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
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!
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%
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
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
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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
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