NORTEL
Moving Towards Sustainability
A Case Study
Introduction: Nortel (Northern Telecom) designs, builds and integrates digital networks
for commerce, communication, information, education and entertainment applications.
They employ 73,000 people and have annual sales of $15.5 billion.
Sustainability Strategies: Nortel environmental leadership began in 1991 when they
became the first global electronics company to eliminate ozone-depleting
chlorofluorocarbons (CFCs) from their manufacturing process. The company’s
sustainability efforts are led by its Corporate Environmental and Sustainability
Department which focuses its efforts in the areas of Customers and Markets, Technology
and Products, and Manufacturing. Their targets for reducing their environmental impacts
below 1993 levels by the year 2000 are: 50% reductions in pollutant releases and solid
waste; 30% reduction in paper purchases; and 10% increase in energy efficiency.
Sustainability Results: Their $1 million dollar investment in R&D to eliminate CFCs
saved the company $4 million in operating costs over three years. The savings were
due to reduced waste disposal costs, avoidance of CFC taxes, and eliminating the need to
purchase CFC solvents. Nortel is a leader in design-for-environment initiatives,
including the development of a modular assembly for their PowerTouch telephone that
allows customers to upgrade without buying a new unit. They eliminated 99.9 percent of
the lead in their printed circuit boards to make the world’s first lead-free telephone. An
initiative to eliminate chromate coating on metal parts was not only good for the
Environment but improved product performance and reduced costs as well.
Links to Corporate Strategy and Business Value: Nortel’s role as an environmental
leader is tied to the company’s goal of being most highly valued in the industry by its
customers. Their environmental leadership has strengthened their relationship with their
customers, particularly in Europe, and has supported their entry into emerging markets.
Key Tools and Techniques: Nortel found The Natural Step’s framework helpful in
developing their own thinking on sustainability. Through its environmental reporting
database, each location reports its numbers quarterly, allowing clear communication
about environmental performance to senior management and stakeholders.