In 2024, the telecom industry faces increasing regulatory scrutiny on Scope 3 emissions, requiring players to monitor and report emissions throughout their supply chains. With climatic extremes in 2023 signalling a need for change, regulations will tighten, focusing not just on direct and energy-related emissions (Scopes 1 and 2) but also on Scope 3 emissions, which include the entire value chain.

Telecom operators must address these indirect emissions to avoid fines, reputational damage, customer churn, and reduced investment opportunities.

Sustainability is now a critical factor in M&A processes and investment decisions. The telecom sector must adapt to these evolving regulatory and consumer expectations to maintain competitiveness and investor confidence.

Woodland trees

Deloitte predicts significant carbon footprint reductions in the telecommunications industry, driven by four new trends. This includes shutting down copper wire and 3G wireless networks, transitioning field service fleets to electric vehicles, and adopting 5G radio gear with energy-saving features.

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Telcos are expected to reduce their carbon emissions by 2% or 12 million tons of CO2 equivalent in 2024, and again in 2025. Despite telecoms being responsible for only 1.6% of global emissions, these measures are crucial for sustainability, compliance with regulations, attracting subscribers, and improving profitability. Additionally, strategies like using renewable energy, running efficient data centres, and promoting longer use and second-hand phone markets are also contributing to the reduction.

With that backdrop in mind, Gamma is paving the way to a sustainable future, guided by a robust strategy to meet its ambitious carbon net-zero target by 2042. Sarah Kirton, Group Sustainability Director, outlines the approach:

“Gamma’s sustainability strategy demonstrates a comprehensive approach which we outlined in early 2021.”

 

This includes developing a carbon reduction transition plan that identifies opportunities to support this goal. The commitment extends to publishing a second Sustainability Report, building on previous transparent disclosures.

A key focus is on reducing Scope 3 emissions, with a targeted approach towards supply chain management. Kirton emphasises, “We understand and are leveraging key sustainability priorities to address carbon reduction, transparent reporting, and supply chain emissions.” Gamma recognises the crucial role of suppliers in this journey and is actively monitoring their progress in environmental management and emissions reduction.

Furthermore, Gamma is dedicated to supporting customers and Channel Partners in sustainability and carbon emissions reduction

This assistance is not only a business initiative but a part of their broader commitment to environmental stewardship.

Another significant element is the development of Gamma’s social value proposition. This initiative aligns with the UN Sustainable Development Goals, focusing on digital equity and early careers opportunities. Kirton highlights,

“This continual improvement approach emphasises not only internal actions but also engagement and collaboration with external stakeholders to achieve broader sustainability goals.”

Gamma’s strategy is a holistic one, integrating internal actions with collaborative efforts, all aimed at achieving significant sustainability milestones in the years leading up to 2042.

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