Avaya‘s efforts to track our greenhouse gas (GHG) emissions focus on the collection of electricity, natural gas, and fuel oil utilities consumption data for our owned and our largest leased locations, in which case actual consumption is measured and itemized. Avaya has selected a third party enterprise carbon management system which has enhanced our ability to monitor our emissions and present results quickly and efficiently. How does our process work? Facility management works with reporting Avaya locations to load their utility data on a monthly basis. Locations are asked to provide data regarding water consumption, solid waste, scrap electronics, batteries, and consumer recyclables (i.e. paper, glass, plastic, aluminum, cardboard, and any other materials being recycled) where possible. We also track employee business air travel by receiving regular reports from Avaya’s travel partner that aggregate travel across the world and provides mileage for these trips. Then, results and outputs from our carbon management process are reported to the Sustainability Officer, the Green Core Team and the Environmental Steering Committee. Here is a brief summary of our 2009-2010 carbon footprint, as reported in our 2011 EPA Climate Leaders inventory summary. 2009 Baseline Total Corporate Carbon Footprint: 179,061 metric tons of CO2e Breakdown by Scope
Scope 1: 18,106
Scope 2: 146,323
Scope 3: 14,632 2010 Total Corporate Carbon Footprint: 174,022 metric tons of CO2e Breakdown by Scope
Scope 1: 21,331
Scope 2: 138,637
Scope 3: 14,054 Assurance Received on 8/2 Dear Avaya, Congratulations! Avaya has successfully completed the Climate Leaders base year reporting requirements. This includes: 1.) Inventory Management Plan (IMP): We have a copy of your IMP dated 7/22/11 and a review form from our contractor WSP Environment & Energy indicating that you have met all of the required components of a high quality IMP as specified in our IMP Checklist. 2.) Inventory Data: We have a copy of your Annual GHG Inventory Summary and Goal Tracking Form dated 7/26/11 with data for your base year 2009 through year 2010. 3.) Site Visit: We have a record of the site visit to the Westminster, CO facility on 2/7/11 from our contractor WSP that performed the site visit indicating that all of the required IMP components have been successfully met on-site. Thank you for your participation in the Climate Leaders program. Carbon Reduction Commitment Avaya is pleased to be making a formal commitment to reduce company greenhouse gases by fifteen per cent of its 2009 benchmark by the year 2015. With this announcement Avaya is making an explicit commitment to decrease its carbon footprint. Avaya felt it was the appropriate time to take another step forward in our carbon management and climate change policy. Following an internal assessment, Avaya is challenging itself to further reduce the company's carbon footprint, and committing to do it through operational changes rather than carbon offsets. Avaya also notes that it is inherently difficult to forecast out five years of emissions, growth and business operations. As a result, there are some limitations with the analysis used to project a reduction goal out to 2015, primarily arising from the difficulty of projecting complex actions and rates out to five years in the future. Additionally, our footprint will necessarily be calculated with the most current carbon factors and protocol attendant to the GHG Protocol, and as result any changes in the protocol may change the emission rates Avaya calculates. Changes in Footprint Avaya has made significant enhancements to its carbon footprint tracking and measurement processes over the last year. We have added a number of sources that were not included in previous footprints, but have been added to our baseline year going forward (2009). Additionally, many of the emission factors have been updated and resulted in small changes in our footprint. In total, these additions represent roughly 16% of our 2010 footprint and 19% of our 2009 footprint. - Small sites: Starting in 2010, but extending these additions back to our baseline year of 2009, we have added in a formula to estimate the portion of our global real estate footprint that falls below this 20,000 square foot threshold for which Avaya lacks operational control. As a result, we now capture, primarily through hard data but also through estimates, 100% of our global real estate profile. This calculation is done for both electricity and natural gas.
- Estimated Travel (2009 exclusively): When a material event occurs for merger and acquisition we have a process in place to account for changes in employee base. This draws from the most recent and/or applicable data to make projections of what that travel is most likely to have looked like for the missing time. Thus far, we have just one such event and have used that to incorporate legacy Nortel travel data into our footprint for 2009, the only year that is not covered under existing and actual data.
- District heating: Several Avaya locations purchase district heating, which is defined as“the supply of heat or hot water from one source to a district or a group of buildings.” This service is bought on a MBTU basis and converted into CO2e.
- Refrigerant:As part of our Climate Leaders review process, Avaya conducted a refrigerant assessment of its major sites. As a result, we are establishing a procedure that requires annual Refrigerant reporting
Carbon Disclosure Project Some 3,000 organizations in some 60 countries around the world now measure and disclose their greenhouse gas emissions and climate change strategies through CDP, in order that they can set reduction targets and make performance improvements. This data is made available for use by a wide audience including institutional investors, corporations, policymakers and their advisors, public sector organizations, government bodies, academics and the public. Challenge: Cutting carbon footprint through operational changes
Avaya felt it was the right time to take another step forward in its carbon management and climate change policy. Following an internal assessment, the company challenged itself to further reduce its carbon footprint, and committed to do it through operational changes rather than carbon offsets. For the first time Avaya set a target to reduce emissions; by 15% by 2015 from its 2009 baseline Benefit: Energy efficiency brings cost savings and business opportunities
Avaya has a team of experts in place to evaluate new and existing risks and opportunities through regular reporting and on-going dialogue across functions including representatives from Research and Development, IT, Law, Real Estate, Marketing, Government Affairs, Ethics and Compliance and Environment Health and Safety. Excerpts from the 2010 and 2011 Avaya CDP Response Describe your company’s process for identifying significant risks and/or opportunities from climate change and assessing the degree to which they could affect your business, including the financial implications. Avaya vigorously and actively evaluates new and existing risks/opportunities related to climate change and the global response to that challenge. These are primarily identified by the various components of the Avaya sustainability program, including the Sustainability Officer, the Environmental Steering Committee and the Green Core Team. With the cross functional nature of these teams, including representatives R&D, IT, Law, Real Estate, Marketing, Government Affairs, Ethics and Compliance and EHS, Avaya has experts in place to evaluate the many diverse risks and opportunities that are created by the global response to climate change. With regular reporting rhythms and robust ongoing dialogue, we are confident that new risks and opportunities are accounted for and existing risks/ opportunities are properly accounted for in our finance activities, regulatory compliance, offerings and operations. What are the current and/or anticipated risks, Aspects inherent to our operations that may be subject to climate change risks include the following: increased regulations, the procurement and transport of raw materials and components used by our manufacturers, and the use of these in the manufacturing process; manufacturing emissions; packaging and transport of finished goods; emissions and waste generated by our business offices; emissions associated with business travel (air, vehicular, fleet services, etc); emissions associated with business activities and emissions generated by our products. To manage the small, but real, potential risks created by our GHG emissions and climate change, Avaya joined the U.S. Environmental Protection Agency (EPA)'s Climate Leaders program in 2010. Through the Climate Leaders program, Avaya has committed to 1) Develop a corporate-wide GHG inventory of the six major greenhouse gases and report progress towards reduction goals annually based on detailed EPA protocols and guidance; 2) Develop a corporate GHG Inventory Management Plan based on a detailed EPA checklist to institutionalize the inventory process; and 3) Set an aggressive corporate-wide GHG emissions reduction goal to be achieved over the next 5 to 10 years. What are the current and/or anticipated significant regulatory opportunities? Opportunities exist to increase market share by developing products that reduce energy demand for our customers. However, with these increased opportunities come increased challenges to build products that achieve desired operational characteristics while meeting current and anticipated regulatory requirements. If further regulations or carbon taxes were to be imposed, Avaya believes that some of our products would be highly valued tools for our customers to reduce their carbon footprint. Avaya continues to offer a number of solutions and products that can drive down customers’ carbon emissions. These include mobility software and network components that operate efficiently and can drive down the energy required to run an effective, low carbon network. Also, our Teleworking and Telecommuting product lines enable individuals in the company to work remotely (virtual office) and reduce physical risk. In addition, we believe there are exciting opportunities to use our communication equipment to reduce travel emissions. Our solutions can enable a number of exciting mobility technological tools that decrease the need for travel. Please describe how your overall group business strategy links with actions taken on risks and opportunities, public policy engagement and external communications. Avaya recognizes that climate change is a global challenge and is proud to play a part in the transition to a lower carbon and more efficient economy. With millions of people using our products around the world, our strategy is to develop solutions and products that lower carbon footprints and increase efficiency. By developing and delivering solutions that are environmentally friendly and green, we are able to assist our customers to lower their own resource footprint. Looking towards the future, we see these market shifts as clear market opportunities. The second major competent of our carbon management strategy is ensuring that we are efficient in our own operations, seeking to minimize our own resource and carbon footprint as well. Avaya’s sustainability program is also tasked with monitoring emerging carbon regulations around the world and ensuring that our company is in compliance with these new and evolving laws. Our products/solutions As part of our strategic business plan Avaya has invested R&D budget in new developing technologies such as IP phones that reduce 20% of our customers’ electricity consumption, and server virtualization that saves not only electricity but also physical space. Additionally, as part of our strategic plans to reduce costs and carbon from shipping, we have re-designed the packaging used in our high volume products to lower the resource required to deliver them to our customers around the world. Increase operational capacity 2009 and into 2010 has been a year of real progress for carbon management at Avaya, which is the result of strategic decisions and investments on the part of the corporation. First and foremost, we have made an public emissions reduction commitment for the first time, pledging to reduce our emissions 15% from our 2009 baseline by 2015. Other examples of the increased capacity include the utilization of a 3rd party enterprise carbon management system, which makes our carbon management efforts much easier to complete and report. Also, Avaya joined the EPA Climate Leaders program in 2010. Then, Avaya's Government Affairs Organization continues to engage with policymakers with regards to regulatory issues, primarily in the U.S. and in the EU. Finally, the position of Sustainability Business Leader is a new, fulltime and dedicated position at Avaya, as of December, 2009. This role is significant step forward for green/sustainability work, including climate change, bringing increased capacity/knowledge in this space, greater visibility internally and externally and a greater investment in resources. Education Over the last year, we have increased external communication tools related to climate change, such as the new sustainability section of the avaya.com blog. This external communication tool has a number of posts devoted to climate change and the response from both Avaya and the global economy. We anticipate that this positive momentum will continue. Additionally, there has been significant work done to increase employee education via internal communication, local green teams and events, such those that celebrated Earth Day at sites around the world. Check out a 2011 webinar with Avaya, Hewlett-Packard and Hara around the business drivers for energy and sustainability optimization, and the strategies and best practices that are enabling organizations to achieve their energy and environmental management initiatives. Topics covered include
• Why companies are treating energy utilization and sustainability as business imperatives
• How organizations are driving efficiencies and creating value through transparent, results-oriented strategies
• Why identifying, prioritizing and tracking resource reduction and sustainability initiatives can impact the bottom line
• How to demonstrate progress and best practices for use with energy and sustainability teams
• Ways to confidently communicate performance and achievements to all stakeholders
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