmentally sound recycling for products ranging from PCs and printers to servers and scanners.
“In the last year HP held more than 100 direct take back events across Europe where people were invited to return any brand of old IT equipment to HP,” says Kirstie McIntyre, Environmental Take Back manager, for HP in EMEA. “Where possible, old equipment is refurbished and donated to charity or, if it cannot be refurbished, it gets recycled. Research from the University of Vienna, commissioned by HP, found that less than one percent of IT equipment at municipal waste sites can be reused. However, HP has found that this figure rises up to 50 percent when equipment is collected through direct take back events,” she says.
Simpkin adds that this collaborative event helps strengthen the relationship between HP and Aviva, building upon the partnership that was established during the contract negotiations.
“When we outsource at Aviva, we don't 'wash our hands' of our responsibility of the environmental challenges involved in the area of the business,” he says. “We are therefore very pleased that we are able to build this level of cooperation into the SLA to ensure that reductions in environmental impacts can be achieved to the mutual benefit of Aviva and HP and, of course, the environment.”
Freeman agrees, adding: “We're leading by example, and this groundbreaking SLA is just one more way we're delivering on our promise to make a difference for a greener world.”