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Submitted by Mike Grenville on Mon, 21 Apr 2008 17:08 |
The Vodafone Group has set a target of 2020 to reduce its CO2 emissions by 50% and says it will also help its customers to the limit their own emissions.
The 50% target is against its 2006/7 baseline of 1.23 million tonnes. This target will be achieved principally by improvements in energy efficiency and increased use of renewable energy. The energy used to run the networks accounts for more than 80% of its emissions, with offices, transport and retail accounting for the remaining 20%.
In addition, as part of its climate change strategy, Vodafone says it will be focusing on developing products and services which will help customers limit their own emissions.
Arun Sarin, the CEO of Vodafone Group Plc said, "This is the right decision for a responsible business to take. It is good for the
environment but also makes sense for the business. It resonates from a financial perspective as improving energy efficiency helps us to
control costs. It also resonates with customers as developing new products and services, such as our plans for solar-powered phone
chargers, and universal phone chargers for Vodafone-branded handsets will help customers to limit their own emissions and this is something they value more and more."
Renewable Energy
"We have reviewed the options" said Sarin, "including carbon off-setting, and have concluded that the most effective strategy is to cut our CO2 emissions directly. There are no simple solutions to what is a complex challenge, but through operational changes and technological innovation we will focus on improving energy efficiency in our networks, which account for 80% of our emissions. We will use renewable energy when and where we can" he said.
Energy use in 2006/07 for the Group resulted in a total of 1.23 million tonnes of carbon dioxide emissions, reflecting an overall 6% increase in total energy consumption over the previous financial year on a like for like basis. Vodafone has an existing target to reduce network carbon dioxide emissions relative to network traffic by 40% by 2011 (from a 2005/06 baseline). The Company claims to be on track to achieve this target, achieving a reduction of 29% during 2006/07
Renewable energy accounted for 17% of Vodafone's total network energy consumption, the majority of this through purchasing agreements with
power companies, supplemented by on-site renewable generation through mini-turbines and solar panels. This proportion (17%) represents an
increase of 28% over the previous year
Vodafone is currently gathering data about the carbon footprint of its newly acquired companies in India and Turkey and climate change
targets for these businesses will be announced in due course.
The Next Three Years Matter Most
Jonathon Porritt, Founder Director of Forum for the Future, which works
with Vodafone on sustainability issues, said: "This is a significant
commitment from one of the world's largest companies. It signals to
its millions of customers around the globe that Vodafone is serious
about tackling climate change. With a simultaneous focus on the
products and services that they offer - and thus on helping their
customers to reduce their emissions - Vodafone has the opportunity to
show real leadership. 2020 may sound a long way away, but it is what
Vodafone does over the next two or three years which will determine
whether or not they hit that 50% target."
Business Momentum
Tom Delay, Chief Executive of The Carbon Trust, said "Taking early
action on reducing carbon emissions offers major opportunities for
business as it brings reduction in costs and boosts overall
reputation. We also believe it is what consumers expect and want to
see from leading businesses in the UK and abroad. More and more
companies are stepping up to the plate and making strong commitments
to cut their carbon emissions and today's announcement by Vodafone is
very welcome and is increasing evidence that business momentum is
growing on this critical issue."
Vodafone Climate Change Initiatives
Vodafone is putting its focus primarily in three areas:
- Operational - significant savings can be made by allowing a higher ambient temperature within base station cabinets, thus reducing cooling requirements. Average energy use in some base stations can be cut by more than 10% by increasing the ambient temperature by 4°C.
Technological- working with suppliers to improve the efficiency of network equipment. For example, the average energy
efficiency of power amplifiers has improved from around 9% in 2004 to 15% in 2006.
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- Use of renewable energy on-site - a number of Vodafone's operating companies have been piloting renewable energy solutions to reduce climate change impact and improve the operational performance of remote base stations. This includes the use of solar power, wind power and fuel cells.
Existing Network Projects
Some projects to reduce energy consumption have already been implemented by Vodafone across its operator network. These include:
- In Spain, Vodafone focused on increasing energy efficiency in the access network and at switching centres and has since reduced CO2 emissions by more than 6,600 tons.
- Vodafone Greece installed photovoltaic systems at 123 base stations in remote areas. These systems have generated some 3,300,000 kWh of
energy since 2001 (or 700,000 kWh of energy per year) replacing diesel consumption in the respective base stations.
- Vodafone Germany deactivated unused electricity circuit devices at all its base stations and reduced energy use by 1-5% per site. This is
now being implemented in other operating companies.
- Vodafone Portugal installed free-cooling at all its 1,100 base station sites, and increased base station room temperature to 35°C to
maximise the benefits of free-cooling with no adverse effects on equipment. Vodafone is also addressing energy consumption in offices and other network buildings.
- In the UK Vodafone says it switches off air conditioning systems and lighting when office and call centre buildings are not occupied noting that this can reduce energy consumption by as much as 10%.
- Vodafone Germany ran a solar power pilot project at its Mobile Switching Centre in Würzburg. A total of 62 rooftop photovoltaic
modules were installed on the roof of the building, at a cost of ?70,000. The system will generate some 12,000 kWh of energy, which will be fed into the public grid.
There Is Much To Do
By making this public commitment the mobile operator hopes that it will encourage others to take similar action. While the move by Vodafone is welcomed but there is much to do. The IT industry has become a significant consumer of energy, not just while the devices are running but also in their voracious consumption of raw materials and waste. Other areas that need attention in the mobile industry include the device upgrade cycle, and the abysmally low recycling rates. In addition the amount of toxic material in phones is only slowly being addressed as highlighted by Greenpeace.
As well as gaining brownie points for corporate responsibility, reducing energy consumption goes straight to the bottom line. With fuel costs continuing to rise, reducing CO2 and energy makes sound business and planetary sense.
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