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Embedding sustainability into customer products, propositions and into our customers business working practices

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Living Lightly Day over 9,500 pledges. Carbon Clubs 88 ... Small Business Week 2007 Green Day': launched the Understanding Green. Business Practices' Guide ... – PowerPoint PPT presentation

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Title: Embedding sustainability into customer products, propositions and into our customers business working practices


1
Embedding sustainability into customer products,
propositions and into our customers business
working practices
Analyst Round Table 3rd June 2008

Dr Chris Tuppen Director, Sustainable
Development Donna Young Head of Environment
Climate Change Aaron McCormack CEO, BT
Conferencing Dinah McLeod Head of Sustainability
Practice, BT Global Services Ruth Rowan Head of
Marketing Propositions, CRM, BT Global Services
2
Agenda
1. Sustainability Chris Tuppen
  • Sustainability criteria
  • The Opportunity Map
  • Opportunities in Emerging Economies
  • BT's leadership position the Climate
    Stabilisation Intensity target

2. Climate Change Donna Young
  • How are we progressing in terms of our current
    public target of 80 absolute in UK
  • Update how we are reducing our carbon emissions
    internally
  • Update how we are engaging our employees
    internally
  • Update how we are influencing our suppliers

3. Integrating sustainability into products,
propositions and into our customers business
working practices Aaron McCormack, Dinah
McLeod, Ruth Rowan
4. Q A
3
Sustainability
  • Chris Tuppen

4
Sustainability criteria
2. Help tackle climate change harness comms to
tackle climate change
  • A responsible business
  • maintaining world-class CSR performance

4. Enable sustainable economic
growth economic growth benefits everyone
within environmental limits
3. Help create a more inclusive society giving
everyone the opportunity to participate
benefit
1. Economic viability of our customers 2.
Contribution to wellbeing 3. Materials use and
waste 4. Energy use and CO2 emissions 5.
Community impacts
5
Opportunity map
6
Opportunities in emerging economies
  • Helping Global Services customers address the
    Base of the Pyramid market
  • Using BTs skills and capabilities in integrating
    large and complex systems with multiple partners,
    involving communications, IT and logistics
  • Delivering more sustainable societies
  • Finding new markets for BT in the longer term

7
Introducing our new CSI target
to reduce our worldwide CO2 emissions per unit
of BTs contribution to GDP by 80 from 1996
levels, by 2020
8
BT backdrop
  • In 1996/7 baseline year BTs UK emissions were
    1600ktonnes and rest of world (RoW) 1ktonne
  • UK target is to reduce 1997 emissions by 80 by
    2016 regardless of business growth
  • BT RoW revenue grew 28 in 07/08
  • RoW emissions now at 220ktonnes pa
  • Extension of UK target to RoW impractical

Source FT 28 June 2006
9
Growth in global CO2e emissions
10
50 reduction on 1990 levels by 2050
Average world GDP growth at constant prices (1980
to 2007) 3.6 pa Decoupling of world CO2e
emissions from economy (1990 to 2007) 2.4 pa
Net business as usual growth of world CO2e
emissions 1.2 pa
11
80 reduction on 1990 levels by 2050
Average world GDP growth at constant prices (1980
to 2007) 3.6 pa Decoupling of world CO2e
emissions from economy (1990 to 2007) 2.4 pa
Net business as usual growth of world CO2e
emissions 1.2 pa
12
World CO2e intensity for 80 reduction in
emissions
Reducing at 9.6pa at real prices
But what should a company do?
13
A company should ..
match or exceed this trend i.e. its CO2e per
unit of contribution to GDP should drop by at
least 9.6 pa
14
Adding in BTs CO2e intensity
15
Setting a target
80 reduction target by 2020
16
BTs emissions are dropping in real terms
17
BT will achieve its target by
  • Improving the energy efficiency of its network,
    estate, travel and vehicles
  • Building on-site renewables
  • 250MW wind in UK by 2016
  • Large PV array in California
  • Purchasing low carbon electricity. Contracts
    already in place in UK, Belgium, Germany and
    Italy

18
Advantages of a CSI target
  • Combines company environmental and financial
    performance
  • Links company performance to global environmental
    and economic performance
  • Accommodates the normal dynamics of businesses
    such as organic growth, acquisitions and
    outsourcing
  • Provides a framework for modelling future
    strategy
  • Allows straightforward benchmarking

19
Ensures emission reductions are sufficient to
prevent catastrophic climate change
Links climate protection to economic growth
Green growth for a LOW carbon future
20
Sustainability
Sustainability Report Summary 2008

21
Climate change
  • Donna Young

22
BT Climate Change Strategy
  • Reduce our own CO2 emissions
  • Influence our customers by proposing lower
    carbon solutions and through innovative use of
    ICT within their businesses. Influencing our
    suppliers to produce lower carbon-emitting
    products through our procurement principles.
  • Engage with our employees empower them to
    behave in a more energy efficient way at home and
    at work
  • Execute current proposed plan and build a long
    term integrated pan-BT communications campaign to
    position BT as a leader over the next 10 years.

23
BT aims to reduce its UK carbon footprint by 80
by 2016
1,600,000 tonnes CO2
60 reduction target by 2012
80 reduction target by 2016
320,000 tonnes CO2
24
The hierarchy of action to reduce carbon
25
Energy saving, renewable generation and
purchasing more green energy will deliver 80
target
Current Green Energy Contract (runs to 2010)
000 tonnes CO2e
BAU Carbon Projection
Energy Savings
Wind Project
Extra Green Energy Purchase
Target 320,000 tonnes of CO2
2013
2010
26
What is BT doing Travel
Home-working at BT (Agile Working)
  • BT has over 11,000 home-based employees, 84 use
    telephone and video conferencing services.
  • Home-based working helps employees to maintain a
    good work-life balance
  • 30 say home-based working had reduced domestic
    tension
  • 37 believe it would be impossible, or very
    difficult, to do their job if they couldnt work
    from home
  • An average 4.4 hours a week are saved by not
    commuting to work
  • 78 make more use of local services such as shops
    and sports facilities.  
  • Home-based working has environmental benefits
  • Home workers saved 7,000 tonnes of CO2 by not
    commuting to work
  • 79 of our home-based workers compared with 59
    of our total workforce feel their work
    performance has improved over the last two years.
  • Supporting BT work styles, 47 of BT people
    surveyed stated that conferencing services
    enabled them to work from home and 20 whilst
    travelling.
  • 64 felt that their productivity had improved

27
What is BT doing Travel
  • Conferencing
  • Environmental and Economic Benefits of
    Conferencing to BT Group - Survey 2007
  • Headline results
  • Conferencing is eliminating 859,784 face-to-face
    meetings a year for BT as a whole.
  • Under conservative estimate conferencing calls
    are saving at least 97,628 tonnes of CO2 per
    annum for BT as a whole.
  • Conservatively estimated the annual savings of
    avoided costs of 135 million a year in travel
    savings and 103 million a year in productivity
    gains for BT as a whole by using conferencing.
  • Broadband has enabled BT to really change the way
    it works and now 70 of BT employees work
    flexibly some or all of the time. 

28
What is BT doing Fleet
  • Working with local Integrated Patch programmes to
    minimise truck-roll through van sharing
    initiatives etc
  • Involving Modern Apprentices as Climate Change
    advocates and local champions
  • Investigating feasibility of building climate
    friendly activities into the Operational Manager
    safety checks (e.g. van loading, fuel
    consumption)
  • Building business case for SAFED driving course
  • Creating strategy to phase new hybrid technology
    vehicles into fleet
  • Ascertaining and championing BT Group policy on
    Car Clubs
  • Ease the squeeze Environmentally-friendly
    driving

29
What is BT doing Datacentres
  • Number 1 Data Centre Services Company in Europe
    Gartner
  • Over 7,000 technical suites containing computers
    globally
  • 79 Large Scale Data Centres
  • 1300 POPs
  • 5500 Telephone Exchanges
  • 250 21C Nodes
  • Convergence driving move away from dedicated
    network equipment to computing infrastructure
  • 21C network in mass roll out in the UK

30
Datacentres Current Initiatives
  • Short and medium term objective is for better
    utilisation of technology
  • Better CPU utilisation from 7-10 to 70
  • virtualisation and co-hosting with farms
  • Improve ratio of applications per CPU
  • Develop IT systems that are agnostic to failure
    of underlying infrastructure
  • Use the network and autonomics to drive
    reliability rather than reliable buildings
  • Encourage cool technology which provides better
    processing capability per Watt of power by
    categorising components into Red Amber Green
    based on power efficiency
  • Use BTs huge IT budget to move the market make
    it a commercial imperative for vendors to
    consider energy efficiency

31
Datacentres Holistic Data Centre Review
  • Reviewing entire data-centre design
  • For a Watt of power utilised at the CPU, the
    majority is wasted between power generation,
    the grid, step-down transformation, cooling, UPS
    batteries and system PSU.
  • Work with vendors to widen environmental envelope
    for systems
  • temperature, humidity, air-quality
  • wider operating envelopes allow more flexibility
    and savings
  • Review the ME plant, batteries and generators
  • usage of environmentally friendly and less
    hazardous materials
  • Better usage use of surrounding landscape
  • Tight integration between data-centre control and
    IT control system
  • Ensure building design and layout to maximises
    efficiencies

32
Renewable Energy What is BT doing
  • Generate onsite renewable energy
  • Overall aim 250MW 25 of BTs current
    electricity requirements from wind generation
    capacity by 2016.
  • The first phase operational by 2012
  • 10 of BTs electricity requirements
  • 100MW of wind turbine capacity
  • 50 x 2MW wind turbines
  • Enough to power 50,000 homes.

33
Purchase zero/low carbon energy What is BT doing
Calculations are indicative
34
Electricity supply current situation
CO2 of different sources ?
Grid average
Customers
Suppliers
Green Power
Double counting the benefit?
35
Why is a CO2 label needed? Market demands have
changed
  • Companies
  • Need to measure and reduce their carbon
    footprint
  • Annual Report CO2 emissions
  • Transparent, Auditable, Exclusive (no double
    counting of low-C supply)
  • Customer and investor confidence
  • Remove smoke and mirrors
  • Consumers
  • Price premium for positive environmental benefit
  • Confident in what they are buying
  • Simple, clear, trusted

36
Market-pull is required to drive growth of
low/zero carbon energy supply to reach target
levels
37
Supply Labelled electricity could deliver the
required market pull mechanism for increased
suppliers of zero/low carbon power
Consumers will want to buy more A-rated
electricity
A G grades of electricity will be sold at
different prices
  • Companies will want to buy more A-rated
    electricity to reduce their CO2 footprint
  • Company reporting
  • Pressure from customers, stakeholders, tender
    requirements
  • New policies CRC

CO2 / kWh
Electricity CO2
Increased development of zero/low carbon
capacity
High Margin
A
B
C

D
Low Margin
E
F
G
TOTAL ELECTRICITY CO2
38
How are we engaging with our employees internally?
  • Philosophy Fun, Creative Viral
  • Creative Challenge Partnership with LCC
  • Living Lightly Day over 9,500 pledges
  • Carbon Clubs 88 established
  • Website with blogging and sharing of
    information
  • Green Basket special offers for employees
  • Newsletters
  • Over 250 online BT Today news stories

39
Engaging 112,000 BT people
  • By 2012, we aim to have at least 20 of our
    employees
  • actively reducing their carbon footprint at work
    and at
  • home

40
Green Basket employee offers
41
How are we influencing our suppliers?
  • Developed 3 principles
  • Workshops to train buyers
  • Survey to suppliers
  • Whole life costing tool available
  • Scoring mechanism established

42
Procurement Principles
  • We will harness the capability, diversity and
    innovation of our supply base to add value to our
    business and encourage suppliers to offer
    solutions which have a reduced environmental
    impact.
  • That the energy consumption and environmental
    impact of a product or service (from manufacture,
    through usage, to disposal) is a mandatory
    criterion in all tender adjudication.
  • That the energy consumption and environmental
    impact of any replacement product or service
    (from manufacture, through usage, to disposal) is
    less than its predecessor.
  • We will ensure that our suppliers meet
    appropriate  targets on energy consumption and
    environmental impact.

43
Climate Change
Operational Progress to Date

44
Integrating sustainability into products,
propositions and practices
  • Aaron McCormack

45
How are we integrating sustainability into
products, propositions and practices?
  • Energy efficient home-phones
  • E-billing Paper Use
  • Conferencing
  • Virtual View and Learn e-learning solution
  • Understanding green business practices guide

46
How are we integrating sustainability into
products, propositions and practices?
  • Energy efficient Home-phones
  • January 2008 BT launched a new range of more
    energy efficient phones
  • The start of a 2 million commitment to improve
    the energy efficiency of BTs entire home-phone
    range 
  • More than 90 of the entire home phone range
    supplied by BT will be more energy efficient by
    July 2008, (at no extra cost to the consumer)
  • New power units consume around half the power of
    previous units
  • Estimated that the replacement of all BTs DECT
    cordless and fixed-line phones with more
    energy-efficient equivalents will result in an
    overall reduction in CO2 emissions in excess of
    195,000 tonnes over the next three years the
    equivalent of taking 57,000 cars off the road for
    a year
  • Consumers are set to save a total of more than
    39m through reduced electricity bills
  • BT has also reduced the amount of packaging
    required for each phone
  • Energy efficiency in other ranges
  • BT Retail will phase out all non energy efficient
    external power supply units in all Customer
    Premises Equipment as stocks are exhausted

47
How are we integrating sustainability into
products, propositions and practices?
  • E-Billing and Paper Use
  • Stationery
  • 06/07 423m sheets of paper, 188m envelopes
  • 07/8 378m sheets of paper, 168m envelopes
  • This covers all billing stationery - ie bills,
    reminders, letters etc covering Consumer and
    Business. All stationery is sourced from
    sustainable sources
  • Paperless billing
  • 06/7 905k customers
  • 07/08 over 1.4m customers
  • 1 million trees now planted in partnership with
    Woodland Trust
  • Tracking dual bills to convert them to online
    only
  • Long term plan to move to 1 bill

48
BT Conferencing working with HBOS
BT Conferencing asked 2479 HBOS employees for
feedback on how much time productivity has
improved since using Conferencing services 34
responded
  • Results
  • 59 of HBOS conferences replaced a face to face
    meeting
  • Across all 828 respondents, a total of 11,734
    conferences were arranged in a month. The average
    number of conferences per person is 14
  • 4517 hours was saved by having a conference call,
    rather than travelling to a meeting. Average of
    approx 3 (2.89) hours per person
  • Across all respondents, the journeys taken was
    equal to approx 80 Tonnes of CO2 emissions in
    total or 95kg CO2 emissions per person
  • If 59 (proportion of conferences that people
    claim replace a face to face meeting) of the 4500
    people who are registered conferencing users made
    just two calls a year to replace face-to-face
    meetings, with just two other HBOS colleagues on
    the same call, that would potentially save HBOS
    4.23 million a year and 235.5 tonnes of CO2
    emissions in total
  • This clearly shows that sustainable business
    practices can have a positive business impact

49
How are we integrating sustainability into
products, propositions and practices?
  • Expedite elearning solution Virtual View
    Learn
  • On line technical and product training solutions
    specifically aimed at the Retail sector
  • Enabled via EPOS system itself, PCs or mobile
    devices
  • Reduce paper material costs by 45 (first year).
  • Reduce CO2 emissions by trainers not having to
    travel to train staff
  • Reduces waste through reduced training materials,
    packaging and transport
  • Increases speed of roll out

50
How are we integrating sustainability into
products, propositions and practices?
  • BT is helping small businesses act responsibly
  • Small and medium sized businesses account for 60
    of the UK workforce
  • Small steps could make an incredible collective
    impact
  • ICT can help business tackle climate change
  • Supports smarter work and travel unified
    communications, conferencing, flexible working,
    virtual workspaces, electronic signatures
  • Can make it simpler and faster for businesses to
    promote themselves online marketing and social
    commerce can help reduce material consumption and
    travel
  • BT Business provides services to nearly one third
    of all UK SMEs. We understand
  • our role in helping customers understand the
    positive impact of being responsible
  • both on their business and the environment, and
    to take positive action
  • Small Business Week 2007 Green Day launched
    the Understanding Green Business Practices
    Guide
  • BT Carbon Calculator helping business measure
    their impact and take action
  • Practical support working with the Small
    Business Consortium to re-launch
    www.smallbusinessjourney.com
  • Overcoming challenges Member of the Supplier
    Support and Information Initiative recently
    launched by the HRH Prince of Wales

51
How are we integrating sustainability into
products, propositions and practices?
  • Dinah McLeod

52
BT Global Services sustainability practice
53
Customers are taking notice
54
Carbon Impact Assessment
  • Aim is to identify where changes can be made
  • Based on Greenhouse Gas Protocol, 06-07
  • Not just buildings and equipment also people and
    shared services
  • Holistic vendor-neutral building on BT
    experience

55
Real world results
BT Stadium House
  • Total CO2 emissions for our own tested data
    centre are just over 1m Kg per year
  • Scope I CO2 1 e.g. Generators
  • Scope II CO2 92 e.g. Electrical power
  • Scope III CO2 7 Commuting and travel

Scope I
Scope III
Scope II
56
BT Global Services sustainability philosophy
57
Carbon Impact Assessment
  • Carbon Impact Assessment Customer Brochure
  • Carbon Impact Assessment Case Study

58
How are we integrating sustainability into
products, propositions and practices?
  • Ruth Rowan

59
A blast from the past the 1992 BT Inverness
experiment
  • 11 volunteer directory enquiry advisors
  • Cutting edge homeshoring technology
  • Great results
  • Service levels up
  • Increased Flexibility
  • Great learning
  • Operators enjoyed working at home more time
    with family less stress

BUT . . . Cost per Installation 11,000 !
60
The time is right?
61
The BT offer
62
Phone home new research
63
Phone Home
Phone Home

64
QA
65
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