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Telecom Italia - Eco-efficiency indicator

Added on 22-03-2013

Company

Telecom Italia

Year

2007

Business challenge

Eco-effiency is considered widely as an important approach to reduce the environmental impact by making more optimal use of resources. In short, eco-efficiency means achieving more value with lower ecological inputs. A key challenge has been finding optimal ways to measure eco-efficiency, thereby providing information to assess the way in which ecological inputs are used to meet human needs.

Description

TELECOM ITALIA has developed a specific Eco-efficiency indicator to monitor and improve the Group's energetic efficiency. The indicator is calculated as the ratio between the quantity of traffic (bit) processed by the network and the quantity of energy consumed on the whole (kWh or Joule). In order to calculate the traffic estimate, the voice and traffic data, both from fixed and mobile networks have been included in the indicator.

With reference to energy consumption Carlsberg Italia took into account industrial uses (network equipment, radio base stations, etc ) as well as civilian ones (office heating, car fuel etc.).

As a next step, the indicator can be used as a way to establish a industry-wide methodology among the different worldwide Telecom Operators.

The eco-efficiency indicator can also be used by the Financial Analysts as one of the official parameters for the evaluation/ranking of the Companies' efficiency performance.

Impact

The structure of the Eco- efficiency indicator highlights that an annual improvement can be obtained if

(1) Given the same amount of bit processed, the resource consumption has been reduced or

(2) If, given the same resource consumption, the network has been processed a greater quantity of a bit.

Challenges/Lessons learned:

The eco-efficiency indicator provides significant information about a company environmental performance. It allows assessing the way in which ecological resources are used in order to meet human needs, thereby identifying key areas for reduction initiatives.

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