corporate responsibility - the bt story on carbon reduction
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Corporate Responsibility - The BT Story on Carbon Reduction
Janet Blake
Head of Corporate Responsibility Engagement
April 2010
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Diverse Views of Top-of-Mind Definer of CR
1t. For you to consider a large company responsible to society, what are the most important things it should do? Anything else?
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*Net ratings represent “Among the very best” and “Above average” minus “Below average” and “Among the very worst.”**Tracking countries include Canada, Chile, China. France, Germany, Italy, Mexico, Nigeria, Russia, South Korea, Turkey, the UK, and the USA. South Korea not asked in 2003.Asked of half of sample in 2001, 2003, 2007, and 2009
10t. Please rate each of the following types of companies on how well they fulfill their responsibilities to society. Compared to other types of companies, would you say [INSERT COMPANY TYPE] are…?
Perceptions of CSR performance of most industry sectors are declining
CSR Performance of Industry Sectors, Net Ratings,* Average of 14 Tracking Countries,** Decreases: 2001–2009
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Consumers are increasingly punishing companies seen as Socially Irresponsible
“Have Done,” Increases: 1999–2009
46t. In the past year, have you considered punishing a company you see as not socially responsible by either refusing to buy their products or speaking critically about the company to others?
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Context – BT’s contribution to the big global issues
Rapid economicgrowth in emerging
markets
Resource shortages including water scarcity
Climate change and rising energy costs
Poverty, ageing population and a risein chronic disease
Population growthUrbanisation and migration
ICTA key enabler
BT products andservices
People, economies, the planet
Benefit
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Our Corporate Responsibility strategy
1. BT is a responsible& sustainable business
2. Helping tackle climate change
3. Enablingskills for an inclusive society
4. Creating sustainable customer solutions
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CR at the heart of BT
Embedding sustainability into
business processes
CR leadershippanel - guidance and advice
Business principles and strong values
Responsible financial management
Established supply chain management programme
Board leadership, governanceand risk management
Committed to getting it right for our customers
Maintaining momentum onworld-class CR performance
CR KPI’s embedded into BT’sannual report and accounts
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CR contributes to BT’s business performance in 5 key areas..…
• Risk: 7 key CSR risks managed: breach of integrity, climate change, diversity, health & safety, outsourcing, privacy and supply chain working conditions
• Brand & Reputation: Customers who believe we take responsibility to society seriously are 49% more likely to be ‘very’ or ‘extremely satisfied’ with BT
• Cost Reduction: £400m in environmental savings since 2005 (through productivity gains and direct savings to the bottom line) to March 09
• Employee Motivation: 69% of our employees say that knowing about BT’s social responsibility activities makes them proud to work for BT
• Marketplace Innovation: The quality of our CSR performance separates us from our competitors and supported bids worth £1.9 billion in 08/09. More and more companies are asking for CR credentials and the % weighting can be up to 15% – 20%
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Environment & climate change
BT – significant milestones since 1991
Base year for our carbon reduction programme
1997
Set first carbon reduction target
1992
UK-wide EMS certified to ISO14001 – international standard for EMS
1999
ISO14001 certification
Set up first EMS (Environmental Management System) in the UK
1991
Sign world’s largest contract for the supplyof ‘green’ energy with nPower and British Gas
2004
Launch climate change strategy
Announce plans for wind farm project
2007
Announce completion of solar photovoltaic system at HQ in El Segundo, California
2009
First company to achieveWWF One in Five Challenge. We reduced employee flightsby over 20% in 1 year
Today
Set new target to reduce carbon intensity of our business by 80% by 2020
2008
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Our Challenge: BT’s global carbon footprint 08/09 = 900,000 tonnes
Data supplied represents UK splits
Our largest carbon footprint is in the UK:
• BT consumes 0.7% of the UK’s total power• We have reduced its UK carbon footprint by 58%*• We aim to reduce carbon emissions in the UK by 80% reduction by 2016*
*based on the 1996 figure
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But….Growth in services drives ICT energy consumption
Today Increase Future
Digital World &Fast Broad BandTV via internet
Data Centres for customersTenants in BT buildings
Reduction
Migration to 21 Century Network expand
Energy efficiency programmes
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Strategy and Policy
Operations and Projects
Capital - Energy Saving
Energy Supply and Data Mgt
Energy and Carbon Services
Wind for Change Project
Energy Efficiency
Generate Renewable
Energy
Purchase Low Carbon
Energy
Established an Energy and Carbon Unit to focus action
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Climate change programme – reducing BT’s carbon footprint globally
• Visionary commitment to reduce the carbon intensity of our global business by 80 % by 2020
• 43% global carbon intensity reduction so far
• Our top actions:
– 41% of UK energy sourced from renewable resources
– Conferencing in BT helped prevent the emission of 50,000 tonnes of carbon in 2008/09
– Global Energy Savings Campaign saving 75,000 tonnes and £15m by 2011
– Rolling out ISO14001 accreditation globally
– Data centre power
– Travel and Commercial Fleet
– Waste to landfill (50% this year)
• Securing future energy supplies
– Wind farm project
– El Segundo solar panels
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Climate change programme – influencing our suppliers
• Responsible purchasing – over £8.6 billion pa spend
– BT buying power
– Sourcing with Human Dignity
– Embedding energy efficiency in buying decisions
– Assessed 63 suppliers on their climate change actions
• Long-established supply chain management programme
– Meet high standards on human rights, employment and environmental practices
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Climate change programme – engaging our employees
• 20% of our global workforce to be actively involved in carbon reduction initiatives at home and at work by 2012
• Initiatives include:
– Carbon Clubs – more than 130 have been established worldwide to date
– New Carbon Community launched – over 2,500 participants
– BT Volunteering Programme – includes 3 paid days pa with climate & environment charities
– Global Energy Saving Campaign to reduce 75,000 tonnes of CO2 and £15m by 2011
– Car-sharing schemes and Cycle Fit initiative launched
– Fuel Efficient Driving
– Living Lightly pledges – over 9,500
– Green Basket Offers for employees
– Newsletters, Blogs, Competitions
• More than 7,000 of BT employees now actively engaged in carbon reduction activities
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Engaged Employees are more productive
• 75% of employees said they are taking action to help BT reduce energy usage
• The top CR activities employees say BT should support are
– saving energy
– reducing BT’s environmental impact
• Over 50% of employees say BT’s CR activities are a factor in them continuing to work for BT – higher amongst graduates
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The ICT contribution to emissions savings - SMART initiatives
While the sector plans to significantly step up
the energy efficiency of its products and
services, ICT’s largest influence will be by
enabling energy efficiencies in other sectors, an
opportunity that could deliver carbon savings
five times larger than the total emissions from
the entire ICT sector in 2020
While the sector plans to significantly step up
the energy efficiency of its products and
services, ICT’s largest influence will be by
enabling energy efficiencies in other sectors, an
opportunity that could deliver carbon savings
five times larger than the total emissions from
the entire ICT sector in 2020
SMART 2020: Enabling the low carbon economy in the information ageThe Climate Group
SMART 2020: Enabling the low carbon economy in the information ageThe Climate Group
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In Summary
• We all face big global sustainability issues
• Climate Change is one of the top 7 risks for BT. Mitigation is key for operational resilience
• Society and consumer expectations on business are rising
• We see clear market advantage from a leadership position in CR (£1.9 billion of new business had CR as decision factor)
• Brand and Reputation can be built (and lost?) on CR
• We have made a visionary commitment to reduce the carbon intensity of our global business by 80 % by 2020. We have achieved 43% global carbon intensity reduction so far
• Our systemic approach has enabled £400m in environmental savings since 2005 (through productivity gains and direct savings to the bottom line) to Mar 09
• ICT is a key enabler for carbon reduction and presents an opportunity within a business to drive change
