Analyst round table: Sustainability

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Analyst round table: Sustainability

6 October 2011

© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



2

© British Telecommunications plc


3

A better future

© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



4

© British Telecommunications plc


A massive transformation

The move to a low carbon economy will be as impactful as the industrial revolution

International aviation

& shipping*

UK non
-
CO
2

GHGs

Other CO
2

Industry (heat &

industrial processes)

Residential &

Commercial heat

Domestic transport

Electricity Generation

695 Mt CO
2
e

159 Mt CO
2
e

77% cut

(=80% vs. 1990)

184

134

103

108

98

42

* Bunker fuels basis

© British Telecommunications plc


BT Energy reduction to date

Over the last two years, BT has reversed the trend of increasing energy
consumption, despite an ever increasing explosion in digital services

* Bunker fuels basis

© British Telecommunications plc


Network growth is driving up consumption, but our energy programmes are reducing consumption
at a faster rate enabling net year on year reduction.

Electricity Consumption by Area
(2008/9 excl. tenants)
Network
72%
Data
Centres
10%
Estates
18%
2,225,626 MWh p.a.
Breakdown of electricity use

1)

Networks

2)

Data Centres

3)

Property

BT is delivering energy
reductions and efficiencies in:

2,400
2,600
2,800
3,000
3,200
09/10
10/11
11/12
12/13
Energy in GWh pa
BT's Global Energy Consumption
Status: August 2011
Growth
Trend
Target
-
2.2%
vs 09/10
+12% vs
09/10
(growth)
TARGET
+3.0%
vs 09/10
+4.6%
vs 10/11
-
2.6%
vs 10/11
Reduction of
£56m pa
760 GWh
pa
BT’s global energy consumption going forward

© British Telecommunications plc


Where are our energy savings coming from this year?

1. Smart energy control
-

£6.2m


22,000 smart meters


99% of UK electricity consumption and 65% of gas consumption


£17m invested generating £13m annual energy savings

2. Infrastructure rationalisation
-

£3.5m


Estate


reduction in office space


Data centers


virtualisation

and switching off servers


Networks


migration and consolidation

3. Equipment replacement
-

£8.7m


Replacement of boilers, air conditioning, lights


Variable speed drives, fans

4. Employee engagement
-

£Priceless


Pan BT engagement


Energy champions



© British Telecommunications plc


BT is setting up a Smart Energy Control system to monitor and optimise energy consumption

BMS

450 people sites

BMS

1,700 operational sites

Smart Metering

22,000 installed across 6,000
sites

Energy Control
Centre

Field

Engineering

Facility
Management

Analyse

data

Optimise

remotely

Tasks &

Issues

Optimise

locally

Optimise

locally

Tasks &

Issues

BT’s Integrated Energy Management System

© British Telecommunications plc


1. Energy distribution,


transparency and control

Network

Carrier

Energy

Supplier

Hub

Smart

Meter

Micro
-
generation

In
-
home

display

Energy
Management

Services via TV

Energy
Management

online

Electricity

Gas

Data Centre

The Future

© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



11

© British Telecommunications plc


Emerging lessons on best practice


BT

1.
Emissions reductions must be driven from the very top of the organisation

2.
Effective two
-
way communication is key to achieving behavioural change

3.
Many carbon reduction projects save money and this is often the dominant driver

4.
You can’t manage what you can’t measure

5.
External carbon reporting is often driven by reputational or regulatory considerations


Internal focus

External focus

6.
Companies are increasingly feeling compelled to look across the value chain,

but often for different reasons

7.
Large customers can help improve their suppliers’ environmental performance

8.
Many companies engage with their suppliers on environmental issues, but

the engagement is often ineffective and inefficient

9.
Most suppliers see clear benefits of helping customers reduce their

environmental impact

10.
Best practice is often not widely known, but there is ongoing work in some

industries to develop standards and guidelines

© British Telecommunications plc


BT Climate Change Procurement Standard


Launched March 2011


one of the first of
its kind in the UK


Encourages our suppliers to use energy
efficiently and reduce carbon during the
production, delivery, use and disposal of
the products and services supplied to BT


Suppliers asked to:


Have policies in place to address the
challenge of

climate change


Measure and report emissions of carbon
dioxide and

other greenhouse gases


Set challenging targets to reduce
emissions and

report regularly on their progress

© British Telecommunications plc


Supporting suppliers


Free supplier workshops in partnership with The Carbon Trust



Online resources



Best practice webinars




© British Telecommunications plc


Procurement climate change targets 2011
-
12

85%
of BT contracts placed will take energy consumption and / or
environmental impact into consideration in the award of business.
Tenders should include minimum 5% criteria on energy


1

100%
of BT ‘product replacement contracts’ awarded will be able
to demonstrate an improvement in energy efficiency and/or
reduced environmental impact.

2


Questionnaire & Energy calculation tool for buyers and suppliers


Climate Change Standard to be included in new contracts


2010/11 Targets


P&SC achieved
80%
and
100%

3

© British Telecommunications plc


Our supplier’s climate change commitments

70%

60%

50%

40%

30%

20%

10%

0%

2007/8

2008/9

2009/10

2010/11

Policy on climate change

Monitor CO
2

emissions

Targets in place

Source: Annual BT Supplier Survey

© British Telecommunications plc


Next steps


Target to embed into 80% of new contracts this year



Compliance with the standard identified via the climate change
questionnaire in tenders



Feed
-
back, reactions and compliance being tracked




On
-
going communication with the
procurement community and with buyers



Process of embedding with our buyers



Carbon Disclosure Project supply chain
initiative is showing stronger engagement
from our suppliers


© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



18

© British Telecommunications plc


BT’s pioneering carbon footprinting methodology

Carbon footprinting elements

Customer Domain

Service Platform

Operational Activities

In
-
use GHG emissions
associated with ICT end
-
user / customer premises
equipment



e

c

a

d

b

f

Embodied

Use

GHG Emissions LCA Phase

In
-
use GHG emissions
associated with ICT
network and service
platform supporting /
connecting (but not in)
customer domain

In
-
use GHG emissions
associated with labor and
non
-
ICT infrastructure
supporting Customer
Domain and Service
Platform equipment



Embodied GHG
emissions associated with
Customer Domain
equipment / infrastructure

Embodied GHG
emissions associated with
Service Platform
equipment / infrastructure

Embodied GHG
emissions associated with
Operational / non
-
ICT
capital infrastructure

© British Telecommunications plc


World first: carbon footprinting for London 2012

Impact of use
-
phase and embodied emissions associated with BT’s
London 2012 solution:


equipment dedicated to London 2012


the contribution of BT’s shared network services which will carry
Games traffic


BT people dedicated to the design, delivery and operation of the
solution




© British Telecommunications plc


GHG Protocol ICT sector supplement



Result of BT developing methodology for our services and our
experience in road testing draft product standard


“Practitioners Guide”


written by practitioners for practitioners


how to carbon footprint ICT products (goods & services)


ICT lifecycle and enabling effects [2% / 98%]


examples / case studies / supporting data


BT co
-
chairs telecommunications network services sub
-
group and is
on steering committee






© British Telecommunications plc


Next steps


Continue to drive industry collaboration towards global agreement



Participation in European Commission pilot of methodologies



Publication target date for GHG Protocol ICT sector supplement:
February 2012



© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



23

© British Telecommunications plc


Previously we ensured that sustainability
activity with our customers was embedded into
BT’s Climate Change Strategy

Our CEO Ian Livingston has now added a
6
th

strategic priority
for the business:

Becoming ‘a responsible and
sustainable business leader’

This means we need to continue to dedicate
our efforts to helping our customers move to
become more sustainable

Sustainability & our customers

Sir Michael Rake

Chairman

Ian Livingston

Chief Executive

Our commitment to being a leader in responsible and
sustainable business goes beyond a statement of strategic
intent and beyond managing our own social and
environmental footprint





We’re also passionate about the role that BT can play in
helping others to live and work more sustainably through our
technology and the skills and expertise of our people





© British Telecommunications plc


How we make it happen

Bid Responses


Support major bids where the solution to be delivered can
have real sustainability benefits for the customer



Includes £305m of Global Services bids in H1 of 2011/12



Sustainability also has a major role to play in joint BT
-
Local
Authority Superfast Broadband bids

Thought Leadership


Focus on understanding customer sustainability
needs on a sectorised basis through engagement
with account teams and customers



Producing documentation and customer material to
articulate the sustainable benefits of ICT solutions



Focus in 2011/12 has been on the Public Sector as
well as retail and supply chain

© British Telecommunications plc


Carbon Impact Assessment &

Build a Sustainable Organisation

Quick re
-
cap from last year...

...This has been updated to include a more
comprehensive picture of BT’s sustainable
capabilities as well as providing supporting
information for customers on the social,
economic and environmental benefits of ICT for
their business

© British Telecommunications plc


Implementation

Planning

Assessment

Monitoring

Build a Sustainable Organisation

Sustainability

Consulting

Wellbeing

Healthcare



Community

Energy
Management

Building

Energy

Management



Smart Grids



Smart Meters

Transport &
Supply Chain

Transport

Efficiency



Asset

Management

Data

Centres


Virtual Data

Centre

Services



Managed

Hosting



Continuous

Migration

Practice

CRM



Contact

Centre

Efficiency



Next

Generation

Contact

Centre



Smart

Customer

Interactions


IT Services


Operational

Efficiency



Integrating

Network &

IT services



Professional

Services

(IT Audit)

Workforce


Flexible

Workforce



Unified

Comms



Mobility

Solutions



Field Force

Automation

© British Telecommunications plc


Case studies

We continue to generate revenue through our Build a Sustainable Organisation Portfolio
and helping our customers understand the sustainable benefits we can deliver for them


Virtual Data
Centre Services


600 physical servers reduced to 160 virtual and 130 physical


170 desktops virtualised


Estimated 680 t CO2 emissions reduction


Significant increase in business resilience

Caja

Navarra Bank


BT Building
Energy Efficiency
(Green Branch)


Internal rate of return of 11.7 %


Approximately £10,000 savings per branch per year


Average 25% reduction in KWh

© British Telecommunications plc


i.
Unilever Resign


Bid submission included
Sustainability consulting
to create a joint Green IT
Roadmap.


Collaborated with
Unilever on embedding
Green IT into service
delivery.


New sales channel
opened up


Sustainability training is
now mandatory for key


ii.
Project Firefox


Key requirement was
to measure the impact
of the solution


Sustainability design
principles developed to
help guide Solution
Architects


Sustainability
governance built into
the contract


iii.
Environment Agency


Greenest Contract in
UK Government


Targets with Teeth


3 Sustainability Gates


Power Consumption


Travel Reduction


Sweating Assets to give
longer life







As part of our contract re
-
sign we committed to
creating and delivering on
a joint Green IT Roadmap.


Collaborate with Unilever
on embedding Green IT
into service delivery.


Sustainability training is
now mandatory for key
staff working on the
contract


Continue to work with Unilever to
support their sustainable
objectives through investigating
opportunities such as:



Asset Management (RFID)


Building Energy Management
Systems


Transport Efficiency

Sustainable partnerships with customers

+ N3 = Sustainability

The N3 team works closely with the NHS to find ways of utilising
broadband to reduce emissions



West London Cancer Network
utilises the N3 network to
transform their organisation using video
-
conferencing


The Cornwall & Isles of Scilly Community of Interest
Network
uses N3 to link distant sites together to enable
remote patient care


The Kent
Cardiovascular

Network
uses N3 to send
images in real time to specialists across London



Supporting Unilever’s Sustainable Living Plan

© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



30

© British Telecommunications plc


The future of business leadership



The new industrial revolution



Resource based


Winners & losers



The challenge


between now and 2020 every tonne of CO2 emitted needs to
deliver 5 times the economic value


Winners will succeed by:


aligning sustainability & innovation together


growing a top
-
line that resolves (as oppose to creates) humanities
greatest challenges


behaving much more like a business eco
-
system:


better networks with customers & suppliers


c
ross industry collaboration to create scalable solutions that
can serve the needs of 10bn+ people



© British Telecommunications plc


The future of business leadership

The need for systemic change


more conscientious consumption
models, in the home (M2M &
SmartReach

and/or Fibre) and at an
individual level.



more scalable & resilient supply
chains (RFID enabling transparency
and traceability) enabling the
eradication of waste & optimisation of
resources. From supply chains to
supply loops.



The innate social value of a more
connected society (adapt, overcome &
evolve)



© British Telecommunications plc


Cool broadband


Always available vs. always on



Lines automatically switch to low
-
power during low
-
traffic



Potential energy saving 30% per line card



No impact on service



Customer trials successful



Working with vendors on development plan


© British Telecommunications plc


Smart cities



Wireless



Fibre
telecomms



Remote sensor



Machine
-
to
-
machine



Cloud services



Conferencing



Web technologies

Our existing network means we’re ideally placed to help cities become
smarter:


© British Telecommunications plc


Developing smart technologies


Helping to create low
-
carbon communities


Smart meters & smart grids


Real
-
time electricity, gas & water use


Better planning possible via Smart grid intelligence


SmartReach


BT part of consortium created to support governments
commitment to roll our smart meters to 28 million homes &
SMEs by 2020


New, secure wireless network via long range radio waves


Smartgrid Ireland


founding partner


Smart Grid system in North America

© British Telecommunications plc


SmartReach trial activity


Ready trial launched in July 2010


In part, DECC fund


Covers 80 sq. km and

200,000 homes


Triallists

exploring performance

of Smart energy & water meters.


SmartReach also engaged in

trials regarding Smart Grid &

demand management

applications

© British Telecommunications plc


Agenda

1.
Welcome & introduction


Niall Dunne, chief sustainability officer

2.
Energy & carbon reduction


Richard Tarboton, director of energy & carbon

3.
Supply chain


Liz Cross, CSR & governance for procurement

4.
Carbon footprinting & driving industry standards


Gabrielle Giner, environmental sustainability programme manager

5.
Global Services Sustainability Practice & case study


Simon O’Neill, market strategy & development

6.
The age of smart


Niall Dunne, chief sustainability officer

7.
Q&A panel session



37

© British Telecommunications plc