Goldman Sachs Research

GS Sustain: Telecoms - The Fibre & 5G Decarbonisation Debate

Published on24 AUG 2022
Carbonomics Sustainability

Goldman Sachs Research analysts see fibre and 5G as critical technologies necessary to reducing the Information and Communications Technology (ICT) sector's overall carbon footprint and enabling low-carbon technologies across the broader economy, which we believe remains underappreciated by investors today, as evidenced by Diversified and Wireless Telecoms at -15% and -24% underweight in ESG funds today. GS Research analysts see three factors that could shift this sentiment, such as: 1) greater recognition of direct energy efficiency improvements of fibre and 5G vs. existing technologies; 2) fibre and 5G as critical enablers for scaling the digital economy, supporting additional indirect carbon benefits via smart grids and other Internet of Things (IoT) applications; and 3) greater clarity for Telecom's eligibility under the EU Taxonomy, which could see fibre and potentially 5G as aligned (green), serving as a key catalyst for recognition of the sector's low carbon contribution in the years ahead.

Goldman Sachs Research

GS Sustain - Telecoms: The Fibre & 5G Decarbonisation Debate

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