Political leaders and business leaders alike are scrutinizing causes of global climate change, as we saw in the recently released IPCC (Intergovernmental Panel on Climate Change) report. And they're devising solutions to the problem. And just as some countries are ahead of the game insofar as devising regulations to combat greenhouse gas emissions and reduce energy waste, so too are some tech companies out there Political leaders and business leaders alike are scrutinizing causes of global climate change, as we saw in the recently released IPCC (Intergovernmental Panel on Climate Change) report. And they’re devising solutions to the problem. And just as some countries are ahead of the game insofar as devising regulations to combat greenhouse gas emissions and reduce energy waste, so too are some tech companies out there. Among them is IBM, which has had its eye on the green prize for years now. While social responsibility and environmental stewardship have played a role in its leadership, the business opportunities and potential cost savings have been there, too. Edan Dionne, IBM’s director of corporate environmental affairs, provided some very insightful answers, via e-mail, to my various questions about the IPCC report and concerns about global warming, as well as how they affect business — and vice versa. Following is our e-interview. InfoWorld: Why should companies care about the IPCC report, as well as the general growing concern about global warming and climate change? Edan Dionne: Global climate change presents both challenges and opportunities to the business community. As there is strong scientific consensus that global warming is real and is significantly affected by emissions of greenhouse gases related to human activities, it has become clear that all sectors of society, the economy, and governments worldwide must participate in developing solutions to climate change. Additionally, public awareness about the impacts of climate change is also swelling demand from employees, clients, investors, and other opinion leaders to know a company’s stance on this issue and evaluate how “green” that company is. Many companies, like IBM, have been taking actions to manage and reduce their greenhouse gas emissions for many years, while others have initiated actions more recently.The IT industry has the opportunity to play several roles in addressing climate change. IBM has consistently improved the computing power delivered per unit of watt applied with each new generation of products. Over the last several years, IBM has brought its focus on innovation to improving the energy utilization of IT equipment.While much progress has been made, there is still more work to do. IBM’s announcement of “Project Big Green” details the next critical steps that IBM plans to take to improve the energy efficiency of its datacenters and its clients’ operations. Improving the energy utilization of IT equipment and datacenters is important because the application of IT to business and societal energy-efficiency challenges offers us the opportunity to transform the way that society uses energy. For example, IT applications can manage power grids to reduce losses and enable distributed generation. IT can introduce congestion pricing schemes that reduce road traffic and encourage the use of carpooling and mass transit. IT enables businesses to improve manufacturing processes and supply chain efficiencies to reduce waste and energy usage. IT allows people to work remotely to reduce commuting requirements.IW: What do companies need to do to address the problem? What’s the drawback to putting it off, both from a business perspective as well as an environmental perspective? And what is IBM doing? Dionne: Let me answer the last part first. IBM has focused on taking concrete actions to address climate change in its operations, products, and services, including: conserving energy (thus reducing direct and indirect emissions of greenhouse gases); increasing its use of renewable energy; reducing its direct emissions of greenhouse gases from manufacturing and facilities processes; designing energy-efficient products and developing solutions to help our clients reduce their energy use and improve efficiency; participating in voluntary climate protection programs with both government and nongovernmental organizations; and sharing best practices. Other companies should do what IBM and some other leading companies have done — assess their own potential impact on the environment; change the necessary policies, processes, and procedures; set benchmarks for achievement; establish a management system to monitor and report progress on those benchmarks; and take corrective action when needed.It is important to take action today, because addressing the challenges of climate change is a long journey. It is not something that can be handled with one or two quick fixes. As mentioned above, all sectors of society, government, and the economy need to be involved and committed. Collectively, we need to take available actions today — like aggressive energy conservation and efficiency programs and diversification of our energy portfolio to increase the contribution of non-CO2 or low-CO2-emitting energy sources to our portfolio. And we need to encourage research and development efforts to develop the new technologies and innovations that we will need in the future to take the next steps beyond those available today.IW: Should companies be worried about the cost required or the impact making changes will have on doing business? What about current and forthcoming regulations?Dionne: As I mentioned earlier, climate change presents challenges and opportunities. Companies need to assess the impact of a carbon-constrained world on their operations, determine the potential risks that carbon and other greenhouse gas constraints represent to those operations, and plan appropriate contingencies and actions. In many cases, the required actions like energy conservation, making logistics or manufacturing operations more efficient, and diversifying a company’s energy portfolio will result in reduced operating costs, more efficient operations, and provide a competitive advantage. However, a company must make investments to their facilities and operations to realize the savings. IBM estimates that, over the past eight years, annual savings from its focus on pollution prevention and design for the environment have exceeded environmental expenses by an average of two to one, so worrying about the cost required may not be necessary for all companies.Policy, legislative, and regulatory discussions regarding climate change encompass a wide range of suggested measures including demand side management, energy efficiency, renewable energy sources, nuclear power, carbon capture and sequestration, alternative fuels for transportation, alternative transportation systems, pricing practices, and a host of other ideas. Early, voluntary actions help companies develop an inventory of their energy use and greenhouse gas emissions, develop experience in managing their operations with a focus on energy use and its effect on the company’s emissions, and capture operational efficiencies that improve their bottom line. This early work helps position a company to manage effectively in a carbon-constrained world. It also allows them to analyze the potential impacts of climate change regulations from a position of experience and offer meaningful, substantive commentary on approaches to carbon management.IW: What’s the good news here? What are the benefits of reducing emissions, both from a business perspective and a global, environmental perspective?Dionne: The good news is that responses to climate change offer opportunities along with the challenges. Companies will have to manage effectively in a carbon-constrained world, and there will be a variety of operational and financial impacts that companies will need to address. At the same time, there are many opportunities to become more efficient, reduce spending, improve competitiveness, and introduce products and services to assist a company’s clients in managing these same issues. These efforts can benefit the environment, enable and promote the global effort to address the challenges of climate change, and strengthen a company’s business results. Technology Industry