HSBC saves millions of pounds through green IT

HSBC predicts it will save $11m every year using environmentally friendly IT.

The bank's green IT strategy, which began in 2005, will provide a significant return on investment, said HSBC. This will pay dividends when the world enters recession, the bank claimed last week.

The company set targets to reduce energy, waste, water and CO2 emission in 2005. It has since set targets to reduce the amount of energy it uses in IT by 8% and cut CO2 emissions resulting from IT by 6% by 2011.

Matthew Robinson, managerof group corporate sustainability at HSBC, said: "There are many benefits to operating environmentally sustainable IT systems, which are perhaps even more significant in times of a recession."

The bank calculates that, usingcurrent utility prices, HSBC's reduction in energy and water consumption has resulted in an average annual saving of more than $11m. "By reducing the amount of electricity we consume and buying green electricity, we also decreased the volume of carbon dioxide we emit by 130,000 tonnes," said Matthew Robinson.

The bank is planning to accelerate its green IT initiatives this year.

It is increasing its use of video conferencing to reduce the need for air travel and meet its C02 reduction targets from flying in 2009. HSBC is consolidating all IT systems through the 'One HSBC' programme, increasing efficiency while reducing energy consumption and waste.The bank uses server virtualisation software widely to reduce power consumption and waste.

HSBC plans to carry out environmental audits of its datacentres in the UK. It hopes this willhelp it understand their energy requirements and improve their efficiency. All of HSBCs new datacentres will use local green building standards.

The bankhas submitted an application to build an environmentally friendly £300m, 325,000m2datacentre in North Yorkshire. The site, near York, will support the local environment and heat a local swimming pool through the excess heat it produces.

HSBC is benefiting from investments which began in 2005. Companies embarking on green strategies may find they have to put their plans on hold as IT budgets are reduced as a result of the economic slowdown, according to Nathanial Martinez, analyst at IDC.

"Industries that are heavily dependent on IT such as banking and web hosting will continue to invest in green IT and so will some SMEs. But the rest of the market will probably delay investments because they have something up and running which, although not perfect, works."