Energy consumption

Active management of energy consumption is an important part of Tieto’s climate change initiative and management of greenhouse gas emissions. The company’s energy consumption is mainly related to indirect consumption of energy in offices and data centres. In addition, a small portion is related to the direct consumption of diesel in data centres.

Today’s hyper-connected world is placing energy consumption high up on the agenda for the IT services industry as well as society as a whole. The amount of energy consumed by the world’s data centres, storing information used by billions of people, is expected to increase significantly in the next decade. This means the ICT sector has an important role to play in driving energy efficiency measures.

Tieto’s approach to energy consumption is outlined in the company’s Environmental Rule. In line with this rule, Tieto strives to reduce direct and indirect energy consumption in data centres and offices through energy-efficient equipment, by switching off equipment and lights when not in use, and relocating to BREEAM or LEED certified buildings when upgrading facilities.

In 2016, indirect energy consumption decreased by 6%.

The yearly goal is to reduce indirect energy consumption in operations by 3.5% on the Group-level. In 2016, indirect energy consumption decreased by 6% (9%) compared to the previous year, reaching 103 587 (110 335) MWh. In offices, continuous energy saving measures, such as control and adjustments of lighting and air-conditioning in premises, are a natural part of Tieto’s environmental work. In addition, consolidation and office space reduction are also impacting positively on overall energy consumption. In data centres, energy efficiency is mainly managed through consolidation and transformation, but also through optimization of cooling systems, all of which took place in 2016. The energy consumption data was also impacted by changes in the data collection scope due to alignment with our environmental management system scope.1)

Tieto’s ISO 14001 based Environmental Management System plays an important role in meeting set energy consumption targets. Country site managers are responsible for following up on proper energy efficiency management, collecting energy data, and implementing energy-saving actions in their respective sites, as well as raising Tieto employees’ environmental awareness, resulting in a wiser and hence lower energy consumption overall.

Energy efficiency a core criteria in Tieto’s new-generation data centres

Based on Tieto’s data centre strategy the company is actively replacing old data centre facilities with new-generation data centres, where virtual servers and other energy efficient equipment is a core criteria. Tieto is using Power Usage Effectiveness (PUE) to measure the effective use of electricity in its data centres, and aims at getting the PUE as low as possible in all locations, or to close sites where PUE does not meet efficiency requirements

The transformation project, which was started in 2015, continued in 2016. The aim is to ramp down old servers, virtualize servers, and replace some systems with more energy efficient models. A project to close down an old data centre in Helsinki was also started. This project is expected to be completed during 2018.

During 2016, Tieto also implemented a number of general measures to increase energy efficiency in data centre operations, such as changing cooling systems in some locations. Another example is Tieto’s new-generation data centre in Espoo, where the traditional battery based UPS system (Uninterrupted Power Supply) was replaced with a Rotary-UPS system, also helping to reduce harmful waste.

Tieto is convinced however that the smartest way of optimizing energy efficiency in data centres is by re-using excess heat from data centre servers. This solution has been implemented in Tieto’s new-generation data centres in Espoo, Finland, and Stockholm, Sweden. The Espoo data centre is connected to the local district heating network. In 2016, this data centre was feeding back excess heat corresponding to 60% of the total energy use in the data centre. In 2016, Tieto as a whole managed to reuse 21% of total energy consumption.

Offices supporting people and environment

In office premises, Tieto’s Facilities team is working to ensure that office buildings are supporting employee experience as well as environmental requirements. Energy efficiency of a building has become an important new site selection criteria. In line with its facilities strategy, Tieto is continuously consolidating office space and switching to green buildings. The target is that 70% of employees will work in green facilities by 2020, i.e. facilities with, for instance, BREEAM or LEED certification. By the end of 2016, the ratio was 42% of employees.

In 2016, office consolidation took place in Finland. In addition, office space utilization was further optimized in Russia and Poland.  Energy saving measures were also taken in some locations to optimize lighting and air-conditioning.

In Helsinki, Finland, Tieto’s head office moved to a new location, Keilalahti, at the end of the year. In this building, sensor technology combined with Industrial Internet solutions and data-driven analytics make it possible to collect, combine and analyze data from thousands of installed sensors. The information can be used in making sustainable decisions in facility maintenance. As one example, office space utilization can be optimized and hence energy consumption be lowered.

1) Read more in the 'About sustainability reporting' text