A recent research conducted by GSMA Intelligence with support from Huawei, revealed that 80 percent of consumers surveyed across 16 countries now view climate change as the world’s No. 1 challenge. The Kingdom of Saudi Arabia is part of the list of countries. This seismic shift necessitates not just risk mitigation but also the identification of new business opportunities, such as embracing the circular economy and reducing energy consumption.
The world is undergoing a profound transformation, with climate change emerging as the preeminent global challenge. In a recent interview with Huawei’s digital transformation advisor, David Trevitt, insights were unveiled that shed light on the intersection of climate consciousness and the business landscape.
Consumer behaviour and business strategies
The study indicates a remarkable shift in consumer attitudes, with a key focus on climate change as a paramount challenge. For businesses, this necessitates a dual approach – minimising strategic risks associated with inadequate climate responses and capitalising on emerging opportunities. Trevitt underscores the need for companies to embed sustainability into their DNA, not just as a response to consumer demand but as a strategic imperative for attracting and retaining top talent.
Education and incentivising the right behaviours, particularly at senior management levels, are emphasised as essential steps toward incorporating sustainability into every facet of a company’s strategy, operations, and culture. “Companies should consider the adequacy of their climate response as a ‘strategic risk’ to the business and make it as a top tier item within the company’s risk management process. Doing this will automatically give it senior management oversight,” said Trevitt.
The research also highlights that consumers in Saudi Arabia are willing to pay a premium for various carbon-neutral services. “One obvious factor which might have influenced the willingness of Saudi consumers to pay more is that Saudi Arabia has a relatively young population (median age of 29) and younger people tend to express more concern about climate change,” said Trevitt.
Green purchasing and business practices
The global inclination toward “green purchasing” is a phenomenon businesses cannot afford to overlook. With 30 to 60 per cent of respondents willing to pay more for certified carbon-neutral products, businesses must align their strategies with climate-friendly practices. Trevitt suggests that irrespective of the sector, a reduction in energy consumption and waste should be a starting point.
“Climate-friendly practices depend partially on the business sector. However, a good place to start in every sector is to reduce energy consumption and waste wherever possible, since this represents an often-significant cost reduction. Companies should also commit to using 100 percent renewable power and use their procurement to strategically reduce carbon emissions in their supply chain. Climate change can also open up new business opportunities, such as certified carbon-neutral products, branding the company as using only green energy and innovations in the circular economy such as recycling mobile phones and network infrastructure,” said Trevitt.
Technology integration for sustainability
The integration of technologies like 5G into industries raises questions about their alignment with sustainability goals. In the telecoms industry, where power consumption is significant, technologies like 5G offer a more energy-efficient solution, presenting a tangible way for operators to reduce their carbon footprint.
“The telecoms industry is a significant user of power contributing 2-4% of global greenhouse gas emissions. It also faces the challenge of a dramatic increase in the level of data traffic, primarily driven by videos, all of which take additional power to transmit and to process. Fortunately, new technologies like 5G are an order of magnitude more efficient in carrying data than 4G and two orders of magnitude more efficient than 3G,” said Trevitt.
Although 5G network needs additional masts in urban areas to cope with the increase in data traffic, by switching off older networks and leveraging the efficiency of 5G, telecoms companies can save energy, reduce operating costs, and offer sustainability as a service to their customers.
Huawei’s commitment to sustainability
Huawei has consistently demonstrated a strong commitment to sustainability integrating it into core business strategies. Their dedication not only addresses environmental challenges but also contributes to the growth and inclusivity of the telecommunications sector as a whole.
“Huawei is dedicated to reducing the carbon footprints of its products throughout their lifecycles integrating green development into our product planning, design, R&D, manufacturing, delivery, and services. Through constant technological innovation, we use less resources for our products and solutions, provide customers with leading, eco-friendly products and solutions, and enable energy conservation and emissions reduction across other industries. Through our ongoing efforts, the average energy efficiency of our main products in 2022 increased 2.1 times compared with 2019,” said Trevitt.
He further added that their one key aspect of sustainability efforts is collaboration with telecoms industry organisations to accelerate emissions reductions. “Huawei actively works with these organisations to provide evidence-based advice on the importance and methods of reducing emissions in the telecommunications sector. As part of this collaboration, Huawei sponsored GSMA Intelligence, a respected research firm, to produce the Green is Good for Business report series. This initiative aims to raise awareness and demonstrate the business value of adopting green practices within the telecoms industry.”
