Welcome!

New Study Finds Online Activities Can Save Energy and Cut CO2 Emissions in the United States and Europe

• Alice Valvodova: Executive Director of GeSI

• Chris Lloyd: Executive Director of Public Policy and Corporate Responsibility, Verizon Inc.

• John A “Skip” Laitner : Director of Economic and Social Analysis for the American Council for an Energy-Efficient Economy

• Discussion with questions from participants and Twitter Chat

Facilitator: Elaine Cohen, CSRwire contributing writer and CEO of Beyond Business Ltd

Program 11:00 – 12:00 EST

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New Study Finds Online Activities Can Save Energy and Cut CO2 Emissions in the United States and Europe

• Please ask your question(s) by using the question box in the webinar control panel on the right hand side of your screen

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Measuring the Energy Reduction Impact of Selected Broadband-Enabled

Activities within Householders

Alice ValvodovaExecutive Director, GeSI

CSRwire Webinar26 June 2012

GeSI members and partners

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GeSI vision

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A sustainable world through responsible,

ICT-enabled transformation.

• SMART 2020- Enabling a low-carbon economy in the information age

• By 2020:– Carbon emissions of ICT sector will

represent an estimated 3% of total global emissions;

– ICT has the potential to cut global carbon emissions by as much as 15% and save up to EUR 600 billion

Making the case for ICT enablement

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Measuring energy reduction impact of online activities

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Alice ValvodovaGeSI Executive Director

Global e-Sustainability Initiative (GeSI)c/o Scotland House

Rond Point Schuman 61040 Brussels

BelgiumEmail: alice.valvodova@gesi.org

www.gesi.org

Thank you

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Platforms for Innovation

• 130M customer connections (wireline, wireless, broadband, video)

• Fostering an Ecosystem of Innovation:– 100% fiber-optic FiOS Internet and TV service

– The first and fastest nationwide 4G wireless network

– One of the largest, most connected global IP networks

– First to deploy commercial 100 gigabit per second ultra-long haul optical system

• Annual operating revenues of $110.9B• Capital investments of $16.2B• 192,000 employees • $66M in donations to nonprofits through the

Verizon Foundation (2011)

Shared Success – Creating Shareholder and Societal Value

• Leverage transformational power of our networks, technology and people to create long-term shareholder value and address the critical unmet needs of the communities we serve

Initiatives

Solutions • Smart grids, buildings and

transport systems• Next-Gen Healthcare• Accessible devices

Philanthropy• Education• Health Care • Sustainability

Sustainability• Minimize

environmental impact of operations and supply chain

John A. “Skip” LaitnerDirector of Economic and Social Analysis

American Council for an Energy-Efficient Economy (ACEEE)

A GeSI Report Sponsored by Verizon, BT, Deutsche Telekom and Ericsson

Washington, DCJune 26, 2012

Measuring the Energy Reduction Impact of Selected Broadband-Enabled Activities

Within Households

· The Global e-Sustainability Initiative (GeSI), with the support of BT, Deutsche Telekom, Ericsson and Verizon, funded a quantitative assessment of the link between broadband usage and net energy reduction.

· The Yankee Group and the American Council for an Energy-Efficient (ACEEE), on behalf of GeSI:‒ Analyzed economic and consumer survey data from the US, UK,

Germany, Italy, France, and Spain to examine the adoption and impact of different broadband services in those countries.

‒ Investigated a list of 8 consumer activities that have been enabled and fostered by the development of broadband technology in each of those countries:

· Tele-commuting· Use of the Internet as a primary news source· Downloading video/music· Online banking· Online auctions/purchases· Online education· Use of digital photography· Use of E-mail

‒ Developed a model of energy consumption with adjustable assumptions based on various broadband activity measurements.

Overview

· There is a surprising connection between annual gains in energy efficiency and the larger productivity of the economy.

· At the same time the global economy is surprisingly energy inefficient.‒ The energy efficiency of the U.S. economy, for example, is an

anemic 14 percent, meaning that 86 percent of all energy resources are wasted in the production of goods and services.

‒ Other developed economies as Japan and the European Union are only marginally better.

‒ That level of waste imposes huge constraints on the larger well-being of our global economy.

· Perhaps the most immediate opportunity to ensure a more robust and sustainable economy is to triple or quadruple our levels of energy (in)efficiency.

· Information and communication technologies (ICT) and broadband services – the use of what we call “intelligent efficiency”– may provide the critical path forward to ensure a greater and a longer-term global economic productivity.

Why This Study Is Important

· The study provides reasonable estimates of net energy savings associated with increased adoption of Information and Communication Technologies (ICT) and broadband services.

· The net total savings (in rounded terms) are on the order of 250 and 123 million barrels of oil equivalent per year‒ Enough energy savings to fuel 25 and 30 million cars each year for the U.S. and

the EU-5, respectively.

‒ The energy savings equivalent to about 20 to 40 large electricity power plants for the EU-5 and the U.S., respectively.

Findings

· The suggested energy savings imply an annual reduction of carbon dioxide emissions on the order of 39 and 79 million metric tons for the EU-5 and the U.S.

· Telecommuting provided the single largest energy benefit, generating about 83 to 86 percent of the net energy savings.

‒ The reason is that traveling to work represents a large share of both household expenses and energy use.

· Under ideal circumstances, and assuming an upper end of reasonable adoption of all eight activities.

‒ The U.S. could generate an annual net energy savings of about 336 million barrels of oil.

• Equivalent to 2% of total U.S. energy consumption.

‒ The EU-5 could generate an annual net energy savings of 164 million barrels of oil.

• Also equivalent to 2% of total EU-5 energy consumption.

Findings

· Consistent with GeSI’s SMART2020 report, the bigger savings are in the large-scale energy and infrastructure systems and feedback mechanisms (smart grids, buildings and transport) as they are coordinated and optimized through broadband technologies.

· The report highlights the need for a policy environment that encourages a productivity-led investment that accelerates the use of broadband services throughout the entire economy:

‒ Many of the services individually provide small efficiency benefits – reading the daily paper or doing online banking – but can generate a more compelling level of energy savings if the activities were actively scaled up to whole communities or entire cities as part of a rebuilding of an economy’s infrastructure.

· The report also highlights the need for improved data collection to better track and evaluate the economic impacts of broadband services and to identify the optimal path to ensure greater economic productivity.

Findings

The difficulty lies not with the new ideas, but in

escaping the old ones. . . .

John Maynard Keynes

Contact InformationJohn A. “Skip” Laitner

Director, Economic and Social AnalysisAmerican Council for an Energy-Efficient Economy (ACEEE)

529 14th Street NW, Suite 600Washington, DC 20045

o: (202) 507-4029Email: jslaitner@aceee.org

For other ACEEE studies related to this assessment, see:

Semiconductor Technologies: The Power to Revolutionize U.S. Productivityhttp://www.aceee.org/press/2009/05/semiconductors-are-now-driving-force-behind-us-energy-ef

The Long-Term Energy Efficiency Potential: What the Evidence Suggestshttp://www.aceee.org/press/2012/01/aceee-report-us-better-thinking-big-

A Defining Framework for Intelligent Efficiencyhttp://www.aceee.org/press/2012/06/aceee-major-new-us-energy-find-could

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New Study Finds Online Activities Can Save Energy and Cut CO2 Emissions in the United States and Europe

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