DCF Report: Climate State of the Industry 2024

A new Digital Connectivity Forum report has found that almost all the major players within the UK telecoms sector have set net zero targets, with three quarters of firms having validated science-based targets.

The report highlights that the anchor point for acting on sustainability is the setting of credible carbon reduction goals. These should involve clear targets and measurable outcomes, which can be used to report progress.

The Digital Connectivity Forum’s State of the Industry Report was based on survey results from 12 major telecoms companies, including network operators, internet service providers and vendors.

The report highlights a positive and continued commitment to the net zero journey, with 11 out of 12 having set some form of net zero target, and 75% having validated science-based targets. This level of target setting is both a positive signal of the continued commitment to net zero and a sign that the telecoms sector is recognising and responding to climate concerns.

The report highlighted interesting areas such as the potential for certain drivers to decrease overall emissions, including fleet transition, renewable energy switching, fluorinated gas reduction and the use of data analytics to focus sustainability strategy.

Exploring levers to industry wide reductions, policy and regulatory change, grid decarbonisation, industry change, subsidy and incentives, standardisation and green skills adoption were highlighted as key contributors towards overall industry reductions.

As new challenges emerge, such as the increasing need for climate resilience and tackling the remaining barriers for industry wide adoption of decarbonisation levers; cooperation and engagement across industry, government and other stakeholders will be a powerful tool for overall success.

Other key findings included:

• 70% identified renewable energy transition as the largest driver for operational emissions decrease to date.
• 5 out of 11 identified fleet transition as a potential large-scale driver for scope 1 & 2 reductions
• 50% have fleet transition targets
• 90% identified green skills gaps as a barrier

The report’s publication follows the second annual UK Telecoms Sustainability Roundtable, which was held in June this year by the Digital Connectivity Forum, Ofcom and Accenture. The event followed on from last year’s initial kick off session, where the UK’s largest connectivity providers came together to sign a statement of commitment, in which they agreed to work together to reduce greenhouse gas emissions (GHG) from the telecoms supply chain.

At this year’s roundtable, which was attended by twenty-four sustainability leaders representing sixteen companies from across the telecoms industry, eight priority areas were identified:

• Creating a net zero roadmap for the telecoms sector
• Supplier Engagement within competition law parameters to tackle scope 3 emissions
• Engaging senior leaders within telecoms firms on critical climate challenges and action
• Understanding and improving climate resilience in a changing world
• Common Training Standards to increase and align sustainability understanding across roles and departments
• Understanding the barriers to Electric Vehicle adoption and creating a policy environment to encourage fleet switching
• Life Cycle Assessment Data improvement and understanding
• Grid Decarbonisation

These areas have been evaluated by the DCF climate group members and will continue to be taken forward in discussion as to how to drive progress in the most impactful way, and in keeping with competition law rules.

Will Ennett, Chair of the Digital Connectivity Forum Climate & Sustainability Work Group said:

The members of the Digital Connectivity Forum Climate and Sustainability Working Group have recognised the urgency of climate change. As we face a world that is rapidly changing, many companies are already taking impressive action to curb their environmental impact and make a difference. I want to take this opportunity to thank all members for their enthusiastic collaboration, and to the Digital Connectivity Forum team for their tremendous dedication in creating this report.

Ed Leighton, Director of Strategy & Policy at Ofcom said:

It was great to bring together telecoms providers for a second successive year, to reaffirm their shared commitment to reduce carbon emissions. I was impressed by the energy and ideas, with some clear areas of focus coming out of this year’s roundtable – including more engagement at senior leadership level and creating a net zero roadmap for the telecoms sector.