top of page

The Role of Sustainability in the Telecommunication Industry.

Updated: Jun 6

Building Resilient Telecom Software Solutions

With the most recent predictions, the global telcos market has the potential to grow at a steady rate of 5.1% between 2022 to 2031. By 2031, it should reach a value of $2556.2 billion. Such incredible numbers highlight the industry's importance and increasing connectivity worldwide. Despite such an impressive trend of growth and opportunities, telcos' sustainability is still a concern for the industry. Further, we will investigate the role of sustainability in the telcos' business and how to develop sustainable software.


The Role of Sustainability in business development

The significance of sustainability in the telecommunication industry cannot be overstated, as it entails implementing strategies to minimize the adverse effects of business operations on the environment. The assessment of a company's green practices is usually based on three critical metrics:

By incorporating eco-friendly approaches, organizations can contribute positively to the environment while enhancing their reputation and showing a strong sense of ethical and responsible behavior. Using ESG metrics allows stakeholders to measure the sustainability performance of businesses, prompting them to adopt eco-friendly practices and responsible business conduct.

Why is sustainability important for businesses?

Governments are imposing strict requirements on companies to provide sustainability reporting. At the same time, major corporations and international exchanges view non-financial reporting analysis as a crucial risk management stage. Without a commitment to a sustainable future, businesses risk losing out on global partnerships, foreign investment, and the opportunity to be listed on reputable exchanges.

Customer perceptions and brand reputation remain critical to the success of any business. As much as 64% of Americans will pay more for sustainable products. Stating the necessity for companies to position themselves as environmentally friendly. In today's world, organizations prioritizing sustainability are better positioned to thrive in the long run.


Telcos approach sustainable software development

Telco sustainability has grown critical as firms seek methods to decrease their environmental effect while cutting costs and meeting consumer needs. It puts a lot of pressure on businesses that use low-carbon communications and other sustainable methods. It turns into focusing on renewable energies and the effective use of resources in the communication industry.

In line with S&P Global Market Intelligence statistics, the top 15 European telecoms by value by market capitalization have a considerable carbon footprint, with emissions from Scope 1 - those released immediately by the firms - accounting for just 3.2% of the total.

The indirect pollutants connected with energy purchases, known as Scope 2, account for approximately 24.6% of their carbon footprint. The vast majority of the pollution, however, originates from Scope 3, which includes both upstream and downstream activities within telecom supply chains, as well as emissions produced by consumer usage of their goods and services.

This data underscores the need for telcos to adopt sustainable practices throughout their operations and supply chains to reduce their overall carbon footprint.

Why is sustainable software a new emerging trend?

Cut energy consumption

Firms may expedite their development processes by implementing open-source software and continuous integration and deployment. It also aids in reducing their dependency on proprietary software licensing, which results in considerable cost savings.

Customer demand

As customers grow more environmentally conscious, they seek greener products and services. Telcos may separate themselves from rivals and appeal to this rising client niche by providing sustainable software solutions.

Regulatory compliance

Authorities are enacting policies to promote environmentalism and minimize carbon emissions. Sustainable software development is critical for decreasing telecoms' carbon footprint, complying with laws, and maintaining environmentally friendly practices.



On the way to sustainability: top inspiring examples from telcos you should know about

Vodafone

Vodafone is one corporation that stands out for its dedication to telcos sustainability. The telecoms behemoth is aggressively investing in sustainable software development processes to achieve its lofty aim of net-zero carbon emissions by 2040. It involves a greater emphasis on open-source software and less reliance on proprietary software licensing, resulting in simplified development processes and a lower carbon footprint. Vodafone's commitment to sustainability sets an example for others in the sector and helps the company differentiate itself from competitors and appeal to environmentally aware customers.

Telefónica

Telefónica has also taken leading positions in sustainability in the telecommunication industry. The company has performed some steps to reduce its carbon footprint. It includes the use of renewable energy sources and energy-efficient technologies. By implementing these measures, Telefónica can lower the environmental impact while still delivering the best services to the customers.

However, this is not the end. The company is actively working on supply chain sustainability. It encourages its suppliers to implement practices and reduce their carbon emissions. This leadership ensures the entire industry moves toward a more sustainable future.


4 must-have features of sustainable software

Flexibility: Sustainable software is highly efficient in its use of resources, cutting energy consumption and reducing the carbon footprint of the application. It is achieved by using optimization techniques and streamlined code that reduces processing and storage requirements.

Multi-functionality: The application should be built to be versatile and adaptive, capable of satisfying a wide range of user demands and requirements. It eliminates the need for many apps while lowering the software ecosystem's carbon footprint.

Minimal maintenance: The app should require minimal presentation and updates, reducing the need for hardware and software upgrades and minimising environmental impact.

User-friendliness: Sustainable products are always designed with the user in mind, focusing on ease of use, accessibility, and usability. This helps to ensure that the software is used to its full potential, reducing the need for additional software and reducing the carbon footprint of the overall software ecosystem.

4 must-have features of sustainable software

The development of eco-friendly software

The creation of green and ordinary software is almost the same. However, there are differences in the planning and analysis stages.

Management needs to transform employee work approaches and establish internal policies to ensure high productivity and optimise the development process. Such a transformation will have a significant impact on the company's success.

The second step to creating eco-friendly software involves carefully choosing suppliers. The hardware used in developing green code must also be environmentally friendly. Factors such as where the supplier sources the laptops, the energy used in delivering them, and the amount of CO2 emissions generated during the production process are crucial considerations.

Based on the collected data, companies should choose the most suitable, cost-effective, and sustainable equipment. Failure to do so could undermine the sustainability of the process.


The third step involves conducting an in-depth analysis of the company's business processes and ensuring they comply with sustainability principles. This process requires careful consideration and the creation of a list of requirements. Before development, the product design should undergo rigorous testing to ensure the final result is sustainable.

Summary

Eco-friendly software development is critical to achieving long-lasting sustainability. The key is to create efficient and flexible software that minimises energy consumption and reduces the carbon footprint of the application.

Companies like Vodafone and Telefónica are paving the way for the sector regarding the environment. Green practices are becoming increasingly important for telecoms to remain viable and competitive as customers grow more environmentally sensitive. Finally, by focusing on climate-friendly expansion, telecoms may help ensure a brighter future for the planet and society. We expect to see more enterprises following their footsteps and adopting sustainable practices to ensure a green future for all.



Comments


More insights

Categories

bottom of page