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Vendors need green credentials to win telco business

This brief report addresses telco procurement in the context of the rising importance of environmental sustainability. It discusses how telcos are tracking the greenness of their external spend and placing more importance on vendors’ environmental credentials. Telcos increasingly focus on suppliers’ compliance with the Science-Based Targets initiative (SBTi), audits conducted by the Joint Alliance for CSR (JAC), environmental ratings from EcoVadis, participation in the CDP Supply Chain Program, and emissions data compliant with the GHG Protocol.

A typical big telco has thousands of suppliers, across hundreds of categories of products and services. DT had >25,000 in 2022, for instance, while the much smaller Singtel still had well over 5,000. When telcos assess their carbon footprint, the vast majority come from this supply chain. That means telcos need to push on the supply chain if they want to reduce their carbon footprint. Most telcos have their own company-specific processes and rules related to green procurement; these guide the oversight process in many regions. But telcos are increasingly relying on hard numbers vetted by third parties to guide their procurement...

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Best regards,
Matt Walker
Chief Analyst
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