'Green' Telecoms Dial Into Profits, Report Says

'Green' Telecoms Dial Into Profits, Report Says

According to a new report, environmentally "superior" telecom companies financially outperformed their less proactive rivals by 35% over the past two years.

The report, released by Innovest Strategic Value Advisors, says the information and telecommunications industry has a pivotal role to play in shaping a cleaner and more energy-efficient society.

Innovest notes that major telecommunications firms such as AT&T, Deutsche Telekom, Japan’s NTT and Swisscom are all driving an aggressive agenda of environmental stewardship and sustainable development.

"(The reason why is partly) to improve operating efficiency, partly to generate good PR, and partly because it makes sound financial sense," said Martin Whittaker, the report’s principal author.

Key findings of the report:
  • Telecom firms can have significant direct impacts on the environment. AT&T for example, emits more SO2 and NOx than many medium-sized oil and gas producers. NTT consumes roughly 0.5% of Japan’s total national electric power usage.
  • Under pressure from new telecom upstarts, former monopolies are using environmental leadership to add value and improve efficiency.
  • Governmental pressure, customer pull, liability fears and brand value factors contribute to innovative new product design and engineering trends.
For the purposes of this analysis, Innovest determined financal performance by relative changes in share price.

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