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.

 

Hans Lötzer

Applying for a Board of Directors position

 

First and Last Name:  Hans Lötzer

Company Name: Hamburg Commercial Bank AG

Current position: Head of Project Finance Analysis, Director 

Company Type: Finance/Investment


Biography:

I am a Director at Hamburg Commercial Bank for Project Finance Analysis and currently and board member and the Treasurer of the FTTH Council Europe.  Overall I have more than 25 years in experience in structuring and underwriting of large scale financial transactions.  In my current role I oversee HCOB’s Project Finance Analysis department which is responsible for Structuring, Execution and Portfolio Management of infrastructure loan transactions, including the bank’s significant digital infra structure book. As part of this, the bank maintains and steadily grows a very meaningful portfolio of Fiber transactions in Europe and the US.  Effectively all Fiber loans which HCOB is originating or is invited to participate in are passing my desk.  Prior to this role I held management for positions in credit risk management in a wide variety of asset classes including i.a. national and international Real Estate, LBOs, Corporates and Shipping. I managed those portfolios and teams throughout growth, but also recessionary cycles.  I hold a university degree in Business Administration with majors in finance and audit. Moreover I am a certified banker (Bankkaufmann) and a certified restructuring advisor.  In addition to my role as board member and treasurer of the FTTH Council I serve as a board member in a small non-for profit organization supporting research activities in the maritime sector.  I am married and live with my wife and two children north of Hamburg, Germany.

Position statement:

Efficient and European wide Fiber rollout and operation is one of the essential infrastructure backbones of our future life and economies.  When I was asked to assume the Board and Treasurer’s position after the resignation of a colleague I did this because of importance of Fiber roll-out and operation in Europe as well as the FTTH Counsil’s outstanding work to drive FTTH throughout Europe. I could experience this especially by attending the FTTH Councils Conferences over the last years as well as various Fiber related events  Through my current and former positions I do have a deep inside in a wide variety of fiber business models and approaches and also broad knowledge about challenges coming from construction, but also from (difficult) consolidation trends.  On the back of this background I am able to take an unbiassed but vocal view on the many fiber related main topics not only from a financial, but also strategic and operational perspective.  I am convinced that the view of a bank as one important source of capital in the fiber business should be represented at the board of the FTTH Counsil Europe.  Being part of the board in the recent past I experienced not only a lot of fun working with a group of very talented people, but also  think that I made valuable contributions the board’s work especially from a financial perspective.  Therefore I would be pleased to further dedicate time and effort to support the development of the goals of the FTTH Counsil Europe.

Your past role(s) and activities in the FTTH Council Europe:

Board Member and Treasurer, regular attendee of the FTTH Council Europe's Conderence.

 

 

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