Telecoms operators have meaningfully embraced sustainability and are building it into their business models. Following world leaders defining environmental targets for 2050 in the Paris accord, industry bodies quickly developed action roadmaps. However, several telecoms groups (Orange, Telefonica, Vodafone) have gone further and are bringing these targets forward to 2040.
Alongside the long-term objectives, operators have set specific targets for the coming years (particularly 2025 to 2030), a sign of how serious they are. Most objectives relate to reducing emissions and switching to renewable energy, but we are also seeing a rise in reuse and recycle of devices as operators place increasing importance on the circular economy.
Regulators are also starting to pay attention. In France, ARCEP is the most ahead and is making environmental issues ‘the next chapter in regulation’. A new law also looks to facilitate the repairing of devices. In Ireland, Comreg has consulted on how regulation can help meet the Government’s Climate Action Plan. At the EU level, BEREC is facilitating the exchange of information and best practices between national regulators.
Operators are committing to reach net-zero emissions ahead of the 2050 target
Telecoms operators have meaningfully embraced sustainability as a key pillar of their business model for the coming years. This comes not only from the broader targets set by world leaders for the next decades, but also from the attention increasingly placed by citizens to the issue of climate change, which is reflected in their habits and preferences as consumers. A significant number of operators have announced ambitious plans to achieve net-zero emissions, in what appears to be a race to the top.
Industry bodies, such as the GSMA, have developed climate action roadmaps in line with the 2050 target in the Paris Agreement. However, many operators are bringing their own targets forward by several years – sometimes even a decade earlier. Vodafone, Orange, and Telefonica all recently set a 2040 deadline for their net-zero emissions target, and look to achieve steep reductions in Scope 1 and 2 emissions over the next five years.
European groups are not alone in this. MTN in South Africa recently joined the group of companies committing to net-zero emissions by 2040, and promised to reduce its Scope 1, 2, and 3 emissions by an average of 47% by 2030. In the US, AT&T set a target for 2025 to enable carbon savings 10 times as much as its operations, and accompanied with specific objectives – some of which were set for 2020 and achieved ahead of schedule.
Renewable energy adoption and circular economy targets are operators’ main commitments for this decade
One of the signs that operators are serious about their green targets is the multitude of specific objectives they have set – particularly for 2025 or 2030, which should help operators in achieving the longer-term targets. The most popular objectives relate to reducing emissions or energy waste across operators’ networks (we counted 27 such initiatives across 14 operators – see our Sustainability Tracker).
Seven operators made commitments related to renewable energy. Of these, four pledged to use 100% renewable energy in their networks as early as 2021 (Vodafone, DT), or have already achieved this between 2019 and 2020 (BT, Virgin Media). Orange will achieve a 50% share of renewable energy in 2025, having committed to this date in 2019.
Some operators are committed to adopting a circular economy approach, centered around reuse and recycle of resources and devices. We counted eight such initiatives across four operators – all to be met by 2025. In particular, Orange committed to offer a repair service for its devices in all European markets where it operates (almost three-quarters of countries by 2019) as well as reconditioned phones (currently available in a quarter of its European markets). In the Netherlands, KPN is looking to use almost entirely reusable materials by 2025.
Regulators are putting a stake in the ground, but only France has taken significant steps so far
As governments lead the effort towards a net-zero world, national regulatory authorities are figuring out how to monitor and assist the steps the industry is making. Until now, the French regulator ARCEP has been the most proactive in seeking dialogue with industry on the topic of sustainability. This is perhaps unsurprising, given ARCEP’s explicit intention to make the environmental issues ‘a new chapter in regulation’. The regulator published a paper on ‘the carbon footprint of digital’ in October 2019, in which it assessed the effect of network developments and of changes in how they are used, noting that fibre is by far the least energy-consuming technology in fixed networks, and highlighting that energy consumption in mobile networks is more linked to the levels of usage. Following that paper, during 2020 ARCEP established a working platform ‘for a sustainable digital sector’. In December 2020, the platform published a report with 11 recommendations to reduce networks’ carbon footprint, along three strands of activity: enabling policymakers to steer industry initiatives, incorporating environmental issues into ARCEP’s regulatory actions, and increasing incentives for stakeholders.
France has also made progress with regulation to facilitate the circular economy. Recent legislation introduced a ‘repairability index’ for devices, requiring manufacturers to show consumers how easy it is to repair a device based on criteria such as ease of disassembly and price or availability of spare parts. The law also prohibits software updates that slow down performance of a device, and introduces transparency measures for operators. From 2022, they will have to inform consumers of the carbon cost of their digital consumption (e.g. the equivalent in greenhouse emissions of 20GB of data per month). This is something on which the EU is also taking action, with the European Commission pledging to introduce a new ‘right to repair’ as part of its Circular Economy Action Plan of 2020. As part of the plan, the EC committed to launch a ‘Circular Electronics Initiative’, including the right to update obsolete software.
Ireland is asking operators what they can contribute to the country’s action plan
In Ireland, ComReg is also exploring ways in which it can help the sector contribute to the Government’s Climate Action Plan, including ways to reduce the sector’s own carbon footprint. ComReg carried out a consultation between December 2019 and May 2020, which received submissions from some operators (Eircom, SIRO, Vodafone). ComReg sought input on how regulation might evolve in response to the challenges of climate change, although it has not yet put forward specific proposals. Some respondents noted that facilitating fibre deployment at the expense of copper, and encouraging infrastructure sharing, could help the sector reduce its energy consumption and carbon footprint.
At a broader European level, BEREC is also focusing on sustainability, which is a key part of its 2021–2025 strategy and of its 2021 work plan. BEREC will take on the task to promote sustainability under the European Electronic Communications Code, facilitating the exchange of information and best practices between stakeholders. At the time of writing, BEREC is about to hold a Stakeholder Forum focused on sustainability, which will take place on 1 April 2021.
