multinational enterprises & sustainable development”mesd-12
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“Multinational Enterprises & Sustainable
Arun Seth, Chairman Alcatel-Lucent India
pDevelopment” MESD-12
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
MESD-12, 14th December 2012
ALCATEL-LUCENT AT A GLANCE
2,655patents in 2011 2011
TR50
Most 2011 1000+ pate ts 0
29,133 active patents
2011 Adjusted operating margin
3.9%
InnovativeCompanies 2012
2011 revenues
€15.7b
7
1000 Customers (SP)
1M+Collaborate
with
250+
76,000employees
100+ nationalities
130+ countries
7Nobel prizes 2011
R&D/Sales
15 7%
MNetworks
DJSI Technology Supersector leader
universitiesnationalities 15.7%
400G photonicDSL vectoring Carrier cloud lightRadio400G IP XRS Core routerMotive Customer
2
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
pg g400G IP Motive Customer Experience
SUSTAINABILITY - A BUSINESS IMPERATIVEOUR PRIORITIES
OUR VALUES
ECO-SUSTAINABILITYLead in eco-sustainable innovation to provide energy efficient environmentally
CUSTOMER FOCUS PUTS CORPORATE
• ZERO-TOLERANCE of compliance violations
• Collaborate and do business l ith PARTNERS
efficient, environmentally sustainable networks that meet growing bandwidth demands
OUR PEOPLECreate a diverse and highly
RESPONSIBILITY AT THE HEART OF OUR BUSINESS
only with PARTNERS, including suppliers who share OUR VALUES
• Fully engage as CITIZENS OF THE COMMUNITIES where we
Create a diverse and highly skilled global workforce able to meet customer demands for reliable, quality service
DIGITAL INCLUSIONdo business Realize the potential of a
connected world by developing and deploying affordable solutions for citizens everywhere, expanding their social and economic social and economic opportunities
3
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Technology Supersector Leader in DJSIRecognized among Top 25 Performers
A new normal
• Plan for stability assuming the past will continue- MNE’s focus on profitability optimisation- MNE s focus on profitability optimisation
• Population explosion – 10 Bn !- Ageing and longetivity
Cli t h• Climate change• Financial crisis – debt bombs • Energy disruptions• Water – the new frontier• Food – challenges • Resource warsResource wars• New constraints to optimise • Sustainable Planning is the new normal
MNE’s & Sustainable Development
•MNE’s need not be just foreign companies operating in India
- It will be any global enterprise – whether foreign or Indian
•MNC emotive globally not just India glad its MNE here !•MNC emotive globally not just India – glad its MNE here !
- MNE’s operate globally for both markets and resources
- Bring technology and capital and global scale to the domestic market
•Most MNE’s operate responsibly and build local Sustainability into their strategies – part of DNA
Framework for MNE’s in Developing Markets
• Don’t cookie cutter strategies from the West
• Market situation different
- Affordability
- Culture and local sensitivities- Culture and local sensitivities
- Economic priorities
- Stage of development
• Challenge old assumptions in home markets
• Frugal design
BT Lifelines example
• CSR project for delivering agri info to farmers in UP and Haryana• CSR project for delivering agri info to farmers in UP and Haryana
• Traditions though – use a PC and internet in English
- no energy to run a PC 24x7gy
- No internet worth its name in those areas
- No English skills
- Bound for failiure
• Used mobile phone with a voice mail system and knowledge engine
- Farmer calls an IVR – leaves message on issue in local language and dialect- Farmer calls an IVR – leaves message on issue in local language and dialect
- Either expert oor knowledge bank response in 24 hours saying answer is ready
- Farmer calls and hears answer in local language /dialect
- Extension worker shares the Rs 5 per call – creating employment as mobile is a shred resource
• 25% increase in agri yield and a self sustainable project
Frugal Design to optimise for local needs
• No bells and whistles
• Challenges the traditional technology models
• Optimised for local constraints like lack of 24x7 energy or conditions
Embrace example GE and Embrace• Embrace example – GE and Embrace
- Infant warmer
Use ICT aggressively in all spheres
• Smart 2020 report – 15% saving GHG compared to ICT footprint of 2%2%
• Use the mobile platform for delivering services in Healthcare, Education, Energy etc
• Direct cash subsidy transfer to BPL – Aadhar UID platform
• Akash tablet – affordable education
- Google tablet sell out in USA
• mPesa in Nigeria by Vodafone – now a global offering
• Challenge the traditional PC and Internet led model as majority of the• Challenge the traditional PC and Internet led model as majority of the world’s first screen will be mobile not a PC
• Will help meet sustainability goals
• Models can be transported globally
Optimising for new constraints – delivering sustainability for Telecoms and ICT y
• Optimising for Energy use and renewable sources is the holy grail for us in ICTus in ICT
• Will help climate change and environment challenges
• Reduce costs significantly for operators educe costs s g ca t y o ope ato s
• Deliver cost savings to society
Power Consumption of the Global Internet1013
)Global electricity supply
1013pt
ion
(W)
1012
Power Consumption of Internet (Including servers)
Con
sum
1011
( g )
Pow
er
40% p.a. Data growth
1010
10% p.a. Growth in user numbers
2010 2015 2020109
1 5 billi Year1.5 billion users
WE KNOW DOING NOTHING IS NOT AN OPTION!
NETWORKSENERGY USEX 15
INTERNET TRAFFIC
+27%2012 -2016
ENERGY USEX 152010-2020X 186
2010-2020
INTERNET
X 12,82010-2020
= 5th
country
INTERNETENERGY USE
y
E Effi i i it f th ICT i d t
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Energy Efficiency is a necessity for the ICT industry
WHY NETWORK ENERGY EFFICIENCY?
Revenuefrom Services
GreenServices
UsertoDeliveredTrafficTotal
GROWTHINCREASEBits d
UserperPowerTotalUsertoDeliveredTrafficTotal
EfficiencyNetwork =
REDUCE
per second
Watts
REDUCE
CostsCarbon
Footprint
Makes both environmental and economic sense
Footprint
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Makes both environmental and economic sense
FUNDAMENTAL LIMITS ON ENERGY EFFICIENCY
“Communication networks could be
10 000more energy efficient10,000 times
gythan they are today.”
— Bell Labs research study
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
GREENTOUCH™ A NEW INNOVATION MODEL FOR SUSTAINABILITY
Bell Labs-initiated GreenTouch™ FOCUS ON ENERGY EFFICIENCY
IT TAKES AN ECOSYSTEM
HOLISTIC AND AMBITIOUS:
GOAL OF 1000X60MEMBERS
25 RESEARCH PROJECTS
GOAL OF 1000XMEMBERS
• 300+ LEADING SCIENTISTS from across the industry and academia around the world
R g i d b th WORLD ECONOMIC FORUM
RESEARCH PROJECTS
Deliver architecture, specifications & solutions • Recognized by the WORLD ECONOMIC FORUM
as industry-led best practice toward sustainability
• Moving from fundamental research into the PRE-COMPETITIVE AREA through standardization
• Leading GREEN ICT: cooperation with other NGOs
, p+ Demonstrate key technologies
to increase network energy efficiencyby a factor of 1000 compared to 2010
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
such as ITU-T, GeSI, Carbon Trust, ITRS
Examples of success in delivering sustainability goals – Unilever and P&Gg
• Water use reduction- Pureit
• Conditioner to reduce water use
E waste – issues
• Health issues for rag pickers• Harmful to environment – toxic materials released into soil• E waste facilities globally recycling expensive materials
Lif l d d• Life cycle costs reduced • Pre emp regulations coming globally
Collaborations and Best practise for MNE’s
• MNE’s and local organisations need to collaborate locally and globally
• Part of global and local sustainability Forums – TERI BCSD, WBCSD etc.
• Standards for meeting emissions , energy conservation etc. – BEE/PAT Sta da ds o eet g e ss o s , e e gy co se at o etc /Scheme/GRIHA
• Don’t look at it as CSR but move it to the business DNA and make it part of day to day livingpart of day to day living
CONCLUSIONSBUSINESS UNDERSTANDS THE OPPORTUNITY
• With resource constraints, being sustainable means good business and an important strategic opportunity
STAKEHOLDERS NEED TO WORK TOGETHER A MAJOROpportunity for th 21st t • We need more new innovation models of sustainable thinking
• GreenTouch is one model and can spur many morethe 21st century
GOVERNMENTS NEED TO STEP UP• Public authorities need to scope the economic and social p
opportunity • Need more awareness and support
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Learn more: www alcatel-lucent com/sustainabilityLearn more: www.alcatel lucent.com/sustainabilityRead our 2011 CR Report: www.alcatel-lucent.com/sustainability/reports/Alcatel-Lucent-CR-Report-2011-EN.pdf
Al t l L t
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
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