Policy Commitment:
Avoiding the purchase and use of environmentally damaging materials, including ozone depleting substances, and preventing the release of pollutants

Environmental Management Programme Objective:
To Continually Aim To Reduce The Life-Cycle Environmental Impacts Of Our Consumer Products

5.1 Introduction to the Issue
Our products include analogue and digital set-top boxes, satellite dishes and other TV accessories (remote controls, ‘remote eyes’, smart cards), and the accompanying TV Guide that goes to all customers.  There are environmental considerations associated with the manufacture and use of these products, as well as their eventual disposal.

We recognise that there are opportunities for us to specify less environmentally damaging boxes through the instructions and specifications we provide to the box manufacturers.  For example, energy consumption of set-top boxes is an issue being discussed between product providers and Government.

In addition to the packaging waste generated in supplying our products to our customers, we recognise that we may have obligations with regards to waste other than those stated in the Environmental Protection (Duty of Care) Regulations 1991.  For example the Waste Electrical and Electronic Equipment Directive requires end-of life equipment to be collected for recovery, recycling and re-use.  The proposal was adopted by the commission on 13 June 2000 under Article 135 of the Treaty and will start the parliamentary process in autumn this year.  It is expected to become law in 2002.  Electronic equipment will have to contain recycled, or recyclable, components and be labelled so that they are disposed of correctly by the consumer.  An estimate over the next 10 years of remote control, keyboard or games controller batteries that may need disposing of based on 5 million subscribers could total upwards of 60 million batteries.

5.2 Current BSkyB Status
Our set top boxes (STB) have been highlighted by Government as a concern because currently they operate 24 hours and do not have a stand-by function.  In consequence, we have led the debate with the Government and the manufacturers of the digital set top boxes to ensure that energy consumption during use and end-of-life disposal impacts are minimised.  Following these discussion, we have now signed up to the Code of Conduct for standby power consumption (i.e. for reducing the wasted energy when the product is not being viewed) and have set up monthly review meetings to discuss implementation in time for the January 2003 date.  Michael Meacher has written to Tony Ball, our Chief Executive, to offer him congratulations on our signing of the Code of Practice.

Waste electrical/electronic equipment such as the set top boxes, remote controls, and batteries is often collected and returned by installers or by our distributor, Hays Parts Speed.  We have evaluated the impacts of the WEEE Directive on our business, and, based on the fact that we are not the manufacturer/producer of the boxes and all boxes have the primary badge of the manufacturer (Grundig, Philips, Sony, Amstrad, Pace), we consider that the WEEE Directive will have limited direct impact on us.  However, as part of the strategic sourcing and future of STB’s we are investigating the possible impact and responsibilities for the WEEE directive in the supplier discussions.

5.3 Performance Data
We estimate that approximately six million set top boxes and dishes have been manufactured and distributed to our customers.  It is estimated that the average power consumption of the STB is 19 watts (however, this varies dependent on the nature of the product).

5.4 Planned Actions to Improve

Action	Target Date
Establish relationships with manufacturers/suppliers of electronic goods (and accessories), and discuss the main product lifecycle environmental impacts that need to be addressed through the design/specification process (including recyclability, packaging, batteries etc).	Ongoing
Request statements of current product performance so that future improvements can be demonstrated.  Discuss performance at least annually.	Ongoing
Continue to stay abreast of (and involved with) known pending and future anticipated legislation on waste electrical and electronic equipment and product energy consumption, by attending relevant meetings with Government and other organisations.  Brief the Environmental Committee as relevant.	Ongoing
Draft a programme of actions needed to meet the requirements of the Waste Electrical and Electronic Equipment (WEEE) Directive so that the 2003 deadline can be met.	Ongoing
Based on the information gained from the above actions, produce environmental guidance for the product design/specification and processes.	Ongoing

5.5 Case Studies/Interesting Facts
We are now a signatory of the Code of Conduct for reducing wasted energy from set top boxes (STBs).  The code requires digital STB’s to have a standby condition that has a power consumption of less than 9 watts when in standby on all products made available for sale from the 1st of January 2003. This figure will be reviewed on a regular basis to see how it can be reduced over time.

Currently, the lowest box power consumption is just over 13 watts with Sky+ highest at 30 watts.  The average for the STBs is about 19 watts.

Meetings have begun with the manufacturers and suppliers in order to achieve this reduction. The silicon vendors are being asked to provide suitable power management functionality that can be accessed on their products in a way that still leaves the business functionality that the service provider needs whilst running the product as low as possible when in standby.

Promotion will then begin to teach the consumer the benefits of putting the STB on standby or adding programming functionality to automatically provide this.