Multinational Enterprises & Sustainable Development”MESD-12

“Multinational Enterprises & Sustainable

Arun Seth, Chairman Alcatel-Lucent India

pDevelopment” MESD-12

COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

MESD-12, 14th December 2012

ALCATEL-LUCENT AT A GLANCE

2,655patents in 2011 2011

TR50

Most 2011 1000+ pate ts 0

29,133 active patents

2011 Adjusted operating margin

3.9%

InnovativeCompanies 2012

2011 revenues

€15.7b

7

1000 Customers (SP)

1M+Collaborate

with

250+

76,000employees

100+ nationalities

130+ countries

7Nobel prizes 2011

R&D/Sales

15 7%

MNetworks

DJSI Technology Supersector leader

universitiesnationalities 15.7%

400G photonicDSL vectoring Carrier cloud lightRadio400G IP XRS Core routerMotive Customer

2


pg g400G IP Motive Customer Experience

SUSTAINABILITY - A BUSINESS IMPERATIVEOUR PRIORITIES

OUR VALUES

ECO-SUSTAINABILITYLead in eco-sustainable innovation to provide energy efficient environmentally

CUSTOMER FOCUS PUTS CORPORATE

• ZERO-TOLERANCE of compliance violations

• Collaborate and do business l ith PARTNERS

efficient, environmentally sustainable networks that meet growing bandwidth demands

OUR PEOPLECreate a diverse and highly

RESPONSIBILITY AT THE HEART OF OUR BUSINESS

only with PARTNERS, including suppliers who share OUR VALUES

• Fully engage as CITIZENS OF THE COMMUNITIES where we

Create a diverse and highly skilled global workforce able to meet customer demands for reliable, quality service

DIGITAL INCLUSIONdo business Realize the potential of a

connected world by developing and deploying affordable solutions for citizens everywhere, expanding their social and economic social and economic opportunities

3


Technology Supersector Leader in DJSIRecognized among Top 25 Performers

A new normal

• Plan for stability assuming the past will continue- MNE’s focus on profitability optimisation- MNE s focus on profitability optimisation

• Population explosion – 10 Bn !- Ageing and longetivity

Cli t h• Climate change• Financial crisis – debt bombs • Energy disruptions• Water – the new frontier• Food – challenges • Resource warsResource wars• New constraints to optimise • Sustainable Planning is the new normal

MNE’s & Sustainable Development

•MNE’s need not be just foreign companies operating in India

- It will be any global enterprise – whether foreign or Indian

•MNC emotive globally not just India glad its MNE here !•MNC emotive globally not just India – glad its MNE here !

- MNE’s operate globally for both markets and resources

- Bring technology and capital and global scale to the domestic market

•Most MNE’s operate responsibly and build local Sustainability into their strategies – part of DNA

Framework for MNE’s in Developing Markets

• Don’t cookie cutter strategies from the West

• Market situation different

- Affordability

- Culture and local sensitivities- Culture and local sensitivities

- Economic priorities

- Stage of development

• Challenge old assumptions in home markets

• Frugal design

BT Lifelines example

• CSR project for delivering agri info to farmers in UP and Haryana• CSR project for delivering agri info to farmers in UP and Haryana

• Traditions though – use a PC and internet in English

- no energy to run a PC 24x7gy

- No internet worth its name in those areas

- No English skills

- Bound for failiure

• Used mobile phone with a voice mail system and knowledge engine

- Farmer calls an IVR – leaves message on issue in local language and dialect- Farmer calls an IVR – leaves message on issue in local language and dialect

- Either expert oor knowledge bank response in 24 hours saying answer is ready

- Farmer calls and hears answer in local language /dialect

- Extension worker shares the Rs 5 per call – creating employment as mobile is a shred resource

• 25% increase in agri yield and a self sustainable project

Frugal Design to optimise for local needs

• No bells and whistles

• Challenges the traditional technology models

• Optimised for local constraints like lack of 24x7 energy or conditions

Embrace example GE and Embrace• Embrace example – GE and Embrace

- Infant warmer

Infant Mortality reduction

Costs $ 20000 + and needs constant electricityconstant electricity

Use ICT aggressively in all spheres

• Smart 2020 report – 15% saving GHG compared to ICT footprint of 2%2%

• Use the mobile platform for delivering services in Healthcare, Education, Energy etc

• Direct cash subsidy transfer to BPL – Aadhar UID platform

• Akash tablet – affordable education

- Google tablet sell out in USA

• mPesa in Nigeria by Vodafone – now a global offering

• Challenge the traditional PC and Internet led model as majority of the• Challenge the traditional PC and Internet led model as majority of the world’s first screen will be mobile not a PC

• Will help meet sustainability goals

• Models can be transported globally

Optimising for new constraints – delivering sustainability for Telecoms and ICT y

• Optimising for Energy use and renewable sources is the holy grail for us in ICTus in ICT

• Will help climate change and environment challenges

• Reduce costs significantly for operators educe costs s g ca t y o ope ato s

• Deliver cost savings to society

Power Consumption of the Global Internet1013

)Global electricity supply

1013pt

ion

(W)

1012

Power Consumption of Internet (Including servers)

Con

sum

1011

( g )

Pow

er

40% p.a. Data growth

1010

10% p.a. Growth in user numbers

2010 2015 2020109

1 5 billi Year1.5 billion users

WE KNOW DOING NOTHING IS NOT AN OPTION!

NETWORKSENERGY USEX 15

INTERNET TRAFFIC

+27%2012 -2016

ENERGY USEX 152010-2020X 186

2010-2020

INTERNET

X 12,82010-2020

= 5th

country

INTERNETENERGY USE

y

E Effi i i it f th ICT i d t


Energy Efficiency is a necessity for the ICT industry

WHY NETWORK ENERGY EFFICIENCY?

Revenuefrom Services

GreenServices

UsertoDeliveredTrafficTotal

GROWTHINCREASEBits d

UserperPowerTotalUsertoDeliveredTrafficTotal

EfficiencyNetwork =

REDUCE

per second

Watts

REDUCE

CostsCarbon

Footprint

Makes both environmental and economic sense

Footprint


Makes both environmental and economic sense

FUNDAMENTAL LIMITS ON ENERGY EFFICIENCY

“Communication networks could be

10 000more energy efficient10,000 times

gythan they are today.”

— Bell Labs research study


GREENTOUCH™ A NEW INNOVATION MODEL FOR SUSTAINABILITY

Bell Labs-initiated GreenTouch™ FOCUS ON ENERGY EFFICIENCY

IT TAKES AN ECOSYSTEM

HOLISTIC AND AMBITIOUS:

GOAL OF 1000X60MEMBERS

25 RESEARCH PROJECTS

GOAL OF 1000XMEMBERS

• 300+ LEADING SCIENTISTS from across the industry and academia around the world

R g i d b th WORLD ECONOMIC FORUM

RESEARCH PROJECTS

Deliver architecture, specifications & solutions • Recognized by the WORLD ECONOMIC FORUM

as industry-led best practice toward sustainability

• Moving from fundamental research into the PRE-COMPETITIVE AREA through standardization

• Leading GREEN ICT: cooperation with other NGOs

, p+ Demonstrate key technologies

to increase network energy efficiencyby a factor of 1000 compared to 2010


such as ITU-T, GeSI, Carbon Trust, ITRS

Examples of success in delivering sustainability goals – Unilever and P&Gg

• Water use reduction- Pureit

• Conditioner to reduce water use

E waste – issues

• Health issues for rag pickers• Harmful to environment – toxic materials released into soil• E waste facilities globally recycling expensive materials

Lif l d d• Life cycle costs reduced • Pre emp regulations coming globally

Nutrition delivery in Bangladesh – Danone and Grameen

Collaborations and Best practise for MNE’s

• MNE’s and local organisations need to collaborate locally and globally

• Part of global and local sustainability Forums – TERI BCSD, WBCSD etc.

• Standards for meeting emissions , energy conservation etc. – BEE/PAT Sta da ds o eet g e ss o s , e e gy co se at o etc /Scheme/GRIHA

• Don’t look at it as CSR but move it to the business DNA and make it part of day to day livingpart of day to day living

CONCLUSIONSBUSINESS UNDERSTANDS THE OPPORTUNITY

• With resource constraints, being sustainable means good business and an important strategic opportunity

STAKEHOLDERS NEED TO WORK TOGETHER A MAJOROpportunity for th 21st t • We need more new innovation models of sustainable thinking

• GreenTouch is one model and can spur many morethe 21st century

GOVERNMENTS NEED TO STEP UP• Public authorities need to scope the economic and social p

opportunity • Need more awareness and support


Thank You

Learn more: www alcatel-lucent com/sustainabilityLearn more: www.alcatel lucent.com/sustainabilityRead our 2011 CR Report: www.alcatel-lucent.com/sustainability/reports/Alcatel-Lucent-CR-Report-2011-EN.pdf

Al t l L t


@Alcatel_Lucent

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Multinational Enterprises & Sustainable Development”MESD-12