It is becoming evident that addressing environmental, social and governance (ESG) issues is not only beneficial to the planet and society, but also makes commercial sense. Robert Pritchard, Senior Technology Analyst at GlobalData, highlights a key example of this in the telecoms sector.

Pritchard comments: “Every telecoms company is looking for ways to embrace and demonstrate their ESG credentials. As an example, Colt analysis demonstrates that focusing on ESG makes commercial sense. Going beyond ‘greenwashing’ and ‘rainbowwashing’, the service provider has identified a correlation between sustainable relationships and business success. This is clearly showcased by the company’s growth in revenues and EBITDA, as well as its net promoter score (NPS) – a measure of enterprise customer satisfaction.”

Colt has also highlighted that its target enterprise customers require a focus on sustainability – increasingly along the entire value and supply chain – as a condition of doing business. On top of the customer demand, Colt also pointed out that its transition to a more sustainable business model has seen decommissioning of legacy networks save 90% in power usage and a 95% reduction of space required for equipment.

Pritchard continues: “This trend is in evidence across ICT enterprise services market, with recent BT/Accenture research finding that the tech sector is set to reduce carbon emissions by as much as 40% over the next decade.”

In addition, the announcement of the planned 4,200km Leif Erikson cable project linking Norway and Canada has been promoted by claiming to be the first of its type powered 100% by renewable energy.

Pritchard observes: “These examples prove that the tech industry is taking sustainability seriously. Not only are these initiatives good for the planet, they are also good for the bottom line.”