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- Energy Management
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In 2013, we continued our three-pronged approach to guide our efforts: company-wide energy efficiency initiatives, collaboration and alternative energy.
In 2013, we implemented 4,467 projects that totaled an annualized savings of $40 million. We estimate that these projects will result in approximately 335.5 million kWh annualized energy savings. This is equivalent to 231,317 metric tons of CO2-e, which is itself equivalent to the annual emissions of 48,500 passenger vehicles and the electricity used to power 21,000 houses annually, according to the EPA GHG Equivalencies Calculator.
In 2008, we established an intensity metric to measure our electricity usage as compared to our network traffic growth. We did this to show progress in our efficiency efforts at a time when heavier network demands are driving higher electricity use.
In 2013, our energy intensity as measured by MWh electricity/Petabytes network traffic network traffic was 233.
Here is our progress to date:
Our energy intensity as measured by MWh electricity/$ billion revenue was 114,686.
By the end of 2013, AT&T was proud to report its success in reducing electricity consumption relative to data growth by 64 percent (baseline 2008). We set a new goal to reduce the electricity consumption of our company relative to data growth on our network by 60 percent by 2020 (baseline 2013).
As the foundation of our energy management tracking program, we centrally process all of our utility invoices and extract the energy consumption data from the invoices to manage the program. This energy information is available to all of the internal network operators and real estate managers — who we call the Energy Champions. This accessibility and transparency drive accountability. The Energy Team is also able to benchmark performance, set expectations and see trends over time.
In addition to collecting data from invoices, audits are performed quarterly at our largest 1,000 facilities.
This data is input into the Energy Scorecard, which generates easy-to-understand “grades” at our top 1,000 energy-consuming facilities and 1,000 retail locations. The “grades” are based on energy consumption and activity, including initiatives attempted and training related to energy efficiency projects. The data also allowed us to enter more than 1,300 unique properties — including our top 1,000 facilities — in the ENERGY STAR® Portfolio Manager.
At the end of 2013, our alternative energy portfolio included 4.4 megawatts (MW) of solar installations and an additional 15.4 MW of clean, onsite fuel cell power from Bloom Energy Servers, for a total alternative energy capacity of 19.8 MW. These sources of power will produce 134.6 million kWh annually, which is equivalent to the electricity use of over 8,465 homes for a year, per the EPA Equivalencies Calculator. We also continue to participate in Austin Energy’s GreenChoice alternative energy program.
In 2013, two solar systems came online in New Jersey, providing a combined 847 kW. Due to our business needs, regulatory and financing structures, our efforts in solar have been focused in California and New Jersey.
- The 412 kW Freehold, N.J. system will produce 490,000 kWh of electricity annually
- The 435 kW Middletown, N.J. system will produce 500,000 kWh of electricity annually
In 2013, AT&T and Bloom Energy Corporation installed Bloom Energy servers at 11 additional AT&T sites in California and Connecticut. By year end 2013, AT&T, the first telecommunications service provider to use Bloom Energy Servers, had become Bloom Energy's largest non-utility customer. The solid oxide fuel cell technology provides clean, reliable, affordable onsite power that reduces CO2 emissions by approximately 50 percent compared to the grid and virtually eliminates all SOx, NOx and other harmful smog forming particulate emissions.
In 2014, under AT&T's third contract with Bloom, 7,900 kW of capacity will be installed at eight additional sites in California, New York and New Jersey.
We are always exploring collaborative relationships to expand our alternative energy portfolio. In Austin, Texas we have continued our involvement with Austin Energy’s GreenChoice alternative energy program, through which we purchase 10 percent of our electricity consumption for all AT&T facilities in the area. This effort will help us avoid 7.2 million kWh of fossil fuel-generated electricity each year.
Rocky Mountain Institute
We worked with Rocky Mountain Institute (RMI) on their Portfolio RetroFit Challenge. The challenge serves as a vehicle through which companies and RMI can collaborate on the investigation and implementation of deep energy efficiency measures across office buildings. We openly share the results with others that may benefit from the experience.
Environmental Defense Fund
For the fourth year, we participated in the EDF Climate Corps program, an initiative launched by Environmental Defense Fund to help leading companies shave operational costs and reduce emissions by identifying large-scale energy efficiency opportunities. In 2013, we hosted two Climate Corps fellows. One helped investigate vendor solutions for installing energy-monitoring dashboards at more than 1,000 facilities. The other continued work begun in 2012, focusing on methods and strategies for reducing water use in our buildings' cooling towers.
City of Chicago
In 2012, we joined Retrofit Chicago’s Commercial Building’s Initiative to reduce energy use at our downtown Chicago facility by 20 percent within the next five years. This will also enhance our office space as part of an overall goal to retrofit 50 percent of commercial and industrial building stock. To date, this initiative has resulted in a 20 percent energy reduction.
Read more about our energy management programs.
We are committed to following the most stringent environmental compliance laws applicable to our operations. When conducting operations abroad, we abide by U.S. environmental compliance laws if they are more rigorous than the laws in the country where we are conducting business. Our operating companies had one significant environmental compliance-related enforcement action (defined as those actions that resulted in sanctions equal to or exceeding $100,000) in 2013.
AT&T has a strong Environmental Management System - and it starts with an Environment, Health & Safety Policy signed by AT&T Chairman and CEO Randall Stephenson. Our Executive Environmental Council, which is comprised of senior leaders from across AT&T's business units, is charged with implementing this policy. The Council helps ensure AT&T's environmental compliance and works to identify additional areas for improvement.
AT&T has adopted an Environment, Health and Safety (EHS) Management System based on the principles of International Standards Organization (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001. Please see our comparison table for alignment.
The EHS Management System provides a framework for AT&T to systematically manage its environmental risks and health & safety hazards, which will continually improve our operations, performance, and maintain the highest levels of commitment to the health and safety of our employees and the protection of our environment.
This system is intended to be used by AT&T employees, customers, and a range of other parties for the purpose of implementing the six elements of the management system to ensure compliance with external and internal objectives:
- General Requirements: As mentioned above, our Environment, Health and Safety (EHS) Management System is based on the principles of International Standards Organization (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001.
- Environment, Health & Safety Policy: The AT&T Environment Health and Safety Policy is communicated throughout the enterprise, commits us to achieving compliance with EHS laws and regulations, continually improving our management systems, and achieving other non-regulatory-related EHS goals.
- Planning: We identify the potential hazards, risks and impacts on the environment associated with our operations. Then we design and prioritize programs and processes to prevent or mitigate potential hazards and risks. Our planning involves establishing objectives and targets for evaluating potential EHS performance. We manage compliance by conducting job hazard analyses and occupational risk assessments; implementing a Management of Change (MOC) process; implementing business unit EHS Plans; and analyzing audit and assessment data.
- Implementation & Operation: We implement these plans by assigning clear responsibility and accountability for EHS performance, defining clear roles and responsibilities within the EH&S Organization. We train AT&T employees and communicate EHS expectations to our vendors and contractors, providing EHS information both within and outside the enterprise.
- Checking: AT&T routinely checks on our EHS performance by analyzing key performance measures and metrics covering aspects of EHS performance, and by reviewing business operations that impact EHS. When incidents or nonconformities with laws or company standards are identified, we have formal systems established to identify corrective actions and track these actions until they are completed.
- Management Review: Senior leadership, such as the Executive Environmental Council, participates in regular reviews of AT&T’s EHS performance and programs. The council is a regular forum for senior leaders of AT&T business units to review their ongoing implementation of the AT&T environmental policy.
Our Code of Business Conduct specifically includes a section on creating a safe and secure place to work. Each employee — from our part-time workers to our CEO — is responsible for reviewing the code and understanding its provisions. In 2013, we accomplished an approximately 99.6 percent completion rate on our code training. We train all domestic employees on our EH&S Plan, and we conduct specialized training based on job tasks and the hazards an employee is likely to encounter in his or her position.
Alternative Fuel Vehicles
In October 2013, we reached the halfway mark toward our commitment to deploy approximately 15,000 alternative-fuel vehicles (AFVs) through 2018. In 2009, we committed to invest up to $565 million to deploy AFVs, and we are making steady progress toward that goal. The Center for Automotive Research (CAR) estimated that our planned AFV commitment would:
- Create or save — on average — approximately 1,000 jobs per year over the first five years of the initiative
- Avoid the purchase of 49 million gallons of gasoline over the 10 year commitment
As of end of year 2013, AT&T deployed to its fleet a total of 8,230 alternative fuel vehicles, including: 2,173 hybrid-electric, all-electric and extended-range-electric vehicles, and 6,057 CNG service vehicles. The alternative fuel vehicles in service allowed us to avoid the purchase of 4.6 million gallons of unleaded gasoline in 2013 and 12.4 million gallons of unleaded gasoline cumulatively.
Read more about our fleet commitments.
We're committed to measuring and understanding our GHG emissions and taking steps to manage them. We've been measuring and disclosing our GHG emissions since 2008. These are our results for 2013.
Our GHG emissions increased slightly in 2013 compared to 2012, both for Scope 1 and Scope 2 emissions.
For our 2013 greenhouse gas inventory, we obtained independent assurance of our Scope 1, 2 and 3 (business travel) emissions from Ernst & Young. Their statement can be found in this Independent Accountant's Report. We believe it's important that the metric be accurate, and Ernst & Young's increased rigor around this process helps us realize continual, year-over-year improvements in accuracy.
Scope 1 Direct Emissions
Direct emissions account for 11 percent of our total GHG emissions, a slight increase in 2013 compared to 2012 — primarily attributed to additional fleet vehicles and increased natural gas consumption due to more Bloom Fuel Cells coming online and a colder winter. More than 62 percent of our direct emissions come from our fleet. Our commitment to operate a more efficient and clean fleet through alternative-fuel vehicles (AFVs), anti-idling policies and telematics is helping to keep our Scope 1 emissions minimized even while we add vehicles to the fleet. Much of this progress has been a result of fuel efficiency gained from our adoption of 8,230 AFVs deployed through 2013 and operational efficiency. This is part of AT&T’s commitment to deploy approximately 15,000 AFVs through 2018. Read more about our fleet initiatives.
Another large component of our direct emissions — nearly 10 percent — came from the stationary engines and portable generators that provide back-up power for AT&T. These generators are a critical component of AT&T’s Network Disaster Recovery organization, which works to keep wireless and wired communications flowing when disaster strikes. Generators also provide support for field operations where power is not available.
We have a goal to reduce our Scope 1 emissions 20 percent by 20201, using a 2008 Scope 1 baseline of 1,172,476 mtons CO2-e. We achieved an adjusted 992,217 mtons CO2-e of Scope 1 emissions in 2013, which equates to a 15 percent reduction as compared to our 2008 baseline.
Scope 2 (Indirect Emissions)
Our scope 2 emissions account for more than 88 percent of our total GHG emissions. These come from purchased electricity and steam. We saw more than a 2 percent increase in these emissions in 2013 over 2012, which is primarily a result of adopting the new U.S. EPA 2010 Emissions and Generation Resource Integrated Database (eGRID) emissions factor criteria.
Normalizing our electricity use to the data carried on our network, we did see a 17 percent decrease from 2012 in megawatt hours per petabyte of data carried in our network. We were successful in reducing electricity consumption relative to data growth by 64 percent as compared to our baseline year of 2008.
Read about our energy management efforts.
Scope 3 (Other Emissions)
We continue to measure our business-related travel in our scope 3 emissions. To address these GHG emissions, we continued our internal deployment of telepresence to more than 324 telepresence sites spanning 22 countries. In 2013, our company collectively logged more than 134,000 telepresence meeting hours. Over that same period, we realized more than $16 million in travel dollars saved and more than 13,000 mtons of CO2 emissions averted2.
We are applying the Greenhouse Gas Protocol Corporate Standard for tracking and reporting Scopes 1, 2 and 3 emissions and are collecting baseline emissions from suppliers. To that end, we are working with the CDP Supply Chain Initiative and EcoDesk to measure the emissions from our top suppliers. We’ve set a goal that by the end of 2015, the majority of our spending with strategic suppliers will be with those who track GHG emissions and have specific GHG goals. Read more about our efforts to engage our supply chain.
As a result of these efforts, we were able for the first time to estimate two new scope 3 supplier emissions categories: purchased goods and services (Category 1), and capital goods (Category 2). These estimates were based on 2012 supplier emissions and supplier spend data using an economic allocation model. We worked with an outside auditing firm as part of a pre-assurance exercise to assess and improve our methodology, and we will apply lessons learned in future reporting years. As this is our first year in reporting these categories, and given the annual lag in supplier emissions availability, we are not including them in the overall 2013 scope 1, 2 and 3 emissions total. In the future, data collected from suppliers will be as they report for the previous year.
For additional detail about AT&T’s GHG emissions, please see our Methodology and Process Detail document.
Read more about our efforts to engage our supply chain.
Scope 3 2012 Supplier Emissions
Purchased Goods and Services*
*Estimated for two categories only, based on economic allocation of 2012 supplier GHG emissions, revenue and spend data
Our goal is to provide a safe and healthy workplace for all employees — it’s an essential aspect of our Environment, Health and Safety (EH&S) policy. We work diligently to protect our employees through the prevention of occupational injuries, illnesses and workplace incidents. We provide job-specific EH&S training to all employees based on established guidelines and record successfully completed courses in each employee’s training record.
In the event an accident does occur, it is our policy to respond swiftly and effectively to protect our employees, company assets, neighboring communities and the environment. We require employees to report all alleged work-related injuries, illnesses and accidents. We investigate such incidents and look for opportunities to implement process improvements. For U.S. operations in 2013, our OSHA total recordable occupational injury and illness rate was 1.75 per 100 employees. This rate is lower than the most recent average published by the Bureau of Labor Statistics for the telecommunications industry, which was 2 percent for 2012.
Cell Phone Recycling
AT AT&T, we're always striving to increase cell phone recycling and encourage our customers to be a part of this ongoing initiative. Because a phone's usable life doesn't end after its first owner, collecting these devices makes both business and environmental sense.
At AT&T, customers can recycle their old phones by:
- Dropping off their old phones at an AT&T retail store recycle bin
- Trading In their old phone with an AT&T retail associate
- Trading in their old phones online by visiting https://att.com/tradeinprogram
In 2013, AT&T collected approximately 4.5 million cell phones for reuse and recycling and 487,000 pounds of batteries and accessories.
When our customers turn in a phone, our goal is to see if a phone can be reused. First, our priority is to protect our customer's privacy. We offer our customers tips and detailed information on wiping their devices before they return at www.att.com/recycle. As an ultimate protection to our customers, once we receive the device, we wipe it of customer-saved data as well. If the phone can be refurbished, we do so and put it back into the marketplace. This is beneficial from an environmental perspective, and it has the benefit of making phones more affordable to those who might not be able to purchase a new phone at full cost. If the phone can't be reused in its entirety, we take it apart and pull out individual parts that might be reusable: for example, the camera. The remaining plastics and metals are recycled responsibly. These materials end up in consumer products such as cell phones, PCs and tablets.
Furthering our goal of empowering our consumers around sustainability, in 2012 we also launched EcoSpace, a consumer website geared at engaging with our customers around our sustainability story. This site profiles various sustainability initiatives — from our Aspire education commitment to our corporate fleet. This site is also home to our Eco-Rating system.
Packaging & Materials
We strive first and foremost to minimize the amount of packaging used for our products, and when packaging is necessary, choose materials that have low environmental impact.
Since 2009, we have saved more than 1,150 tons of packaging. In 2013 alone, we saved more than 350 tons of paper and plastic in our accessory packaging. This built upon our 2011 introduction of a new accessory packaging comprising up to 30 percent plant-based materials. The plastic is sourced from ethanol harvested from natural sugarcane, a rapidly renewable agricultural crop, and replaces nearly a third of the fossil fuels traditionally used.
In 2013, we made several improvements to packaging of our DSL products. We reduced paperboard weight by 60 percent, including eliminating the outer shipper box, reduced plastic weight by 40 percent and improved recyclability of plastic by switching from polystyrene to PET.
In 2013, we reused the molded pulp inserts in the packaging for some U-verse products, which reduced the need for purchasing new inserts and diverted more than 110,000 pounds of packaging from the waste stream. We also reduced the amount of corrugated board weight in boxes by 67 percent for certain network equipment shipping from our distribution center.
We replaced the polystyrene plastic cushion in our mobility prepaid packaging with a molded pulp cushion that is easily recyclable and made from renewable materials. The post-industrial scrap from the art cards used in the packaging is turned into pulp for the molded pulp cushions. The plastic scrap from the clamshell in the packaging is recycled into new sheets of plastic, equating to a zero waste and closed loop recycling program. We also improved the transportation cube utilization by reducing depth of the clamshell package and increasing the units in the master carton and pallet by 17 percent.
In all, the above initiatives helped reduce 1.3 million pounds of packaging in 2013.
In 2014, we aim to continue making improvements to our packaging across our products, including mobility prepaid and postpaid products and network equipment.
In 2012, we launched our Eco-Rating system, an easy-to-understand rating that serves as a way for consumers to make more informed choices by allowing them to better understand important environmental attributes of AT&T-branded mobile devices. Three of the 15 criteria in the rating system account for the use of environmentally preferable materials. Consumers can already find the Eco-Rating information on new AT&T-branded postpaid handset devices, select prepaid handset devices and electronic accessories (e.g., power supplies, handsets, speakers and battery cases).
Eco-Ratings encourage progress. We set a goal that 60 percent of our postpaid handset portfolio will receive 3-stars or above in 2013, which we surpassed.
Learn more about our packaging efforts.
For a company to fully understand its economic, environmental and social impact, it needs to understand the impact of its supply chain. We believe it is important to understand more about the social and environmental performance of our suppliers and expect our suppliers to share our commitment to citizenship and sustainability (C&S). We engage our suppliers in the following ways:
Principles of Conduct for Suppliers
We outline our expectations in our Principles of Conduct for Suppliers, which cover topics including sustainable business practices, diversity, ethics and labor rights.
We’ve actively sought to address the issue of conflict minerals from the conflict zones. Our Principles of Conduct for Suppliers address conflict minerals and confirm AT&T’s expectations that the products we sell will not contain conflict minerals that directly or indirectly finance or benefit armed groups. We reserve the right to suspend or terminate suppliers who fail to demonstrate commitment to this expectation.Before President Obama signed the Dodd-Frank legislation that addressed conflict zone mineral sourcing into law, AT&T worked with non-governmental organizations and our suppliers on this issue:
- We do not employ forced, compulsory or slaved labor and have the same expectation for our suppliers. We have a Human Rights Policy and Principles of Conduct for Suppliers that are clear in this respect.
- We remain involved in this issue through our membership in the Global e-Sustainability Initiative (GeSI). Through that membership and our participation in both the Conflict Free Sourcing Initiative (CFSI) and the GeSI Extractives Project Team, we support the continued development of the Conflict-Free Smelter Program and the use of the CFSI Conflict Minerals Reporting Template. Through continued collaboration with suppliers, we are committed to the responsible mining of these minerals.
- In October 2011, we joined as a participant in the Public-Private Alliance for Responsible Minerals Trade (PPA) — an alliance set up by the U.S. State Department, USAID, NGOs and company/industry organizations to address conflict minerals concerns. It promotes solutions to encourage those involved in responsible minerals trade in the DRC and the Great Lakes Region of Central Africa.
AT&T has taken rigorous steps to determine the extent to which it has reporting obligations under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the SEC’s rules implementing that Act (SEC Conflict Minerals Rules). The SEC Conflict Minerals Rules require public companies that manufacture or contract to manufacture products that contain conflict minerals to make annual disclosures about the use of those minerals.
Although AT&T is not a manufacturer of the products it sells, the SEC Conflict Mineral Rules would nevertheless apply to AT&T if it contracts to manufacture those products. AT&T’s first step in determining the applicability of Dodd-Frank was thus to establish a governance structure. AT&T created (i) a working team to address the day-to-day activities associated with complying with the SEC Conflict Minerals Rules; (ii) a governance committee that reviews and provides general guidance on conflict minerals compliance activities; and (iii) an officer steering committee to provide senior management oversight, guidance and accountability. AT&T also developed a comprehensive Conflict Minerals Management System (CMMS), which serves as the documented framework in which AT&T performs the steps required to determine the applicability of, and be in compliance with, the Conflict Minerals Rules. AT&T will continue to execute the CMMS annually to identify any potential changes to our filing status.
Read more about our efforts on conflict minerals.
Human Rights and Labor Practices
As reflected in our Principles of Conduct for Suppliers, we take issues around labor practices and human rights in our supply chain seriously.
AT&T addresses human rights throughout our supplier engagement. AT&T Supply Chain has developed a Supplier Human Rights and Labor Practices Program. As part of that program suppliers accounting for 80 percent of our annual spend receive the AT&T Supplier Sustainability Survey annually. The survey covers general questions on both human rights and labor practices. As an additional step, selected suppliers, based on risk, receive an in-depth questionnaire that addresses aspects of human rights and labor practices, including minimum age requirements, maximum allowable hours worked, prohibiting forced labor and discrimination. The questionnaire assesses both the supplier and the supplier’s supply chain. Finally AT&T reserves the right to audit suppliers on all aspects of its sustainable business practices, including human rights and labor practices.
We also communicate our human rights policy directly to our suppliers. It lives on AT&T’s Supplier Portal, along with other policies and materials that explain our supply chain sustainability approach.
U.S. EPA SmartWay Program
AT&T strives to minimize the environmental impact of transportation by designing and optimizing its transportation and distribution network via route planning, consolidation and shipping full truckloads when possible. AT&T’s involvement in the SmartWay program requires us to benchmark and measure progress in our transport emissions management. This helps us further integrate energy efficiency, air quality and climate change initiatives into our transportation decision-making process. The program will also provide support to identify potential additional carbon reductions and cost savings opportunities in our distribution network
This work has included better route planning and transport optimization, consolidation of network field technician deliveries, ensuring full loads and avoiding empty trips, and incorporating alternative-fuel vehicles. In 2013, more than 99.5 percent of the miles covered by third-party carriers for AT&T were done by carriers that participate in the EPA SmartWay program. We use SmartWay participation as a factor when evaluating potential carriers, and in 2013 increased the number participating in the program. To learn more, read about our Company Fleet and Transportation initiatives.
Our model supply chain material and services agreements contain a clause specifically addressing citizenship and sustainability. The clause highlights our human rights and other policies, and obligates suppliers to adhere to programs no less stringent than our own. We also have several clauses in our contract library that cover sustainability considerations such as energy efficiency.
Contract Manager Training
We train our contract managers, more than 200 sourcing professionals, about sustainability in the supply chain and are providing the tools necessary to engage our strategic suppliers on sustainable business practices. We focus on how the contract managers can work with suppliers to ensure that the suppliers respond to our sustainability survey, with intention to help suppliers improve their performance and scores. As a result we are seeing greater awareness and participation by our suppliers.
1 For the purpose if tracking progress toward our goal, we are holding refrigerants, engines and portable generators steady in an effect to align performance with actual emissions changes and avoid an inaccurate representation of our progress.
2 Carbon calculations were derived by Cisco's IBSG, which uses the TRX Airline Carbon Emissions Calculator for impact of air travel avoidance, along with a standard calculation for the impact of ground transportation avoided to and from the meeting and airport, less the impact of energy usage for the Telepresence® application and carbon start up and disposal. Note: Ground transportation to and from the Telepresence® location and airport were assumed equivalent to participants' normal daily commutes, and thus, offset each other.
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