thebiginterview


“Our starting point is very much to be as transparent and honest as possible, and back it up with good data.”


Supply chain emissions are a major challenge for any large organisation. How does BT manage this across such a diverse supplier base? “Around 70% of emissions sit within the supply chain, and the bulk of our carbon footprint comes from people we do business with.” BT applies a 15% sustainability weighting in all bids and RFPs, requiring suppliers to meet its Supplier Code of Conduct. But the real complexity lies in the long tail. “Eighty per cent of our emissions in the supply chain come from probably 20 big companies. Ten we’ve got 13,000 suppliers who make up 20% of our emissions, and 90 to 95% don’t have the skills, the resources or the budget to get going with this.” For these SMB suppliers, BT takes a collaborative approach.


“We’re part of the SME Business Climate Hub, providing free tools, free guidance and free advisory capabilities to help them get started on sustainability.” BT also participates in the 1.5°C Supply Chain Partnership to support more detailed reporting. “Te expectation is not to have a direct impact on what’s most important to them, which is their business and profitability, but to make sure they’re well prepared, because this is going to become the norm.” “Te first thing we advocate for all our partners is starting


off with measurement.” Tat begins with product level carbon footprints, which break down emissions into raw materials, manufacturing, transport, use and end of life. “If you are buying services and products from other people, that’s what you want to ask for.” He encourages partners to think ahead. “It’s better to be


prepared now when end customers are asking for it, rather than be reactive down the line.” Refurbished stock is one simple example: “Someone else has already accounted for the carbon emissions for the life cycle of that device, which is great for the partner and great for the end customer.” Business model innovation is another lever. “Could channel


partners think about it as a service as opposed to selling outright? Te responsibility for end of life sits with the channel partner, but it opens up new business opportunities.”


For SMB partners who feel overwhelmed, what are the first three things they should do? “First, understand within their business operations where there could be an impact.” Tat might be a company vehicle, a small office, or a distribution activity. “Second, start gathering basic data. If you have a fleet vehicle,


the simplest data source is mileage. If you have a building, do you have access to an energy bill?” He notes that AI tools can now convert this into carbon estimates quickly. “Tird, start conversations. With your fleet provider, what’s


the availability of electric? With your energy provider, what’s my option for a renewable tariff? And most importantly, start having those conversations with the supply chain.” None of this requires additional resources. “Any business owner can get started today by starting really simple and starting small.”


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Regulation is tightening. How can channel partners prepare for the next wave? “Historically, reporting has been perceived as scary, burdensome and expensive. Te good news is the UK has been listening, and the expected regulations are going to work for businesses.” Many partners already fall under the EU’s Corporate


Sustainability Reporting Directive (CSRD). “If you’re supplying goods and services into the European market, you are mandated to start doing reporting, and it covers sustainability more broadly, such as social impact, ethics, modern slavery and human rights.” Te EU also requires ‘double materiality’, which is the impact of sustainability issues on the organisation as well as the organisation’s impact on society. In the UK, the IFRS S1 and S2 standards will link financial


and sustainability reporting. “You’ll see organisations starting to link their revenue line, their profitability line, with carbon data. Investors want to make sure the organisation is going to survive.” Te FCA will require this from 2027 for listed companies, with other sectors following. For most channel partners, compliance won’t be mandatory


immediately, but preparation is essential. “It makes good business sense to start thinking about being compliant and start off with the three things I mentioned earlier.”


What role do telecoms and digital infrastructure play in decarbonisation? “A lot of people don’t really understand the link yet between digitalisation and sustainability.” He breaks it into two parts. First, the impact of digital products themselves. AI ready devices


and compute infrastructure are driving energy use. “Anything that grows with compute comes with increased power.” Meanwhile, device refresh cycles are accelerating. “E waste will be the fastest growing waste stream in the world in the next three years, and all of us are responsible for that.” Te shiſt from PSTN to FTTP is a positive story. “It’s far more


energy efficient with lower maintenance. We’ve achieved 18% reduction in maintenance over the last year, which is great for sustainability.” Second, digitalisation as an enabler of decarbonisation. “End


organisations want to be more efficient, but you can’t do that without data, which means that smart meters, IoT devices, building management systems and AI driven optimisation will all accelerate. Tere’s a great opportunity for channel partners to sell that story: it starts with connectivity and ends with AI capabilities.”


Is there one final message you want channel partners to hear? “Te question many SMBs ask is ‘Why should I care?’ and the answer is commercial reality. Government procurement now mandates a minimum 10% sustainability weighting. You can no longer leave that blank – it’s going to get read, and it’s going to count. In competitive bids, you might as well give it your best shot.” Private sector customers and investors are also raising


expectations. “If a channel partner is looking for financing, you’re going to have to be prepared – investors want to make sure that an organisation is not going to cost them a lot of money in the long term because they’re not set up for sustainability.”


May/June 2026 | 13


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