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A case study on the assessment of environmental impact of ICT services in Korea Hyosik Min Environmental Strategy Manager CSR Office SK Telecom May 2012 – PowerPoint PPT presentation

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Title: May 2012


1
A case study on the assessment of environmental
impact of ICT services in Korea
Hyosik Min Environmental Strategy Manager CSR
Office SK Telecom
May 2012
2
Contents
I. SK Telecom Overview II. Background and
introduction III. Approach and methodology IV.
A case study Real-time Navigation (RTN) V. ICT
GHG potential abatement in Korea VI.
Introduction to Further Study
3
Section 1
SK Telecom Overview
4
SK Telecom Overview
SK Telecom is the leading telecommunication
company in Korea and has launched a lot of
innovative services
Cutting edge Tech. and Servces
Award Recognition
Worlds Most Innovative Companies Ranked 91st
One of two Telco companies selected (April
2005) Winner of National Customer Satisfaction
Index 1st Place for 14 consecutive
years (October 2011) Best Asia Telecom
Carrier Awarded two consecutive years (Telecom
Asia IDC, April 2007) DJSI world
Sector leader in Mobile
Telecommunications
84 96 02 06 07 11
AMPS
Real Time Navigation
CDMA
CDMA 2000 1X
e-Commerce
EVDO
Together With Shareholders
Movie Video
Music
HSDPA
Game
WiMax
OnlinePortal Mobile Portal
TD-SCDMA Test-bed
Mobile Money
HSUPA
SNS
LTE
Cloud Service
5
Telecommunication Market in Korea
Korea has fast growing mobile communication
market and SK Telecom has continued its
sustainable growth
Mobile subscriber
Selected key figures of SK Telecom
(As of Dec. 2011)
Revenue Operating gain Net income EBITDA Number of subscribers Market Share
13,783M 1,837M 1,363M 3,895M 26.6 million 50.6
6
SK Telecoms Environmental Management Strategy
SK Telecom established companywide strategy for
environmental management to actively respond to
environmental issues
Response to Climate Change
Reduction of Social GHG Emissions(SE)
Establishment of an Eco-Friendly Corporate Culture
Comply with all demestic requlations related to
GHG reductions
Recognize the effects of the countrys GHG
reductions through ICT
Stabilize the companys environmental management
system and reach a consensus among employees
7
Section 2
Background and Introduction
8
Background
Importance of ICT toward GHG emission abatement
has been studied globally

9
Introduction
A study on social GHG abatement by the use of
ICT
  • The purpose of the study was to
  • Demonstrate the potential GHG abatement of Green
    by ICT solutions in Korea between 2011 and 2020.
  • The scope of the study included
  • Role of ICT in climate change mitigation in
    national level
  • Contribution of ICT services to abate GHG
    emission
  • Development of methodology to calculate GHG
    emission abatement and
  • Quantification of potential GHG abatement in
    Korea.

10
Section 3
Approach and methodology
11
Approach ITU-T L.1410 Part 2
According to Part 2, we have applied Gap Analysis
between Reference Product System and Target ICT
service.
First Order Effects The impacts created by the physical existence of ICT and the involved processes
Second Order Effects The impacts created by the use of ICT service. This effects include the immediate abatement or increase in GHG emission after adopting ICT services
Other Effects As rebound effects, the impacts created by the aggregated effects that consider time gained for end-user phase as well
Target ICT service (Project scenario)
Reference Product System (Baseline scenario)
Less GHG (CO2e)
GHG (CO2e)
  • Energy
  • Fuel
  • Energy
  • Fuel

Transport
Transport
ICT service
Comparisons between the systems on the basis of
achieving the same functional units
12
Approach ITU-T L.1410 Part 2
We have applied quantification formulas by
categories and secondary effects based on Part 2.
Sector Categories Quantification
Transport Movement of people Energy abatement Unit energy consumption for each type of fuel Fuel consumption r educed
Transport Movement of goods Energy abatement Unit energy consumption for each type of fuel Fuel consumption reduced
Buildings Improved efficiency of office space Energy abatement Unit energy consumption Amount reduced
Buildings Power consumption Energy consumption Energy abatement Unit energy consumption for each type of fuel Fuel consumption reduced
Buildings Storage of goods Energy abatement Unit energy consumption Amount reduced
Buildings Improved work efficiency Energy abatement Energy consumption per m2 Area used per person (m2) Workload improved (person-year)
Industry Consumption of goods Energy abatement Energy consumption to produce one unit of the product Amount reduced
Industry Waste Energy abatement Unit energy consumption for each type of waste Amount reduced
13
Scope Boundary Analyzed 14 ICT services
3 selection criteria
1. Current offering from ICT industry players
3. Governments ICT strategy and plans
2. Global Benchmarking
14 ICT services for analysis
Transportation Buildings Commerce Production
1. Real-time Navigation (RTN) 7. Home Energy Management System (HEMS) 9. e-Commerce 14.Smart Motor
1. Real-time Navigation (RTN) 7. Home Energy Management System (HEMS) 10. e-Government 14.Smart Motor
2. Bus Information System (BIS) 7. Home Energy Management System (HEMS) 10. e-Government 14.Smart Motor
2. Bus Information System (BIS) 7. Home Energy Management System (HEMS) 11. e-Municipality 14.Smart Motor
3. e-Logistics 7. Home Energy Management System (HEMS) 11. e-Municipality 14.Smart Motor
3. e-Logistics 8. Smart Grid 11. e-Municipality 14.Smart Motor
4. Telepresence 8. Smart Grid 11. e-Municipality 14.Smart Motor
4. Telepresence 8. Smart Grid 12. e-Health 14.Smart Motor
5. e-Learning 8. Smart Grid 12. e-Health 14.Smart Motor
5. e-Learning 8. Smart Grid 13. e-Publication 14.Smart Motor
6. Smart Work 8. Smart Grid 13. e-Publication 14.Smart Motor
14
Methodology 6 Steps of workflow
Identify the functional unit and expected second
order effects
1
Define scope and boundary
2
Develop two different scenarios for comparative
analysis
3
Estimate second order effects and GHG emission
abatement
4
Project GHG emission abatement by year 2020
5
Aggregate GHG emission abatement
6
15
Section 4
A case study Real-time Navigation
16
Real-time Navigation (RTN)
Identify the functional unit and effects
1
  • Definition A GPS-based service that provides
    real-time information of optimal routes and
    traffic condition to the destination.
  • Functional unit Movement of people from A to B
    in certain conditions such as time and cost.

Types of Effects Positive effects Negative effects Impact on GHG emission
First Order Effects As usage of RTN increase, production and network usage for RTN increases () Increase
Second Order Effects As driving time and distance decreases, fuel consumption decreases (-) Decrease
Other Effects As life span of vehicles increases, production for vehicles decreases As users spare time increases, energy consumption from other industry increases () and (-) Ambiguous
17
Real-time Navigation (RTN)
Define scope and boundary
2
Boundary for population/consumer
Possible consumers for using RTN
The LBS users among mobile internet service subscribers
Boundary for transport
Applicable vehicles for installing RTN
Non-business cars, vans, trucks and business cars (assumed as taxis)
Mobile internet service subscribers 48,085,000 subscribers
of internet service subscribers using LBS service 19.3
People who are able to use RTN 9,280,405 people
No. of vehicles that are able to install RTN (assumed that every possible consumer possesses his own vehicle) 9,280,405 vehicles
Average annual travel distance per vehicle 14,987km
2008, Korea Transportation Safety Authority
2010, Korea Internet Security Agency
18
Real-time Navigation (RTN)
Develop two different scenarios
3
Reference product system (baseline)
Impacts on travel distance and fuel consumption while possible consumers dont use RTN
ICT service (project)
Impacts on travel distance and fuel consumption while possible consumers install and use RTN
No. of vehicles that are able to install RTN 9,280,405 drivers (or vehicles)
Average annual travel distance per vehicle 14,987km
Total distance travelled before adopting RTN 139billion km
of travel distance navigated by RTN 16
of fuel reduced 8.7
Travel distance reduction after adopting RTN 2billion km
ltT-map user statisticsgt, SK telecom ltNissan
SKY Projectgt , Nissan Motor
19
Real-time Navigation (RTN)
Estimate the GHG abatement in base year
4
By adopting ITU-T quantification category
Movement of people, reduced travel time in 2011
after implementing RTN is
Reduced distance by RTN 2 billion km
Actual Average Mileage 8.32km/l
Fuel saved by the reduced distance travelled 239,886.66kl
Emission factor of fuel 2.47 tCO2e/l
Emission abatement by RTN in base year 592,520 tCO2e
20
Real-time Navigation (RTN)
6
Project the GHG abatement by 2020
5
  • Considering about,
  • RTN service users

Potential GHG abatement by RTN by 2020
(unit tCO2e)
3.5 million tCO2e in 2020
2011 2020
Travel distance navigated by RTN 16 70
  • The number of usage per user

2011 2020
Internet service subscribers using LBS service 19.3 90
  • Growth in automobile industry

CAGR
Growth rate of car registered 3.28
21
Section 5
Potential domestic GHG abatement
22
Conclusion
Potential GHG abatements by adopting ICT services
is expected to be more than 5 times of its direct
footprint.
Potential GHG abatements of ICT services is 5.8
times of ICTs direct footprint.
  • Expected GHG abatement of each ICT services in
    2020.

(Units tCO2e)
  • Financial value via ICT services in 2020 is
    expected to be about USD 72 billion in terms of
    energy savings.

23
Implication
  • The significance of the study was
  • The first case study which fully applied ITU-T
    L.1410 Recommendation and
  • The first study on assessing GHG abatements by
    the use of ICT in Korea (of Republic).
  • The limitation of the study was
  • Absence of LCA approach for first order effect.
  • The recommendation for further study is
  • Prioritization of 14 ICT services in terms of
    possibility of standardization
  • Applying LCA approach for first order effect and
  • Planning for developing CDM methodology.

24
Section 6
Introduction to further study
25
Introduction of Phase II
The scope and work streams of phase II
Work Stream 1
Work Stream 2
Work Stream 3
Work Stream 4
Discover target ICT services by prioritization
Supplement target ICT services
Cooperate with major global organizations
Recommend utilizing GHG abatement via ICT
  • Possibility for global standardization
  • Corresponding to ICT services of SK telecom
  • Potential GHG abatement
  • Supplementing with qualitative and quantitative
    methods (e.g. user surveys, experiments)
  • Analyzing direct impact with LCA approach
  • Contributing a case study and sub-methodology to
    ITU-T
  • Collaborating with global organizations of
    standardization/ telecommunication companies
  • Suggesting development of CDM for ICT services
    overseas
  • Suggesting utilizing GHG abatement under domestic
    GHG abatement plans

Promoting global standardization of Green by ICT
2 target ICT services based on prioritization
Enhancement of the limitation in phase I
Reviewing the ways to approve GHG abatement
26
Thank you
Hyosik Min 82-2-6100-2253 hmin_at_sk.com
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