{"id":7829,"date":"2024-09-30T13:10:02","date_gmt":"2024-09-30T11:10:02","guid":{"rendered":"https:\/\/stxgroup.staging.twize.io\/strive\/?p=7829"},"modified":"2025-06-18T12:04:17","modified_gmt":"2025-06-18T10:04:17","slug":"decarbonization-pressures-telco-supply-chain","status":"publish","type":"post","link":"https:\/\/stxgroup.staging.twize.io\/strive\/latest-news\/decarbonization-pressures-telco-supply-chain\/","title":{"rendered":"Decarbonization Pressures Across the Telecommunications Value Chain"},"content":{"rendered":"\n

As the telco sector experiences growth in consumer demand, the entire value chain\u2014from network infrastructure providers to data centers and telco operators\u2014faces increasing pressure to decarbonize. These pressures are driven by rising regulatory demands, investor scrutiny, and consumer expectations for sustainability.<\/p>\n\n\n\n

In 2022, the telco industry accounted for 2-3% of global carbon emissions, a figure lower than industries such as manufacturing and energy. However, global consumer internet traffic, mainly from video streaming, has rapidly increased by approximately 34% at a Compound Annual Growth Rate (CAGR) since 2015 (GSMA, 2022)<\/a>. <\/strong>Ultimately, this rise in traffic translates to higher electricity use and increased carbon emissions. The International Energy Agency<\/a> states that the telco industry needs to reduce emissions by at least 45% to reach the Net Zero Scenario by 2030.\u00a0<\/strong><\/p>\n\n\n\n

Arguably, one of the biggest drivers of the challenges that the industry faces is how generative AI drives increased demand for data center space, intensifying competition for real estate and leading to a shortage of co-location facilities. This expansion escalates the industry’s carbon emissions due to the energy-intensive infrastructure required and places additional pressure on real estate choices that may not prioritize sustainable energy sources or efficient designs.<\/p>\n\n\n\n

This signals an urgent need for comprehensive decarbonization across the telco value chain, which includes network infrastructure providers, data centers, and telco operators. Each key player contributes to the rising energy demand, driven by advancements such as 5G network deployment, expanded cloud services, and the proliferation of AI. <\/strong>Addressing these interconnected challenges requires nuanced and targeted strategies.<\/p>\n\n\n\n

Balancing the Pressure to Decarbonize and Reduce Carbon Footprints<\/strong><\/h2>\n\n\n\n

Network infrastructure providers, data centers, and telco operators face increasing demands for regulatory compliance, sustainability, and investor and consumer confidence. As the telco industry faces increasing pressure to decarbonize, operators need integrated strategies to reduce their carbon footprint. Specific efforts to cut direct (Scope 1) emissions, reduce indirect energy-related (Scope 2) emissions, and address supply chain (Scope 3) emissions may vary depending on individual sector requirements in the value chain. The right combination of solutions highlights opportunities for a multi-faceted approach to decarbonization, combining energy-efficient technologies, renewable energy procurement, and strategic partnerships to minimize the environmental impact<\/strong> of network infrastructure providers, data centers, and telco operators.
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\nfind our more about telco decarbonization solutions<\/span><\/a>\n<\/div>\n\n\n\n
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Effective decarbonization strategies for telecommunications<\/strong><\/h2>\n\n\n\n
\nGET IN TOUCH<\/b><\/span><\/a>\n<\/section>\n\n\n\n

To effectively reduce their carbon footprint, telcos must integrate multiple and often interconnected solutions:<\/p>\n\n\n\n