Climate Change: Telecom Italia's strategy

The subject of climate change has moved from the agenda of the scientific community, which has identified the impact on human life, to the international political agenda, which is trying to find methods which the various countries can agree upon to control its most negative effects. The subject was also discussed at the latest summit in Durban (United Nation Climate Change Conference - UNFCCC COP17) with the aim of limiting the global temperature increase to +2°C, restoring carbon dioxide emissions expected in 2100 to pre-industrial levels⁽¹⁾.

There are many market drivers that increase the importance of carbon management for companies: operating costs, energy costs, the growing economic impact of carbon management (the telecommunication sector is not currently part of the emission trading schemes⁽²⁾), brand reputation issues and the risks associated with the energy supply. In addition to these, there is the financial risk connected with the physical impact resulting from climate change, competitive positioning, the demands of investors and the expectations of customers. The requirement for effective carbon management is governed by additional drivers that depend greatly on the specific market, including the expectations of employees, talent turnover and retention systems for particularly prestigious positions.

All of this makes "carbon” management strategic for companies, will tend to increase its importance in the coming years and will require increasingly strong integration with the business as of now, becoming a long-term priority.

The emissions produced by the sector are expected to grow. Nevertheless, the ICT sector is required to play a major role by contributing to the reduction in emissions in other sectors.

Once again this year the Group took part in the Carbon Disclosure Project (CDP), an international initiative that aims to encourage companies to improve their performance on carbon management and communicating with the stakeholders on this issue. Also assessed is the ability of companies to better manage the risks and opportunities resulting from climate change.  Telecom Italia scored 73 out of 100 points in its CDP9 involvement, having improved its degree of disclosure by 4% compared to the previous year and positioned itself in band B in terms of performance.

The Group's approach to the fight against climate change is based on three synergic levels of action:

• reducing its own direct and indirect emissions of greenhouse gases;limiting the emissions of other sectors and customers in general by supporting virtualisation and the provisions of services that promote new ways of working, learning, travelling and living;
• contributing to disseminating a culture based on a correct approach to environmental issues inside and outside the company.

(1) For more detailed information go to: unfccc.int/2860.php.

(2) The emissions market is an administrative tool used to control emissions of pollutants and greenhouse gases internationally by listing the emissions themselves and trading emissions quotas between states:

• European Directive 2003/87/EC establishes a system for trading greenhouse gas emissions quotas in order to allow the undertakings given in the Kyoto Protocol to be fulfilled more effectively using an economically efficient tool (Emission Trading Scheme – EU-ETS).
• As of January 1, 2005, the carbon dioxide emissions market (EU-ETS) formally came into force, involving production sectors with high levels of CO₂ emissions.
• European companies operating in the sectors specified in the directive will be required to limit their emissions according to the requirements of their national allocation plans for two reference periods: 2005-2007 and 2008-2012.