LEADERS
BT
It’s all very well threatening countries with legislative sticks, writes BT’s Chris Tuppen. But carrots can prove
more effective at encouraging countries to achieve emissions targets. And, for countries to do this, big
businesses need to change their polluting ways – something BT has been incentivised to do for years
WHY
CARROTS
BEAT STICKS
W
hile some opinions are divided, a were set. Since then, we’ve become one of the In this context, three factors stand out.
new international agreement on world’s largest purchasers of green electricity. First, by cutting our energy consumption, we
tackling climate change must be Almost all the power used by our UK business both reduce our costs in the short term and pre-
reached in Copenhagen later this year. now comes from renewable sources and com- pare our business for a future in which energy
Some countries have already set aggressive bined-heat-and-power schemes. To go further, could be much more expensive than it has been
targets. The British government has taken the we recently announced plans to construct wind in the past. By building our own wind farms
lead, pledging to cut greenhouse gas emissions farms capable of meeting 25% of our existing and solar energy plants, we both control costs
by 80% by 2050. Across the EU, the goal is a UK electricity requirements by 2016. and secure our sources of supply.
minimum 20% reduction by 2020 – 30% if Other examples of our commitment to sus- Second, it is increasingly clear that govern-
other developed countries follow suit. In India, tainability include a solar power scheme at BT ments, businesses and consumers prefer to deal
the government has said the per capita level Americas’ headquarters in El Segundo, with suppliers that have strong green creden-
of greenhouse gas emissions across the California. This provides 15% of the electricity tials. We estimate that our achievements in
subcontinent will “at no point exceed that of used in the building, which houses one of our reducing our carbon emissions and in other
developed countries”. areas of CSR influenced our customers’ deci-
China, now the world’s largest emitter of sions on bids and tenders worth some £2.2B in
greenhouse gases, has set a target to reduce ener-
gy intensity per unit of GDP by 20% over five
years. Even the United States – long accused of
dragging its feet when it comes to climate
‘
It is increasingly clear that
2007/8, £400M more than in the year before.
governments, businesses
Finally, the global demand for green prod-
and consumers prefer to deal ucts, services and solutions is bound to grow.
with suppliers that have strong
Worldwide, ICT already accounts for about
change – is expected to take a new stance and two percent of total CO
2
emissions and, as
commit to significant reductions. Shortly after
his election, President Obama confirmed his
intention to reduce his country’s emissions to
’
green credentials demands for computing power and data storage
increase, its footprint looks likely to grow.
main data centres as well as head office staff. However, ICT is both sinner and saint when it
their 1990 levels by 2020 and by an additional Our carbon emissions will be reduced by more comes to CO
2
emissions. Conferencing, for
80% by 2050. than 290 tonnes a year as a result. example, is a much greener way for people to
The question, of course, is: how are these tar- Overall, our carbon reduction target is one of meet than by travel, and it’s just one of the net-
gets to be achieved? Legislative sticks are certain the most aggressive to have been set by any worked IT solutions we’ve identified that can
to play a part, but companies and individuals business anywhere in the world. Our aim is to significantly improve the energy efficiency of
can’t simply be bludgeoned into making the sig- reduce the carbon intensity of our global busi- our customers’ activities and processes.
nificant changes in working practices and ness – a measure that relates our emissions to Such carrots are significant. They encouraged
lifestyles that will be required. Carrots that give our economic performance – by 80% by 2020. us to act in the past, and continue to do so even
people incentives to cut their emissions will be While the prospect of tough legislation is now during a global recession. Given that meas-
at least as important, if not more so. Everyone something that increasingly influences our ures to reduce carbon emissions often also cuts
has a part to play in the solution and, as anyone deliberations, our decision to reduce our CO
2
costs – sometimes dramatically so – our view is
who has tried to build an effective team will emissions was an act of enlightened self-interest. that cut-backs in our plans during the downturn
know, a volunteer is worth ten pressed men. True, we are strong advocates of corporate would be a bad mistake.
Take BT, for example. We made our first social responsibility, and believe it is our duty to But BT is just one of a great many businesses
commitment to reduce carbon emissions back keep our impact on the environment as low as that need to change their ways if government
in 1992, well before the urgency of taking action possible. But, as a business, we also have a duty targets are to be met. As Lord Stern noted at a
became clear and the first government targets to make profits. meeting of the UN’s Economic and Social
18 June 2009 ❘ Sustainable Business
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