Carbon Disclosure Project Study 2010
“ We have many telepresence rooms around the world that we use to connect employees with our clients, employees with employees and our partners with their clients. The value and business benefits gained from this form of communication are immeasurable because it enables us to more efficiently communicate with and serve our customers.”
Michelle Kerby, Director, Offer Marketing, EMC Corporation
“ Telepresence is a great way of replacing face to face meetings, once the first in-person meeting has taken place.”
CIO Corporate Functions, PepsiCo
The financial and business case for telepresence
Financial benefits and productivity gains drive telepresence usage
The 15 global companies using telepresence systems have pursued different strategies to get value from their investments (see Figure 3). They told us that telepresence investments are driven by: • Direct requests from the CEO to implement the technology to improve their productivity and the productivity of the executive team more generally.
• Potential for immediate cost savings from travel budgets. For some firms in this study, the ROI on telepresence from travel and accommodation cost reductions is huge. For example, Aviva achieved a 29% year-on-year reduction in travel costs between 2008 and 2009, as a result of using telepresence combined with a travel reduction policy.
• Requirement to replace failing old video conferencing technology that did not deliver a reliable, high quality user experience and therefore resulted in low utilization rates (see Box 1).
• The benefits of reducing CO2 emissions which improve the firm’s sustainability performance and branding – even though such Scope 3 emissions7
are outside current carbon reduction regulations.
• Innovative thinking on how inter- company telepresence connections will facilitate collaboration and strengthen relationships with customers, suppliers and partners. For example, some firms allow their top clients to use their own telepresence rooms. More commonly, it is a good tool to build and maintain relationships with partners and suppliers.
Figure 3. Reducing air travel is the biggest driver for implementing telepresence
1 Reduce air travel expenses 2 Improve executives’ productivity 3 Improve employees’ productivity 4 Reduce air travel greenhouse gas (GHG) emissions 5 Improve executives’ work/life balance 6 Speeding up decision making and processes 7 Strengthening relationships with customers, suppliers and partners
7. Scope 3 covers indirect emissions, such as the extraction and production of purchased materials and fuels, transport- related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc. Scope 1, 2 and 3 emissions are terms used under the GHG Protocol. For a full description see: GHG Protocol: A Corporate Accounting and Reporting Standard, available at www.ghgprotocol.org/files/ghg-protocol-revised.pdf
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