Operational Efficiency
Energy use in our operations is the greatest contributor to our CO2 emissions. The network represents more than 80% of the total energy consumption and energy efficiency is our top priority.
In 2008, Telenor Group announced that it will reduce the carbon intensity of its global operations with 40 % by 2017, compared to the 2008 level. This climate target is a part of Telenor’s key performance indicators at group level. 1
Energy use in Telenor Group’s operations is the main contributor to our CO2 emissions and the network energy use represents more than 80 % of the total energy consumption.2 Telenor Group’s ambition towards 2015 is to stabilise our network’s energy consumption. In all our Business Units, management focus on finding the most cost efficient ways of ensuring greater energy efficiency. Measures include network swaps, sourcing of energy efficient technologies, infrastructure-sharing, more energy efficient data centres and energy measures related to buildings.
Further, increased use of renewable energy sources is also considered to contribute to the reduction of the CO2 footprint of our operations.
In 2012, total energy consumption in Telenor Group increased by 9% up to a total of 3,349 GWh. The associated emissions of greenhouse gases in Telenor Group increased by 2.6% up to a total of 1.147 million tonnes of CO2.3
Energy expenses make up a significant portion of the operational costs. By focusing on energy efficient solutions, Telenor can make a positive impact on the environment and deliver on its general business strategy to strengthen operational performance.
See our environment and climate key figures
1 The reduction in carbon intensity will be measured by the amount of CO2 emissions per “value added” (value added is expressed as EBITDA + employee costs).
2 The Climate KPI on Business Unit level is defined as Business Unit’s Direct Energy Consumption divided to its Revenues.
3 The International Energy Agency (IEA) has for 2012 changed its methodology for estimating country-specific indicators for CO2 emissions related to electricity production.
Initiatives
- All Telenor Business Units are focusing on energy efficiency initiatives like network modernisation, infrastructure improvements and integration of energy requirements in the procurement processes.
- Several of our business units have initiated or completed large-scale network upgrades that have resulted in energy efficiency improvements for more than 30%. In Norway, as part of the mobile network swap, 1,250 tons of old telecoms equipment has been either reused or recycled. The new telecoms equipment will reduce our energy consumption in Norway by around 15 GWh per annum, which is comparable to the consumption of 800 Norwegian homes. Telenor Serbia has demonstrated that their network renovation process during 2010/11 has resulted in energy savings in 2012 of an average of 37% per radio carrier compared to 2010.
- In 2011–12, Telenor Group Asian operations carried out a large-scale installation of conventional Free Cooling Units (FCU) to replace air-conditioners in base station cooling. Approximately 16,000 FCUs have been installed in India, Pakistan, Bangladesh, Thailand and Malaysia, with an estimated annual saving of 135 GWh of electricity and a saving of 106,000 tonnes of CO2 and USD 18.5 million in operational costs.
- In addition to energy efficiency measures on existing sites, Telenor Group supports deployment of new network equipment powered by renewable energy sources. We have already rolled out more than 100 base stations that run on solar, wind or hybrid energy sources.
Travel and transportation contributes to approximately 4% of Telenor Group’s total emissions. Therefore, we strive to provide and promote ICT-based virtual collaboration thereby reducing the need for unnecessary work-related travel. Telenor Group has a strong focus on achieving CO2 emission reductions through improvements in fuel economy, optimal logistics and road travel, and extensive use of virtual-work solutions.
Telenor’s collaboration platform
Telenor Group strongly believes that additional CO2 emission reductions can be achieved through the use of video conferences, Live Meetings, instant messaging and phone conferences instead of physical travel.
For this purpose, Telenor Group has launched a “Unified Communication” and collaboration platform. It consists of portal-based, user-generated content; PC-based multi-party chat, audio and video conferencing, Virtual Meeting capability, internal “Facebook”, and collaborative work spaces. The concept is called “Way of Work” and it has been implemented for all Telenor employees. In 2012 more than 100,000 meetings were carried out in Telenor’s global organisation using video conferencing and virtual meeting solutions instead of actual travel.
Telenor Group’s climate strategy also focuses on the environmental and climate impact of our purchases. By implementing key principles of sustainable procurement through the Group, Telenor urges its Business Units to adhere to sourcing and procurement practices that secure the purchase of energy efficient equipment.
As the purchase of new energy efficient equipment is a one of the main instruments for reaching Telenor’s CO2 emissions targets, it is crucial to establish Group-wide governance to implement sustainable procurement practices in the company.
Telenor Group requires that a Sustainability Criteria Checklist is used during the procurement process. The Sustainability Criteria Checklist requests the sourcing team to consider involving local environment experts in the procurement process as well as to check out possible suppliers for issues relating to their sustainability, such as their environmental management system, energy efficiency, waste management and hazardous substances. We report on the proportion of all signed contracts above a total value of USD 250,000 – where a specified set of sustainability criteria during the procurement process has been checked out. In 2012, approximately 56% of the procurement processes in Telenor Group had used this Sustainability Criteria framework.
Telenor Group combines its internal sustainable procurement principles with the active use of international energy efficiency standards when implementing the sustainability principles across the Business Units. Telenor Group has signed the European Code of Conduct for energy consumption in broadband equipment. By signing, Telenor Group commits to make all reasonable efforts to procure broadband equipment in accordance with the specifications to maximum power consumption, both in consumer premises and in the telecom operators’ network.
What is sustainable procurement?
- Selecting products and services that will minimize Telenor`s environmental impact.
- Evaluating purchases based on certain criteria, ranging from energy efficiency to options available for final disposal.
- Improving environmental performance and helping to achieve CO2 intensity targets.