Written by: Mats-Olov Hedblom

In 2006, the waiting list in some places for a Toyota Prius, the world's leading hybrid car, was reportedly up to a year. Toyota simply couldn't produce them fast enough to keep up with the huge customer demand. Although this was good news for the carmaker, it's also a clear signal that environmental and commercial success can comfortably sit side by side.

As triple-bottom-line reporting - which focuses on the economic, social, and environmental aspects of corporate activities - gains traction around the globe, the environment has emerged as an increasingly important consideration for industry. Issues such as global warming have thrust environmental concerns into the spotlight. Industry is regarded as having a key role in addressing them and the ICT sector is even seen as having a key role in helping to solve them. Consequently, companies face increased scrutiny from their stakeholders over environmental practices.

In turn, the term "energy efficiency" has taken on new meaning. No longer simply a buzz phrase, it has now been adopted as a core business principle. Fortunately, the telecommunications industry is in a unique position to support protection of the environment through energy-efficient solutions that contribute to companies' bottom lines. For example, conference calls and web forums have now be- come everyday events. These technologies reduce the need for business travel - an activity that is time-consuming, expensive and polluting. In emerging markets, the opportunities to replace physical transport are even greater; for example, people no longer need to travel by bus for two days to visit the bank or to a relative to borrow money. Payments can be made via a simple SMS transaction. 

Collaboration among players in the telecommunications industry has also resulted in the development of cutting-edge, energy-lean solutions. In the fourth quarter of 2006, the GSM Association's Development Fund, together with Ericsson and pan-African operator MTN, announced they had teamed up to establish biofuels as an alternative source of power for wireless networks in remote areas of Nigeria. 

The three organizations are running a pioneering project in Nigeria to demonstrate the potential of biofuels to replace diesel as a source of power for mobile base stations located beyond the reach of the electricity grid. The project also represents the first of three biofuel pilots that Ericsson and the GSMA Development Fund are involved in around the world.

Biodiesel, which offers commercial and environmental benefits, has several important advantages over conventional diesel as a power source for base stations. For example, it can be produced locally, creating employment in rural areas and reducing the need for transportation, logistics and security. It also has a much lower impact on the environment than conventional diesel. The cleaner-burning fuel results in fewer site visits and extends the life of the base-station generator, reducing operator costs. While biodiesel will not be a panacea for today's energy ills, it represents one pioneering example of how Ericsson is driving environmental change by providing energy-optimized coverage solutions.

Looking forward, there are two key questions facing our industry. The first is whether developing nations must copy the developed nations' paths towards prosperity, or if less-resource-demanding alternatives -employing information and communication technologies - can be used. The second is whether the prosperity of developed nations must continue to rely on unsustainable energy and resource consumption, or whether technological solutions - such as universal broadband - can be employed to break today's inter- dependence between resource consumption and economic growth.

I believe there is significant scope for the information and communications industry to provide energy-efficient solutions to an increasingly energy-hungry world. As a first step, the inclusion of environmental and sustainable capabilities in our offerings will help raise awareness of how our industry can address environmental issues, while also addressing the growing environmental concerns of customers. And as the Toyota example highlights, in today's more environmentally conscious world, it's a strategy that generates good business opportunities.

Mats-Olov Hedblom
Ericsson Environment Director

For more information please visit:
www.ericsson.com/corporate_responsibility