On BT being a pioneer in environmental sustainability:
 
Responsible behaviour and sustainable development matter to our business. We want to grow in a way that benefits our customers and society, using communications technology to help tackle social and environmental challenges.
 
We were thinking about our own carbon footprint long before it became popular or fashionable. For nearly two decades, we have been taking steps to reduce our energy use, to invest in low carbon energy supplies and to involve our people and suppliers.
 
BT has also been leading the debate as a major British corporation and a global business on sustainability and climate change and as part of this large engagement we supported the Carbon Disclosure Project research report – The Carbon Chasm.

Climate change is a business risk which even our shareholders realise. BT is convinced that its investment in creating a low carbon BT is the right one that will create value for our shareholders, and benefits for society and the environment.
 
When things don’t make business sense then this is time for governments to step in.
 
On BT’s effort to reduce its emissions:
 
BT established its first environmental management system back in 1991. We now operate ISO14001-certified management systems in six countries, including the UK.
 
We set our first carbon reduction target in 1992 and last year we set one of the most aggressive carbon reduction targets in the world – to reduce the carbon intensity of our global business by 80 per cent by 2020. So far, we have achieved a reduction of 43 per cent.

We have done this by improving our energy efficiency and getting more of the electricity we use from renewable sources. For example, 41 per cent of the electricity we use in the UK now comes from renewable sources.
 
We are also investing in renewable energy. Through our UK wind farm project we hope to meet 25 per cent of our UK electricity needs by 2016. A solar array at our US headquarters in El Segundo, California reduces our CO2 emissions by more than 290 tonnes a year.
 

On Global 100 companies are still 39 years behind the recommended timeframe outlined by the IPCC:
 
As the report states most large companies now measure their carbon footprint and many have set carbon reduction targets.  But how many of those targets are actually in line with the required reductions to prevent dangerous climate change?  The research highlights a significant gap between what is needed from the corporate sector and what’s currently promised. 
 
We in the business world need to find a way of closing this carbon chasm. Organisations need to be far more aggressive if they are to achieve the long-term reductions required. 
 
This is a time of huge opportunity for businesses to gain competitive advantage by reducing their own impact on the climate and benefit from associated cost savings, as well as sparking major innovation around the production of new, lower carbon products and services.
 
According to the research, the Global 100 are currently on track for an annual reduction of just 1.9%, well below the 3.9% needed in order to meet the IPCC recommendation of at least an 80% reduction by 2050. While 73% of Global 100 companies have set some form of reduction target, the majority need to be far more aggressive if they are to achieve the long-term reductions required. 

 
Findings from the report highlight that businesses cite various motivations for setting emissions reductions targets including identifying inefficiencies in corporate operations to achieve cost savings and stimulate innovation; minimising greenhouse gas (GHG) associated risks whilst preparing for potential future regulation; and achieving competitive advantage.  However, as motivations are largely driven by market forces rather than scientific recommendations, Global 100 targets often fail to deliver the required cuts.
 
The research also reveals that a vast array of targets which present challenges in assessing one against another.  Greater harmonisation in setting targets in line with the science is required and this consistency will assist in revealing the leaders and the laggards in emissions reductions and ensure that major cuts are pursued in the short, medium and long term in order to permanently close the carbon chasm.
 

On the costs and business implications of taking life cycle responsibility:
 
Customers are increasingly concerned about the providence of products and services they buy, as well as the in-life impacts such as energy consumption.
 
To help our customers improve their sustainability, we offer products such as energy-efficient phones and services to help them assess their carbon impact, reduce the need for travel and work flexibly.
 
We are embedding sustainability into our key business processes including procurement so it becomes business as usual.

If the financial returns from being wasteful are greater than the cost of not being wasteful, then business and consumers alike will be nature wasteful. If reducing waste has a long term payback then it will often be a primary concern when capital investment is in short supply.
 
Pricing signals, financial incentives and cap and trade systems are all key factors in increasing the efficient use of materials and energy.
  
On future information and communications technologies (ICT) which can help further reduce emissions:
 
The ICT sector has transformed the way we live, work, learn and play. From mobile phones and micro-computer chips to the internet, ICT has consistently delivered innovative products and services that are now an integral part of everyday life.
 
ICT has systematically increased productivity and supported economic growth across both developed and developing countries.
 
The biggest role that ICT can play to reduce emissions is by helping to improve energy efficiency in power transmissions and distribution, in buildings and factories that demand power and in the use of transportation to deliver goods.
 
In total, ICT could deliver approximately 7.8GtCO2e of emissions savings by 2020. In economic terms, the ICT-enabled energy efficiency translates into approximately US$946.5 billion of cost savings.
 
Some of the biggest and most accessible opportunities for ICT to achieve these savings are through smart motor systems, smart logistics, smart buildings and smart grids.

On the amount of supply chain impact are corporate organizations responsible for:
 
At BT, we also impact the environment through the use of raw materials in the goods we buy and the disposal of things we no longer require.
 
We don’t manufacture products, but we do buy large quantities of equipment and materials for use in our business and for onward supply to our customers.

Wherever possible, we choose environmentally friendly alternatives. For example, we use environmentally friendly copier and printer paper, for example, 70 per cent of which is made from post-consumer waste. And energy consumption is an important consideration when we buy electronic equipment.
 
We are committed to behave according to our fair and ethical trading principles in all our dealings with customers and suppliers. 
 
Public education will play a role in helping to create a low carbon economy but it is equally important to have strong leadership from business and government to make this become a reality.

(Dr Chris Tuppen is a member of EcoAsia's panel of advisors)

 © EcoAsia 2009