More Related Content Similar to BCG Telco Sustainability Index (20) More from Boston Consulting Group (20) BCG Telco Sustainability Index2. 1
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BCG Telco Sustainability Index: Key insights
Overall Observations
• Over the last years the TMT sector in general and the telco and tech industry in particular have increased their sustainability ambitions:
net zero targets have been pulled forward from often 2050 to even 2035
• The motivation for telco operators is clear: their carbon footprint has exceeded the footprint of the airline industry and will continue
to grow with the increased data transportation in fixed and mobile networks if not managed proactively
• The historical focus of telco operators has been on scope 1 and scope 2 emissions - now scope 3 is very often focused (i.e. covering the
entire supply chain) – two third of all emissions of a telco operator are typically scope 3 emissions
• In addition, “scope 4”, i.e. offering digital sustainability services which enable other industry sectors to become more sustainable, are
becoming more important
• Hence, embracing sustainability is much more of an opportunity for telco operators than a burden – the business potential is enormous!
• Even some consumer segments show an increased interest to buy green telco services/products and even paying more for it!
• While the business opportunity is obvious, telco operators also need to watch out for liabilities in their balance sheets, i.e. (old) assets
that consume a lot of energy – cost of capital will increase and share price will suffer if not managed proactively
Findings of this year's telco sustainability index
• In 2020, performance of top scorer improved further, while bottom scorer had no overall improvement
• European telcos maintain sustainability index leadership
• However, significant improvements can be observed in North America as well
• Main driver for 2020 sustainability improvement were the announcement of new targets – execution is still open
• While the best telco operator has reached two thirds of the best possible score, on average the telco industry has not even reached the
50% mark!
• Enabling other industries to become more sustainable is still the most neglected dimension
5. 4
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BCG SiT grades based on comprehensive set of indicators
• Targets
• Culture
• Transparency &
Reporting
• Sustainable sourcing
Commitment to
sustainability
• CO2e intensity –
scope 1 & 2
emissions
• Energy intensity
• Energy sourcing
• CO2e intensity –
scope 3 emissions
CO2e & energy
intensity
• Waste intensity
• Recycling
• Collection of
end-user devices
Circular econo-
my and waste
• Carbon abatement
factor /
Enablement factor
• Green initiatives
• Green R&D
expenditures
Customer
enablement
Dimension
Indicators
6. 5
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0
16
70
0
In 2020,
performance
of top scorer
improved
further, while
bottom scorer
had no overall
improvement
Source: BCG Sustainability in Telco Index 2020, N=21
Overall
score
Commitment
to sustainability
CO2 & energy
intensity
Circular economy
& waste
Customer
enablement
67
17 13
17
62
58
33
53
64
30
10
61
95
25
32
24
45
51
75
0
94
0
49
43 38
100
0
Median Top scorer 2019
Other companies
Top scorer (Overall score) Bottom scorer (Overall score) Bottom scorer 2019
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7. 6
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-
-
- - -
European telcos maintain sustainability index leadership
14
30
24
33
40
34 35 33
55
50
42
62
23
30
32
34
43 44
49
60
21
34
36
41
43
51 51 51
60
63
66
10
20
30
40
50
60
70
36
29
Total score
38
17
67
17
29
18
47
29
36
32
36
26
30
37
34
47
57
53
55
57
47
58 59
58
62
2020
2018 2019
Asia & ME
North America
Europe Europe & other
Source: BCG Sustainability in Telco Index 2020, N=21
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8
On average,
telcos in North
America
improved the
most in 2020
46 44
29 27
50 51
31 28
55 55
37
31
Europe North America
Europe & other Asia
2020
2018
2019
4
7
2
1
5 4
6
4
Asia
Europe Europe & other North America
2020-19
2019-18
Overall score
Overall score Δ
Source: BCG Sustainability in Telco Index 2020, N=21
In 2020, "Commitment to sustainability" dimension was changed to
incorporate more detailed view on culture & governance. For
comparison purposes, 2020 score here using old methodology
10. 9
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4
7
-1
2
4
3 2
8
5
6
8
3
6
1
6
6
9 8
3
-1
4
4
7
-3
4
3
3
6
0
Targets Transparency
& Reporting
Overall score Culture Sustainable
sourcing
CO2 & energy
intensity
Circular economy
& waste
Customer
enablement
22
0 0
North American telcos improved the most on average
Average score Δ 2020-2019
Asian telcos still have improvement opportunities in customer enablement, while North American group could improve focus on
circular economy & waste
Europe Europe & other Asia
North America
Source: BCG Sustainability in Telco Index 2020, N=21
In 2020, "Commitment to sustainability" dimension was changed to
incorporate more detailed view on culture & governance. For
comparison purposes, 2020 score here using old methodology
11. 10
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4
9
3 4 4 2
5
Overall score Targets Culture
1
CO2 & energy
intensity
Sustainable
sourcing
Transparency
& Reporting
Circular economy
& waste
Customer
enablement
2020 score improvement main driver was new targets
Average score Δ 2020-2019
~50% operators
introduced new
targets for
emission reduction
(primarily scope
1&2) or for waste
reduction
CDP rating decreased/
increased for ~25% of
telcos each. Detailing
of env. data and
external assurance
has improved for
some telcos
Integration of
sustainability
in supplier
selection
improved for
~30% of telcos
Energy use / emissions over
IP traffic criteria has
improved for 80% of telcos
due to increasing traffic,
while emissions / energy
over customers only
improved for 30-60%
Waste over IP traffic indicator
increased for 65% of telcos,
while waste over customers
only for 35%. Mobile phone
collection indicator decreased
for 30% of telcos, improved
only for 20%
Green initiatives &
R&D expenditure
improved for ~25%
of telcos, 10% of
telcos improved
cust. enablement
reporting
In 2020, "Commitment to sustainability" dimension was changed to
incorporate more detailed view on culture & governance. For
comparison purposes, 2020 score here using old methodology
Source: BCG Sustainability in Telco Index 2020, N=21
12. 11
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