Reducing Carbon: BTs approach to tackling climate change Mike Blackburn BT Regional Director North West.

Reducing Carbon: BT’s approach to tackling climate change

Mike BlackburnBT Regional Director North West

BTs Climate Change agenda

• The BT climate change experience and credentials

• Our progress to date

• BT’s partnership capabilities and collaboration with

suppliers and customers

• Influencing BT employees and creating an open forum

• The challenge – act now in partnership and for future

generations

BT is making a major contribution in the North West – Economic Impact 2006

• BT directly employs over 9,200 people in the North West • BT makes a financial impact of over £1.6 billion a year in the region • BT spends over £641 million a year with local suppliers • BT has invested in four new ‘state of the art’ contact centres in Blackburn, Lancaster, Skelmersdale and Warrington • BT is making a capital investment of £830 million, replacing equipment at more than 375 exchanges by 2011 in the North West as part of its 21CN initiative • BT’s CSR activity in the North West exceeded £1 million last year

Climate Change…we’re not new to this…

• BT rated No1 in the Dow Jones Global Sustainability Index for the last five years

• BT published its first Environment Report in 1992

• BT’s CO2 emissions are 60% lower than the 1996 level

• BT became the world’s biggest user of green energy in 2004

• BT uses micro wind turbines for renewable electricity at some of its sites

• Broadband use enables 80% of BT staff to work flexibly – the role for communications in beating congestion

Did you know?The UK suffers from the worst Traffic congestion in Europe.

Our progress to date - Emissions

0

500,000

1,000,000

1,500,000

96/97 02/03 03/04 04/05 05/06

Tonnes CO2

Direct Combustion Purchased Electricity Business Travel

Our progress to date - Waste & recycling

Important climate change role for ICT

12,500 home workers for BT

Sharing best practise in the North West

“If we are to effectively combat climate change, everyone - government, business and individuals alike - must play a part. I am particularly pleased that BT is working with both its customers and internal staff to make a difference, which supports the government's efforts to help people change their behaviour at home and at work to stop climate change."

David Miliband, Environment Secretary

BT’s wind power project

Overall aim: 25% of BT’s current electricity requirements from wind generation capacity by 2016.

The first phase – operational by 2012:

• 10% of BT’s electricity requirements• 100MW of wind turbine capacity• 50 x 2MW wind turbines• Enough to power 50,000 homes.

Wind power isn’t BT core business …..

VenturePartners

BT Input External Partner(s) Input

Minority Equity Stake

Sites

Energy Purchase

Majority Equity Stake

Windfarm experience

Debt financing

Advantages for BT• Accesses non-core skills• Off balance sheet

Advantages for Partner(s)• Significant opportunity• Risk sharing

Reducing our carbon footprint

• Extended our green energy contract to 2010

• Review our energy supply – further wind options

• Audit the energy used by our data centres

Low energy data centres

Renewables

Collaboration with suppliers

• New consumer products with energy efficiency targets (BT Vision, Home hub & cordless phone)

• Eco-labels• Reduced packaging• Embedding eco-design and life-cycle thinking into

product development• Investigate alternative materials (bio-plastics,

elimination of batteries), RFID tagging, product leasing, and more…

• Networked IT products

Low energy …. everything!

Low carbon consumer products

ICT and a low-carbon economy

• Paper-free billing• Sustainable lifestyles film

Carbon calculator

Engaging 104,000 BT people

By 2009, we aim to have at least 20% of our employees

actively reducing their carbon footprint at work and at

home

Climate change website

Carbon busters & Carbon clubs

• Support BT’s environmental champions

• Collect environmental data

• Communicate messages to colleagues

• Recruit Carbon Club members

Creative Challenge - climate change award

- Open to BT people and the London College

of Communication- Creative campaign to communicate

climate change to BT’s customers using:• Film• Creative writing• Marketing/ advertising/ PR campaign• Event• Interior design• Computer game• And more…

- £3,000 prize and concept execution if appropriate

Big Switch Off – BT intranet

“If everyone switched off their PCs, screens, faxes and printers when they were not being used, BT would save £500,000 a year on its electricity bills. It’s all about getting people to think about how every action they take can have an impact on climate change, in the home and at work.” Steve O’Donnell, BT Global head of data centres.

Green Basket – employee offers

Additional information

For further information please visit:

• www.bt.com/btregions• www.bt.com/climatechange• www.bt.com/betterworld• http://www.nwda.co.uk• http://www.climatechangenorthwest.com