Our energy consumption is mainly related to indirect consumption of energy in offices and data centres. In addition, a small portion of our energy consumption is related to the direct consumption of diesel in data centres. By actively managing our energy consumption and optimizing our systems, we strive to fulfil greenhouse gas emission targets as well as increasing cost efficiency in operations.
In line with our Environmental Rule, we strive to reduce direct and indirect energy consumption in offices and data centres through energy-efficient equipment, by switching off equipment and lights when not in use, and switching to green buildings when upgrading facilities.
On the group-level, our goal is to annually reduce energy consumption by 3.5%. In 2014, our overall indirect energy consumption decreased by 5% compared to the previous year, reaching 120 689 MWh.
The improvement in energy consumption is mainly explained by efficiency initiatives, improvements in data quality, and adjustment of offices after restructuring. Our offices consolidation and modification have resulted in decreased office space, for example through launching a new type of offices without dedicated workspaces. Electricity consumption has also been reduced by local initiatives such as reducing ventilation at night-time. Overall, the data quality has improved, as we have been able to collect data from more offices than before, reducing the need for estimations, and utilizing Tieto-specific electricity metering. Our data centres have continued to improve due to consolidation and transformation as per the plan. Smaller data centres have been closed and moved to new, greener centres. Overall, the optimization of cooling systems has further lowered energy consumption and increased efficiency.
Today’s hyper-connected world and increased use of digital services in society in general place energy consumption high on the agenda for the IT industry. Energy is needed for both running servers and computers in the data centres, and for cooling. In general, energy consumption can be reduced by increasing the number of virtual servers or implementing efficient cooling solutions, for example free cooling. Shutting down electronic equipment that is not in use is another option.
At Tieto, energy effectiveness has always played an important role in our data centre operations. Our Managed Services Service Line actively works to increase energy efficiency by replacing old technology with new-generation data centres. At the end of 2012, we announced a EUR 10 million investment in our new-generation data centre in Espoo, Finland, which has increased its capacity significantly. The new part of the data centre opened in April 2014, and made it possible to close down one old data centre that had become outdated, thereby replacing old technology with energy-efficient solutions. The Power Usage Effectiveness of our new data centres is 1.2–1.3. Normally, the energy efficiency in data centres is between 1.8–3.0.
Based on our new data centre strategy, formulated in 2014, our aim is to virtualize large parts of existing devices to cloud platforms, which will enable further energy savings. In addition, we will continue to replace old data centre facilities with new, more energy-efficient buildings. To strengthen reporting capabilities, we have also started a project to implement online energy and effectiveness measurement systems to all our data centres.
However, we believe the best way to enhance energy efficiency in data centres is by re-using excess heat from data centre servers. This solution has been implemented in our new-generation data centres in Espoo, Finland and Stockholm, Sweden. Our Espoo data centre is connected to the local district heating network. In 2014, it was feeding back excess heat corresponding to 61% (53%) of the total energy use in the data centre. For the city of Espoo, this solution means reduced energy use as well as lowered CO2e emissions. In Stockholm, Sweden, we started to explore ways to reduce energy consumption of data centres already in 1978. In 2014, we managed to reuse 11% (11%) of total energy consumption.
On the group-level, our Facilities team strives to ensure that also the office buildings where we reside are environmentally efficient and utilized in an efficient way. Working actively with facility owners and management companies to improve environmental friendliness in our facilities is one important part of this work.
Consolidation of office space and switching to green buildings is another important part of our facility management. Our target is to renew office facilities so that by 2017 60% of our employees will work in green facilities, which have, for example, BREAM or LEED certification. In Sweden, our Stockholm office was awarded an EU Green Building Award for energy efficiency in 2011, based on the innovative sustainable solutions that have been implemented, e.g. a green roof with grass for efficient insulation as well as lights, electricity and ventilation controlled by the presence or absence of employees.
Environmental efficiency of offices is also improved during ISO 14001 implementations. In 2014, ISO 14001 implementation was carried out in Finland among other places. Roll-out projects will continue in 2015 as part of our target to have all sites with more than 50 employees certified by this year.
Local site managers in operating countries are responsible for following up proper energy efficiency management, collection of energy data, and implementing energy-saving actions in their respective facilities. Naturally, we encourage employees to implement environmentally friendly routines, supporting energy efficiency in their daily work, such as turning off lights, computers and other electrical equipment that is not in use in order to reduce energy use.