Infinera Gets An “AA” ESG Rating From MSCI

Published on:
by Aaroshi Rathor
network-3864383 1280

US-based digital optical telecommunications equipment company, Infinera Corporation, has received an impressive “AA” environmental, social and governance (ESG) rating score from prominent global ESG rating provider MSCI in the latest 2022 MSCI ESG ratings.  A company's ESG-related actions are evaluated by MSCI ESG ratings, which then assign a seven-point score and a ranking to the company, ranging from AAA (highest) to CCC (lowest). Ratings are based on a company's exposure to substantial financial and ESG risks, as well as how well it can manage those risks in comparison to other businesses in the same sector. 

In the new 2022 MSCI ESG rating, Infinera got an excellent rating of “AA”, which signifies that the company is leading in its industry in the successful management of ESG risks and opportunities, and is focussed on maximising further ESG opportunities. Infinera's rating was given in recognition both of its dedication to prioritising ESG and of its collaboration with partners and leadership teams throughout its international value chain to maximise impact and reduce risk exposure. Similarly, across the same sector, the company’s competitor Cisco Systems also received an “AA” rating in the same assessment, as did Ericsson and Nokia

Talking about the major achievement, Infinera CEO, David Heard said, “Infinera remains committed to corporate social responsibility and sustainability as we drive innovation for our customers. Taking a proactive and collaborative approach while anticipating evolving regulations and shifting trends will help us to keep pace with customers’ and investors’ expectations.”  

Infinera builds new technologies and products to help its customers communicate. For example, Data Center Interconnect helps reduce footprint and power consumption through low-power Digital Signal Processing (DSPs). It also helps in fueling data centre expansion and simplifying network design and implementation with network auto-discovery and instant bandwidth. 

The demand for automated network operations and Data Center Interconnect is on the rise. According to a global Data Center Interconnect business report for 2022, the global market for Data Center Interconnect is estimated to reach USD 24.2 billion by 2027, growing at a compound annual growth rate (CAGR) of 14.1% over the analysis duration period of 2020-2027. The report also states that the software is projected to record a 16.2% CAGR and is expected to reach USD 11.5 billion by 2027.  

The telecommunications industry has been experiencing a huge boom in recent years. From US communications regulator Federal Communications Commission (FCC) launching the Affordable Connectivity Program, to Finnish network solutions Cinia partnering with Japanese infrastructure firm Arteria Networks to build a subsea cable system linking Europe and Asia, the massive progress is changing the system in a more technology-friendly and environmentally sustainable manner. 

However, there is still a lot of progress to be made in practically implementing these innovations amidst the growing challenge of climate change. For example, severe floods lead to massive infrastructure damage. During April 2022, a massive portion of south-west African mobile operating company Vodacom’s infrastructure was damaged, leading to customers experiencing intermittent mobile services and the company suffering major financial impact along with lost service revenue. 

Telecom infrastructure is a geographically dispersed infrastructure, severely vulnerable to flooding, storms, wildfires, disruption of the supply chain, damage to critical equipment, and so on. It will therefore require particular effort for the telecom industry to practically implement the latest technologies to make a shift towards a more stabilised and sustainable future. 

To check a company sustainability report or latest ESG Ratings, please click here.