Toolkit on General Specifications and KPIs

Daniela Torres Telefónica

International Telecommunication Union

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Contributors & Collaborators

• • • • • • Daniela Torres (Telefónica) Manuel Usandizaga (Telefónica) Piero Castoldi (Scuola Superiore Sant’Anna, Pisa) Raffaele Bolla (University of Genoa/National Interuniversity Consortium for Telecommunications) Hans Otto Scheck (Nokia Siemens Networks) Susanna Kallio (Nokia Siemens Networks) • • Cristina Bueti (ITU) Erica Campilongo (ITU)

THANKS:

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Purpose:

This document targets Information and Communication Technology (ICT) organizations and companies. It focuses on:  The importance to establish “Key Performance Indicators” for environmental management in the ICT Industry  An assessment of recommended KPIs for global environmental management, risk reduction, decision making and reporting.

 The importance of establishing and follow up targets to improve environmental sustainability of the ICT Sector by creating business value.

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Document Content

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Definitions of Environmental KPIs

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Environmental KPIs and ICT Organizations

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Suggested Process for KPIs Definition

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Target Definition

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Check list

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Conclusions - Suggestions

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ICT Organizations

Subsectors to be considered in order to identify KPIs for ICT organizations:  ICT telecom operators: Networks operation and provision of telecommunication services such as telephony or data communication accesses, e.g. Telefónica, Vodafone, AT&T, China Mobile, etc.

 ICT manufacturers: ICT technology and infrastructure developers and distributors, e.g. ALU, Nokia, Samsung, Sony, Ericsson, Nokia Siemens Networks, IBM, Huawei, Toshiba, etc.

 ICT software developers: Software programing for distribution and customer use from mobile or home devices, e.g. Google, Apple, Microsoft, etc.

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ICT Environmental Impacts First order effects (or the environmental load of ICTs):

the impacts created by the physical existence of ICT and the processes involved;  e.g. GHG emissions, e-waste, use of hazardous substances and use of scarce, life cycle.

non-renewable resources, which together represent the environmental load related to ICT goods, networks and services over their 

Second order effects (or the environmental load

reduction achieved by ICTs): the impacts and opportunities

created by the use and application of ICTs;   e.g. travel substitution, transportation optimization, working environment changes, use of environmental control systems, use of e-business, e government, etc.

the “Enabling Effect” which represents the possible greenhouse gas (GHG) emissions reduction by five major opportunities: dematerialization, smart motor systems, smart logistics, smart buildings and smart grids.

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Definition of Environmental KPIs

A Key Performance Indicator (KPI) is a metric or measure used to quantify and evaluate organizational performance in relation to the meeting of the targets and objectives.     Commonly used environmental KPIs are:   energy consumption, from fuel use or electricity consumption, or use of renewable energy; GHG emissions depending on the scope, or by type of gas; waste generated; waste recycled; water used; and recycled, hazardous materials used, etc.

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Examples of Environmental KPIs by Global Organizations or Initiatives

Carbon Disclosure Project (CDP) Dow Jones Sustainability Index (DJSI) GHG Protocol Corporate Standard Global Reporting Initiative (GRI) ISO 14031 ISO 14064-1 ITU – Study Group 5 International Electrotechnical Commission (IEC) European Telecommunications Network Operators’ Association (ETNO) European Telecommunications Standards Institute (ETSI) The Green Grid GSMA

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Suggested Process for KPIs Definition

In order to build up KPIs based on organizational needs: 1.

identify types of KIPs desirable for the organization, based on the specific needs and business reality; 2.

collect the inputs needed for the KPIs; 3.

put in place verification to ensure that the KPIs meet quality expectations in terms of decision-making.

Define the needs KPI definition Analysis and target setting KPI build up

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Suggested Process for KPIs Definition

(cnt’d)

1.

identify

types of KIPs

desirable for the organization, based on the specific needs;

Relevant characteristics that apply that apply when choosing KPIs: KPIs can be constructed in different ways:    Relevance Measurability Uniformity     Absolute/relative Direct/indirect Positive/negative Local/global

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Suggested Process for KPIs Definition

(cnt’d)

2.

collect the inputs

needed for the KPIs;

      Identify a responsible group and/or dashboard Identify the organizational and geographical boundaries Identity key actors Have a reliable database or data storing software to store and/or manage data Establish a period of data gathering Identify data/KPIs and their boundaries

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Suggested Process for KPIs Definition

(cnt’d)

3.

put in place

verification

to ensure that the KPIs meet quality expectations in terms of decision-making

  Why:   Reduce data uncertainty Minimize errors in data gathering Meet investors expectations Allow a better decision-making Processes:   Internal verification process  Comply with ISO 14001 External verification process  Third party  Comply with ISO 14001

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Target Definition

One of the objectives of quantifying environmental performance through KPIs is the establishment of environmental targets.

There are 3 main types of ICT-related environmental targets:    Eco-efficiency targets ICT enabling effects targets Communication targets

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Checklist example

Alignment of environmental and business strategies in the short and long term Definition of environmental aspects to be assessed (waste, energy, materials, GHG, etc.) Identification of primary input value of the environmental aspect identified Establishment of relevant KPIs for environmental performance management Creation of a standardized process for data gathering and KPI build up Identify a responsible KPI data group to carry out the process.

Identify organizational and geographical boundaries Identify key data managing actors.

Have a reliable database or data software to store and/or manage the data.

Establish time periods for data gathering.

Definition of environmental targets Definition of activities and programs to meet the targets Follow up targets and improve your environmental performance

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Conclusions

Key Performance Indicators can help:      Manage ICT environmental data in a more efficient and sustainable way Compare ICT environmental data of similar companies Facilitate decision making and effective resource allocation Improve the performance and efficiency of the company Reduce costs, while reducing environmental negative effects

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Suggestions

The variety of environmental KPIs and targets defined by ICT companies suggests:  need for global standards and methodologies that could help companies defining KPIs and improve their environmental performances; Some environmental issues have been neglected:  need for information on KPIs to manage electric and electronic waste in ICT companies, and also in the provision of ICT products and to final customers.

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More information http://itu.int/ITU-T/climatechange/ess/index.html

 Contact:  Cristina Bueti ( [email protected]

)  Daniela Torres ( [email protected]

)