CSI Target
Chris Tuppen
Chief Sustainability Officer
BT’s green path
•
BT consumes 0.7% of the UK’s total
power
•
BT has reduced its UK carbon footprint
by 58%*
1.6 M
Tonnes CO2
•
•
BT aims to reduce its UK carbon
emissions by 80% by 2016*
0.6 M
Tonnes CO2
0.3 M
BT aims to reduce its carbon emissions
intensity Globally by 80% by 2020*
Tonnes CO2
1996
•
CSR and customer benefits alongside a
key business benefit – cost reduction
*based on the 1996 figure
2006
2016
50% reduction on 1990 levels by 2050
80
CO2e (Gtonnes)
70
60
Absolute CO2
reduction target
50
40
30
20
10
0
1990
2000
2010
BAU (+1.2%pa)
2020
-2.1%
2030
-2.8%
2040
-4.4%
2050
-6.1%
Average world GDP growth at constant prices (1980 to 2007) = 3.6% pa
Decoupling of world CO2e emissions from economy (1990 to 2007) = 2.4% pa
Net business as usual growth of world CO2e emissions = 1.2 % pa
World CO2e intensity for 80% reduction in emissions
CO 2 e / unit GDP (Kg/£)
3.00
2.50
Reducing at 9.6%pa
at current prices
2.00
1.50
1.00
0.50
0.00
1990
2000
2010
2020
2030
But what should a company do?
2040
2050
A company should …..
CO2e / unit GDP (Kg/£)
3.00
2.50
Reducing at 9.6%pa
at current prices
2.00
1.50
1.00
0.50
0.00
1990
2000
2010
2020
2030
2040
2050
Match or exceed this trend – ie its CO2e per unit of
contribution to GDP* should drop by at least 9.6% pa
A company’s contribution to GDP is defined as its Value Added, where:
Value Added = EBITDA + employee costs = turnover – bought in costs and services
Adding in BT’s CO2e intensity
(
CO2e
Intensity = _____________
Value Added
)
3
Kg CO 2 e / £
2.5
2
Reducing at 9.6%pa
1.5
1
0.5
BT
0
1990
2000
2010
2020
BT base line year 1996/7
2030
2040
2050
Setting a Climate Stabilisation Intensity Target
0.25
Kg CO 2 e / £
0.2
0.15
0.1
80% reduction
target by 2020
0.05
0
1990
2000
2010
2020
2030
2040
2050
2048
2045
2042
2039
2036
2033
2030
2027
2024
2021
2018
2015
2012
2009
2006
2003
2000
1997
CO2e (k tonnes)
BT’s emissions are dropping in real terms
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-
Advantages of a CSI target
• Combines company environmental and financial
performance
• Links company performance to global environmental and
economic performance
• Accommodates the normal dynamics of businesses such
as organic growth, acquisitions and outsourcing
• Provides a framework for modelling future strategy
• Allows straightforward benchmarking
Climate
Stabilisation
Intensity
Target
Ensures emission
reductions are sufficient
to prevent catastrophic
climate change.
Links climate protection
to economic growth.
Green growth for a low carbon future
An ICT Sector CSI Target?
CO2
Value Added
CSI
Opportunity
take up
BAU
growth
The 2020
ICT
challenge
BAU
efficiency
2008
2020
ICT Sector
CSI target
2020
Thank You
www.bt.com/betterworld