[Updated] How to level up telecom sustainability

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With the backdrop of November 2024’s COP29 meeting in Baku, Azerbaijan, sustainability is a hot topic. In every sector, companies are scrambling to find solutions to new regulations, guidelines and limits that will soon be placed on businesses around the world. Moreover, as alarming news emerges from the United States about its withdrawal from the Paris Agreement for a second time, environmentally conscious companies are looking to step up their game. Telecom is now different, and telecom sustainability will remain firmly at the top of the agenda.

With these new pressures but also opportunities in mind, telco companies everywhere are looking for ways to comply with specific regulations in the countries in which they operate, as well as improving their public image as data usage and bandwidth increases. Whether they affect a telecoms business today or well into the future, there is a vast wealth of expertise available to help with sustainability challenges.

How does telecom affect the environment?

The success of telecom implies the increase of consumer goods and physical infrastructure, which affects the environment. Networks, even if cloud-based, require structural developments, which means the manufacturing of routers, cables, smartphones, etc., which requires the production of raw materials and their transportation, all of which contribute to a negative environmental effect.

For instance, a study conducted by the French newspaper Le Monde suggested that smartphone carbon footprints are radically underestimated by both companies and state agencies. Based on the analysis, the true carbon footprint of a smartphone is likely above 100 kg CO2e and potentially even higher depending on usage patterns (heavy video streaming, etc.). 

Furthermore, telco sustainability is affected by what is called scope 2 and 3 emissions: emissions that result from a company’s actions but emanate from sources it neither owns nor has control over. Two-thirds of companies’ emissions correspond to their partner’s emissions, which a company can only control by selecting the right partner. 

What is the carbon footprint of telecoms?

The telecommunications industry contributed 1.6% of the world’s total carbon emissions in 2022, roughly 600 million tons of CO2e. However, there are opportunities to reduce emissions on the horizon: Deloitte anticipated that global telecom companies would achieve a 2% reduction in their carbon footprint by 2024, resulting in a decrease of 12 million tons of CO2e. This reduction is expected to continue into 2025.

Nonetheless, this reduction doesn’t come without its obstacles. The surge in the data needs of the domestic and business environment has driven an enormous growth in bandwidth requirements over recent years. In 2024, the world’s Internet bandwidth expanded by 22%, reaching a total capacity of 1,479 Tbps. This represents a considerable increase, with a compound annual growth rate of 25% over the past four years. While the growth rate has moderated compared to previous years, overall internet bandwidth has still more than doubled since 2020.

With growing bandwidth comes a growing need for the physical technology required to maintain it. Servers occupy large amounts of data centre floor space, are very energy intensive to power, and on top of that, need to be regulated by industrially sized coolers, 24 hours a day, seven days a week. As more people worldwide become connected to the Internet year on year, this intense growth in usage shows no sign of slowing. By 2040, data usage could represent 14% of total global emissions. This means that those focused on telecom sustainability need to start thinking about how to transport, process and store data in sustainable ways. 

The increasing use of AI also raises significant environmental concerns. Training large language models requires substantial computational power, leading to high energy consumption and carbon emissions. One study found that training a single large AI model can emit as much carbon dioxide as five cars throughout their entire lifespan. Moreover, the energy-intensive nature of AI infrastructure, including data centres and network operations, contributes to the growing carbon footprint of the technology sector.

ICT and telecoms have a large role in making our economies, cities and lives more sustainable. Companies in the industry should start recognising their responsibility to reduce their carbon footprint, both directly and, by extension, to those areas that benefit from the success of telecoms. By that, we mean the way telecom companies enable new business models, ecosystems and lifestyles by increasing the potential of connectivity. 

How can telecom sustainability be achieved?

To improve telecom sustainability, companies should embrace a holistic approach that involves green measures throughout the organisation. This means finding ways to improve every process and viewing them through a sustainability lens, reducing emissions from top to bottom. However, this approach can be expensive, as it entails replacing a lot of outdated data centre equipment and changing physical layouts to achieve the most efficient results. 
The changes made from the ground up should help organisations encourage sustainable ecosystems and communities. Consumer choice is important: according to data collected by the European Commission, 83% of consumers said the impact of aproduct on the environment plays an important role in their purchasingdecisions. Breeding a culture of sustainability in telecoms will also have a knock-on positive effect, inspiring other companies to follow suit.

The first step should be understanding and creating a roadmap toward sustainability. Many telecom companies are sourcing freelance experts to be project leads in their journey towards more sustainable practices. Hiring outside the organisation benefits the organisation by taking advantage of the expertise pooled from many areas. An expert brought in especially to work on a particular project will have worked with various organisations and faced diverse challenges. This makes them uniquely placed to offer informed, practical, and up-to-date solutions.

The first step should be understanding and creating a roadmap towards sustainability. Many telecom companies are sourcing freelance experts to be project leads in their journey towards more sustainable practices. The benefit of hiring outside of the organisation is in taking advantage of the expertise pooled from many areas. An expert brought in especially to work on a particular project will have worked with various organisations and faced diverse challenges. This makes them uniquely placed to offer informed, practical and up-to-date solutions.

We have identified five key areas that an expert in sustainability measures will look into to prepare a telecom organisation for a more eco-friendly future. As well as the usual measures to reduce a carbon footprint, such as opting for greener energy and introducing energy reduction policies, these five points are a step towards instilling a culture of sustainability from the ground up. 

1. Invest in items with greater longevity. The longer a single item can be used, the less often it needs to be replaced or recycled. This often represents higher initial costs but means long-term savings and more sustainability. It can mean consulting with suppliers about the life cycle of their products or the availability and exchangeability of spare parts. These measures can be introduced across the board, from using fresh, loose and organic coffee instead of pods in the break room to purchasing server equipment that’s built to last for several years.

2. Embrace modular design. Choose devices that have individual parts that can be replaced cheaply and easily. For example, batteries, displays, memory etc. can be easily bought OEM individually and replaced when needed, rather than needing to replace the entire piece of equipment. 

3. Address scope 3 emissions. Product design and supply chain management are crucial to telecom sustainability. Choose suppliers that work sustainably, reducing your knock-on impact and gaining mid- to long-term cost-saving benefits. Working closely with suppliers and startups that consider sustainability can be an opportunity to collaborate with experts and gain a competitive edge other than pricing.

4. Incorporate the “3R” principles—reduce, reuse, and recycle. The first step should be to avoid using the thing in the first place. Ask yourself, “Is it necessary?” Consider the necessity of the object, reducing procurement and production. Third, recycle items where possible. These principles can be applied across the organisation, from packaging to transport and waste management, and they have the added benefit of helping to cut costs.

5. Strive for circular economy principles. Go beyond just recycling. Discuss how the organisation can design products for disassembly, reuse components, and create closed-loop systems where waste is minimised, and materials are kept in use for longer.

Of course, it will take a while for these policies to have an effect, and to enact meaningful change, they need to be made across industries. This is why lobbying governments to introduce green regulations and measures across industries is vital if we want to see some real change. However, telecom sustainability can be achieved by one company successfully implementing changes and proudly showing the benefits while improving its long-term cost strategy.

Establishing a company as a sustainable brand leader takes time and organisation. Ensuring it is carried out in a way that provides value for customers and inspires loyalty involves careful planning that incorporates elements such as UX, marketing and social media strategies as well as managing how data is used, infrastructure is constructed and how products are packaged, sold and delivered. 

A lean way to communicate green ideals and to bring customers on board is by making customers a part of the experience. For example, a telecom sustainability measure could be offering a greener tariff to customers that shows proof of how that particular network is powered by green energy. Another option could be providing mobile alternatives that offer recycled materials and modular design, such as the Fairphone or the Teracube. It could also involve making recycling of old equipment easier. If finding a path to achieving this seems difficult, a telecommunications consultant is a useful step towards more telecom sustainability. 

Business benefits to providing greener options are manifold. Consumer intention to invest in sustainable goods is high, with an 8% yearly growth. With 20% of consumers checking a company’s green credentials before purchasing, finding the right strategy for making a business more sustainable will become essential and benefit companies in the long run in this competitive market space. 

The future of sustainability in telecoms 

One of the smartest ways for a telecoms company, no matter its size or location, to get on board with sustainability initiatives is to hire a freelance expert. Hiring an expert to lead cultural changes within an organisation is smart because of the power of objectivity they have over a project. Furthermore, they mean vital cost savings and can be found in a worldwide pool of talent we have available here at Outvise.

Consumers are responding to those changes in the choices they make. Many industries have been forced to embrace sustainable practices, and long-lasting change has been needed in those areas. The telecom industry is one area that, up until recently, has been lacking, with consumers tending to make choices based on other factors such as price, data allowance, and coverage being more important. However, as the EC data suggests, the winds of change are rolling in fast.

Post-COP29, sustainability and the initiatives produced in its name are on the lips of increasing numbers of CEOs. While we all share the responsibility of facing the world’s greatest challenges, industrial leaders can make the greatest impact.