Better Future 1 Net Good Pathway to Carbon Net Positive.

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Pathway to Carbon Net Positive

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ICT’s vast potential for carbon abatement

© British Telecommunications plc

ICT has the potential to enable the abatement of 9.1Gt CO2e per annum

ICT has the potential to enable the abatement of 9.1Gt CO2e per annum

SMARTer 2020 report

ICT could cut projected global GHG emissions

by 16.5%

$1.9tn in energy/fuel savings

7x the ICT sector emissions

ICT potential first estimated by The Climate Group’s

SMART 2020 report

SMARTer 2020 report

ICT could cut projected global GHG emissions

by 16.5%

$1.9tn in energy/fuel savings

7x the ICT sector emissions

ICT potential first estimated by The Climate Group’s

SMART 2020 report

BT’s response

Adopt the SMART 2020 strategy and continue to cut our own emissions and help

our customers cut their emissions through our products & services

BT’s response

Adopt the SMART 2020 strategy and continue to cut our own emissions and help

our customers cut their emissions through our products & services

Response by ICT industry

Improvements in energy efficiency

Development of new products and services

Response by ICT industry

Improvements in energy efficiency

Development of new products and services

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BT Net Good: Part of a wider business & sustainability strategy

© British Telecommunications plc

We’re focusing on integrating sustainability

into everything we do.

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.

We’re focusing on integrating sustainability

into everything we do.

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.

Better Future

Being a responsible & sustainable business

leader is one of BT’s six strategic priorities to grow the value of our

business.

Being a responsible & sustainable business

leader is one of BT’s six strategic priorities to grow the value of our

business.

Our strategy Our Programmes

Net GoodNet Good

Connected Society

Connected Society

ImprovingLives

ImprovingLives

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1992

BT measures corporate

carbon footprint; sets

first reduction target

2010

BT Road Tests GHG

Protocol Product Standard

2008

BT sets global / UK CO2

reduction targets <80%

Assessment of

Scope 3 emissions

BT supports development

of GHG

Protocol ICT

Sector Guidance

2011

BT Carbon Footprint Home Hub,

DECT phone & STB

Achieves 3:1 Carbon

Abatement Im

pact for

Customers

2013

Sets 2020 Carbon

Abatement Target

2020

Publication of Scope 3

supply chain emissions

London 2012/ LOG

OG

telecoms

service carbon footprint

BT has already built a strong track record in carbon measurement & management

© British Telecommunications plc

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Global resource challenges

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Our Net Good vision is to help society live within the constraints

of our planet’s resources through

our products and people

Our Net Good vision is to help society live within the constraints

of our planet’s resources through

our products and people

Net Good vision

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Downstream (CPE)

Downstream (CPE)

Own OperationsOwn Operations

Upstream (suppliers)Upstream (suppliers)

BTExisting

and futureproducts

and services

BTExisting

and futureproducts

and services

3Abatement potential for customers

3Abatement potential for customers

1Carbon impact

of BT’s business

1Carbon impact

of BT’s business

:

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.

The 2020 3:1 goal: Net Good vision into practice

© British Telecommunications plc

3 : 1We will help customers

reduce carbon emissions by at

least three times…

… BT’s own carbon emissions

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End to end carbon impact methodology

© British Telecommunications plc

Upstream reductions Own operations reductions

Upstream/Supply chain (64%)Upstream/Supply chain (64%)

Own operations (8%)Own operations (8%)

Downstream (28%)Downstream (28%)

Spend based Environmentally Extended Input-Output Analysis

Measured actuals Calculated based on product volumes and consumption metrics

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X =

Case StudyReport

Current

Totalcarbon

abatement

Totalcarbon

abatement

Abatement Methodology

© British Telecommunications plc

• 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

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Abatement Pathway

© British Telecommunications plc

2013 2020

3:1

1:1

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BT’s approach

Transparency

Independent verification & endorsement

Available to other

businesses

Engage stakeholders

Learn from feedback

Robust reporting on targets

The 3:1 methodology: A transparent, open source approach

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Ensuring robustness

BT asked the Carbon Trust and Camanoe Associates (researchers from MIT) to endorse both the methodology and BT’s assumptions

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

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

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

The 3:1 methodology: External endorsement

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Integrated Energy

Management Services

Integrated Energy

Management Services

Audio-conferencing

Audio-conferencingTelecommutingTelecommuting

Flexible Working Services

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 home workers

(ONS data)

Proportion enabled by BT broadband

Carbon saving/ telecommuter [ACI

Study, Yankee Group Study, BT Study]

Number of BT conference calls

per year

Carbon saving per call [University of Bradford Study]

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

No of Contracts/year

Energy saving per contract [from analysis of BT

savings and analysis of potential contracts]

Carbon saving due to energy savings

No of Contracts/year

Desk / office space saving per contract

[from analysis of existing contracts]

Carbon saving due to office heating /

lighting energy savings

No of Contracts/year

Desk / office space saving per contract

[from analysis of existing contracts]

Carbon saving due to office heating /

lighting energy savings

The 3:1 methodology: Examples of carbon abatement

© British Telecommunications plc

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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.

Online ForumOnline Forum

The 3:1 methodology: Engaging stakeholders to evolve our approach

© British Telecommunications plc

Following the review BT worked with The Climate

Group and The Carbon Trust on a stakeholder consultation

to gather further feedback from industry experts.

ConsultationConsultation

The feedback from the consultation and today’s

launch event organized by The Climate Group will be

used to further evolve the methodology.

FeedbackFeedback

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