Environmental futures Ian Hill, Chief Sustainability Officer, Openreach

The contents of all the slides presented today are provided for guideline and discussion purposes only and represent no commitment from BT

Contents

Climate change & the ICT industryOpenreach activities Ethernet & the environment

The quest for excellenceSector Winner 2007 - 2008

-400,000 -300,000 -200,000 -100,000 todayaverage temperature of earthcarbon dioxide level in atmosphereSource: Carbon Sense

50% global reduction on 1990 levels by 2050Average world GDP growth at constant prices (1980 to 2007) = 3.6% paDecoupling of world CO2e emissions from economy (1990 to 2007) = 2.4% paNet business as usual growth of world CO2e emissions = 1.2 % pa50% reduction = 450ppm CO2 = 2oC temp rise

Chart1

381990199019901990

38.4630370371991199119911991

38.93171626611992199219921992

39.40610643841993199319931993

39.88627714281994199419941994

40.37229881611995199519951995

40.86424275351996199619961996

41.36218111891997199719971997

41.86618695551998199819981998

42.37633419661999199919991999

42.89269767622000200020002000

43.41535314052001200120012001

43.94437725842002200220022002

44.47984763322003200320032003

45.02184281362004200420042004

45.57044230562005200520052005

46.12572658412006200620062006

46.68777710432007200720072007

47.256676314247.2566763142200820082008

47.832507666446.2425225291200920092009

48.415355630145.2501330317201020102010

49.005305704344.2790407487201120112011

49.602444429443.3287886302201220122012

50.206859400442.3989294353201320132013

50.818639279741.4890255206201420142014

51.437873810240.598648635251.437873810220152015

52.064653828139.727379718449.994821900120162016

52.699071276638.874808702948.592253755320172017

53.341219219238.040534321647.229033633520182018

53.991191853437.22416391945.904057654720192019

54.649084524536.425313265944.616252907420202020

55.314993739635.643606379143.3645765820212021

55.989017181934.87867534442.14801511620222022

56.671253724634.13016014240.965583393720232023

57.361803445933.397708480239.816323928120242024

58.060767643432.680975626638.699306095858.06076764342025

58.768248849231.979624246937.613625381555.52359869142026

59.484350844431.293324246436.558402645153.09730023862027

60.209178675130.621752614435.532783410450.77702740952028

60.942838667129.964593272234.535937172948.55814704252029

61.685438441929.321536924333.567056727246.43622843822030

62.437086932628.692280912732.625357513344.407034512262.4370869326

63.197894399328.076529074931.710076981942.466513334358.6473607623

63.967972445827.473991603930.820473975940.610790037855.0876585273

64.74743403626.884384912329.955828131438.836159081651.74401853

65.5363935126.307431498629.115439293337.139076851548.603326502

66.334966601325.742859816628.298626949135.516154583745.653264168

67.143270453625.190404147727.504729677533.964151598542.8822609313

67.96142363824.649804475726.73310461332.479968829140.2794484928

68.789546170524.120806364525.98312692531.060642633137.8346182232

69.627759529423.603160838425.254189312229.70333887535.5381811236

70.476186673323.096624264724.545701510828.405347266933.3811302158

71.33495205922.600958239323.857089816227.164075956131.3550052156

72.2041816622.115929474423.187796618825.977046350429.4518593503

73.084002984721.641309688622.537279952324.84188816827.6642281903

73.974545095221.176875499721.905013054823.756334705225.9851003721

74.875938626120.722408319221.290483942522.718218309724.4078900992

75.788315804220.277694249720.693194994821.725466052422.9264113113

76.711810467219.842523984220.112662551420.776095588121.5348534215

77.646558083619.416692707619.54841652119.868211197120.2277585266

78.592695772819191919

BAU (+1.2%pa)

-2.1%

-2.8%

-4.4%

-6.1%

CO2e (Gtonnes)

Analysis and graphs

Figure from Stern report

Historic Data

1990199119921993199419951996199719981999200020012002200320042005200620072008

BT CO2e (ktonnes) (UK)$1,621$1,468$1,472$1,411$1,431$1,181$1,076$1,050$840$689$684$685

BT CO2e (ktonnes) (RoW)020406080100120140160180200220

Total BT CO2e (ktonnes)$1,621$1,488$1,512$1,471$1,511$1,281$1,196$1,190$1,000$869$884$905

BT Value Added (b)94209598999998431016410242100591022810091104831085611142

BT CO2e / Value Added0.1720.1550.1510.1490.1490.1250.1190.1160.0990.0830.0810.081

World CO2e (Gtonnes) from Stern Review3838.338.63939.339.64040.440.841.241.642.442.943.744.144.845.546.347.0

World GDP ( trillions) at current prices13.014.515.215.315.716.818.719.119.318.218.719.620.822.824.625.424.426.528.1

CO2e/GDP (Kg/)2.922.652.542.552.512.352.142.112.122.262.232.162.061.921.801.771.861.751.67

Projected Data

Modelling ParametersStandardAdjustmentModelled

World GDP Growth at Current prices5.9%0.0%5.9%pa

Reduction on 1990 World CO2e by 205080.0%0.0%80.0%

Reduction in World CO2e post 20074.2%pa

2008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

World CO2e (Gtonnes) from Stern Review47.045.043.141.339.537.836.234.733.231.830.529.227.926.725.624.523.522.521.520.619.718.918.117.316.615.915.214.614.013.412.812.211.711.210.810.39.99.49.08.78.37.97.6

World GDP ( trillions) at current prices28.129.731.533.335.337.439.641.944.346.949.752.655.759.062.566.170.074.178.583.188.093.298.7104.5110.6117.1124.0131.3139.0147.2155.8165.0174.7184.9195.8207.3219.5232.4246.1260.5275.9292.1309.2

CO2e/GDP (Kg/)1.671.511.371.241.121.010.920.830.750.680.610.550.500.450.410.370.340.300.270.250.220.200.180.170.150.140.120.110.100.090.080.070.070.060.050.050.040.040.040.030.030.030.0299.16

Reduction in World CO2e / GDP post 20079.6%pa

Modelling ParametersStandardAdjustmentModelled

Growth in BT Value Add (EBITDA)2.5%0.0%2.5%pa

Reduction in BT UK CO2e to 20168.9%pa

Growth in BT RoW CO2e to 20165.0%-1.0%4.0%pa

Reduction in all BT CO2e 2016 - 20254.0%0.0%4.0%pa

Post BT 2025 matches world trend ie7.8%pa

BT CO2e (ktonnes) (UK)68562456851747142939135632431129928727526425424423422420719117616214913812711710899928578726661565248444137353229

BT CO2e (ktonnes) (RoW)22022923824725726827829030128927726625624523622621720919217716315113912811810910092857972676257524844413835323027

Total BT CO2e (ktonnes)90585280676572969766964562560057655353151048947045143339936833931328826624522620819217716315013912811810910092857872676157

BT Value Added (b)11,14211,42111,70611,99912,29912,60612,92113,24413,57513,91514,26314,61914,98515,35915,74316,13716,54016,95417,37817,81218,25718,71419,18219,66120,15320,65721,17321,70222,24522,80123,37123,95524,55425,16825,79726,44227,10327,78128,47529,18729,91730,66531,432

BT CO2e / Value Added0.0810.0750.0690.0640.0590.0550.0520.0490.0460.0430.0400.0380.0350.0330.0310.0290.0270.0260.0230.0210.0190.0170.0150.0140.0120.0110.0100.0090.0080.0070.0060.0060.0050.0050.0040.0040.0030.0030.0030.0020.0020.0020.002

Graphs

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

BT CO2e / Value Added0.1720.1550.1510.1490.1490.1250.1190.1160.0990.0830.0810.081

0.08120.07460.06890.06370.05920.05530.05180.04870.04610.04310.04040.03780.03540.03320.03110.02910.02730.02550.02300.02070.01860.01670.01500.01350.01220.01090.00980.00880.00800.00720.00640.00580.00520.00470.00420.00380.00340.00310.00280.00250.00220.00200.0018

World CO2e/GPD adjusted to BT in 19970.2380.2160.2070.2070.2040.1920.1740.1720.1730.1850.1820.1760.1680.1560.1460.1440.1520.1420.1364

0.13640.12340.11160.10090.09130.08250.07460.06750.06110.05520.04990.04520.04080.03690.03340.03020.02730.02470.02230.02020.01830.01650.01490.01350.01220.01110.01000.00900.00820.00740.00670.00600.00550.00490.00450.00400.00370.00330.00300.00270.00240.00220.0020

0.1976744186

199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

BT CO2e (ktonnes) (RoW)02040608010012014016018020022022923824725726827829030128927726625624523622621720919217716315113912811810910092857972676257524844413835323027

BT CO2e (ktonnes) (UK)$1,621$1,468$1,472$1,411$1,431$1,181$1,076$1,050$840$689$68468562456851747142939135632431129928727526425424423422420719117616214913812711710899928578726661565248444137353229

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

CO2e/GDP (Kg/)2.922.652.542.552.512.352.142.112.122.262.232.162.061.921.801.771.861.75

1.671.511.371.241.121.010.920.830.750.680.610.550.500.450.410.370.340.300.270.250.220.200.180.170.150.140.120.110.100.090.080.070.070.060.050.050.040.040.040.030.030.030.02

Modelling ParametersGDP growthDe-couplingNet

Growth in global CO23.6%-2.4%1.2%pa

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

World CO2 emissions (Gtonnes)3838.338.63939.339.64040.408163265340.816326530641.224489795941.632653061242.448979591842.857142857143.673469387844.081632653144.814962653145.548292653146.281622653147.0149526531

3838.46303703738.931716266139.406106438439.886277142840.372298816140.864242753541.362181118941.866186955542.376334196642.892697676243.415353140543.944377258444.479847633245.021842813645.570442305646.125726584146.687777104347.256676314247.832507666448.415355630149.005305704349.602444429450.206859400450.818639279751.437873810252.064653828152.699071276653.341219219253.991191853454.649084524555.314993739655.989017181956.671253724657.361803445958.060767643458.768248849259.484350844460.209178675160.942838667161.685438441962.437086932663.197894399363.967972445864.74743403665.5363935166.334966601367.143270453667.96142363868.789546170569.627759529470.476186673371.33495205972.2041816673.084002984773.974545095274.875938626175.788315804276.711810467277.646558083678.5926957728

0.9786663602

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

BAU (+1.2%pa)3838.46303703738.931716266139.406106438439.886277142840.372298816140.864242753541.362181118941.866186955542.376334196642.892697676243.415353140543.944377258444.479847633245.021842813645.570442305646.125726584146.687777104347.256676314247.832507666448.415355630149.005305704349.602444429450.206859400450.818639279751.437873810252.064653828152.699071276653.341219219253.991191853454.649084524555.314993739655.989017181956.671253724657.361803445958.060767643458.768248849259.484350844460.209178675160.942838667161.685438441962.437086932663.197894399363.967972445864.74743403665.5363935166.334966601367.143270453667.96142363868.789546170569.627759529470.476186673371.33495205972.2041816673.084002984773.974545095274.875938626175.788315804276.711810467277.646558083678.5926957728

-2.1%47.256676314246.242522529145.250133031744.279040748743.328788630242.398929435341.489025520640.598648635239.727379718438.874808702938.040534321637.22416391936.425313265935.643606379134.87867534434.13016014233.397708480232.680975626631.979624246931.293324246430.621752614429.964593272229.321536924328.692280912728.076529074927.473991603926.884384912326.307431498625.742859816625.190404147724.649804475724.120806364523.603160838423.096624264722.600958239322.115929474421.641309688621.176875499720.722408319220.277694249719.842523984219.416692707619

-2.8%51.437873810249.994821900148.592253755347.229033633545.904057654744.616252907443.3645765842.14801511640.965583393739.816323928138.699306095837.613625381536.558402645135.532783410434.535937172933.567056727232.625357513331.710076981930.820473975929.955828131429.115439293328.298626949127.504729677526.73310461325.98312692525.254189312224.545701510823.857089816223.187796618822.537279952321.905013054821.290483942520.693194994820.112662551419.54841652119

-4.4%58.060767643455.523598691453.097300238650.777027409548.558147042546.436228438244.407034512242.466513334340.610790037838.836159081637.139076851535.516154583733.964151598532.479968829131.060642633129.70333887528.405347266927.164075956125.977046350424.84188816823.756334705222.718218309721.725466052420.776095588119.868211197119

-6.1%62.437086932658.647360762355.087658527351.7440185348.60332650245.65326416842.882260931340.279448492837.834618223235.538181123633.381130215831.355005215629.451859350327.664228190325.985100372124.407890099222.926411311321.534853421520.227758526619

1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050

BAU (+1.2%)3838.46303703738.931716266139.406106438439.886277142840.372298816140.864242753541.362181118941.866186955542.376334196642.892697676243.415353140543.944377258444.479847633245.021842813645.570442305646.125726584146.687777104347.256676314247.832507666448.415355630149.005305704349.602444429450.206859400450.818639279751.437873810252.064653828152.699071276653.341219219253.991191853454.649084524555.314993739655.989017181956.671253724657.361803445958.060767643458.768248849259.484350844460.209178675160.942838667161.685438441962.437086932663.197894399363.967972445864.74743403665.5363935166.334966601367.143270453667.96142363868.789546170569.627759529470.476186673371.33495205972.2041816673.084002984773.974545095274.875938626175.788315804276.711810467277.646558083678.5926957728

-4.3%47.256676314245.244600173643.318193417941.473808449939.707952978138.017283404836.398598494334.848833311933.365053420831.944449325130.584331150829.282123552128.035360835326.841682290125.698827719724.604633160723.557026786522.554024983621.593728596220.674319329919.79405630918.951272780218.144372956317.371828995116.632178106215.924019781415.246013142714.596874403413.975374437513.380336452312.810633759912.265187644211.742965318311.242977968810.764278883610.30596165949.86715848549.44703849999.04480621778.6597000238.29099072827.93798019237.6

-5.3%51.437873810248.702954854146.113449795243.661627069441.340166194739.142135914737.060973503335.090465170533.224727509431.458189930229.785578027928.20189783426.702420906425.28267021123.938406754922.665616929821.460500528220.319459397319.239086695918.216156722217.24761528316.330570574715.462284548914.640164737413.861756512213.124735756112.426901923611.766171471211.140571635610.54823454449.98739163889.45636839288.95357931438.47752321068.02677870637.6

-7.8%58.060767643453.525410446149.344328015445.48984654241.936453927738.660630925935.640695471332.856659171330.290095005927.924015362625.742759599123.73189038821.878098158820.169113004518.593623469317.141201680115.802234326314.567859031313.42990569412.380842412211.413725630510.52215418249.70022692178.94250366438.24396918057.6

-10.5%62.437086932655.886158981250.022557411144.774167621640.076441308835.87160260732.107937520728.739157910725.723832210723.024875873620.609095279918.446779500116.511334888914.778958018813.228342928711.840419088910.59811685839.48615755068.49086552627.6

Analysis and graphs

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BT CO2e / Value Added

World CO2e/GPD adjusted to BT in 1997

BT CO2 UK data

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BT CO2e (ktonnes) (RoW)

BT CO2e (ktonnes) (UK)

BT CO2 RoW data

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CO2e/GDP (Kg/)

CO2e / unit GDP (Kg/)

IMF World DGP data

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Chris Tuppen:estmated - need actual 2007 number

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BAU (+1.2%pa)

-2.1%

-2.8%

-4.4%

-6.1%

CO2e (Gtonnes)

Stern graph

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BAU (+1.2%)

-4.3%

-5.3%

-7.8%

-10.5%

CO2e (Gtonnes)

BT Financials

BT Carbon Dioxide (CO2 equivalents) ModelBase YearBLUE = figure that has been revised (April 2008 _ Jack Jenkins AKC1X)

1996/97 (Base)1997/981998/991999/002000/012001/022002/032003/042004/052005/062006/072007/08Target

Emission SourceAmount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)Amount (kg)COMMENTSREFERENCE

SCOPE 1

Stationary Combustion

Oil Combustion - Electricity Generation12,078,45812,078,45812,078,45812,078,45812,078,45812,078,4587,356,17416,846,20012,033,0006,849,1373,504,1421,661,878

Gas Combustion107,947,06495,603,643103,504,42997,242,83693,090,35385,294,04089,218,62590,162,96079,059,98481,589,34969,395,01864,465,045CO2 factor revised from 0.19 to 0.185 tCO2/MWhUpdated Defra Company Reporting Guidelines (2007) (Annex 1)

Oil Combustion - Heating66,778,05450,245,93939,867,28728,506,39831,273,82321,950,65518,672,15815,740,56214,410,16110,383,61810,095,46010,512,817CO2 factor revised from 0.25 to 0.249 tCO2/MWh; ASSUME 'Oil' = 'Diesel'Updated Defra Company Reporting Guidelines (2007) (Annex 1)

Refrigeration Gases (HFCs and SF6 only)500,000500,000500,000503,100782,4801,126,3141,075,614886,0042,406,8941,433,9983,240,4102,731,592

Commercial Fleet Diesel167,232,000189,208,000177,004,765175,799,622165,411,269166,479,057146,286,919131,282,272126,699,464129,340,509125,686,194124,124,316

Commercial Fleet Petrol18,480,0003,927,000806,584892,1651,730,0121,491,1422,115,1459,951,1759,603,7995,933,9945,162,533660,928

Company Car Diesel24,021,00032,130,00010,655,00011,996,4726,539,1836,120,7167,794,7788,182,97311,153,47315,392,85315,937,59423,061,808

Company Car Petrol16,296,0009,312,00028,387,40834,668,71530,378,25738,127,97125,238,68525,513,06817,303,09112,072,6969,273,4866,009,163

Total Scope 1 Emissions413,332,576393,005,040372,803,931361,687,766341,283,835332,668,352297,758,098298,565,214272,669,866262,996,155242,294,837233,227,548

SCOPE 2Purchased Electricity

Purchased Electricity1,149,604,8901,017,544,0071,037,008,682986,809,8311,032,726,057780,623,897728,452,575696,183,145506,276,419372,042,552383,736,997390,231,795Note CO2 from standard & CHP sourced electricity has been amalgamated into a single figure for electricity purchased (in line with changes to analytical structure)

CO2 Factors for CHP revised from 0.258 to 0.295

Total Scope 2 Emissions1,149,604,8901,017,544,0071,037,008,682986,809,8311,032,726,057780,623,897728,452,575696,183,145506,276,419372,042,552383,736,997390,231,795

Combined Scope 1 & 2 Emissions1,562,937,4661,410,549,0471,409,812,6131,348,497,5981,374,009,8921,113,292,2491,026,210,674994,748,360778,946,285635,038,706626,031,834623,459,342

SCOPE 3Homeworker Emissions001,798,0282,429,7853,306,1535,820,7516,154,4447,303,1948,066,4799,014,6426,717,0745,751,895

Cars on BT Business (Diesel)864,094864,094864,094975,732794,318822,231581,916600,521600,8261,805,4501,642,3092,502,607

Cars/Motorcycles on BT Business (petrol)4,882,1184,882,1184,882,1184,981,9184,710,1254,954,3113,508,0963,584,3613,785,8671,420,4771,033,503805,521

Refrigeration Gases (CFCs and HCFCs only)13,074,38913,074,38915,568,10514,802,6928,852,36910,186,3667,534,4346,727,7677,763,6624,375,8176,388,1244,517,461

Rail travel11,454,80311,454,80311,454,80311,454,80311,331,22411,159,65311,873,53212,168,78213,484,61114,594,06113,826,49515,161,055

Air Travel (short haul)7,861,9567,861,9567,861,9567,861,95610,375,1947,666,2515,544,4244,711,5836,006,1937,553,8337,328,4366,975,822

Air Travel (long haul)8,098,2238,098,2238,098,2238,098,22314,674,1895,638,3003,982,1827,000,8316,029,2847,864,5278,802,48711,296,724

Hire Cars (Diesel)904,141904,141904,141904,14123,954943,2271,745,2431,163,2092,670,3622,085,5712,896,1574,655,901

Hire Cars (Petrol)10,589,62610,589,62610,589,62610,589,6262,888,25920,154,4028,726,21612,316,40812,777,3915,409,0099,340,8509,690,058

Total Scope 3 Emissions57,729,35057,729,35062,021,09462,098,87756,955,78467,345,49249,650,48755,576,65561,184,67554,123,38657,975,43661,357,043

Total CO2 emissions (kgs)1,620,666,8161,468,278,3971,471,833,7071,410,596,4741,430,965,6761,180,637,7421,075,861,1611,050,325,014840,130,960689,162,092684,007,270684,816,385324,133,363

Source: Invoices, BT vehicle database, BT refrigerants database, BT expenses unit, BT travel management, DETR, AEAT NETCEN

Notes: 1. Included in company car data

2. Data not available

Reduction0%9%9%13%12%27%34%35%48%57%58%58%80.00%

Target (2016)

Total CO2 emissions GROSS (kgs)1,620,666,8161,468,278,3971,471,833,7071,410,596,4741,430,965,6761,458,742,5521,424,756,6471,424,177,7751,452,567,8401,456,567,7761,455,249,3981,468,152,503

% Reduction (GROSS)0%9%9%13%12%10%12%12%10%10%10%9%

KEY

GREEN = Changed by Leven, Jenkins, Whitaker (30Apr08 - 01May08)

BLUE = Sourced From Chris Wade's sheet "Intensity Target Final"

YELLOW = As in Steve Marsden sheet

603048805:Note methodology has changed to being based on oil consumption

Nominal amount added to emissions as the amount of HFCs installed. Additionally, standard cooling units containing HFC R407c not introduced in siginificant numbers until 02/03.

Nominal amount added to emissions as the amount of HFCs installed. Additionally, standard cooling units containing HFC R407c not introduced in siginificant numbers until 02/03.

Nominal amount added to emissions as the amount of HFCs installed. Additionally, standard cooling units containing HFC R407c not introduced in siginificant numbers until 02/03.

Total CO2 Emissions from International Operations =179,874,931252,528,447

ElectricityFactorElectricity Kg CO2GasFactorGas Kg CO2OilFactorOil Kg CO2Travel

kWhSource GHG ProtocolkWhSource DEFRAlitresSource DEFRAAir km DomesticFactor Source DEFRAAir miles Domestic CO2Air km short haulFactor Source DEFRAAir miles short haul CO2Air km long haulFactor Source DEFRAAir miles long haul CO2Car km PetrolFactor Source DEFRACar Petrol Kg CO2Car km DieselFactor Source DEFRACar Diesel Kg CO2Hire Car km PetrolHire Car Petrol Kg CO2Hire Car km DieselHire Car Diesel Kg CO2no of employeestravel CO2 per employeestimated traveladjustment

America63,643,0000.57636,658,3682,466,1150.185456,2312.67400.1700.1400.1200.21000.19900.21000.1990366914067862.88637814,067,863

Argentina0.31700.18502.67400.1700.1400.1200.21000.19900.21000.1990119456275.738206318456,276

Australia533,6720.942502,7190.18502.6740343,5970.1759,16750,3850.147,1608,091,4290.12931,3230.21000.19900.21000.1990158605811.484341161-391,839

Belgium4,313,3080.2741,181,8461,336,7710.175233,6013,6002.6749,6260.1700.1400.120106,1510.21022,23916,535,3710.1993,285,5780.21000.19905932273710.1912298-1,011,868

Brazil0.08500.18502.67400.1700.1400.1200.21000.19900.21000.19906322423245.937364652,423,246

China179,1860.851152,4870.18502.67400.1700.1400.1200.21000.19900.21000.1990138529126.486323293529,126

Columbia1,243,7280.121150,4910.18509972.6742,666114,1860.1719,66360,8840.148,6520.120130,3910.21027,3170.19900.21000.19900-28,314

Costa Rica26,7720.0143750.18502.67400.1700.1400.1200.21000.19900.21000.199000

El Salvador78,4920.27521,5850.18502.67400.1700.1400.1200.21000.19900.21000.199000

France4,055,8130.087352,8560.18501,7002.6744,5460.1700.1400.1200.21000.19900.21000.1990273810498176.228646210,498,176

Germany78,124,8340.45335,390,5500.1850110,0002.674294,1403,089,2390.17531,9674,548,4690.14646,3373,984,0590.12458,5650.210022,000,0000.1994,371,4000.21000.199015673,8346008269.59470

Guatemala0.43400.18502.67400.1700.1400.1200.21000.19900.21000.199000

Honduras TGU and Honduras SPS0.45100.18502.67400.1700.1400.1200.21000.19900.21000.199000

Hong Kong288,9260.830239,8090.18502.67400.170218,0880.1430,9901,628,3070.12187,4180.21000.19900.21000.1990149571303.235233121352,895

Hungary366,1090.401146,8100.18502.67400.170480,4800.1468,27640,3200.124,6410.21000.19900.21000.19902911115766.721159991,042,850

India2,053,4300.9421,934,3310.18502.67400.1700.1400.1200.21000.19900.21000.19904551744583.704906511,744,584

Ireland95,238,0140.41039,047,5865,373,7170.185994,138723,6952.6741,935,1600.1700.1400.120351,2590.21073,5892,217,1360.199440,5450.21000.19909573669377.155155013,228,832

Italy32,594,4000.45514,830,4522,470,4060.185457,0252.67400.1700.1400.1200.21000.19900.21000.199016776430037.083798286,430,037

Korea0.44300.18502.67400.1700.1400.1200.21000.19900.21000.199000

Malaysia0.53200.18502.67400.1700.1400.1200.21000.19900.21000.199000

Netherlands31,003,2650.44013,641,4370.18502.67400.1700.1400.1200.21000.19900.21000.199013665237585.364620425,237,585

Nicaragua0.55700.18502.67400.1700.1400.1200.21000.19900.21000.199000

Panam0.26600.18502.67400.1700.1400.1200.21000.19900.21000.199000

Peru0.20600.18502.67400.1700.1400.1200.21000.19900.21000.199000

R. Dominicana0.58600.18502.67400.1700.1400.1200.21000.19900.21000.199000

Singapore285,5360.526150,1920.18502.67402,3080.1739721,7960.143,0977,047,3870.12811,1540.21000.19900.21000.1990239916385.726313529101,737

Spain51,869,1280.38319,865,8760.18502.67400.1700.1400.120254,6130.20852,8320.19900.21000.19909833769067.652578243,769,068

Sweden0.05100.18502.67400.1700.1400.1200.21000.19900.21000.1990117448607.238404531448,607

Switzerland0.02400.18502.67400.1700.1400.1200.21000.19900.21000.1990208797523.979385833797,524

Taiwan0.42000.18502.67400.1700.1400.1200.21000.19900.21000.199000

Non Annex I totals2,826,29204,546099,267192,0590000

Annex I totals161,269,0262,140,9952,238,927591,532656,5942,201,043148,6608,097,52300

TOTALS164,095,3182,140,9952,243,473591,532755,8612,393,102148,6608,097,5230049,696,384

Note 1 -

Note 2 -

Note 3 -

Steve Marsden:Except where emissions are given on suppliers' bills or where national government guidelines exist.

Steve Marsden:Except where emissions are given on suppliers' bills or where national government guidelines exist. Defra guidelines are at http://www.defra.gov.uk/environment/business/envrp/pdf/conversion-factors.pdfGross CV used as per current guidelines.

Steve Marsden:Looks far too low compared to other countries, especially considering the number of people in-country, Nutley etc.

Steve Marsden:Reported therms converted to kWh by multiplying by Defra therm factor and dividing by Defra kWh factor

Steve Marsden:Calculated from CO2e where given in suppliers bills and from Australian government factors.

Steve Marsden:From country report

Steve Marsden:From country report

Steve Marsden:From bill

Steve Marsden:Converted to km

Steve Marsden:Converted to km

Steve Marsden:Estimate for Q4

Steve Marsden:From Procurement return

Steve Marsden:Company cars + hire cars

Steve Marsden:From Procurement return

Steve Marsden:kWh calculated from cu m in country report using conversion factor at http://www.carbontrust.co.uk/resource/energy_units/default.htm

Steve Marsden:Reported data suspect - adjustment made based on assumption that renewable energy for networks is 31,542,578 not 315,425,778.

Steve Marsden:IEA factor used as this includes the 20.6% renewable in the standard supply contract

Steve Marsden:DEFRA figure for average car, unknown fuel

'Other Asia' factor in GHGP

Steve Marsden:Countries not listed as "developed" in Annex I to UNFCCC

Steve Marsden:Countries listed as "developed" in Annex I to UNFCCC. Annex I countries are also listed in Annex B to the Kyoto protocol

IMF World GDP Data

Subject DescriptorUnitsScale1980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007Average

Gross domestic product, constant pricesAnnual percent change2.22.21.134.83.83.73.94.73.82.91.62.42.43.83.74.14.22.73.84.82.53.145.34.85.45.23.6

Gross domestic product, constant pricesAnnual percent change (market exchange rates)1.720.72.84.73.63.33.54.63.82.811.21.232.93.23.52.13.14.11.51.92.63.93.33.83.5

U.S. dollarsBillions11,781.2011,980.4411,819.2312,112.6912,490.0212,899.3315,233.3017,460.8119,559.8120,543.1722,813.1724,003.6724,182.0124,733.5026,579.6829,507.9730,201.3830,078.5029,816.0630,924.8031,774.5431,558.6132,833.8236,881.7341,451.5744,744.6248,245.2053,352.35

Gross domestic product, current pricesAnnual percent change1.7%-1.3%2.5%3.1%3.3%18.1%14.6%12.0%5.0%11.0%5.2%0.7%2.3%7.5%11.0%2.3%-0.4%-0.9%3.7%2.7%-0.7%4.0%12.3%12.4%7.9%7.8%10.6%5.9%

USD / exchange rate (av for cal year)from http://www.hmrc.gov.uk/exrate/usa.htm1.57831.57831.57831.57831.57831.57831.57831.57831.56191.6381.65731.61811.51631.44011.50231.63481.83181.81951.8424

Gross domestic product, current pricesUKBillions13016.010897801414454.267249572315208.559842868915321.554837483415670.975099790916840.70202116218696.046379015419135.386174998419257.634931813818202.722832722818659.747782537919636.944564612820812.90641693622799.680577737724550.176396192525355.743821874224426.585871820126515.636163781328958.0709943552

Global CO2e (Stern)TonnesGiga

UK datahttp://www.statistics.gov.uk/STATBASE/tsdataset.asp?vlnk=208&More=Y

195619571958195919601961196219631964196519661967196819691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006

UK Gross domestic product, market pricesmillion20956221052305024346259742740428691303663316235802380994019143530468835155457508643857407483859105943125322145812168090197774231174253563277720303576325323356050382817421559470748517075560887589739614776645500684067723080768905815881865710911945958931100329710557931118245118429612339761303573

Annual percent change5.5%4.3%5.6%6.7%5.5%4.7%5.8%9.2%8.0%6.4%5.5%8.3%7.7%10.0%11.5%12.0%15.0%13.2%26.3%18.3%16.3%15.3%17.7%16.9%9.7%9.5%9.3%7.2%9.4%7.5%10.1%11.7%9.8%8.5%5.1%4.2%5.0%6.0%5.7%6.3%6.1%6.1%5.3%5.2%4.6%5.2%5.9%5.9%4.2%5.6%8.7%

BT Value Added Calculation and other financials

Financial Year199719981999200020012002200320042005200620072008

BT Turnover( UKGAAP - pre 2005) Revenue ( IFRS)(m)173791741118223197332690622380201821891418429195142022320704

BT No. of employees12750011780011500012080011680010860010470099900102100104400106200

Total Operating Profit (m)3209346934633172-370-1860290528362764263327132895

Depreciation (m)22652395256824573045368030112921269426342536

Amortisation and impairment (of goodwill and intangible assets)(m)737117893733522415150250384

EBITDA (m)56425681612861866095598258095813553755175633

Employee Costs (m)37783917387142834069426042504415455449665223

Value Added (m)94209598999998431016410242100591022810091104831085611142

Calculations of VA below:-

EBITDA (before specific items) from Ann Rep5774574858095813553755175633

EBITDA (calculated) defined as the group profit (loss) beforedepreciation, amortisation, finance expense and taxation.5657568161285884

Depreciation2265239525682457

Net finance expense (interest payable- interest receivable)189310286327

Profit before goodwill amortisation, exceptional items and taxation3203297632743100

Calculation of VA from components:-

EBITDA564256816128588460955982580958135537551756335784

staff costs377839173871395940694260425044154554496652235358

Value Add94209598999998431016410242100591022810091104831085611142

DTI Value Add figures (m) from their database10360960810164101751041510359

Calculation of VA using DTI calculator932598529919102487857101521019010187101621048310856

P2 (Wealth creation efficiency)154.3156.1154146.7110.4127.9140.3138.9140.2137.9139.9

71176432

10081

199719981999200020012002200320042005200620072008

BT value added94209598999998431016410242100591022810091104831085611142

trend line94209542.469666.511989792.176635749919.474932004610048.428106120710179.057671500210311.385421229710445.433431705710581.224066317910718.77997918

1.3%0.0263448784

1.2%

Dave Allan:2170m for wireless deducted from total turnover

Dave Allan:2760m for wireless deducted from total

Dave Allan:2262m fore wireless deducted from toatal

Dave Allan:UKGAAP turnover 19031m

Chris Tuppen:= profit + dep + am + imp

Dave Allan:220m BT Wireless EBITDA subtracted from published figure of 6315m

Chris Tuppen:EBITDA + empl costs

Dave Allan:P2, the value added output in created by each input of labour costs and depreciation

Dave Allan:These figs are obtained if put -ve profit figure in the calculator

Dave Allan:These figs are obtained if put -ve profit figure in the calculator

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trend line

Total greenhouse gas emission pathways2015 peakAnderson & Bows. 2008 Philosophical Transactions A of the Royal Society. 366. pp.3863-3882Emissions of greenhouse gases (GtCO2e)Year2000202020402060208021000204060802020 peak2025 peak

The weather is changingAverage temperatures rising, with more extreme heat waves Rainfall patterns are changing with increased risks of floodingGround conditions are changing (landslides, subsidence and heave)Glaciers are meltingPermafrost is thawingSea levels are risingStorm surge heights are increasingIntensity of storms is increasing

Global value of saved energy and carbon = >640b pa by 2020www.smart2020.orgThe ICT industry & climate changeRisk & opportunity

ICT industry & climate changeCarbon reduction commitmentMandatory UK carbon trading system Large potential penalties (and rewards) based on energy consumption performance - public league tables; Applies to organisations with half hourly metered electricity, and who consumed over 0.5m equivalent in 2008 - 5,000 UK businesses;Letters from the Environment Agency in July 2009 to billing addresses of relevant properties, asking organisations to identify whether or not they qualify;Commences in April 2010, but is based on billable energy consumed during calendar 2008 and requires preparation now

Openreach emissions reduction Targeted activities

Sustainability Emission reduction Fleet improvements Waste reduction Responsible product development

Sustainability: Hierarchy of needsCorporatereputation& retentionDisruptive marketinnovation &competitive advantagePhysical plant & infrastructure adaptationLegal compliance & regulation EU Electronic Waste Directive 2002 UK Climate Change Act 2008 EU Emissions Targets 2020

Emissions & wasteA whole ecosystem 2. Less demand created by re-use of existing products1. Less material shipped3. Less product deliveries4. Less gas used to shrink5. Fault savings = less truck rolls = less co26. Re-use = less landfill

EmissionsNot a load of hot air!23,500 vehiclesOver 200,000,000 miles a yearOver 30,000,000 litres of fuel4-6 tonnes CO2 per annum150 visits and c400 per tonne

Improving our fleetExisting fleetSmaller, lighter and more economical vehiclesNew, lighter vehicle racking and equipmentFor every 100kg change in vehicle weight, fuel consumption rises by 0.7l per 100kmRoad speed limiters10% fuel challenge

Low carbon fleet feasibilityElectricDiesel electric hybrid30% Bio Fuel2-Man Tonner

Openreach wasteA few throwawaysBT total 80k tonnes pa >25% via TECs

Total waste is reducing & recycling % has doubled000 tonnes26%34%42%42%46%

Responsible product developmentConnectivity services: environmental benefits More accurate testing means less visits

Potential to offer CPs access and managed control of service network termination electronics

Reduced power consumption lowers costs

EBD moves Backhaul supply from individual point-to-point services with a per service multiple set of electronics and associated per service fibre deployment to a shared infrastructure model

EAD Aggregation - plans to offer multiple circuit Tails through common hub site electronics and individual handover electronics

EAD Flex - active electronics at the end user site 150 fewer visits = 1 tonne of co2 emissions less

Removes the need for CPs to deploy additional electronics

and co2!

Should lead to a lower industry footprint

Reduces units produced and overall power consumption

Should consume far less power than EAD electronics

SummaryEnvironmental impacts are important considerations Underestimating them will impact business success Our Connectivity Services portfolio evolution is already part of this futureTo make a difference we need our customers on board

**

changes of this speed and magnitude are unprecedented to our knowledge, aside from large meteorite impacts.

Peter Barrett, Antarctic Research Centre, New Zealand

Wedge = >13 years at 2008 rates2020 peak = 10%pa reductionSince the Thames Barrier was built in 1983 to protect London from flooding, it has been raised 55 times against tidal surges in the period to 2005 of which 28 have occurred in the last five years.

2080 S England Mean warming +2-3.5C24hr average >30C once every 10 days*EAD) allows CPs to test the Openreach supplied service that in turn will prove any faults on or off our network. In doing so, wasted engineering visits for spurious faults will be massively reduced - which will in turn reduce wasted van visits. Every 150 visits saved avoids 1 tonne of co2.EAD has the potential to offer CPs access and managed control of service network termination electronics in order to remove the need for them to deploy additional electronics for the sole purpose of managing our Openreach services / their end-to-end services. These electronics incur power consumption and create heat for the sole purpose of replicating the same functionality that can exist in the Openreach equipment that sits by its side.Ethernet Backhaul Direct (EBD) has moved Openreachs supply of Backhaul from individual point-to-point services with a per service multiple set of electronics and associated per service fibre deployment to a shared infrastructure model. By defining a network topology to be shared by all of industry we have all made a positive contribution to a reduction in the UKs communications backhaul carbon footprint. EAD Aggregation - plans to offer multiple circuit tails through common hub site electronics and individual handover electronics. This crudely equates, for say 10 CP end user links, a reduction from 20 units of electronics to 12 units a reduction in units of 40%. EAD Flex will offer the same generic benefits as EAD Aggregation active electronics at the End User site should consume far less power than EAD electronics.