How we plan to become climate neutral

of our electricity in the Netherlands is green

KPN intends achieving climate neutral production in the Netherlands by reducing the electricity used by the networks and making the consumption of the rapidly growing data centers more efficient. KPN also purchases green power exclusively from Dutch power stations so as to be sure that the power is genuinely green. This prevents international double-counting and ensures that imports do not lead to an adverse environmental effect in the exporting country. It also helps us to stimulate the Dutch market for green energy. In 2008, 39% of our power in the Netherlands was green. Our target is that 100% of the electricity we consume in 2011 will be green.

We are investigating whether to generate our own green energy. We need to further reduce the fuel consumption of our lease vehicle fleet and our buildings must use less gas and electricity. In the future, KPN may also compensate in a small way for CO₂ emissions by purchasing carbon credits, but this is not our preferred solution – we will do it only when we have utilized all other opportunities for CO₂ reduction. We have also set ourselves a maximum limit of 15% CO₂ compensation.

KPN helps partners to save energy

Dutch IT sector aims to increase energy efficiency by 30%

The IT sector is responsible for 2% of the world’s total CO₂ emissions.

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Not only does KPN aim to reduce its own energy consumption, but we also want to help our customers use less electricity. This might entail reducing the standby consumption of our modems and other communication devices or making teleworking easier through new IT solutions. In most cases we can only realize these types of external savings, which are in keeping with our chain approach, by working closely with other parties. In 2009 we will take a closer look at the potential for this. We will start up projects with partners wherever possible. KPN wants to calculate the effects our products and services have on the overall energy consumption in the Netherlands, which are known as chain effects.

Energy saving in 2008

In 2008 KPN took several important steps in the direction of a climate neutral future and has already achieved several goals in the domain of energy saving.

Fewer gigawatts

We have realized an energy saving of 40 gigawatt hours by, among other things, closing obsolete switching centers and improving the cooling in existing switching centers. This saving is equivalent to the power consumption of about 10,000 Dutch households – a great result, because it enabled us to far exceed our 2008 target saving of 28.5 gigawatt hours. In addition, it provides a structural cost saving of EUR 3.7 million a year.

Greener and more efficient use of electricity

The volume of Dutch green power purchased by KPN rose in 2008 from 23% to 39% of our total consumption.

The energy efficiency of the telephone and Internet network improved in 2008 as well, especially by switching over to the more energy efficient “all-IP network”. Network electricity consumption did not increase, while KPN supplied over 50% more bandwidth in 2008 than in 2007.

KyotoCooling® ready for large-scale application

KyotoCooling®: cooling data centers more economically

In the Netherlands it's possible to cool a data center with outside air all year round.

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KPN successfully concluded a trial project with KyotoCooling® in Amersfoort. We are now ready to apply this energy-saving cooling method, which makes use of the outside air, on a large scale in our data centers. Getronics is using a similar cooling method in its data centers and is achieving a substantial saving too.

The first large-scale application of this technology by KPN will take place in our CyberCenter in Haarlem. KPN is in the forefront internationally in terms of applying this energy-saving method on such a scale.

Thanks to KyotoCooling® the energy consumption of the KPN CyberCenters can fall by a total of 20% (see KyotoCooling®). The project demonstrates how much customers appreciate us offering services that fit in with their environmental targets. Even before the technology was in operation the Ministry of Economic Affairs decided to move its data storage systems to the CyberCenter in Haarlem, because of that center’s unique energy-saving cooling.

Virtual platforms use computers much more efficiently

In 2008 we saved energy at our CyberCenters by also making use of virtual platforms, thereby ensuring that the capacity of the computers in the CyberCenter is used much more effectively. Both KPN and Getronics use this method. Previously a separate computer was reserved for a program run on a customer’s behalf at our CyberCenter. Generally, not all of its computing capacity was used, even though it has to operate at 100% and be cooled. A virtual platform enables us to bundle the capacity of computers. We can run programs from several customers on a single computer. This makes a data center much more efficient and the energy consumption can be cut by half.

Supplier Code of Conduct: KPN opts for “clean” suppliers

suppliers have received our Supplier Code of Conduct; 45 signed in 2008

The Supplier Code of Conduct that we introduced in 2008 also provides good opportunities to save energy on the equipment that we purchase. The Code lays down a number of criteria for the use of energy and raw materials and for corporate social responsibility. In this way we can encourage sustainable behavior and responsible energy usage in the entire production chain of our products and services. KPN’s preferred suppliers are those that are ahead of the market in terms of energy efficiency, the use of raw materials and corporate social responsibility. In principle, KPN does not do business with suppliers that do not accept this Code, although we offer to help improve suppliers that do not yet meet all the criteria of the Code. In September 2008 we submitted the Code for the first time to 86 of our main suppliers for their signature. By December 31, 45 suppliers had signed the code. They represent more than 50% of KPN’s annual purchases.

Helping customers save energy

Getronics does a lot in the domain of energy saving, especially in the data centers. Probably even more important is the fact that Getronics helps other companies to save energy. “Customers call in Getronics to achieve their environmental goals, such as CO₂ reduction,” says Coen Olde Olthof, Vice President Marketing, Alliances, Portfolio & Strategy. Getronics workstation management, one of the company’s core activities, helps customers to save energy and facilitates teleworking. “When customers relocate their servers from their own site to the Getronics servers, the result is a net energy saving, because our data centers work more efficiently,” says Peter de Pater, Director of Portfolio & Alliances at Getronics. “Our IT also makes teleworking possible. We know how you can make workstations independent of time and place,” De Pater explains.

CO₂ emissions (in thousands of tons)	2008 ¹	2007 ⁴	2006 ⁴	2005 ⁴
KPN The Netherlands
Scope 1 CO₂²	76.1	37.5	42.4	46.2
Scope 2 CO₂	297.9	294.0	361.5	371.5
Scope 3 CO₂	36.4	–	–	–
Total CO₂ in the Netherlands	410.4	331.5	403.9	417.7
Other countries ³
Scope 1 CO₂²	11.7	13.8	13.9	12.3
Scope 2 CO₂	149.1	194.7	190.8	186.9
Scope 3 CO₂	–	–
Total CO₂ in other countries	160.8	208.5	204.7	199.2
Total the Netherlands and other countries	571.2	540.0	608.6	616.9

1 Including Getronics
2 Including emissions from cooling installations (converted to CO₂ equivalent)
3 E-Plus and BASE
4 Figures for 2007, 2006 and 2005 from Sustainability Report 2007 (page 43)

KPN cuts down kilometers driven by mechanics

less travel time for mechanics of the Business Market division

The travel time and number of kilometers driven by mechanics of KPN Business Market division were reduced substantially in 2008. The travel time for a delivery order fell by 17% from over 36 minutes per order in 2007 to about 30 minutes in 2008. The reduction for service orders was 6%. All told, the mechanics drove 800,000 fewer kilometers. We realized this through the Lean6Sigma project, which led to a better coordination of orders. Research showed that different mechanics were sent out for different products. By scheduling the work planning primarily on the basis of the region, not of the product, it has been possible to combine many tasks. This procedure is known as geo-planning. The saving realized is equivalent to a reduction of 116 tons in CO₂ emissions.

Following a trial in 2008 in the Eindhoven area, KPN plans to equip commercial vehicles in that area with TomTom WORK plus GPRS in 2009. With this system we will be able to see the exact location of a mechanic. Consequently, we are almost always able to send the mechanic that is closest to the address of a malfunction, which keeps down the number of kilometers driven and increases customer satisfaction.

Rise in paperless billing

Since 2008 KPN has been sending some of its post CO₂ neutral as “Green Post" via TNT.

KPN saves energy and raw materials by replacing the millions of paper invoices with digital ones. At the end of 2008, 45% of bills from KPN’s Consumer Market division, which sends out the vast majority of KPN’s bills, were paperless. As well as KPN, Getronics Nederland, BASE and E-plus are switching to paperless billing. They therefore save paper and – because distribution takes place over the digital highway instead of via the traditional post – many kilometers too.

In 2008 KPN started sending its post CO₂ neutral as “Green Post” via TNT. TNT offers the Green Post service within the framework of its own sustainability program. CO₂ emissions of postal deliveries are compensated in various ways, including an investment in a wind farm in India. From September 2008 until the end of December 2009 KPN will have send all its letters and parcels (over 80 million) climate neutral via Green Post.

The Green Grid

KPN has become a member of “The Green Grid”, an organization of IT specialists that seeks to improve the energy efficiency of data centers. Our membership reaped benefits in 2008. Among other things, the Green Grid published a standard – the power factor – for calculating the energy efficiency of data centers.

Disposing of waste responsibly

In 2009 we aim to realize a further increase in the percentage of waste reused. Various measures will be taken for that purpose, such as improving waste separation and new arrangements with our waste processing companies.

KPN’s non-recyclable refuse is incinerated with energy recovery. A considerable amount of the waste stream that is reusable is made up of materials left after switching centers and other decommissioned equipment have been disassembled and dismantled.

The percentage of office waste that can be reused is low in comparison with the reuse of IT waste, because office waste consists mainly of non-recyclable refuse. However, items such as paper, cardboard and plastic beakers are collected separately.

IT devices, such as PCs, laptops and printers, that are no longer used at KPN sites because they are defective or have been replaced are processed separately. Up to December 1, 2008 KPN worked with SISO, a company that specializes in removing and recycling IT waste responsibly. In November 2008 KPN and SISO organized a seminar about the undesirable dumping of scrapped IT products in developing countries. Despite legislation, this abuse is still happening on a large scale, according to bodies such as Greenpeace. Together with Greenpeace and companies including Rabobank, Viafrica and Fujitsu Siemens, we discussed what we can do to prevent such dumping.

Getronics too has both an approach to and the wherewithal for removing and processing IT equipment responsibly. We have decided to entrust the disposal of this category of waste to Getronics with effect from December 1, 2008. The equipment is gathered together in a collection center, where a decision is made as to which devices can be reused and which need to be disassembled and processed. A lot of the equipment and raw materials can be reused.

Removal of our customers’ IT equipment

Customers can hand in their obsolete equipment to KPN stores, such as those under the Primafoon or Business Center banners. Customers can also get rid of these devices them in municipal refuse collection centers with separate facilities for IT waste.

KPN is affiliated to the Stichting ICT-Milieu. This foundation organizes waste collections on behalf of companies that put IT products on the market. Among other things, the foundation arranges for separate collection from municipal environmental waste streams and for used IT equipment to be processed by specialized waste-processing companies.

Industrial waste
The table below gives an overview of the quantities of industrial waste generated at KPN sites in the Netherlands.

Changes in waste flows within the KPN organization in the Netherlands ¹	unit	2008	2007	2006	2005
Industrial waste (not hazardous)
Recycled/reusable ²	tons	3,631	2,877
Non-recyclable refuse	tons	2,658	3,037
Rubble, demolition refuse	tons	499	208
Total industrial waste (not hazardous)	tons	6,788	6,122	6,033	5,526
Industrial waste (hazardous)	tons	45	48	77	41
Total waste	tons	6,833	6,170	6,110	5,567
% Reuse		53%	47%	45%	42%

1 Figures for 2008 including Getronics
2 Increase in 2008 caused partly by increase in disassembled materials in total waste flow

Soil cooling and heat pipe

KPN developed the heat pipe to make the cooling of underground street furniture and the switch boxes for mobile network antennas more efficient.

KPN has developed two new methods to make the cooling of underground street furniture and switch boxes for mobile network antennas more efficient: the heat pipe and soil cooling. For soil cooling we make use of the cold temperature of the soil under the switch box: water flows through a pipe deep under the ground and returns cooled to the surface. In the fall of 2008 it was decided, on the basis of the experience gained from trials at two sites, to test an improved concept at a third site.

A heat pipe is an enclosed tube that is placed half in the soil under a network switch box. Air circulates in the tube. The heat pipe keeps the temperature in the cabinet at the right levels by means of condensation. In 2009 we will decide whether to use this method of cooling on a larger scale.

KPN conducts campaign for more wind energy

gigawatt hours purchased for 2009 and 2010 from the Amalia offshore wind farm. This is one fifth of the expected production

We have once again explored the prospects of generating our own solar or wind energy but have decided not to proceed with our own production for the time being. We came to the conclusion that we can achieve faster, cheaper and bigger reductions in CO₂ emissions by making our network and data centers more efficient.

In September KPN, along with lobby group Wind op Zee, the World Wildlife Fund and 19 other organizations, signed a full-page advertisement calling on the government to invest more in large-scale offshore wind farms. “The production of 6000 megawatts, enough to allow all the trains to run on clean electricity and to provide power to more than six million Dutch homes, is achievable and sorely needed,” said KPN and its partners in the advertisement.

In November 2008 KPN put its money where its mouth is by entering into a contract with energy company Eneco for the supply of 100 gigawatt hours of electricity that is to be generated in 2009 and 2010 at the new Amalia offshore wind farm in the Dutch North Sea.

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