Telecom Services Industry ESG Thematic Report, 2023

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

Traction from multiple stakeholders - governments, cooperators and investors has led to the significant growth of Environmental, Social, and Governance (ESG) disclosing and reporting in the market. Coupled with the upcoming advancements in technology and the global need for networking, there is an escalating need for responsible consumption of Telecom Services. The existence of a multitude of components in the global telecom services sector, like telecom services, networks and providers, the Global Market has a huge potential to lead socio-economic development.

The historical evolution of cellular devices, from simple to smart offerings, beyond our imagination at our fingertips has fueled the growth of the Global Telecom Services Market. The unprecedented growth of this sector also has its own risks in terms of data privacy, network reliability, and affordability. At the same time, it has ample opportunities to address this social and governance-related risks. Adopting to extreme weather-related events, risk mitigation activities, and foreseeing litigation issues, that might be region-specific are pertinent in the telecom sector. At the same time, to meet energy reduction goals, green bond issuance and using energy efficient material to manufacture telecom products are gaining significance.

Network operators in the global market can build their market position to promote social and environmental strategies to create an optimistic ESG impact in this sector.

ESG trends

Following the Covid-19 pandemic in 2020, the world has shifted towards digital platforms for professional and personal purposes, thus making network connectivity crucial to this situation. This shift has further led to a massive economic growth in this sector. Meanwhile, ESG reporting in the Global Telecom Services Market is also gaining traction to showcase sustainable and resilient thinking to attract investment opportunities in this sector.

Companies in the global telecom services industry offer various products and services that include Mobile communications (GSM) and Code Division Multiple Access (CDMA) to Third Generation (3G), Fourth Generation (4G), and now the Fifth Generation (5G) networks. The access to these networks offers global connectivity and promotes inclusivity making it extremely promising to close gaps among communities to promote access to information.

The global market has the potential to achieve United Nations - Sustainable Development Goals (UN – SDGs) such as Responsible Consumption and Production and Reduced Inequalities. The ability to network through telecom services has opened a wide array of opportunities to be accessed from remote locations.

Growth of The Telecom Service Market

According to 2020 research, the Global Telecom Service Market was valued at USD 1,657.7 billion and is expected to increase at a compound annual growth rate (CAGR) of 5.4% in 2028 from the baseline of 2021. With the extensive reach of Telecom Services, the sector has the highest threat for security breach leading to regulatory and reputational risks. To address this, telecom industries are enhancing their data security and social responsibility to their customers to attract investors.

One of the major barriers that the global market is with affordability. Although there is a visible trend in declining rate of voice calls and data services, globally there exist numerous countries with unaffordable telecom services.

Currently India has the second largest telecommunication market in the world with a customer base of 1189.28 million. With the government’s initiative to Digital India campaign, it opens a door for a plethora of opportunities in this field.

Key Companies in this theme

    • AT&T Inc.

    • Verizon Communications Inc.

    • Telefonica SA

    • Vodafone Group

    • Orange SA

    • BT Group

Scope of the Telecom 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 Telecom Services Industry Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the global telecom services sector

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

    • Identifying ESG risks and opportunities to business among leading players in the global industry

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