All telecoms players must examine their Scope 3 emissions or face regulatory and commercial consequences

The increasing regulatory focus on Scope 3 emissions will require all telecoms players to monitor and report emissions from across their supply chains. 

2023 was another year of wild climatic extremes. 2024 will need to be a year of significant change, and tighter regulation is inevitable. Carbon reductions have so far focused predominantly on the more visible and manageable Scope 1 (direct emissions from operations) and 2 emissions (emissions from purchased energy). The near future will see much more stringent regulation of these emissions, but also an increasingly specific focus on Scope 3 emissions (i.e. those emitted across the value chain). 

Operators are under pressure from regulation as well as consumers to take responsibility for both direct and (increasingly) indirect emissions. These Scope 3 emissions are much harder to track and to quantify, but it is not a challenge industry players can afford to ignore. 

Failure to grasp this introduces the risk of fines, reputational damage, and higher customer churn, but also lower valuations on stock markets and financial activities. M&A processes now include either a sustainability component, or indeed a full standalone sustainability due diligence as a matter of routine to satisfy investment committees. Poor performance in this area increases perceived risk for investors, and reduced opportunity for investment. 

2024 will see operators and the investor community alike striving to ensure they are not left behind in the race to comply with ever more demanding regulations and public expectation.  

Quantifying environmental impact and sustainability goals are complex tasks and telecoms operators will benefit from expert guidance on the best ways to analyse and report on their performance.