Sustainability Committee


Jeroen Kanselaar, Chair of the Sustainability Committee of the FTTH Council Europe, provides insights from the Sustainability Committee,  highlighting the key sustainable challenges facing the fibre industry both in the context of the EU taxonomy and of  the energy 2030 targets. Additionally, Jeroen explains why we should consider fibre as a "green asset", what positive impacts it triggers and much more:

  1. What are the biggest sustainability challenges currently facing the fibre industry, and how does the committee address these?
  2. You recently launched the FTTH Carbon Footprint Cooperative Platform; could you tell us a bit more about this initiative, and how the industry can benefit from joining?
  3. In order to meet the energy targets for 2030 and reach the objectives of the European Green Deal, it is vital to direct investments towards sustainable projects. Why do you think fibre should be considered as a "green asset” for investors in the context of the EU taxonomy?
  4. What should we expect from the committee in the months ahead?

Read the full interview below to get the answers to these questions.

 

What are the biggest sustainability challenges currently facing the fibre industry, and how does the committee address these?

The biggest challenge is to reduce the impact of carbon emissions as individual companies and as an industry as a whole. To do this, we need each other, because we are all part of the same value chain. Until about two years ago, many companies worked to reduce their own direct carbon emissions, for example by purchasing renewable electricity. Currently, we see companies aiming to reduce their suppliers' CO2 emissions (scope 3) as well. This creates a greater dependency between the chain partners. At the same time, this also provides opportunities to start sustainability projects with each other so that there is a win-win situation for both parties. A win-situation for the manufacturer because they develop a more environmentally friendly and future-proof product and a win-situation for the customer because this contributes to the reduction of their scope 3 emissions.

Another challenge is raw materials and materials used within our industry. This includes both scarce and environmentally unfriendly raw materials. As part of circularity, more diverse and new ways of recycling materials and equipment need to be developed. But this will not be enough, new developments are also needed such as raw materials and materials from waste streams originating from other sectors for production in the FTTH sector.

An operational challenge is the increasing regulations and reporting requirements around sustainability. On the one hand, this is a very positive development because it provides more transparency about the results achieved within the sector. But it also results in an increase in different reporting systems, which requires companies to spend extra time. The same also applies to companies that, because of the upcoming obligation, have to make important preparations to be able to report according to this directive from 2025-2026.

In the picture above, the speakers during the Sustainability panel at the FTTH Conference 2024 in Berlin.

 

You recently launched the FTTH Carbon Footprint Cooperative Platform; could you tell us a bit more about this initiative, and how the industry can benefit from joining?

The purpose of the FTTH Carbon Footprint Cooperative Platform is to calculate and provide insight into the CO2 emissions of the entire FTTH sector in Europe. This is unique and as far as we know no other industry association facilitates and enables this in this way. This is done in the Platform by having participants calculate or report their entire carbon footprint (scope 1, 2 and 3) if they already calculate it independently. Each participant has a certain position in the value chain and therefore one party's CO2 emissions have an impact on another party. By bringing together the CO2 data of the individual participants, we can calculate the CO2 emissions of the whole sector. In the pilot project, we developed the Sector Observatory model that allows us to calculate the average CO2 emissions for the different links within the sector, as well as metrics such as CO2 emissions per household.

Carbon assessment is currently becoming mandatory for organizations of various sizes. However, it can be complex to organize and process. The Platform aims to ensure that companies can use the same standardized methodology and improve the quality of sustainability information for investors and partners throughout the chain. This approach will also enable communication on decarbonization of the entire FTTH sector and create synergies around greenhouse gas (GHG) emission mitigation. The more companies participate, the more accurate the reporting will be and the easier it will be to identify improvement opportunities and levers for individual companies and the sector.

 

In order to meet the energy targets for 2030 and reach the objectives of the European Green Deal, it is vital to direct investments towards sustainable projects. Why do you think fibre should be considered as a "green asset" for investors in the context of the EU taxonomy?

A very important “green” advantage of fiber optics is that the environmental impact of fiber optic networks is many times lower than that of other connectivity technologies, both in terms of material use and energy consumption. Using a fiber network instead of a copper network, for example, already reduces carbon emissions by default.

Developments within the equipment in the networks have made them significantly more energy efficient in recent years, and this development will continue in the coming years. Manufacturers of cables, ducts, CPEs and other products and materials are making their products increasingly circular. This means that the industry is future-proofed and becoming greener because of these innovations.

In addition, the fiber sector has a ‘positive-impact’ side. This means that applications of fiber networks provide environmental benefits and a reduction in carbon emissions. This impact cannot be underestimated. The Science Based Target initiative (SBTi) indicates that digitization can lead to a 15% reduction in carbon emissions in other industries. While the FTTH Carbon Footprint project shows that CO2 emissions from the FTTH sector are only 1.1% of the total CO2 emissions from all industrial processes combined.

Looking more specifically at the FTTH sector, the positive impact is also significant. The FTTH network allows people to work from home and do online shopping, resulting in a reduction in the CO2 emissions they produce.

 

What should we expect from the committee in the months ahead? 

The continued rollout of the FTTH Carbon Footprint Cooperative Platform is a key activity of the committee for the remainder of this year (2024). We want to encourage as many members as possible to participate so that together we can generate more accurate data on the sector's carbon footprint. In addition, we would like as many participants as possible so that we can exchange more knowledge on the (online) Platform and thus, as a committee and council, unburden our members. This way we offer even more added value to our members.

In addition, we continue to share knowledge on the implementation of the Corporate Sustainability Reporting Directive (CSRD). My goal is not only to share knowledge, but that we can develop tools that many of the members can benefit from.

Circularity is an inseparable part of sustainability and as a committee I want to flesh this out in the coming months. As members of the committee, we need to work on definitions of circularity, think about developing standards and possibly create a circularity formula to express the circularity of a product in a metric.

In the picture above, Jeroen Kanselaar during the workshop titled "Making the leap from ESG checkbox to business reality" at the FTTH Conference 2024 in Berlin.

 

More about Jeroen Kanselaar


 

 

Jeroen Kanselaar joined Eurofiber as Manager ESG in June 2022. Prior to that, spent 25 years as an external consultant, providing strategic and tactical advises to large mix of companies and governments. For the last 15 years worked exclusively as an external consultant on consultancy projects focused on sustainability and circularity. Projects related to sustainable strategies and policies for companies and governments as well as making buildings and products more sustainable, amongst others as a Cradle to Cradle consultant. Making products more sustainable and more circular The drive in my work is to create positive impact and minimize negative impact.

 

Unlocking a greener Europe with energy-efficiency labelling of broadband equipment

Member company: S&T Isktratel
Country or geographical scope: Global
Period: 2022 and beyond
Company type: Vendor/Reseller
Product/service category involved: All broadband equipment

Abstract

To make environmentally responsible decisions, network operators need credible figures about power consumption of the broadband equipment they procure and use.

The introduction of energy-efficiency labels allows them to make well informed decisions and reduce their carbon footprint. The labels state a product's power consumption and the level of compliance with the Code of Conduct on Energy Consumption of Broadband Equipment as a framework for providing credible and comparable data.

S&T Iskratel believes that the whole broadband industry needs to join the initiative, help operators effectively reduce the environmental impact, and take a positive step towards a greener Europe.


Context

With the explosion of data traffic and the energy consumption of data transmissions increasing, undertaking steps to reduce the carbon footprint is the responsibility of the entire telecoms industry. In their effort to reach net zero emission targets, operators' attention has rightly shifted to utilising solutions that are more energy efficient: switching from copper to fibre [1][2], and selecting PON over P2P [3][4].

To make environmentally responsible decisions, operators need credible and comparable figures about power consumption of the broadband equipment they procure and use. At present, however, they have no tools to compare the products – they can receive data from equipment vendors, but there is nothing to help them compare the power-consumption figures. Even worse, they get exposed to misleading information and greenwashing.

Greater levels of transparency are needed.

The task for the entire telecommunications industry – and equipment vendors in particular – is to provide credible and comparable data about power consumption, and facilitate well-informed decisions that will help operators reduce their carbon footprint and environmental impact.

Solutions

The broadband industry already has the framework for credible and comparable power consumption figures in place: The Code of Conduct on Energy Consumption of Broadband Equipment [5] published by the European Commission's Joint Research Centre.

Specifically, the Code of Conduct (CoC) sets the limits of power consumption of broadband equipment, and specifies the test methodology. All (voluntary) signatories commit themselves to achieving the power consumption targets, and to publicly disclosing power consumption of their broadband equipment.

After having signed the Code of Conduct in early 2022, S&T Iskratel has fully committed itself to ensuring that its broadband-access equipment complies with the limits on power consumption imposed by the code, and to providing full disclosure and transparency to customers, users and general public.

For the operators, credible power-consumption figures are the first piece in the puzzle. S&T Iskratel has decided to make a step forward and provide also the “missing piece of the jigsaw” to unlocking a greener Europe and reducing operators’ carbon footprints, and introduce energy-efficiency labels.

In addition to power consumption (which is measured following test methods in the CoC), the labels state the product's level of CoC compliance, provided as a percentage of the limit set by the CoC. Similar in design to those used for energy classes of domestic appliances, the labels are easy to read and understand for operators and end-users alike.

The two labels below provide examples for labels of a compact OLT and of a home gateway.

S&T Iskratel is committed to label all its new broadband equipment; specifically, Iskratel Lumia optical line terminals and Iskratel Innbox customer-premises equipment. The labelling improves credibility and comparability, and allows operators to make well informed decisions when selecting products to put into their network.

S&T Iskratel believes that undertaking the steps to reduce the global warming is the responsibility of the entire telecommunications industry, and that everyone in the value chain – vendors, operators, end users, regulators and authorities – must participate in reducing the carbon footprint of their activities.

S&T Iskratel repeatedly calls on the whole industry to join the initiative and take a positive step towards a greener Europe with industry-wide adoption of energy-efficiency labelling. This will help operators and end users correctly estimate the contribution of electricity generation to their overall carbon footprint, and effectively reduce their negative impact on the environment.

Results

Since spring 2022 when the initiative was first presented, S&T Iskratel received impressively positive feedback from European operators. Their interest has proven that they understand their responsibility in contributing to limiting the global warming, and that they understand the role of their equipment vendors in the supply chain.

Besides lower carbon footprint as a result of deploying lower-consumption equipment, operators benefit from lower electricity costs. As a standout example, an established and rapidly growing full-fibre operator has realised that the investment in switching to S&T Iskratel's OLTs with record-low power consumption returns in 3-5 years, solely thanks to the energy savings. The operator's investment decision was based (also) on credibility of figures on the product's energy-efficiency label.

Conclusions

While operators understand that switching from copper to fibre (and to PON in particular) can reduce their energy consumption and the related carbon footprint by orders of magnitude, they still lack the tools to compare various vendors' products. Widespread, industry-wide adoption of energy-efficiency labelling will address the need, allowing operators to follow their sustainability strategy, avoid the traps of greenwashing and base decisions exclusively on credible and comparable data.

Further reading

[1] Whitepaper "Telecom Environmental Sustainability", https://www.iskratel.com/en/resources/white-papers-and-articles/telecom-environmental-sustainability

[2] Blog "Environmental sustainability: Are you a part of the solution?", https://www.iskratel.com/en/resources/industry-insights/y2020/m04/1159-Environmental-sustainability-Are-you-a-part-of-the-solution

[3] Whitepaper "FTTH: A Catalyst for Sustainable Action", https://www.iskratel.com/en/resources/white-papers-and-articles/ftth-a-catalyst-for-sustainable-action

[4] Blog "Deploying the right fibre-access technology to unlock a more sustainable future", https://www.iskratel.com/en/resources/industry-insights/y2021/m11/1312-Deploying-the-right-fibre-access-technology-to-unlock-a-more-sustainable-future

[5] Code of Conduct on Energy Consumption of Broadband Equipment, https://e3p.jrc.ec.europa.eu/publications/eu-code-conduct-energy-consumption-broadband-equipment-version-80-current-version-valid

Contact

Tomo Bogataj, Head of Broadband Marketing, S&T Iskratel
t.bogataj@snt-iskratel.si

 

 

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