Download Liz Cross, CSR & governance for procurement

Analyst round table: Sustainability
6 October 2011
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
© British Telecommunications plc
2
A better future
© British Telecommunications plc
3
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
© British Telecommunications plc
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A massive transformation
The move to a low carbon economy will be as impactful as the industrial revolution
695 Mt CO2e
International aviation
& shipping*
UK non-CO2 GHGs
42
98
Other CO2
Industry (heat &
industrial processes)
108
Residential &
Commercial heat
103
77% cut
(=80% vs. 1990)
134
Domestic transport
159 Mt CO2e
184
Electricity Generation
* 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
BT’s global energy consumption going forward
Network growth is driving up consumption, but our energy programmes are reducing consumption
at a faster rate enabling net year on year reduction.
Growth
BT's Global Energy Consumption
Trend
Status: August 2011
Target
3,200
+12% vs 09/10
(growth)
+3.0%
vs 09/10
3,000
-2.2%
vs 09/10
2,800
Reduction of
£56m pa
760 GWh pa
Energy in GWh pa
+4.6%
vs 10/11
-2.6%
vs 10/11
2,600
TARGET
BT is delivering energy
reductions and efficiencies in:
1)
Networks
2)
Data Centres
3)
Property
Electricity Consumption by Area
(2008/9 excl. tenants)
Estates
18%
Data
Centres
10%
2,400
09/10
10/11
11/12
Network
72%
12/13
2,225,626 MWh p.a.
© British Telecommunications plc
Breakdown of electricity use
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’s Integrated Energy Management System
BT is setting up a Smart Energy Control system to monitor and optimise energy consumption
Tasks &
Issues
Facility
Management
Optimise
locally
Energy Control
Centre
Analyse
data
Tasks &
Issues
Optimise
remotely
Field
Engineering
Optimise
locally
BMS
Smart Metering
BMS
450 people sites
22,000 installed across 6,000 sites
1,700 operational sites
© British Telecommunications plc
The Future
1. Energy distribution,
transparency and control
Micro-generation
Data Centre
Hub
Energy
Management
online
Network
Carrier
Smart
Meter
Electricity
Energy
Supplier
In-home
display
Gas
© British Telecommunications plc
Energy
Management
Services via TV
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
© British Telecommunications plc
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External focus
Internal focus
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
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
1
environmental impact into consideration in the award of business.
Tenders should include minimum 5% criteria on energy
100% of BT ‘product replacement contracts’ awarded will be able
2
to demonstrate an improvement in energy efficiency and/or
reduced environmental impact.
• Questionnaire & Energy calculation tool for buyers and suppliers
• Climate Change Standard to be included in new contracts
3
• 2010/11 Targets – P&SC achieved 80% and 100%
© British Telecommunications plc
Our supplier’s climate change commitments
Policy on climate change
Monitor CO2 emissions
Targets in place
70%
60%
50%
40%
30%
20%
10%
0%
2007/8
2008/9
2009/10
Source: Annual BT Supplier Survey
© British Telecommunications plc
2010/11
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
© British Telecommunications plc
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BT’s pioneering carbon footprinting methodology
Use
Embodied
GHG Emissions LCA Phase
Carbon footprinting elements
Customer Domain
Service Platform
a
c
In-use GHG emissions
associated with ICT enduser / customer premises
equipment
b
Embodied GHG
emissions associated with
Customer Domain
equipment / infrastructure
Operational Activities
e
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
f
d
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
© British Telecommunications plc
23
Sustainability & our customers
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 6th
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
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
“
“
“
“
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
Sir Michael Rake
Ian Livingston
Chairman
Chief Executive
© 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
Build a Sustainable Organisation
Sustainability
Consulting
Workforce
IT Services
CRM
Operational
Efficiency
Contact
Centre
Efficiency
Data
Centres
Transport &
Supply Chain
Energy
Management
Wellbeing
Assessment
Flexible
Workforce
Planning
Implementation
Unified
Comms
Integrating
Network &
IT services
Mobility
Solutions
Field Force
Automation
Professional
Services
(IT Audit)
Next
Generation
Contact
Centre
Smart
Customer
Interactions
Monitoring
© British Telecommunications plc
Virtual Data
Centre
Services
Managed
Hosting
Continuous
Migration
Practice
Transport
Efficiency
Asset
Management
Building
Energy
Management
Smart Grids
Smart Meters
Healthcare
Community
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
• 600 physical servers reduced to 160 virtual and 130 physical
• Virtual Data
Centre Services
• 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
Sustainable partnerships with customers
The N3 team works closely with the NHS to find ways of utilising
broadband to reduce emissions
+ N3 = Sustainability
•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
i.
Unilever Resign
• Bid submission included
Sustainability
• As part of ourconsulting
contract resign
we
committed
to IT
to create a joint Green
creating and delivering on
Roadmap.
a joint Green IT Roadmap.
• Collaborated
withUnilever
• Collaborate with
on embedding
Green IT
Unilever
on embedding
into service delivery.
Green IT into service
• Sustainability training is
delivery.
now mandatory for key
staff
working
on the
• New
sales
channel
contract
opened
up
• Sustainability training is
now mandatory for key
ii. Project Firefox
iii. Environment Agency
•
•
•
•
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
© British Telecommunications plc
Greenest Contract in
UK Government
Continue
to workwith
with Teeth
Unilever to
•
Targets
support their sustainable
objectives
•
3 Sustainability
through investigating
Gates
opportunities such as:
•
Power Consumption
•Asset
Management
(RFID)
•
Travel
Reduction
•Building Energy Management
•
Sweating Assets to give
Systems
•Transport
Efficiency
longer
life
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
© British Telecommunications plc
30
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
• cross 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
Our existing network means we’re ideally placed to help cities become
smarter:
• Wireless
• Fibre telecomms
• Remote sensor
• Machine-to-machine
• Cloud services
• Conferencing
• Web technologies
© 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
© British Telecommunications plc
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© British Telecommunications plc