{"id":541260,"date":"2024-09-25T09:48:22","date_gmt":"2024-09-25T07:48:22","guid":{"rendered":"https:\/\/www.capgemini.com\/se-en\/?p=541260&#038;preview=true&#038;preview_id=541260"},"modified":"2025-03-13T07:45:11","modified_gmt":"2025-03-13T06:45:11","slug":"how-eu-telecom-regulators-can-accelerate-the-industry-towards-sustainability","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/se-en\/insights\/expert-perspectives\/how-eu-telecom-regulators-can-accelerate-the-industry-towards-sustainability\/","title":{"rendered":"How EU telecom regulators can accelerate the industry towards sustainability"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1><strong>How EU telecom regulators can accelerate the industry towards sustainability<\/strong><\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/se-en\/wp-content\/uploads\/sites\/20\/2021\/05\/Frederic-Vander-Sande-2.png?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Frederic Vander Sande and Pierre Angelet<\/h5><h5 class=\"blog-date\">Sep 25, 2024<\/h5><\/div><\/div><div class=\"brand-image\"> <\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/?p=1060726\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?url=https:\/\/www.capgemini.com\/?p=1060726\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<p>Sustainability has become a fundamental pillar of today\u2019s society. As European regulatory and societal pressures rise, telecom operators embrace sustainability. The telecom industry is indeed a critical contributor to global greenhouse gas emissions, although exact numbers vary.<\/p>\n\n\n\n<p>To meet EU targets, the telecom industry must follow the Science Based Targets initiative (SBTi). This requires mobile network operators to cut emissions by 45%, fixed network operators by 62%, and data centers by 53% between 2020 and 2030to follow a science-based pathway toward net zero.<\/p>\n\n\n\n<p>This is a significant challenge for an industry deeply rooted in technology and now the leading enabler of digital and cloud transformation for public services, businesses, and individuals. As a reminder, the European Green Deal aims for the EU to achieve climate neutrality by 2050.The telecommunications industry urgently needs to enhance and accelerate its sustainability practices. Alignment between telecom operators, regulators, and industry stakeholders is crucial.&nbsp; In fact, 84% of the telecom executives surveyed in the latest <a href=\"https:\/\/www.capgemini.com\/insights\/research-library\/sustainability-trends-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">ÎÚÑ»´«Ã½ Research Institute Report \u201cA world in balance\u201d<\/a> agree that sustainability regulation will be a beacon guiding organizations towards global climate goals.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-european-telecom-operators-are-advancing-in-their-commitment-to-sustainability\"><strong>European Telecom Operators are advancing in their commitment to sustainability<\/strong><\/h4>\n\n\n\n<p>In the European Union, telecom operators committed early to sustainability \u2013 also motivated to reduce energy costs and dependency. According to a report by ÎÚÑ»´«Ã½ Invent and CDP<a href=\"#_ftn1\" id=\"_ftnref1\">[1]<\/a>, the industry has improved its efforts and is now one of the two leaders in decarbonization maturity. However, a disparity exists among telcos, with some leading the way and others still refining their strategies in detail.<\/p>\n\n\n\n<p>Overall, the operators aim to achieve net zero emissions before 2050, targeting dates between 2035 and 2041, with sub-steps set for 2030, primarily focusing on scope 1 and 2 emissions. Scope 1 emissions refer to direct emissions emitted by a company, whereas scope 2 emissions are indirect emissions from the purchase of electricity consumed by the company.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/09\/image_b9f0e2.png\" alt=\"\" class=\"wp-image-1060729\"\/><\/figure>\n\n\n\n<p>Table 1 \u2013 Telecom operator\u2019s commitments to sustainability , ÎÚÑ»´«Ã½ Invent, Analysis June 2024<\/p>\n\n\n\n<p>An important advancement among key operators is the use of renewable energy, which shows the commitment to decarbonization. However, the extent of renewable energy usage varies greatly.<\/p>\n\n\n\n<p>Many operators use green certificates despite concerns about greenwashing, legitimacy, and lack of connection to local green energy projects.<\/p>\n\n\n\n<p>For a growing number of organizations, circularity is another key focus, incorporating strategies such as sustainable packaging, eco-designs, and the reuse, recovery, and recycling of network materials, along with the use of partnerships. Finally, certain operators go beyond standard sustainability measures by engaging in nature conservation projects such as reforestation, anti-deforestation efforts, collaborations with environmental organizations, and the purchase of high-quality carbon offsets.<\/p>\n\n\n\n<p>To gain recognition for these activities, operators aim to have their targets approved by SBTi and achieve an \u2018A\u2019 score from the CDP. According to the <a href=\"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/external-affairs\/wp-content\/uploads\/2024\/02\/Mobile-Net-Zero-2024-State-of-the-Industry-on-Climate-Action-1.pdf\">GSMA&nbsp; Report \u201cMobile Net Zero 2024\u201d<\/a>, 70 operators worldwide representing 68% of industry revenues, have set near-term science-based targets in 2023 \u2013 an increase from 50 operators in 2021. Additionally, the quality of disclosures has improved.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-telecom-industry-and-regulatory-bodies-are-taking-steps-to-improve-decarbonization-efforts\"><strong>Telecom industry and regulatory bodies are taking steps to improve decarbonization efforts<\/strong><\/h4>\n\n\n\n<p>Standardization bodies like ITU (United Nations&#8217; International Telecommunications Union) have established guidelines and standards for procurement, circularity, sustainable supply chains, material efficiency, e-waste management, and facilitate tracking decarbonization efforts. Additionally, ITU standards for energy efficiency outline how big data and AI can optimize smart energy management for telecom sites and data centers, prioritizing renewable energy.<\/p>\n\n\n\n<p>The GSMA, representing the interest of mobile operators worldwide, supports the industry&#8217;s commitment to sustainability through programs like <a href=\"http:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/mobile-for-development\/climatetech\/\">ClimateTech<\/a>, which promotes greater integration between digital technology and climate mitigation. Their Sustainability Assessment Framework evaluates mobile operators\u2019 operational performance and societal impact as well as leadership in addressing global challenges and opportunities.<\/p>\n\n\n\n<p>Regulatory bodies are also actively working to enhance the sustainability of the industry. Beyond the activities taken by the European Commission, the Body of European Regulators for Electronic Communications (BEREC) emphasizes sustainability objectives in its 5-year strategy launched in 2020. These include enhancing the understanding of European telecom regulators regarding sustainability issues, contributing to the attainment of ICT-related objectives outlined in the Green Deal and UN Agenda 30, and aiding in measuring the digital sector&#8217;s environmental impact.<\/p>\n\n\n\n<p>In line with these targets, guidelines, and frameworks, local telecom regulators across the EU are implementing strategies and conducting studies to enhance the industry\u2019s sustainability within their respective nations.<\/p>\n\n\n\n<p>Some regulators focus on understanding the environmental impact of digital technologies through detailed studies and annual inquiries, while others use consumer surveys to gauge awareness and attitudes regarding environmental impact. Overall, national regulators utilize distinct indicators when measuring sustainability, targeting operators, device manufacturers, and data centers.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/09\/image_cc9546.png\" alt=\"\" class=\"wp-image-1060744\"\/><\/figure>\n\n\n\n<p>Table 2 \u2013 Key EU regulators on sustainability and their actions, as per BEREC report* Source: ÎÚÑ»´«Ã½ Invent, Analysis June 2024<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-call-for-fostering-the-implementation-of-a-unified-industry-specific-measurement-framework\"><strong>Call for fostering the implementation of a unified industry specific measurement framework<\/strong><\/h4>\n\n\n\n<p>Despite the telecom industry&#8217;s efforts to commit to and enhance sustainability, significant challenges remain due to its complex relationship with sustainability, as shown by the increasing volume of data and energy consumption driven by digital connectivity. In the near term however, the industry must balance &nbsp;profitability with environmental sustainability.<\/p>\n\n\n\n<p>The varied and unaligned approaches among EU telecom regulators and operators highlight the lack of standardized sustainability metrics and differing progress levels. This complicates measuring sustainability efforts and hinders comparability across peers.<\/p>\n\n\n\n<p>To enhance and accelerate industry sustainability practices, European regulators must gain alignment and collaborate closely with operators and other stakeholders to foster the implementation of a unified industry-specific sustainability measurement framework with three ambitions in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Compare CO2 benchmarks for different network models:<\/strong> Develop a benchmarking system that standardizes CO2 reduction metrics across different network infrastructures (e.g., fixed vs. mobile network). This system would use uniform CO2 reduction metrics (e.g., energy consumption per unit of data), allowing to set clear, quantifiable targets and supporting companies to measure their progress against peers and industry standards. Organization like CDP for example can be instrumental by maturing and marketing better their industry-specific models and KPIs.<\/li>\n\n\n\n<li><strong>Build trust by embedding sustainability in management practices:<\/strong> Data collection and reporting are already well advancing. Building trust on the ability for operator to meet their targets however requires to embed sustainability in the business strategy and management practices. Specifically ensuring that investments and operations align with environmental targets in a standard way.<\/li>\n\n\n\n<li><strong>Identify and highlight industry leaders and best practices through a ranking or certification system:<\/strong> This would highlight best practices to encourage continuous improvement and allow for industry-wide comparisons and advancement. But also to position sustainability as a core differentiator in client\u2019s provider choices and wider ecosystem building.<\/li>\n<\/ul>\n\n\n\n<p>Such collective effort is essential to accelerate the sustainability transition of the industry and society, to reduce the risks of greenwashing and maintain progress amid geopolitical and political uncertainties.<\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/www.capgemini.com\/insights\/expert-perspectives\/telco-insights\/\" target=\"_blank\" rel=\"noreferrer noopener\">TelcoÎÚÑ»´«Ã½<\/a><\/strong>&nbsp;is a series of posts about the latest trends and opportunities in the telecommunications industry \u2013 powered by a community of global industry experts and thought leaders.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>[1] https:\/\/prod.ucwe.capgemini.com\/wp-content\/uploads\/2023\/05\/CDP-ÎÚÑ»´«Ã½-Invent_Report-July-2023_From-stroll-to-sprint.pdf<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-wrapper-people-slider section section--expert-slider wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h3 data-maxlength=\"34\">Meet the authors<\/h3><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\n\n\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/se-en\/wp-content\/uploads\/sites\/20\/2021\/05\/Frederic-Vander-Sande-2.png\" alt=\"\"\/>\n\t\t\t\t\t\t<!-- <img decoding=\"async\" src=\"\" alt=\"\"\/> -->\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/fvandersande\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Frederic Vander Sande<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<!-- <span class=\"box-position\"> -->\n\t\t\t\t\t\t\t\t\t\t<span>European Head of Telecoms for ÎÚÑ»´«Ã½ Invent<\/span>\n\t\t\t\t\t\t\t\t\t<!-- <\/span> -->\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/fvandersande\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t   <div class=\"people-info\">Fr\u00e9d\u00e9ric is European Head of Telecoms for ÎÚÑ»´«Ã½ Invent. He brings over 20 years of experience in advising senior leaders on strategy, commercial, operations, and technology questions in the telecom, media, and entertainment industries. His areas of expertise are in business planning, transformation, commercial strategy or the launch of new businesses, products &#038; services. Some of his recent work address telecom sustainable future challenges as well as digital identity developments.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n\n\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/se-en\/wp-content\/uploads\/sites\/20\/2024\/10\/Pierre-Angelet-1.jpg\" alt=\"\"\/>\n\t\t\t\t\t\t<!-- <img decoding=\"async\" src=\"\" alt=\"\"\/> -->\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Pierre Angelet<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<!-- <span class=\"box-position\"> -->\n\t\t\t\t\t\t\t\t\t\t<span>Member of ÎÚÑ»´«Ã½ Invent\u2019s Telecoms Sustainable Future Team<\/span>\n\t\t\t\t\t\t\t\t\t<!-- <\/span> -->\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t   <div class=\"people-info\">Pierre is a consultant at ÎÚÑ»´«Ã½ Invent\u2019s Brussels office, with experience in telecom and sustainability projects. He focuses on driving innovation and delivering strategic solutions to address environmental and operational challenges for telecom clients.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider 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