Government Affairs
POLICY BRIEFS

Climate Change

Background
Climate change is one of the defining issues of our time. It is inextricably intertwined with issues of how we produce, distribute and ultimately consume virtually everything. The stakes are high as the decisions we take in these areas affect our shared environment around the globe. We are living in a moment of heightened awareness and transition to a more sustainable future. It is a time of shifting from mindless production and consumption, to thoughtful action on conservation, energy use and our interdependence to each other and the environment. Addressing climate change requires both systemic solutions and mindful actions by individuals, corporations and governments.

The impact today
Motorola is fully committed to doing its part to address environmental issues including eliminating substances of concern wherever possible and promoting recycling as good business practice. On climate change, our strategy involves:

• Lowering our overall carbon footprint on an operational basis
• Designing products with lower climate change impact
• Advocating for policies and legislation that prioritizes actions to address climate change around the world

Motorola has taken many steps to reduce negative green house gas impacts on the planet. Motorola was a founding member of the Chicago Climate Exchange (CCX), a voluntary emissions-reduction program. Motorola became the first global member of CCX by including in its commitment all of its worldwide manufacturing sites that currently are not covered under the regulatory emissions reduction requirements of the Kyoto Protocol signatories and the European Union Emissions Trading Scheme (EUETS). Through the CCX, our emissions are reported annually and are audited and verified by the Financial Industry Regulatory Authority (FINRA).

In 2008, our global carbon footprint (scope 1 and 2 emissions from the Greenhouse Gas Protocol) totaled 535,377 tonnes CO2 equivalent. From 2005 to 2008, Motorola reduced its carbon footprint by 20 percent. We accomplished this reduction by implementing energy-saving measures, consolidating facilities and purchasing renewable energy.

Motorola also works to reduce the weight and volume of our product packaging to lower transportation green house gas burdens, while increasing recycled content. We have cut our packaging requirements for many types of products, minimizing cardboard and other shipping material. In our Mobile Devices business we have reduced product packaging by as much as 50 percent since 2003.

Motorola's strategy regarding climate change includes improving energy management at our operations through the actions of a global energy team, and increasing our purchases of renewable energy. As of spring 2009, about 15 percent of the electricity we purchase world-wide comes from renewable sources, up from 8.6 percent in 2008. Our goal is to increase our purchase of electricity from renewable sources to 20 percent by 2010 and 30 percent by 2020. Also, in 2008, Motorola's manufacturing facility at Sriperumbudur near Chennai became the first manufacturing site in India to receive the Leadership in Energy and Environmental Design (LEED) certification by the Indian Green Buildings Council. Under the LEED Green Building Rating System, Motorola's manufacturing facility was evaluated on several parameters including efficiency of water usage, energy, material and resource selection, besides indoor environmental quality.

In 2008, we began to deploy hydrogen fuel cell backup-powered base stations in Denmark. The new base stations are environmentally cleaner, quieter and more efficient than the diesel-powered generators they replaced.

As an information communications technology (ICT) company, Motorola believes the ICT industry is uniquely positioned to lead a transition to a more energy-efficient and low-carbon economy. Logistics technologies reduce vehicle miles; remote monitoring reduces travel; and advances like technological convergence and broadband change the way we do things. As indicated in a recent study, "SMART 2020: Enabling the low carbon economy in the information age",¹ ICT is a key sector in the fight against climate change and could enable emissions reductions by 15 percent by 2020 and deliver energy efficiency savings to global businesses of over EUR 500 billion.

A study conducted by the Fibre to the Home Council Europe² provides a powerful message of the importance of broadband to reducing contributions to climate change, as it states that the environmental returns on the deployment of a typical Fiber to the Home (FTTH) network will be positive in less than 15 years considering benefits from only three selected services: tele-working, telemedicine and teleassistance.

Motorola is working with other industry peers, regulatory personnel, non-governmental organizations and carriers to reduce energy and substances of concern, inform consumers and improve environmental designs. Motorola is an active participant in the European Integrated Product Policy to enhance the environmental design and reduce environmental impacts of mobile phones. Drawing on our innovative spirit, Motorola engineers have designed the world's first carbon-neutral mobile phone, the MOTO™ W233 Renew. The housing of the phone is made with plastics comprised of post-consumer recycled water bottles and the phone itself is made to be recycled.

Climate change is one of the many areas of social responsibility that Motorola has developed policies and procedures around. We publish an annual report detailing our efforts to make the world a better, more sustainable place with opportunities for all. We also aim to assess our supply chain climate impacts and work with our suppliers to reduce their environmental impact. In 2008 we began calculating emissions from employee business travel and measuring the impact of business travel to improve its efficiency and reduce its impact. In our first year of tracking we measured 136,866 tonnes CO₂ equivalent emitted from our employee business travel (scope 1 emissions).

This includes emissions from air travel, rail travel, car rentals, leased cars and from business travel in employee-owned cars. We hope to achieve reductions against this baseline in the future. Our travel policy requires that employees minimize travel by utilizing audio-conferencing, web meetings, and video-conferencing, where available.

Motorola position
Motorola advocates that all responsible parties — individuals, corporations and governments — take mindful action to protect against the effects of climate change. Those actions include reducing carbon footprints, promoting renewable energy and recycling as a matter of practice.

We encourage legislation that promotes responsible behavior as an economic opportunity through flexible emissions reduction programs, federal funding and tax credits for new innovative "green technologies," as well as other policy incentives to encourage a reduction in overall greenhouse gas emissions.

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¹ A report by The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), with independent analysis by McKinsey & Company.
² FTTH Solutions are Sustainable and Contribute to a Greener Europe