Recent headlines have drawn increased attention to the risks that extreme conditions fueled by climate change – from heat to wildfires to flooding – pose to critical infrastructure, including telecom networks. At the same time, telcos are facing concerns about the damage their networks can cause to the environment in the wake of reports that lead-clad cables leach toxins into the environment. The impetus for telcos to work toward making sustainability a more essential part of their business model could hardly be clearer, the question is how to go about it.
The SEC’s proposed rules for climate change disclosures (which could be enacted as early as next year) offer some specifics on where to start. But they are just one reason telcos may want to revisit their roadmap for lowering carbon emissions, reducing waste, expanding access for underserved communities and providing advancement opportunities to all employees.
Done well, sustainability can be synonymous with cost savings and competitive advantage. Reading through annual financial and sustainability reports for many of the largest U.S. telecommunication service providers shows that the major players all share details on the climate, recycling and social justice strategies they have in place. But there are interesting differences to note within the particulars of those initiatives’ focus, with different companies leading the pack depending on the issue.
Curbing carbon, network resilience
This category is where most companies have focused their efforts. Nearly all reported they are on track to realize significant reductions in carbon emissions within the next decade, and some have already pledged carbon neutrality for scope 1 and 2 emissions categories. Less clear is how these figures are being calculated. Collecting, analyzing and reporting scope 3 emissions has stymied many operators. Rural providers are at a particular disadvantage, because their infrastructure reaches farther to fewer households, making it less efficient.
Embracing solar energy, along with investments in other forms of renewable energy, has helped leaders in this area make their network infrastructure entirely carbon neutral. And some telcos have also taken additional actions, such as providing EV charging stations at their offices. But no company has yet taken the lead when it comes to transitioning their vehicle fleet from gas power to electric. While some use electric vehicles and some don’t, this is one area telcos may consider prioritizing, especially considering the growing options for (and falling prices of) EVs.
Surprisingly, even before the issue of lead cables made headline news, no company was commenting on the environmental impacts of its existing infrastructure. The revelation that old telephone networks are sources of lead pollution, and the steep predicted costs of cleaning up that contamination, caused stocks to fall.
Modern telecom networks aren’t immune to damage from climate-change related events, such as extreme heat or saltwater intrusion caused by rising sea levels and more powerful storms. In many of those cases, it’s not simply the operator at fault for failing to update its network infrastructure to withstand environmental shocks.
At times, governments have also impeded transitions from copper networks to fiber optics based on concerns over perceived affordability. Despite these hurdles, fiber is often more resilient and better able to function in extreme conditions.
Waste management and social responsibility
While most companies have a recycling program of some kind, none are comprehensive. One place to look for inspiration is the European Union, which has strict rules governing the disposal of used and waste electrical and electronic equipment. Reusing and refurbishing old devices like phones, routers and modems is one popular strategy for reducing waste: some leaders in this area can boast that less than 2% of equipment from its take-back programs and or total waste ended up in landfills.
Notably, one telco has begun recycling fiber optic cables, a complex and novel achievement. And while a few companies describe measures to reduce the single-use plastics they use to wrap products and to recycle office paper, those are outliers. There remains opportunity for telcos to expand their reuse and recycling efforts beyond electronics: water and paper are resources that may deserve more consideration and single-use plastics are another potentially overlooked source of waste.
Companies are united in their ambition to bridge the so-called “digital divide”— the disparity between those who have consistent access to high-speed wireless and those who don’t. This is also the aim of several federal programs, including the National Telecommunications and Information Administration’s Broadband Equity, Access and Deployment (BEAD) program, which is offering more than $42 billion in grants to help companies build out their infrastructure to underserved areas.
The range of initiatives these large companies detail is admirable. Hosting centers where access is free, offering subsidized plans to low-income students and access points through schools and affordable connectivity programs are great starts. But more can be done. There’s an opportunity here for telco leadership to make a stronger impact.
Operators are dedicating more focus to diversity, equity and inclusion within their workforce: all have instituted councils and/or vice president-level positions dedicated to improving in these areas. But notably, most companies are continuing to work toward more diversity in the executive suite.
As some of the largest and most public-facing companies in the country, telcos have a responsibility to lead the way when it comes to implementing sustainability initiatives. But that obligation is also an opportunity for them to get ahead of climate-related risks while carving out a socially conscious niche for their brand. Operators would be wise to implement a regular audit of climate risks and develop a plan for how to mitigate them. Doing so effectively can also mean putting strategies in place to work with stakeholders — be they regulators or others — to help find solutions and innovate to advance their sustainability agendas, identify advantages in the market they serve and improve the communities where they live.
Dan Hays is a principal with PwC and leads the firm’s enterprise strategy consulting practice for the technology, media, and telecommunications sector. As a senior member of PwC’s Strategy& consulting practice, Dan works with terrestrial and satellite communications and information service providers, network equipment and device manufacturers, distributors, software and internet platform companies, and their investors worldwide. Based in Washington, D.C., Dan has worked with clients across the Americas, Europe, Asia, the Middle East, and Oceania, and focuses in the areas of growth strategy, regulatory and policy strategy, deals, innovation, product development, and operational strategy.
Industry Voices are opinion columns written by outside contributors—often industry experts or analysts—who are invited to the conversation by Fierce Telecom staff. They do not necessarily represent the opinions of Fierce Telecom.