Sustainability is no longer optional for the communication, media, and technology (CMT) sector—it's an imperative. In this three-part series, we'll tackle the complex challenges of achieving net-zero.
In this first blog, we dive into the telecom industry's data deficit and its struggle to set science-based targets. In the second, we'll explore how the tech sector can innovate its way to a smaller footprint, and in the third, we'll uncover how the media and publishing industry can green their entire value chain, from content creation to distribution. Read on to find out how data, technology, and strategy can unlock a sustainable future for CMT.
Like all insightful business leaders, telecoms industry executives know that the drive for sustainability is an imperative, not a choice. Investment in cutting-edge solutions is urgently needed to reduce the sector’s carbon footprint, amid escalating global demand for connectivity and data. Telcos also know that sustainability delivers lasting business value and boosts investor and consumer confidence.
However, there is a significant disconnect between net zero ambitions at board level and the institutional capability to deliver them. Like many companies across multiple sectors globally, telcos are struggling to adopt and capitalise on sustainability transformation because they are failing to set the right targets.
Why? Because they lack robust, granular Environmental, Social and Governance (ESG) data – and what they do have is not effectively shared across all parts of the business.
The sector is currently responsible for 1.6% of global CO2 emissions; there is a significant challenge ahead if telcos are to play their part in meeting the Paris Climate Agreement’s target of a 43% reduction in greenhouse gas (GHG) emissions by 2030.
In addition, new regulations like the Corporate Sustainability Reporting Directive (CSRD) demand more transparent and accountable reporting on companies’ environmental and social impact. Telcos cannot report on, or mitigate, what they cannot measure; they must establish the data foundations to set science-based targets, informed by accurate analysis of their carbon footprint and risk exposure.
Telco’s green ambitions
Without doubt, telco leaders are firmly committed to sustainability. According to research by Cognizant for our Deep Green report:
- Nearly 70% of telco leaders rank sustainability as of high/ very high importance to their business strategy
- Approximately 60% believe efforts to improve sustainability will positively/very positively impact financial performance
- About 40% expect their spending on sustainability to grow annually by 10-20% from 2025 to 2030, with a further 23% expecting that to be >20
They also see a closer relationship between data and sustainability than most C-suite executives:
- 63% agree or strongly agree that progress in digital transformation will positively impact sustainability
- 77% agree or strongly agree that next-gen tech will make it easier to achieve their sustainability targets
- And 92% believe technology is the most important factor to get right when implementing sustainability initiatives.
Too little data, too little trust
Unfortunately, telcos’ green aspirations are out of step with the reality. Many companies do not have the tools to measure their carbon footprint precisely and emissions data is often siloed within certain parts of the business. Reporting might be extensive, but businesses often concentrate on past performance and this does not support them to devise a science-based blueprint for future progress.
Telcos cannot make the necessary changes to their sustainability strategies if they cannot measure their environmental impact accurately. Nor can they meet the EU’s CSRD regulations which are now in force, requiring more robust and extensive disclosures of a company’s environmental and social impact.
They need to adopt the semantic model of sustainability, leveraging real-time data to empower them to develop timely, achievable and measurable emissions reduction targets to drive transformation. Data must be forward-looking and proactive, from across the value chain – including partners, suppliers and customers. This is a key driver for identifying and abating Scope 3 emissions and other impacts.
Smart network management
This overarching semantic model of sustainability must be mapped to individual operating models, such as network planning and fleet management, to predict future emissions and enable informed decisions on CapEx and OpEx.
With accurate emissions data, for example, telcos can prioritise AI-driven network optimisation to minimise their environmental impact by rationalising resources to cut waste. A total of 70% of mobile service providers believe the highest potential return from AI investment lies in network planning. Accurate information on emissions, operating mode and locality will help telco leaders to identify areas for change.
Smart energy management, such as adopting low-power hardware and harnessing data to mitigate energy use in real time, is another enabler for transformation. Detailed information on individual data centres’ or mobile towers’ consumption empowers proactive decision-making.
Fleet management is also a substantial weight on the average telco’s bottom line and environmental impact; one provider has 33,000 vehicles on British roads alone. Armed with clear information about their distribution network’s environmental impact, telco executives can adjust the fleet size and transition to electric vehicles as appropriate. Predictive maintenance and remote diagnostics maintenance will reduce technicians’ field trips, boosting efficiency and driving down costs.
Energy efficiency and sustainable IT
Green energy lies at the heart of the drive towards sustainable technology and tech firms are transitioning to renewables. Google became the first major company to match 100% of global electricity consumption with renewable energy in 2017. Again, accurate, granular data on energy consumption and supply across the business is critical; without this, it is impossible to be sure that the right parts of the portfolio are transitioning from fossil fuel to renewable energy, at the right time.
Energy efficiency across the IT landscape also promotes sustainability and reduces costs; migration to the cloud is a principal driver for this. Similarly, the environmental impact of software applications is minimised through optimised configuration, cloud-native, low-code and green software solutions, and by moving workloads to the cloud.
Product stewardship is another critical efficiency driver and again this depends upon authentic data. Successful product lifestyle management, with reduced e-waste, calls for deep knowledge of the cost, quality and reusability of hardware and infrastructure. Telcos are running some excellent individual circular economy initiatives, such as recycling model handsets, but they should be striving to apply this model across all areas of their business. For example, could the manufacture and distribution of hardware be regionalised to reduce shipping miles?
Towards a sustainable future
To ensure authentic sustainability transformation and unlock associated business value, telcos must bring in science-based targets to optimise network and fleet management, implement greener energy and IT practices and improve product lifecycle management. For this, they need a measurement model which yields authenticated, granular, traceable data.
The semantic model of sustainability empowers three levels of transformation within a business, at organisational level, across the value chain and within different operating models (see graphic below).
Cognizant is part of the AT&T Connected Climate Initiative, a collaboration to help reduce one billion tons of GHG emissions by 2035 and our Sustainability Services Practice supports businesses globally to achieve net zero and circularity, and minimise their value chain-wide natural resource impacts.
To find out more about Cognizant’s Sustainability Services, visit https://www.cognizant.com/us/en/services/sustainability-services or contact us.
