Abstract:
Climate change is a significant and compelling issue that has captured the attention of world leaders and driven them to action. In 2015, 195 countries collaborated and developed the Paris Agreement. The sole aim of the agreement is to reduce global environmental impacts and slow down climate change.
As consumers endeavour to reduce reliance on fossil fuels and move to cleaner, more environmentally friendly energy solutions, the oil industry is significantly affected as a result of reducing demand for product.
As an organisation with oil as a primary product, Z Energy, the subject of this case study, is forced to examine their operations and investigate alternative product options.
Z is a downstream fuel business, purchasing crude oil on the international market, importing it into New Zealand and processing it into fuel. This is distributed and sold to retail and commercial customers. Z own and manage over 200 service stations.
Sustainability matters at Z. They have a sustainability strategy with goals to use less and waste less in their business; reduce the carbon intensity of customers; reduce reliance on fossil fuels and support New Zealand businesses and communities.
Z is faced with a challenging issue. They are committed to running an environmentally sustainable business but operate in an industry where the primary product has significant negative impacts on the environment.
It is vital that the commitment to environmental sustainability is supported through internal business functions, and to examine this challenge, this case study looks at Z through two lenses.
1. The Information Systems Triangle is used to evaluate alignment between Z’s sustainability strategy and their organisational and information strategies. In order to successfully deliver on their sustainability goals, Z should ensure they have alignment between the three strategies and furthermore, the organisational and information strategies should be designed to complement the business (sustainability) strategy.
2. The Green IT Maturity Model is used to evaluate the ICT practices at Z to determine if they are positioned to support the corporate sustainability goals. As a sector ICT contributes to climate change by emitting 2-3% of total carbon emissions. As well as a part of the problem, ICT can also contribute solutions to reduce emissions in other sectors.
The methodology used to gather research data was a combination of semi structured face to face interviews with selected Z employees, analysis of Z strategy documents and review of academic and practitioner research and frameworks.
The data was evaluated against the IS Strategy Triangle and analysis found that while the sustainability strategy is in place, it is not supported by or aligned with the organisational and information strategies.
The data was also used to evaluate the maturity of the ICT practices by comparing the current ICT processes as described by interviewees against each maturity measure in the Green IT Maturity model. While some areas were assessed to have average maturity, overall the maturity of the practices was low.
Recommendations were developed that if implemented would result in convergence between the business sustainability strategy and the organisation and information strategies. Other recommendations were to improve the maturity of the ICT practices through:
• implementation of an ICT sustainability strategy
• establishment of green ICT maturity goals
• encouragement of telecommuting
• implementation of guidelines for ICT asset procurement, and
• development of guidelines for ICT asset disposal.
