The big portion of greenhouse gas emissions is generated in our supply chain – an estimated 91%. Therefore, we work closely with suppliers to both push and enable them to transition to a low-carbon reality.
Telia Company has committed to achieve a climate-neutral value chain by 2030, including at least halving absolute emission that same year. We acknowledge that we cannot achieve our climate goals alone. Therefore, we extensively collaborate and co-create with our suppliers, customers, and other partners to accelerate progress. Our supply chain strategy consists of four pillars:
- Requirements through our Supplier Code of Conduct
All suppliers a required to adhere to Telia’s Supplier Code of Conduct. In 2021 we strengthened our requirements to match our environmental goals, including asking all suppliers to publicly commit to reduce their GHG emissions with the ambition level of meeting the 1.5°C scenario and set science-based targets. The requirements are available here.
- Climate criteria integrated in our supplier selection process
Each supplier receives a climate score which reflects the maturity of the suppliers’ climate work to date, including if the supplier is using renewable energy and if it has adopted science-based targets. This score is considered when selecting suppliers.
We engage with suppliers in various ways, in the day-to-day sourcing process as well as through meetings between top management of strategic suppliers. In such meetings we capture opportunities to highlight our expectations and the need for collaboration.
One of our goals is to get suppliers that represent 72% of total supply chain emissions to set science-based targets by 2025. By year end 2022, 35% of total supply chain emissions were covered by such targets, in some cases as a result of our engagement meetings. An additional 16% had committed to set such goals within two years.
In addition, we work with industry peers to engage with important supplier groups where e.g. circular approaches would make a big difference in terms of limiting both GHG emissions and other negative environmental impacts. One example is the Eco Rating of smartphones, launched in 2021 by five operators – Telia, Vodafone, Deutsche Telekom, Telefónica and Orange. The rating scheme, which is based on circular principles, drives transparency and comparability to help consumers identify the most environmentally sustainable mobile phones while encouraging suppliers that are manufacturing the phones to reduce the environmental impact of their devices already in the design phase. Another example is industry collaboration to create circular approaches for network equipment.
- Capacity building
Telia is a member of the Exponential Roadmap initiative, a cross-sector collaboration with the purpose of scaling initiatives to halve greenhouse gas emissions by 2030. Telia has been active in the creation of the initiative’s 1.5°C Business Playbook, which provides a framework for companies when they adopt an exponential trajectory to halve their emissions by 2030.
In 2020, we became a member of the 1.5°C Supply Chain Leaders initiative where we join forces with Ericsson, BT, IKEA, Unilever and others to create efficient methods for rapid emissions reductions in global supply chains. In 2021, the 1.5°C Supplier Engagement Guide was developed, as a collaborative platform with practical guidance for 1.5°C aligned targets and actions. Through this collaboration, we also support the SME Climate Hub, a one-stop-shop for small- and medium-sized suppliers to set climate goals and access tools and resources to facilitate progress.
More information about these initiatives is available below
1.5°C Supply Chain Leaders initiative
1.5°C Supplier Engagement Guide