Source Research:
Scope 3 emissions in the telecommunications sector are projected to rise from 746 million tons of CO2e in 2024 to 891 million tons by 2030, growing at a Compound Annual Growth Rate (CAGR) of 2.99%. Despite some success in reducing Scope 3 emissions, particularly by European operators and vendors, global emissions are expected to increase throughout the forecast period.
Many telecom companies are still in the early stages of addressing Scope 3 emissions, even though these account for 85% of total emissions on average. While significant progress has been made in reducing Scope 1 and Scope 2 emissions, Scope 3 has often been neglected. Recently, mandatory disclosure regulations and growing stakeholder pressure have prompted telecom companies to increase transparency and accountability in their environmental impact. While some companies are responding to these pressures, many are still grappling with measuring and reporting their Scope 3 emissions.
To make meaningful progress, telecom companies need to adopt a more proactive approach to tackling Scope 3 emissions. Historically, these emissions have been viewed passively, as they stem from activities outside the companies' direct operations. However, achieving substantial emissions reductions will require companies to take responsibility for their entire value chain and recognize the benefits of reducing Scope 3 emissions, such as enhancing brand reputation, gaining a competitive edge, and realizing cost savings through more efficient network energy consumption.
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