Net Good Better Future Better Future Pathway to Carbon Net Positive 1 Better Future Better Future Net Good ICT’s vast potential for carbon abatement ICT has the potential to enable the abatement of 9.1Gt CO2e per annum SMARTer 2020 report Response by ICT industry BT’s response ICT could cut projected global GHG emissions by 16.5% Improvements in energy efficiency $1.9tn in energy/fuel savings Development of new products and services Adopt the SMART 2020 strategy and continue to cut our own emissions and help our customers cut their emissions through our products & services 7x the ICT sector emissions ICT potential first estimated by The Climate Group’s SMART 2020 report © British Telecommunications plc 2 Better Future Better Future Net Good BT Net Good: Part of a wider business & sustainability strategy Our strategy Better Future Our Programmes Being a responsible & sustainable business leader is one of BT’s six strategic priorities to grow the value of our business. We’re focusing on integrating sustainability into everything we do. Net Good Our Better Future programme is our commitment to use the power of communication to improve lives and ways of doing business without costing the earth. Connected Society Improving Lives © British Telecommunications plc 3 Better Future Better Future Net Good BT has already built a strong track record in carbon measurement & management © British Telecommunications plc 4 Better Future Better Future Net Good Global resource challenges Net Good vision Our Net Good vision is to help society live within the constraints of our planet’s resources through our products and people © British Telecommunications plc 5 Better Future Better Future Net Good The 2020 3:1 goal: Net Good vision into practice Our 2020 goal puts the Net Good vision into practice for our most material environmental impact: energy & carbon. It brings together all the components of our impact, and links revenue growth to carbon abatement. BT Existing and future products and services 3:1 We will help customers reduce carbon emissions by at least three times… 3 Abatement potential for customers : … BT’s own carbon emissions Upstream (suppliers) © British Telecommunications plc Own Operations 1 Downstream (CPE) Carbon impact of BT’s business 6 Better Future Better Future Net Good End to end carbon impact methodology Upstream/Supply chain (64%) Own operations (8%) Downstream (28%) Spend based Environmentally Extended Input-Output Analysis Measured actuals Calculated based on product volumes and consumption metrics Upstream reductions Own operations reductions © British Telecommunications plc 7 Better Future Better Future Net Good Abatement Methodology • Identify BT products/services with carbon abatement potential • For each, develop unit carbon abatement metric based on a case study or report • Assess total carbon abatement achieved through applying product volumes ∑ Carbon saved Case Study Report X Product volumes = Total carbon abatement Current © British Telecommunications plc 8 Better Future Better Future Net Good Abatement Pathway 3:1 1:1 2013 2020 © British Telecommunications plc 9 Better Future Better Future Net Good The 3:1 methodology: A transparent, open source approach Transparency Robust reporting on targets Independent verification & endorsement BT’s approach Available to other businesses Learn from feedback Engage stakeholders © British Telecommunications plc 10 Better Future Better Future Net Good The 3:1 methodology: External endorsement Ensuring robustness BT asked the Carbon Trust and Camanoe Associates (researchers from MIT) to endorse both the methodology and BT’s assumptions Endorsement Carbon Trust and Camanoe Associates reviewed the Scope 1,2 & 3 measurement approach and the approach to measuring carbon abatement on a product by product basis, evaluating 15 products and services in total After establishing a firm understanding of the product or service, Carbon Trust and Camanoe Associates looked at the carbon footprint model including the approach and assumptions; the carbon factor, their values and the data sources used in the calculations © British Telecommunications plc 11 Better Future Better Future Net Good The 3:1 methodology: Examples of carbon abatement Telecommuting Flexible Working Services No of home workers (ONS data) Proportion enabled by BT broadband Carbon saving/ telecommuter [ACI Study, Yankee Group Study, BT Study] No of Contracts/year Desk / office space saving per contract [from analysis of existing contracts] Carbon saving due to office heating / lighting energy savings Audioconferencing Number of BT conference calls per year Carbon saving per call [University of Bradford Study] No of Contracts/year Energy saving per contract [from analysis of BT savings and analysis of potential contracts] Carbon saving due to energy savings © British Telecommunications plc Integrated Energy Management Services 12 Better Future Better Future Net Good The 3:1 methodology: Engaging stakeholders to evolve our approach Following the review BT worked with The Climate Group and The Carbon Trust on a stakeholder consultation to gather further feedback from industry experts. Feedback The feedback from the consultation and today’s launch event organized by The Climate Group will be used to further evolve the methodology. As an extension of our open sourced approach we’ll be inviting further comment/ critique at an online forum on 2 July. The Better Future Forum will be an opportunity for BT to share its experience so far and learn from others through open discussions, independently moderated. We have made the methodology available via our website & we’ll be inviting suggestions for further improvements. Consultation Online Forum © British Telecommunications plc 13 Net Good Better Future Better Future 14