EXECUTIVE INSIGHT
After Copenhagen:
Tackling climate change
LEad SpoNSoRR
The line goes green.
Why environmental policies are critical to Telcos and
recommended strategies.
Executive summary O Legislation – the current legislative framework is
The Telecommunications industry is the backbone highly fragmented with significant emphasis
of the global economy, with total revenues in placed on electricity consumption. Whereas new
excess of $1.9 trillion (USD), and a key enabler of legislation is anticipated to focus on wider
modern commerce across all industry sectors. environmental issues and also create additional
However, energy consumption has grown in line financial incentives to encourage green initiatives.
with demand and this now represents a major However there is an opportunity to take this
environmental challenge. Public awareness of the further, for example by linking licence costs with
impact Telcos are having on the environment is an operator’s green performance. This could have
increasing and both governments and companies a significant positive impact on the adoption of
are responding. environmental policies.
O Cost – reductions in energy consumption, travel,
Due in part to the global economic downturn, packaging and the complexity associated with
2009 is likely to mark a turning point for the recycling initiatives can all drive cost savings.
sustainability agenda. Environmental policies have Significant progress has already been made in this
become mainstream, primarily as an opportunity to space. However there are four areas which offer
reduce cost. Yet while cost reduction lies at the further opportunities – increased network sharing,
heart of the green agenda, this is only part of the reduced power consumption, improved field force
opportunity offered to Telcos by environmental effectiveness and reduced handset renewal.
policies. O Revenue – businesses and consumers are
increasingly willing to pay for environmental
Deloitte believes that there are four key drivers that products and services. By 2020 this market is
make environmental policies critical to Telcos – expected to grow to $2.7 trillion (USD). In order
social awareness, legislation, cost and revenue: to unlock new sources of revenue, Telcos will
need to capitalise on opportunities to help other
O Social awareness – as awareness of the emissions industries meet their emission reduction targets.
associated with the Telecommunications industry
increases, in future Telcos will need to build trust Green credentials are likely to become a source of
with their customers on these issues by competitive advantage for Telcos in the next few
implementing green policies consistently across years. They need to respond by accelerating the key
every area of their business. There is also likely to environmental initiatives that minimise the impact
be a requirement to evidence the impact of of current and future legislation and capitalise on
sustainability initiatives through a wider range of substantial new revenue opportunities.
operational metrics than is currently the case,
together with greater emphasis on independent
verification of stated performance.
Contact details:
Tony Cooper, Partner +44 (0) 7775 596730
tonycooper@deloitte.co.uk
Charlie Wijsman +44 (0) 7764 602604
cwijsman@deloitte.co.uk
Ivan Fam +44 (0)7990 540157
ifam@deloitte.co.uk
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