Reducing Carbon Emissions Through Business

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NBTN Members’ Conference






Reducing Carbon Emissions Through Business
Efficiency


25
th

September 2009, Altitude, Millbank Tower, London























© 2009 IBM Corporation

BUILDING A

SMARTER PLANET

Peter Bays

European Mobility and UK and Ireland End User Deployment Manager

Agenda


We can make our world smarter. Intelligence can be infused into how we
manufacture and sell, and move goods, people and money. The world is ready for a
smarter planet.


I will outline IBM visions for a smarter world through sustainable solutions and
provide a series of pointers on the language that travel practitioners need to use to
engage business leaders and decision makers.



The World is Connected




What is the Opportunity




The Smarter Planet

© 2008 IBM Corporation

The reality of living in a globally

integrated world is upon us.


Frozen credit markets and limited access to capital



Economic downturn and future uncertainty



Energy shortfalls and erratic commodity prices



Explosion of information and electronic data



Emerging economies and changes in global trade



Increasingly complex supply chains and

empowered consumers

The world is connected:

economically, socially and technically.

© 2008 IBM Corporation

Our world is becoming

INSTRUMENTED

Our world is becoming

INTERCONNECTED

Virtually all things, processes and ways

of working are becoming

INTELLIGENT

© 2008 IBM Corporation

INSTRUMENTED


We now have the ability to measure, sense

and see the exact condition of everything.



Today, there are 1 billion transistors for each person

on the planet.

1


By 2010, 30 billion RFID tags will be embedded into

our world and across entire ecosystems.


Everything will become instrumented:

supply chains, healthcare networks,

cities and even natural systems like rivers.

1

Sam Palmisano speech, November 12, 2008

© 2008 IBM Corporation

INTERCONNECTED


People, systems and objects can communicate and
interact with each other in entirely new ways.




The internet of people is 1 billion strong. Almost one third

of the world’s population will be on the web by 2011.



There will be nearly 4 billion mobile phone subscribers

worldwide by the end of 2008.



The Internet of things

cars, appliances, cameras,

roadways, pipeline, pharmaceuticals and even

livestock

is headed to 1 trillion.

1

Sam Palmisano speech, November 12, 2008

© 2008 IBM Corporation

INTELLIGENT


We can respond to changes quickly and accurately,

and get better results by predicting and optimizing

for future events.



Every day, 15 petabytes of new information are being

generated. This is 8x more than the information in

all U.S. libraries.


An average company with 1,000 employees spends $5.3 million

a year to find information stored on its servers.



New computing models manage the massive amounts

of data generated by the proliferation of end
-
user

devices, sensors, and actuators. Combined with

advanced analytics, these technologies are making

us smarter.

1

New Intelligence White Paper from ThinkForward website

© 2008 IBM Corporation

+

+

=

An opportunity to
think and act in new ways


economically, socially and technically.

© 2008 IBM Corporation

The

need
for progress is clear
.

£2.5 billion

Wasted in energy bills by UK companies due to
inefficiencies such as draughty windows and leaving
lights and computers switched on

Source: Carbon Trust, www.
Energysavingtrust.org

© 2008 IBM Corporation

The

opportunity
for progress is clear
.

Amount of purchased food UK consumers throw away

1 Third

Source: www.lovefoodhatewaste.com

© 2008 IBM Corporation

The

need
for progress is clear
.

Estimated annual cost of road congestion to the UK
economy year

£7
-
8 Billion

Source: Department for Transport

© 2008 IBM Corporation

The

need
for progress is clear
.

Apples consumed in the UK that come from overseas
traveling on average 3700 miles to reach us

76%

Source: The Independent 31
st

May 2007


© 2008 IBM Corporation

Smarter planet:

Thinking and acting in

new ways to make our systems more efficient,

productive and responsive.


GREEN

AND BEYOND


SMART

WORK


NEW
INTELLIGENCE


DYNAMIC

INFRASTRUCTURE

© 2008 IBM Corporation

New Intelligence:

A smarter planet gives organizations the vision to see without
being there.

Irish Life:

Utilizes real time customer data to gain
intelligent insights, improve customer care and
respond to the dynamics of the business twice as
fast.

The Student Loans Company:

Is using IBM’s
storage expertise to improve record management
for over 3 million customers.


University of Edinburgh:

Researchers are using
powerful computing technology in a new approach
to designing drugs that inhibit infection by the HIV
virus.



Swansea University:

Are using a new
supercomputer to help predict what will happen to
the world’s climate by modelling complex climate
change scenarios.

© 2008 IBM Corporation

Green and Beyond:

A smarter planet empowers organizations to do more,

using less.

Natural England:
Implemented an evidence
-
based
carbon measurement and management system to help
achieve a 50% reduction in carbon emissions by 2010.




Dundee City Council:

Revolutionized its IT
infrastructure through server virtualization and
thin
-
client architectures, consolidating server
technology and reducing operational costs and
carbon footprint.

Manchester Co
-
operative Group:

Plans to save around
£120,000 per annum and reduce carbon dioxide emissions by
722 tonnes each year using the night
-
time energy
-
saving
programme in its IBM Electronic Point Of Sale (EPOS)
terminals.

Centrinet:

A managed IT services provider in the
United Kingdom launches the region's first
operational zero
-
carbon data centre using IBM
BladeCenter technology.

© 2008 IBM Corporation

Smart Work:

A smarter planet puts organizations in position to succeed
.


British Airways:
Uses mobile device check
-
in and
other self
-
service technologies to help facilitate a
trouble
-
free travel experience and save the airline

$3.50 per passenger.

Cheshire County Council:

Achieved a 20%
reduction in time and cost required to perform in
-
home senior visits, improving the ability to
proactively manage the course of health and social
care for senior citizens.

.

Southwest One:

A shared services joint venture
achieving cost savings and improved efficiency in
the delivery of customer services, workforce
development, procurement and more.

© 2008 IBM Corporation

Dynamic Infrastructure:

A smarter planet enables organizations to solve the problem
before the problem.


RAF:

Protects UK Air Space through a real
-
time
command and control system that throughout the day
tracks the thousands of commercial and military aircraft
in the sky, enabling the RAF to intercept any aircraft
identified as potentially hostile or posing a terrorist threat.


Scotmid:

Has enhanced their business
intelligence capabilities, allowing them to leverage
large amounts of sales data to improve product
placement and sourcing in order to maximize sales.

British banks:

Utilize real
-
time data analytics of
complex financial models to help understand and
manage their exposure to risk.

© 2008 IBM Corporation

To realize the potential of a smarter planet,

organizations need to do three things.

FOCUS ON VALUE


Do more with less

• Cash/capital focus

• Flexibility


Focus on the core

• Businesses

• Initiatives

Re
-
align relationships

• Financial solidity of


suppliers, partners and


customers

• Revisit/renegotiate

1

EXPLOIT OPPORTUNITIES


Capture share

• Disrupt weak competitors

• Acquisitions

Build future capabilities

• Protect and acquire talent

• Initiatives

Change your industry

• Bold moves

• Position globally




2

ACT WITH SPEED


Manage change

• Clearly communicate
simple goals

• Seek and leverage
experience

Leadership


Get the information to act


Set the agenda


Risk and transparency

• Business performance

management and analytics

• Risk management


3

© 2008 IBM Corporation

The world will continue to become smaller,

flatter and smarter. We are moving into the age

of the globally integrated and intelligent economy,

society and planet.

The question is,

what will we do with it?

We’ve only just begun to

uncover what is possible on

a smarter planet.

© 2008 IBM Corporation

© 2008 IBM Corporation

Legal disclaimer

©
IBM Corporation 2008. All Rights Reserved.

The information contained in this publication is provided for informational purposes
only. While efforts were made to verify the completeness and accuracy of the
information contained in this publication, it is provided AS IS without warranty of
any kind, express or implied. In addition, this information is based on IBM’s current
product plans and strategy, which are subject to change by IBM without notice. IBM
shall not be responsible for any damages arising out of the use of, or otherwise
related to, this publication or any other materials. Nothing contained in this
publication is intended to, nor shall have the effect of, creating any warranties or
representations from IBM or its suppliers or licensors, or altering the terms and
conditions of the applicable license agreement governing the use of IBM software

References in this presentation to IBM products, programs, or services do not imply
that they will be available in all countries in which IBM operates. Product release
dates and/or capabilities referenced in this presentation may change at any time at
IBM’s sole discretion based on market opportunities or other factors, and are not
intended to be a commitment to future product or feature availability in any way.
Nothing contained in these materials is intended to, nor shall have the effect of,
stating or implying that any activities undertaken by you will result in any specific
sales, revenue growth or other results.

IBM, the IBM logo, Lotus, Lotus Notes, Notes, Domino, Quickr, Sametime,
WebSphere, UC2, PartnerWorld and Lotusphere are trademarks of International
Business Machines Corporation in the United States, other countries, or both.
Unyte is a trademark of WebDialogs, Inc., in the United States, other countries, or
both.

Linux is a registered trademark of Linus Torvalds in the United States, other countries,
or both.


23

© 2009 IBM Corporation

Building a smarter planet

Today, more than ever, organizations are under

pressure to leverage a wealth of information to

make more intelligent choices.


VOLUME OF DIGITAL DATA

With the proliferation of end
-
user devices,
sensors and actuators, the nature of data is
changing. Data volumes and network
bandwidth are expected to grow tenfold in
the next three years.

VARIETY OF INFORMATION

With the expansion of information comes
large variances in the complexion of
available data

very noisy with lots of errors
and no opportunity to cleanse it in a world of
real
-
time decision
-
making.

VELOCITY OF DECISION
-
MAKING

The market demands that businesses
optimize decisions, take action based

on good information and utilize advanced
predictive capabilities

all with speed

and efficiency.

SHIFT IN WHAT WE ANALYZE

Enterprises need a broader, systems
-

based approach to the information they
examine and optimize. Stream computing
and event processing capabilities are
enabling the analysis of massive volumes.

24

© 2009 IBM Corporation

Building a smarter planet

Today, businesses understand the need to

drive greater efficiencies by taking action on

energy, the environment and sustainability.

LAWS, REGULATIONS AND STANDARDS

Governmental regulations and laws are
designed to reduce emissions of greenhouse
gases, protect natural resources and limit
further damage.

GROWTH OPPORTUNITIES

Worldwide demand for greener products,
technologies and services has opened up
the best emerging market opportunities
since the Internet boom of the 1990s.

STAKEHOLDER EXPECTATIONS


From investors to market analysts, from
employees to consumers and NGOs, the
clamor for consideration of environmental
and economic consequences of activities

is growing.

COSTS AND AVAILABILITY


Leaders face rising costs and uncertain
availability of energy, waste disposal,
water and raw materials. Risks for
physical assets due to climate change
and global warming are real.

25

© 2009 IBM Corporation

Building a smarter planet

Today, organizations can work smarter,

supported by flexible processes modeled

for the new way people buy, live and work.


ECONOMIC PRESSURES

Increasing strains on the global economy are
galvanizing leadership to build visibility and
control into their business models to mitigate
risk and optimize profit.

GLOBAL COMPETITION

In a global economy, intense competitive
pressure is driving more efficient markets.
To stay ahead, businesses will need to build
more agile models and be the first to seize
golden opportunities.

THE DEMANDING CONSUMER

Customer expectations have never been
higher. By figuring out exactly what people
want, companies are tapping into hidden
opportunities and rolling out innovative
products and services.

IT INTEGRATION

Breakthrough applications like Cloud and
Web 2.0 are empowering the business
user, driving the convergence of business
and IT, and blurring the lines between
companies and their customers.

26

© 2009 IBM Corporation

Building a smarter planet

In today’s economy, we need dynamic

infrastructures that drive down costs,

and are intelligent and secure.


RISING COST PRESSURES

Business and IT assets are underutilized and
difficult to manage; operational cost and
complexity are reaching unsustainable and
uncompetitive levels.

NEW RISKS AND THREATS

Security, resiliency and compliance
challenges are created by the accelerating
pace of change and the proliferation of
operating, IT and “smart” assets that
compromise the underlying infrastructure.

HIGHER SERVICE EXPECTATIONS

Increasingly savvy customers demand
quality service and continuous availability
across an expanding range of assets

and applications.

EMERGING TECHNOLOGIES

Smarter and more adaptive technologies,
such as virtualization, must be harnessed
effectively to drive business innovation,
efficiency and responsiveness.

Duncan Kay

Transport Policy Analyst

Smarter Moves:

ICT & Sustainable Mobility

NBTN Conference

September 2009

2.
M
odal shift to more sustainable modes

3.
E
fficiency Improvements

4.
C
apacity Increases

1.
D
emand Reduction

SDC’s Transport
Hierarchy

Where ICT can help

Reduce demand for
travel

Influence travel
mode choice

Change driver
behaviour

Change vehicle
behaviour

Increase vehicle
loading factor

ICT can be:


An enabler


A facilitator


A ‘sweetener’

ICT can support:


Carrots


Sticks


Choice editing

Improve efficiency
of network

Reduce demand for travel


Teleworking, videoconferencing, etc


Online shopping, banking, service
interaction


Virtual goods substituting for
physical goods


Home entertainment substituting for
public entertainment


Some non
-
carbon
sustainability downsides


Major opportunities to
reduce CO2 here


Influence travel mode choice


Better information about modes of
travel

o
Modes available

o
How to use them
-

routes, times, etc


Analytical tools


journey times, price
comparisons, carbon comparisons


Personal travel assistants

Awareness of more
options may result in
more sustainable choice

Better information might
confirm

car choice


Influence travel mode choice


Notification/alerts for unexpected events

o
Allow dynamic re
-
planning en route



Make public transport more pleasant

o
Web access while travelling

o
Payment mechanisms

Awareness of more
options may result in
more sustainable choice

Better information might
confirm

car choice


Challenges


Many journeys are habitual


Difficult to provide accurate, relevant
information


Information sharing


Results may not encourage sustainability


May encourage increased travel

Influence travel mode choice


Speed limit enforcement


Intelligent Speed Adaptation (ISA)


Driving style


Better route choice


Avoid congestion


Fuel efficient routes


PAYD insurance

Reduces carbon
emissions per mile
through greater fuel
efficiency

Other benefits through
reduced accidents and
reduced attractiveness of
driving for some

Potential rebound
effects through
reducing driving costs


Change Driver Behaviour


Personal vehicle diagnostic services

o
Diagnostics, maintenance, servicing


Automatic speed reduction

o
Adaptive cruise control/dynamic set
speed


Driverless vehicles


personal rapid
transit


Reduces carbon
emissions per mile
through greater fuel
efficiency

Other benefits
through reduced
accidents


Potential rebound
effects through
reducing driving costs


Change Vehicle Behaviour


Car share


Dynamic Ride Sharing


Car clubs


Multi
-
passenger (‘car pool’) lanes


Demand responsive transport
systems


wiggly bus, shared
taxis


Dynamic transport pricing

Increasing vehicle utilisation

ICT can enable,
facilitate or ‘sweeten’
new models and new
modes of transport

Pay as you go models
makes the real cost of
car usage more
apparent

Could reduce car
ownership but
not usage


Improve network efficiency


Parking management


Congestion charging/road pricing


Real
-
time traffic management


Automated tolls


Dynamic bus/train scheduling


Payment mechanisms

Reducing congestion
and parking issues
makes driving nicer

Reduces congestion
and therefore need
for new infrastructure

Reduces journey time
and therefore emissions
per mile/km


Travel behaviours tend to be habitual


ICT solutions often need revenue funding


Government should ensure public
transport information is available for travel
tools


Need to ensure accessibility for ALL (not
just the IT
-
enabled)

Challenges


Areas with the greatest potential to
improve sustainability:



enabling home working and travel avoidance


speed limit enforcement
-

particularly through
the use of intelligent speed adaptation


delivering congestion charging and road pricing


reducing barriers to use of public transport


facilitating car sharing; car clubs; and eco
-
driving.


Conclusions

The WWF One in Five Challenge

The One in Five Challenge:

a news update

NBTN members’ conference

25 September 2009

Jean Leston, Transport Policy Officer

WWF
-
UK Climate Change Team

The WWF One in Five Challenge

Air travel increasingly under review


Widespread cuts in business travel and
falling passenger numbers


Greening government consultations

air
travel w/in SOGE targets?


The Climate Change Act


The Committee on Climate Change

A change in business attitudes?

“If we continue to do things in the world in the
same way as we do today, it will not be so
easy for this planet to cope. We need a more
intelligent society where we cannot just triple
travel and triple cars and triple planes and
triple everything. We need to find other ways
of working.”


Carl
-
Henric Svanberg, Chief Executive,
Ericsson

Why care about flying?




Single biggest source of
GHG emissions in the UK


Dramatic growth conflicts
with declining carbon
budget


Other sectors will have to
decarbonise more: 90%+
instead of 80%




The business case for
flying less



Save money

-

more profit



Gain time



increase
productivity



Less carbon



improve CR
profile



Greater wellbeing



happier
staff



Keep connected



‘telepresence



Using alternatives to stay connected

HSR produces ¼ the emissions
of flying

Videoconferencing can replace
15
-
30% of all flights

and has
2% of the footprint!

The WWF One in Five Challenge

If every company in Europe replaced 20% of business travel with
conferencing, we’d save 22MtCO2/yr


(like taking 1/3 UK cars off the road)

The WWF One in Five Challenge

What is the One in Five Challenge?

=
A guided programme and award scheme to help business and
government to cut one in five flights within five years



Encourages businesses to seek greener alternatives to flying


Independently audited scheme


Sets annual flight reduction targets


Helps change business travel behaviour


Demonstrates that companies can remain competitive while
reducing their flying

The WWF One in Five Challenge

One in Five Challenge launched July 09

The WWF One in Five Challenge

Founder members

The WWF One in Five Challenge

Why have they joined?


"We believe that the One in Five campaign enables us to set targets within our
business that will not only reduce our footprint, but will help us to save money.“

Mike Barry, Head of Sustainable Business, Marks & Spencer



"We are

pleased to be a Founder Member of WWF’s One in Five
Challenge.

Vodafone UK is

getting involved today because

there is a real
opportunity for

people as well as employees of small and large companies to
reduce their impact on the environment

through

mobile working.

"

Nicola Woodhead, Head of Corporate Responsibility, Vodafone UK



"What I like about the WWF challenge is its ambition. By signing up we want to
show that not only are we aware of our environmental footprint, we are actively
seeking to reduce it.”

Campbell Gemmell, Chief Executive, Scottish Environment Protection Agency
(SEPA)

The WWF One in Five Challenge

What do you get for taking part?



An online methodology and consultancy help



Specially designed panda logo for award winners



A toolkit to plan and implement a sustainable business
travel policy



Annual workshop and quarterly e
-
newsletter



Help with staff engagement



Regular progress reports



Joining fee of £5,000, then £750 annual membership


The WWF One in Five Challenge

Key stages and milestones

Month 1
-
3

Complete baseline survey

Month 3
-
6

On
-
site visit

Month 12

Complete 1
st

annual survey

Month 13
-
14

Receive 1
st

annual progress report

Month 24

Receive 2
nd

annual progress report

etc

Until 20% cut achieved

The WWF One in Five Challenge

As recommended in STEPS report
(JMP, 2009):

“The OGC and Defra should engage with…
WWF
-
UK to learn from their experiences.”


AND

The WWF One in Five Challenge

The One in Five Challenge

wwf.org.uk/oneinfive





NBTN Members’ Conference






Reducing Carbon Emissions Through Business
Efficiency


25
th

September 2009, Altitude, Millbank Tower, London