MobileNetZeroStateoftheIndustryonClimateAction2022Copyright©2022GSMAssociationTheGSMAisaglobalorganisationunifyingthemobileecosystemtodiscover,developanddeliverinnovationfoundationaltopositivebusinessenvironmentsandsocietalchange.Ourvisionistounlockthefullpowerofconnectivitysothatpeople,industryandsocietythrive.Representingmobileoperatorsandorganisationsacrossthemobileecosystemandadjacentindustries,theGSMAdeliversforitsmembersacrossthreebroadpillars:ConnectivityforGood,IndustryServicesandSolutions,andOutreach.Thisactivityincludesadvancingpolicy,tacklingtoday’sbiggestsocietalchallenges,underpinningthetechnologyandinteroperabilitythatmakemobilework,andprovidingtheworld’slargestplatformtoconvenethemobileecosystemattheMWCandM360seriesofevents.Weinviteyoutofindoutmoreatgsma.com.FollowtheGSMAonTwitter:@GSMAGSMAIntelligenceisthedefinitivesourceofglobalmobileoperatordata,analysisandforecasts,andapublisherofauthoritativeindustryreportsandresearch.Ourdatacoverseveryoperatorgroup,networkandMVNOineverycountryworldwide–fromAfghanistantoZimbabwe.Itisthemostaccurateandcompletesetofindustrymetricsavailable,comprisingtensofmillionsofindividualdatapoints,updateddaily.GSMAIntelligenceisreliedonbyleadingoperators,vendors,regulators,financialinstitutionsandthird-partyindustryplayerstosupportstrategicdecision-makingandlong-terminvestmentplanning.Thedataisusedasanindustryreferencepointandisfrequentlycitedbythemediaandbytheindustryitself.Ourteamofanalystsandexpertsproduceregularthought-leadingresearchreportsacrossarangeofindustrytopics.www.gsmaintelligence.cominfo@gsmaintelligence.com2MobileNetZeroAbouttheGSMA2Foreword04Executivesummary051.Netzeroambition06Operatortargets07Casestudy:Axiata102.ClimateActionTaskforce123.Understandingclimaterisksandopportunities14Thejourneytoleadershipinenvironmentaltransparency15Carbondisclosurescores:2021versus202015Theunreported15Casestudy:Zain174.Carbonemissionsoftheindustry18Measurementsandmethodologies19Emissionsinthecontextofdatatraffic20Estimatingoperators’carbonemissions21Casestudy:KDDI225.Energyefficiencyandmobileconnectivity23Energyefficiencygrowinginimportanceatindustryawards24Benchmarkingenergyefficiency255Genablingfurtherenergyefficiency26Casestudy:Airtel276.Transitioningtorenewableelectricity29Growinguseofrenewables30Accessingrenewableelectricity31Casestudy:Claro327.Mobileindustrysupplychain34Sustainablenetworkequipment35Theimpactofvirtualisation37Vendorlandscape37Casestudy:Tele239Casestudy:Telia408.Digitisationandenablement41Mobileanddigitaltechnologyhelpingtoacceleratedecarbonisation42TheEuropeanGreenDigitalCoalition43Casestudy:OrangeEnergy449.Adaptationandresilience46TaskForceonClimate-RelatedFinancialDisclosures47Casestudy:Safaricom49Recommendations50Contents3MobileNetZeroContents3JohnGiustiChiefRegulatoryOfficer,GSMAForewordAswepublishoursecondannualassessmentofthemobileindustry’sperformanceagainstitsnetzeroambition,wearepleasedtoseethatagrowingnumberofoperatorsandsuppliersareacceleratingtheirefforts.Giventheurgencyoftheneedtoworktowardsanetzerocarbonfuture1,itisessentialthatambitionbefollowedthroughwithtangibleaction.Thelast12monthshaveseenadecouplingofdatatraffic,electricityuseandcarbonemissions.Whilethemobileindustryhascontinuedtoseedouble-digitgrowthindatatraffic,ourenvironmentalimpactshavegrownatamuchslowerpace.Thisisapositivesignwhichshowstheindustryismovingintherightdirection.Yet,continuedeffortsareneededtobothpreventemissionsrisingandtorapidlydecreasethem.Improvingenergyefficiencyofnetworksandrealisingthepotentialof5Gwillrequireretiringolder,lessenergy-efficientnetworks.Increaseduptakeandinvestmentinrenewableenergy,whichwearestartingtowitnessacrosstheindustry,isanotherpriority;onewhichrequirestheactivesupportofgovernmentsinsomepartsoftheworldtoensurefairandequitableaccesstorenewableenergymarkets.Wearealsofocusingourattentiononacirculareconomy,enabledbymorerefurbishment,re-useandrecyclingofproductstoreducewaste.InFebruary2022,theGSMApublishedastrategypaperonthecirculareconomyofnetworkequipment.Laterthisyear,wewillfollowupwithrecommendationsforthecircularityofconsumerdevicesastheindustrymovesinthisimportantdirection.Muchremainstobedone,buttherehasneverbeenagreaterwillingnesstocollaborateacrossthesectortoachievetheseambitiousgoals.Itwilltakeactionfromallsectorsandgovernmentstomeettheambitionofkeepingwarmingbelow1.5°C.1IPCCClimateChangeReport20224MobileNetZeroForeword4ExecutiveSummaryThisyear,theGSMAisproudtosaythattheindustrycontinuestoalignaroundthe1.5°Cdecarbonisationpathway.Todate,50operatorsrepresenting63%oftheindustrybyrevenueand44%byconnectionshavecommittedtorapidlycuttingtheiremissionsoverthenextdecade.Thisisanincreaseof19operatorssincelastyear.Aconsiderableproportionofoperatorshavealsocommittedtonetzerotargetsby2050orearlier,accountingfor29%ofglobalmobileconnectionsand38%ofglobalrevenue.Inordertohelpbetterunderstandcurrentemissionsandbegintoreducethem,themobileindustryisseeinghigherlevelsofclimatedisclosure.Thisisbothinthenumberofoperatorsandkeysuppliersdisclosingandthelevelofdetailwithintheirdisclosures.Oftheindustry,66%byconnectionsand82%byrevenuegloballydisclosetheirclimateimpacts.MobileoperatorsscoringaDorD-thepreviousyearhaveimprovedtheirratingstoC,sometimesevenleapfroggingtoB.Toboostenergyefficiency,theindustryisusingthelatesttechnologiestohelpreduceclimateimpacts.Artificialintelligence,machinelearningandvirtualisationareoptimisingpoweruseinequipment,centralisingnetworkresources(enablingsynergies)andavoidingunnecessaryheatingorair-conditioning.Themobileindustrycontinuestosuccessfullydecoupledatatraffictravellingovernetworkswithelectricityuseandcarbonemissions.Datatrafficwasup31%lastyear,withelectricityup5%andassociatedcarbonemissionsuponly2%.Aswellasharnessingoperationalefficiencies,operatorsareusingmorerenewableelectricity.During2021,18%oftotalelectricityconsumptionwassourcedfromrenewablesources.Thisfigureisupfrom14%in2020.Supplierengagementcontinuestobecrucialtoachievingtheindustry’sdecarbonisationpathway.Thisyear,operatorshaveengagedsupplierstostartadiscussionaroundmovingtowardsgreatercircularitythroughreuseandrecyclingofnetworkequipment.AnewgoodpracticemetrichasalsobeendevelopedbytheGSMAfortheindustrytohelpfocusefforts,withseveraloperatorsalreadyaligningtheirtargets.FollowingtheprogressatCOP26andaheadofthisyear’sCOP27,theGSMAcontinuestocallongovernmentstoaligntheircarbon-reductiontargetstonetzeroby2050atthelatestandtocreatesuitableenergymarketframeworksforbusinessestoaccessrenewableelectricityatacompetitiveprice.Byfosteringatwindigitalandgreentransition,countrieswillbeabletoreapthebenefitsoffurtheremissionreductionsacrossallsectorsoftheeconomy.Lastyear,theGSMAmadethefirstassessmentofhowthemobileindustryisprogressingagainsttheambitiontobenetzeroby2050.Highlightsincludedbeingrecognisedasa‘BreakthroughSector’bytheUN’sRacetoZerocampaignbyachievingmorethan20%ofmobilenetworkoperatorsbyrevenuehavingsetnetzerotargets.5MobileNetZeroExecutiveSummary51xxx2xxx3xxxx4xxx1Netzeroambition6MobileNetZeroNetZeroAmbition6Mobilenetworkoperatorsaroundtheworldaretakingtheircommitmentstoreachnetzerocarbonemissionsseriously.Theindustryisworkingcollaborativelyonthechallengethroughacomprehensivesetofactions.Bycommittingtonetzerotargets,operatorsaretakingresponsibilityfortheemissionsoftheirwholesupplychain,includingScope3emissionsbothupstreamanddownstream.Thisisasignificantcommitmentfromanindustrywhoseoutputisincreasingmonthbymonth,throughtheprovisionofimprovedconnectivityinmoreplaces,tomorepeopleandtomoredevices.66%byconnectionsOftheindustry......disclosetheirclimateimpacts34%arealignedtotheUNRaceToZeropledge44%havecommittedtoscience-basedtargetsFigure1OperatortargetsSource:CDP,UnitedNationsFrameworkConventiononClimateChangeandoperatorwebsites82%byrevenue...byconnections63%byrevenuebyconnections44%byrevenueandandandZERO7MobileNetZeroNetZeroAmbition7SubmittedtoSBTIforvalidationFigure2ClimatetargetsbyoperatorSource:SBTI,UNGCandoperatorwebsitesSCIENCE-BASEDTARGETSCARBONNEUTRALTARGETYEARCOMPANY2degreesCommittedA1Targetsset:1.5°C2014AlticeCommitted2050AméricaMóvilTargetsset:1.5°C2050AT&TTargetsset:1.5°C2035AxiataCommitted2050BCECommitted2025BhartiAirtelTargetsset:1.5°C2050BritishTelecomTargetsset:1.5°C20302040ChunghwaTelecomCommittedCKHutchisonCommittedDeutscheTelekomTargetsset:1.5°C20252040ElisaTargetsset:1.5°C2020FarEasToneTargetsset:2°CGlobeTelecomCommitted2050IliadCommitted2035JTGroupTargetsset:wellbelow2°C2030KDDITargetsset:1.5°C2030KPNTargetsset:1.5°C20152040LGUplus2030LibertyGlobalTargetsset:1.5°CMagyarTelekomTargetsset:1.5°C20162050MillicomCommitted2050MTNCommitted2040NTTDOCOMOTargetsset:1.5°C2030OrangeTargetsset:1.5°C2040ProximusTargetsset:1.5°C20162040RelianceJioTargetsset:1.5°CSafaricomTargetsset:wellbelow2°C2050SingtelTargetsset:wellbelow2°C2050SKTelecomTargetsset:1.5°C2050SoftBankTargetsset:1.5°C2030SparkTargetsset:1.5°CSTCCommitted2050RACETOZEROTARGET>>CONTINUED8MobileNetZeroNetZeroAmbition8SCIENCE-BASEDTARGETSCARBONNEUTRALTARGETYEARCOMPANYSwisscomTargetsset:1.5°C20202050TaiwanMobileTargetsset:wellbelow2°CTDCTargetsset:1.5°C20282050Tele2Targetsset:1.5°C2020TelefónicaTargetsset:1.5°C20252040TelenorGroupTargetsset:1.5°C2030TeliaCompanyTargetsset:1.5°C20202040TelkomCommitted2050TelstraTargetsset:1.5°C20202050TelusTargetsset:1.5°C20302050TIMCommitted20252040T-MobileUSTargetsset:1.5°CTPGCommitted2050TurkcellCommittedVerizonTargetsset:1.5°C20352040VodafoneTargetsset:1.5°C20302040VodacomTargetsset:1.5°C20302040Science-basedtargets(SBTs)DefinedbytheScience-BasedTargetsInitiative(SBTi)tosetcarbon-reductiontargetsinlinewithlimitingglobalwarmingtobelow2°C.Firstanorganisationcommitstoatarget,thenitsetsthetargetlevel.Formoreinformation,pleaseseegsma.com/betterfuture/setting-climate-targets.Carbon-neutraltargetReferstoreducingandoffsettingcarbonemissionsfromacompany’sownoperations(Scope1and2emissions).Foroperators,thelargestsourcesofScope1and2emissionsareelectricityusefornetworksanddieselfuelusedfortransportandgenerators.RaceToZerotargetCommittingtoachievingnetzerocarbonemissionsby2050atthelatest,aspartoftheUN-ledRaceToZerocampaignwithbusinesses,cities,regions,investorsandfinancialandeducationalinstitutions.Accordingtothecriteriausedbythecampaign,anetzerotargetincludesreductionsinScope3emissionsacrossthewholevaluechain.Formoreinformation,pleaseseeunfccc.int/climate-action/race-to-zero-campaign.Mainmarkets-Spain,GermanyandBrazilNordicoperationsRACETOZEROTARGET>>CONTINUEDDefinitions9MobileNetZeroNetZeroAmbitionAxiata’sdiversegroupofbusinessesiswell-positionedtotakeactiontoreduceourcarbonfootprintandadvocateforinclusiveclimateaction.Ournetzerocommitment,affirmedbyourpledgetotheScience-BasedTargetsInitiative(SBTi)NetZeroStandard,isourresponsetotheurgentcalltoactbyreducingourcarbonfootprintandsupportingclimatemitigationandadaptationefforts.Axiata’sNetZeroCarbonRoadmapisintendedtobeusedtocommunicateourapproachtoreachingnetzerotoourstakeholders.Itoutlinesournetzerocarbongoals,baselinecarbonemissionsprofileandareasweareworkingaspartofAxiata’sAdvancingtoZeroambition.ItencompassesstrategiesthatsupportourresponsetotheIntergovernmentalPanelonClimateChange’scalltolimitglobalwarmingto1.5°C.Ourstrategicapproachalignstoacarbonmitigationhierarchy,coveringpriorityareasforcarbonreductionacrossouroperationalfootprintfirst,followedbyvaluechainemissions.Concurrently,wewillcontinuetoempowerpositivechangetoenablecarbonavoidanceandremovalacrossourregion,withaninclusiveall-of-societyapproachtowardscombatingclimatechangeandsocialchallengesleveragingdigitalconnectivityandmodernisationaskeyenablersforthischange.Thisapproachwillenableustoengageoncurrentandfuturesolutionstofocusonandcollaborativelyformpartnershipstowardsmeetingtheglobalclimateactionagenda.Axiataiscommittedtoachievingnetzerocarbonemissionsnolaterthan2050andtoreachhalfwayby2030withanear-termtargettoreduceoperationalcarbonemissionsby45%froma2020baseline.Casestudy:AxiataWewillcontinuetoempowerpositivechangetoenablecarbonavoidanceandremovalacrossourregion,withaninclusiveall-of-societyapproachtowardscombatingclimatechangeandsocialchallenges10MobileNetZeroNetZeroAmbitionAdvancingtozeroNetzerocarbonroadmapOurnetzerocarbonpathwaytoreachourgoalencompassesathree-objectivestrategy,includingcarbonemissionsreductionandcarbonemissionsavoidanceandremoval.NETZEROBY2050Target:Reduceouroperationalnetworkemissions(Scope1and2)by45%froma2020baselineby2030Approach:•Reducenetworkenergyconsumptionbyenhancingenergyefficiency•Increasenetworkrenewableenergyconsumptionfromself-generationorpurchasedelectricityTarget:Reducevaluechainemissions(Scope3)fromourindirectlycontrolledsourcesApproach:•Contributetopositiveclimateimpactacrossourvaluechain•Includetrackingoursuppliers’operationalcarbonemissions(asourmainfocus)asweprogressTarget:ContributetopositiveclimateactionthroughcarbonremovalandenablingavoidancethroughtechnologyanddigitisationApproach:•Removecarbonemissionsthroughnaturalortechnologicalsolutions•ContributetodecarbonisationsolutionsbyenablingeffortsacrosssocietyAcceleratedecarbonisationofournetworkoperationsAcceleratetransformationofourvaluechainDeliveraninclusiveclimateagenda202020302050Netzero45%reduction2020baselineCarbonemissions(tonnesCO2e)By2023,ourtargetswillbeSBTiverifiedNetemissionsProjectedbusinessasusualScale-upcarbonremovalAlignstoa1.5°CwarminglimitRemoveresidualemissions11MobileNetZeroNetZeroAmbition1xxx2xxx3xxxx4xxxClimateActionTaskforce2MobileNetZeroClimateActionTaskforce12Progresstowardsnetzerohasbeenstrengthenedandacceleratedthroughcollaborationbetweenoperatorsacrossthesector.Toprovideaforumforthiscollaboration,theGSMAcreatedaClimateActionTaskforcein2019.Thetaskforcehasgrownrapidlyoverthelastthreeyearsandnowhas53members,withnetworksinmostcountriesaroundtheworld.Thetaskforcehasfourmainpurposes:•Topromoteandencourageleadershiponclimateactiontomovetheindustrytowardsnetzerocarbonemissionsby2050.•Toagreeclimatepolicyframeworksandadvocacyengagementtogainsupportfromgovernmentsandotherstakeholdersforafairandequitablenetzerotransition.•Tosharebestpracticesonclimateactionsooperatorssupporteachothertoraisetheirambition.•Tocreatethoughtleadershipandresearchonhowmobiletechnologiessupportclimatemitigationandadaptation.FullcolourversioninsolidcolourFullcolourversioningradientcolourSinglecolourversionMonotoneversionFullcolourversioninsolidcolourFullcolourversioningradientcolourSinglecolourversionMonotoneversionThroughknowledge-sharingandindustrycollaboration,theClimateActionTaskforcesupportsoperatorson:•Improvingenergyefficiencyinnetworksandbuildings•Increasingaccessto,anduseof,renewableelectricity•Engagingwithmobileindustrysuppliersonclimateaction•Improvingtheenvironmentalsustainabilityofmobiledevicesandequipment•Adaptinginfrastructureandmanagingextremeweathereventsinarapidlychangingclimate•Usingmobileconnectivitytoreducecarbonemissionsthroughsmarttechnologies.TheClimateActionTaskforcewelcomesnewmobilenetworkoperatormembers.PleasecontacttheGSMAifyouwouldliketojoinatbetterfuture@gsma.com.13MobileNetZeroClimateActionTaskforceUnderstandingclimaterisksandopportunities314MobileNetZeroUnderstandingclimaterisksandopportunitiesComparedto2020,scoresforoperatorsimprovedsignificantlyin2021(seeFigure3).Thenumberofconnectionsprovidedbyoperatorsinthelowestcategorydroppedfrom1.4billionto163millioninjustoneyear.Meanwhile,2.7billionconnectionswereprovidedbyAorA-operatorsin2021.Theseoperatorshavedemonstratedbestpracticesassociatedwithenvironmentalleadershipandhavesetambitiousandmeaningfultargets.15MobileNetZeroUnderstandingclimaterisksandopportunitiesFigure3Numberofconnectionsbycarbondisclosurescorecategoryin2020and2021Source:CDPSinceitwasfoundedin2000astheCarbonDisclosureProject(CDP),theCDPhascreatedaglobalreportingsystemforgreenhousegasemissionsandthedetailingofclimaterisksandopportunities.AsofApril2022,morethan13,000companies,cities,statesandregionsdisclosetheircarbonemissionseachyeartotheCDP.By2021,60mobileoperatorsaccountingfor66%ofglobalmobileconnectionsdisclosedtheirclimateimpact,risksandopportunitiestotheCDP–anincreaseof266millionconnectionscomparedto2020.Notonlyaremoremobileoperatorsdisclosing,butthosethatdodiscloseareprovidingmoreinformation,leadingtosignificantlyhigherscores.Byscoringmobileoperators,theCDPaimstoincentiviseandguidethemonajourneythroughdisclosuretowardsbecomingleadersinenvironmentaltransparencyandaction.Therearefourmainscorecategories:1Leadership(A/A-):implementingcurrentbestpractices2Management(B/B-):takingcoordinatedactiononclimateissues3Awareness(C/C-):knowledgeofimpactson,andof,climateissues4Disclosure(D/D-):transparentaboutclimateissues.ThejourneytoleadershipinenvironmentaltransparencyInFebruary2019,theGSMABoard(comprisingofmembersfromthelargestmobilenetworkoperatorsintheworld)setamilestoneambitiontotransformthemobileindustrytoreachnetzerocarbonemissionsby2050atthelatest.Despitemobileoperatorsbeingattheforefrontofnetzeroambitionsandmostdisclosingtheirclimateimpacts,asignificantpartoftheecosystemcurrentlydoesnotreportitsimpact.Oftotalglobalconnections,2.8billion(34%)arecurrentlyprovidedbymobileoperatorsthatdonotdisclosetheirclimateimpact.Carbondisclosurescores:2021versus20203.02.52.01.51.00.50.0BillionsA/A-B/B-C/C-D/D-20202021TheunreportedFigure4Uncoveringtheunreported:countrieswithoperatorsthatdonotdisclosetheirclimateimpactSource:CDPandoperatorwebsitesAlreadydisclosedIndiaIndonesiaVietnamPakistanIranRussianFederationNigeriaKenyaEthiopiaMyanmarAlgeriaFranceThailandBangladeshOtherpartsofLatinAmericaOtherpartsofEuropeOtherpartsofAsiaOtherpartsofAfrica05%Whileoperatorsfrommoredevelopedcountriesarelikelytohavehigherlevelsofdisclosure,lessdevelopedcountriesinAsiaandAfricahavethestrongestrepresentationinthelistofthosethatdonotdisclose.OperatorsfromIndia,Indonesia,Vietnam,PakistanandIranleadthelistintermsofnumberofconnections.Thisislikelyduetoacombinationoffactorssuchasalackofresources,suitablecapabilitiesandamorechallengingoperatingenvironment,amongothers.Theindustrycan’tmanagewhatitdoesn’tmeasure.Tocarryoutfull,globalandaccurateanalysisandprovideactionablerecommendationsforalloperators,datafromtheunreportedcountriesisrequired.Therehasbeensignificantprogressrecently,butthereisstillroomformore.Tofullyunderstandtheemissionsofthemobileindustry,harmonisedandubiquitousclimateimpactdisclosureisessential.10%66%4%4%2%2%1%1%1%1%1%1%1%1%1%0.5%2%2%5%5%16MobileNetZeroUnderstandingclimaterisksandopportunities17AtZain,webelieveindisclosingourclimateactiontoourstakeholdersasproofoftransparency,commitmentandseriousnessaboutaddressingclimatechange.AcomprehensivedisclosureprocesssuchastheCDPquestionnairechallengedourapproachtotacklingclimatechangeduringourfirstpublicsubmissionin2020,resultinginZainattainingaBscore.Whilethisscoretoldusthatthecompanyismovingintherightdirection,italsohighlightedsomegapsspanningclimate-relatedopportunities,theuseofscenariosanalysis,thetargetsandtheemissionsscopestosupplychainmanagement.Toensurethatwebuildonthefindingsofthe2020CDPreport,Zaindecidedtobuildanactionplantoimprovethecompany’sclimateactiondisclosureprocess.Ourplanincludedthelistofallinitiatives,processesandcommitteestobeimplementedforanalignmentwiththebestavailablepracticesforaddressingclimatechange.MobileNetZeroUnderstandingclimaterisksandopportunities17171717Casestudy:ZainIncludedEnergyEfficiencyinouroperationalstrategyFurtherengagedwithoursuppliersandpartnersonclimate-relatedissuesClimateActionCommittee(CAC)providingitsBoardofDirectorswithanoversightonclimate-relatedissuesExpandedourScope3emissionsfrom2-7categoriesRevisitedclimatechangescenarioanalysisprocessandadditionalclimatechange-relatedopportunitiesCreatedaTaskForcemadeofstakeholdersfromallconcerneddepartmentsforaweeklytrackingofourprogresstowardsclosingalloftheidentifiedgaps17ClosingthegapsidentifiedbytheCDPreporthelpedZainimproveitsclimateactionduetoimprovedboard-leveloversightofclimate-relatedissuesfacedbytheorganisation.Theinclusionofallofthescopesintheemissionsinventoryprocessincreasedthefieldofourmitigationeffortsthroughanengagementwithallofoursuppliersandpartnersandtheimplementationofnewclimate-relatedopportunities.Byadjustingourprocesses,structuresandguidelinestoclosethe2020CDPreportgaps,aswellasexecutingmultipleinitiativesacrossouroperations,weincreasedour2021scorefromBtoA-andwearenowworkingtofurtherimproveourclimateactiontoachieveanA-gradeinthenextdisclosureaswelltosolidifyourclimateactionjourney.Carbonemissionsoftheindustry418MobileNetZeroCarbonemissionsoftheindustryMeasurementsandmethodologiesAnincreasingnumberofoperatorshavesetambitioustargetstoachievenetzerocarbonemissions,butwhataretheemissionsofoperatorsnow,in2022?Differentmethodologiescanbeadoptedtomeasureemissionsfromoperatorsandtheirsupplychains.Themostwidespreadapproachistousescopestodefinegreenhousegas(GHG)emissions.Scopes1,2and3categorisethekindsofcarbonemissionsoperatorscreateintheirownoperationsandinthewidervaluechain:•Scope1—Directemissionsfromanoperator,suchasfromrunningitsfleetfornetworkmaintenanceandusingdieseltooperatebasestationsinhard-to-reachareas.•Scope2—Indirectemissions,suchastheelectricityuseorenergyboughtforheatingandcoolingbuildings,producedonitsbehalf.•Scope3—Emissionsthatarenotassociatedwiththeoperatoritselfbutwhichtheorganisationisindirectlyresponsiblefor,upanddownitsvaluechain.Forexample,emissionsrelatedtothebuyingofnetworkequipmentandthoseproducedbyitssuppliers,aswellasemissionsfromoperatorserviceswhensubscribersandenterprisesmakeuseofthem.Scope3isoftenthelargestintermsofemissionsandthehardesttomeasureaccurately.Operators’Scope1emissionsaremarginalcomparedtotheirScope2andScope3emissions.In2021,ayear’smobileconnectionisresponsiblefor59kgofCO2emissionsonaverage,whileconsumingfouraverage-sizedbeefsteaks(1kg)isresponsiblefor99kgofCO2emissions.2Differentmethodologiescanbeadoptedtomeasureemissionsfromoperatorsandtheirsupplychains.Themostwidespreadapproachistousescopestodefinegreenhousegas(GHG)emissions2EnvironmentalImpactsofFoodProduction,OurWorldInData.org,202019MobileNetZeroCarbonemissionsoftheindustry19Figure5AnnualgreenhousegasemissionsofdifferentactivitiesSource:OurWorldInData.org,EITFoodEmissionsinthecontextofdatatraffic1,8001,6001,4001,2001,0008006004002000CarbonfootprintemissioninkgA300gbeefsteakperweekOnereturnflightfromLondontoBerlinDriving50kminapetrolcarperweekYearlymobileconnection1,560500gpotatoesperweekThreelocalbottledbeersfromashopperweek60036475.46859Tomeasurealloftheemissionsassociatedwiththeoperationofacompany,Scope3emissionsshouldbeconsidered.DatagatheringandprocessingaremorecomplexanddiversethanwithScope1,orScope1and2combined.TheoverallmethodologyforScope3iscurrentlyunclear.Workisrequiredonstandards,reportingandcoordinationacrosssupplychains.Only44%ofoperatorsbyconnectionsprovidedreliableScope3datain2021.WiththeadditionofScope3emissions,ahighermarginoferrorshouldbefactoredintoestimates.Thisisnotjustbecauseofthesmallersampleofdata,butalsobecauseofthemethodologicalconstraintsandthelackofScope3accountingharmonisation,whichincreasethepotentialmarginoferror.Whileoperatorsonaverageincreasedtheircarbonemissionsby2%globallyduring2021,manyhavesucceededincontrollingorevenreducingtheiremissions.Despitegrowingdatatrafficrequirementsandongoing5Gtransformation,anumberofoperatorsincludingAT&T,Verizon,TelenorandKDDIsucceededinreducingtheircarbonemissionsbetween2020and2021.Fewindustriesaresimilartomobileinthisrespect;operators’primaryoutput,datatraffic,isincreasingbydouble-digitgrowthrateseachyear,butemissionslevelsarebeingcontrolledandkeptalmostflat.Thisisduetotwomainfactors;firstly,newnetworkssuchas5Garemoreenergy-efficientatmovingdata,andsecondly,operatorsareinvestinginlowercarbonenergytopowernetworks,suchasonsiteandmarket-basedrenewableelectricity.20MobileNetZeroCarbonemissionsoftheindustryEstimatingoperators’carbonemissionsOperatorCO2emissionsin2021Source:CDP,GSMAIntelligenceFigure6Growthindatatraffic,carbonemissionsandelectricity,2021versus2020Source:CDP,GSMAIntelligence,Ericsson35%30%25%20%15%10%5%0%TotaldatatrafficElectricityCarbonemission(Scope1+2)perconnection31%5%2%DespitethechallengesassociatedwithmeasuringScope3emissions,GSMAIntelligencehasestimatedthatoperatorsareresponsibleforaround490milliontonnesofcarbondioxideequivalent(MtCO2e)peryear,orapproximately1%oftotalglobalcarbonemissionsin2021.3ThisfigureisbasedoncarbonemissionsdisclosurestotheCDPin2021andGSMAIntelligenceestimates.Ingeneral,Scope1emissionsareabout10%ofScope2emissions,whichareaboutathirdofScope3emissions.Theseratiosvarybetweenoperators,butScope3isalwaysthelargestshare.Unlikestudiesfocusingpurelyonmobilenetworks,theabovedataincludesmobileoperators’entireoperations,includingtheirfixednetworksanddatacentres.Measuringjustmobilenetworkswillbeincreasinglychallengingasoperatorsembracefixed-mobileconvergence.Operatorsarecurrentlyinatransitionphase,withdistinctionsbetweenfixedandmobilenetworksfadingasservicesuseacombinationoffixedbroadbandandlocalaccesswirelesstechnologies.Tohelpunderstandandreducesupplieremissions,theGSMAisworkingwiththeClimateActionTaskforceandsupplierassociations,suchastheJointAuditCooperation,toencouragemoresupplierstodisclosetheirenvironmentalimpacttotheCDPandsetscience-basedtargetsforcarbonreduction.Theambitionistoacceleratethelow-carbontransitionacrossthesectorwithfurthersignificantinvestmentsinrenewables,combinedwithengagementwithsupplierstodrivecirculareconomyprinciples.Thiswillreduceresourceextractionaswellaslifecycleenergyandcarbonemissions.72%26%2%Scope1Scope2Scope3Figure73‘GlobalCO2emissionsreboundedtotheirhighestlevelinhistoryin2021’,IEA,March202221MobileNetZeroCarbonemissionsoftheindustry22TheKDDIGrouphasbeendeployingvariouskindsofbusinesses,includingfinanceandenergy.Amongthosebusinessactivities,telecommunicationisalwaysatthecentre.Asawholegroup,wereleasedourpolicyinpromotingsustainablebusinessmanagementtorealisebothsustainabledevelopmentofsocietyandgrowth.AstheKDDIGroupaimstoachievecarbonneutralityby2050andactivelyworkoncountermeasurestoclimatechange,itsScienceBasedTargetsinitiative(SBTi)goalwasapprovedinFebruary2022.InordertofulfiltheSBTiprinciples,wecalculatedourGHGemissionsfrom110groupcompanies,whichincludeseveralsmall-scaleones.Duringtheprocess,weencounteredeachcompany’sexistingissuesanddifferencesinprogresstowardssustainablebusinessmanagement.Afterdeepdiscussion,closecommunication222222Casestudy:KDDIandinvolvementofourtopmanagement,ledbytheprojectteammembersattheKDDIheadquarters,wemutuallyunderstoodoureffortsandcompletedthetargetsetting.TheKDDIGroupitselfplanstoaccelerateitscarbonneutralitygoalfromFY2050toFY2030,andourdatacentresplantofurtheracceleratetheircarbonneutralitybyFY2026.WewillreduceCO2emissionsusingmeasurestosaveenergyandswitchovertorenewableenergyatourbasestations,buildingsanddatacentres.Wearegoingtonewlyestablishourgrouptostrengthenourenergybusinessandfocusoureffortsondecarbonisingbusinesses,includingrenewablepowergeneration.TheKDDIGroupkeeptacklingourchallengeofrealisingcarbonneutralityandpromotingsustainablebusinessmanagement.Afterdeepdiscussion,closecommunicationandinvolvementofourtopmanagement,ledbytheprojectteammembersattheKDDIheadquarters,wemutuallyunderstoodoureffortsandcompletedthetargetsetting22MobileNetZeroCarbonemissionsoftheindustryEnergyefficiencyandmobileconnectivity523MobileNetZeroEnergyefficiencyandmobileconnectivityEnergyefficiencyhasextendedbeyondcorporatesocialresponsibilitytobecomeacorestrategicpriorityacrossthetelecomsecosystem.Majornetworkandequipmentvendorshavebeenvocalaboutimprovementstonetworksolutions,recognisingthatmoreefficientequipmentisamajorpurchasingcriterionamongoperatorsforcostandreputationalreasons.Networksarepartofthebroadernarrativeofhowtoreachnetzero,whichalsoincludessubstantivediscussionsonreducingtheenvironmentalimpactofdevicesandtransitioningtorenewableenergysupplies.Thisrepresentsthestartofanewwayofdoingbusinessonthepathto2050.EnergyefficiencygrowinginimportanceatindustryawardsEnergyefficiencyandsustainabilityfeaturedheavilyinthe2022GlobalMobileAwards(GLOMOs).WinningacategoryorbeingshortlistedforaGLOMObringsprofessionalrecognitionandinternationalmediaattention.Customers,mobileoperatorsandequipmentvendorscloselyfollowtheoutcomeofthejudgingprocess.Thegrowingimportanceofenergyefficiencywasparticularlynoticeableintheshortlistsandwinnersannouncedforthe2022awards.AswellasanawardforBestMobileInnovationforClimateAction,solutionsprovidingenergyefficiencyperformedparticularlywellintheinfrastructure,devicesandindustrycategories.Innovationsincludedthefollowing:TheGreen5GProjectfromChinaMobileandHuawei(WinnerofBestMobileInnovationforClimateAction)Ericsson’sultra-lightweightMassiveMIMO6419platformwithportfolio-wideenergysavingsTelefónica’sGreenRadio–anintelligentsoftwaresolutionforenergyoptimisationZTE’sGreenNativeinitiativetoreduceend-to-endICTcarbonemissionsKT’sNetworkPowerSavingTechnology24MobileNetZeroEnergyefficiencyandmobileconnectivity9%13%5%Theremainingdistributionofconsumptioncomprises...Whiledatacentresappeartobealowcontributor,itonlyreflectsthoseowneddirectlybytheoperators.datacentrescoreoperationsIn2021,GSMAIntelligencereleasedanenergyefficiencybenchmarkingserviceformobilenetworks.Theuniqueanalyticalapproachallowsoperatorstocomparetheenergyefficiencyoftheirnetworksagainstpeersonalike-for-likebasis.Thetoolusesreal-worlddatainputsfromoperatorsonafullyanonymisedbasistoquantifynetworkenergyconsumption,efficiencylevelsandfuelsources.Sevenoperatorsparticipatedintheproject:BT,DeutscheTelekom,Etisalat,Globe,KPN,SmartandVodafone.Theoperatorsprovideddatafrom31networksin28countries.GSMAIntelligence‘smodellingandanalysisprovidedasnapshotofoperators’energyconsumption:Benchmarkingenergyefficiency2525Dieselusageismorecommoninregionswheregridelectricityislessprevalent–SoutheastAsia,theMiddleEastandSub-SaharanAfrica.However,eveninEurope,itaccountsfor1–6%ofconsumptionofthetotalenergyconsumptionwassuppliedbyrenewablesfromconventionalsupply46%43%11%on-siteviadieselgenerators73%Providingcoverageacrossthousandsofsquarekilometres,transformingenergyintoradiowavesandreceivingandprocessingincomingsignalsisstillanenergy-intensivearea.ThemajorityofenergyisconsumedintheRadioAccessNetwork(RAN)25MobileNetZeroEnergyefficiencyandmobileconnectivityAlthough5Goffersasignificantenergy-efficiencyimprovementpergigabytewhencomparedtoprevioustechnologies,new5GusecasesandtheadoptionofmmWavewillrequiremoresitesandantennas.Thisleadstotheprospectofamoreefficientnetworkthatcouldparadoxicallyresultinhigheremissionsintheabsenceofactiveintervention.5Gisthefirstwirelesstechnologywhereenergyefficiencyhasbeenconsideredduringstandardisation.5GenablingfurtherenergyefficiencyEachcellulartechnologyhasbecomemoreenergy-efficientsince2Gasthetransmissiontechnologyhasimproved.Ontopofthis,anumberofenergy-savingmeasuresarebuiltintothe5Gstandard,suchassleeporshutdownfunctionsinthetransceiverandalow-energyschedulersolution.5Ghasbeendesignedwithnetworkenergyefficiencyinmind,with5G’sspecificationofferingthepotentialfora90%reductioninenergyusetotransfereachbitofdatacomparedtopreviouswirelesstechnologies.44‘Nokiaconfirms5Gas90percentmoreenergy-efficient’,Nokia,December202026MobileNetZeroEnergyefficiencyandmobileconnectivity27MobileNetZeroEnergyefficiencyandmobileconnectivity2727CommissionedaphotovoltaicassetviapartnershipwithAmpEnergyinUttarPradeshdatacentres:FordatacentresinthestateofUttarPradesh,AirtelhaspartneredwithAmpEnergyviaacquiringa26%equitystakeinoneoftheSpecialPurposeVehiclesformedbyAmpEnergyandcommissionedphotovoltaicassetwithaninstalledcapacityof28MW.SourcedelectricityfromahydropowerplantforDelhidatacentres:AirtelhasnegotiatedandsignedaPowerPurchaseAgreementforsourcingtheelectricityfroma9MWhydropowerplanttoitsdatacentresinDelhi.LeveragingwindandhydrorenewableenergyforKarnatakaandTamilNadudatacentres:Thegroupreliesonsourcing~6.5MWofrenewableenergyfromwindandhydroassetsinKarnatakaandTamilNaduaroundtheclock.Nxtrahasacquiredsomestakesinthepowergeneratingcompaniestosourcethispower.PartneredwithAvaadaEnergytosourcesolarpower:AirtelhasalsojoinedwithAvaadaEnergy,theleadingdeveloperofrenewableenergy,forsourcingsolarpowerfrom65MWofphotovoltaicassets.BhartiAirtel(‘Airtel’)withitssubsidiaryNxtraDataLimited(‘Nxtra’)currentlyoperates10largeand120edgedatacentresacrossIndia.WearecommittedtohelpingtomeetthegoalsoftheParisAccordsandhaveidentified‘ClimateChange,EnergyEfficiencyandEmissionReduction’ascriticalmaterialissues.Exponentialgrowthandchangeintheusagepatternofinternetusershasincreasedthedemandofpowerconsumptionindatacentres.Thecreationofsustainabledatacentreshasbecomeessentialinanenvironmentalsenseandabusinesssense.However,therenewableenergymarketforC&IconsumersinIndiahasbecomeverycompetitiveandonboardingiswrestlingwithmanychallengesatthestatelevel,includingseparateandcomplexregulatorypolicies,lengthyapprovalprocesses,uncertaintyoverpoliciesandsoon.ThechallengeforAirtelwastomaintainarenewableenergyshareintheenergymixofdatacentreswiththeincreasedpowerconsumptiondemandandimprovementsinenergyefficiencytoreduceenergyusage.Toovercomethesechallenges,Airtelhaschosenstate-levelstrategiesinIndiaforreducingScope2emissionsforitsdatacentres.Casestudy:AirtelAllofthesecontractsarelong-termsoneswithlong-termcommitmentsbyprojectdevelopersonrenewableenergysupplyatafixedgenerationpricetoAirtel.Airtelhasdecidedtoinstallon-sitecaptivegeneratingplantsatdatacentrefacilitiesinthestateswherepoliciesarenotfavourableforrenewableenergysourcing.Overthelastfewyears,Airtelhasinstalled28rooftopsolarphotovoltaicplantsatdatacentrelocations,withthetotalinstalledcapacitystandingat1.57MW.AirtelhasalsoexploredtheoptionofredemptionofI-RECcertificatesagainsttheelectricityconsumptionatdatacentrefacilitiestoreinforceitsrenewableenergysourcingprogramme.Itpurchased14,752certificatesinFY2020-21,representing14,752MWhofelectricitygeneratedfromrenewableenergysources.Airtelconstantlyaimstoensureoptimalenergyutilisationacrosstheentirelifecycleofitsdatacentres,fromdesigntooperations.AirtelidentifiedPUE(PowerUsageEffectiveness)asthemeasuretochecktheenergyeffectivenessforourdatacentres,andcontinualimprovementinAveragePUEisvisibleacrossthelastthreeyears.Airtelhasalsomadesubstantialinvestmentsinenergy-efficientproductsandservicesinordertopromoteandadoptnewtechnologiesandservicesinoperationsaspartofenergyconservationmeasurestoimproveenergyefficiency.Exponentialgrowthandchangeintheusagepatternofinternetusershasincreasedthedemandofpowerconsumptionindatacentres.Thecreationofsustainabledatacentreshasbecomeessentialinanenvironmentalsenseandabusinesssense28MobileNetZeroEnergyefficiencyandmobileconnectivityTransitioningtorenewableelectricity629MobileNetZeroTransitioningtorenewableelectricityTheestimatedelectricityconsumptionoftheglobaloperatorcommunityin2021wasaround293millionMWh–a5%increaseon2020.Globaldatatrafficincreasedby31%overthesame12-monthperiod.Whilethisisasignificantimprovementinefficiency,operatorscannotresteasy.Toreducetheirenvironmentalfootprintdrivenbyenergyconsumption,theycanactintwoways:improvetheirenergyefficiencyandincreasetheiruseofrenewables.Whereavailable,theuseofrenewablesourcesisaquickandeffectivewaytoreduceenvironmentalimpact.Pushingrenewablestothetopofthelistaretheirimpactoncarbonreduction,littleriskofqualityofservicebeingimpactedandtherelativelymarginalCAPEXrequirements.However,theuseofrenewablesdependsonfactorswhichareoftenbeyondoperators’control,suchasthelocalclimate,country-levelregulatoryenvironment,gridavailabilityandthepriceofrenewableenergyfromthegrid.Thoughthereareregionaldifferencesintheuseofrenewables,theshiftfromfossilfuelsandnon-renewableelectricitytorenewablesisunderwayglobally.Europeanoperatorsareattheforefrontofrenewablesusage,astheycanaccessrenewableenergymoreeasilyviathegrid.Manyhavesetambitiousgoals,whilesomealreadyhavenetworkoperationsthatare100%poweredbyelectricityfromrenewablesources.GrowinguseofrenewablesFigure8MobileoperatorelectricitysourcingSource:CDP14%<1%GeneratedrenewablePurchasedrenewableNon-renewable2020202182%18%<1%86%Theuseofrenewablesdependsonfactorswhichareoftenbeyondoperators’control,suchasthelocalclimate,country-levelregulatoryenvironment,gridavailabilityandthepriceofrenewableenergyfromthegrid30MobileNetZeroTransitioningtorenewableelectricity30T-MobileUSProximus2021DeutscheTelekom2025OrangeVerizonTIMGSMAIntelligence’slatestreport5onenergybenchmarkingshowsthatrenewablesaremostlypurchasedviacertifiedenergysuppliers.Whilesolarisbecomingmoreprice-competitive,renewableelectricitygenerationisstilloutsideoperators’comfortzones.Directlyproducedelectricityaccountsforaminority(lessthan1%)oftotalenergyconsumption.Themostcommonoptionistopurchaserenewableelectricitythroughthetraditionalgrid,fromarenewablesource.Operatorscanpurchasecertifiedrenewableelectricityordevelopapowerpurchaseagreement(PPA)withalocalenergyvendor.PPAsarelong-termcontractstobuyrenewableenergyinagreedvolumesandatpricesthatmeettheneedsofthegeneratorandtheoperator.Fromanenvironmentalstandpoint,PPAsarepreferableastheydirectlyincreasetherenewableelectricitysupplyinthemarketandtheshareofrenewableelectricity.Despitecertifiedrenewableelectricitynothavingadirect,short-termimpactontheenvironment,growingdemandforitisincreasingthepriceofthisgreenerformofelectricityandencouragingcompaniestoinvestandproducerenewableelectricityoverthelongerterm.Accesstorenewableelectricityisvitalformobilenetworkoperatorstoreducethecarbonemissionsoftheiroperations.ThisiswhytheGSMAcallsongovernmentstoconsidersuitableenergymarketframeworksthatsupportrenewableenergydeploymentandaccessforoperatorsthatneedtoconnectmanysites.Figure9TimelineformobileoperatorswithrenewableenergytargetsSource:GSMAandoperatorwebsitesAccessingrenewableelectricity204020202010Swisscom2020Telia2030TelstraTelefónica2013KPNBT50%renewableenergy100%renewableenergy2030Softbank2025TPGTelecom2050SKTelecom5‘Goinggreen:benchmarkingtheenergyefficiencyofmobile’,GSMAIntelligence,2021205020302010Vodafone31MobileNetZeroTransitioningtorenewableelectricity3132Climatechangehasbecomethesinglegreatestthreattomodernlifeandreportsareclearthatadramaticshiftfromfossilfuelstorenewablesisthemostimpactfulsolutiontoreduceemissionsandpreventirreversibledamage.In2020,AméricaMóvil,operatingundertheClarobrandinLatinAmerica,adoptedscience-basedtargets(SBT)thatwouldrequiremobilenetworkoperatorstoreduceemissionsbyatleast45%by2030.MobileNetZeroTransitioningtorenewableelectricity3232ProjectPalominoIn2021,ClaroDominicanRepublic,asubsidiaryofAméricaMóvil,partneredwithCabanSystemstosuccessfullydeveloparenewableenergypilotthatsoughttoreducetheuseofdieselfuelusingEnergy-as-a-Service(EaaS).EaaSallowscustomerstogeneraterenewableenergyon-siteandoffsetgridcosts.CabanSystemsgeneratedcleanenergyon-siteonbehalfofClaroDominicanRepublic.ChallengesClaroDominicanRepublicselectedtheirPalominositeforthepilotbecauseoftheremoteandchallengingnatureofthelocation.PalominoislocatedbesidetheJoséArmandoBermúdezNationalPark,anationalforestsurroundedbythickmountainousterrain.Priortothepilot,thesitehadbeenpoweredwithadieselgeneratorandwasinaccessibletoatraditionalelectricgrid.Casestudy:Claro32333333TheSolutionCabanSystemsdeployedaturnkeyenergyinfrastructuresolution,includinglithium-ionbatteries,remoteintelligentcontrollersandsolargeneration,allmonitoredinreal-timewithcloud-basedsoftware.Theimplementationofcloud-basedsoftwareenabledClarototrackandreporttheperformanceofenergysystems,includingsite-relatedenergygeneration,emissionsreductionsandcostsavings.ThissignificantlysupportscustomerswithachievingandreportingESGtargets.TheResultsTheimplementationofEaaSenabledClarotomodernisetheentiresiteoperationswithzeroupfrontcostsandenabledtheoperatortoimmediatelysaveonOPEXandemissionswhileincreasingreliabilityfortheenduser.Claroreportedanannualfuelsavingsof98.5%andanannualreductionof5,162dieselgallonsperyear.ShiftingtoEaaSandrenewableenergy,Clarowasabletoalignbusinessobjectives,customersatisfactionandESGtargets.33Insecuringanon-siterenewableenergysolution,Clarowasabletosuccessfullyalignbusinessobjectiveswithcustomersatisfactiontoachieveitsgoalsandcontributetoabetterworld.MobileNetZeroTransitioningtorenewableelectricityMobileindustrysupplychain734MobileNetZeroMobileindustrysupplychainBasedonmobileindustryanalysis,thebiggestsourceofemissionsforoperatorsisnotfromtheirelectricityconsumption,butfromemissionsarisingfromtheindustry’ssupplychain.Equipmentanddevicemanufacturingandtheirsupplychainsareresponsibleforsignificantlevelsofemissions.Low-carbonproductlifecyclemanagementisessentialtothetelecomsindustrybecausenetworkequipmentandrapidimprovementsinwirelessnetworkinfrastructurerequiresignificantphysicalupgrades.New,low-carbonproductsenableacompleterethinkoflifecycles.Vendorsneedtoimplementchangesfromthebeginning,attheproductdesignstage,andhelpcustomerswiththedecommissioninganddisassemblyofnetworkequipment,aswellasreusingelementsoflegacyequipment.Thisyear,theGSMAhasworkedwithoperatorstounderstandthechallengesofmovingtowardsamorecirculareconomyofnetworkequipment.Recommendationsthatarebeingactionedincludecreatingcommonmetricstomeasuretheenvironmentalimpact,creatingandinterconnectingmarketplacesforsecond-handequipment,andraisingawarenessofthebenefitsofamorecirculareconomyacrosstheindustry.TheGSMAalsodevelopedagoodpracticetargetwithoperatorstohelpfocusefforts.Thisstatesthattheoperatorsupportsmovingtoamorecirculareconomyfornetworkequipmentandsetsadatefor100%oftheirnetworkequipmentbeingresponsiblyresold,reused,remanufacturedorrecycled.Non-recyclablematerialswillbedisposedofsecurely.Sofar,TelefonicaandTele2havecommittedtoachievethisby2025andSmartCommunicationsby2030.Sustainablenetworkequipment35MobileNetZeroMobileindustrysupplychainFigure10Futurenetworkequipmentlifecyclewithalow-carbonfootprintSource:GSMAIntelligenceFuturenetworklifecyclewithalow-carbonfootprintMaterialSelection•Recyclablematerials•RenewablecompositematerialsTransportation•Low-carbontransport•TransportoptimisationDesign•Easytore-usecomponents•Modulardesign•Lighterequipmentwithlowerwindload•Simplicity,highintergrationProduction•Optimisation•Compostableorrenewablepackaging•Interoperabilitywithfuturetechnologies•Waste-minimalisationduringmanufacturingOperation•Theuseofrenewableenergy•ProlongingservicelifeDecommission•Recycling•Disassembly36MobileNetZeroMobileindustrysupplychainVirtualisationeffortsaroundsoftware-definednetworkingoverthelastdecadehavehelpedcentralisenetworkintelligenceandcontrolatthesoftwarelayer.Thishelpedtostandardisetheunderlyinghardware,creatinganopportunitytoimplementnetworkupdateswithoutphysicallytouchingthelegacyhardware.Theopportunityforinfrastructurevendorstocompeteoninnovationinhardwarefeatureshasconsequentlybecomelessrelevantbecausesoftwarefeaturesallowingcontrolandmodularupgradeshavebecomethedefault.Fromasustainabilityperspective,thereareclearbenefits.Olderphysicalequipmentdoesnotneedtobedisposedofifitcanbeupgradedviasoftware.Thedeclineofhardware-centricinnovationreducese-wasteandtheneedforphysicalactivitiessuchassitevisits,logistics,shipping,serviceandmaintenance.Lessphysicalactivitylimitstheclimateimpactoffuturenetworkupdatesandnewfeatures.Inaddition,virtualisationalsoofferscheaper,morefrequentandcustomisedinnovation,reducingmanufacturingandtransportemissionsassociatedwiththesupplychain.TheimpactofvirtualisationVendorlandscapeFigure11SBTcommitmentsofmostcommonlyusedsupplierstomobilenetworkoperatorsSource:ScienceBasedTargetsInitiative6AccentureCommittedtoreducingabsoluteScope1,2and3GHGemissionsby11%by2025froma2016baseyear.Nearterm:1.5°Cby2025.Alphabet/GoogleNoSBTcommitment.AmdocsAppleBrightstarCienaCiscoDellEricssonCommittedtoreducingabsoluteScope1and2GHGemissionsby21%by2024froma2019baseyear.Nearterm:1.5°Cby2024.CommittedtoreduceabsolutecombinedScope1,2and3GHGemissionsby62%by2030froma2019baseyear.Nearterm:1.5°Cby2030.NoSBTcommitment.NoSBTcommitment.CommittedtoreducingabsoluteScope1and2GHGemissionsby60%by2022froma2007baseyear.Nearterm:wellbelow2°Cby2022.CommittedtoreducingScope1and2GHGemissionsby50%by2030froma2019baseyear.Nearterm:1.5°Cby2030.CommittedtoreducingabsoluteScope1and2GHGemissionsby35%by2022froma2016baseyear.Nearterm:1.5°Cby2022.FiberhomeNoSBTcommitment.COMPANYSCIENCE-BASEDTARGETS>>CONTINUED6sciencebasedtargets.org/companies-taking-action37MobileNetZeroMobileindustrysupplychainTheGSMAhasbeenparticipatingintheCDPsupply-chainprogrammeonbehalfofthemobileindustrytoencouragekeysupplierstodisclosetheircarbonemissionsandsetscience-basedtargets.Theintentionistoemulatetheimpactofmobileoperators’climateHPHuaweiIBMIngramMicroMicrosoftNECNoSBTcommitment.NoSBTcommitment.Committedtocontinuingtosource100%renewableelectricitythrough2030.AlsocommittedtoreducingScope3GHGemissionsintensityperunitofrevenueby30%by2030froma2017baseyearandtoavoidgrowthinabsoluteScope3emissions.Nearterm:1.5°Cby2030.CommittedtoreducingScope1and2GHGemissionsby60%by2025froma2015baseyear.Nearterm:1.5°Cby2025.NoSBTcommitment.CommittedtoreducingabsoluteScope1and2GHGemissionsby55%by2030froma2017baseyear.Nearterm:1.5°Cby2031.NokiaCommittedtoreducingabsoluteScope1,2and3GHGemissionsby50%by2030froma2019baseyear.Nearterm:1.5°Cby2030.OracleSagemcomNoSBTcommitment.SamsungTataTechData(TDSynnex)TechMahindraWestconZTENearterm:committedNoSBTcommitment.NoSBTcommitment.Nearterm:committedCommittedtoreducingabsoluteScope1and2GHGemissionsby22%by2030and50%by2050froma2016baseyear.Nearterm:2°Cby2030.NoSBTcommitment.NoSBTcommitment.COMPANYSCIENCE-BASEDTARGETS>>CONTINUEDactioncommitment.Thismeansfirstcreatingabetterunderstandingofclimateimpactacrosssuppliers,encouragingtarget-settinginlinewiththenetzeroby2050ambitionandsubsequentlydrivingrapidemissionsreductions.38MobileNetZeroMobileindustrysupplychainAspartofitsvisiontoleadinsustainability,Tele2isclimate-neutralinitsownoperationsandwellonitswaytowardsnetzero.In2021,Tele2metitsobjectiveofa90%reductionofScope1and2greenhousegasemissionscomparedtothe2019baseyear,severalyearsinadvanceoftheoriginaltargetdeadlineof2025.ThereductioninScope1and2emissionswasmainlyaresultofusing100%renewableelectricitythroughoutalloperationsin2021.Remainingemissionswereoffsetusingcarbonremovals,acombinationofafforestationprojectsandthelatestcarbon-captureandstoragetechnologies.BasedonapprovedSBTitargetsandasapartofitsupdatedsustainabilitystrategy,Tele2hasthefurthergoalofachievingzeroScope1and2greenhousegasemissionsby2029andareductioninScope3greenhousegasemissionsof60%persubscriptionby2029,using2019asthebaseyear.Tele2seesnew5Gnetworksandupgraded4Gnetworksascrucialtechnologyinreducingemissions,becausetheyconsumesignificantlyloweramountsofenergyperunitoftransferreddatacomparedtopreviousgenerationsoftechnology,whilealsocateringforanincreasingdemandfordata.Tele2’s5Gnetworkscanalsoenablegreaterefficiencyinawidersense,asmoreandmorepartsofsocietybecomeconnected–trafficsystemsinteractingwithpublictransportsystems,interactingwithcarparksystems,interactingwithGPSsystemsandsoon.5Gnotonlyenablesamoreenergyefficientsociety;itcanalsoreducetrafficjamsandovercrowdedsubways.Tele2hasalsoidentifiedcircularityasakeypartofachievingitsgoalsforsupplychainemissionsreductionsand‘Advancingcirculareconomytocombatclimatechange’isoneoffourfocusareasofTele2’ssustainabilitystrategy.InMarch2022,Tele2wasthefirsttelecommunicationscompanyintheNordicsandBalticstopubliclycommitto100%ofitsnetworkequipmentbeingresponsiblyresold,reused,remanufacturedorrecycledby2025,andnon-recyclablematerialsbeingdisposedofsecurely.Goingforward,Tele2willbeworkingwithitssupplierstoachieveitsaimsandcreatingopportunitiesforitscustomerstochangetheirreuseandrecyclingbehavior.Casestudy:Tele239MobileNetZeroCaseStudiesActingsustainablyisallaboutimplementingcirculareconomypractices.TeliaCompanybelievesintheimportantrolethatcollaborationplaysincreatingsolutionsthatacceleratethetransitiontocircularityandenhancesustainability.Thecirculareconomyisbasedonthreeprinciples:designingoutwasteandpollution,keepingproductsandmaterialsinuse,andregeneratingnaturalsystems.AtTeliaCompany,notonlydoweprovidethebackboneofthedigitalsocietyintheNordicsandBaltics,butwe’realsoembracingsustainabilityattheheartoftheirpurposeandstrategy.TeliaCompanyisproudtopartnerwithTXOtohelptheirbusinessadoptcircularpracticesandachieveincredibleenvironmentalandbusinessresults.TeliaCompanyisworkingtowardsazero-wastegoalbysupportingthecontinualuseofresources.ThismeansadoptingTXO’scirculareconomyservices,whichinclude:Casestudy:TeliaCompanyToprovidelocalsustainability,TXOhasestablishedanoperationalhubinSwedentoserveTeliaCompanyandtheScandinavianregion.“SustainabilityisatthecoreofwhatwedoandpartneringwithTXOhasreallyhelpedusdemonstratewhatbecomingcircularmeansinpractice”saidSimonaVitėnė,TeliaCompany’sBusinessDevelopmentManager.“What’smore,therevenuegeneratedprovidesanincredibleopportunityforustointegratesustainabilityevendeeperintoourbusinessstrategy.”DavidEvans,TXO’sHeadofAssetRecoveryandServices,said,“Welovepartneringwithourcustomerstosupportthecirculareconomyatthesametimeashelpingourclientsminimisetheircarbonfootprintandmaximisefinancialreturnsfromthegreenmarket.AtTXO,we’reheretohelpmakeyoursustainabilitygoalsareality.”De-installingsurplusitemsandsellingthemtootheroperators.TurningtoWEEErecyclingasafinalstepintheprocess.Identifying,testingandrepairingequipmentforinternalreuse.Sourcingandrefurbishingpre-ownedproductsforsparesandnewdeployments.40MobileNetZeroCaseStudiesDigitisationandenablement841MobileNetZeroDigitisationandenablementTheuseofmobileanddigitaltechnologyisakeyenablerofthedecarbonisationtransition.Networkoperators,equipmentvendorsandsupportingecosystempartnersplayakeyroleinthemovetodigitalandlow-carboneconomies.Inresearchconductedattheendof2021,GSMAIntelligenceoutlinedahigh-levelquantificationofdecarbonisationandassociatedstrategiesforfourkeyindustriesthataccountfor80%ofglobalemissions:manufacturing,powerandenergy,transportandbuildings.Theresearchdemonstratestheclear,practicalandbeneficialimpactofusingmobileanddigitaltechnologiesinthelargestandmostrelied-uponindustries.TheimplementationofspecificmobileanddigitaltechnologiescouldresultinsubstantialCO2savingsforeachindustry.Inaggregate,thesavingsenabledbythetechnologiesamounttojustunder40%(equivalentto11gigatonnes)ofthecarbonemissionssavingsthattheseindustrieswillneedtoachieveoverthenextdecade,assuminganendgoalofnetzeroby2050.Toputthisinperspectiveatanindustrylevel:Mobileanddigitaltechnologyhelpingtoacceleratedecarbonisation28millionTheannualglobalCO2savingsfromsmartmanufacturingwouldequatetoround-tripflightsfromLondontoLosAngeles.ThepotentialCO2savingsfromusingsmartmetersinNorthAmericanresidentialpremiseswouldbeenoughtopower180millionpetrol-fuelledcarsfromroadsoverthenext10years.25millionhomes(20%ofhouseholdsintheUS)forayear.Thesavingsfromtheswitchtoelectricvehiclesworldwidewouldequatetoremoving42MobileNetZeroDigitisationandenablementAtthebeginningof2022,theEuropeanCommissionselectedtheGSMA,GlobalEnablingSustainabilityInitiative(GeSI),EuropeanDigitalSMEAlliance,DigitalEuropeandETNOtosupporttheEuropeanGreenDigitalCoalition.TheassociationswillworkwiththeEuropeanGreenDigitalCoalition(EGDC)tomeettheobjectivesoftheEGDCfoundingmembers’declaration.Thedeclarationhasnowbeensignedby76companiesactiveinEurope,comprising31currentEGDCmembersandanadditional45SMEsapplyingformembership.4242Theprojectwilladdressacrucialshortcominginthecurrentlandscape.Itwillprovidescience-basedmethodstoestimatethenetenvironmentalimpactofdigitalsolutions–boththepositivecontribution(e.g.carbonreduction)andthedirectfootprintofagivensolution.Theconsortiumwillengageinextensiveconsultationswithindustryverticals,withafocusonsmartenergy,connectedmobility,energy-efficientbuildsandconstruction,precisionfarmingandsmartmanufacturing.Basedonthemethodsdevelopedtoestimatetheenvironmentalbenefitsofdigitisation,theprojectwillproviderecommendationsforgreendigitaltransformationandpromotewidespreadtake-upbyindustryplayers,includingSMEs.TheEuropeanGreenDigitalCoalitionTheuseofmobileanddigitaltechnologyisakeyenablerofthedecarbonisationtransition.Networkoperators,equipmentvendorsandsupportingecosystempartnersplayakeyroleinthemovetodigitalandlow-carboneconomies43MobileNetZeroDigitisationandenablementMobileNetZeroDigitisationandenablementAfricahasapopulationof1.2billionpeopleand,in2017,600millionAfricansstilldidnothaveaccesstoelectricity(AfricaProgressPanel,2017).Insub-SaharanAfricainparticular,70%ofthepopulationhavenoaccesstotheelectricitynetworkandpowercuts,eveninlargemetropolitanareas,arefrequent.Inruralareasfarfromnationalelectricitynetworks,thisratereaches82%ofthepopulation.Servicingtheseareasis,therefore,essential.AsaMobileNetworkOperatoroperatingindifferentAfricancountries,OrangehasdevelopedalineofservicestohelpenergyutilitiesthroughOrangeEnergy,whichincludesaservicetoenablecustomerstomanagetheirenergyexpenditurebyavoidingsingle-instalmentdelayedbilling.Thesolution,OrangeSmartMetering,leveragesmobilemoney,machine-to-machineconnectivity,SMSandothermobiletechnologies.Toreducetherelianceondieselgeneration,OrangeandIPPpartnershaveproposedanAnchor,BusinessandCommunities(ABC)modelusingsolarpower.InanABCmini-gridmodel,aconsistentload(i.e.atelecomtower)actsasananchorload,consumingalargeproportionofpowerandprovidingaconsistentrevenuestream,whilealsoconnectinglocalbusinessesandresidentstoreliableACpowerviaamini-grid.Orangeprovidesanintegratedsmartmeteringsolutiontoenableenergyprepaymentviamobilemoneyforthemini-gridcustomers.Sofar,mini-gridpilotprojectsarebeingrolledoutintwocountries:BurkinaFasoandtheDemocraticRepublicoftheCongo(DRC).TheprojectintheDRCsawthefirstcustomersconnectedtothemini-gridnetworkbyNovember2021.JordanEgyptMauritiusMadagascarBotswanaDRCCentralAfricanRepublicCameroonTunisiaMoroccoMaliBurkinaFasoSenegalGuineaBissauGuineaSierraLeoneLiberiaCôted’IvoireSubsideriesandentitiesaccountedforbytheequitymethod18countriesTechnocentreOrangeServicesGroupAsofDec312019Casestudy:OrangeEnergy44Themini-gridinstallationcanbereplicatedintonewvillagesindistrictsinthefuture.Smartmeterswillbeinstalleddirectlyattheclient’spremisesandwillprovidethefollowingadvantages:DigitisedreliefoperationsImprovementofthecustomerexperience(invoicing,collection)PaymentbyOrangeMoneyDetectionandreductionoffraudMonitoringofthelowvoltagedistributionnetworkOrangeEnergyisapartnerforthemini-gridprojectwithconnectedsmartmetering,butalsoananchorclientthatwillusetheenergyproducedbythesolarmini-gridtopoweranearbytelecomtowerwithgreenelectricity.Thesmartmini-gridprojectsinitiativehasseveralsocial,environmentalandeconomicimpacts,amongwhichwecanlistthefollowing:Duringtheconstructionperiod,butalsoformaintenanceandtheoperationphase.EconomicgrowthJobcreationEnergySupplyEducationHealthSmartmeteringbyOrangeThemini-gridsystemaimstoprovideagreen,sustainableandreliablesourceofenergyallyearlong.Studentscanstudyeasilyandsafelyatnight,withoutthelossofpowerforelectronicdevicessuchaslaptops,phonesetc.Healthcentreswillbemorefunctionalbynight,reducingtherelianceonkeroseneforlighting.Manycommercialactivitiescanbecreatedandnewtechnologiestestedforthefirsttime(i.e.coolingsystems).OperationandproductioncostsavingsHigherrevenueandcashcollectionImprovedcustomersatisfactionManualmeteringOperationmadeautomaticBillingAccuracyandpaymentexperienceimprovementFraudIdentificationandresolutionProductionOptimisationthroughondemandloadmonitoringDemandresponseFrommassiveblackouts45MobileNetZeroDigitisationandenablementAdaptationandresilience946MobileNetZeroAdaptationandresilienceTaskForceonClimate-RelatedFinancialDisclosuresAsclimatechangeresultsinrisingsealevelsandmoreextremeweatherevents,mobileoperators’networkscouldbedamagedwithgreaterfrequency,resultinginmoreserviceinterruptionforcustomersandgreaterfinancialrisksforoperators.Operatorsarethereforeunderincreasingpressuretomaketheirnetworksasrobustaspossiblesotheycanwithstandextremeweatherandberestoredquickly.Atthesametime,mobiletechnologyandinnovationenabledthrough,forexample,AIandbigdata7isuniquelypositionedtoprovideandenabletoolsforclimatechangemitigation,adaptation,weatherdisasterresponse,pollutionandenvironmentalmonitoring8.A1conductedaninitialclimatescenarioanalysisbasedonTCFD,whichtookthe‘ParisScenario’versusa‘+4degreesScenario’intoassessment.A1’sanalysisfocusedonsupplychainimpacts(criticalproductionlocationsofequipmentandpossibleimpactsondeliverychain),energypricedevelopmentsincludingregulationandoperationalimpacts(criticallocations,frequencyofextremeweathereventsetc)ontheriskside.Vodafonehasundertakenahigh-levelTCFD-alignedclimatechangeriskandopportunityanalysisandselectedmarket-leveldeep-diveassessments.Aspartofthisprocess,Vodafoneusedscenario-basedanalysisalignedtotheBankofEngland’sreferenceclimatescenarios–usedtostress-testtheUKfinancialsystemagainstclimatechange.TheTaskForceonClimate-RelatedFinancialDisclosures(TCFD)wascreatedin2015bytheFinancialStabilityBoardtodevelopconsistentclimate-relatedfinancialriskdisclosuresforusebycompanies,banksandinvestorsinprovidinginformationtostakeholders.Thegoalistoachieveagreaterunderstandingofclimaterisksandfacilitatefinancingofthetransitiontoamorestableandsustainableeconomy.Networkoperatorsareespeciallyexposedtoclimate-relatedfinancialrisksbecausetheirvaluableassets(basestations)arescatteredeverywhere,includingareasatgreaterrisk.Manyoperatorshavealreadyundertakenshort-orlong-termTCFD-alignedclimatechangeriskandopportunityanalysis.BasedonthedataprovidedbytheoperatorstotheCDP,46%ofthenetworkoperatorsbyrevenueand32%byconnectionshavestartedtheirTCFD-alignedclimatechangeriskandopportunityanalysis.Short-termclimaterisk-relatedanalysiscoverstheimpactsalreadyexperiencedandtheexpectedimpactsoverthenextfewyears.Long-termriskassessmentscenariosaremodelledaccordingtoa20-or30-yeartimespan,inmanycasesto2050toalignwiththeParisAgreement.ExamplesincludesA1,GlobeTelecom,Orange,Safaricom,TaiwanMobile,Telenor,VerizonandVodafone,whohavecarriedoutcomprehensiveclimate-relatedfinancialanalysisandscenarioplanning,includingthefollowing:7gsma.com/betterfuture/aiforimpact8gsma.com/mobilefordevelopment/resources/the-role-of-digital-and-mobile-enabled-solutions-in-addressing-climate-change47MobileNetZeroAdaptationandresilience471xxx2xxx3xxxx4xxxAsclimatechangeresultsinrisingsealevelsandmoreextremeweatherevents,mobileoperators’networkscouldbedamagedwithgreaterfrequency,resultinginmoreserviceinterruptionforcustomersandgreaterfinancialrisksforoperators.Asthereisincreasingrecognitionfromthefinanceindustryoftherisksposedbyclimatechangeandthepotentialeconomicimpacts,thereisexpectedtobeincreasedregulationaroundclimatedisclosurethisdecade.AnexamplealreadybeingbroughtintoforceisthemandatoryTCFDreportingintroducedbytheUKgovernmentfromApril2022.48MobileNetZeroAdaptationandresilienceSafaricomrecognisesthatclimatechangeposesanumberofphysicalriskscausedbytheincreasedfrequencyandseverityofextremeweathereventslikeflooding,droughtsetc.andtransition-relatedriskslikeeconomic,technologyorregulatorychallengesrelatedtomovingtoagreenereconomy.Inresponse,Safaricomhasundertakenahigh-levelanalysisfocusingonclimatechangerisksandopportunities.ThebusinessiscurrentlyonajourneytoaligninternalprocessestotherecommendationsoftheTaskforceonClimate-RelatedFinancialDisclosures(TCFD).Fromriskassessments,Safaricomquantifiesthebusinessimpactsofallmaterialclimate-relatedrisksovershort-,medium-andlong-termtimehorizonstobetterunderstandthefinancialvalueatriskacrossservicerevenueandoperationalcost.Casestudy:SafaricomTheshort-termanalysisperiodisfrom2021to2025,whichcoverstheimmediateimpactsalreadybeingexperiencedandtheexpectedimpactsoverthenextfiveyears.Thisisalsowellalignedwiththecompany’s2025missionandstrategy.Themedium-termanalysisperiodisbetween2026and2035,whichcoversthemedium-termimpactsexpectedtooccurinthefuture.Medium-termrisksaredependentonthescenariochosenandhowearlyactionistaken,withsignificantdifferencesbetweenthreetemperatureincreasescenariosonbothrisksandopportunities.Thelong-termriskandopportunityanalysisperiodisfrom2036to2050,whichcoversthelonger-termimpactsexpectedtobeexperiencedunderthedifferentclimatescenarios,witharangeoftemperatureincreasesfrom<1.5°Cto>3°Cunderdifferentscenarios.Eachscenariohasdifferentrisksandopportunitiesoverbothphysicalandtransitionalareasacrossthistimerange.Safaricomhasalsomadeadistinctionbetweentherisksandopportunitiesrelatedtoourinternaloperationsandthoserelatedtooursupplychain.Theoutputsoftheexerciseareusedtomakedecisionsonexistingpoliciesandtoreviewordevelopnewones,especiallylookingatopportunitiestoimprovebusinessresilienceandcontinuity.Italsoinformstheassessmentoflong-termbusinesssustainabilityandresilience,pinpointsareasoffurtherclimateaction,andinformsenvironmentaltargetsandobjectives.20212025202620352036205049MobileNetZeroCaseStudiesMovingthewholemobileindustrytonetzeroemissionsby2050willrequireconcertedeffortandactionbyallkeyindustrystakeholders.Overthepastyear,theGSMAhasworkedwithoperatorstosupportthisjourney,withtheimmediatefocusbeingontherapidcutsneededby2030.Thefollowingtablegivesanoverviewoftheactionsneededbystakeholdersiftheindustryistobesuccessfulinitsnetzeroambition:Operators•DisclosurethroughtheCDPandaligningwithTCFD•Settingscience-basedandnetzerotargets•Switchtorenewableenergy•Developcirculareconomyinitiativesfornetworkequipmentandconnecteddevices•EngagewithsuppliersonclimateactionSuppliers•DisclosurethroughtheCDPandaligningwithTCFD•Settingscience-basedandnetzerotargets•Switchtorenewableenergy•Developcirculareconomyinitiativesfornetworkequipmentandconnecteddevices•EngagewithoperatorsonclimateactionGovernmentsandpolicymakers•Supporttheprivatesectorintheirdecarbonisationefforts•Accelerateaccesstorenewablesandengageindialoguewiththeprivatesectorwherethereisalackofaccess•RecognisetheenablementeffectofthedigitaltransformationRecommendations50MobileNetZeroRecommendationsgsma.comTel:+44(0)2073560600Fax:+44(0)2073560601Copyright©2022GSMAssociation
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