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May 2012

A case study on the assessment of environmental impact of ICT services in Korea. Hyosik Min Environmental Strategy Manager CSR Office SK Telecom. May 2012. Contents. I. SK Telecom Overview II. Background and introduction III. Approach and methodology

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May 2012

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  1. A case study on the assessment of environmental impact of ICT services in Korea Hyosik Min Environmental Strategy Manager CSR Office SK Telecom May 2012

  2. Contents I. SK Telecom Overview II. Background and introduction III. Approach and methodology IV. A case study: Real-time Navigation (RTN) V. ICT GHG potential abatement in Korea VI. Introduction to Further Study

  3. Section 1 SK Telecom Overview

  4. Mobile SK Telecom Overview SK Telecom is the leading telecommunication company in Korea and has launched a lot of innovative services Cutting edge Tech. and Servces Award & Recognition World’s Most Innovative Companies Ranked 91st One of two Telco companies selected (April 2005) Winner of “National Customer Satisfaction Index” 1st Place for 14 consecutive years (October 2011) “Best Asia Telecom Carrier” Awarded two consecutive years (Telecom Asia & IDC, April 2007) DJSI world Sector leader in Mobile Telecommunications ’84 ’96 ’02 ’06 ’07 ‘11 AMPS Real Time Navigation CDMA CDMA 2000 1X e-Commerce EVDO Together With Shareholders Movie & Video Music HSDPA Game WiMax OnlinePortal Mobile Portal TD-SCDMA Test-bed Mobile Money HSUPA SNS LTE Cloud Service

  5. Telecommunication Market in Korea Korea has fast growing mobile communication market and SK Telecom has continued its sustainable growth Mobile subscriber Selected key figures of SK Telecom (As of Dec. 2011)

  6. SK Telecom’s Environmental Management Strategy SK Telecom established companywide strategy for environmental management to actively respond to environmental issues Response to Climate Change Reduction of Social GHG Emissions(SE) Establishment of an Eco-Friendly Corporate Culture Comply with all demestic requlations related to GHG reductions Recognize the effects of the country’s GHG reductions through ICT Stabilize the company’s environmental management system and reach a consensus among employees

  7. Section 2 Background and Introduction

  8. Background Importance of ICT toward GHG emission abatement has been studied globally • GeSI: <SMART 2020>, 2008 • “ • Identified global emissions abatements in 2020 is five times of its own footprint • Gartner report, 2007 • “ • ICT Industry is responsible for 2% of global carbon emissions • ” • ”

  9. Introduction “A study on social GHG abatement by the use of ICT” • The purpose of the study was to; • Demonstrate the potential GHG abatement of “Green by ICT” solutions in Korea between 2011 and 2020. • The scope of the study included; • Role of ICT in climate change mitigation in national level; • Contribution of ICT services to abate GHG emission; • Development of methodology to calculate GHG emission abatement; and • Quantification of potential GHG abatement in Korea.

  10. Section 3 Approach and methodology

  11. Approach: ITU-T L.1410 Part 2 According to Part 2, we have applied Gap Analysis between Reference Product System and Target ICT service. Target ICT service (Project scenario) Reference Product System (Baseline scenario) Less GHG (CO2e) GHG (CO2e) • Energy • Fuel • Energy • Fuel Transport Transport ICT service Comparisons between the systems on the basis of achieving the same functional units

  12. Approach: ITU-T L.1410 Part 2 We have applied quantification formulas by categories and secondary effects based on Part 2.

  13. Scope Boundary: Analyzed 14 ICT services 3 selection criteria 1. Current offering from ICT industry players 3. Government’s ICT strategy and plans 2. Global Benchmarking 14 ICT services for analysis

  14. Methodology: 6 Steps of workflow Identify the functional unit and expected second order effects 1 Define scope and boundary 2 Develop two different scenarios for comparative analysis 3 Estimate second order effects and GHG emission abatement 4 Project GHG emission abatement by year 2020 5 Aggregate GHG emission abatement 6

  15. Section 4 A case study: Real-time Navigation

  16. Real-time Navigation (RTN) t 1 2 3 4 5 6 Identify the functional unit and effects 1 • Definition: A GPS-based service that provides real-time information of optimal routes and traffic condition to the destination. • Functional unit: Movement of people from A to B in certain conditions such as time and cost.

  17. Real-time Navigation (RTN) 6 Define scope and boundary 2 t 1 2 3 4 5 * 2008, Korea Transportation Safety Authority ** 2010, Korea Internet & Security Agency

  18. Real-time Navigation (RTN) Develop two different scenarios t 3 1 2 3 4 5 6 * <T-map user statistics>, SK telecom ** <Nissan SKY Project> , Nissan Motor

  19. Real-time Navigation (RTN) Estimate the GHG abatement in base year t 4 1 2 3 4 5 By adopting ITU-T quantification category “Movement of people”, reduced travel time in 2011 after implementing RTN is; 6

  20. Real-time Navigation (RTN) 6 Project the GHG abatement by 2020 t 5 1 2 3 4 5 • Considering about, • RTN service users • Potential GHG abatement by RTN by 2020 • (unit: tCO2e) 3.5 million tCO2e in 2020 • The number of usage per user • CAGR 22% • Growth in automobile industry

  21. Section 5 Potential domestic GHG abatement

  22. 610 2011 2020 BAU 793 20 118.4 695 Abatements 14.57% Abatement potential Total emissions ICT direct footprint Abatements Conclusion Potential GHG abatements by adopting ICT services is expected to be more than 5 times of its direct footprint. Potential GHG abatements of ICT services is 5.8 times of ICT’s direct footprint. • Expected GHG abatement of each ICT services in 2020. (Units: tCO2e) • Financial value via ICT services in 2020 is expected to be about USD 72 billion in terms of energy savings.

  23. Implication • The significance of the study was; • The first case study which fully applied ITU-T L.1410 Recommendation: and • The first study on assessing GHG abatements by the use of ICT in Korea (of Republic). • The limitation of the study was; • Absence of LCA approach for first order effect. • The recommendation for further study is; • Prioritization of 14 ICT services in terms of possibility of standardization; • Applying LCA approach for first order effect; and • Planning for developing CDM methodology.

  24. Section 6 Introduction to further study

  25. Introduction of Phase II The scope and work streams of phase II : Work Stream 1 Work Stream 2 Work Stream 3 Work Stream 4 Supplement target ICT services Cooperate with major global organizations Recommend utilizing GHG abatement via ICT Discover target ICT services by prioritization • Possibility for global standardization • Corresponding to ICT services of SK telecom • Potential GHG abatement • Supplementing with qualitative and quantitative methods (e.g. user surveys, experiments) • Analyzing direct impact with LCA approach • Contributing a case study and sub-methodology to ITU-T • Collaborating with global organizations of standardization/ telecommunication companies • Suggesting development of CDM for ICT services overseas • Suggesting utilizing GHG abatement under domestic GHG abatement plans Promoting global standardization of Green by ICT 2 target ICT services based on prioritization Enhancement of the limitation in phase I Reviewing the ways to approve GHG abatement

  26. Thank you Hyosik Min +82-2-6100-2253 hmin@sk.com

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