UK telco BT is the latest tech company to jump on the carbon busting bandwagon, with an extension to its Green Energy contract.

As part of its campaign to reduce carbon emissions, the contract – in place until 2010 – will see BT saving the equivalent amount of carbon as that resulting from over 300,000 households every year.

Under the terms of the contract, npower and British Gas Business will provide BT with 1 terawatt hour (TWh) of renewable energy and 1.2 TWh of accredited combined heat and power per year.

BT also made a series of environmental pledges aimed at reducing carbon emissions. The company’s four-pronged strategy is aimed at carbon cutting by reducing its own emissions including conducting a complete audit of the energy consumption of its data centres; influencing its supply chain to produce lower carbon-emitting products; influencing customers by proposing lower carbon solutions; and engaging with its 104,000 strong workforce to reduce their personal carbon footprints.

BT claims to have already reduced emissions by 60 per cent between 1996 and 2006 and will now aim to extend that reduction to 80 per cent by 2016.

David Miliband, Environment Secretary, said: “This is a welcome announcement from BT. All parts of our society must address the need to reduce carbon emissions, and we need companies like BT to demonstrate commitment and leadership.

“I am particularly pleased that BT is working with both its customers and internal staff to make a difference, which supports the government’s efforts to help people change their behaviour at home and at work to stop climate change.”