The 1999 ETNOEnvironmental Report

Footprints......towards a

sustainablefuture

CONTENTS

ABBREVIATIONS

European Public Telecommunications Network Operators’ AssociationEuropean Institute For Research and Strategic Studies in Telecom-municationsResearch and DevelopmentEnvironmental Management System

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Into the Next Millennium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Introducing the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Section I - Environmental Performance 1997-1999 . . . . . . . . . . . . . . . . . . . . . . . . . 6

Awareness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Long Term Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Providing Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Environmental Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Quantitative Environmental Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Section II - ETNO's Road towards Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Environmental Impact Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Environmental Awareness Raising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Telephone Poles Purchase and Management . . . . . . . . . . . . . . . . . . . . . . . . . 20Eco-Rating of Telecommunications Operators . . . . . . . . . . . . . . . . . . . . . . . . 21Environmental Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23The ETNO Guidelines on Environmentally Responsible Procurement . . . . . . . . . 24Electromagnetic Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

New Signatories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Matàv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Cable and Wireless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Environmental Charter of European Telecommunications Network Operators . . . . . . . . 28The Signatories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29About ETNO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

ETNOEURESCOM

R&DEMS

t the crossroads of 2 millennia it is important to pause for a moment and consider thefootprint we are leaving behind so we can draw conclusions from the past to enable impro-vements for the future.

Although society does not need to be convinced of the requirement for environmental action,positive measures in this area are often denied a reasonable opportunity for success becauseof the rapid developments being made by the business community.

It is in this context that it is exciting to note that the telecommunications industry is ideallyplaced to provide long term environmental benefits as a direct result of its own rapid deve-lopments. This is exciting because, in many other areas of our everyday lives, it is obviousthat the quality of our environment is not improving.

There are plenty of examples where the telecommunications industry can provide solutionsto today’s problems. For example, the use of telecommunications services can substitute forbusiness-travel and, as a result, also provide significant improvements in issues such as climatechange, the consequences arising from the consumption of fossil fuels and the loss ofvaluable work time.

However, just because telecommunications services have the potential to benefit society as awhole, and care for the environment in particular, this does not mean that the telecommu-nications industry should be excused from demonstrating pro-active impulses towards its owncorporate behaviour.

I therefore welcome the involvement shown by the European Public TelecommunicationsNetwork Operators' Association (ETNO) on the occasion of the publication of its secondbiennal Environmental Report. By producing this report, ETNO is demonstrating that thetelecommunications sector places continuous focus on the concept of sustainable development,and has done so since the introduction of an environmental charter in 1996.

The main features of environmental reports in my opinion are: transparency, credibility, rele-vance and harmonisation. ETNO's efforts in producing their Environmental Report demonstratethat the organisation is working towards this target.

Combining information on a wide range of environmental parameters from 23 different com-panies in 21 countries was not an easy task. Nevertheless, ETNO members have achieved justthat, and their success in this field has also taken them down the path of another key priorityin European policy: enlargement of the Community, as 9 of the reporting companies comefrom non-EU Member States.

ETNO's commitment to environmental improvement, therefore, is highly commendable andstands as an example and encouragement to other industries, to pull their efforts togetherand report in a similar way about their European operations. It has now been demonstratedthat, in one of the most highly competitive sectors, the competitors can co-operate on envi-ronmental matters.

3

A

INTRODUCTION

Jim Currie

Jim CurrieDirector-General of the EuropeanCommission’s Directorate on Environment

ince the previous ETNO Environmental Report of 1997, companies within the telecommu-

nications sector have been increasingly challenged by environmental constraints.

Global environmental issues such as climate change are not strangers to us anymore. They are

now affecting decision-making up to the highest levels of society. Therefore a pro-active stance

is the key to continuous environmental improvement. Further, collaboration is one of the

best ways to secure benefits for the environment as a whole.

Within ETNO, by sharing experience and expertise, we have made important steps towards

achieving what we set out to do when the Environmental Charter was launched in 1996.

Demonstrating the benefits of telecommunications as a way of promoting sustainable

development has become a primary goal for ETNO. The outcome is here for all to see in this

report. We are making progress, but we also recognise that the progress is not yet significant

enough, on a global level, to proclaim a complete success.

There are still many ETNO Members who have not signed the Environmental Charter but who

could benefit from doing so. Our aim will be to encourage even more operators to sign.

Having said that, ETNO is proud to state that the 23 Signatories together represent 95% of

the European telecommunications market.

Some might question whether ETNO has done enough to promote sustainable development.

My response would be that we have done a great deal. ETNO has produced a prioritised list

of areas for improvement and has set about tackling them. We have developed purchasing

guidelines, strategies to enhance environmental awareness within our companies and an

environmental impact matrix. We have tackled subjects such as climate change and electro-

magnetic fields (EMF), dealt with the telephone-pole issue, etc… Most importantly, the deve-

lopment of environmental indicators enables the Charter Signatories to demonstrate the

benefits of a common approach.

Our next report will demonstrate even more spectacularly that the Charter Signatories are

contributing to the world-wide goal of sustainable development. The data generated by using

the environmental indicators will allow for benchmarking and the adoption of best practice

processes. This will then lead to the development and implementation of action plans not

only to minimise our own environmental impacts but also, by deploying our telecommunica-

tions services, to enable everyone else to reduce their own impacts significantly.

All this makes ETNO stand out as a beacon, not just in the telecommunications industry, but

among industry as a whole. Indeed there is no other sector that is working on environmental

matters in such a harmonised way as the one headed by ETNO. Benchmarking is the key to

success. We have improved the way we undertake it and in 2002 when the 3rd Environmental

Report will be issued, it will have been refined yet again. This is real continuous improvement.

This report proves that there is value in being an ETNO Member and a Signatory of the

Environmental Charter. It demonstrates our environmental commitment and the leading role

we play. We have indeed done well. What the future will be….

4

INTO THE NEXT MILLENNIUM

Dietmar SchulzChairman, ETNOExecutive Board

Sby Dietmar Schulz

5

his second ETNO Environmental Report demonstrates that ETNO has made real progress.

Two years after the publication of the first one, the Signatories of the ETNO Environmental

Charter can show that their commitment to co-operating in improving their environmental

performance, both collectively and at an individual level, has resulted in the advances spelled

out in this Report.

In Section I, the Report provides qualitative and quantitative data on Signatories' collective

environmental performance, showing the relevant trends over the past three years. This period

was chosen to demonstrate the improvements that have been made since the previous report.

The latest available data from that first report are the baseline for this one. We have broadened

the set of indicators used for reporting to give a more detailed picture from now on.

In Section II, the Report highlights the major developments of our co-operation.

ETNO has been active on issues such as climate change and waste management, and has followed

closely the development of environmental legislation at EU level. ETNO Member companies

and their expert staff spent considerable resources and personal effort on these activities,

which demonstrates an appreciable sectoral commitment away from the competitive arena.

INTRODUCING THE REPORT

Danilo Riva

T

Danilo RivaChairman of the

EnvironmentWorking Group

harter Signatories started measuring their overall environmental performance in 1997. A set of

indicators, both qualitative and quantitative, was defined so that each individual Charter Signatory

could measure their performance against these indicators and thereby make a contribution to the overall

picture. The indicators are based on the commitments contained in the Environmental Charter. In

1998 the first public ETNO Environmental Report was published. It showed the ‘’opening balance’’ for

1997 where these indicators are concerned.

The same indicators have been used to evaluate progress over the past three years (1997-1999). In

1997 there were 21 Signatories, now there are 23. But the reporting mechanism used hereafter is

irrespective of number and size of the companies. Since the Signatories are here as a group belonging

to a specific economic sector, they would like to be seen as such, working together, aiming to

continuously improve and fulfil their commitments.

6

Being aware means recognising the environmental impact of our activities, products and ser-

vices, be they positive or negative. Taking advantage of the positive ones and further reducing

the negative ones will demonstrate our ability in managing the environment. To be effective

in doing so requires getting all staff involved and providing them with information (the

“why”), management and technical tools (the “what”), and training (the “how”).

Awareness

Section I

ENVIRONMENTAL PERFORMANCE1997-1999

C

There has been an improvement over the years: now almost 90% of Charter Signatories have

an environmentally focused internal communication programme in place, compared with 76%

in 1997 and 78% in 1998. Slightly more than one-third of the Charter Signatories have a

communication programme that covers the whole company.

Now almost 80% of Charter Signatories have developed, or are developing, an internal pro-

gramme to train their people in environmental issues. The proportion of Charter Signatories

with a programme covering their whole company has more than doubled since 1997, standing

at 22% now.

Developing a long term environmental strategy means looking ahead and providing new pro-

ducts and services, here called ‘innovative activities’, with the aim of integrating the envi-

ronment into our businesses. At the same time, we would take advantage of the commercial

opportunities that sustainable development may bring, thereby meeting two objectives: helping

to protect the environment and increasing our market share.

7

Long Term Strategy

8

Now slightly more than two-thirds of Charter Signatories integrate environmental considerations

into their innovative activities.

Sponsorship programmes and initiatives funding and supporting environmental organisations,

are also considered to be part of our long term strategy: this helps to build corporate reputation

and demonstrates a company’s strong commitment to environmental protection.

The percentage of Charter Signatories that include environmental considerations in their

sponsorship programmes has risen from a base of one-third in 1997 and now stands at just

over 50%. This demonstrates the importance that the Signatories place on environmentally-

based sponsorship.

Due to the large spending and purchasing power of the telecommunications industry, envi-

ronmental policies applied to products and suppliers can have a significant effect throughout

the entire supply chain. An “Environment Focused Supplier Programme” here means establishing

effective co-operation in the form of partnership or co-stewardship agreements with suppliers

aimed at integrating environmental considerations into the procurement process.

Now slightly less than two-thirds of Charter Signatories have an environmentally focused supplier

programme in place, compared with 61% in 1998 and 48% in 1997. More than one-third of

Charter Signatories have been able to establish effective co-operation with their suppliers.

Co-operation is important in achieving set goals, and means that environmental awareness is

making its way along the supply chain. The evaluation of suppliers’ environmental per-

formance is part of this process, and can be very helpful in the starting phase. 61%

of the Signatories evaluate the environmental performance of their suppliers.

Providing information and establishing an effective 2-way dialogue with the

main stakeholders, i.e. customers, employees, shareholders and

governments, is important. It helps demonstrate that the company has both

determined and measured, i.e. is in control of, its environmental impacts and

that actions are being taken to improve the company’s environmental per-

formance. It is also the best way to get to understand the expectations of the

stakeholders, and to get them involved in the improvement process.

9

Procurement

Providing Information

Communication on environmental issues with employees has remained approximately

constant over the last 3 years, with only a small increase being apparent. The present level,

at over 80%, is itself quite high and demonstrates a genuine commitment by the majority of

Charter Signatories to maintaining an information flow to their people.

Communication on environmental issues with customers in the form of 2-way dialogue has

improved over the last 3 years. It is disappointing to note, however, that less than 50% of

Charter Signatories communicate on environmental issues with their customers. Further

improvement in this area is needed.

10

Environmentally-oriented communication with shareholders has increased markedly, with

more than 50% of Charter Signatories engaged in at least a 1-way dialogue compared with

less than 20% in 1997. It should be noted, however, that this indicator does not apply to

those companies that are/were state owned.

Environmentally-oriented communication to Governments has remained about the same over

the years, with more 2-way dialogue channels open now compared with both 1997 and 1998.

11

12

According to the Environmental Charter each Signatory should develop its own Environmental

Management System (EMS) to support the development of appropriate and well-structured

environmental protection. All companies signing the Charter aim to have an environmental

policy statement, a management board member with specific environmental responsibility,

and environmental manager(s) with designated responsibility for co-ordinating programmes

of continuous environmental improvement.

Now almost one-third of the Charter Signatories have developed their own EMS with 3 com-

panies achieving certification. The percentage of Signatories that are working on the deve-

lopment of an EMS has increased over time.

• 61% of Charter Signatories have appointed a main board member with environmental

responsibility.

• 83% of Charter Signatories have appointed a manager responsible for co-ordinating pro-

grammes of environmental improvement.

• 70% of Charter Signatories have a corporate environmental policy, signed at top level, and

52% have made it publicly available.

• 57% of Charter Signatories have translated their environmental policy into objectives.

Environmental Management Systems

13

There has been steady improvement where establishing environmental audit processes is concer-

ned, over the three years; more than half of the Charter Signatories have now instituted an

environmental audit process in their companies. Over one-fifth of the Charter Signatories

have a process that is company-wide.

The Quantitative indicators cover the consumption of electricity and fuels purchased direct-

ly by the Companies (fuels used for heating buildings are excluded). The normalising factor

is company’s total turnover. Based on turnover data, Charter Signatories now represent a total

turnover in excess of 180 Billion EUROs.

1. Electricity Consumption

Two indicators have been considered for electricity consumption:

- the first one, called I1.1, has been calculated considering all the Signatories as one single

big company, thereby summing up all individual consumption figures and then normalising

by dividing the total by the sum of all individual total turnovers, i.e. using the following

formula:

∑ Individual Electricity Consumption

I1.1 = ----------------------------------------------

∑ Individual Turnover

- the second one, called I1.2, has been calculated considering each Signatory individually,

that is dividing each individual consumption by the corresponding individual turnover, sum-

ming up all the results and dividing the sum obtained by the number of Signatories i.e. the

following formula has been used:

Quantitative Environmental Indicators

14

∑ (Individual Electricity Consumption/Individual Turnover)

I1.2 = -------------------------------------------------------------------------

Number of Signatories

The following chart shows the results obtained:

Total electricity consumption is lower and both overall and average efficiency show improve-

ments over time. A significant contribution to this result is due to efficiency improvement

exhibited by some of the biggest Signatories, but most of the Signatories have reported some

improvement.

Fuel Consumption

Two indicators have been considered for fuel consumption:

- the first one, called I2.1, has been calculated considering all the Signatories as one single

big company, thereby summing up all individual consumption figures and then normalising

by dividing the total by the sum of all individual total turnovers, i.e. using the following

formula:

∑ Individual Fuel Consumption

I2.1 = ---------------------------------------

∑ Individual Turnover

- the second one, called I2.2, has been calculated considering each Signatory individually,

that is dividing each individual consumption by the corresponding individual turnover, sum-

ming up all the results and dividing the sum obtained by the number of Signatories i.e. the

following formula has been used:

∑ (Individual Fuel Consumption/Individual Turnover)

I2.2 = ------------------------------------------------------------------

Number of Signatories

15

The following chart shows the results obtained:

Total fuel consumption is lower than in the previous years, and overall the average efficiency has

improved.

Two years after the publication of the first ETNO Environmental Report, and from a perspective

of 3 years of performance indicators, it is possible to make some general remarks.

• The number of Charter Signatories has increased by 2, indicating that there is a growing

realisation amongst telecommunications operators of the importance of environmental pro-

tection and sustainable development

• There has been a steady improvement in performance over time. This is particularly encou-

raging because it indicates not only that there is a will amongst the companies to work

hard to improve their performance per se but also that there has been significant sharing

of best practice between companies.

• The performance vis à vis certain indicators is excellent. Within the context of the companies

involved – ranging from very large, multi-national operations to relatively small, state-

owned operators – this demonstrates that signing the Environmental Charter and working

together has developed a more pro-active attitude towards the management of environ-

mental issues. Indeed, simply reporting on performance has stimulated the development

of better measurement processes and tools within companies. The continuous comparison

with more advanced companies, along with the sharing of best practice, has helped those

newcomers to achieve improved results in a relatively short space of time.

We must remember, however, that there is still more to be done.

Conclusions

16

uring 1998 a high level of activity was achieved including the launching of the 1st

Environmental Report at the highly successful and well-attended ETNO Environment

Conference held in Turin.

On the work-schedule since then, key agenda-items have been the EC’s (European

Commission’s) Draft Directive on WEEE (Waste Electronic and Electrical Equipment) and ETNO’s

position paper on it, the EC Draft Recommendation on the Effects of Exposure to EMFs

(Electromagnetic Fields), environmental reporting mechanisms, ETNO’s 1999 internal

Workshop in Bishoffsheim, the 2000 ETNO Environment Conference and future work in general.

Feedback concerning these activities always listed high on the reporting mechanisms.

In 1999 our project-oriented approach was redefined. New activities dealt with developing an

Environmental Impact Matrix, Climate Change, Environmental Awareness Raising, Telephone

Poles, Eco-Rating, the 2000 Environment Conference and the 2000 Environmental Report.

While previous work on Waste, Energy and Procurement was finalised, the areas of

Environmental Packaging, Vehicle Fleets and Fuel Storage were identified as future topics on

which to concentrate. Environmental Indicators and Electromagnetic Fields also became a

significant part of the workload.

In the following pages ETNO reports on its progress and achievements in these different

activities.

During 1999 representatives of the Signatories attended a workshop in Nairobi organised by

UNEP (United Nations Environment Programme). They were also present at the launch of the

North American environmental telecom charter and USTA's (United States Telephone

Association’s) Conference in Orlando on Telecommunications and the Environment. ETNO took

the floor at the United Nations in New York during a press conference and during the cere-

mony in which it was presented with an award from UNEP in recognition of its "Commitment

to Greater Corporate Environmental Responsibility and for its Vision and Leadership in

Promoting Environmental Sustainability"

In 1999 2 new Charter-Signatories, Matàv and

Cable & Wireless, joined the environmental

effort at ETNO.

The biennial workshop of Charter-Signatories

took place in Bischoffsheim (France) in October

1999 and focused on Environmental Commu-

nication. Although it was on an invitation-only

basis, there was a high turnout with parti-

cipation in the programme from academics,

suppliers, UNEP and the European Parliament.

D

ETNO'S ROAD TOWARDS IMPROVEMENT

Ward Dossche

Section II

by Ward Dossche

17

n general it is assumed that telecommunications is a "clean" industry sector. There are no

smoking chimneys, no water pollution and no significant chemical accidents. Environmental

insiders know, however, that telecommunications has several significant environmental

impacts. On the one hand, there is a positive aspect in so far as modern telecommunications

services can substitute for other conventional services with bigger ecological impacts. On the

other hand, telecommunications needs - like all industry sectors - resources and energy to

maintain its business activities. Telecommunications also produces various types of emissions

as well as waste. These environmental aspects are negative (Fig. 1).

The identification of an organisation’s environmental aspects

is an ongoing process that depends on its activities and

their impact on the environment. This process also includes

the identification of the potential regulatory, legal and business

exposure affecting the organisation. It can further include

identification of health and safety impacts, and environ-

mental risk assessment.

ETNO is developing a common procedure for generating and updating an environmental

impact matrix. The environmental aspects of a company are determined by working out this

matrix, wich is characteristic for a certain industry sector. Fig. 2 shows an example of an

operator’s impact matrix. According to ISO 14004 the procedure is as follows:

Step 1 – Determine the system boundaries of the company or

the particular organisational unit.

Step 2 – Select an activity, a product or service: this

should be large enough for meaningful examination

and small enough to be sufficiently understood.

Step 3 – Identify as many environmental aspects and

impacts as possible (positive and negative) associated

with the selected activity, product or service.

Step 4 – Evaluate significance of impacts:

The significance of each of the identified environmental impacts can be different

for each organisation. Quantification can aid judgement.

It has been found that especially in the last step – the weighting of the impacts –

very different approaches exist. Hence it is difficult to give a general recommendation.

The completed impact matrix determines the areas for all environmental action by

the company or the organisational unit. It is also the basis for the environmental

training, awareness and competence as well as for environmental communication

and audits.

ENVIRONMENTAL IMPACT MATRIX

Fig. 1:Inputs for and outputs

from telecommunicationsoperators on the environment

Fig. 2:Example of anoperator's environmentalimpact matrix

Albert Kuhn

I

Progress Report

by Albert Kuhn

18

s a huge industry sector, telecom operators recognise their direct and indirect contribution

to greenhouse gas (GHG) emissions, and to climate change as a consequence. Although the

impact of Telecom Operators is relatively low when compared with other industry sectors,

they are nevertheless worthy of attention; such an impact can be reduced if proper actions are

undertaken, particularly as far as energy and fuel consumptions are concerned.

ETNO welcomes the initiative from the European Commision to create a European Climate

Change Programme (ECCP), based on policies, measures and tools to reduce greenhouse gas

emissions. We also support the twin-track approach i.e. reinforcement of policies/measures

and the development of an emissions trading system.

The current trends regarding greenhouse gas emissions are indeed worrying and it seems to

be a tough challenge for the EU to manage the Kyoto targets.

We wish to be heavily involved in the European Climate Change Programme both as an

Association representing an industry sector that is developing a harmonised approach to the

climate change issue, and because our industry can contribute towards fulfilling Kyoto com-

mitments of the EU. This latter action can be achieved,

• by reducing our own GHG emissions

• by providing energy efficient alternatives to other industrial sectors and municipalities.

This is the reason why ETNO is involved in a specific project aiming:

• to develop guidance to enable Member companies to measure and report on greenhouse gas

emissions.

• to propose solutions that Member companies can apply to reduce their greenhouse gas

emissions.

• to assess the potential of telecom services to reduce negative environmental impacts such

as climate change.

And this is just an example of how ETNO is translating Charter commitments into actions.

CLIMATE CHANGE

Ellen-BirgitteStrømø

Progress Report

Aby Ellen-Birgitte Strømø

19

he main target of the Environmental Awareness Raising internal project was to share the

experiences of Signatories and thereby provide a best practice model for others to follow.

A successful relationship with stakeholders requires more than just one-way communication.

An objective of the project was to come up with suggestions and evaluations on how to arrange

in concrete terms 2-way environmental communication between Signatories and different

stakeholders.

In order to compile and share experiences, a questionnaire was sent to Signatories of the

Environmental Charter. The final report of the project will be available in the second part of

the year 2000. It will cover both general trends in environmental communication and current

ways of communicating with different stakeholder groups.

Topics will include internal and external environmental awareness raising, stakeholder com-

munication, methods of communication, communication of environmental initiatives and

evaluation of environmental awareness.

Generally, it can be said that the Charter Signatories place the greatest emphasis on com-

munication with employees and actively engage in continuous two-way communication with

them. The level of activity with other stakeholder groups is more variable. There is some com-

munication with all stakeholder groups but it is often sporadic and based on providing infor-

mation rather than having a dialogue.

Signatories use various methods to increase environmental awareness among employees. The

methods used include, for example, training, internal magazines, intranet environmental

pages, educational campaigns and workshops. In external communication they most often

utilise environmental reports and the internet to inform stakeholders on environmental

issues. 40% of Charter Signatories have environmental information on their web pages and a

further 40% plan to include it. Feedback is rarely requested from any other stakeholder group

than employees. Even on web pages only half of the Signatories have included a comment or

feedback option.

In addition, the project results include a proposal for an Employee Environmental Awareness

Indicator. It consists of a set of questions to evaluate awareness and a way to conduct the

survey effectively by using intranets. The Employee Environmental Awareness Indicator has

already been used by one Signatory and will soon be piloted by four more.

ENVIRONMENTAL AWARENESS RAISING

T

Kari Vaihia

Progress Report

by Kari Vaihia

20

rees are important natural resources, which have a fundamental role in the conservation

of the earth’s eco-system; nevertheless woods and forests are endangered by indiscriminate

exploitation and both natural and human-caused disasters.

With a few exceptions, all Charter Signatories make extensive use of wooden poles for tele-

communications aerial lines. Indeed, more than 50 million poles are in use throughout Europe

while 1,2 million are purchased each year either to replace worn-out ones or to extend the

network. Such poles need continuous attention since they have impacts on the view of the

countryside and preservation techniques need to be monitored as well: in fact when used for

outdoor applications, wooden articles such as telephone poles need be treated to prevent

degradation due to attack by micro-organisms like fungi and bacteria.

The four areas of environmental concern are the purchasing of wood, preservation tech-

niques, impacts on the countryside and disposal of obsolete poles.

ETNO has adopted the following statement :

Environmental Timber Policy Statement for the Supply of Telegraph/Telephone Poles

Each organisation willing to commit to reducing the environmental impacts associated with

the use of poles:

• will agree that commercial activities are to be based on well-managed forests and will reco-

gnise responsibility to customers, suppliers, staff and local people.

• will be encouraged to demonstrate commitment to continuous improvement in environ-

mental management throughout the wood chain and will encourage the efficient use of forest

multiple products and services to ensure economic viability.

• will provide at least an annual report on its continuous improvement activities.

• will source only from suppliers who are operating in accordance with the laws of their country

and international treaties and agreements to which the country is a signatory.

• will work in partnership with suppliers and customers to facilitate the flow of the clearest

practicable information about wood product sources and seek evidence from suppliers of

good forest management practice at the original source of the poles.

• will encourage adoption of non-chemical methods of pest management and strive to avoid

chemical pesticides, where practicable. If chemicals are used then proper equipment and

training shall be given to minimise health and environmental risks.

Robin James

TELEPHONE POLES PURCHASEAND MANAGEMENT

T

by Robin James

Progress Report

• will ensure that any employees associated with timber purchasing act in accordance with

this policy and that appropriate training is given. Written guidelines shall be prepared.

• will give preference and encouragement to those forest owners who maintain and enhance

the forest resources to ensure biological diversity is conserved along with its associated eco-

systems.

• will ensure that only labels or certificates including messages of environmental soundness

or claims of sustainability that are supported by a recognised National standard, will be used.

• will ensure that relevant environmental issues are reviewed regularly at top level and that

the company establishes its own objectives and targets, to achieve continuous improvement

in environmental performance in accordance with this statement.

here was a time, not long a go, when companies were rated basically on their financial

performance: a company could demonstrate its ability by increasing its own market share,

beating the competition and continuously developing products that could attract customers.

This would be achieved on the basis of their high standards and capacity for satisfying cus-

tomers’ needs. This was the added value that shareholders required.

But as society is changing, markets are becoming hectic and competition is increasingly

aggressive. New paradigms have been identified, and the concept of business is no longer tied

only to finance. Increasingly there needs to be consideration for human beings and nature.

Consumerism has now been replaced with sustainability, in the sense that while aiming at its

business objectives, a company must also integrate environmental protection and social

responsibility in its operations.

New economy, made possible by the development of ICT technology, new business concepts:

new values asked for by society, added value for companies and their shareholders.

21

ECO-RATING OFTELECOMMUNICATIONS OPERATORS

T

Reiner Lemke

Progress Report

by Reiner Lemke

Sound environmental performance was one of the first issues which companies were asked to

confront. After the liberalisation of the telecommunications sector in Europe, Signatories of

the ETNO Environmental Charter received numerous requests for information on corporate

environmental performance from a range of stakeholders such as research agencies, banks and

universities. This information was sought through the medium of questionnaires.

But in general these questionnaires were very generic, and not tailored to specific industry

sectors. This made them both difficult to complete and barely adequate to assess a company’s

real performance. Such questionnaires, if properly developed, could provide a company with

a complete and clear picture, both qualitative and quantitative, of its behaviour,

and the feedback would foster focused actions aiming at continuous

improvement.

Based on these considerations, ETNO ran a project to develop a standar-

dised, telecommunications-specific questionnaire that should enable a

faster and adequate response to the legitimate demands of stakeholders for

information on environmental performance.

The completed ETNO questionnaire can be used for both external

and internal purposes. It can be used as an internal environmental

‘check list’ for data collection and be distributed to external stake-

holders upon request or even voluntarily.

The methodology chosen was to perform an extensive study of available

questionnaires, including those received by each Environmental Charter

Signatory. The ETNO questionnaire was structured using general and specific

questions, covering environmental performance and sustainability issues. The

final document has seven parts: General, Environmental Management,

Environmental Data, Risk Management, Products and Services, Communication and

Social/Ethical.

A comparison of questionnaires from 1999 and those that are appearing now suggests that

there is a trend towards requesting more information on social and ethical performance.

Sustainability-related issues have been incorporated into the questionnaire and should support

our companies in preparing for the increased stakeholder interest in this field: ETNO is well

aware of such a trend, and is developing its own approach to a wider sustainability-based

commitment.

Of course the questionnaire is a living document, and its capability to assess companies’ per-

formance is now being tested. The feedback will be used to help companies to focus on best

management practice and to drive for improvement.

ETNO believes that providing clear, complete, and exhaustive information to stakeholders is

important to demonstrate that the European telecommunications sector is actually moving

forward towards sustainability and that its voluntary commitments are providing tangible

results. ETNO will continue to develop tools that will help its Members to fulfill such com-

mitments in an effective and harmonised way.

22

ould you like to fly in a plane whose pilot is relying on only one instrument? Most cer-

tainly not. However that situation exists today in business where only financial indicators are

available. What enables the excellent companies to fly high and perform better than their

competitors is that they generally are able to more fully monitor their performance. They

include for instance environmental indicators as a key element of sound management practice.

But which ones should be taken into account? The answer is complex and comprises many

elements arising from an environmental analysis of the company: knowledge of its impacts on

nature; scarcity of resources; external requests from customers or interested parties; and the

best technologies available. An environmental impact matrix (see p.17) is, in this context, an

invaluable tool to extract meaningful environmental indicators.

The environmental indicators ETNO used first were of a qualitative nature, measuring the

“maturity” of environmental management within a company. In addition, an on-going internal

project within ETNO has already shown that seven quantitative indicators could be used in

the future by all the Signatories.

These indicators cover the fields of electrical

energy, fuels and heating oil, surfaces, office

materials (paper), water and wastes. This could be viewed

as considerable progress considering the difficulties of col-

lecting harmonised data among companies operating in dif-

ferent ways. These absolute indicators show to what extent

natural resources are consumed or depleted. They should be

normalised to assess the eco-efficiency of companies and

benchmark them. The purpose of environmental benchmarking

among companies of the same industry sector is to strongly

motivate continuous improvement and, having determined best

practices, implement them. As a result targets and deadlines to

increase the efficiency or to reduce the consumption of precious resources can now be set in

an economic fashion.

The turnover of the company and the number of employees are possible normalisation factors.

They have been suggested because they are easy to obtain and represent information that is

easy to grasp, but they are not necessarily the best ones. Guidance exists in the literature on

the choice and construction of indicators. Unfortunately these general-purpose documents

must be transposed to the reality of the telecommunication sector which requires serious

effort. Other quantitative indicators and normalisation factors, which would allow finer

tuning in the future, are still under discussion.

23

ENVIRONMENTAL INDICATORS

Pascal Salina

W

Progress Report

by Pascal Salina

24

n the past, environmental activities focused mainly on end-of-life options for equipment:

recycling was almost the only synonym for environmental measures in the late eighties and

early nineties.

Nowadays environmentally responsible procurement plays a key role in modern environmental

management and is an integrated part of the procurement process. A product, hardware

or software, requires comprehensive environmental “cradle-to-grave” assessment. Since life-

cycle assessments on all products are not feasible, ETNO decided to develop

Guidelines for Member companies, which would enable them to assess products

in a relatively simple way. The users of the Guidelines are all those involved in

the procurement process, such as the procurement department itself,

specification writers, technical departments etc. The consistent

application of the Guidelines harmonizes the assessment of products

performed by different companies and makes an exchange of

information possible.

The Guidelines do not specify requirements. They are intended as directions for

collecting information on the environmental impact of a product during its entire

lifetime (design, operation, end-of-life treatment), asking questions about:

• materials used in a product (use of recycled materials, hazardous materials)

• energy consumption in all operation modes

• end-of-life options

• efforts to minimize the environmental impact of future products, etc.

Since a product should not be seen to be independent from its manufacturing process and its

supplier, the Guidelines are also a tool to help assess the supplier regarding his attitude to

environmental issues and the environmental impact of his activities. Typical aspects here are:

• a description of the existing or planned management system (since this is the basis for sys-

tematic work in this field)

• the environmental impact of processes (manufacturing, logistics, supply-, waste-, energy-

management)

• efforts to improve the environmental performance of suppliers and contractors

For all questions in the Guidelines, a weighting scheme is given, which may be modified by

users depending on their individual needs. It is recommended that the final result of an

assessment become part of a company's comprehensive assessment system for products and

suppliers, covering also commercial and technical aspects.

Although the Guidelines are based on the experience of Member companies, they constitute

a living document being reviewed according to user needs, experiences and EU regulations as

these develop.

THE ETNO GUIDELINES ONENVIRONMENTALLY RESPONSIBLE PROCUREMENT

Progress Report

Iby Günter Schwarz

Günter Schwarz

25

he rapid growth of mobile telecommunications has been accompanied by public concern

about the possible health effects of exposure to radio frequency (RF) radiation, or

Electromagnetic Fields (EMFs), from both handsets and base stations. The public is confused

by arguments about such topics as non-thermal effects and precautionary principles which

have been reported in the media. In some countries these reports have undermined the confi-

dence in the EU-accepted recommendation (Council Recommendation of 12 July 1999 on the

limitation of exposure of the general public to electromagnetic fields [0 Hz to 300 GHz], doc.

1999/519/EC) based on the guidelines issued by the International Commission on Non

Ionising Radiation Protection (ICNIRP), an independent scientific body of the world’s leading

experts in this field, and several member States have adopted their own guidelines.

According to the World Health Organisation (WHO), “current scientific evidence indicates that

exposure to RF fields, such as those emitted by mobile phones and their base stations, is unli-

kely to induce or promote cancers” and, in general, the exposure to EMFs at the levels used

in telecommunications is not likely to cause any harm to human health. WHO endorses the

international guidelines developed by ICNIRP, that “are based on a careful analysis of all

scientific literature and offer protection against all identified hazards of RF energy with large

safety margins”. It is worth mentioning that the WHO is pooling resources and knowledge in

collaboration with international agencies and organisations with the aim to complete the pic-

ture and fill any possible gap, having established the International EMF Project in 1966. The

ultimate goal of the Project is to reach an international consensus and resolution on the health

issue.

ETNO Members are well aware of the public concern about potential health effects of expo-

sure to EMFs generated by telecommunications equipment. They consider protection of

human health a primary objective of their business, therefore they are committed to comply

with the relevant legislation, at EU and local levels, and to keep up to date with any further

developments of EMFs related knowledge in the scientific community, to make sure that their

operations are safe in every place and circumstance. A Task Force has been established within

ETNO with the aim to follow the development of scientific research and legislation, and to

create a forum to exchange experience and propose focused actions. The issue is no longer

about scientific facts alone and industry must now concentrate on clear communication and

education about the subject, therefore the Task Force will collect and

evaluate the existing documentation and examine potential ETNO

communications. A considerable amount of studies and work on EMF have

already been carried out and the Task Force will seek to work with other

industry associations to avoid duplication and to co-ordinate responses.

ELECTROMAGNETIC FIELDS

John Collins

Progress Report

Tby John Collins

New signatories

26

MATÀV

Hungarian Telecommunications Company Ltd.

Budapest, June 2000

ATÁV signed the ETNO Environmental Charter at the 2nd Telecommunications and

Environment Conference in 1998. With our signature we joined the ETNO Environmental

Working Group, too. As a long-standing ETNO Member and leading telecommunications

company in Hungary our membership was taken for granted.

In MATÁV’s Mission we have formulated our intention to become the best communica-

tions provider of the Central Eastern European region, in order to satisfy the needs of

our customers, our investors and our employees; our goal is to enhance the quality of

life by means of telecommunication and fully cover people’s needs. These goals and envi-

ronmental protection cannot be separated.

Improving the quality of life should be achieved in harmony with the principle of sus-

tainable development.

MATÁV is proud to be a member of the ETNO Environmental Working Group. Colleagues

in this group are real experts in their specialisation. We receive information directly and

work on the significant matters together.

I am convinced that this group is just as useful for all telecommunication companies as

for our employees and also environmentalists.

Elek Straub

Chairman - Chief Executive Officer

M

Elek Straub

27

CABLE & WIRELESS

Graham Wallace

New signatories

n 30th April 1999 Cable & Wireless further demonstrated their commitment to operate

in an environmentally responsible manner by signing the Environment Charter. The Charter

is not only in line with our Environmental Policy, but also sends positive signals to our

stakeholders that we manage our environmental impacts in a responsible way. Since the

signing of the Charter Cable & Wireless have pro-actively contributed to the Charter’s deve-

lopment through participation in a number of Task Teams including Eco-rating,

Environmental Awareness and Climate Change. We intend to fully contribute to the Charter’s

development, and bring experience from the UK and the Group operating businesses around

the globe to the initiative. As a global organisation Cable & Wireless see the charter as an

important mechanism to facilitate good environmental practice amongst our industry and will

continue to support the principles of the Charter.

“Our relationship with the environment and local communities is a core business

issue. Our operations are expanding in many regions of the world, and we have

to compete for the right to operate. Being able to demonstrate a strong track

record of environmental and community responsibilities is a key differentiator

and critical to our success”

Graham Wallace

Chief Executive, Cable & Wireless

O

28

ur VisionSustainable development is a strategic global environmental goal. It describes development

that takes into consideration the need to conserve both the natural environment and the

world’s scarce non-renewable resources for future generations. It is our belief that we can play

an important part in making this happen.

This Charter describes our commitment to sustainable development through:

• the provision of products and services that provide significant environmental benefits; and

• a determination to manage our own operations in a way that minimises negative environ-

mental impacts.

Our ApproachWe recognise that the universal presence of telecommunications in today’s society places on

us a social obligation to be good corporate citizens. A responsible attitude to environmental

issues is an important part of meeting that obligation.

As a collective group of companies, our combined turnover represents a significant proportion

of European trade and this puts us in a unique position to make a real difference.

Our CommitmentWhether together, or individually, we are committed to continuous improvement through

action in the following areas:

1. Awareness

We shall aim to ensure recognition and acknowledgement of all relevant environmental

impacts, including the positive and negative impacts of our products and services. In parti-

cular we shall build the environment into our training programmes and company communi-

cation programmes.

2. Regulatory compliance

We shall strive to achieve full compliance with all relevant environmental legal requirements,

and to exceed these requirements where appropriate.

3. Research and development

We shall support research and development into the contribution new telecommunication

services can make to sustainable development.

4. Procurement

We shall build environmental considerations into our procurement processes. Special attention

will be paid to: energy-consumption, waste management, process and product requirements,

the use of hazardous materials.

5. Providing information

We shall provide relevant data and information about our environmental performance to

employees, customers, shareholders and governments.

6. Environmental Management Systems

We shall implement Environmental Management Systems which support the development of

appropriate and well-structured environmental protection.

ENVIRONMENTAL CHARTEROF EUROPEAN TELECOMMUNICATIONS

NETWORK OPERATORS

O

29

Belgacom SA

British Telecommunications plc.

Cable & Wireless

Cesky Telecom a.s.

Croatian Telecom

Cyprus Telecommunications Authority

Deutsche Telekom AG

Finnet Group - Elisa Communications

France Telecom S.A.

KPN NV

Matàv

Portugal Telecom S.A.

Rom Telecom S.A.

Slovenské Telekomunikácie ö.p.

Sonera Limited

Swisscom

Tele Danmark A/S

Telecom Italia S.p.A.

Telefónica S.A.

Telekom Austria A.G.

Telenor AS

Telia AB

Türk Telekomüníkasyon AS

THE SIGNATORIES

TNO is the principal trade association for European telecommunications operators. There

are currently 45 ETNO Members from 33 European countries. Together these companies represent

an aggregate turnover of more than 180,000 million EUR, more than 265 million access lines

and more than 1,100,000 employees. Over 350 million customers have their telecommunications

services provided by ETNO Members, with products ranging from basic voice telephony to very

sophisticated business communications services.

The Association enables its Members to develop common policy positions on issues which

effect the regulatory and trading environment of the European telecommunications market-

place. It promotes these policies to relevant organisations such as institutions of the

European Union and other European bodies.

ETNO also facilitates co-operation and the co-ordination of activities between its Members,

There are a number of joint projects that are producing common viewpoints. These cover

issues including fraud control, numbering matters, frequency management and mobile

communications.

For further information about ETNO contact:

ETNO Office

Bd Bischoffsheim 33 – B-1000 Brussels

Tel + 32-(0)2 219 32 42 - Fax: + 32-(0)2 219 64 12

e-mail: etno@etno be - http://www.etno.be/

30

ABOUT ETNO

E

Working together, sharing experiences and best practices, benchmarking and developing

harmonised approaches on the management of environmental issues has proven to be valuable

both for Charter Signatories and for ETNO. As a leading industry sector we strongly encourage

others to follow our example, not only because care for the environment gives added value to

our operations, but also because in the new millennium sustainability will not just be one of

the challenges to mankind; it will be the challenge. The responsibility for making it happen will be

equally shared by individuals, society in general, governments, businesses and other organisations.

We are convinced that telecommunications has much to contribute to sustainable development,

and that its role will become obviously more important as time passes. Therefore we hereby

renew our commitments, with the aim of exploiting our potential further and making our contri-

bution more and more effective.

The 1997 ETNO Report on the Environment can be downloaded from the ETNO web-site.

Extra copies of the 1999 ETNO Report on the Environment can also be downloaded.

31

32

This report was prepared for ETNO by Ward Dossche, Danilo Riva and Javier Seriña.

Considerable editorial support has been provided by Marc Cannon, Leo Debecker, Steve Haigh

and Pascal Salina.

Valuable assistance was given by Patricia Keery.

Prin

ted

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frie

ndly

pap

er

Bd Bischoffsheim, 33 - B-1000 Brussels - BelgiumTel : + 32 2/219 32 42 - Fax : + 32 2/219 64 12

e-mail: etno@etno.be - http://www.etno.be/