Telecom Media Technology: Driving Sustainable Change

One of the unique aspects of the sector is its dual role as both an enabler for the transition of other sectors and a source of emissions that need to be addressed.
Solutions developed by the TMT sector are also expected to play a key role in decarbonizing sectors such as mobility, agriculture, food, real estate, and energy. Tools to measure and control energy consumption will be instrumental in achieving these goals. 
It is anticipated that these solutions will contribute to a significant reduction of 12 gigatons of CO2 by 2030, compared to the current level of 2 gigatons. 

However, the surge in data consumption and management, driven by artificial intelligence and digital infrastructure, has raised concerns about its environmental impact. Issues such as increasing greenhouse gas emissions, land utilization, water consumption, and air pollution have come to the forefront.

In response to these challenges, the TMT sector is actively working to minimize its environmental footprint. 

A crucial area of focus is decarbonization and resource efficiency. Major players have already made commitments to environmental impact mitigation through their efforts to reuse, recycle, and decarbonize operations. 25% of the sector’s emissions come from infrastructure, and TMT companies can decarbonize through energy efficiency measures, and then switch to low carbon energy sources. For example, Cellnex signed a PPA to increase the renewable energy share in their energy mix. Further downstream, TMT actors are embracing circular economy concepts. Orange is raising customer awareness of recycling and buyback with a target of 30% of collected phones by 2030.   

Financial institutions, including Societe Generale, are playing a crucial role in supporting the sector's transition towards sustainability. With its energy-as-a-service offering, Societe Generale is actively engaged with small energy transition companies seeking development capital in areas such as carbon capture, storage, and battery storage. These energy technologies present opportunities for collaboration with large users, and the bank is well-positioned to evaluate these opportunities and advise on the right structure and investment alternatives.

Furthermore, Societe Generale's partnership with Bernstein provides access to top research on power demand and capacity constraints, enhancing the bank's platform and ability to support clients in the TMT sector. This collaboration underscores the commitment to providing valuable insights and investment opportunities for sustainable growth.

In conclusion, the TMT sector's journey towards sustainability presents both challenges and opportunities. By embracing ESG principles and collaborating with financial institutions like Societe Generale, the sector can drive positive environmental impact, unlocking new prospects for sustainable growth and investment. The TMT sector's recognition of the importance of integrating sustainability into its business strategies marks a commendable stride towards a more sustainable future.