Energy-efficient infrastructure

Energy consumption as the principle environmental impact factor

The greatest impact Swisscom has on the environment is caused through its energy consumption. Swisscom is striving to boost energy efficiency and rely more on renewable energies in order to minimise its environmental impact. In addition to the network infrastructure described in the Management Commentary, Swisscom operates a substantial real estate portfolio itself. This comprises offices, commercial buildings, local exchanges and data centres. Swisscom does not control any warehouses or distribution centres, but does maintain a vehicle fleet of company and commercial vehicles.

Energy management at Swisscom

The Swisscom energy management programme comprises the following processes:

• Determining energy consumption over a specific period of time
• Determining the electricity mix
• Generating electricity
• Rational use and increase of energy efficiency
• Reusing waste heat

Swisscoms energy consumption has been estimated up to 2015. The resulting catalogue of measures aims to reduce the increased electricity consumption by 85 gigawatt hours (GWh) by 2015 and increase efficiency by 20%. Additional measures are constantly being examined. Swisscom also determines the electricity mix and is increasing its sustainability by giving preference to electricity procurement from renewable energy sources. Swisscom started to generate its own electricity in 2005 and sees this as an important contribution towards a sustainable energy policy. For example, Swisscom builds solar installations wherever it makes economic sense. In addition, Swisscom also makes use of waste heat where possible.

Consumption of electricity from renewable sources and green electricity

Swisscoms energy consumption totalled 430 GWh in 2012 (prior year: 411 GWh). The increase is the result of expansion in activities and the network infrastructure. Over the medium term, the demand for electricity is expected to remain around the current level. For the electricity mix used for the network infrastructure and for consumption in buildings managed by Swisscom, compensation has been paid since 2010 for the share of nuclear power, electricity of unknown origin and electricity from fossil fuels. Thus, again in 2012 Swisscom relied fully on electricity from renewable sources. Swisscoms company claim 100% renewable energy is verified externally by the WWF.
In 2012, Swisscom purchased 1.7 GWh of naturemade star energy from solar power (0.7 GWh) and wind power (1 GWh). This makes Swisscom one of Switzerlands largest purchasers of wind and solar power.

Saving and efficiency measures when using fossil fuel to generate heat

Swisscom measures monthly the consumption of heating oil, natural gas and district heating in its 61 biggest buildings which together make up over half of the total space. It extrapolates these figures to calculate the overall annual consumption using a new method introduced in 2011. Actual consumption figures will not be known until the bill for heating and operating costs is issued in the second quarter of 2013.
During the reporting year, Swisscom consumed 201 terajoules (55.8 GWh) of fuel to heat buildings (prior year: 49.3 GWh). The heating mix comprises 74% heating oil, 11% natural gas and 15% district heating.
Swisscom intends to further reduce the amount of energy it uses to heat its buildings. For this purpose, it has systematically pursued initiatives throughout 2012 which aim to reduce energy consumption and CO₂ emissions in buildings. A detailed energy monitoring system has improved the data set, thus ensuring a more in-depth energy analysis. Accurate energy analyses were carried out on eleven buildings in 2012, with five buildings successfully undergoing operational optimisations. A further ten energy analyses are scheduled for 2013. The Pioneer project  set up together with Johnson Controls  ensures that operating conditions that have been optimised maintain low energy consumption levels over the long term. Swisscom also carried out further structural renovations in 2012, for which an internal eco form was used indicating the CO₂ reduction levels achieved by the building projects. In 2012, Swisscom identified 25 eco-relevant building projects, as part of which 17 measures were implemented.

Saving and efficiency measures in fuel consumption and mobility policy

The ability to provide first-class customer service and expand the network infrastructure depends on the seamless mobility of staff. A total of 69.9 million kilometres were driven in 2012 in the service of customers, representing energy consumption of 168.3 terajoules (46.7 GWh). Fuel consumption fell by 1.4% year-on-year.
Thanks to a progressive replacement strategy, average CO₂ emissions per vehicle should be reduced from 150 g CO₂/km (2010) to 110 g CO₂ for each kilometre travelled in 2015. In accordance with the New European Driving Cycle (NEDC), CO₂ emissions from cars in the Swisscom fleet averaged 131 g CO₂ per km as of the end of 2012. 91% of the cars are in the A and B energy efficiency categories. Swisscom also operates a fleet of 230 (+43%) hybrid vehicles, 45 (+22%) vehicles powered by natural gas, 10 (+150%) electrically driven vehicles and 45 (+5%) e-bikes. All electrical vehicles are recharged in Swisscom buildings and garages using electricity from renewable energy sources.
In 2012, Swisscom employees used 101,403 (5.9%) rail tickets for business travel and were issued 12,858 (5.8%) half-fare cards and 2,793 (+0.6%) GA travel cards. Since 2007, Swisscom has charged a separate CO₂ levy of 1.5 cents per air mile on international flights. The levy is used to finance internal sustainable environmental projects in the field of mobility (e-bikes, electric cars, etc.).

Electricity consumption savings and efficiency measures

Swisscom continued the Mistral energy saving project in 2012. Mistral is a cooling technology that relies exclusively on fresh air all year round. It replaces conventional energy-intensive cooling systems equipped with compressors and contributes to a massive improvement in energy efficiency. Mistral also eliminates the need for harmful refrigerants. Mistral was being used to cool 604 telecom systems in local exchanges at the end of 2012. This represents an increase of 11% compared with the previous year. In 2012, Swisscom Switzerland also retrofitted mobile base stations and Swisscom Broadcast transmitter stations with Mistral.
Fresh air is also an attractive alternative for cooling data centres and could significantly reduce the electricity required for this purpose in the centres. An internal plan envisages using fresh air for all-year cooling of data centres with heat loads of up to several kW/m2. A one-year pilot trial from November 2011 to October 2012 successfully demonstrated the feasibility of deploying fresh air-cooling systems in data centres under specific conditions.
The systems installed in the Swisscom IT Services data centre in Zollikofen feature a particularly high level of energy efficiency and efficient cooling. The centres average annual power usage effectiveness value (PUE value) is 1.3. This value represents the ratio of total power consumed by the data centre to the power consumed by the IT systems. This PUE value means that power consumption in Zollikofen is more than 33% lower than that of conventionally built data centres.

Generating electricity

In 2012, Swisscom Broadcast drew up plans for two solar facilities (2 times 60 kWp) on the Niederhorn and Valzeina transmitter stations, while Swisscom (Switzerland) installed and commissioned a solar facility in Zurich-Herdern with a peak power of 113 kWp. The total cumulative peak power of all the solar facilities installed by Swisscom amounts to 340 kWp. Over the coming years, Swisscom wants to significantly increase the number of facilities it has in operation for the generation of electricity.

Utilising waste heat

Swisscom has entered into two agreements in Zurich governing the supply of waste heat from its own commercial buildings. The agreements cover a volume of more than 20 GWh of thermal energy. Swisscom is currently examining another potential waste heat project in the Berne area.

Swisscom applies the internationally recognised definition of the Greenhouse Gas Protocol (GHG) and classifies its CO₂ emissions as Scope 1 (direct emissions resulting from burning fossil fuels for heating and mobility), Scope 2 (indirect emissions resulting from electricity consumption) and Scope 3 (all other indirect CO₂ emissions resulting from goods transportation, business trips, etc.).
The direct consumption of fossil fuels accounts for 19.1% of Swisscoms total direct energy consumption. Swisscoms Scope 1 CO₂ emissions have fallen by 6% since 1 January 2010 to 24,662 tonnes in 2012, without adjustment for the number of heating days. Vehicle fuel accounts for 50.1% of this, and heating fuel accounts for 49.9%. Swisscom has therefore met and exceeded the CO₂ target (28,000 tonnes) agreed with EnAW in 2004 covering emissions resulting from the consumption of fossil fuels.
The electricity mix used in Switzerland is not generated from fossil fuels and so its production is free from CO₂ emissions. Swisscom therefore has no CO₂ emissions under Scope 2. Swisscom, however, calculates the indirect CO₂ emissions resulting from the provision of electricity which fall under Scope 3 and applies the conversion factor of 14.7 g CO₂ per kWh. Scope 3 emissions are not part of the current target agreement with EnAW.
Swisscom calculated various Scope 3 emissions in 2012, thereby taking its ecological responsibility beyond the companys own vehicle fuel, heating fuel, and electricity consumption. An initial area of the Scope 3 emissions was already recorded in the year before, namely those associated with business trips, employee commuter traffic and the provision of energy.
In 2012, Swisscom also compiled statistics (using the Escher method) on emissions resulting from the manufacture of products and the provision of services that Swisscom procures in order to provide its own services. This area is currently the largest source of Scope 3 emissions. Swisscom will publish the results in a supplementary report in spring 2013 along with statistics on product-related emissions. . Swisscom is also involved on an annual basis in the Carbon Disclosure Project (CDP).
In addition, Swisscom calculated for the first time CO₂ emissions that can be avoided by businesses and residential customers using myclimate-certified ecologically friendly ITC services. The following services contribute to a reduction in CO₂ emissions:

• Virtual conferences
• Home offices
• Machine-to-machine communication (logistics optimisation)
• Energy-efficient services from data centres (cloud, hosting, housing, thin clients)
• Services that replace the use of paper
• Recycling of mobile phones

Other air emissions

Besides CO₂ emissions, burning fossil fuels for heating and transport also produces NOx and SOx. These emissions are calculated using the relevant conversion factors and depend on the amount of vehicle fuel and heating fuel consumed. Swisscom is reducing these emissions by continually optimising heating boilers and drive motors.

Other environmental aspects in the company

Further details about the environmental aspects of Swisscoms operations such as paper consumption, waste disposal and water consumption can be found in the Appendix.

Swisscoms responsibility in the supply chain

Swisscom takes responsibility within the supply chain and is committed to improving the working conditions of its suppliers employees and to ensuring compliance in the supply chain with ecological standards. This also means that Swisscom therefore expects its direct suppliers and their sub-suppliers to commit to acting in a sustainable manner.
The principles Swisscom observes are stipulated in its purchasing policy, which is defined by an overarching committee, the Swisscom Purchasing Board. Swisscoms purchasing policy sets out the principles and procedures to be followed by the procurement organisations. The procurement organisations of Swisscom Switzerland, Swisscom IT Services and Swisscom Broadcast have to date acted in accordance with the Swisscom purchasing policy. Together, their total order volume accounts for more than 80% of the total procurement volume. The purchasing policy is continuously being expanded to include further purchasing organisations in the Swisscom Group and it stipulates the requirements that suppliers accept by signing the CR Contract Annex (CRCA). Swisscom uses a structured risk management system to audit suppliers compliance with the requirements.

Supplier risk management

Risk management system

In 2012, Swisscom worked to further reduce environmental and social risks in the supply chain and in the second half of the year implemented a risk management system in the procurement area, the results of which are shown below.
The risk assessment carried out by Swisscom management in 2011 for the product groups was checked for accuracy and currency in spring 2012. They found the risk assessment to be correct and up to date and no changes were therefore necessary.
In 2012, Swisscom began assessing its current supply partners from medium-risk product groups, which involved approximately 800 supply partners. Plans have been made to assess all supply partners over the coming years. A milestone was reached in 2012, with 223 supply partners having been assessed. The results of the risk assessment showed that seven supply partners have a high-risk profile and 32 partners a medium-risk profile. After every assessment, any measures required were initiated and monitored (see Requirements diagram below) by management and the buyers concerned.

Swisscom plans to assess 35% (280 out of a total of 800) supply partners from medium-risk product groups by the end of 2013.
The procedure, established in 2011, has proven successful with potential supply partners. All buyers at Swisscom Switzerland, Swisscom IT Services and Swisscom Broadcast were trained accordingly for the first time in 2012. The procedure was used in tendering processes and corresponding measures were defined and implemented where necessary.
A supply chain crisis management organisation is currently being set up and will be integrated into the already existing Swisscom Group structures in 2013.

Corporate Responsibility Contract Annex

In 2012, 93% of the total order volume came from suppliers that had accepted the Corporate Responsibility Contract Annex (CRCA), which meant that the goal set for 2012 was achieved. As of 2013 Swisscom will have a new measuring instrument at its disposal in the form of a contract management system, which will make it easier to identify supply partners that have not yet signed the CRCA.

Audit and self-declarations

A risk assessment of the suppliers from high-risk product groups was carried out in 2011. At the time, seven supply partners were found to have a high-risk profile and were audited in accordance with the Swisscom requirements (see diagram above). Due to unsatisfactory audit results, four supply partners had to be audited again in 2012. The other supply partners received excellent audit results. Their risk assessment was therefore taken down a level to a medium-risk profile.
In 2012, around 30 suppliers with the highest order volumes, whose products are manufactured in countries classified by Swisscom as critical, registered with E-TASC and completed the online questionnaire. 2013 will see further key and strategic suppliers as well as high-risk suppliers registered in the self-assessment tool. As required by Swisscom, a further six supply partners from medium-risk product groups were audited in 2012, while 28 completed a self-assessment. Swisscoms goals for 2012 of six audits and 80 self-assessments were therefore fully achieved in the case of the audits, while the achievement rate for self-assessments was 35%. The low level of achievement in the latter case was due to technical problems with E-TASC.
Swisscom wants to step up collaboration with the Joint Audit Corporation (JAC) and plans to carry out four audits in 2013.

Raw materials

The raw materials used in Swisscoms many and diverse products stem from a wide range of countries and regions. Questions on the origin of the raw materials and the associated ecological and sociological risks are increasingly being asked. At the start of 2011, Swisscom began intensively looking into the issue of raw materials. The following measures have since been taken:

• March  June 2011:Swisscom took up contact with the NGOs Bread for All and Benchmark Foundation of Southern Africa for Corporate Social Responsibility, the Swiss Federal Laboratories for Materials Science and Technology (EMPA) and all partners supplying mobile phones in order to gain an insight into the stance of these institutions and organisations on the question of accountability in raw materials procurement. It revealed widely varying levels of awareness among supply partners with regard to raw materials and the whole issue of procurement. Clearly, Swisscom cannot accomplish rapid improvements in the procurement area all on its own.
• May 2011:Swisscom joined the Global e-Sustainability Initiative and worked together with the GeSI conflict-free smelters programme. The aim of the programme is to identify and certify conflict-free smelters for purchasers of raw materials.
• Mid-August 2011:Swisscom started working with myclimate to launch eco points on all mobile phones in the Swisscom range. Points are awarded on the basis of the criteria: responsible choice of raw materials, low energy consumption in use and low energy consumption in manufacture.
• January 2012:through its GeSI membership Swisscom becomes a member of the World Resources Forum Association.
• März 2012:inaugural meeting of the World Resources Forum Association. Swisscom represents GeSI at WRFA gatherings.

Swisscom also plans to add a section on raw materials to its purchasing policy and the CR Contract Annex in 2013.

Swisscom Supplier Award 2012

Maintaining a constant dialogue with suppliers, building a common future together and taking responsibility for the present and future, all play a key role at Swisscom. Internal procurement is also guided by these principles. In spring 2012, Swisscom gave Supplier Awards for the best success stories of over 6,500 suppliers in the three categories of Innovation, Cooperation and Sustainability.