GSMA: Climate Change Strategy Profits Companies
Companies that neglect to incorporate climate change into their fundamental business strategy not only risk damaging their reputation but also miss out on the potential to introduce lucrative new product lines.
Research conducted by GSMA Intelligence in collaboration with Huawei reveals a significant shift in consumer sentiment, with 80% of respondents from 16 different countries now identifying climate change as the paramount global challenge.
Furthermore, the study indicates that 60% of those surveyed factor in climate considerations or sustainability when making purchasing decisions, while an impressive 45% express their willingness to pay a premium for products and services bearing a certified carbon-neutral label.
Tim Hatt, the Head of Research and Consulting at GSMA Intelligence, highlights the existence of an untapped "green premium" for telecom operators should they successfully integrate sustainability criteria into product design and marketing. He emphasizes that consumers are increasingly drawn to environmentally conscious brands and are ready to invest in products boasting assured environmental credentials, presenting a valuable first-mover advantage for companies aiming to meet this burgeoning demand.
This inclination toward "green purchasing" appears to be most pronounced in regions most exposed to climate change-induced extreme weather conditions. Emerging economies experiencing the direct effects of global warming and extreme weather events exhibit the highest correlations. In countries such as Indonesia, the Philippines, Turkey, Pakistan, and Saudi Arabia, around 60% of respondents are willing to accept reduced salaries to work for organizations committed to carbon emissions reduction, compared to an average of about half in other countries surveyed. In the Philippines, approximately 80% of respondents prioritize climate action and environmental sustainability when choosing an employer.
Saudi consumers are particularly receptive to paying a premium for sustainable services, with 56% willing to spend more for carbon-neutral transportation, surpassing the 40% average in other countries. They also expressed readiness to pay extra for eco-friendly accommodations, train tickets, broadband internet, groceries, computers, clothing, and smartphones.
In Brazil, nearly 90% of survey participants identify climate change as the most urgent global challenge requiring immediate attention. Additionally, close to 70% consistently factor climate and environmental sustainability into their product and service choices.
For telecommunications operators, selling advanced technologies like 5G to business sectors promises both enhanced productivity and increased energy efficiency. Tim Hatt of GSMA Intelligence highlights the growing importance of energy efficiency in achieving net-zero emissions by 2050. Sustainable investing is on the rise, and climate-related key performance indicators (KPIs) are becoming integral to company ratings, reflecting demand from consumers, asset managers, and regulators.
These insights, along with more, can be explored in the GSMA Intelligence white papers.
The transition to cleaner energy and the imperative of sustainability take centre stage in the latest edition of "Transform," Huawei's thought leadership magazine. Published bimonthly, "Transform" serves as a platform for video interviews, profiles of prominent figures, and feature articles that delve into the interplay between technology, business, and society. The magazine's PDF version is available for download on the website, and physical copies can be obtained in select geographic regions and by request.
Each issue of "Transform" revolves around a specific topic, with recent editions covering subjects such as cybersecurity, healthcare, and sustainability.
Source: Huawei
