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Ric Clark November 2008 Caring for the Environment Alcatel-Lucent eco-sustainability strategy
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Ric Clark

November 2008

Caring for the Environment

Alcatel-Lucent eco-sustainability strategy

2 November 2008 © Alcatel-Lucent 2008

Agenda

� 1 - Challenge and Opportunities

� 2 -Alcatel-Lucent Positioning

� 3 - Telecom Products Life Cycle Analysis

� 4 - Answering the Energy Challenge

� 5 - Conclusion

3 November 2008 © Alcatel-Lucent 2008

1Challenge and Opportunities

4 November 2008 © Alcatel-Lucent 2008

The defining Challenge of our ages

“ICTs* will be instrumental in helping to develop new, climate-friendly technologies that can help economies grow sustainably and reduce emissions in the years ahead."

Srgjan Kerim, President, UN General Assembly

Opening session of the conference “The positive impact of the ICT on the environment and climate change” 27 November 2007

Opportunity:

Greenland Ice Cap Melting

* Information Communications Technologies

Melting Polar Ice CapMelting Polar Ice CapProblem:

“Today, the time for doubt has passed. The IPCC has unequivocally affirmed the warming of our climate system,

and linked it directly to human activity.”

Challenge:

“Slowing or even reversing the existing trends of global warming is the defining challenge of our ages.”

Intergovernmental Panel on Climate Change (IPCC)

5 November 2008 © Alcatel-Lucent 2008

2002 2007 2020

0.5

0.8

1.7

-6.4

By enabling emissions reduction in other industry sectors, ICT beneficial impact is several times its footprint

Potential indirect energy savings by 2020 from:

IndustryBuildingsPowerTransport

If business-

as-usual Potential direct

telecom equipmentenergy savings by 2020

0.5

Source: McKinsey analysis 2008

ICT Carbon Footprint (GtCO2e)

Zero Growth Line

ICT has a role to Play

Examples:

• Virtual Healthcare

• De-materialization

• Energy Management

• Smart Logistics / Transport

• Enhanced Entertainment

• Virtual Education

• B2B / B2C Internet Commerce

ICT: 2% of global energy footprint today

Tomorrow: Opportunity to Switch to Positive Impact!

6 November 2008 © Alcatel-Lucent 2008

2Alcatel-Lucent Positioning

7 November 2008 © Alcatel-Lucent 2008

Reversing the eco impact trends in our domains of influence

Time

Eco-Impact

Products & Services:

� Direct � reducing life cycle eco-environmental

impact of our products & services

� Indirect ���� developing innovative solutions and capabilities that offer eco-environmental advantages

Operations:

� Reducing the eco-impact on how we operate

Employees:

� Promoting eco-responsibility and inspiring our employees to embrace the challenge

Alcatel-Lucent is transforming communications for a sustainable planet

8 November 2008 © Alcatel-Lucent 2008

� Formalized in a set of Policies

� Embedded in our Processes

� Managed by a CSR Steering Committee

� Promoted with Partners

� Recognized by Indexes

“Corporate Social Responsibility is a key component

of Alcatel-Lucent’s business strategy” Pat Russo, CEO

“SAM 2008 Silver Class” Award

in the Communication Technology Sector

Eco-sustainability as part of CSR: A business Imperative, and part of who we are

9 November 2008 © Alcatel-Lucent 2008

Examples in Operations:

Reducing eco-impact in the way we conduct business

Taking action:Taking action:

� 70% of Alcatel-Lucent production sites are certified ISO 14001

� Global EHS Management System being deployed worldwide for facilities, services, products and activities

� 76% of our overall waste recycled or recovered

� 4,5 million of hours spent on video or audio-conferences

� 2,500 pieces of equipment and 75,000 circuit packs remanufactured, i.e. more than 590 metric tons recovered from landfills

Goal: 10% reduction in total CO2 emissions from facilitiesby the end of 2010

Some examples:Some examples:

� Alcatel-Lucent in Italia replaced water provisioning system at local lake with closed circuit system.

� Multiple upgrade projects in New Jersey, USA enabled to save 1,000 tons GHG emissions annually

� At Alcatel-Lucent Marcoussis Data center:

� Alcatel-Lucent OmniSwitchnetwork equipment saved ~30% energy

� Optimized cooling system further reduced power consumption by 20%

10 November 2008 © Alcatel-Lucent 2008

3Telecom Products Life-Cycle Analysis

11 November 2008 © Alcatel-Lucent 2008

Life-Cycle Analysis dictates Eco-Design Priorities

1 - Production� Equipment Compactness

� Materials & Sourcing

� Scalability, Evolutivity

� Commoditization

3 - End-of-Life� Recycling

� E waste management

� Hazardous substances management

2 - Usage� Land & civil works impact

� Electromagnetic Environment

� Noise emissions

� Energy Efficiency

ECO-DESIGN

Energy Consumptionthe highest

carbon footprint

12 November 2008 © Alcatel-Lucent 2008

TOTAL COST OF OWNERSHIP

ENERGY CONSUMPTION = A CRITICAL PART OF OPEX

1995 2000 2005 2009

Oil Prices

?

Focus on energy to answer both short and long term challenges

ECO-SUSTAINABILITY

ENERGY

ENERGY CONSUMPTION = THE HIGHEST CARBON FOOTPRINT

1 - Production

2 - Usage

3 - End-of-Life

13 November 2008 © Alcatel-Lucent 2008

4Answering the Energy Challenge

14 November 2008 © Alcatel-Lucent 2008

Addressing energy at all network layers

ADVANCED

EQUIPMENT FEATURES

More Integration & Intelligenceusing less Energy

OPTIMIZED

SITE ENGINEERING

Less Power Wasted(thermal management, interfaces, etc.)

Alternative Energy Production & Storage

SMART

NETWORK ARCHITECTURE & ENGINEERING

More Capabilityusing Less Equipment

DEDICATED

SERVICESEnergy Efficiency Assessment, Network Transformation, etc.

15 November 2008 © Alcatel-Lucent 2008

Hardware Integration the basis

to Reduce Energy Consumption

Advanced Equipment Features

Hardware

16 November 2008 © Alcatel-Lucent 2008

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

Watt/Mbps (CO)

Alcatel-Lucent is listed in the Dow Jones Sustainability World Index (DJSI)

and has signed the UN Global Compact “Caring for Climate” initiative.

GPON

p2px10

GPON is power efficient, DSL power consumption decreases

GPON is power efficient.. DSL power consumptions decreases..

0.03

0.04

0.05

0.06

0.07

0.08

2004 2005 2006 2007

Watt/Mbps

VDSL

ADSL

DSL power consumptions decreases..

0.03

0.04

0.05

0.06

0.07

0.08

2004 2005 2006 2007

Watt/Mbps

VDSL

ADSL

17 November 2008 © Alcatel-Lucent 2008

Traffic Load

From 0% to 100%

Avoiding the “Coverage tax”

Power consumption

100%

70%

Coverage

Traffic

Min. 70% of BTS instantaneous power consumption: for service coverage

Wasted energy

Wasted money

CAN’T WE JUST TURN THEM OFF ?

Power savings from Alcatel-Lucent data

18 November 2008 © Alcatel-Lucent 2008

Smart Network Architecture & Engineering

Beamforming for Wireless Networks

• Reducing by up to 40% the number of equipment

required to cover a given geographic area

• Avoiding to waste energy in useless radio coverage

WITHOUT BEAMFORMING WITH BEAMFORMING

Smart Network Engineering

to Optimize Radio Energy Usage

19 November 2008 © Alcatel-Lucent 2008

00.00hrs 24.00hrs12.00hrs

Saved

energyNetwork

traffic

� Lowering the energy required with reduced traffic by switching-off components

� Ensuring Quality of Service when traffic/need returns

WITHOUT

Dynamic Energy Saving

WITH

Dynamic Energy Saving

Energy Consumption

Intelligence to Adapt the Energy Consumption

to the Traffic Carried

Advanced Equipment Features

Software

20 November 2008 © Alcatel-Lucent 2008

Reduce it Reduce it �������� Direct air cooling system in outdoor wireless base station cabinet eliminates need for air conditioning

Move it Move it �������� Liquid cooled cabinets dissipate heat more efficiently using less power

Use it Use it �������� Energy harvesting from waste heat

IC

Thermoelectric Module

ICHot

Cold

V

Useful electricity is generated by Thermoelectric

Module

Reducing the power

wasted to cool or heat up the equipment

Optimized Site Engineering

“No Air Conditioning”

21 November 2008 © Alcatel-Lucent 2008

Optimized Site Engineering

Alternative Energy

+TELECOM NETWORKS

ENERGY EFFICIENCY IMPROVEMENT

ALTERNATIVE ENERGIES

EFFICIENCY IMPROVEMENT

ENLARGE THE RANGE OF APPLICATION OF ALTERNATIVE ENERGIES FOR TELECOM

Source: BP Solar.

Leveraging field experience and innovation

to make renewable energy a wider reality

22 November 2008 © Alcatel-Lucent 2008

5Conclusion

23 November 2008 © Alcatel-Lucent 2008

Products & Services: a life cycle approach, with energy a key

priority

Eco-sustainability is the defining challenge of our times,

that ICT can help solve

A global approach in all our domains of influence:

products & services, operations, employees

Alcatel-Lucent is Transforming Communications for a Sustainable PLanet

Alcatel-Lucent has a unique ability to answer, through its

global portfolio, innovation capability and local reach ww

24 November 2008 © Alcatel-Lucent 2008

www.alcatel-lucent.comwww.alcatel-lucent.com/csr


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