Nortel Confidential Information

BUSINESS MADE SIMPLE

Sustainability at Nortel

Rick DipperCorporate Responsibility

September 9, 2008

Nortel’s Environmental History2007•Dow Jones Sustainability Index (3rd year in a row)•Top 10 Socially Responsible Companies (Maclean’s)

2006•Clean Air Day Award (2006 Smog Summit)•RoHS compliance

2005•Environmental Innovation Award (Environment@RTP)•WEEE compliance

2004•GreenCommute meets “Best Workplaces for Commuters” requirements

2002•Most Environmentally Responsible Technology Company in Canada (Corporate Knights)

1987•Environmental audit completed and environmental policy established

1989•USEPA Ozone Protection Award

1992•First company to eliminate CFC’s from manufacturing•Environmental Leadership Award

1997•Ozone Protection Award

Nortel’s EARTH Principles

Educate our EmployeesWe encourage and stimulate employee participation in reducing Nortel’s environmental impact. We provide insight, data, and techniques on how employees and their families can reduce their own environmental footprint.

Active Engagement and DialogueWe initiate and maintain conversations with relevant organizations, both internally and externally. We actively engage in standards development so our customers can assess our products and solutions using an unbiased and independent methodology.

Reuse, Reduce, RecycleWe make these three intertwined behaviors a priority, by reusing when possible, reducing consumption when appropriate, and recycling at every opportunity.

Tangible and Continuous ImprovementWe set concrete goals and objectives that are crucial to measure progress. As we dialogue with our various stakeholders, including our Customers and Suppliers, it will be critical to show our ability to react to ideas and opportunities to improve our processes. We must listen with the intent to apply concepts and ideas which will move the yardsticks.

Harmonious product design which contributes to a sustainable planetWe have an engineering legacy; it is in our DNA. The design of our products and solutions does not come by accident or happenstance – it is accomplished with a clear understanding of our Customers needs and a belief in the value of our Design for Environment attributes. We strive to design solutions which reduce the environmental footprints of all who use them.

Lessons Learned with WEEE/RoHS

• Intelligence and Analysis• Trade associations• Provide input through external stakeholder consultations

• Planning and Preparation• Leading indicators• Impact assessments

• Organizational Awareness• Supply Chain –both directions• Internal information flow

• Due Diligence/Follow Up• Records Management• “Rinse and Repeat”

EuP, REACH, etc. require similar discipline and rigor

Extending our Green Reach

•Principal member of the Ethernet Alliance•Driving Energy Efficient Ethernet standard

•Global e-Sustainability Initiative •Promotes technologies for sustainability

•American Electronics Association in Europe

•Carbon Disclosure Project•Disclose greenhouse gas emissions

•The Climate Group

•United States Environmental Protection Agency•Climate Leaders Group

Associations and Standards

Executing Green at Nortel

Regional Green Councils

Global Green Council

Design for Environment

Investment Recovery Centers

Standards Council

Government Relations

R&D Energy Champion

Many moving parts to a successful implementation

Tactical Requirements

• Organizational Discipline• Overarching Global Green Council• Functional players• Strategic Partnerships• Customer Engagement

• Cradle to Grave mindset• Design for Environment• Product evolution• End of Life – Takeback

• Support across entire enterprise• Executives on down

Looking Ahead

• Focus on Energy Efficiency• Reducing Costs/Carbon Footprint• Active participation in industry standards• Ahead of EuP curve

• Continued Regulatory Vigilance• European Union• United States• Global

• Flawless execution on Current Strategies

Anticipation and early reaction are key

Success requires ICT Collaboration

• “We’re all in this together”• Traveling the same road…although at different rates• Sharing best paths/bumpy paths

• Leverage Trade Associations to be the industry voice• Share information as necessary and appropriate• Learn from each other• Partner on common causes