Sustainability in Telecoms

Sustainability in Telecoms: Reaping the Benefits of Green Dividends

Authored by: Sharifah Amirah and Sophie McKechnie

“If 2007 was the year when climate change rose to the top of the global agenda, 2008 is the time we
th
must take concerted action.” - UN Secretary General, 11 February 2008.

Preamble

‘Sustainability’: a word we are all familiar with, but one which is a struggle to define. According to the

UK government, a widely-used and accepted international definition of sustainable development is:

'Development which meets the needs of the present without compromising the ability of future
1
generations to meet their own needs.'

An explanation such as the above may be pithy, but it remains frustratingly vague. The scope of

sustainable development is elastic, depending on where, and by whom, it is practiced. At its broadest,

sustainable development spans social, economic and environmental spheres; it is these three

interdependent pillars which the UN’s Division for Sustainable Development considers within its remit.

For the purpose of this report, environmental - as opposed to social or economic sustainability - will be

the primary focus. The context of the ensuing discussion is based on the UN’s Brundtland Commission

definition, below, where the sustainability equation extends beyond resource consumption and is

influenced by wider socio-political and economic agendas.

“…sustainable development is … a process of change in which the exploitation of resources,

the direction of investments, the orientation of technological development, and institutional

change are made consistent with future as well as present needs.”

Source: Report of the World Commission on Environment and Development, 1987

On this premise, the key thrusts of this study include an overview of stakeholder engagement, a detailed

PESTLE analysis, a review of service provider initiatives and a discussion of possible prescriptions,

highlighting industry best practices.

1
http://www.sustainable-development.gov.uk/what/index.htm

Sustainability in Telecoms (October 2008) Page 1

One would be hard pressed to deny that the momentum surrounding the climate change agenda has

continued to gather pace over the last two years. In the public and private sector, within civil society as a

whole, and on an individualistic level, the environment has become a considerable focal point for both

debate and action. Of course, the environment (and climate change in particular) is by no means a virgin

subject matter. Knowledge of global warming and its affects has been in the private and public domain

for decades. One could say that it was in 1970 that the modern environmental movement was born,

when the first Earth Day was held and around 20 million Americans took part in peaceful demonstrations

across the country. However, the recent ‘rebranding’ of climate change as ‘mankind’s biggest challenge’

is a more novel concept.

The suggestion that the hype surrounding eco-sustainability is a passing fad is not entirely

unreasonable. (The vision of David Cameron pedalling away on his bike whilst his brogues were driven

to work behind him springs to mind.) Indeed, the championing of all things green by A-list celebrities and

politicians alike, coupled by a media fuelled frenzy and a not-so-subtle dose of green-washing, is

enough to make any cynic question the sincerity of the green agenda. On both a national and

international level, spiralling political and media attention have fuelled a heightened awareness of

environmental issues. This elevated status, within both political and social spheres, has greatly raised

the expectations and pressures placed upon the private sector.

In 2007, Frost and Sullivan published a report entitled ‘Technology embracing the Green Religion’.

Based on both primary and secondary research, the paper provided an insight into how key European

telecommunications service providers were reacting to the environmental challenge. Over the last year,

the visibility of telecom’s approach to sustainability has grown dramatically. The more pronounced eco-

strategies, and increased availability of quantifiable information has allowed us to compile a more in-

depth study on the basis of this new transparency. The rapid evolution of the industry’s approach to

sustainability is testimony to the nascent nature of sustainability programmes in the private sector. This

is an area which is still very much in the process of being moulded into an integral part of the private

enterprise.

This research study provides an insight into how far the telecommunications industry has integrated

‘being green’ into its ethos, business practices, and services. The first part of the study highlights the

influence of stakeholders in sustainability initiatives. The imperative need for multi-stakeholder

engagement is further demonstrated through an extensive PESTLE analysis that provides a holistic view

of the multi-faceted eco-equation impacting the telecommunications industry. Given that the service


provider is consistently the main touch point with consumers, an analysis of the sustainability strategies

of nine European telecommunication operators will serve as the main body of the report. The selection

of profiles serve as an update from last year’s study where several have shown marked progress.

Additional operators have also been included in this review based on their commendable sustainability

strategies. The service providers selected for review here are: Belgacom, British Telekom, Deutsche

Telekom, France Telecom, Swisscom, Telecom Italia, Telenor, Telia Sonera and Vodafone. In

conjunction with these profiles, extensive secondary research has been utilised to paint a

comprehensive picture of the eco-direction in which the telecommunications sector is moving. Key

facets of a sustainable value chain are discussed at the end of this study including a selection of

industry best practices.

Stakeholders

As any CR team is aware, stakeholder engagement is an essential activity for any socially responsible

business. In relation to sustainability, the list of drivers for a service provider, or indeed any other party,

is long and wide-ranging. Chart 1.1 illustrates the sectors in which stakeholders can be found, and in

turn, the key drivers behind a service provider’s sustainability strategy.

Chart 1.1. Sustainability in Telecoms : Stakeholder Prioritisation

Source: Frost & Sullivan, 2008


As the diagram reflects, the importance placed upon each stakeholder by the service provider is never

equally spread. If one takes a step back from the nuances of individual organisations, a number of

broader observations are worth making. In general, shareholders, employees, consumers and

immediate suppliers are consistently valued as central stakeholders due to their direct investment in a

company. Alongside these, legislative bodies on a national and international level hold considerable

sway because of the regulated nature of the industry. As representative bodies, (often of wider societal

issues which lack individual champions), NGO’s and lobby groups are an increasingly important point of

call for open-dialogue discussions. Furthermore, as the prevalence of sustainability continues to grow,

so too will the influence of internal regulatory bodies. The explosion of industry associations in the last

few years, such as the Global e-Sustainability Initiative (GeSI) and the Carbon Trust, has also greatly

contributed to the growing pressure for mutual accountability from within the industry.

Of course, depending on the dynamics of the home environment, different factors are prioritised on

different levels. A cross-country comparison between Germany and America serves as a telling example

of such variation. Despite being the ultimate ‘green villain’ of the developed world, eco credentials in

America are only just beginning to feature as important criteria for consumers and employees. In

contrast, in Germany the level of public awareness is such that it is more or less embedded into

business practice.

In addition, stakeholders themselves are not one homogenous body with the same issues of concern.

Engagement with stakeholders in such a multifaceted way brings with it a number of questions and

conflicts of interests. The industry is influenced by the binary trajectories of broader objectives vs.

specific goals, local interests vs. global implications, and enterprise vs. individual actions. Further,

cultural and localised variables need to be taken into account as a wider social ‘revolution’ underpins

behavioural change. A somewhat extreme, anti-capitalist yet valuable perspective of this is well

captured by Serge Latouche’s concept of ‘decroissance’ or de-growth. While centralised commitments

are necessary, the emphasis remains on local, self-sufficient sustainability initiatives.

There is also a further issue of the ‘silent majority’ and ‘stakeholder fatigue’ which tends to be left un-

addressed. If one takes a step back from the nuances of individual organisations, a number of broader

observations are worth making. In general, investors, employees, consumers and suppliers are

consistently valued as central stakeholders due to their direct investment in a company. Alongside

these, legislative bodies on a national and cross-country level hold considerable sway because of the

regulated nature of the industry. As representative bodies, (often of wider societal issues which lack


individual champions), NGOs and lobby groups are an increasingly important point of call for open-

dialogue discussions. Furthermore, as the prevalence of sustainability continues to grow so too will the

influence of regulatory bodies. Best practices, in terms of industry engagement; supplier forums,

industry events, internal campaigns, long term self-sufficiency as well greater transparency in CSR

reporting are increasingly prevalent in sectors with consumer proximity, such as financial services and

the entertainment industry. Such benchmarks, combined with greater industry pressure, are, over time,

likely to widen the discrepancy between stakeholder expectations and organisational performance.

Henceforth corporations are likely to be persuaded to implement measures in redressing the imbalance.

The varied and, at times, conflicting levels of stakeholder interests demand a multi-pronged approach to

pursue the ‘eco-challenge’ from all corners. The following PESTLE analysis will demonstrate the circle

of external developments, held together by social and environmental concerns, which currently

permeates the telecommunications sector in Europe.

PESTLE Analysis

As described earlier, a review of any sustainable framework calls for a holistic analysis of the wider

forces that influence the individual, enterprise and state. The objective of the analysis below is to

demonstrate the critical need for such analysis rather than to serve as an exhaustive discussion, which

unfortunately is beyond the scope of this study.

Political

Over the last few years, sustainability has risen to new heights on the political agenda. Where concern

for the environment was once accepted as the preserve of well-to-do ‘eco-warriors’, it has fast emerged

into a prerequisite for any political party wishing to maintain momentum and grassroots support.

‘Ecological wisdom’, one of the foundational principles of Green politics, is no longer merely a principle

laid claim to by Green Parties in the face of hostile opposition. Across the board, political parties of

every calibre are hoisting the green flag – and then waving it madly. Whilst voters are beginning to rate

parties based on their green policies, politicians are using climate change to identify potential new taxes

and revenues. Green taxes, such as those on 4X4’s (fondly known as Gas Guzzlers), plastic bags and

other consumer goods are gradually become standard practice in most European countries. The UK, for

example, has introduced the Climate Change Levy (CCL), a tax on the use of energy in industry,

commerce and the public domain, which also allows tax rebates to be granted (via the Climate Change

Agreement Scheme (CCAS).) Alongside this, governments are issuing guidelines for businesses and


citizens alike, showing an increased attempt to drive material and behavioural change. The UK

government’s Energy Efficiency Best Practice Programme (EEBPP), for example, provides information

on energy efficient technologies and techniques and has developed product standards labelling. Other

regulatory regimes being explored include taxes on goods produced in high carbon emission countries

as well as penalties on excessive carbon emissions, based on pre-defined quotas. The latter tends to be

in relation to the Kyoto Protocol, which in itself is an endemic source of political quagmire. Financial

speculators and environmentalists alike await with bated breath the outcome of the post-Kyoto meeting

in Copenhagen next year.

It is almost unavoidable that critique and scepticism from the media and some sectors of the public will

rise as the impacts of ‘green’ measures continue to be felt. For example, a research study conducted in

April of this year found that two-thirds of Britons think the entire green agenda has been hijacked as a
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ploy to increase taxes. Consequently, as governments assume an increasingly interventionist position,

the necessity for their internal bodies to ‘walk the talk’ will grow concurrently. Amid general calls for

transparency within the public and private domain, it is internal operations that will be increasingly

subject to scrutiny. With the green agenda positioned to become a permanent fixture rather than a

passing fad, governmental bodies are aware that they can not afford to be subject to charges of

hypocrisy; they must practice what they preach. Within the public sector, changes are already occurring,

and the telecoms sector has the opportunity to capitalize upon these changes.

Economic

The economic climate holds a decisive influence over the import attached to sustainability. Crudely put,

richer countries are able to afford the time and money needed to develop a comprehensive sustainability

strategy. The investment of the private sector, in combination with a weighty governmental budget,

provides the basis upon which government can reform its own practice and push issues surrounding

sustainability into the public psyche. This dependence on financial investment begs an important

question: does a downturn in the economy bring with it a green recession?

The argument that green issues will be overlooked in the face of economic crisis is somewhat negated

by the nature of green investment itself. Of course, it will not be immune to economic downturn, but it is

here to stay in the long term. The financial community recognises that ‘green’ represents a substantial

2
The research was conducted online amongst 2,002 adults by Opinium Research LLP between 11 and 14 April


investment opportunity, not just an ethical choice. The anxieties surrounding energy sources most

obviously exemplify this. From a more capitalist perspective, the concerns over energy prices, trade

deficits, and energy shortages caused by peak oil, clearly enhance the enduring value attributed to

sustainable resources. In all, economics remains at the heart of the financial sectors’ engagement with

green initiatives and it is this that will ensure that the attention paid to sustainability is not just a transient

privilege enjoyed when national economies are feeling secure.

The financial sector’s part in the pricing of carbon is the most overt indication of its long-term role in the

climate change challenge. Like anything else, carbon reduction is only able to be given the same level of

importance if it is subject to a cost-benefit analysis. The UKs ‘Shadow price of carbon scheme’ is a most

recent example of a government’s attempt to implement a uniform way of measuring its internal carbon

emissions and (eco) opportunity cost of public sector projects. The direction in which the financial sector

is moving with respect to carbon credits, indices, and auctions will be discussed in more detail towards

the end of this paper.

Furthermore, the market for “green” products and goods, ranging from eco-fashion to eco-finance, is

rapidly expanding. Indeed, last year a total of clost to €100 billion was invested worldwide in clean
3
energy alone, and shares in solar companies on the NEX index rose by a staggering 163%. The

assessment in the Stern Report, that the market for environmental products and services would reach

$500 billion a year by 2050, provides some indication of this trend. And the financial sector is not

exempt from this; a range of “green” financial services, such as socially responsible banks, investment

funds, mortgages and ISAs are emerging -perhaps the latest extension of the fair-trade, organic niche?

Our current analysis of share prices across leading European telecommunications service providers

reveals little sensitivity and minimal co-relation to the company’s environmental performance. We do

however expect this to change, particularly as indices such as the Dow Jones Sustainability Index and

the FTSE4Good begin to take centre stage.

Social

With respect to goods and services, the relatively new value attached to ethically (as opposed to just

environmentally) sound products shows no sign of diminishing. One can buy solar powered shavers,

bio-degradable flip-flops and even eco-friendly coffins -the list is endless. In the UK alone sales of
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organic food, cosmetics and clothes reached 2 billion pounds sterling in 2007. Whilst those fuelling this

3
http://www.forumforthefuture.org.uk/greenfutures/articles/shelterfromthestorm
4
Ibid


eco-friendly consumerism could be accused of buying into the hype, their interest in eco credentials is

symptomatic of a shift in mindset, a change that holds much more longevity. It is not only the purchasing

of products, but their use which is being paid more attention by the ‘movers and shakers’ within society.

In other words, behavioural change, as well as material consumption, is being targeted. Washing at 30°,

flushing the toilet when you really need to, abstaining from filling the kettle to the brim; minimising the

impact of human activity is the take-home message of the day.

Currently, it seems that everyone is jumping on the sustainibility band-wagon and, in the process,raising

the public’s awareness of the issues at hand. It was only a couple of months ago (July) that Gordon

Brown was calling on Britons to stop wasting food after a government report suggested that they were
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throwing away groceries worth more than £1 billion a year, an average of £420 a year per family. At

the other end of the scale, one social networking site (Facebook) has created ‘greenbook’, a novel way

of raising the profile of humanity’s carbon footprint, although the actual effects remain to be measured.

The application encourages users to share green ideas and doles out individual amounts of ‘CO2

removal’ credits to members on a daily basis. In this way, the site uses the company’s carbon reduction

credits it has previously generated through sponsorship to engage with their members.)

In general, environmental and social responsibility on the part of enterprise, government and the wider

community is becoming an expectation rather than an asset. Over the last decade Coroporate Social

Responsibility (CSR) has grown into an integral part of most companies’ infrastructue. For instance,

every operator profiled in this study had a link to an extensive CSR section on the homepage of their

websites, a scenario which would not have existed previously. Moreover, the demand for eco-

professionals is growing; the number of climate change specific jobs has grown by nearly 200% in the
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last 12 months. It has become a prerequisite for telecommunication companies to have a

comprehensive strategy relating to their social obligations, a development which is already beginning to

be emulated where eco-sustainibility is concerned.

From a social psychology perspective, behavioral change will need to take place en masse before we

see a shift in consumer patterns towards more sustainable products and services. Several social

scientists have fallen back on Maslow’s hierarchy to argue that individuals who are closer to the top of

the pyramid, i.e. achieving self actualisation, will have a greater tendency to be more environmentally

conscious – as one becomes less obsessed with material wealth and takes a more altruisic approach to

life. Based on the general notion that self-actualisation is a function of wealth, patterns in Scandinavia

5
http://www.timesonline.co.uk/tol/news/uk/article4282571.ece)
6
Acre Resources, 2008


support the hypothesis that sustainable consumption bears a strong correlation to self-actualisation.

However, this argument is defeated when one looks across the pond to the United States of America;

being one of the richest nations in the world and also one of the biggest polluters. In both instances,

one thing is consistent: adopting a more sustainable lifestyle can be costly as eco-products and eco-

services tend to bear a higher price tag.

Technological

There is growing awareness that technology can act as a powerful enabler of greener living. Evidently,

the carbon footprint from the ICT industry cannot be mitigated completely. However, ICT has the

opportunity to engage with ‘sustainability’ in a much more positive way than any other business

community. Recent Industry research has estimated that the potential saving enabled by ICT-lead

initiatives could be as much as 15% of total global emissions by 2020, delivering energy efficiency
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savings to global businesses of over 500 billion euros.

The idea that technology can aid companies and consumers alike to ‘go green’ has already been

harnessed by a number of vendors and operators (as detailed in profiles below). IBM, for example, is

heavily involved in supporting nuclear systems design and implementation, solar technology innovation,

and water management. For instance, in the latter field, the use of real-time monitoring technology, data

analytics, and next generation content delivery provides innovative access to environmental information.

As a whole, the ICT industry is well placed to facilitate carbon emission reduction, and contribute to the

introduction of clean technology. Nonetheless, the room for growth within the ‘sustainability’ sector has

to be exploited with caution. In order to capitalise upon the opportunities presented by the desire to be

green, growth has to be reconciled with impact. The rolling out of existing services in emerging markets,

and the development of new ones, has to be counterbalanced by a visible and long-standing

commitment to sustainability. It is only via this strategy that ICT will be perceived as a valuable enabler

of sustainable development.

Legislation

One of the most consistently important drivers for greener behaviour is legislation. On a national,

European, and global level, a plethora of voluntary and mandatory agreements provide coherence and

direction for sustainability efforts. Today, the ICT sector accounts for approximately 2% of the worldwide

7
McKinsey Report, ‘SMART 2020: enabling the low carbon economy in the information age’, sponsored by
GeSI and The Climate Group.


8
energy consumption and related CO2 emissions, a figure estimated to grow to 3% by 2020. As a

regulated industry, and a substantial contributor to most countries’ carbon footprint and energy usage,

ICT and telecoms are unavoidably implicated by any country or cross-country goals set.

In 2007, EU members entered into a binding target stipulating that 20% of the EU’s energy

consumption will come from renewable sources by 2020. Moreover, the ‘Lisbon Agenda’ stipulated that

telecommunications would be required to play a role in reaching the targets set. These goals are not

mere gestures but ambitious in their aims; the European Commission suggested that the UK for

example should increase their renewable resources from 1.5% to 15% by 2020, an objective requiring a

concerted effort from all sectors. Perhaps more effective catalysts of change than longer-standing

treaties like the Kyoto protocol, these new specific targets are pushing governments (and, by extension,

enterprise) to actively respond to wider environmental and social concerns.

Environmental

Global warming, climate change, the greenhouse effect - whatever you want to call it, and whatever the

cause, it is happening.

Chart 1.2. The Reality of Global Warming

Source: UN HDR 2007, CDIAC 2007; IPCC 2007
.

8
Ibid


As Lord Stern stated: “The balance of scientific evidence points clearly to the need for all countries to

plan credible emissions reduction policies now, if mankind is to avoid substantial risks to future
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generations.” In light of this, the question still remains: how far should ICT shoulder the blame for

mankind’s environmental faux-pas’? According to the Stern report, within the ICT sector C02 reduction
10
of ~ 10% p.a. until 2050 is required to keep us in a ‘sustainable state’ . This estimate is not without

reason; whilst the industry’s contribution may be as low as 2%, the impact on daily lives, particularly in

increasingly digital societies, is as high as 50% (ITU, 2007)

Chart 1.3 Global Annual CO2 Emissions – Past, Present and Future

Source : Adapted from the Garnaut Climate Change Review, 2008

It is clear from the above diagram that annual global emissions under a ‘‘business as usual’’ model are

not an option. As the following profiles display, across the board the European telecommunications

sector is becoming evermore aware of this, and responding positively, albeit driven by varying ulterior

motives.

Eco-Drivers in Europe – Telecommunication Service Provider Profiles

The following section profiles the sustainability strategies of a number of leading European operators.

These are based on primary interviews and information made available in CSR reports and company

9
Nicholas Stern ‘Key elements of a Global Deal on Climate Change’, May 2008.
10
Ibid


websites. The profiles demonstrate the degree to which telecoms has already adopted the mantle of

sustainable development, and provide an indication of the direction in which the industry is moving. All

nine service providers profiled demonstrated a fairly extensive, albeit still evolving eco-strategy, largely

premised on CSR.

In terms of motivation, the companies profiled shared a number of commonalities. Most notably, it is

clear that European service providers value cost savings – through operational efficiency (alongside

legislative compliance) as a key driver behind eco-sustainable strategies. Whilst the pressures

employed by stakeholders are important, potential OPEX savings and commercial opportunities are

consistently acknowledged as fundamental eco-drivers. As Vodafone states within the first paragraph of
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its “Environment” section: “there is a clear business case for good environmental management.”

Chart 1.4. Key Eco-Sustainability Drivers for European Telecommunication Service Providers

Operational Efficiency (€€)

Legislation
Prioritisation and
Scope
Brand/Reputation

End User Demand

Source: Frost & Sullivan, 2008

Of the nine service providers profiled, seven had rated operational efficiency and/or cost savings as their

primary eco-driver. The financial community and other enterprises alike share this commercial attitude to

eco-sustainability. Given the highly competitive environment within telecommunications, cost savings

have driven European operators to seek operational efficiencies through the adoption of more

sustainable business processes. Rising energy prices and resource scarcity in general see eco-

initiatives helping bottom line, whilst new or re-branded eco-solutions can help drive top line. More

implicitly, as the wider economy becomes more eco-astute, service providers are finding themselves

11

http://online.vodafone.co.uk/dispatch/Portal/appmanager/vodafone/wrp?_nfpb=true&_pageLabel=template11&pageI
D=PAV_0038&wt_oss=environment


having to embrace the ‘green religion’ in order to fulfil the increasingly green needs of their customer

base, particularly larger corporations and consumers in certain geographic regions.

Environmental Sustainability Benchmarks

In the main, the criteria discussed in these profiles echo those identified as key benchmarks in Frost &

Sullivan’s study last year (see the Green Religion’s “five commandments”). However, for the purposes of

this more quantitative exercise, “Structural Landscape” does not form part of our assessment criteria.

Instead, the comparative benchmarks are based on the following six parameters:

Operational efficiency – Reducing the environmental impact of operational activities through
•
more efficient processes and technology and alternative energy sourcing.

Supplier Management – The extent to which suppliers are encouraged/ required to have eco
•
credentials; efforts towards a zero waste supply loop.

Internal Initiatives – Reducing the environmental impact of the business as an enterprise
•
through more sustainable business practices, e.g. carbon management and waste
management.

Employee campaigns - Establishing an eco-corporate culture amongst employees;
•
encouraging behavioural change.

External public campaigns – Creating greater public awareness and promoting sustainability
•
practices through eco-programmes and targeted campaigns.

Products and Services – Offering products and services that are either more environmentally
•
friendly and/or providing solutions that translate to eco-efficiency - for both consumers and
enterprises.

Industry Initiatives/benchmarks – industry collaborations, involvement in voluntary bodies,
•
association with government agencies, and recognition by related regulatory units.

In addition, we have identified three parameters to provide a quantifiable point of comparison in terms of

recent performance and outstanding commitments. These are: carbon emissions, renewable energy,

and recycling. The variances in reporting formats for each of these quantitative parameters exemplify

the lack of industry standards, preventing an objective comparison. The absence of standards is

discussed further later in this study as a ‘burning issue’ as progress remains difficult to measure.

The underlying objective of the benchmarking exercise is not only to highlight the commendable

milestones of each operator but also to encourage further initiatives and catalyse change across the

value chain. As key industry players, service providers carry a significant burden of social responsibility.


Belgacom is engaged in efforts to remodel its operations to realize greater energy efficiency and control
OPEX. Its efforts could be considered to be careful and modest compared to other, larger European
operators. Its eco-sustainability focus is toward its internal operational efficiency, at present. The
strategy for making Belgacom “green” has been designed by a small group in the CSR team, with input
from the CEO and other executives. The policies are orchestrated and implemented by Belgacom
business units. All employees are strongly encouraged to participate in the company’s sustainability
measures. Belgacom intends to be a model of eco-sustainability before expanding external initiatives to
promote itself as “green”.

Quantifiable parameters
Emissions:
•
2006/7: 166,774 including vehicles (39,188), buildings (38,499), networks (89,087)
Recycling:
•
2006/7: 17,651- 14,507 tonnes
Renewable energy:
•
2006/7: 100% of electricity from renewable sources

Operational Efficiency
Network technology: 80% of energy consumed supports network and data centres. Free air
•
cooling systems support most mobile and fixed line base stations. Belgacom is currently
exploring the possibility of developing free air cooling systems for its data centres, through
collaboration with hardware providers. It is also investigating methods of making ICT and
network equipment more efficient through the use of standby and power off devices, as well as
“smart” equipment. Such technologies allow scaled down power consumption during low use
periods.
Renewable Energy: 100% of Belgacom’s electricity currently comes from renewable energy
•
suppliers and it has ambitions to produce much of its own electricity in the future. It claims that
25% of its premises are presently powered by solar, and it is in the process of installing solar
panels on its other buildings.
•
Supplier Management
Environmental standards for vendors: It is mandatory that all contracts and purchase orders
•
are in compliance with Belgacom’s Code of Ethical Purchasing. The enforcement of this is fairly
lenient, at present, however, and the company is still in the early stages of defining eco-criteria
for its suppliers.
Eco credentials: Ideally, the company expects its suppliers to maintain eco-sustainable
•
policies, however it has yet to refuse to do business with any supplier due to conflicts in
sustainability ethics.

Internal Initiatives
Carbon footprint management: Belgacom actively monitors the energy efficiency of its
•
operations. It currently practices a green car policy, and is investigating the practicality of using
electric cars in the future. The power infrastructure is not presently capable of large scale
electric car battery recharging; however the company hopes to achieve that ability once the
utility network is in place.
Waste: Policies include recycling and reduction of office waste, e.g. reduction of paper usage
•
and faxes. In 2007, 84% of purchase orders were sent out electronically, an increase of 29%
over 2006.

Internal employee campaigns
Programmes for responsible energy use CSR and sustainability awareness-raising
•
initiatives have been implemented, targeted at the company’s personnel. A six week road show
focused on the company’s green policies and included dialogues with employees regarding
ways to improve their environmental impact in the office.
Transport: Belgacom has instituted an eco-driving initiative that includes a 1-year training
•
programme for employees. It is also encouraging the use of public transportation by its
personnel. It has partnered with a Flanders public transport company to facilitate this
campaign.


Recycling: An organized recycling programme has been initiated in the company’s offices,
•
which includes paper, plastic and metal waste. It has also initiated a study to identify ways to
reduce packaging waste.

External public campaigns
The company reported in 2007 that 280,000 fixed line customers and 30,000 mobile customers
•
no longer receive bills through the mail.
Handset recycling: Belgacom has launched a handset recycling programme called RELOOP.
•

Environmentally friendly products and services
Existing services: Belgacom is currently looking into ways to transform its business solutions
•
(video conferencing, hosting and tele-working) to meet eco-sustainable criteria.
Future services: Belgacom has partnered with a Belgian utility company in a trial of 150
•
households (as well as its own offices), using GPRS technology that allows customers to view
their gas and electricity usage on a near real time basis. This improves energy awareness and
will allow customers to modify their consumption patterns. The company is also involved in the
e-health services market and is developing integrated e-prescriptions, remote patient
monitoring and mobile data cards used by ambulances. It is also involved in a study with a
hospital in Brussels that allows follow up appointments to be made online.
‘Green’ products The company is collaborating with suppliers who are developing
•
environmentally sound products.

Industry initiatives and benchmarks
Initiatives: Belgacom is in compliance with national and EU environmental standards. It is an
•
active member of ETNO and the Polar Foundation which is involved with climate change
issues.

BT is actively involved in promoting its image of being an environmentally friendly company and a
sustainability leader. Its strategy is largely focused on reducing its carbon footprint and improving energy
efficiency. The company has an external CSR panel of advisory experts, which provides guidance and
feedback on the company’s policies. It also has an internal CSR committee made up of personnel from
several of its divisions and business lines.

Emissions:
•
2007-08: 58% below 1996 level ie. 0.68 million tonnes – UK only
Target: 80% below 1996 level by 2016 – UK only
Recycling:
•
2007-08: 46% of waste recycled, (79759 tonnes of waste, of which 36937 tonnes recycled.) –
UK only
Target 2008-09: 50% of waste recycled. (excluding waste from the 21CN network programme)
– UK only.
Renewable energy:
•
2007-08 1129730 MWh (43%) worldwide
Target: Windmill farm plans to generate up to 25% (250 mW) of BT’s UK electricity
requirements by 2016.

Network technology: A focus of the BT strategy is its data centres. It is using “ fresh air
•
cooling” technology to improve energy efficiency in its use of electricity. BT has categorized its
network components as Red, Amber or Green depending on their energy efficiency. It plans to
purchase low carbon electricity and has contracts with companies in the UK, Belgium,
Germany and Italy.
Renewable Energy: Renewable energy is another major focus of the BT sustainability
•
strategy. It has purchased its own wind farm and plans to use renewable energy exclusively for
its operations in the future. The current project has a target of producing 25% of the company’s
UK electricity needs by 2016.


Supplier Management
Environmental standards for vendors: BT provides its suppliers with a list of eco-
•
sustainability standards and strongly encourages compliance in companies with whom it does
business. It has not refused to engage in contractual relationships with suppliers who do not
meet its standards, however its procurement process offers incentives that encourage
companies to provide energy efficient and environmentally friendly solutions.
Eco credentials: Suppliers are rated on a scale of 1-3, with 3 representing the best eco
•
credentials. While BT intends to limit its contracts to companies who have a rating of 3,
pragmatic concerns figure into its business relationships and choice of suppliers.

Internal initiatives
Carbon footprint management BT has significantly reduced its office space, as part of its
•
strategy to reduce its CO2 impact and to promote employee productivity. It has explored
reducing the number of trucks in its fleet by engaging in van sharing programmes, and it is
purchasing hybrid vehicles as it replaces older vehicles.
Waste: BT monitors waste production and recycling, with the intention of reducing non-
•
recyclable waste by 6% in 2008-09. In 2007-08, non-recyclable waste was 54% of its total
waste production, with 46% being recyclable.
Standardization: BT is ISO 14001Certified in the UK Ireland, Spain, Italy and Belgium.
•

Programmes for responsible energy use: The company has devised two internal
•
programmes to strongly encourage employees to be environmentally mindful. “Small Steps”
promotes energy efficiency at work and at home. “Ease the Squeeze” focuses attention on
green driving principles.
Transport: In 2008, BT has over 11,000 employees working remotely from home. Home-
•
based working and virtual meetings are strongly encouraged for their carbon emission reducing
aspects.
Recycling: BT has a well organized internal recycling programme and resource use reduction
•
campaign.

Bigger Thinking : BT offers a website that features sustainability subjects and is designed to
•
stimulate public awareness of environmental issues.
Collaborative campaigns: BT has partnered with eco-related agencies and foundations to
•
help create a greater impact in the sustainability arena. An example is an e-billing programme
where the company gave the amount of funds saved through paperless billing to the
Woodlands Trust in England. The trust used the donation to support their tree planting
operations.

Environmentally friendly products and services:
Existing services: The company is featuring its e-billing and video conferencing services as
•
eco-aware solutions to enterprise. It is also offering sustainability consultancy services to
enterprise and public organizations, based on its experience in energy and resource
optimization. It has been successful in promoting this aspect of its expertise and has gained
important clients, particularly in the US.
Future services: Several tele-medicine solutions are under trial.
•
‘Green’ products’. BT is offering a line of energy efficient home telephones, and had set a
•
target of energy efficient phones in 90% of its consumer product range by July 2008.

Initiatives BT is a member of the Global Compact and Green Grid, as well as numerous other
•
environmentally concerned organizations.
Sustainability Indices: The company has enjoyed a top position in the Dow Jones
•
Sustainability Index for eight years.


DT has been successful in implementing one of the most well organized and comprehensive eco-
sustainability programs in its internal operations. From that position of credibility, it has engaged its
customers in environmental awareness campaigns, encouraging them to adjust their behaviors to be
more energy efficient and eco-aware.

Emissions:
•
2006/7: from power consumption: 2,607,140 from heating consumption: 278,178 (metric tonnes
C02 eq)
Recycling:
•
2006/7: DT group in Germany recycles 98% of its waste
Renewable energy:
•
2008: The Group‘s entire electricity requirements in Germany are served by renewable energy

Operational efficiency
Network technology: DT has a subsidiary, Power and Air Condition Solution Management
•
GmbH & Co (PASM), which has the mandate to investigate ways for the company to operate in
more energy efficient ways, as well as increase the use of renewable energy. PASM is
developing more efficient air conditioning systems for DT’s data centres, utilizing new HVAC
technology. DT is replacing old network equipment with energy efficient versions and
increasing server virtualization.
Renewable energy: PASM and DT have the goal of 100% renewable energy usage in the
•
future. PASM is exploring the use of fuel cells and biogas, as well as geothermal.

Supplier Management
Environmental standards for vendors: DT provides its suppliers with stringent sustainability
•
standards and expects them to meet those standards. Suppliers who do not yet comply are
mentored by DT to improve their environmental and social standards. As of June 2007, 52% of
DT’s procurement (40 suppliers) met the company’s sustainability criteria.
Eco credentials of its suppliers are important but do not necessarily take precedence over
•
energy efficiency and cost efficiency.

Internal operations
Carbon footprint management: To facilitate reduction of the company’s operational carbon
•
footprint, DT conducts annual building energy audits, replacing inefficient equipment, as well as
evaluating space utilization. It uses electronic document management as much as possible.
DT’s vehicle fleet is fuelled by natural gas or alternative bio fuels.
Waste: Recycling is a backbone of the company’s operational sustainability policy.
•

Programmes for responsible energy use. DT has regular internal campaigns to focus
•
employee attention on eco-sustainability principles, and encourage awareness and behavioural
changes in both the office and at home.
Transport: Employees are encouraged to travel less and use public transportation. Remote
•
working from home, virtual meetings, car pooling and paper reduction are all platforms of the
internal campaigns. There is also a training program for energy efficient driving. DT is reducing
its fleet of vehicles.
Recycling: DT has a well organized recycling programme and specific criteria for office waste
•
and paper use. An internal handset recycling system is in place.

Campaign to enhance e-billing: DT has designed an electronic workflow and archival
•
process for incoming bills and records. One-off credits are offered to its customers as an
incentive to switch to online billing.
Handset recycling programme: This is usually a standard feature of T-Mobile’s operations in
•
Germany.


Existing services: The company offers a diverse range of products which meet and support
•
sustainable criteria. For example:
Audio and video conferencing solutions
•
Sinus series terminals (low energy consumption and climate neutral)
•
Route optimization applications for service technicians
•
Remote meter-reading applications
•
Telematics based solutions for logistics and fleet management
•
Telemedicine solutions for fitness and patient monitoring
•
‘Green’ products: One of the most innovative new products is DT’s solar powered handset.
•

Initiatives: DT is proactively involved with government, NGOs and other private organizations
•
to help set eco-sustainability standards e.g.:
- Global-e-Sustainability Initiative (GeSI)
- Global Round Table on Climate Change
- Promotion on SMART2020 Study (www.smart2020.org)
- ETNO Sustainability Working Group
- EU-CLG on climate Change

Sustainability Indices: Zurich-based rating agency Sustainable Asset Management (SAM)
•
has singled out Deutsche Telekom AG’s commitment to sustainability with a SAM Gold Class
(one of 5 out of 42 providers.) DT is also listed in the UK FTSE4Good Index.

France Telecom (FT)’s strategy is driven top-down and is carried out at multiple levels of the
organization, internationally. Carbon reduction and renewable energy sources are important elements of
FT’s eco-sustainability strategy. The company invests heavily in R&D and product innovation.

Emissions:
•
Target: Reduce greenhouse emissions per customer by 20% between 2006 and 2020
Renewable energy:
•
2006/7: 7% of the total energy from renewable sources

Network technology: FT’s eco-sustainability strategy has targeted its networks and data
•
centres. Its operational networks account for 69% of its total energy consumption, and the
company is replacing inefficient equipment with new energy efficient components; the plan is to
replace all inefficient equipment over a 4-5 year period. FT has patented a technology which
uses cool night air to cool equipment during the day, thereby reducing air conditioning usage. It
is involved in server virtualization with the goal of reducing the number of physical servers in
France by 40% by 2010. FT is also collaborating with the WWF to develop more efficient
devices.
Renewable Energy: FT has invested heavily in renewable energy sources, especially in solar
•
installations in off-grid, isolated locations. Its Oryx project was launched in 2007 in Senegal,
with 35 sites. The project will likely be expanded to include 500 new sites in the Ivory Coast,
Guinea, Madagascar and Mali by the end of 2009. FT’s mobile operations in the UK are driven
by 100% renewable energy sources.

Supplier Management
Environmental standards for vendors: FT has produced environmental and ethical
•
standards for its suppliers and collaborates with them to help them achieve those standards.
The company conducts assessments of its vendors and has a programme to formally evaluate


the performance of its supply chain in terms of eco-sustainability. Suppliers who do not comply
are asked to commit to a formal improvement plan.
Eco credentials: Although a strong emphasis is placed on a supplier’s eco credentials, FT
•
balances the requirements with the need for pragmatism.

Internal initiatives
Carbon footprint management: Employee travel has been minimized through adoption of
•
increased video conferencing. FT closely monitors its vehicle energy consumption and has
been investing in hybrid vehicles for its fleet.
Waste: FT has organized a “waste management workgroup” whose task is to specify
•
standards for the management of waste, in the absence of local regulations. The company
encourages employees to adhere to standards of low waste production and low resource use.
Standardisation: Implemented ISO14001 Environmental Management Systems as part of the
Group Environmental guidelines. A corporate framework has been developed to help country
businesses meet ISO 14001 requirements. It includes key indicators and processes, and is
backed by a sound implementation method.
FT measures its ISO14001 rate of certification (13% of Group activities in December 2007) and
ISO14001 rate of implementation for non certified activities (45% of Group activities in
december 2007). Spain is fully ISO14001 certified as well as Slovakia and Egypt. Poland is
certified for its mobile activities. Other programs are on going (Romania, Poland, Belgium etc)

Programmes for responsible energy use: FT has instituted numerous internal campaigns to
•
raise awareness of environmental issues and encourage changes in behaviour amongst its
personnel. Some examples of its campaigns and operational practices toward furtherance of
eco-sustainable principles are:
Since 2006, several campains focusing on “Green Gestures” were launched to create
•
greater employee awareness
Created an extranet group for allowing access to documentation on waste
•
Introduced a video conferencing service, “CoopNet”. This equipment has allowed the
•
company to reduce CO2 emissions by 34,000 tons.
Replacing older vehicles with low emission “clean” vehicles
•

Transport: Public transportation is encouraged in its employees and transport allowances are
•
offered. The company has initiated car pooling clubs and provides bicycles on site at several
locations.
Recycling: Initiatives range from general office waste to computer recycling campaigns. In
•
2007, 2993 tons of paper was recycled in the Group, compared to 746 tons in 2006.

Handset recycling programme: FT has an ambitious handset collecting and recycling
•
programme. In 2007, the company collected nearly 912,000 mobile handsets (695 189 in
2006). 80-95% of handsets can be recycled.
Campaign to enhance e-billing: Paperless, online billing is strongly encouraged by FT.
•
Media campaigns: FT has expanded its message reach by using additional media resources
•
beyond traditional marketing communications channels. Its goal is to create greater public
awareness and promote its image as an eco-conscious company. Additional resources include
celebrity endorsements as well as alliances with environmental regulatory agencies and both
private and public groups, such as the WWF. The latter alliance produced an initiative that not
only involved enhancing efficient energy consumption in network devices but also created an e-
billing campaign which led to almost 3 million customers switching to e-billing.
Sustainability Website: FT’s website features the company’s eco-sustainability vision and its
•
th
policies to support that vision. FT hosted an online screening of the film 11 Hour (La 11ème
heure), starring Leonardo di Caprio, to promote its environmental web site and increase public
eco-awareness. http://environnement.orange.fr/
Other initiatives: The company offers an “intelligent universal charger” which stops charging
•
when the battery is full. It has also lauched a campaign called “second life for the mobile
phone” where the company collects used mobile phones which are then refurbished and
resold to customers at affordable prices.

Existing services: In addition to enterprise solutions such as tele-conferencing and e-billing
•
which help reduce a company’s carbon footprint, FT has actively partnered with the French
local authorities to introduce a range of socially and environmentally responsible programmes.
Special focus has been placed on the Healthcare sector, e.g. remote patient monitoring
solutions, M2M applications, reliable and secure data networks, etc.


Future services: FT plans to continue to develop more sustainable products, for example
•
eco-friendly/climate neutral set top boxes.
‘Green’ products: The company’s alliance with the WWF is aimed at developing more energy
•
efficient products. One example is the first solar powered blue tooth head set.

Initiatives: FT is closely aligned with organisations such as ETSI to influence European
•
standards and ETNO to establish best practices. It is also engaged with several international
organisations and NGOs for the purpose of supporting its eco-sustainability strategy, and
commercial goals.
Sustainability Indices: Since 2002, FT has been listed on the FTSE4Good Index. In February
•
2008, FT was included in Sustainable Asset Management’s Silver Class and 2008
Sustainability Yearbook. France Telecom is also included in the ASPI eurozone as well as the
the Ethibel Indexes.

Telenor has had internal eco-sustainability policies in place for a long while. The company’s goals have
centred on enhancing cost efficiency in networks and ensuring affordable energy supplies through use
of renewable energy sources. Customer pressure and satisfaction play a significant role in shaping
Telenor’s policies, as consumers in Norway are particularly eco-conscious. The company has a goal of
being “Climate champions” within each of its markets. It is currently developing an environmental
advisory team, with members in each country, whose mandate is to identify local conditions of
environmental risk and opportunity. Presently, green products and services appear to be the least
developed aspects of its strategy.

Emissions:
•
2006: 68,967 C02 tonnes globally
Recycling:
•
2006: 1,239 tonnes of waste in Norway
Renewable energy:
•
2008: 97% of energy from sustainable sources in home market (Norway), and approximately
35% at group level.

Network technology: The company’s main focus is on improving the energy efficiency of its
•
networks, which comprise approximately 70% of its total energy consumption. It is involved in
replacing old equipment and improving its data centres. Telenor is currently partnering with
Nokia Siemens Networks toward furtherance of these goals.
Renewable Energy: The company is substantially invested in a wide range of renewable
•
energy sources; wind, solar, fuel cells, water and geothermal energy. It is currently conducting
trials in several countries, testing hydrogen, wind and solar energy as power sources for base
stations. In January 2008, a solar-electric hybrid system was installed in Pakistan to power a
repeater.

Supplier Management
Environmental standards for vendors: At present, Telenor does not have an environmental
•
aspect to its RFQs. The Environmental team is currently working with the procurement
department to develop mandatory criteria to be enforced next year.
Eco credentials: Despite the lack of formal criteria, the company has suggested that suppliers
•
are expected to deliver energy efficiency benefits.

Internal operations
Carbon footprint management: Telenor Norway closely monitors energy consumption in its
•
buildings. The company launched a pilot project which used a web-based system to measure
the energy consumption of the 50 largest Telenor buildings in Norway. Data is collected from
metres which measure the consumption of electricity, oil, gas and district heating. Office space
optimisation is also a key initiative, with the headquarters of the company in Oslo designed as


an open plan layout, reducing the need for office space by 40%. More than 50% of the energy
required for heating comes from heat pumps that are powered by energy generated from the
nearby sea. In the summer, the system is reversed, using the sea water as a source for
cooling. An automatic light control system has also been installed. In 2003 and 2007,
environmental considerations were key in the purchase of new vehicles for Telenor’s fleet.
Employees are offered incentives to use public transport. Remote working and virtual meetings
are also encouraged.
Waste: Waste separation and residual waste management is carefully managed in
•
Norway.Telenor plans to launch group wide environmental KPIs in 2009

Programmes for responsible energy use: In 2007, Telenor launched a “Climate Change
•
Programme” which encourages all of its employees and their families to participate in practical
ways to tackle climate change. Another more recent programme is the ‘’Way of Work’’
campaign.
Transport: Telenor has introduced bonus system for employees who choose to drive a more
•
environmentally efficient company car.
Recycling: The company’s policy is to continuously increase the percentage of waste recycled
•
and reduce resource usage.

Handset recycling programmes: Handset recycling programmes have been instituted in
•
Hungary, Serbia and Norway. Telenor is planning comprehensive, system-wide operations to
collect used handsets. Locally, Telenor has engaged with the Norwegian humanitarian
organisation FAIR to encourage computer recycling.
Campaign to enhance e-billing: This is a standard feature of Telenor’s services.
•

Existing services: A range of conferencing and collaboration tools are currently offered but
•
not yet marketed as eco-sustainable.
Future services: Telenor plans to launch telemedicine services, such as remote patient
•
monitoring, next year, as well as E-learning services for the education sector.
‘Green’ products’: None, presently.
•

Initiatives: Telenor is a member of ETNO.
•
Sustainability Indices: The company was ranked no 1 in the Dow Jones Sustainable Index in
•
2007.

Italy’s domestic consumer market has relatively lower eco-sustainability expectations; therefore Telecom
Italia (TI)’s strategy focuses primarily on cost efficiency, rather than in promoting an eco-conscious
image. Energy efficient network equipment is a key element in its strategy, as is compliance with EU
legislative mandates. Reflecting the company’s economic focus, TI’s sustainability advisory team is a
division of the Finance Unit, and is responsible for designing and driving the sustainability agenda
across the entire TI Group.

Emissions:
•
2007: Total CO2 emissions (tonnes): 1 046 498, up 1.63% from 2006 for Telecom Italia S.p.A
2007: Total CO2 emissions (tonnes): 1 164 750 for the TI group
Recycling:
•
2007: Ratio between recycled waste and total waste 97.89% (Telecom Italia S.p.A) (up 3%
from 2006) Data does not include removed telephone poles.
Renewable energy:
•
2007: 1,5% of electricity from renewable certified resources


Network technology: A programme to replace old equipment across the network is expected
•
to take place over the next 2-3 years to increase energy efficiency. This will involve multiple
operations and stages, including installation of energy efficient base stations and free cooling
plants as well as the replacement, rationalisation and optimisation of conditioning plants. TIM
Brasil, for example, is installing automatic lighting and presence sensors as well as introducing
electrical circuit sectioning and replacing incandescent lamps with fluorescent ones. Data
centres will also be made more energy efficient.
Renewable Energy: TI is planning to increase the use of renewable energy sources to ensure
•
a more reliable and cost efficient energy supply. The company is investigating renewable
energies such as solar, wind power, hydro electric and geothermic energy.
Supplier Management
Environmental standards for vendors: There are no mandatory environmental requirements
•
in TI’s current RFQs but vendors with strong eco credentials are likely to be in a stronger
position.
Eco credentials: The RFQ has a self assessment section for green vendor criteria. Meeting
•
the criteria is not currently a requirement, however it allows the supplier to gain points in an
assessment system which allows a supplier’s bid to be further considered.

Internal Inititatives
Carbon footprint management: TI closely monitors CO2 emissions from its vehicle fleet and
•
this is reflected in its KPIs. The company is gradually replacing older, less efficient vehicles
with energy efficient ones.
Waste: The company currently monitors the amount of hazardous and other network waste
•
produced.

Programmes for responsible energy use: TI has initiated several internal campaigns aimed
•
at its employees to increase awareness of its sustainability programmes. These include a
monthly newsletter and an internal TV channel which promotes sustainability issues and
practices across the group.
Recycling: Waste management is also reported as part of the company’s KPIs; campaigns
•
promoting office waste reduction and recycling are ongoing.

External campaigns:
Campaign to enhance e-billing: This is promoted as a convenience for the customer and as
•
a ‘green’ initiative.

Existing services: TI promotes remote/tele-working when applicable and convenient, however
•
these have not been branded as being specifically eco-sustainable.
Future services: As part of the company’s mission towards greater sustainability, TI plans to
•
develop more carbon neutral products and services, such as telemedicine videoconference or
infomobility, that minimise environmental impact through the reduced needs for transferring
people and goods and related emissions
‘Green’ products: TI offers energy efficient consumer products, such as broadband modems,
•
routers and cordless telephones, however these have not yet been marketed as eco-
sustainable.

Initiatives: TI is heavily involved in external legislative lobbying to influence eco-sustainability
•
standards. TI chairs the Sustainability working group and the Energy Efficiency working group
within ETNO and is involved with GeSI and major academic insitutions. TI is committed to
demonstrating how the telecommunications industry can help reduce carbon emissions and be
part of the solution rather than the problem.
Sustainability Indices: TI is a member the Ethical Sustainability Index (ESI) and is also listed
•
on FTSE4Good and Dow Jones Sustainability Indexes.


Due to the large number of markets in which it operates, Vodafone has a somewhat different eco-
sustainability strategy than most other major service providers. Its strategy is developed at the Group
level but is implemented at the local level depending on the conditions in each of its country markets.
For example, in Western Europe, environmental issues are most highlighted, whereas in Eastern
Europe social concerns are more important. Vodafone’s CSR team creates initiatives and then turns the
implementation of them over to the local operational teams. Generally, there is a focus on energy
efficiency, using renewable energy sources, and operating costs reductions. A key focus is reducing
operational costs in its base stations through the use of energy efficient technologies.

Emissions:
•
2006/7 :CO2 emissions from network operations and offices (millions of tonnes) (direct and
indirect) 1.23; global (excluding transport)
2007/8: CO2 emissions from network operations and offices (millions of tonnes) (direct and
indirect) 1.45
Target: Cut emissions by 50% by 2020 – global; 40% reduction in network energy CO2
emissions per MB traffic by 2011
Reuse and Recycling:
•
2006/7: Reused and recycled 96.6% of network waste – UK
2007/08: Collected 1.3 million handsets for reuse or recycling globally. Handsets reused as a
percentage of handsets collected (%) 61.5
2007/2008: Reused or recycled 96% of network equipment waste, amounting to 2,611 tonnes
of non-hazardous waste, and 9,027 tonnes of hazardous waste globally
Target: Maintain reuse and recycling rates for network waste at or above 97% in the UK.
Send for reuse and recycling 95% of network equipment waste during the year. (March 2009.)
Collect a further 1.5 million handsets. (March 2009.)
Renewable energy:
•
2006/7: 17% of total energy were from renewable sources

Network Technology: Vodafone has a strong focus on reducing energy and environmental
•
costs of its network equipment, which account for 80% of its emissions. For example, Vodafone
Spain halved the energy used by its base stations by upgrading power amplifiers and installing
remote radio heads, which effectively doubled the previous power output. The innovative
solution was applied across 655 sites in 2006-2007, and will be implemented in base stations
across the entire Group. The company is exploring energy efficiency in its methods of cooling
base stations, and is engaged in a trial project to install “free cooling” technology that uses
fresh air to cool network equipment, as the default option in new base stations. Other Network
Energy Saving Initiatives include deactivating unused rectifiers, categorising sites to optimise
energy usage, remote monitoring and measurement of energy.
Renewable energy: Vodafone is trialling ways to reduce diesel fuel consumption at sites in
•
Egypt and Albania. The increased use of renewable energy is an important part of the
company’s long term eco-sustainability strategy, however that focus is not at the forefront at
this time. The varied geo-political aspects of the countries which Vodafone serves add a
complexity to the company’s situation that is unique to most major service providers.

Supplier Management
Environmental standards for vendors: Vodafone has standards which it expects its suppliers
•
to meet, including resource efficiency (e.g., water used in manufacturing), emission
minimisation, environmental performance of products, etc. It works with vendors who do not
initially meet the standards, to help them improve their environmental impact.
Equipment: The company places emphasis on the emission levels of power amplifiers and
•
radio heads and strongly encourages such equipment manufacturers to improve the energy
efficiency and eco-standards of those products.
Eco credentials are assessed through the self-assessment questionnaire that Vodafone send
•
out with their RFQs.


Carbon footprint management: Vodafone encourages less travel and more video
•
conferencing in order to reduce costs and C02 emissions. In 2007-2008 the company
conducted environmental audits in 10 operating companies.
Waste: The company aims to maintain reuse and recycling rates of hazardous and network
•
waste at or above 97%.
Standardization: Vodafone is ISO 4001 accredited in the UK..
•

Programmes for responsible energy use: Vodafone’s in-house strategy includes reducing
•
energy consumption through a campaign to encourage employees to be more aware of simple
things they can do to cut electricity and gas usage in the workplace. However, there are few
publicised examples of these initiatives taking place.
Recycling: Goals have been set for general office waste. A programme has been introduced
•
to reduce office paper use at Newbury and Theale offices by 28% by March 2008 compared to
2005/6 levels.

Handset recycling programme: Vodafone is planning to expand its Fonebak programme
•
(handset recycling programme) among its top 50 customers, with the goal of collecting
275,000 handsets by March 2008. Sixteen of its local operating companies already have
handset reuse and recycling programmes in place. Vodafone Turkey is launching such a
programme. The programmes include incentives such as handsets in exchange for airtime, or
a donation to charity.
Campaign to enhance e-billing: Online billing is a promoted service.
•
Within a series of papers entitled ‘Vodafone Corporate Responsibility Dialogues’, Vodafone
•
invites consumers to provide feedback in relation to its CSR approach.

Existing services: Vodafone has not yet branded any of its services as “green”.
•
Green products: The company recently launched a solar powered handset charger in Holland,
•
Portugal, and several other countries. In general it does encourage customers to be ‘green’ but
thus far there are only limited examples of eco-services.

Initiatives: Vodafone is a member of the Global e-Sustainability Initiative (GeSI), the World
•
Business Council for Sustainable Development, the Corporate Leaders Group (climate
change), as well as the Mobile Phone Partnership Initiative (handset recycling and e-waste.)
Sustainability Indices: The company has been ranked among the top five companies in the
•
Accountability Rating for the last three years and is included in the FTSE4Good and Dow
Jones Sustainability Indices

Swisscom has operated a systematic environmental management system for over ten years. For the
company, there are three main categories of resources of operational significance: infrastructure
resources (construction materials, electronics and cabling), consumables (paper and water, etc.),
energy resources (electricity, heating and vehicle fuels); the third being the most important. Green
products and services are gradually becoming more of a focal point. A central environmental team
draws up the projects and implements these together with the operational units. At the Group level, an
Environment Committee operates in which all environmental managers of the certified Group companies
and organisational units of the Group are represented.

Emissions:
•
2007: 25,736 tonnes direct CO2 emissions
Target: Swisscom has committed to cutting its CO2 emissions by 17 percent or 5,700 tonnes
between 2002 and 2010.


Reuse and Recycling:
•
2006/7: total waste
Renewable energy:
•
Target: 17% greater energy efficiency

Network Technology: Electricity makes up 80 percent of the energy used by Swisscom,
•
followed by heating fuels (heating oil, gas and district heating) and vehicle fuels (petrol and
diesel) in second and third place, respectively. Swisscom aims to increase its energy efficiency
by 17 percent between 2002 and 2010, a target agreement that Swisscom reached with the
Energy Agency for the Economy (EnAW). Swisscom particularly sees room for improvement in
its telecommunications networks and IT (low power modes for broadband and mobile networks,
optimised cooling, use of waste heat). Its pioneering MISTRAL project uses fresh-air cooling as
an alternative to air conditioning for telecommunications installations. Once implementation is
complete (scheduled for the end of 2012), it is predicted that MISTRAL will save 10% on
electricity. Swisscom was also Europe's first telecommunications company to sign a code of
conduct governing the energy consumption of broadband equipment.
Renewable energy: Swisscom purchases around 13 million kWh of naturemade star eco-
•
energy each year. This means wind power from Mont Crosin, solar power from a variety of
solar plants and hydroelectricity from naturemade star-certified hydroelectric power stations.
Swisscom also sits on the board of the label's supporting institution, the Association for
Environmentally Sound Electricity (VUE). In addition, Swisscom apprentices are constructing
solar installations on Swisscom buildings. Four of these installations have been constructed to
date and more will be added in the next few years. Swisscom draws more green energy from
wind and solar power than any other company in Switzerland.
•

Carbon footprint management: Swisscom makes eco-conscious investments in its vehicles
•
(types such as hybrids, natural gas-powered vehicles, etc.) and buildings (new heating
concept). In 2007, Swisscom began operating eleven natural gas-fuelled cars and 35 hybrid
vehicles. Hybrid vehicles have proven particularly efficient and the number of hybrid vehicles in
the fleet is expected to grow in the coming years (to several hundred).The consumption of
heating fuels dropped in 2007 (by 3% below the previous year level), totalling 213 terajoules.
This decrease is mainly the result of the ESPACE project (optimisation of office building
space). Swisscom is looking into utilizing waste heat from buildings (in particular data centres)
for other purposes. The company is currently investigating whether the waste heat generated
by the Zollikofen computing centre could be utilised to feed an interconnected heating network
– this could meet the entire heating needs of several major companies and residential
buildings. Four Swisscom sites (Gossau, Ostermundigen, Worblaufen and Zurich-Binz) have
been awarded the label quot;nature parkquot; by the Nature & Business Foundation which recognises
their contribution to the environmental sustainability of work locations.
Waste: The volume of waste produced by Swisscom fell in 2007 to 1,265 tonnes. Swisscom
•
uses the Swiss Waste Exchange which is a platform for buyers and sellers of waste.
Approximately two-thirds of its waste is recyclable– including metal (primarily from cables),
paper, glass, PET etc. In terms of volume, hazardous waste is of ‘minor importance’ for
Swisscom in terms of volume. In 2007, this comprised 12.8 tonnes, mainly comprised of
batteries and fluorescent lighting tubes. Swisscom’s total consumption of paper decreased
from the previous fiscal year, by 6.1% in 2007. In the same period, office paper usage
decreased by 25%.
Standardization: Swisscom was the world's first telecommunications company to be certified
•
to the environmental standard ISO 14001.

Programmes for responsible energy use: employees can now read about the company’s
•
environmental activities in regular newsletters as well as on the intranet and in the staff
magazine. Swisscom’s environmental management group publishes an environmental blog
which is accessible both internally and externally. Employees are encouraged to participate in
WWF’s biodiversity conservation project SMARAGD. Swisscom pays 50% of the cost for time
spent on such deployments, while the employees themselves pay the other half. Biking to work
is also encouraged.

Handset recycling programme: Customers can take their used devices back to Swisscom,
•
which recycles phones via the Solidarcomm project. This project aims to combine ecological
and social benefits by sorting and reconditioning phones and giving part of the profits to


charities. Products are priced in such a way that customers pay an advance recycling fee when
they purchase new equipment, which ensures that the used products are properly recycled.
Campaign to enhance e-billing: Electronic billing has been introduced.
•
Swisscom has an environment website which is aimed at providing dialogue with residential
•
customers.

Existing services: Swisscom has labelled its eco-sustainable services as ‘Green services’.
•
The company is in the early stages of developing an extensive portfolio. It currently offers
Teleworking, Conferencing services (teleconferencing and webconferencing), and Hosting
(outsourcing IT infrastructure). Swisscom supports the Swiss National Park by providing
technical solutions, such as an SMS service and the interactive Webpark walking guide. It is
one of the main sponsors of the new national park centre in Zernez.
Green products Swisscom has identified that demand in the home market is particularly high
•
for modems and set-top boxes with reduced standby power consumption. Swisscom signed a
Code of Conduct governing set-top boxes at the Swiss Federal Office of Energy and has set its
own goals higher than these. Swisscom, in collaboration with Swissvoice, has launched a
service called ECOMODE – the designation for a line of low-radiation cordless telephones
whose transmission signals are interrupted as soon as the handset is replaced on the base
station. Low-emission DECT telephones are Swisscom's first marketable quot;green productquot;.
Swisscom hopes to roll out additional products and use a leaf-shaped symbol to label its green
products.


Initiatives: Swisscom is a member of ETNO, Sustainability Working Group and is signatory to
•
the Sustainability Charter. It also is a partner with ÖBU (Swiss Association for Environmentally
Conscious Management), the Association for Environmentally Sound Electricity (VUE) and
EnAW (Energy Agency for Industry) which has provided a universal target agreement for CO2
reduction and increased energy efficiency. Swisscom also supports the principles of the Swiss
Code of Ethics and bases its reporting on the Global Reporting Initiative (GRI). It is a partner of
the WWF and sponsors the GLOBE environmental school project. Only Swisscom and TDC
have signed up to comply with the European standards for energy efficient equipment.

TeliaSonera's own environmental work is mainly connected to its telecommunications networks. Energy
issues in general and CO2 in particular are issues to which TeliaSonera wants to pay specific attention.
Each profit centre defines its environmental programme with defined focus areas, objectives, specific
goals, actions and indicators based on the environmental aspects and stakeholder demands specific to
its own market. TeliaSonera introduced CSR reports in 2004, indicative of the fact that previously most
Scandinavian countries didn’t place the same emphasis on reporting but comply with a much more
extensive legislative system.

Emissions:
•
2006: 155,906 metric tonnes CO2 equivalent (Sweden, Finland, Lithuania, Denmark and
Norway)
Renewable energy:
•
2006: approximately 58% of the energy used was from renewable sources.

Network Technology: TeliaSonera has conducted life cycle assessments for many of its
•
telecommunications services
Renewable energy: In Finland, about 10% of TeliaSonera’s total electricity consumption is
•
generated by wind power, and electricity from renewable sources (water, wind and biomass)
accounted for 72% of total electricity consumption (2006). In Sweden, TeliaSonera has piloted
fuel cells in telecom exchanges (2006). The electricity consumption of the operations in Norway
are CO2 neutral, since the electricity in Norway is produced totally by water power.


Carbon footprint management: Between 2001and 2006 TeliaSonera increased the use of
•
virtual meetings by 67% and reduced business travel by 30% in Sweden. There was also a
50% reduction in office space in the same year. In Denmark all light fittings were replaced in its
facilities with energy-saving alternatives, reducing electricity consumption from lighting by 67%
(2006).
Standardization: TeliaSonera Sweden’s environmental management system (representing
•
40% of the Group by turnover) is certified to meet the international standards ISO 9001 and
ISO 14001. Further certification is underway.

Programmes for responsible energy use: The company promotes the use of tele-and web-
•
meetingstocut travelling costs, increase efficiency and reduce environmental impacts. Meeting
organisers are obliged to consider the best meeting format by taking cost and environmental
issues into account based on the geographical locations of participants.
Recycling: In Denmark, all the printers are default set to print on both sides of paper, which
•
reduced office paper use by around 40% (2006).

Existing services: TeliaSonera sponsors R&D to facilitate the use of telecommunications
•
services for sustainable development.

Industry initiatives and benchmarks.
Initiatives: The company has been a member of ETNO since 1996. TeliaSonera is also one of
•
the partners in the centre of excellence established in Sweden in 2006. The Centre for
Sustainable Communications, co-ordinated by The Royal Institute of Technology in Stockholm,
aims to create and develop new, innovative tools and methods for communication.
Sustainability Indices: In 2006 TeliaSonera was listed in the Dow Jones Sustainability Index.
•

The Future is Green

It is clear from the profiles above that the telecoms sector is rapidly developing in terms of its eco-

sustainability strategy. Over the past 12 months, operators have exhibited a more concerted effort to

formalise an eco-sustainability strategy and framework. This is also evident through comparison of our

findings in last year’s study. Indeed, some are now further ahead of others, but all operators profiled

have demonstrated a strong commitment to addressing environmental issues. The various implicit and

explicit drivers see some operators setting themselves apart from others in certain areas. In the case of

renewable energy, for example, national socio-economic factors clearly play a strong role in the

consumption of renewable energy, as illustrated in the diagram below.


Chart 1.5 : The Renewable Race

Only in Germany

0 20 40 60 80 100
% % % % % %
Percentage (%)

Source : Frost & Sullivan, 2008

As eco-strategies become ever more sophisticated, the bar will continue to be raised. For example,

whereas a few years ago e-billing or handset recycling programmes would have singled out an operator

as a leader in the field, these initiatives are fast becoming common practice. The industry must continue

to research and implement innovative ways of improving eco-efficiency. Moreover, a move to share best

practices is particularly important. Although a number of Scandinavian and German operators tend to

shy away from blowing their green trumpets, highlighting best practices will help the industry move

forward. This ‘modesty’ is perhaps largely due to the fact that sustainable growth is very much ingrained

as part of the business DNA in those countries, a condition which will hopefully be true of other

European operators in the near future.

Prescriptions for an Eco-sustainable Industry

This section of the study introduces a few concepts/business practices that lend greater environmental

sustainability. This is followed by a non-exhaustive selection of industry best practices, which conclude

the study.

Supply Loops

Expectations are rising for the ICT industry to ‘step up to the mark’. It is only through sustaining an

ambitious outlook that telecoms will be viewed as an industry that engages with eco-sustainability in a


dynamic way. As eco-sustainability continues to progress, the need to implement further measures

which demonstrate a deeper commitment to the environment will grow simultaneously. One example of

an initiative which could push eco-sustainability in industry forward is that of supply loops. In comparison

to the traditional supply chain, where waste is an inevitable by-product of any process, supply loops put

mechanisms in place which eliminate that by-product. In turn, companies are able to operate to their

maximum eco-efficiency.

One definition of a supply chain is as follows:

[…] a network of facilities that procure raw materials, transform them into intermediary goods and then
12
final products, and delivers the products to customers through a distribution system.

In this process, the end product is largely irrelevant to supply-chain managers. However, supply loops

‘divert end-of-life products from landfill and reprocess these products, their components or their
13
materials into secondary resources which replace primary resources in forward supply chains.’ This is

illustrated in Chart 1.6 below.

Chart 1.6: Supply Loop Illustration

Raw Primary Component Final Product
materials materials product sale and
mining production manufacture assembly delivery

Materials Component Product Product
re- re- re- demand &
processing processing processing use

Eol product End-of-life
collection product
& inspection disposal

Source: Reuse and Recycling: GSCM, ‘From Supply Chains to Supply Loops’, Spring 2007

12
Lea & Billington, cited in GSCM ‘from Supply Chains to Supply Loops’ (Spring 2007.)
13
Ibid.


A product within a supply chain would follow the blue path and terminate at the end of the black path,

whilst a product within a supply loop would continue onto the green path, thereby forming a ‘circle’. As

the red lines on the diagram indicate, the theoretical efficiency of a supply loop can be constrained in

practice, when it is not able, for technical or economic reasons, to reprocess all targeted end-of-life

products into secondary output that is marketable at above-cost price. Limitations could include: limited

collection of end of life products, limited feasibility of reprocessing, limited market demand for the

reprocessed secondary resources. However, regardless of these recognised ‘kinks in the loop’, with

enough collaboration, this mechanism has the potential to transform current supply chains into more

eco-efficient supply loops.

Addressing the entire lifecycle

It is within product lifecycle analysis that most lobby groups find room for critique. In their most recent

report, Greenpeace noted the ‘lack of a comprehensive lifecycle approach’ within ICT, highlighting it’s

centrality in the battle to further reduce environmental footprint upstream, and extend the lifespan of
14
products downstream.

A point most effectively articulated by Greenpeace related to the limited lifespan of products themselves.

Of course, the switch from products with a limited lifespan (planned obsolescence) towards long-living

goods is not one which will come easily. It is, in fact, the consumer who has to take accountability for the

high replacement rates of devices such as mobile phones, laptops and PCs. Hopefully, as the consumer

demand for truly ecologically sound products increases, so to will the pressure for companies to provide

upgradeable goods with extended warranty periods and long availability of component parts. Moreover,

other issues, such as the need to standardise chargers and peripherals, will become linked to eco-

efficiency, rather than just practicality.

With respect to production, there is rising demand for an industry-wide standard that takes into account

the use of energy and natural resources across the entire chain of production. Across the board,

whether in relation to mining, manufacturing, distribution, or end-of-life, a transparent and truly holistic

approach to eco-sustainability is being called for – and it is a call which will have to be answered.

Commendable amongst the operators profiled is Vodafone’s life cycle perspective of the environmental

impacts of the mobile industry, as depicted in Chart 1.7 below.

14
Greenpeace ‘Searching for Green Electronics’, March 2008.


Sustainability in Telecoms

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