Aligning economic impact with environmental benefits: A green strategy model

Abstract

To achieve lower energy consumption many green strategies (e.g. virtualize applications and consolidate them on shared server machines, or optimize the usage of the private cloud by opening up to external consumers) have been discussed. In practice, however, the major incentive for a company to go green is reducing costs. While green strategies often focus on technical and environmental issues, they hardly address the economic impact that they may bring. If green strategies do not lead to an explicit (and significant) reduction of costs (hence increase in revenues) they are nice but not part of the business strategy of the company. In this paper we propose a green strategy model that provides decision makers with the information needed to decide on whether to take green strategies and eventually how to align them with their business strategies. This model provides a means to codify green strategies in such a way that the link between green strategies, their economic impact and green goals becomes explicit. We applied the model in a case study to codify 132 green actions collected from Dutch data centers. This exercise further confirmed the advantage of using the proposed model and helped us identifying future improvements.