5G services have brought the world to the cusp of a revolution as companies continue to integrate environmental, social and governance (ESG) strategies into operational decision-making. 2023 was a transformation year with innovations in fiber infrastructure and spectrum breadth—2024 promises to be much more than that; industry innovators are including net zero emissions in their operations and building a low-carbon and more sustainable next-gen ecosystem.
Unsurprisingly, stakeholders are pitching for companies to address ESG impacts and issues and establish a foundation to manage the issues. The need to build a strong culture to provide a core business strategy focuses on 5G as a key enabler to minimize global warming. While the technology also underpins sustainable urbanization, challenges around cybersecurity and privacy protection emerge as a roadblock.
Is it high time stakeholders emphasize ESG reporting and empower the sustainable development society?
Deutsche Telekom Plans, Acts and Delivers Environmental Goals
In the pursuit of a circular economy, incumbent players are spearheading the integration of bespoke information technologies into the economy and people’s livelihoods. Climate-neutral business practices have grabbed headlines globally, with stakeholders deciphering ways their products, services and activities impact the environment. Deutsche Telekom, for instance, is bullish on being climate neutral in Scope 1 and 2 emissions by 2025.
The German telecommunication giant expects climate neutrality to be extended to the entire value chain (Scope 3) by 2040. It has also minimized waste volume and fostered a circular economy with sustainable packaging. In 2022, Deutsche Telekom minimized energy consumption by 278 gigawatt hours (approximately 11%) in Germany.
The need for fast and decisive action to keep global warming below the 1.5-degree danger line will compel 5G services companies to fulfill the responsibility for a climate-friendly society.
Is your business one of participants to the 5G Services Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices
Empowering a Future of Inclusion of All at China Mobile
A path to modernization and leveraging information technology to benefit society as a whole warrants inclusiveness, openness and mutual growth. China Mobile claims to be bridging the digital divide for marginalized populations. The Chinese telecom behemoth has propelled its efforts to boost its broadband speed and reduce tariffs; in 2022, the company asserted that around 37 million people benefited from targeted tariff reductions.
The company also underpinned elderly people with the development of a “connected intelligent healthcare service platform.” China Mobile mentioned in its 2022 Sustainability Report that it had built 120 smart elderly care demonstration sites, served over 1.3 million senior users, created more than 2,700 home-based elderly care beds and inked contracts with 117 elderly care institutions.
The Chinese behemoth has used 5G to underscore high-quality education. It deployed more than 1,500 5G+ smart campus projects and built a 5G smart cloud examination solution. Connecting people and things and digitizing the education sector can bolster ESG goals.
Verizon Banking on Governance to Build Climate-Resilience Strategy
Transparent reporting and stakeholder engagement, along with good governance, are paramount to building a circular economy. Investors and venture capitalists speak well of companies that seek candidates from different backgrounds, races, genders, expertise, and skills. Verizon, on its board, had five directors who identified themselves as ethnically or racially diverse, and four were women (as of December 31, 2022). The company claims each of its directors has experience or skills in one or more facets of ESG, such as DEI, cybersecurity, digital inclusion, data protection and privacy, governance, sustainability, business ethics, and compliance.
Stakeholders are gearing up to build a better future, integrating climate considerations into operational and strategic decision-making processes. To illustrate, the Audit Committee at Verizon reportedly discussed operational and financial risks regarding network reliability and resilience, energy management and the impacts of environmental and ESG reporting regulations (current and emerging). The American telecommunication behemoth has created an ESG Center of Excellence to foster its compliance with climate change-related laws and regulations.
With climate-related risks and opportunities having a likely impact on the business, socially responsible investments could be more pronounced in the 5G ecosystem. Digital intelligence resources, including cloud, IoT, and 5G, have underscored the modernization of society. The new generation of wireless communication has set the precursor for a new customer experience and basis for digitization. These opportunities come with responsibilities to foster a circular economy.
Related Reports:
- Cloud Computing Industry ESG: https://astra.grandviewresearch.com/cloud-computing-industry-esg-outlook
- Digital Payments Industry ESG: https://astra.grandviewresearch.com/digital-payments-industry-esg-outlook
- Cyber Security Industry ESG: https://astra.grandviewresearch.com/cyber-security-industry-esg-outlook
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