Energy and CO2

Reducing and conserving energy

We aim to manage energy use carefully, to cut consumption over time and to use more power from renewable sources.

In 2005/06 we continued to seek ways to reduce energy consumption and the greenhouse-gas emissions that come from running our networks, buildings and transport.

Our environmental performance targets for 2005/06 addressed each of these areas.

But as our networks grow to accommodate technological advances, and greater uptake of data services, we inevitably use more energy.

During the year, in the UK we worked with the Carbon Trust and a commercial partner to help understand the scale of our energy consumption and the carbon emissions we produce – our carbon footprint.

We completed three studies in the UK:

• To identify potential energy efficiencies in our network.
• To assess potential energy efficiencies in our buildings.
• To identify more sources of green energy – such as biomass and wind-energy sources.

In January 2006 the O2 Board agreed a visionary strategy for O2, called O2 Renew, with the ultimate goal of becoming carbon neutral.
 
The initiative is based on a three-stage approach, with the greatest focus on the first objective:

1. We will strive to reduce and/or conserve our energy use.
2. We will buy energy from renewable sources.
3. Where we cannot reduce consumption or source enough renewable energy, we will offset our CO2 emissions through capital investment in renewable energy or other offsetting initiatives.

Renewable electricity

Across the Group, in 2005/06, electricity from renewable sources reached 38 per cent compared to an average of 17 per cent in 2004/05.

Our target is to source 10 per cent of our electricity from renewable sources.

In addition, we are seeking ways to procure greater quantities of green energy from several companies.

We want to source all electricity from verifiably green sources.  We welcome the Climate Group’s work to introduce a ‘kite mark’ system to define precisely when energy is green.

This is important as the buying of renewable electricity remains difficult to verify and validate: several classifications of ‘green’ exist in the energy market and supplier standards differ, largely because the utility companies themselves are not always clear about their sources of supply. Currently, there is no guarantee that paying for a green tariff will create extra renewable capacity or deliver any tangible benefit.

During the year we completed a scoping study in the UK, as part of our work with the Carbon Trust and a commercial partner, to look at the potential implementation of large-scale wind turbines on O2 UK cell sites, and the possibility of other energy solutions from renewable sources.

We have also been trialling LPG (battery) generators which use less fuel. In addition, we are trialling an LPG cell which is supplemented by a solar and wind battery: our pilot is currently on test at the manufacturers’ premises and, subject to meeting the requirements of our radio equipment, will be deployed for full trial within our network in the coming year.

O2 Germany has installed a mobile repeater that is fuelled by solar panels in Bavaria.