Climate-related risks and opportunities
Understanding climate change and the 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 invite our stakeholders to take part of 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 for greenhouse gas emissions reduction of any telco in the world, to date.
For Tele2 it is important to remain a leading operator, and to be that, we not only need to mitigate our contribution to climate change, we must also understand the impact that climate change has and can have on our business. To that end, we are for the first time, reporting 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 implication of climate change on Tele2
Tele2 creates value through connectivity, and as such, business continuity is critical for Tele2 - today and in the future. Managing the risk of physical impacts on the 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. Already today, the increased occurrence of such events can 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. It will increase substantially in a business-as-usual scenario but will be highly noticeable even in a future in line with the Paris Agreement.
A conclusion to be made when assessing both scenarios is the need to understand and monitor the development within both physical and transition risks in order to maintain a resilient business model, as both risk types will have an impact on Tele2 regardless of how the future looks.The scenario analysis presented in the report should not be interpreted as a prognosis. It is rather a way to gain a better understanding of a broad spectrum of climate-related risks and their impact in the short- and long-term perspective. Going forward, we intend to develop metrics to be able to assess the potential financial impact of the climate risks. Read more about Tele2’s climate-related risks and opportunities in the TCFD report for 2020.