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Environmental futures Ian Hill, Chief Sustainability Officer, Openreach The contents of all the slides presented today are provided for guideline and discussion purposes only and represent no commitment from BT Contents Climate change & the ICT industry Openreach activities Ethernet & the environment The quest for excellence Sector Winner 2001 – 2008 Sector Winner 2007 - 2008 average temperature of earth 18° C 15° C carbon dioxide level in atmosphere 300ppm 7°C 200ppm -400,000 Source: Carbon Sense -300,000 -200,000 -100,000 today 50% global reduction on 1990 levels by 2050 80 CO2e (Gtonnes) 70 50% reduction = 450ppm CO2 = 2oC temp rise 60 50 40 30 20 10 0 1990 2000 2010 BAU (+1.2%pa) 2020 -2.1% 2030 -2.8% 2040 -4.4% 2050 -6.1% 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 Total greenhouse gas emission pathways 80 Emissions of greenhouse gases (GtCO2e) 2025 peak 2020 peak 60 2015 peak 40 20 0 2000 2020 2040 2060 Year Anderson & Bows. 2008 Philosophical Transactions A of the Royal Society. 366. pp.3863-3882 2080 2100 The weather is changing Average temperatures rising, with more extreme heat waves Rainfall patterns are changing with increased risks of flooding Ground conditions are changing (landslides, subsidence and heave) Glaciers are melting Permafrost is thawing Sea levels are rising Storm surge heights are increasing Intensity of storms is increasing The ICT industry & climate change Risk & opportunity Global value of saved energy and carbon = >€640b pa by 2020 www.smart2020.org ICT industry & climate change Carbon reduction commitment Mandatory UK carbon trading system Applies to organisations with half hourly metered electricity, and who consumed over £0.5m equivalent in 2008 - 5,000 UK businesses; Letters from the Environment Agency in July 2009 to billing addresses of relevant properties, asking organisations to identify whether or not they qualify; Commences in April 2010, but is based on billable energy consumed during calendar 2008 and requires preparation now Large potential penalties (and rewards) based on energy consumption performance - public league tables; Openreach emissions reduction Targeted activities Sustainability Emission reduction Fleet improvements Waste reduction Responsible product development Sustainability: Hierarchy of needs Corporate reputation & retention Disruptive market innovation & competitive advantage Physical plant & infrastructure adaptation Legal compliance & regulation • EU Electronic Waste Directive 2002 • UK Climate Change Act 2008 • EU Emissions Targets 2020 Emissions & waste A whole ecosystem 1. Less material shipped 6. Re-use = less landfill 2. Less demand created by re-use of existing products 5. Fault savings = less truck rolls = less co2 3. Less product deliveries 4. Less gas used to shrink Emissions Not a load of hot air! 23,500 vehicles Over 200,000,000 miles a year Over 30,000,000 litres of fuel 4-6 tonnes CO2 per annum 150 visits and c£400 per tonne Improving our fleet Existing fleet Smaller, lighter and more economical vehicles New, lighter vehicle racking and equipment – Low carbon fleet feasibility Electric Diesel electric hybrid 30% Bio Fuel 2-Man Tonner For every 100kg change in vehicle weight, fuel consumption rises by 0.7l per 100km Road speed limiters 10% fuel challenge Openreach waste A few throwaways BT total 80k tonnes pa >25% via TECs <45% Openreach Every year we put into the network: – 80,000 poles – 2m loop kms of copper £24 / tonne in 2007 £48 / tonne in 2010 – 7,000 types of engineering material Total waste is reducing & recycling % has doubled 120000 80000 Total waste Waste recycled 60000 46% 42% 42% 20000 34% 40000 26% 000 tonnes 100000 0 2004 2005 2006 2007 2008 Responsible product development Connectivity services: environmental benefits ► More accurate testing means less visits 150 fewer visits = 1 tonne of co2 emissions less ► Potential to offer CPs access and managed control of service network termination electronics Removes the need for CPs to deploy additional electronics ► Reduced power consumption lowers costs… …and co2! ► EBD moves Backhaul supply from individual point-to-point services with a per service multiple set of electronics and associated per service fibre deployment to a shared infrastructure model Should lead to a lower industry footprint ► EAD Aggregation - plans to offer multiple circuit Tails through common hub site electronics and individual handover electronics Reduces units produced and overall power consumption ► EAD Flex - active electronics at the end user site Should consume far less power than EAD electronics Summary Environmental impacts are important considerations Underestimating them will impact business success Our Connectivity Services portfolio evolution is already part of this future To make a difference we need our customers on board