Conflicting Company Rankings Highlight Green ICT Assessment Challenges

The Greenpeace Cool IT Challenge assesses the external impacts and internal efforts of seventeen global IT companies to mitigate climate change. It originally took the unique approach of identifying by name each company's chief executive in its listings, but backed off in April 2010. The good news is that scores continue to improve in the recently-released fourth round, but continuing variences with another Greenpeace ranking illustrate the complexities of assessing tech company green behavior.

The Challenge uses a 100-point scale, adding together performance in five categories. In the first round (May 2009), no company scored scored above 30 and four scored below 10.

In the second round (Oct 2009), five scored above 30, with IBM and HP scoring in the low 40s. Only one was below 10. 40 out of 100 is not great, but a definite improvement over 20.

The third round (Apr 2010) shows even greater improvement. Four scored in the 62-41 range: Cisco (62), Ericsson (53), IBM (42), and HP (41). None scored below 10 this in this round and only three below 20. Software/online/services companies are as evenly distributed across the rankings as hardware companies.

Now, in the fourth round (Dec 2010), we have three companies scoring above 50: Cisco achieves an impressive 70, followed by Ericsson (57) and Fujitsu (52). Three other companies score 45 or better: Google (47), IBM (46), HP (45). Every company in this round which was also in the previous one improved its score except Microsoft (31 to 29) and SAP (22 to 21).

Every ranking uses different criteria, scoring, and populations. This is clearly illustrated when we compare the Challenge to Greenpeace's 16th Guide to Greener Electronics. Released in October, it ranks consumer electronic companies on a different, but overlapping, set of green criteria. Nokia tops the Guide, yet Greenpeace's Challenge places the same company in the middle the pack with a score of 37. Apple is ranked in the Guide, but is absent from the Challenge.

Also, compare Greenpeace's listings to the tech segment of the Newsweek Green Rankings 2010. Newsweek ranks Dell as #1 in its USA listing, but while the Guide places Dell in the middle of its international rankings. Newsweek's USA and international ranking both award HP the #2 position supports the Challenge's high assessment of HP, while both Greenpeace assessments rank the company relatively lower.

This all presents a considerable challenge to a customer, shareholder, or other stakeholder who is trying to do the right thing. Is it time for the green ICT community to agree on a common system that provides both an overall assessment while breaking out specialized assessments for different stakeholder groups, such as equipment lifecycle sustainability for customers?

Greenpeace has published its Cool IT Challenge methodology online and its Guide to Greener Electronics methodology as PDFs available through the above link.

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