What is Net Good? Net Good is BT’s programme to deliver a net positive environmental impact. We achieve this by minimising the negative and maximising the positive impacts delivered by our products and people. Net good means that the positive outweigh the negative. In respect of our principal environmental impact – greenhouse gas emissions – our goal is to deliver more carbon abatement (reduction) than the emissions in our end-to-end carbon footprint. Our Net Good goal is an abatement/emissions ratio of 3:1 by 2020. By pursuing this goal, we are shaping and accelerating the transition to a more sustainable, low carbon, economy. It also helps us innovate – to develop products and services that deliver new kinds of value to customers – and to be competitive in this better future. Net Good was launched in June 2013. We set our goal and shared our methodology so that others may benefit and develop similar approaches. We have grown the portfolio of products and services delivering demonstrable carbon abatement, and report on the abatement and revenue value of the portfolio, in addition to the end-to-end carbon footprint of our business. Our methodology and reporting is developed with, and endorsed by, recognised external carbon accounting bodies. Our own emissions • Downstream: Emissions made in the use of our products by customers. We use process analysis to calculate these, using performance, use and end-of-life data for each type of equipment we sell. Abatement via our products and services The abatement we report is delivered by the products and services that make up our Net Good portfolio, described in the table overleaf. We include products and services only when we have found a verifiable abatement calculation. Making progress We are on track to meet our 3:1 goal but we still need to do more. We will do this by continuing to reduce our own end-to-end emissions and by helping our customers save more carbon. Our end-to-end footprint includes: • Upstream: Emissions made in the supply chains on which we depend. We use environmentally extended input output analysis to calculate these, which has the benefit of including all upstream emissions associated with our consumption of products and services, not only from our direct suppliers but the entire supply chain. • Our own operations: The emissions we generate from the combustion of fossil fuels, from the generation of electricity we consume, and from staff commuting. We use process analysis to calculate these using actual energy, fuel, mileage and travel mode data. For electricity we report both Gross and Net emissions (grid-average and generation-sourcespecific emissions intensities respectively). We use the Net figure, which is the lower of the two due to procurement of renewable energy, in our 3:1 calculations. Emissions Continue to reduce our own end-to-end emissions 1 Now 2020 3 Help our Abatement custome rs save ca rbon Net Good portfolio 2013/14 Products Source of abatement Description Broadband Avoided travel due to ‘telecommuting’ by office workers Through the provision of a broadband network, BT enables workers to work remotely using a broadband connection. This reduces commuting travel and the associated emissions. Audio conferencing (BT MeetMe) BT provides the MeetMe audio conferencing facility to busiAvoided business travel due to nesses and other organisations. This reduces business travel use of audio conferencing by providing an alternative to face-to-face meetings. BT provides the networks that enable business to move applications from servers in their own premises into the cloud. This replaces energy consumption by computers at customer premises with more energy efficient computing services provided in the cloud. Examples are applications such as cloud-based email, CRM platforms and groupware used by UK-based SMEs. BTnet Leased Line Ethernet Superfast Broadband Reduced energy use by SMEs due to cloud computing Broadband Broadband enables a range of technologies that remove or replace the use of carbon-intensive products or Dematerialisation and reduced processes (dematerialisation). We measure the effect of consumer travel due to use of dematerialisation and reduced consumer travel enabled by the internet online news, music streaming, online banking, online retail, online education, digital photos and e-mail. Video conferencing (Telepresence) BT provides the Telepresence high definition video Avoided business travel due to conferencing facility to businesses and other organisations. use of video conferencing This reduces business travel by providing an alternative to faceto-face meetings. Superfast Broadband Additional dematerialisation and reduced consumer travel due to use of superfast broadband over the fibre network The provision of superfast (or NGA) broadband over the fibre network increases the extent to which the internet enables dematerialisation. We measure the resulting additional abatement enabled by the increased speeds available over fibre, specifically from the dematerialisation of CDs, DVDs, Games, Books, newspapers and mail, and reduced consumer travel to shops. We account for the additional energy burden of operating the fibre network, and the increased use of consumer equipment resulting from faster speeds. Broadband Reduced energy use by commercial space due to e-commerce The broadband network enables e-commerce activities, i.e. on-line retail and wholesale. This results in reduced commercial, retail and wholesale space and a corresponding reduction in energy to build and operate these facilities. Avoided business travel due to use of third party provided teleconferencing BT’s provides Inbound Call services to other communication providers, which enables them to deliver international dialin functionality for their teleconferencing platforms. This reduces their customers’ business travel by providing an alternative to face-to-face meetings. We count the impact of teleconferencing that makes use of our inbound call service. Inbound Call services Products Source of abatement Description Field Force Automation Reduced mileage due to efficient fleet management BT’s Field Force Automation services enable organisations with mobile teams to improve their productivity by automating fleet/driver scheduling and reporting. This reduces the mileage travelled by the field force, with a corresponding reduction in fuel use. Flexible working services Reduced energy use in offices due to flexible working practices BT provides a number of telecommunication applications, processes, support and consultancy services to businesses and other organisations that help them adopt flexible working practices. This helps improve the efficiency of office space, resulting in reduced energy use in office buildings. BT Vision BT Vision allows customers to download films on demand Reduced travel by consumers over a broadband connection, avoiding travel to a rental and dematerialisation of media store to physically collect and return a film, as well as reduced emissions associated with the postal of rental DVDs. Reduced energy use by global companies due to cloud computing BT provides a number of services including BT Virtual Data Centre, managed hosting, and telehousing/co-located services that involve moving IT applications from equipment based on customer premises into the cloud. This reduces energy consumption due to the greater energy efficiency of the cloud. We count the impact of services delivered by BT to multinational companies with a global footprint. Managed Mobility Reduction in travel by flexible working practices enabled by the N3 NHS network Telecommunication services provided by BT enable employees to work flexibly while away from the office. This enables mobile workers to access their enterprise network, data and applications through a secure broadband connection. A specific example of this is the N3 network that BT provides to the NHS. This enables the NHS to adopt flexible working practices that reduce commuter travel and energy consumption in the NHS estate. Cloud Contact Reduced energy use by organisations due to the use of virtual contact centres Through our Cloud Contact portfolio BT provides hosted contact centre services to businesses and other organisations. This moves server activity away from customer equipment to the cloud and therefore reduces energy consumption due to the greater efficiency of the cloud. Reduced energy use due to cloud computing Through our One Cloud portfolio BT helps businesses and other organisations move from customer premise based private branch exchange telephone systems and IP telemetry servers to cloud-based network switching. This reduces energy consumption due to greater efficiency of running these applications in the cloud. Data centre services One Cloud