Sustainability Focus Increasing Across Telecoms Industry

At a time where individuals, companies, industries, governments and even countries are wising up when it comes to sustainability, the telecoms sector is stepping up its efforts to put its best — and greenest — foot forward.

One way this is being explored is through the shift towards renewable energy sources. This is somewhat central to the telecom industry's sustainability efforts as energy consumption accounts for a significant portion of operational costs and carbon footprint. McKinsey research supports this, finding that together, mobile- and fixed-network consumption already account for more than three quarters of telcos' total energy consumption.

The need for a more sustainable approach to telco development has been exacerbated with the spread of 5G networks and AI advancements to name a few. These energy-hungry services work hard to deliver seamless connections and services — driving calls to ensure technological innovation propelling telecoms to dizzying new heights isn’t at the expense of the planet.

How are telcos advancing their path to sustainability?

Bright minds at Kyndryl have thrust this conversation to the forefront of their domain, weighing up the balance between consumer demand and trends with delivering this more sustainably.

Faith Taylor is Kyndryl’s Global Sustainability, ESG and Social Impact Officer. Joined with Gretchen Tinnerman, Vice President and Leader of the Kyndryl US Market, the two share how telcos are advancing their path towards a more sustainability-led future. 

The main concerns for the industry right now, they agree, is its continued evolution.

“Connected devices are becoming ubiquitous and the rapid digitisation that many industries experienced during the pandemic has led to an abundance of data,” Gretchen begins. 

Supporting this is consultancy Deloitte, which highlights how telcos have taken a step in reducing their carbon footprint by sunsetting the likes of 3G and other increasingly redundant technologies and switching to 5G radio gear, which is advancing to become smart enough to ‘snooze’ when not in high demand, reducing consumption of this thirsty technology. 

Telefónica earlier this year launched its €1.75bn (US$1.87bn) green bond — the first European telco to do so — as part of its approach to responsible network deployment and climate change mitigation. The industry giant, which celebrates its 100th anniversary in 2024, has been vocal about its sustainability strides for more than a decade, working to balance growing demand for its services in light of the vast increase in energy consumption of 30% and carbon emissions of 17% industry-wide between 2010 and 2015.

“Although we are facing complex and uncertain times, tremendous opportunities related to connectivity and digitalisation await,” its Chairman José María Álvarez-Pallete said.

Circling back to technology, Faith says that data, security and AI all play into this sharpened focus on sustainability.

“Businesses have a responsibility to help address the impacts of climate change by reducing emissions,” she said. “In the last two years, the number of public companies with net zero targets has more than doubled.”

And although data is putting a strain on telcos’ sustainability metrics, it is also part of the answer.

She continued: “Data collection, validation and reporting is essential to helping businesses understand their carbon footprints and make the most impactful decisions. Our experts can help companies gather their environmental data and develop strategic sustainability roadmaps.

“We’re combining strengths with partners to provide end-to-end sustainability solutions that enable them to achieve their net zero goals.”

Collaboration is highlighted as a magic ingredient in making sustainability goals a reality. From ideas and knowledge-sharing to supporting others with expertise, teamwork is needed among experts across the industry's vast segments and niches to bring about significant reductions in energy usage and carbon emissions.

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