Businesses understand that they benefit financially from going green, according to the CEO of Fujitsu Siemens.

Speaking at VisIT 2007 in Munich, Bernd Bischoff said that firms now understood that the higher initial cost of much low-energy equipment was outweighed by the cost savings from cutting electricity usage.

He said that while being green was an attractive image for businesses to present, most arguments still came down to the bottom line and this was where green IT could be most attractive. Keep abreast of the latest business IT developments at our Business Advisor website.

"A business might spend £200 more on an energy-efficient PC but recoup that in a year and a half on lower bills. And in a large business that could easily add up to hundreds of thousands of euros saved every two years" said Bischoff.

"And the savings from efficient data centers can translate into millions of euros," he added.

But Bischoff admitted that pressure from regulatory bodies, environmentally conscious shareholders and customers was also playing a part in convincing companies to demonstrate more respect for the environment.

"A lot of companies want to be a part of the green movement rather than outsiders," he said.

"But some are just talking about it rather than doing it. Only when they do will they see the real savings."

Fujitsu Siemens said 2007 would come to be known as the year where green IT finally took "center stage" among businesses.

It said it was also committed to having a green business that used less wasteful production techniques and recycled 98 percent of materials. It said this included keeping the supply chain green by working with distributors to cut down excessive carbon emissions in transport.

"It's for this reason that we produce in Germany, while most other people make PCs in Asia," said Bischoff.

"The environmental damage caused by excessive transportation, and the high cost of oil, far outweigh the benefits of cheaper production."