5G Services Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the 5G Services Industry

Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. The companies that fall under the 5G services industry have been transitioning and addressing their sustainability progress and agenda.

This segment has more social impact compared to environmental impact. Accessibility has been the primary focus of this market is to provide high quality services, solutions and optimal attention to people, profit and planet. These companies also disclose their own data privacy and protection policies which ensures security for customer’s personal information. This safety is also accompanied by technological advancements like big data, Internet of Things (IoT) and Artificial Intelligence.  Stakeholders are also concerned about the negative health impact of 5G services due to its carcinogenic nature.

During the COVID-19 pandemic, this market had been significantly impacted with increased use of the internet by professionals and students alike. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

This segment has various trends from the social aspect of ESG, accessibility to all (SDG 10- Reduced inequalities) has been one of the vital trends which have been focused by these companies. Even though few countries have not started up with 5g services due to lack of infrastructure, it provides faster internet access to the consumers.  These companies include product innovations (SDG 9- industry, innovation and infrastructure) like big data, Artificial intelligence and internet of things. Most of the companies are focusing on circular economy (SDG 13- climate action) within their business model, embracing efficient product design with minimum energy consumption and waste production.  However, the 5g services industry reportedly has a negative health impact (SDG 3- Health and Wellbeing) as per European Parliamentary Research Service. The International Agency for Research on Cancer (IARC) stated 5g low frequencies (700-3600 MHz) have a limited carcinogenicity in comparison with higher frequencies like FR1(450-6000MHz). Along with this, higher frequencies like FR1 could affect fertility of male and female reproductive system.

ESG Challenges

Main challenges faced by this segment are cyber security and data privacy, even though there are regulatory bodies which ensure customer data privacy as personal data including financial transfers are involved.  Certain countries didn’t proceed or reported a progress with 5G services due to lack of infrastructure and bandwidth. Lack of price transparency has been one of the main issues with the sector and only tech-savvy patients can avail best service pricing.  This segment has not been used for industrial purposes and previous versions of technology have been used in industrial premises.  In order for 5G deployment, meeting National investigation agency criteria which most pose to have a radio spectrum ranging from 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz. In addition to this, companies require licenses from Unified Access Service License (UASL), Cellular Mobile Telephone Services(CMTS), or a Unified License(UL). Along with the negative health impact on humans, impact for animals and biodiversity is still a work on progress

Growth of the 5G Services Market

The 5G Services market has been flourishing along with new innovative spaces like big data, AI, IoT etc. Incorporating technologies to mitigate negative health impact for People and the planet should be critical areas of interest for this segment in order to sustain in this market. Joint effort from industries and telecommunication authorities of countries across the world who don't have access to such technologies must also be propelled to retain market value.  This market has been valued at 48.25 billion USD in 2021 and is expected to propel to a massive 56.7% compound annual growth rate.

Key Companies in this theme

The major players which are on focus are T&T, Inc., BT Group plc; China Mobile Ltd., China Telecom Corporation Ltd., Bharti Airtel Ltd.; NTT Docomo, KT Corp., Saudi Telecom Company, Vodafone Group, Deutsche Telekom AG, SK Telecom Co., Ltd., Verizon Communications, Inc., T-Mobile USA Inc., Rakuten Mobile Inc.

Scope of 5G Services Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of 5G Services Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the 5G Services space, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the 5G Services industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector