Climate-related risks and opportunities
Understanding climate change and associated climate risks is fundamental to future-proofing the Tele2 business. Through the implementation of the Task Force on Climate-related Financial Disclosures’ reporting recommendations, we have made available to stakeholders our current knowledge about the climate risks and opportunities most material to us.
Reducing our climate impact to lead in sustainability
Tele2 has set an ambition to lead in sustainability. To achieve this, we launched a new sustainability strategy in 2021 that includes Advance circular economy to combat climate change as one of its four focus areas. We have also set one of the most ambitious Science-Based Targets to date for greenhouse gas emissions reduction for any telco in the world.
It is important for us to remain a leading operator. This means we not only need to mitigate our contribution to climate change, but we must also understand the impact that climate change is having and can have on our business. To that end, we are reporting for the first time on climate risks following the recommendations of the Task Force on Climate-related Financial Disclosures - TCFD. This follows our ambition to tackle climate change as manifested in the adoption and approval of our Science-Based Targets in line with the 1.5°C target.
Summarizing the implications of climate change on Tele2
Tele2 creates value through connectivity. As a result, business continuity is critical for us - today and in the future. Managing the risk of physical impacts resulting from climate change on networks is already part of Tele2’s current operations. Risk parameters such as water damage and storm frequency are included when assessing the placement of base stations and data centers, as well as in planning for network redundancies. The increased occurrence of such events can already be linked to climate change and, regardless of what future trajectory our carbon emissions will follow, extreme weather and damage from storms are set to continue given the accumulative nature of greenhouse gases. These impacts will increase substantially in a business-as-usual scenario but will be even more noticeable in a future in line with the Paris Agreement climate scenarios.
One conclusion to be made when assessing both business-as-usual and the Paris Agreement scenarios is the need to understand and monitor the development of both physical and transition risks in order to maintain a resilient business model. Both these types of types will have an impact on Tele2 regardless of what the future looks like. The scenario analysis presented in the TCFD report should not be interpreted as a prognosis, rather it is a way to gain a better understanding of a broad spectrum of climate-related risks and their impact in the short- and long-term. We intend to develop metrics to assess the potential financial impact of the climate risks outlined in the report. Read more about Tele2’s climate-related risks and opportunities in the TCFD report for 2020 and in the Annual and Sustainability Report 2021.