Telecom Giant T-Mobile Releases ESG Progress Report
T-Mobile US, Inc.
T-Mobile has announced its ESG strategy progress in its annual Corporate Social Responsibility report for the year 2021. According to the report, the company claims that 100% of the carrier’s electricity usage comes from renewable energy and that it has spent 3.27 billion dollars working with various suppliers to achieve this, while also meeting 50% of its “Equity in Action Promises” and has connected 3.2 million students through its education programmes. For the unversed, Equity in Action aims to create a just and fair inclusion of everyone in society where they can participate, prosper and reach their full potential. The company has begun its Equity in Action Promises plan with a term of five years. Currently, the company is in its second year and aims toward diversity, equity, and inclusivity in T-Mobile’s operations.
The company announced three critical steps towards its ESG approach, namely, “Equitable Opportunities, Digital Empowerment, and Thriving Planet.” According to the ESG assessment report for 2021, the company’s assessment relied solely on survey responses from employees and customers, along with interviews taken with internal and external stakeholders. It determined the importance of ESG issues that concern the organisation and the results were declared. It was noted that important governance topics such as digital privacy and security, along with ethical business practices, scored high when compared to areas concerning social impacts such as employee diversity and inclusion, digital equity, health, human rights, safety, and wellness, which were rated as the top priority. Along with this, climate change, waste and recycling emerged as the top environmental issues.
The company says that most of its board of directors belong to traditionally underrepresented racial and ethnic groups or from the minority gender in the workforce which leads their ESG governance. In a company blog, the CEO of T-Mobile, Mike Sievert, said, “We are resolute in our commitment to operate responsibly, with integrity, and with a focus on the well-being of our communities and planet.”
According to analyst firm IDC, many companies are investing in ESG strategy, and the ESG business services spending is estimated to hit 158 billion dollars by 2025. It also predicted that almost two-thirds of the business services market will be captured by sustainability-linked business consulting services.
For any company to operate in future, it will need to have an ESG social licence in order to gain corporate credibility. ESG has become the main focus of the global economy, and winning the trust of stakeholders at the local, national, and global levels will be as important as winning business contracts or signing major deals with large MNCs. ESG ratings will also play a major role in determining whether an investor would like to join hands with the firm or not, as ethical investing, or some might say sustainable investing, plays a vital role in financial performance and in winning the trust of stakeholders.