Business Benefits for Organisations Aiming to Reduce their Carbon Footprint
We are living in interesting times.
A number of local events so far are all pointing to this year going down in history as being a big one. To name just a few, this includes the 2024 local national elections resulting in a Government of National Unity (GNU); the recent floods in parts of the country, including the Western and Eastern Cape areas and KZN; and an actual tornado in the Durban area.
This year’s local historic events also include the 2024 Springbok Home Fixtures Rugby series, which is truly juicy (and did you know that you could win double tickets with Vox?).
So it’s a big year for South Africans.
But if we circle back to those extreme weather incidents, it reminds us that the planet seems to be fighting back against humanity’s eco-unfriendly practices – and let’s face it, no one wants a tornado to hit one of those big rugby games.
More seriously: the call to action for businesses and consumers alike must therefore be: Embrace Sustainability.
(And the same goes for the GNU also, of course, but that’s a ‘wilde-beast’ of a story all on its own.)
For the Planet – And Future Generations
Most people today agree that people – individuals, organisations, countries – MUST become more environmentally sustainable. We all rely on the Earth’s resources for the air that we breathe; water to drink; plants and animals for food; wood and metals for construction; and fuels, whether fossil or renewable, for energy resources.
If we use them up too fast, and if we burn energy unsustainably so that it over-heats the planet, these resources won’t be there fore future generations. We must bring our consumption in line with what our planet can support.
Spotlight On the Telecommunications Industry
The telecoms industry is vital for allowing our world to remain connected – but it also has a considerable negative impact on the environment.
Data centres on their own account for about one percent of the world’s electricity use, and the telecom industry overall produces about three to four percent of global CO2 emissions. To put this into perspective, it is twice as much as the civil aviation industry[1].
This is quite a significant amount to come from an industry that at first glance doesn’t seem to be directly associated with environmental concerns.
In addition, the telecoms sector also contributes to electronic waste through rapid device turnover, when outdated cell phones, modems and routers often end up in landfills, creating an additional environmental challenge.
With the growing concern over climate change, the telecoms sector is now embracing more sustainable practices, aiming to reduce its carbon footprint significantly.
Solutions to reduce carbon footprint in the telecommunications industry include the following:
- Embracing renewable energy: In moving towards reduced carbon emissions, it makes sense to shift towards renewable energy sources such as solar and wind power to run data centres and network operations.
- Smart energy management in operations: Energy consumption and in turn operational costs can be reduced by upgrading equipment to more energy-efficient models, optimising network operations, and implementing smart cooling systems in data centres.
- Equipment sustainability: Manufacturers can design more durable devices that are easy to repair and upgrade, which will extend their lifespans.
- Creating a circular economy: Programmes for the recovery and recycling of electronic equipment contribute to reducing electronic waste overall.
- Eco-friendly infrastructure development: Adopting eco-friendly design and construction practices for new infrastructure sites includes using sustainable materials, minimising land use, and ensuring that new projects have a low environmental impact.
The carbon footprint of telecommunications presents significant environmental challenges, but there is hope. Through initiatives like renewable energy usage, equipment sustainability, and consumer and business awareness, real progress can be made in reducing its impact.
At the same time, extreme weather conditions such as flooding, storms, a lack of water, and wildfires have potentially disastrous consequences for telecommunications, causing damage to infrastructure and essential equipment, as well as business- and supply-chain interruption. If the world as a whole embraces sustainability issues, we can hope to reduce these natural disasters.
Business Benefits for Telcos in Going Green
As far back as 2022, multinational professional services experts Ernst and Young (EY) urged South African businesses to embrace sustainability issues voluntarily before they were made essentially compulsory for all. However, never mind being forced to embrace global trends: there are actually intrinsic business benefits for telcos around the world, including locally, in ‘going green’ anyway.
- Energy cost reduction feeds into improved OPEX: In 2023 the GSMA, the global technology standards organisation for mobile operators from over 100 countries, published a report entitled: “Green is good for business: making the financial case in telecoms”.
According to the report, mobile telecom operators can potentially reduce operational expenses (OPEX) by 4% through a 20% reduction in energy costs, achieved by implementing power-saving technologies such as 5G, artificial intelligence (AI), and lithium-ion batteries.
- New customers: Additionally, the report notes that customers worldwide are willing to support telecom operators that invest in sustainability. The study reveals that 30 to 60 percent of telco subscribers surveyed in 16 countries would be willing to pay more for mobile airtime tariffs certified as carbon neutral.
- Reputational wins: In a follow-up report entitled: “Green is good for business: the reputational in telecoms”, the GSMA notes: “The reputational impact of corporate green credentials and actions extends to brand perception and purchasing decisions. …Analysis of data from a recent GSMA Intelligence survey indicates that 60 percent of people, on average across 16 countries studied, consider climate or sustainability criteria an active part of product purchasing.”
The lesson is clear: by investing in sustainable practices and driving the adoption of digital solutions, telecom operators can contribute to their own financial success through reduced energy and operating costs, a potential increase in eco-friendly customers, and reputational and branding wins, while simultaneously supporting global sustainability efforts within the industry overall.
Proudly Green
The journey towards a smaller carbon footprint in the telecom industry is complex and requires a multi-faceted approach. This commitment benefits the environment and also sets a new standard for responsible business practices in the digital age.
Overall, reduced energy consumption, the adoption of renewable energy sources and the implementation of a carbon reduction strategy are the three vital elements that must work in tandem for a telco to be considered green.
Vox is always proud to work with telecommunications partners that are committed to environmental sustainability issues, for the overall benefit of the country and the planet in turn. After all, you just have to look at our own branding to know that our blood runs green (and gold).
[1] https://explore.intellias.com/hubfs/Whitepapers/Intellias_Sustainability_In_Telecom_Whitepaper.pdf page 4
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