Breaking New Ground:
Corporate Sustainability in the Spotlight
James Gowen
Verizon Chief Sustainability Officer and Vice President Supply Chain Operations
December 2013
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Sustainability Mission
Verizon will utilize and promote sustainable
business practices that reflect our
commitment to the economic, environmental,
and social responsibilities we have to our
customers, shareowners, employees and
society at large.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Audience Question: Environmental Drivers
Q:
What do you think are some of the main
drivers to a corporate sustainability program?
Why would a business initiate such a program?
?
?
?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Environmental Drivers
46,000 Cell Sites
Verizon’s
environmental
impacts are our
responsibilities and
our opportunities
34,000 Vehicles
10B kWh Annually
31,000
Facilities
Globally
190K+
Employees
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Program Components
People – Engage More Entities, Act Together
• Maximize the power of our network: employees, investors, customers,
suppliers, partners
Process – Incorporate Sustainability into our DNA
• Expectation language incorporated into our Verizon Credo
Products – Broad Availability, Individual Focus
• Consumers: Green is one of many aspects consumers evaluate when selecting products
• Enterprises: Green is becoming a required factor in large partnership decisions
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Program Timeline
Green Fleet
Verizon becomes
charter member of
Nat’l Clean Fleet
Program
Popular program
has now collected
over 1.4M pounds
2010
Green Team
Launched
Now includes 13,400+
employees in 23
countries
Top 100
Verizon breaks into
the Top 100 in
prestigious Newsweek
Ranking
New public target
measures CO2
emissions based on
network throughput
2011
Earth Day
Verizon recognize
consumers who
recycle phones by
planting trees in
their honor
State-of-the-art
‘Green’ VzW stores
expand – We now
have 131 LEED stores
and 116 ENERGY
STAR certified stores
2012
Recognition
After issuing first
integrated Annual
and CSR, Verizon
receives 5 awards
in one month
13,602 Employees
participate – new
record
mar
Newly launched STBs
are 30% more energy
efficient
april
august
Green STB
Earth Hour
LEED / Energy
Star
jan
First Recycling
Event (TX)
Carbon
Intensity Metric
january
2009
february
Corporate scope,
centralized
reporting and
program
management
office
november
september
CSO Named,
Team Formed
may
World’s first
carbon-free
certified smart
phone launches
april
CITRUS
Partner of Year
Verizon wins
prestigious EPA
Partner of Year Award
2013
EV Charging
Verizon joins 12 other
companies as a
founding partner in the
DOE Workplace
Charging Challenge
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Audience Question: Employee Engagement
Q:
What are some ways that a large company
could engage their employees in their
sustainability program?
?
?
?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Green Team Recruiting and Engagement
Employee Engagement – Green Team
Primary Objective: Educate and engage employees in Verizon’s Sustainability Program
16000
14000
12000
10000
8000
6000
4000
2000
0
May '10
Dec '10
May '11
Dec '11
May '12
Dec '12
May '13
Dec '13
Verizon’s Green Team is the largest employee group in the company. Members are
invited to volunteer at events as well as receive the Vz Green Insider monthly which
details green news inside and outside of Verizon.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Recycling
Rallies -and
OSS Results - 2013
Employee
Engagement
Recycling
Pounds Recycled
CO2 Tons Offset
Goal: 300K
Goal: 478 Tons
Status: 360K (120% of goal)
Status: 574 Tons (120% of goal)
2013 Events - Pounds Collected
America Recycles Day
18 different locations
Total Recycling Events Completed in 2013 YTD: 28
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Holiday Card Program- 2013
Employee Engagement – Holiday Cards
Project Goals: Engage employees in upcycling initiative while supporting St. Jude’s
Ranch for Children
Holiday Card Program 2010 - 2012
Holiday Card Program 2013
•
•
•
•
•
• 300+ locations
• 10,000+ Participants
• 600+ Volunteers
• 270,000+ cards donated to the program
• 2 different events in 2011 (April and Nov)
November 18, 2013 - January 17, 2014
150+ locations
200+ volunteers
All LOB’s represented
Program launched
Holiday Card Program to Date
300,000
270,000
250,000
200,000
150,000
150,000
Cards Collected
100,000
50,000
80,000
40,000
0
2010
2011
2012
Total
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Make Every Mile Count - Bike to Work Program
Employee Engagement – Bike to Work
Goals
Program To Date Results
(Since 7/18/13)
• Encourage employees who bike to
work to track their mileage
• Increase awareness of
alternative/green modes of
transportation
• Recognize employees who are
reducing their environmental footprint
• Encourage physical wellness and
partner with Verizon health and
wellness organizations
Biking tool
created
Testing
completed
May
Jun
Launched
pilot
Jul
Participants
CO2 Offset (MT)
Miles Saved
Fuel Saved (Gal)
Number of locations
Countries (US, Mexico,
Netherlands, Germany, Italy)
Launched 5
locations
Aug
Promote thru
Wellness
Launched
Centers
25 locations
Sep
Oct
250
27.09
59,730
4,383
42
5
2013 Invitation Goal: All
employees at all locations
with Wellness Centers
Expand
comms
Bike rack
Plan/funding
Nov
Dec
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Audience Question: Green Energy Impact
Q:
What types of organizations would be
involved in a green energy deployment?
?
?
?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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The Opportunity:
Verizon’s kWh Footprint
Grid: 10.5 Billion kWh
Green: 10 Million kWh
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Green Energy: A Stakeholder Perspective
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14
2013 On-site Green Energy Program
Target: 6 sites
Scope: 5.4 MW
SOLAR
FUEL CELLS
Target: 12 sites
Scope: 9.6 MW
Total: 18 locations / Scope: 15 MW
x2
x5
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Thermal Storage Initiative
The Challenge: Reduce energy usage while improving reliability in a high
performance building
SITE
VZ PARTNERS
SOLUTION DETAILS
• Smart grid enabled thermal storage
solution shifts electric load from
daytime to night
• Off-peak power more efficient and
cost effective
• Enables energy savings
• Built in 1927
• 2M SF
• Incentives from DOE and
NYSERDA
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Collaborating for the Future
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Audience Question: Green Operations
Q:
Beyond employee engagement and
energy…what other areas do you think Verizon
focuses on when it comes to sustainability?
?
?
?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Green Operations Overview
Green Fleet
• Implementing process changes and employee training to reduce costs and
environmental impact
• Vehicle options now include more alternative fuel solutions
Recycling
• Establishing minimum recycling standards for waste diversion throughout footprint
• Recent right-sizing project led to customized recycling programs based on size and
materials
Network Equipment Efficiency
• In 2008, Verizon established energy efficiency standards (20%) for new network
equipment
• In 2009, those standards resulted in savings of almost 91 million kwh/>144 lbs of CO2
Supplier Sustainability Engagement
• Launched sustainability assessment in 2011 aimed at reducing footprint across supply
chain
• Collaborating with partners to improve their existing sustainability programs
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Green Fleet Overview
Alternative Vehicle Profile
Type
2010
2011
2012
Green Fleet Efforts: A Focus on Efficiency
Biofuel
370
730
435
• Investments in alternative fuel vehicles – 6.2% of fleet
CNG
513
514
514
• Replacement of oldest vehicles
Electric
0
10
10
• Robust idling reduction initiative (207k gallon savings)
Hybrid
1,007
1,303
1,267
• Truck inventory reduction
SmartWay
Logistics
12
12
12
Total Green
Vehicles
1,902
2,569
2,238
• Smartway Tractors
• Telematics
• Improved Vehicle utilization
Major investment 2010/11 in green fleet
CNG Truck
Verizon’s investment in our green fleet has boosted our fuel efficient vehicles to more than 6%
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Audience Question: External Initiatives
Q:
Why is it important for companies to
expand their sustainability program beyond
their four walls?
?
?
?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Community Initiatives – Super Bowl
Verizon is the first
sustainability corporate
sponsor of the Super
Bowl. We’ve worked
with the Host
Committee to plant
27K trees and shrubs
across all five New
York City boroughs and
nine counties in New
Jersey. Verizon Green
Team members are
helping to plant the
trees. We’re also
hosting joint Recycling
Rallies in January.
5 NYC Boroughs and 9 NJ Counties
Verizon / NFL Events: May 16 & 17; October 12, 16 & 19
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Strategy & Messaging Overview
Operations
 Utilize sustainable business practices that
reflect our commitment to the economic,
environmental, and social responsibilities we
have to our customers, stakeholders, employees
and society at large.
Environmental
Footprint Reduction
1
2
3
Messaging
 Promote and publicize our sustainable results,
goals and activities to our employees,
stakeholders, communities and entire network
of partners in an effort to inspire and enable
others to take similar action.
2
Revenue Growth
Cost Reduction
Increase Brand &
Reputation
1
3
Community &
Employee
Involvement
Investor & Industry
Favorability
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Risk and Reputation
Customer
Industry
30%
2010
2011
2012
2013 YTD
YOY growth – 21% increase in direct customer
requests
Driven primarily through EcoDesk, CDP Supply
Chain and EcoVadis
Sustainability
Recognition
2010
70%
2011
2012
2013 YTD
Increase in requests from Investor Relations –
related to sustainable investment
2013 YTD
>130 Requests
Trend of industry requests being consolidated
between groups has driven number down
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22
26
26
2010
2011
2012
2013 YTD
6
2009
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Our Program Components
Audience Question: Governmental Partners
Q:
What examples can you think of where
Verizon would work with a government entity
related to sustainability?
?
?
?
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Workplace Charging Challenge
Department of Energy Workplace Charging Challenge
Launched 1/31/13 with 13 partner companies
Objective Increase # of US employers offering workplace charging by tenfold over the next five years
Verizon’s Role Committed to assessing employee interest and expanding our charging infrastructure
Step 1: Assessing Employee Interest
• Who: Green Team surveyed at 7 large locations
• When: Completed week of 2/18
Step 2: Supplier Selection
• Identify target locations – NJ, TX, AR
• RFP launched 6/7; contracted 10/11
Step 3: Implementation
• Launch Kick-off – 10/21
• Place equipment order – 11/22
• Complete installations – 1/31
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Our Program Components
Audience Question: Industry Impact
Q:
Looking beyond Verizon into the entire
Information Telecommunications and
Communications (ICT) industry. What % of total
CO2 emissions do you think come from the ICT
industry?
?
?
?
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The Power of the ICT Industry
According to GeSI, 2% of the world’s CO2 emissions originate from the ICT industry
• ICT’s impact on the remaining 98%
can reduce total global carbon
emissions by 15% before the year
2020
• The savings can be realized by
increased used of ICT Broadband and
IP-based services such as:
2%
ICT Contribution
98%
All other industries and
individual contribution
– Smart logistics
– Smart buildings
– Dematerialization
– Smart grids
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Supplier Collaboration
Goal: Utilize suppliers (40% by spend) with GHG reduction targets by 2015
2013 SCORING SYSTEM:
Subcontracting: 20%
GHG Supplier Goal Details:
• Annual sustainability assessment includes GHG reporting
• Biannual webinars with reporting experts
• Annual spend review
• Public and private reporting options for suppliers
• Collaborative program requests supplier input and ideas
Packaging: 20%
Water: 10%
Waste: 10%
GHG: 30%
Strategy: 10%
Engaging our supply chain furthers the environmental impact of our program
across the ICT industry
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Our Program Components
Audience Question: Industry Impact
Q:
Where do we go from here? What are some
next steps that Verizon could take to continue
the forward momentum of our program?
?
?
?
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2014 and Beyond
2014 TOP INITIATIVES
by PROGRAM
DRIVERS
Brand &
Reputation
Verizon
Environmental
Impact
External
Environmental
Impact
Revenue
Growth
Cost
Reduction
Policies & Metrics
Virtual & Paperless
Eco-Solutions
External Stakeholder
Programs
Energy Efficiency &
Green Energy
Shared Success
Employee Engagement
Least Impact
Most Impact
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More Information
@VerizonGreen
@JamesGowen
www.verizon.com/sustainability
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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