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Energy: Alcatel case

Energy: Alcatel case. IEF European Roundtable Energy Efficiency - Knowledge Management - Progress & Limits October 28-29, 2002. Alcatel’s Mission. Complete portfolio of network solutions. Global presence. Alcatel the enabler of global communications.

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Energy: Alcatel case

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  1. Energy: Alcatel case IEF European Roundtable Energy Efficiency - Knowledge Management - Progress & Limits October 28-29, 2002

  2. Alcatel’s Mission Complete portfolioof network solutions Global presence Alcatel the enabler ofglobalcommunications Integration capabilitiesfor any network type

  3. 2001 Facts and Figures 25.35 Billion euros in sales 11.3% invested in R&D 99,000 employees (60,000 YE 2003) with over 22,000 engineers in R&D active in 130 countries

  4. Asia13% ROW17% Europe51% USA19% Sales by Segments and Geography 2001 € 25.35 Billion Space and Components12% CarrierNetworking45% e-Business14% Optics29%

  5. We Serve All Types of Customers MLEs SMEs Mobile Phones Enterprises Consumers Carriers Mobile operators ISPs Backbone SPs ServiceProviders

  6. And Serve Our Customers Worldwide These are just a few of our customers... Americas Europe Asia

  7. Energy Efficiency: Drivers

  8. Energy Issue in the Telco sector: Drivers • Regulatory • Sustainable Development Reporting: • 1 - Financial • 2 - Social • 3 - Environmental (of which Energy...) • Rating Agencies • Emission trading • “Carbon Disclosure Project” • linked with Climate Change New

  9. Alcatel’s Shared Values (Reminder) • Four core values: • customer commitment: the first priority for all of us • innovation: goes beyond technology • teamwork: behaving as a member of a single corporation • accountability: we all share the destiny of Alcatel • Through Alcatel values, we promote: • best business practices • corporate citizenship • environmental conscious … for sustainable development New

  10. Energy - CO2 emissions • Scope 1*: Direct Emissions • Fossil fuel (gas) for buildings heating • easy to monitor, but not directly linked with processes • Scope 2*: Indirect Emissions from imported Energy • Electricity only • easy to measure, but very little direct influence on production • Scope 3*: Other Sources • Product Life Cycle • Supply Chain • Goods Transportation • Business Travel & Employees commuting • almost impossible to monitor and report (*) WBCSD & WRI Guidelines used for Carbon Disclosure Project

  11. The “Phase Perspective” (Ericsson) Life Cycle CO2 divided by Products’ life cycle phases

  12. 10.000 ISDN-subscriberISTC ISTD (new) Delta • Amount of boards1250625 -50% • Mass electronics 731 kg503 kg -31% • Silicon area 0,90 m²0,52 m² -42% • Power consumption (typical) 6,6 kW 3,8 kW(at 0,05 Erl) -42% Product Design Example 1: Subscriber Board evolution • ISDN*-subscriberboard evolution (1999 - 2002) (*) Integrated Service Digital Network

  13. Product Design Example 2: Mobile Phones • Energy consumption of mobile phones during the use phase represents a great part of their global environmental impact • approx. 70 to 80 % • Mobile phones energy consumption (Chargers)can be split in two parts : • charge phase ( 5 to 10 % of time) • sleep mode ( 90 to 95 % of time) • Talk and stand by time are also indicators of mobile phone energy efficiency

  14. energy consumption while charging depends on battery specs and charger type sleep energy consumption is decreasing (Voluntary Agreement on chargers energy efficiency signed by Alcatel in 2000) Example 2: Mobile Phones charger power consumption

  15. Example 2: Mobile Phone “dematerialization” • Battery weight x stand by-time Stand by (hours) Weight (gr)

  16. Opinion

  17. Energy and the Telco sector • Current trend requesting Telco sector to report and monitor energy consumption and CO2 emissions is not “pertinent” • 70% of emissions are coming from the use phase (over several years) which is not under direct control • All Manufacturing activities are out-sourced to Contract Electronic Manufacturers (CEM), from which it is difficult to obtain relevant emissions data (risk of double counting) • the supply chain (inc. CEM) is playing an important role in the total account (25%) • Environmental Conscious Design is key • We will communicate on this specific point in our First Sustainable Development Report due April 2003 • Most of our competitors are already doing so...

  18. www.alcatel.com

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