Summary Bullets:
• Orange and Camusat are looking jointly to decarbonize the impact of greenhouse gas (GHG) emissions on telecoms infrastructure.
• Reducing Scope 3 (indirect) GHG emissions is a complex and substantial challenge as it accounts for over 80% of total emissions for Orange.
Orange is joining forces with Camusat to accelerate the decarbonization of its telecoms infrastructure in what it claims to be ‘a first-of-its-kind agreement’ that commits its suppliers to reducing GHG emissions. The plan sets measurable targets for the reduction of CO2eq for the products and services Camusat provides to Orange. Co2eq stands for ‘carbon dioxide equivalent,’ a measure of global warming potential that converts amounts of other gases to the equivalent amount of carbon dioxide.
Like many telecoms service providers, Orange is actively looking to become a net-zero carbon company and has set itself a target date of 2040. After addressing Scopes 1 and 2 (which are more directly controlled) the challenge ahead is Scope 3, covering emissions from other organizations along the supply chain. This accounts for more than 80% of Orange’s (and most telecoms companies’) GHG emissions. It therefore represents the most difficult challenge and most significant opportunity when it comes to reducing carbon emissions. This also holds true for enterprises using telecoms services – they also need to account for their own GHG emissions and rely increasingly on data from their suppliers and service providers so they too can hit their carbon reduction targets.
To date, there have been few examples of Scope 3 initiatives simply because it is so difficult a challenge. But telecoms companies and the tech sector as a whole continue to lead in environmental, social, and governance (ESG) programs. Scope 3 remains ‘the elephant in the room’ as it involves areas outside of direct control. However, indirect control can be used by prioritizing GHG reduction targets and provable achievements when selecting partners. This is already happening to an extent in contracts, for example with governments requiring certain targets to be met – not only in GHG emissions, but also in terms of diversity measures.
Orange’s ‘partners to net-zero carbon’ program also highlights the growing divergence between Europe, many Asia-Pacific countries, and the US under Trump’s administration. GlobalData already highlighted this trend in its forecasts (2025 Enterprise Predictions: ESG in Tech, January 31, 2025), identifying the challenge being faced by tech companies. Fundamentally, ESG targets have two key aspects: sustainability as a goal to tackle the climate crisis; and good governance and social goals to improve performance, relationships with key stakeholders, and compliance with regulations.
In the current divergent world, it has become increasingly clear that ESG needs to address ‘facts not faith.’ ESG can no longer be a tick-box activity but must prove its value commercially. In the US in particular, pragmatism will have to be the order of the day given the current administration’s assault on diversity targets and denial of climate change – but the new president has at least underlined the need for fact-based commercial evidence of ESG benefits.