Australian telecommunications giant Telstra has achieved an ‘A’ rating from CDP for Supplier Engagement, the highest possible accolade in this area
Telstra, Australia’s leading telecommunications firm, not only champions sustainability through ambitious climate targets, but also initiates substantial changes within its comprehensive supply chain.
The organisation has achieved an ‘A’ rating from CDP (formerly the Carbon Disclosure Project) for Supplier Engagement, the highest possible recognition in this area.
“This recognition reflects our leadership in climate governance, Scope 3 emissions and value chain engagement,” says Simon Antony, PM Sustainable and Responsible Procurement, Telstra.
“I’m proud to work for a company that takes climate action seriously and strives to embed sustainability into every part of our operations.”
Telstra’s sustainability leadership
Telstra’s sustainability strategy is founded on the principle that technology should be harnessed for positive environmental and social advancements. The company’s leadership emphasises its commitment to supporting communities and the environment through responsible conduct and innovative solutions.
“We are committed to supporting our customers and communities by contributing positively to society and the environment,” add Vicki Brady, CEO and Managing Director, and Craig Dunn, Chair, in Telstra’s Bigger Picture Sustainability Report.
“This means not only getting the basics right to be a responsible and trusted business, but also working to create outcomes in the best interest of all Australians.”
Central to Telstra’s strategy are climate action, circular economy adoption and responsible business practices. Targets include a 70% reduction in Scope 1 and 2 emissions by 2030, compared to a 2019 baseline, and a 50% reduction in Scope 3 emissions by the same year. Already, by 2024, the company had reduced these emissions by 37%.
In addition to reducing emissions, Telstra aims to achieve renewable energy generation equivalent to 100% of its consumption by 2025, evidenced by its investment of over A$1.4 billion (approximately US$936.5 million) in renewable energy projects.
Strategic supplier engagement
Understanding that its supply chain contributes significantly to its environmental impact, Telstra prioritises engaging suppliers to enhance sustainability.
Since 2020, the firm’s partnership with CDP – making it the first Australian member of CDP’s Supply Chain Program – has been instrumental in this process. This collaboration provides training, tools and support to medium and large suppliers for tracking environmental impacts and setting reduction goals.
Between 2020 and 2024, Telstra ensured about 80% of its annual spending, affecting 295 suppliers, was reported through CDP. This transparency enables the identification of environmental challenges and development of decarbonisation plans, with a focus on including emissions reduction clauses in contracts and seeking alignment with Telstra’s climate objectives.
By the end of 2023, 56 major suppliers had committed to these new directives.
CDP ‘A’ rating
The CDP’s Supplier Engagement Rating (SER) evaluates how effectively companies work with their suppliers regarding climate impact.
In the 2024 disclosure cycle, Telstra earned an ‘A’ rating, placing it among global leaders. The rating recognises Telstra’s extensive supplier mapping and comprehensive supplier governance framework that includes environmental, social and other risk categories.
Telstra’s collaborative approach emphasises involving suppliers in drafting contracts and offering them resources to enhance their climate capabilities.
This method allows suppliers of varying sizes to participate in the sustainability journey, heightening the decarbonisation impact across the value chain.
Advancing sustainability efforts
Beyond supplier engagement, Telstra’s sustainability accomplishments extend to other areas.
The company reported a 95% recycling rate for network waste and has recycled or reused over 710,000 devices by 2024. It is also transitioning from carbon offsets to direct emissions reductions to enhance transparency and effectiveness.
Furthermore, Telstra’s social initiatives bolster its environmental efforts, with considerable investment in digital inclusion, support for First Nations enterprises and protective programs for vulnerable customers.
Overall, these collective efforts showcase Telstra’s commitment to integrating sustainability into every facet of its operations.
Source: https://supplychaindigital.com/
