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Trends Shaping Sustainability for Sprint and the Telecom Industry

Darren Beck – Director, Environmental Initiatives Sprint Corporate Responsibility Twitter @DarrenBeck 09.10.2013

©2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

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Sprint Sustainability Demonstrated Leadership


CDP Newsweek

DJSI GRI

# 3 2011 & 2012

NA Sector Leader 2011

and 2012

A+ Report 2012

Leadership Index 2010,

2012

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Five Key Trends Impacting Telecom Sustainability

1. The ever-growing network

2. Product evolution

3. Supply chain engagement

4. Third-party verification

5. Creating shared value


1. The ever-growing network


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Global Mobile Data Traffic Forecast for Exponential Growth


Presenter

Presentation Notes

Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012–2017 Global Mobile Data Traffic, 2012 to 2017 Overall mobile data traffic is expected to grow to 11.2 exabytes per month by 2017, a 13-fold increase over 2012. Mobile data traffic will grow at a CAGR of 66 percent from 2012 to 2017 (Figure 1). High-End Devices Significantly Multiply Traffic The proliferation of high-end handsets, tablets, and laptops on mobile networks is a major generator of traffic, because these devices offer the consumer content and applications not supported by previous generations of mobile devices. As shown in Figure 5, a single smartphone can generate as much traffic as 50 basic-feature phones; a tablet as much traffic as much as 120 basic-feature phones; and a single laptop can generate as much traffic as 368 basic-feature phones.

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Sustainable Solutions For the Ever-growing Network


Challenge Solutions

• More traffic = more energy • Greater efficiency • Cleaner energy sources

• Constant upgrades to network technology

• Responsible reuse and recycling of e-waste

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Greater Energy Efficiency Next-Gen Rectifier 5-10% more efficient converting AC to DC


NREL’s Ultra-Efficient

high performance computing data center

Every 18 mos. 2x computing power, 50% energy per computation

Presenter

Presentation Notes

Rectifiers/Power Conversion: As Sprint upgrades its CDMA network, we’re installing next-generation rectifiers in our power plants. The old models converted voltage from AC to DC at an efficiency in mid to upper 80% range. The newly installed version has an efficiency in the mid 90% - roughly 5-10 percentage points of improvement. Processing power and electrical efficiency: Two trends on technological process have been remarkably stable for more than 40 years. In short, Moore's Law observes that the number of transistors on integrated circuits (or computing power) doubles every 18 months. Koomey's Law, a more recent observation focusing on electrical efficiency, states that the amount of energy you need for a fixed computing load is reduced by half every year and a half. As the amount of network traffic increases it seems likely that new processing technology can keep pace and without exponentially increasing energy consumption. NREL/Cooling: Steve Hammond, director of the National Renewable Energy Lab's Computational Science Center, stands in front of air-cooled racks in the high performance computing data center. It ranked first in the world in energy efficiency when debuted this spring. The rest of the system was being built out this summer using warm-water liquid cooling to reach an annualized average power usage effectiveness (PUE) rating of 1.06 or better. NREL is demonstrating best practices we can all apply.

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Greater Energy Efficiency GreenTouch Consortium Working on solutions to help communications networks reduce energy consumption 90 percent by 2020


Presenter

Presentation Notes

GreenTouch: Is a global consortium dedicated to dramatically improving the energy efficiency of data and communications networks. With more than 50 members, including several universities and companies such as Bell Labs, Fujitsu and Samsung, they’ve set out to show that net energy consumption in overall networks can be reduced up to 90% by 2020. They have more than 16 projects underway. Some of the new technologies, architectures and protocols included in the 2020 modeling range from large scale antennae systems and protocols for labeling data to small cells-deployment in dense urban environments and infrastructure-sharing across operators.ocation of resources

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Cleaner Energy Sources

Solar-powered Canopy Sprint cell site, Hudson Falls, NY


Electricity – 5.25% from Renewables Sprint has secured 176,000 MWh via RECs, mostly wind power

Top 20 Tech &

Telecom Sprint ranks

No. 6

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• Network upgrades generate significant e-waste - Decommissioning of iDEN and Network Vision:

multi-year initiative touching 50,000+ sites

- Will generate 175M lbs. of e-waste and materials

- Removed equipment and peripherals can include base transceiver station (BTS) components, power invertors, lead-acid batteries, antennas, coax, etc.


Multimode BTS 3G/4G Combined

4G CDMA

Individual 3G & 4G BTS Today

Responsible Reuse & Recycling

380x Heavier

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Follows Sprint’s Electronics Stewardship Policy


Used Equipment Disposition

Network Vision 1 master vendor

with regional sub-vendors

iDEN Decom 3 master vendors

with regional and specialist sub-vendors

Functional & Needed?

Disposition Decision Flow

for Used Equipment

NO

NO

Functional, Not Needed?

Recondition and redeploy on Sprint network YES

Recondition and resell to other carriers YES

Obsolete, Not Needed? Recycle YES

Presenter

Presentation Notes

To clearly state Sprint’s pledge to responsibly address electronic waste, we have published an Electronics Stewardship Policy. A first for the telecommunications industry, this policy outlines how Sprint is focusing on the full lifecycle of the electronics we buy and sell. In it, we commit to: Collect 100% of Sprint facility e-waste annually for reuse and recycling by 2017 Maximize reuse of electronics through redeployment and remarketing Responsibly recycle any electronic scrap that remains Use environmentally and socially responsible vendors for recycling and remanufacturing, who follow guidelines like: Zero e-scrap landfilled or shipped to developing countries Avoid use of prison labor Identify workplace toxins, their potential hazards and test for exposure

2. Product evolution


13 ©2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Doing the Numbers 102% 1.7 Billion Wireless penetration rate in U.S. 1

Mobile phones shipped worldwide 2

12.5 months More than 12x Average time between new iPhone releases since 2007 3

Estimated increase in “green” handsets shipped by 2017 4

1 As of Dec. 2012. Source CTIA Wireless http://www.ctia.org/advocacy/research/index.cfm/AID/10323 2 Annual figure for 2012. Source: Gartner, Inc. http://www.gartner.com/newsroom/id/2408515 3 iPhone release dates: 1st Gen – 06/29/07, 3G – 07/11/08, 3GS – 6/19/09, 4 – 06/24/10, 4S – 10/14/11, 5 – 09/21/12 4 Projection: 2012 – 31 million, 2017 – 392 million. Source Juniper Research http://www.juniperresearch.com/viewpressrelease.php?pr=310

Mobile device market is vast, fast changing, increasingly green

Presenter

Presentation Notes

Wireless penetration rate = number of active units divided by the total U.S. and territorial population

http://www.ctia.org/advocacy/research/index.cfm/AID/10323

http://www.gartner.com/newsroom/id/2408515

http://www.juniperresearch.com/viewpressrelease.php?pr=310


2007: Materiality assessment

2008: Vision for responsible devices

2009: First feature-rich, eco-friendly phone launched in U.S.

2010: Green Specification & Sprint Eco Logo created

2011: Environmental Scorecard implemented

2012: ULE 110 certification requirement for all phones

Strengthening of the Green Specifications & Environmental Scorecard to continue to raise the bar

Sprint’s involvement with the creation and continuing development of the UE 110 Sustainability Standards for Mobile Phones

Sprint’s Journey Toward A “Green” Standard for Mobile Phones

Presenter

Presentation Notes

To clearly state Sprint’s pledge to responsibly address electronic waste, we have published an Electronics Stewardship Policy. A first for the telecommunications industry, this policy outlines how Sprint is focusing on the full lifecycle of the electronics we buy and sell. In it, we commit to: Design and buy electronics that are more environmentally sustainable Maximize useful life of equipment Boost collection of equipment Maximize reuse of electronics through redeployment and remarketing Responsibly recycle electronic scrap Use environmentally and socially responsible vendors for recycling and remanufacturing Sprint vendors are also expected to: Avoid use of prison labor Remove components with mercury and batteries prior to shredding equipment Identify workplace toxins, their potential hazards and test for exposure


Sprint’s Environmental Scorecard

• Reduced size • Responsible

paper, inks, adhesives, plastics and more

• Unbundled parts for reparability

• High recyclability • Packed with

recycling envelope

• Uses universal connector

• Meets power rating

• All handsets must be UL 110 certified

Sustainability Certification

Inbox Chargers

Sustainable Packaging

Life Cycle Management

Presenter

Presentation Notes

Established for 2011 scoring; strengthened annually to improve sustainability across all handsets. Goal: At least 70% of Sprint devices launched annually will meet our environmental scorecard criteria by 2017; Handsets must comply with all requirements to be considered “compliant” All Sprint phones are required to be evaluated for UL 110 certification; accounts for half of scorecard

3. Supply chain engagement


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Aligning the Supplier Ecosystem

• Have you developed and published the following? - GHG Reduction Goal - Materiality Assessment - Health & Safety Policy - Human Rights Policy - Environmental Policy

90% by 2017


In 2012, 79% met our social and environmental criteria

5,000

40,000

100+

Sprint’s Supply Chain

Presenter

Presentation Notes

109 Suppliers = 91% Sourceable spend in 2012 5,000 Suppliers = Active Suppliers in 2012 40,000 Supplier = # Suppliers in Database


Largest portion of Sprint’s footprint is in the supply chain and concentrated with our top 10 vendors

Supply Chain Footprint Understanding the Impact and Where to Engage


• Picking the right suppliers. - Selected vendors who align with Sprint’s objectives and policies

• Keeping suppliers on the right track - Clear communication and reporting; enabling for success

• Monitoring the supply chain - Third-party conducted

on-site audits and collected evidence of downstream governance

Supplier Engagement Example: Decommissioning Network E-Waste

Presenter

Presentation Notes

Picking the right suppliers – Weighing a balance of environmental, social and financial objectives, Sprint selected partners who were committed to performing decommissioning in alignment with its environmental policies and had a plan for measuring compliance. Keeping suppliers on the right track – Sprint worked closely with suppliers to ensure they understood our policies and to set up reporting protocols for our first-tier suppliers and beyond. Positioning these suppliers as business partners helped Sprint educate them on its sustainability measures and objectives. It even helped some suppliers transform their business processes, in some cases resulting in growth and expansion to new markets. Monitoring the supply chain – Even with that strong relationship, Sprint still wanted to ensure compliance with sustainability policies. Partnered with a knowledgeable third-party assurance provider for due diligence. They conducted on-site audits. They also reviewed how well suppliers were managing downstream adherence to Sprint’s policies by collecting evidence of processes, training, health and safety records, and tracking of materials among other things.

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• Important issue for telecoms - Large deployments, material risk

• Seven primary suppliers - Manufactured where and by whom? - Environmental citations? - Corrective actions taken? - Meet BEST Standard 1001?

• Over two dozen decom vendors - New policy limits recycling to the U.S.

• Value in NGO collaboration


Supplier Engagement Example: Lead-acid Batteries

Presenter

Presentation Notes

Supplier dialogue: Where the batteries and their lead-related components were manufactured and by whom; Whether the battery manufacturers were cited for environmental issues by regulatory agencies in recent years; Any corrective actions the manufacturers took to address the citations; and, Whether the primary battery manufacturers met the BEST Standard 1001 for Lead Battery Manufacturers. Policy Statement: As of today, 95 percent of Sprint’s contracts with its more than two dozen decommissioning vendors now state Sprint will only approve a smelter for lead-acid battery recycling if it conducts its operations in the U.S. and complies with all local laws and the EPA Code of Federal Regulations. We expect the remaining contracts to be amended this year.

4. Third-party verification



Mobile Devices – UL 110 Samsung

Galaxy S4

HTC One

HTC 8xt

ZTE Vital N9810

LG Optimus G LS970

LG Mach LS860

Samsung Galaxy Note II

Motorola Photon Q 4G LTE

Sprint's UL 110

Platinum Certified Phones

• All Sprint phones are required to be evaluated for certification

- Independent, 3rd party validation

- Created by knowledgeable, cross-functional stakeholders

• Accounts for half of our Environmental Scorecard

• Applicable for all phones – prepaid and postpaid

• Works hand-in-hand with our Environmental Specifications

- Some Optional UL 110 criteria is assigned as Required in the Sprint spec/scorecard because we believe the criteria to be essential

Presenter

Presentation Notes

Since January 2013, 94 percent of all Sprint and prepaid phones have been certified under UL 110 Sustainability Standards for Mobile Phones, of which 39% were certified at the highest platinum level.


E-Waste – Vendor Certification

Option A R2 + ISO-14001 + OHSAS-18001*

Option B R2 / RIOS

Option C BAN e-Stewards

* Acceptable alternatives: OSHA VPP or OSHA SHARP. Remanufacturing vendors require a documented health and safety management system by end of 2013, and OHSAS 18001 or acceptable alternative by end of 2015.

• Sprint’s Electronics Stewardship Policy includes the following Sprint goals: - All of Sprint’s recycling vendors certified by end of 2012,

and all remanufacturing partners certified by end of 2013

- Vendors can choose from the following options:

Presenter

Presentation Notes

Sprint vendors are also expected to: Avoid use of prison labor Remove components with mercury and batteries prior to shredding equipment Identify workplace toxins, their potential hazards and test for exposure

5. Creating shared value


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Finding the Sweet Spot


Presenter

Presentation Notes

The central premise behind creating shared value is that the competitiveness of a company and the health of the communities around it are mutually dependent. Recognizing and capitalizing on these connections between societal and economic progress has the power to unleash the next wave of global growth and to redefine business.


FleetSafer® – Promotes safe, legal and responsible use of mobile devices by corporate employees when driving.

The Internet of Things Machine-to-Machine (M2M) Solutions

SmartGrid – Full utilization in the U.S. could prevent 442 metric tons of CO2e each year – equal to the emissions of 66 typical coal plants providing power to 70 million homes.

Presenter

Presentation Notes

SmartGrid – M2M deployments of smart meters and intelligent building solutions give customers unprecedented visibility into their organization’s use of power, gas and water and the ability to manage these resources effectively. By fully utilizing SmartGrid, the US could prevent the equivalent of 442 metric tons of CO2 emissions each year – the emissions of 66 typical coal power plants providing power to 70 million homes. (Source: U.S. Department of Energy report, "The Smart Grid: An Estimation of the Energy and CO2 Benefits,”(http://1.usa.gov/1280elW) FleetSafer by Aegis – Employees who use mobile phones or tablet computers to text, email, and browse the web while driving are not only a danger to themselves, they also pose a significant risk and liability to their employer. FleetSafer is corporate fleet solutions that leverages mobile apps, M2M hardware or existing telematics to automatically promote safe, legal and responsible use of mobile devices when driving.

27 ©2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. ©2013 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

• Challenge - Only ~10% collected in U.S.1

Device Recycling

1 On average only 11% of mobile devices in the U.S. are turned in for recycling. www.epa.gov/osw/conserve/materials/ecycling/docs/fullbaselinereport2011.pdf

• Ease & Convenience - Accept all mobile devices - Collect nationwide (> 3,500 retail stores) - Integrate offer into online shopping experience - Postage-paid envelope with new device - Text reminder sent post-purchase

• Compensation - Incentivize customers and employees - Up to $300 instant credit in store for eligible devices - Customers received more than $100 million of credit in 2012

http://www.epa.gov/osw/conserve/materials/ecycling/docs/fullbaselinereport2011.pdf

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Thank you!


Questions? Contact me at:

Darren Beck Director, Environmental Initiatives Sprint Corporate Responsibility Email: [email protected] Office: 913-315-1204 Twitter: @DarrenBeck

mailto:[email protected]

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