2. Joan Krajewski Senior Director Compliance and Sustainability Microsoft Corporation ARC313 Lewis Curtis Platform Arch Team Principal Architect Microsoft Corporation

3. Promoting Green is Popular

4. But what happens when they get serious?

5. Microsoft Confidential What are the important pieces?

6. We are good at doing this…

7. And this.

8. And this…

9. Microsoft Confidential Before jumping in

10. What is the first rule of any IT Architecture?

11. Understand their Problem Domain

12. Microsoft Confidential Environmental Compliance

13. Microsoft Confidential Their world is tough

14. Microsoft Confidential When things go bad…

15. MVP Architects to be trusted member of the Environmental Compliance Community

16. Focus: Environmental Compliance for IT Architects

17. How does an Architect understand the problem space of Environmental Compliance and Sustainability? What is Microsoft doing in Environmental Compliance and Sustainability? What are the trends in Environmental Compliance?

18. Academic Lectures don’t work

19. Get the most credible resource we could find

20. Microsoft Confidential Environmental Mgt Systems Corporate Policy Driven ISO 14001 Management of Significant Environmental Impacts Sustainability Accounting Metric Driven Carbon Disclosure Project ISO 14064 Product Life Cycle Analysis Compliance Legal Liability Driven Regulatory Compliance Auditing/Monitoring 3 Concurrent Business Models

21. Environmental Principles Environmental Aspects Significant Aspects Management Programs Management Review Legal & Other Requirements Objectives & Targets Communication Documentation Document Control Records Nonconformance Communication Documentation Document Control Records Nonconformance EMS Audits Structure/Training Emergencies Operational Controls Monitoring Measurement ISO 14001 Environ Mgmt Systems – Broadest Frameworkd

22. Design for Green Materials Procurement ProductionDistributionCollection Recycling or Reuse Product Life Cycle Tracks the Business

23. Knowledge Data Processes Requirements Specifications Documentation Assurance – Monitoring THE CATCH Product Life Cycle Targets ISO 14001 Management Programs The Compliance Cycle is the Foundation

24. Coordination is Critical

25. C&S External Influencers Internal Teams Authorities Business Partners Government Regulatory Agencies Shareholders Stds. Orgs. Office of Compliance Employees Suppliers OEMs Distributors Solution Providers Journalists Trade Groups Industry Analysts Financial Analysts NGOs Dev Teams IT Professionals Procurement NPI Manufacturing Quality Partnership Mgmt is crucial in this job

26. Information and Communication Technology (ICT)

27. The Problem is of Governance and Risk Cap and Trade Legislation Increased Energy Costs Kyoto Protocol – Reduction of Greenhouse Gases that are legally binding; implemented on a country by country basis President Obama’s targets setting U.S. on a course to reduce emissions to its 1990 levels by 2020 and reduce them an additional 80 percent by 2050 Disclose of Climate Change risk/opportunities in SEC filings Customer Requirements/Market Share

28. Opportunity Exists Regarding Software Compliance Mgt Solutions Microsoft Dynamics - Environmental Dashboard for Microsoft Dynamics AX enables organizations to manage their carbon initiatives for increased operational efficiency, bottom-line cost savings, and socially responsible business practices. Project Server Technical Computing Sensor Networks

29. But, What is the Value Proposition? Triple Bottom Line noun. A business principle that measures corporate performance along three lines: profits, environmental sustainability, and social responsibility. ECONOMY SUSTAINABILITY SOCIETY Sustainable Development

30. Two Areas to Examine Reducing the base energy used by company ICT Use ICT to enable energy reducing behaviors Information and Communication Technology (ICT)

31. www.GeSI.org

32. ICT’s Direct Footprint > 2% global emissions - 830 Mt C02e (2007) > Set to grow 6% each year until 2020

33. PCs remain largest contributor to emissions The global footprint by sub-sector Projections to 2020

34. Reducing ICT Sector Emissions PCs : > Efficiency gains and longer product life. > Shift from desktops to laptops > Shift from CRT to LCD screens > Potential breakthroughs – solid state hard drives, new LCD screens, new battery technology, quantum and optical computing Datacenters: > Higher rates of virtualisation; more efficient virtualisation architectures > Low energy cooling > “Utility”/“cloud” computing Software as a service Telecoms Devices: > ‘Smart’ chargers > 1W or lower standby devices > Broadband routers and IPTV boxes’ footprint increases over timeframe due to higher penetration from small base today Telecoms Infrastructure: > New network management tools > Network optimisation packages > Solar-powered base stations > Potential breakthroughs – night battery operation, natural ventilation, “network sharing” REDUCING ICT EMISSIONS

35. The Energy Mandate – The Big ICT Opportunity Globally, ICT solutions have the potential to be an Enabler to reduce by 15% of the remaining 98% CO2 emitted ICT enabled solutions could cut annual CO2 emissions in the U.S. by 13–22% from business as-usual projections in 2020. This translates to a gross energy and fuel savings of $140-240 billion dollars. These savings are equivalent to a reduction in total oil consumption by 11-21% and a reduction of oil imports into the U.S. by 20-36%. In the EU – Dec. 12, 2008 - The ICT sector must lead the efforts in Europe to attain our climate change targets," said Commissioner Reding, adding that the EU executive would "play its role" in supporting this trend.

36. The Change Enablement Opportunity Automation Behavioral Changes ICT Sector Platforms for New Developments

37. AutomationBehaviorPlatforms for New Developments Existing Devices Automation of industrial processes Building Automation Smart vehicles Optimization of industrial motor systems New Devices Smart grid Electric car Data driven Smart meters Onboard fuel efficiency monitors IT infrastructure enabled behavior Teleworking Teleconferencing Video conferencing Global monitoring Applications for Efficient Markets Applications for new products and processes design Three Global Directions of Change

38. The SMART 2020-U.S. Addendum describes four main ICT opportunities to cut U.S. CO2 emissions. A smart electrical grid built on better information and communication could reduce CO2 emissions by 230–480 MMT of CO2, and save $15–35 billion in energy and fuel costs. More efficient road transportation could reduce travel time and congestion, shaving off 240–440 MMT of CO2 emissions and saving $65–115 billion. Smart buildings that consume less energy could abate 270-360 MMT of CO2 and save $40–50 billion. Travel substitution through virtual meetings and flexible work arrangements could reduce CO2 by 70–130 MMT and save $20–40 billion. U.S. Addendum to SMART 2020

39. ICT Adding Value The six broad categories of ICT as most likely to add value include: Integrated Energy Mgt. Systems Advanced Communications Systems Advanced Sensors, Meters and Controls Digitally Addressable Devices High Efficiency End Use Devices Design and Simulation Tools

40. Implementation at Microsoft Datacenters Source Clean Energy Efficient Design IT Management Lab Consolidation Power Management Policy Settings Work Alternatives Unified Communications Hosted Collaboration Online tools Commuting – Central Dispatch/GPS Tracking Connector Bus -> Promote commuting alternatives -> Reduces 250k miles per week On Campus Hybrid Shuttles Also, Dematerialization – 15% of annual corporate revenue is spent on document handling Office OneNote Office SharePoint Server 2007 Office InfoPath Digital Download

41. Microsoft Confidential Review: your world

42. Standardise: Develop protocols to enable smart systems to interact Opportunity: ICT can provide information in standard forms on energy consumption and emissions, across sectors, and allow messaging between devices Monitor: Make energy and carbon emissions visible Opportunity: ICT can incorporate monitoring information into the design and control of energy use Account: Link monitoring to accountability Opportunity: ICT can provide the software tools and platforms to improve accountability of energy and carbon throughout service and product life cycles, linking to business decision making Rethink: Optimise for low- carbon, and find alternatives to high-carbon growth Opportunity: ICT can offer new innovations that, if considered during the design phase of buildings, roads and other infrastructure can change our current ways of living Transform: Implement smart low carbon infrastructure at scale Opportunity: ICT can apply smart and integrated approaches to energy management of systems and processes, including benefits from both automation and behaviour change SMART 2020 Transformation

43. Microsoft Confidential Questions? Thank you

44. CO2 Accounting - http://www.ghgprotocol.org/ http://www.ghgprotocol.org/ Environmental Management Systems - http://www.epa.gov/ems/ http://www.epa.gov/ems/ Environmentally Preferred Purchasing - http://www.epa.gov/epp/ http://www.epa.gov/epp/ EU Env. Legislation - http://ec.europa.eu/environme nt/index_en.htm http://ec.europa.eu/environme nt/index_en.htm Intergovernmental Panel on Climate Change - http://www.ipcc.ch/ http://www.ipcc.ch/ Product Energy Efficiency (e.g., servers, data center initiatives) - http://www.energystar.gov/http://www.energystar.gov/ U.S. Env. Laws & Regulations - http://www.epa.gov/lawsregs/ http://www.epa.gov/lawsregs/ helpful resources

45. www.microsoft.com/teched Sessions On-Demand & Community http://microsoft.com/technet Resources for IT Professionals http://microsoft.com/msdn Resources for Developers www.microsoft.com/learning Microsoft Certification and Training Resources www.microsoft.com/learning Microsoft Certification & Training Resources Resources Required Slide Speakers, TechEd 2009 is not producing a DVD. Please announce that attendees can access session recordings at TechEd Online. Required Slide Speakers, TechEd 2009 is not producing a DVD. Please announce that attendees can access session recordings at TechEd Online.

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47. © 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. Required Slide