Sustainability by design: India’s telecom moves past optics

The problem with wallpapers is that they rarely last long. They fade, peel, or lose their grip. No matter how deftly they are pasted, they remain just that—pasted. Sooner or later, the illusion cracks, revealing that the green branches beneath are not real.

The same holds true when sustainability is applied like wallpaper—an afterthought or a quick cosmetic fix—on today’s massive, consequential, and ever-expanding digital infrastructures. The scale, complexity, and permanence of the carbon emissions generated by these digital turbines are staggering.

Every call made, every AI query typed, every reel scrolled through, every virtual meeting joined, and every OTT episode watched adds another layer of soot and guilt to the machines that power the connected world. And the picture is only getting murkier as 5G and 6G rollouts accelerate and artificial intelligence enters the scene with a loud, relentless drumroll.

How Black are our Digital Backyards?

A closer look at the data reveals a sobering reality.

A 2025 telecom consumer survey by McKinsey—conducted with 5,000 participants across five countries—found that 45% of retail customers value sustainability in their telecom providers. Yet, the telecom sector continues to lag behind others on several critical sustainability governance parameters, according to McKinsey’s benchmark of the Environmental, Social, and Governance (ESG) performance of 75 large global companies across sectors.

To trace this carbon trail, one must examine the multiple layers at which any telecom player impacts the environment. Scope 1 emissions cover direct impact areas such as vehicles and generators. Scope 2 emissions occur further along this chain and relate to how telecom companies power their fixed and mobile networks and data centres. Scope 3 emissions, meanwhile, extend across the entire ecosystem—encompassing the activities of partners, suppliers, and third parties, as well as the use and disposal of customer equipment and supply-chain components.

The 2025 Carbon Action Report by EcoVadis and BCG revealed that Scope 3 emissions are 21 times larger than Scopes 1 and 2 combined, yet only 24% of companies report on them, and a mere 8% have set reduction targets. According to a 2024 report by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA), 148 of the 200 companies surveyed reported electricity consumption totalling 518 terawatt-hours (TWh) in 2022—about 1.9% of the world’s total.

The report also highlighted that Scope 3 emissions—spanning material suppliers, outsourced device production, and the use of end products—are, on average, six times higher than the combined Scope 1 and Scope 2 emissions. Companies continue to struggle with this due to limited supplier data, double-counting, and inconsistent application of emission-allocation principles.

Data from the ITU further shows that in 2023, greenhouse gas emissions reported by 166 digital companies accounted for 0.8% of all global energy-related emissions. Electricity consumption by data centres—which power AI development and deployment—has been rising by 12% annually from 2017 to 2023, four times faster than global electricity growth. The ITU also reported that annual e-waste generation is increasing by 2.6 million tonnes per year and is projected to reach 82 million tonnes by 2030.

As of FY2025, 77.7% of India’s electricity is sourced from renewables, and the country’s emissions intensity (CO2e/Revenue) has reduced by over 80% since 2008, observes Guruprakash Sastry, Associate Vice President and Head – Climate Action at Infosys. “With rapid urbanisation and industrialisation bringing stress on resources, it is important to minimise impact from buildings and related infrastructure,” he adds.

Jameson Mendonca, Power Generation Business Leader at Cummins Power System, notes that under realistic scenarios, AI workloads alone could require 1–1.5 GW of continuous IT power—equivalent to 8.8–13 TWh annually—in India by 2030. “This translates into a significant new draw on grids, water resources, and capital expenditure for cooling and power infrastructure,” he explains. “Recent analyses suggest that while AI’s share of data centre power today remains in the single-digit to low-teens range, it could climb to 20–40% by 2030, fundamentally reshaping the power-consumption profile of digital infrastructure.”

According to Arvind Khurana, Regional VP and Country Head for Cloud and Network Services at Nokia India, telecom networks today account for a substantial share of global energy consumption and carbon emissions, particularly as 5G densifies networks and data traffic continues to soar.

Scope 3: The Toughest Nut to Crack

The telecom industry accounts for a significant share of global greenhouse gas emissions, roughly 3–4% of the total. According to BCG’s Telco Sustainability Index 2024, key categories such as commitment to sustainability, emissions and energy management, and customer enablement either showed no improvement or declined.

The study also noted that in the area of biodiversity, telecom operators are only beginning to recognise their potential impact. Alarmingly, the proportion of companies setting emission-reduction targets dropped by four percentage points.

Scope 3 emissions account for 81% of the industry’s total. The index found that only a few telecom players have managed to reduce these emissions, largely due to weak reporting on leased upstream and downstream assets. Even companies with net-zero commitments often lack comprehensive long-term roadmaps and measurable interim milestones. Many remain entangled in the complexities of vast, global supply chains—not only in devices but also in networking equipment.

“Scope 3 is the toughest challenge,” explains Jaspreet Singh, Partner and Chief Revenue Officer – Consulting, Grant Thornton Bharat. “Over 70% of a telco’s emissions come from its supply chain—chipsets, device manufacturing, tower equipment, and logistics. Unlike Scope 1 (direct) or Scope 2 (purchased energy) emissions, Scope 3 requires alignment with vendors across continents. It is difficult because telcos do not control their supply chains end-to-end, yet regulators and stakeholders are increasingly demanding disclosure.”

Mendonca adds that Scope 1 and Scope 2 emissions for data centres are expected to rise in the short term. “Hence, there is a huge focus on reducing the carbon footprint of these categories through the use of renewable energy and hybrid solutions,” he notes.

The challenge extends beyond telecom operators to their vendors. The Telco Vendor Sustainability Analysis Report 2025 by ResearchandMarkets estimated that total emissions (Scope 1 + Scope 2 market-based + Scope 3, or “S1–3m”) for vendors reached 481 million metric tonnes of CO2-equivalent in 2023, while S1–3m emissions stood at 254.7 metric tonnes per USD 1 million in revenue, down from 271.9 in 2022. The scenario is expected to become even more complex as AI advances. OpenAI, for instance, has plans for data centres valued at nearly USD 850 billion, while HSBC analysts forecast that global AI infrastructure investment could reach USD 2 trillion.

Amid this growing challenge, many telecom companies have yet to grasp or disclose the scale of their climate impact fully. The 2024 EY Climate Action Disclosure Barometer found that the quality of climate-related disclosures by telcos and technology firms stands at just 55%—well below the 94% coverage benchmark. Only 36% reference climate-related issues in their financial statements, and just 51% currently disclose transition plans for adopting renewable energy.

Flipping the Dip with Design Thinking

The answer, unsurprisingly, lies in scraping off the wallpaper and doing some deep, structural cleaning—followed by genuine renovation. Not the kind that involves dusting carpets or hanging new curtains, but a fundamental rethinking of networks, infrastructure, and operations at the design level.

A fundamental transformation begins when sustainability moves from an aesthetic upgrade to an architectural principle. Carbon consciousness must seep into the blueprint of how networks are conceived, built, and operated. Telcos can begin by implementing software-driven network reconfigurations to enable remote monitoring, management, and equipment upgrades—minimising travel, downtime, and energy use.

Another promising step is network sharing. As McKinsey observed, infrastructure sharing can reduce total emissions by up to 10 per cent, primarily from Scope 3, while cutting material consumption by over 30 per cent—without compromising network quality.

Design-level thinking also means choosing low-emission materials for constructing towers, devices, and network equipment, and embedding circular-economy principles at every stage of product and infrastructure life cycles.

“Design thinking can embed sustainability at every stage,” affirms Singh. “At the network-planning stage, this means prioritising fibre over copper and reducing tower duplication through infrastructure sharing. In hardware manufacturing, it involves using eco-friendly materials and modular designs that extend equipment life. In software and energy management, AI/ML-led traffic routing can optimise power use and reduce idle energy consumption. This approach turns sustainability from an afterthought into a core design principle.”

Singh cites real-world examples: Bharti Airtel’s ‘Green Towers’ project, which reduces diesel dependence through hybrid solutions; Vodafone Group’s circular economy model for network hardware reuse; and NTT Japan’s use of AI to optimise energy consumption across its networks.

Khurana adds: “From energy-efficient chipsets to AI/ML-driven software, we are working to ensure that networks themselves become inherently greener. With our AI/ML-based Energy Efficiency solution, part of our Autonomous Networks portfolio, we are helping telecom operators cut Radio Access Network emissions by automating idle-equipment shutdowns and optimising radio transmission power—all while maintaining service quality. These coordinated efforts across hardware, software, and infrastructure can deliver significant environmental gains.”

Sastry takes a broader view of AI’s role: “AI can be one of the most powerful enablers of positive climate goals, as it can analyse vast datasets, optimise systems in real time, and drive smarter decisions.”

Mendonca believes that diesel gensets will remain indispensable as reliable backup systems to meet rising power demands and ensure uninterrupted uptime. “At the same time,” he adds, “global forums are actively pursuing greener pathways, with data centres worldwide exploring solar integration, renewable-backed grids, and hybrid solutions as part of their sustainability roadmaps. India’s data centre sector is at a defining inflexion point—balancing the need for resilient backup power with the responsibility to advance toward greener, more sustainable energy in the age of AI.”

Mendonca notes that Cummins is already helping data centre customers transition to cleaner alternatives—supporting the use of alternative fuels, optimising engines to minimise NOx formation, and deploying scrubbers, filters, and other after-treatment systems to further reduce emissions.

From Grey to Green to Greener

All is not dull in the telco green war rooms. McKinsey estimates that nearly 60% of an integrated operator’s emissions can be reduced for less than USD 100 per metric tonne of CO2. Up to 15% of decarbonisation measures could even generate cost savings exceeding the initial investment. In fact, the study found that half of all emissions can be cut by using green electricity to power networks, data centres, and the upstream supply chain.

The report, Greening Digital Companies 2025, by the ITU and WBA, reinforces this optimism. Of the 200 digital companies studied, 23 operated on 100% renewable energy in 2023, up from 16 in 2022. Moreover, 49 companies released standalone climate reports, signalling greater transparency and accountability. Even in the complex domain of Scope 3, progress was visible: the number of companies publishing targets for indirect emissions from supply chains and product use rose from 73 to 110.

So, can telecom industry players go green in a scalable, pragmatic, and effective way?

“Yes, but the journey is complex,” responds Singh. “Telcos operate largely on legacy infrastructure—copper networks, diesel-powered towers, and ageing switching systems—all of which inherently carry higher carbon footprints. Transitioning to greener operations demands a phased shift: modernising networks, decommissioning legacy assets, and embedding renewable energy into everyday operations.” Pragmatism, Singh notes, lies in scalable interventions—energy-efficient base stations, network sharing, and fibre-first rollouts—rather than expecting overnight transformation.

Emerging advances are already showing promise. Fibre-first deployments, energy-efficient 5G and 6G architectures, AI-powered network optimisation, renewable-powered data centres, and innovations in passive infrastructure collectively point toward a future of faster and cleaner connectivity. Singh explains, “Fibre-first deployments can cut energy use by up to 70% compared to copper. Newer 5G and 6G standards are 10 times more energy-efficient per bit, while AI-driven optimisation using predictive load balancing significantly reduces energy waste. Renewable-powered data centres with solar-backed edge sites and green cooling systems also reduce duplication and emissions.”

Mendonca adds that as data centres grow in scale, sustainability is emerging as a key competitive differentiator. “This is where Life Cycle Assessments and Environmental Product Declarations become vital,” he says. “For a data centre, this spans both upstream, or embodied impacts—such as construction materials, IT equipment manufacturing, and cooling and power infrastructure—as well as operational impacts like electricity consumption.”

Carbon auditing tools now offer deeper visibility, while digital twins and simulations help telcos model greener network configurations before rollout. These tools enable data-driven decision-making—for example, simulating the emission impact of diesel versus solar energy mixes for towers. Compliance is not merely a nudge but a catalyst, Singh observes: “Regulatory pushes like India’s ESG disclosure framework or the EU’s Corporate Sustainability Reporting Directive compel telcos to act faster. Beyond compliance, early movers gain investor confidence and brand advantage in an ESG-conscious market.”

Ultimately, green consciousness is no longer a nice-to-have accessory—it is a strategic necessity. Sustainability by design marks a pivotal shift for the industry. As the 2025 Carbon Action Report by EcoVadis and BCG cautions, neglecting supply chain emissions (Scope 3) could cost companies over USD 500 billion annually in global liabilities by 2030. Yet the same report offers hope: investing in climate action for supply chains today can deliver a three- to sixfold return through avoided regulatory costs and operational efficiencies.

Unless it is O Henry’s The Last Leaf, it is far better to grow a real leaf than to paint one. Last or first, on a corporate sustainability report or a balance sheet, a green leaf always brings hope.