Thursday, July 16, 2009

Is eBilling Really the Green Alternative?

Turn off the paper! Stop getting paper invoices! You’re killing the trees!

Arguments we, as end users, have heard a thousand times in an attempt to encourage us to switch to eBills. The Biller hopes that by appealing to our conscious’s we will assist them in their plight to save the environment, and to save them money.

eBilling definitely saves them money, but is eBilling a green alternative? This is an unscientific view of this argument.

Assumptions
  1. The following process is outsourced by the biller in both cases:
    • Billing data is collated and electronically delivered to the vendor
    • The vendor compiles the invoice
    • The vendor prepares the communication to the end user
    • The vendor sends the communication to the end user
  2. A simple process by any ones terms; here are the two vendor specific processes in order to compare their carbon emissions:
Step by Step process Comparison
  1. The vendor receives the data from the biller
    • Both vendors require the use of electronic systems to receive and process the information.

  2. The vendor compiles the message
    • Both vendors have systems that extract the correct information in the correct manner and create the invoice / statement in the prescribed manner. The output is a document that will be identical in all mediums.

  3. The vendor completes the message
    • Paper Vendor: The message is printed. The bill stuffers are printed.
    • Electronic Vendor: An email is created. The cover letter is compiled.

  4. The message is prepared for sending
    • Paper Vendor: The invoice and bill stuffers are placed in an envelope and prepared for postage.
    • Electronic Vendor: The invoice is attached to the email.

  5. The message is sent
    • Paper Vendor: The completed envelope is delivered to the postal service.
    • Electronic Vendor: The email is sent.
Carbon Emission Comparison

Steps 1 and 2 will provide similar carbon emissions.

Steps 3 through 5 is where the difference occurs. Step 3 for the Print Vendor is where the carbon footprint really grows: the paper manufacture, the ink manufacture, the machines that are required to print the invoices, and the bill stuffers. Step 4 introduces a machine (I assume) that places all the printed material into an envelope. And finally, the not insignificant carbon cost of the postal system. While the Electronic Vendor still incurs carbon cost in the process of creating and sending the email and its attachment, there is no separate infrastructure required for this over an above that used for Steps 1 and 2. This means that there is marginal carbon cost added in steps 3, 4 and 5 for the Electronic Vendor.

I am inclined therefore, in this unscientific, gut feel analysis, to recommend that we – as end users – believe the billers and sign-up for eBilling, the green alternative.

No comments: