How your business can move from doing less 'bad' to doing more 'good'.

NET GOOD: PATHWAY TO CARBON NET POSITIVE OUR GROWING POPULATION IS PUTTING PRESSURE ON OUR NATURAL RESOURCES. We're currently using resources at 1.5X the rate that the planet can renew them. WE HAVE A VISION But ICT can help reduce CO, emissions by 16.5% by 2020 saving £1TRILLION To help society live within the constraints of our planet's resources through our products and people. AT BT WE HAVE A KEY ROLE TO PLAY. WHY? MORE 'GOOD' TIME The size of the problem is such that simply reducing our impact is not enough. So let's move from doing 'less bad' to doing 'more good'. LESS 'BAD' We chose to focus on carbon as our 'bad' because it is measurable and has a material impact on the world. We've created a methodology to show what 'good' looks like. AT BT WE CALL IT NET GOOD, 3:1 AND BY 2020 OUR GOAL IS 3:1 CUSTOMER OUR WHAT IS 3:1? SAVINGS IMPACT We will help customers reduce carbon emissions by at least three times the end-to- end carbon impact of our business. HOW WILL THIS BE ACHIEVED? 3 1) We will help our customers reduce CO, emissions through our products and At the same time we will continue to reduce our end-to-end carbon impact. We will services: manange emissions from: Flexible working services to reduce building needs Our own operations: Upstream: all of the The emissions carbon emissions from our supply chain - our suppliers, their suppliers, their suppliers' suppliers. from our day to day Efficient transport and mobility business Data Centre and IT Downstream: the carbon Efficiency footprint of the equipment we provide to our customers. Conferencing and reduced and avoided travel Broadband services and dematerialisation Products and services of the near future This is what we used to measure - now we're including it all in our footprint reporting. WE DEVELOPED A NEW METHODOLOGY TO CALCULATE OUR FOOTPRINT It's a natural next step as we've been measuring and managing our carbon for more than 20 years. We measure our corporate carbon footprint and set our first reduction target We set ourselves the ambitious target of reducing our C0,e emissions intensity by 80% against 1997 levels We measure the end to end carbon footprint of our supply 1992 2008 2010 chain WHO ELSE IS INVOLVED? We break new ground by calculating the carbon footprint of the communication solution for the London 2012 The Carbon Trust reviewed, refined and endorsed this methodology. Olympic Games 2012 The Climate Group helped BT to engage a wide group of external stakeholders by organising the consultation process for the methodology. BT becomes the first company in the world to have product carbon footprints independently verified by the Carbon Trust to the new GHG Protocol Product Standard REVIEWED REFINED ENDORSED ENGAGED 2013 We set our 2020 Carbon Abatement Target. BT creates methodology and implements business strategy consistent with Smarter2020 findings. OPEN SOURCE How much net good can your business generate? Our methodology is open source so please use it and share it. Do tell us how you think it can be improved. Find out more at: 2020 Net Good 3:1 Carbon Abatement target achieved www.bt.com/NetGood Have your say on Twitter @BTBetterFuture #NetGood вт CARBON TRUST in Join the BT Better Future group on Linkedin THE CLIMATE GROUP IMPACT Upstream 64% Downstream 28% %8 BT's own Operations