The telecom industry is facing challenges in achieving its sustainability ambitions, according to a recent study conducted by the Boston Consultancy Group (BCG). Despite commitments to greener practices, a sluggish global economy and substantial investments in new technologies have pushed sustainability efforts lower on the priority list. BCG’s latest Telco Sustainability Index highlights a concerning stagnation, with no significant progress or even declines in multiple categories.
Missing focus on the secondary mobile market
However, the study overlooks essential topics, particularly the telecom industry’s position within the secondary mobile market. Words like ‘refurbished,’ ‘trade-in,’ or ‘buy-back’ are conspicuously absent from BCG’s report. This omission is significant, as telecom operators play a critical role in the global market for used devices. They are not only central to trade-in programs but also increasingly offering refurbished devices to customers, driving both economic and sustainability benefits.
Circular economy sees modest improvement
According to BCG the only category showing improvement this year is the circular economy. Telecom companies are increasingly focused on recycling infrastructure materials and equipment, which has provided some positive momentum. However, collection rates for mobile phones remain alarmingly low. This indicates a need for better consumer incentives to encourage the recycling of devices, which could help boost sustainability results. But BCG it is not about recycling mobile devices and network equipment, it is all about increasing lifespan either by repairs or reuse. And this element is missing in the report.
Scope 3 emissions remain a major obstacle
Scope 3 emissions, which account for a staggering 81% of total emissions in the telecom industry, continue to be difficult to manage. The complexity of global supply chains and the lack of consistent reporting from suppliers exacerbate the problem. Without clear transparency and collaboration across the value chain, achieving reductions in these emissions remains a significant challenge.
Missed opportunities to assist customers
The telecom industry has yet to tap into its potential role in helping customers reduce their carbon footprint. While the sector has the ability to offer services and technologies that drive sustainability for end-users, progress in this area remains minimal. Addressing this gap could unlock new opportunities for emission reductions while enhancing customer value.
Biodiversity emerges as a focus area
Biodiversity is becoming an emerging point of attention for the telecom sector. The industry has only recently recognized the impact of infrastructure development on ecosystems, particularly as network expansion accelerates. While steps are being taken to assess and mitigate biodiversity impacts, there is a pressing need for clearer goals and increased investments to address this environmental concern.
Regional progress varies
European telecom companies remain leaders in the sustainability space, consistently outperforming their peers in other regions. In contrast, companies in Asia lag behind, showing limited progress. North American firms, however, are beginning to make strides, indicating that the region could soon close the gap with Europe.
Path forward for a sustainable telecom industry
To overcome current stagnation, telecom companies must prioritize detailed climate transition plans and accelerate the shift to renewable energy sources. Encouraging mobile phone collection, enhancing transparency in sustainability practices, and implementing comprehensive biodiversity strategies are crucial steps.
While progress has slowed, there is still time for the telecom industry to take decisive action toward a greener future. Industry leaders have demonstrated that meaningful contributions to global sustainability are achievable, setting a clear example for others to follow.
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Trade-in
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