European Telecoms Face The Challenge Of Sustainable Investment In 2020

European telcos face the challenge of sustainable investment in 2020Spain is working on a new standard to regulate the security of 5G networks and services

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.


Euro telco ESG


About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.