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Building a Sustainable Future

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ADVA
ADVA

The document discusses ADVA Optical Networking's efforts to build a more sustainable business model. It describes how the company lacked a cohesive corporate social responsibility framework in 2010 but has since implemented a more comprehensive 10-dimensional model. This included conducting a life-cycle assessment, improving energy efficiency of its products, recovering and refurbishing used equipment from customers, and winning a game-changing challenge from BT to optimize logistics. The company has gained public recognition for its sustainability improvements.

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Klaus Grobe November 2015 Building a Sustainable Future New Framework Drives Game-Changing Ideas
© 2015 ADVA Optical Networking. All rights reserved. Confidential.2 Content • Who is ADVA Optical Networking? • Corporate Social Responsibility (CSR) in ADVA Optical Networking pre-2014 • Serious About Sustainability • New way of thinking – 10-dimensional model baseline • Post-mortem after baseline • Fixing the weak spots – stakeholder engagement example • Fixing the weak spots – circular economy example • The Game Changing Challenge • So where did we take it? • Public recognition – rewards
© 2015 ADVA Optical Networking. All rights reserved. Confidential.3 ADVA Optical Networking Richardson Atlanta Munich Meiningen Berlin Singapore Shenzhen Headquarters Office Representative Mobility Data Centers Cloud ADVA Optical Networking is a global provider of fiber optic infrastructure products and services
© 2015 ADVA Optical Networking. All rights reserved. Confidential.4 Culture of Continuous Improvement and Growth Our History • Public company (FSE: ADV, TecDAX) • Founded in 1994 Our People • 1498-person team at year-end 2014 Our Innovation Strength • 700 R&D engineers (50% of staff) at year-end 2014 • Up 15% per year on average over the last four years Our Performance • 19% revenue CAGR since 1994 • 2015 revenue to exceed EUR 350M Our Community Initiatives Program (CIP) • Rooted in TL9000 framework • Global ISO9001 Certification (2006) • Global TL9000 Certification (2009) • Global TL9000 Re-Cert (annually) • We’re constantly optimizing internally via ADVA Efficiency Engine, Lean, 6-sigma, … Your trusted partner for speed and innovation
© 2015 ADVA Optical Networking. All rights reserved. Confidential.5 Corporate Social Responsibility (CSR) in 2010 • We had a mix of good and bad • We had no cohesive framework • We had to learn to share • We had great programs hidden • We had no public ‘face’ Wandering No ‘face’
© 2015 ADVA Optical Networking. All rights reserved. Confidential.6 Corporate Social Responsibility (CSR) in 2010 • By the end of 2010, we had a pretty good idea of what we needed to build • It was a BIG list! • Things like … Building cross-functional teams Nurture local volunteers Developing supplier code of conduct
© 2015 ADVA Optical Networking. All rights reserved. Confidential.7 Fast Forward to 2013 – the five pillars By then our house had a foundation – five pillars
© 2015 ADVA Optical Networking. All rights reserved. Confidential.8 Serious About Sustainability • But still, at the end of 2013, we were told to get serious about sustainability or potentially be replaced • While our program had matured, it still lacked structure and cohesiveness • It was a wake-up call for ADVA Optical Networking – we needed a more comprehensive approach
© 2015 ADVA Optical Networking. All rights reserved. Confidential.9 • We opened our doors • We engaged and learned a more comprehensive approach • We received clear feedback on strengths and gaps New Way of Thinking – 10-Dimensional Model Baseline
© 2015 ADVA Optical Networking. All rights reserved. Confidential.10 Post-Mortem After Baseline • We didn’t have the right team – needed more horsepower and wider reach • We had complete blind-spots • We had to recommit ourselves to learning about blind spots and developing programs around them
© 2015 ADVA Optical Networking. All rights reserved. Confidential.11 Circular Economy Example
© 2015 ADVA Optical Networking. All rights reserved. Confidential.12 ADVA Optical Networking’s First Full Life-Cycle Assessment – 2012
© 2015 ADVA Optical Networking. All rights reserved. Confidential.13 Circular Economy … But How? Key Principle: Longevity / Reduce, Reuse, Recycle – R3 Long Use Reuse of Products Reuse of Parts Closed-Loop Materials Recycling Open-Loop Materials Rec. Crushing of Products Shredder Dust Sorting and Disassembly Generation of raw Materials, Chemicals and Metal Recycling Energy Recovery (CO2!) Landfill User Maintenance Company Product Recovery Center Parts Recovery Center Materials Recovery Company Product Producer Parts Producer Materials Producer User of Recycling Materials Oil Recovery Company, Smelting Company Thermal Energy Collection Company Final Disposal Company Materials Supplier Recycling Center Shredder Company Collection Center Sales Company There are many references. One is (1994): ricoh.com/environment/management/concept.html
© 2015 ADVA Optical Networking. All rights reserved. Confidential.14 CPMRs Routers Bringing to Light What We Were Already Doing Refurbishment • We’re taking back the BT routers that have either been cancelled or ceased by BT • We wipe off circuit information, test and check operating status • Approx. 200 units per year from one BT stock location alone Reuse Olympic Refurb Project • Program in place for the kit used in the Olympics. CPMRs and SFPs • CPMR – Test, replace accessories, clean and test, accessories clean and/or replace • We supplied the packaging to BT to return these units to us • To-date we have completed 152 x CPMRs and 201 x SFPs Creative Customer Programs bring value to customer and environment
© 2015 ADVA Optical Networking. All rights reserved. Confidential.15 Pitch two radical ideas: 1) Network Design 2) ADVAnced Logistics Saw long-term benefit Oh, let’s go do this NOW! x-Haul X Y BT’s Game Changing Challenge – Pitches
© 2015 ADVA Optical Networking. All rights reserved. Confidential.16 Real Customer Benefits • Saves 300,000 miles/year • Saves 13,000 hours/year • Cuts 750 tons CO2 /year • 300% return on investment • New chapter in our relationship 2) ADVAnced Logistics Oh, let’s go do this NOW! BT’s Game Changing Challenge – Real Benefits
© 2015 ADVA Optical Networking. All rights reserved. Confidential.17 So Where Did We Take It? • Major improvements in one year • Won BT’s Game Changing Challenge We moved from high Bronze (red line) to high Silver (blue line)
© 2015 ADVA Optical Networking. All rights reserved. Confidential.18 Don’t Be Afraid to Jump In – There Can Be a Payoff!
© 2015 ADVA Optical Networking. All rights reserved. Confidential.19 EER, TEER, TEEER, etc.
© 2015 ADVA Optical Networking. All rights reserved. Confidential.20 The ICT Challenge We All Face [SMART 2020: Enabling the low carbon economy in the information age, The Climate Group on behalf of the Global eSustainability Initiative (GeSI), 2008] 0.0 0.5 1.0 1.5 2002 2007 2020 Global Footprint by Subsector [GtCO2] Telco Infrastructure + Devices Data Centers PCs, Peripherals, Printers Related increase in worldwide ICT electricity consumption 2%  10% • Global ICT carbon footprint will heavily increase to ~1.5 GtCO2 in 2020 • The related cost problems also grow with increasing cost per MWh
© 2015 ADVA Optical Networking. All rights reserved. Confidential.21 Circular Economy – Basic Work • Done full ISO 14040 Life-Cycle Assessment (LCA), starting 2012 • Several environmental impact parameters dominated by use phase / energy efficiency • Shown by own LCA • Confirmed by Huawei LCA* • Hence, focus on maintaining best energy efficiency • Traditionally also required due to small product form factor • Now complemented by other CE/DfR3 aspects – primarily recycling (erbium fibers) *) https://www.yumpu.com/en/document/view/8901629/huawei-whitepaper-on-energy-efficiency-and-carbon-reduction
© 2015 ADVA Optical Networking. All rights reserved. Confidential.22 0% 20% 40% 60% 80% 100% Ozone depletion Terrestrial ecotoxicity Marine aquatic ecotoxicity Freshwater aquatic ecotoxicity Human toxicity Abiotic resource depletion Eutrophication Acidification Global warming potential R&D Manufacture Distribution Use End of life FSP 3000 LCA LCA done with openLCA (V1.2.6) and ecoinvent (V2.2) Global Warming (GWP) Use phase dominates global warming, acidification, ecotoxicity, ozone depletion Erbium amplifiers have strong GWP – candidates for reuse/recycling
© 2015 ADVA Optical Networking. All rights reserved. Confidential.23 Energy Consumption vs. Bit-Rate IncreasePowerConsumption[W] 1 1 10 100 1000 10 100 1000 WDM Channel Bit Rate [Gbit/s] [ADVA Optical Networking data] • We have constantly increased the energy efficiency of our products – and will continue • Energy in use phase still dominates LCA • The latest version of 100G and the new 400G solutions are clearly market-leading – with significant gap against next followers • This is also articulated in the market – “Half a watt per Gbit/s”
© 2015 ADVA Optical Networking. All rights reserved. Confidential.24 ECO ICT Guideline Council* (Japan) Update • The ECO ICT Council Guidelines are the most stringent requirements on energy efficiency, compared to the few other relevant, existing TEER guidelines (e.g., ANSI ATIS, ECR) • A new version was issued in early 2015 • Now covering (coherent) 100Gbit/s solutions • With increased normative references for older (e.g., 10Gbit/s) solutions • Proposal to discuss ECO ICT guidelines later in QuEST Forum • The assessment proves (next page) that our transport gear is marked-leading *) http://www.ecoict.jp/eng/mark.html
© 2015 ADVA Optical Networking. All rights reserved. Confidential.25 ECO ICT Guideline Council – Results Update Example Older ADVA 100G New ADVA 100G The new WDM gear clearly exceeds latest ★★★★★ ranking (the more stars, the better) N.R. [Gbps/W] PC @ N.R. [W] 0.57 70.17 0.33 2424.24 0.86 9302.32 0.86 9302.32 0.86 9302.32 0.63 63.15 0.37 2181.82 0.96 8372.09 0.96 8372.09 0.96 8372.09 0.71 56.14 0.41 1939.39 1.08 7441.86 1.08 7441.86 1.08 7441.86 0.81 49.12 0.47 1696.97 1.23 6511.62 1.23 6511.62 1.23 6511.62 0.95 42.10 0.55 1454.54 1.43 5581.39 1.43 5581.39 1.43 5581.39 FoM [Gbps/W] Avg. PC [W] 1.09 37 0.70 1138 1.06 7579 1.80 4435 2.19 3658 ★★★ ★★ ★★★★★ ★★★★★ ★★ ★★★★★ ★★★★★Result ★★★★ ★★★★★ 8000 PC @ 1 Wavelength [W] PC @ full Wavelengths [W] Max. Throughput [Gbps] 2004 40 800 8000 8000 Ref.-Config. 2 DWDM w/ Degree-2 ROADMRef.-Config. 7 4 x 10G CWDM PtP 32 41 40 x 10G x 2 (2WCC) 40 x 100G x 2 (PCTN) 1296 13863 40 x 100G x 2 (QF) 597 6719 40 x 100G x 2 (PCN) 752 8118 271
© 2015 ADVA Optical Networking. All rights reserved. Confidential.26 Example Improvement: PSU Energy Efficiencies [ADVA Optical Networking data] Efficiency of power-supply units (PSUs) continuously improved over time
MHuthart@advaoptical.com Thank you IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited. The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation. Copyright © for the entire content of this presentation: ADVA Optical Networking. KGrobe@ADVAoptical.com

More Related Content

Building a Sustainable Future

  • 1. Klaus Grobe November 2015 Building a Sustainable Future New Framework Drives Game-Changing Ideas
  • 2. © 2015 ADVA Optical Networking. All rights reserved. Confidential.2 Content • Who is ADVA Optical Networking? • Corporate Social Responsibility (CSR) in ADVA Optical Networking pre-2014 • Serious About Sustainability • New way of thinking – 10-dimensional model baseline • Post-mortem after baseline • Fixing the weak spots – stakeholder engagement example • Fixing the weak spots – circular economy example • The Game Changing Challenge • So where did we take it? • Public recognition – rewards
  • 3. © 2015 ADVA Optical Networking. All rights reserved. Confidential.3 ADVA Optical Networking Richardson Atlanta Munich Meiningen Berlin Singapore Shenzhen Headquarters Office Representative Mobility Data Centers Cloud ADVA Optical Networking is a global provider of fiber optic infrastructure products and services
  • 4. © 2015 ADVA Optical Networking. All rights reserved. Confidential.4 Culture of Continuous Improvement and Growth Our History • Public company (FSE: ADV, TecDAX) • Founded in 1994 Our People • 1498-person team at year-end 2014 Our Innovation Strength • 700 R&D engineers (50% of staff) at year-end 2014 • Up 15% per year on average over the last four years Our Performance • 19% revenue CAGR since 1994 • 2015 revenue to exceed EUR 350M Our Community Initiatives Program (CIP) • Rooted in TL9000 framework • Global ISO9001 Certification (2006) • Global TL9000 Certification (2009) • Global TL9000 Re-Cert (annually) • We’re constantly optimizing internally via ADVA Efficiency Engine, Lean, 6-sigma, … Your trusted partner for speed and innovation
  • 5. © 2015 ADVA Optical Networking. All rights reserved. Confidential.5 Corporate Social Responsibility (CSR) in 2010 • We had a mix of good and bad • We had no cohesive framework • We had to learn to share • We had great programs hidden • We had no public ‘face’ Wandering No ‘face’
  • 6. © 2015 ADVA Optical Networking. All rights reserved. Confidential.6 Corporate Social Responsibility (CSR) in 2010 • By the end of 2010, we had a pretty good idea of what we needed to build • It was a BIG list! • Things like … Building cross-functional teams Nurture local volunteers Developing supplier code of conduct
  • 7. © 2015 ADVA Optical Networking. All rights reserved. Confidential.7 Fast Forward to 2013 – the five pillars By then our house had a foundation – five pillars
  • 8. © 2015 ADVA Optical Networking. All rights reserved. Confidential.8 Serious About Sustainability • But still, at the end of 2013, we were told to get serious about sustainability or potentially be replaced • While our program had matured, it still lacked structure and cohesiveness • It was a wake-up call for ADVA Optical Networking – we needed a more comprehensive approach
  • 9. © 2015 ADVA Optical Networking. All rights reserved. Confidential.9 • We opened our doors • We engaged and learned a more comprehensive approach • We received clear feedback on strengths and gaps New Way of Thinking – 10-Dimensional Model Baseline
  • 10. © 2015 ADVA Optical Networking. All rights reserved. Confidential.10 Post-Mortem After Baseline • We didn’t have the right team – needed more horsepower and wider reach • We had complete blind-spots • We had to recommit ourselves to learning about blind spots and developing programs around them
  • 11. © 2015 ADVA Optical Networking. All rights reserved. Confidential.11 Circular Economy Example
  • 12. © 2015 ADVA Optical Networking. All rights reserved. Confidential.12 ADVA Optical Networking’s First Full Life-Cycle Assessment – 2012
  • 13. © 2015 ADVA Optical Networking. All rights reserved. Confidential.13 Circular Economy … But How? Key Principle: Longevity / Reduce, Reuse, Recycle – R3 Long Use Reuse of Products Reuse of Parts Closed-Loop Materials Recycling Open-Loop Materials Rec. Crushing of Products Shredder Dust Sorting and Disassembly Generation of raw Materials, Chemicals and Metal Recycling Energy Recovery (CO2!) Landfill User Maintenance Company Product Recovery Center Parts Recovery Center Materials Recovery Company Product Producer Parts Producer Materials Producer User of Recycling Materials Oil Recovery Company, Smelting Company Thermal Energy Collection Company Final Disposal Company Materials Supplier Recycling Center Shredder Company Collection Center Sales Company There are many references. One is (1994): ricoh.com/environment/management/concept.html
  • 14. © 2015 ADVA Optical Networking. All rights reserved. Confidential.14 CPMRs Routers Bringing to Light What We Were Already Doing Refurbishment • We’re taking back the BT routers that have either been cancelled or ceased by BT • We wipe off circuit information, test and check operating status • Approx. 200 units per year from one BT stock location alone Reuse Olympic Refurb Project • Program in place for the kit used in the Olympics. CPMRs and SFPs • CPMR – Test, replace accessories, clean and test, accessories clean and/or replace • We supplied the packaging to BT to return these units to us • To-date we have completed 152 x CPMRs and 201 x SFPs Creative Customer Programs bring value to customer and environment
  • 15. © 2015 ADVA Optical Networking. All rights reserved. Confidential.15 Pitch two radical ideas: 1) Network Design 2) ADVAnced Logistics Saw long-term benefit Oh, let’s go do this NOW! x-Haul X Y BT’s Game Changing Challenge – Pitches
  • 16. © 2015 ADVA Optical Networking. All rights reserved. Confidential.16 Real Customer Benefits • Saves 300,000 miles/year • Saves 13,000 hours/year • Cuts 750 tons CO2 /year • 300% return on investment • New chapter in our relationship 2) ADVAnced Logistics Oh, let’s go do this NOW! BT’s Game Changing Challenge – Real Benefits
  • 17. © 2015 ADVA Optical Networking. All rights reserved. Confidential.17 So Where Did We Take It? • Major improvements in one year • Won BT’s Game Changing Challenge We moved from high Bronze (red line) to high Silver (blue line)
  • 18. © 2015 ADVA Optical Networking. All rights reserved. Confidential.18 Don’t Be Afraid to Jump In – There Can Be a Payoff!
  • 19. © 2015 ADVA Optical Networking. All rights reserved. Confidential.19 EER, TEER, TEEER, etc.
  • 20. © 2015 ADVA Optical Networking. All rights reserved. Confidential.20 The ICT Challenge We All Face [SMART 2020: Enabling the low carbon economy in the information age, The Climate Group on behalf of the Global eSustainability Initiative (GeSI), 2008] 0.0 0.5 1.0 1.5 2002 2007 2020 Global Footprint by Subsector [GtCO2] Telco Infrastructure + Devices Data Centers PCs, Peripherals, Printers Related increase in worldwide ICT electricity consumption 2%  10% • Global ICT carbon footprint will heavily increase to ~1.5 GtCO2 in 2020 • The related cost problems also grow with increasing cost per MWh
  • 21. © 2015 ADVA Optical Networking. All rights reserved. Confidential.21 Circular Economy – Basic Work • Done full ISO 14040 Life-Cycle Assessment (LCA), starting 2012 • Several environmental impact parameters dominated by use phase / energy efficiency • Shown by own LCA • Confirmed by Huawei LCA* • Hence, focus on maintaining best energy efficiency • Traditionally also required due to small product form factor • Now complemented by other CE/DfR3 aspects – primarily recycling (erbium fibers) *) https://www.yumpu.com/en/document/view/8901629/huawei-whitepaper-on-energy-efficiency-and-carbon-reduction
  • 22. © 2015 ADVA Optical Networking. All rights reserved. Confidential.22 0% 20% 40% 60% 80% 100% Ozone depletion Terrestrial ecotoxicity Marine aquatic ecotoxicity Freshwater aquatic ecotoxicity Human toxicity Abiotic resource depletion Eutrophication Acidification Global warming potential R&D Manufacture Distribution Use End of life FSP 3000 LCA LCA done with openLCA (V1.2.6) and ecoinvent (V2.2) Global Warming (GWP) Use phase dominates global warming, acidification, ecotoxicity, ozone depletion Erbium amplifiers have strong GWP – candidates for reuse/recycling
  • 23. © 2015 ADVA Optical Networking. All rights reserved. Confidential.23 Energy Consumption vs. Bit-Rate IncreasePowerConsumption[W] 1 1 10 100 1000 10 100 1000 WDM Channel Bit Rate [Gbit/s] [ADVA Optical Networking data] • We have constantly increased the energy efficiency of our products – and will continue • Energy in use phase still dominates LCA • The latest version of 100G and the new 400G solutions are clearly market-leading – with significant gap against next followers • This is also articulated in the market – “Half a watt per Gbit/s”
  • 24. © 2015 ADVA Optical Networking. All rights reserved. Confidential.24 ECO ICT Guideline Council* (Japan) Update • The ECO ICT Council Guidelines are the most stringent requirements on energy efficiency, compared to the few other relevant, existing TEER guidelines (e.g., ANSI ATIS, ECR) • A new version was issued in early 2015 • Now covering (coherent) 100Gbit/s solutions • With increased normative references for older (e.g., 10Gbit/s) solutions • Proposal to discuss ECO ICT guidelines later in QuEST Forum • The assessment proves (next page) that our transport gear is marked-leading *) http://www.ecoict.jp/eng/mark.html
  • 25. © 2015 ADVA Optical Networking. All rights reserved. Confidential.25 ECO ICT Guideline Council – Results Update Example Older ADVA 100G New ADVA 100G The new WDM gear clearly exceeds latest ★★★★★ ranking (the more stars, the better) N.R. [Gbps/W] PC @ N.R. [W] 0.57 70.17 0.33 2424.24 0.86 9302.32 0.86 9302.32 0.86 9302.32 0.63 63.15 0.37 2181.82 0.96 8372.09 0.96 8372.09 0.96 8372.09 0.71 56.14 0.41 1939.39 1.08 7441.86 1.08 7441.86 1.08 7441.86 0.81 49.12 0.47 1696.97 1.23 6511.62 1.23 6511.62 1.23 6511.62 0.95 42.10 0.55 1454.54 1.43 5581.39 1.43 5581.39 1.43 5581.39 FoM [Gbps/W] Avg. PC [W] 1.09 37 0.70 1138 1.06 7579 1.80 4435 2.19 3658 ★★★ ★★ ★★★★★ ★★★★★ ★★ ★★★★★ ★★★★★Result ★★★★ ★★★★★ 8000 PC @ 1 Wavelength [W] PC @ full Wavelengths [W] Max. Throughput [Gbps] 2004 40 800 8000 8000 Ref.-Config. 2 DWDM w/ Degree-2 ROADMRef.-Config. 7 4 x 10G CWDM PtP 32 41 40 x 10G x 2 (2WCC) 40 x 100G x 2 (PCTN) 1296 13863 40 x 100G x 2 (QF) 597 6719 40 x 100G x 2 (PCN) 752 8118 271
  • 26. © 2015 ADVA Optical Networking. All rights reserved. Confidential.26 Example Improvement: PSU Energy Efficiencies [ADVA Optical Networking data] Efficiency of power-supply units (PSUs) continuously improved over time
  • 27. MHuthart@advaoptical.com Thank you IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited. The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation. Copyright © for the entire content of this presentation: ADVA Optical Networking. KGrobe@ADVAoptical.com