Telecom networks have high energy consumption. Companies in the sector are now taking steps to improve their energy efficiency through the use of renewable energy, network sharing, etc.
According to Morgan Stanley analysts, reducing the environmental impact of the networks will be a debate which will increasingly attract the attention of investors, the regulator and consumers. So those companies with more efficient networks and better mix of green energy could grow market share and differentiate themselves from the competition.
On the one hand, the use of green bonds to finance projects (5G, fibre optic) will increase. The research house estimates that about €3.5 billion of the current debt could be refinanced annually via this kind of bond. Telefónica was the first teleco to issue a € 1bn green bond.
On the other hand, gender diversity will be another key point. Although the sector average is in line with the rest of the sectors (36% of employees are women vs 35%), there is a very big difference between some companies and others.