How ESG standards are embedded in towerco operations
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How ESG standards are embedded in towerco operations

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American Tower Corporation’s (ATC) Sustainability Executive Report 2023 is a model example of how towercos have an invaluable role to play, both organisationally within and to the general public, in creating a culturally, ethically and environmentally sound operation.


ATC’s ESG goals are all encompassing: within Environment, key targets met were Greenhouse Gas (GHG) Emissions Reductions and increasing on-site renewable energy generation; its Social agenda was geared towards working conditions for employees, including DEI, and community impact and digital literacy; its Governance mission was to create effective ethical and accountable decision making at the top of the organisation.

With a global digital infrastructure network of 224,669 towers ATC is the second largest towerco in the world and its passive telecom infrastructure footprint includes the behaviours of its employees, customers, vendors, stockholders and communities. ATC also has a data centre business, with facilities and assets across 11 US markets. Therefore, ethical and sustainable operations are integral to its business and culture.

Its business model, however, is focused on developing and leasing neutral-host infrastructure to multiple communications providers. This inherently reduces the telecommunications industry’s overall environmental footprint. A shared infrastructure approach, the company said, has brought environmental conservation benefits by reducing land use and the consumption of natural resources, whilst also supporting reforestation efforts in local communities.

New sites also go through environmental assessments and mitigation measures, minimising impact on local ecosystems and communities. ATC supported the planting of over 150,000 trees around the world, and protected over 5,000 bird nests around its infrastructure.

ATC’s Sustainability Executive Report 2023 pointed towards notable ESG achievements, including:

- Achieved continued reduction in combined scope 1 and 2 GHG emissions

- Increased on-site renewable energy generation by 40% globally, growing capacity from 87 megawatts (MW) to approximately 120 MW across over 18,000 sites, producing more than 100 gigawatt hours of clean energy

- Protected nearly 5,000 bird nests and supported the planting of over 150,000 trees worldwide

- Distributed more than US$4mn through workplace giving and matching programs, volunteer events, disaster-relief donations and contributions from the American Tower Foundation

- Opened 144 new Digital Communities, raising the total to more than 580, serving over 720,000 people across 15 countries with more than 450,000 training course certificates awarded since inception

Renewable energy focus

In 2023, ATC further reduced its greenhouse gas emissions, largely as a result of its successful Power-as-a-Service programme. “This initiative focuses on renewable energy generation, energy efficiency and advanced energy storage systems, and has played a crucial role in bolstering our environmental efforts,” said Steve Vondran, President and CEO, American Tower.

"Additionally, our growing Digital Communities program has enhanced education, healthcare access and financial literacy in underserved markets. I’m proud of our employees' commitment to supporting our stakeholders while making a positive global impact.”

Its energy storage capability revealed an increased deployment of lithium-ion battery energy storage systems, in the process upping energy storage capacity by more than 40% to approximately 850 megawatt hours (MWh), solidifying renewable energy’s role within its passive infrastructure footprint.

ATC’s Green Sites program was expanded during the year, developing over 550 new sites with a major customer in Africa. Site design paid particular attention towards renewable energy sources, energy-efficient equipment and sustainable practices to minimise environmental impact and reduce operational GHG emissions. 99% of tower steel waste generated, totalling 10,700 tonnes, was either recycled or reused.

Next year’s sustainability report is likely to appear significantly greener as American Tower is disposing of 76,042 of its dirtiest towers in India which will be transferred over to Brookfield-owned Summit Digitel via its infrastructure investment trust later this year. The company notes that this will have a material impact on future reporting, making the towerco less polluting in year one, but slow potential improvements thereafter.

Social and governance measures

Many social initiatives, including employee development and wellness programs, safety and security measures, DEI efforts, as well as community and philanthropic support has helped to bolster ATC’s value of creating a people and community focused organisation.

From an operational standpoint, focus has been towards providing comprehensive safety training and certification. Robust vendor and supplier management, and safety audit measures and input in industry safety groups is etched into the daily working practices of site engineers.

The company has set itself a target, in particular, to help 2mn people by providing them digital literacy support, in an attempt to create the next wave of digitally-minded future talent. These include promoting digital literacy, community education, career development, healthcare access and financial literacy.

Governance measures have been strengthened by the company to ensure transparent decision making, regulatory compliance, as well as effective reporting and accountability.

These such practices have etched sustainable, environmental and social principles at the heart of its organisation, and proof that the tower industry can be a force of change of good.

You can read American Tower’s 2023 Sustainability Executive Report here: pardot.americantower.com/l/25692/2024-07-16/7vpwpl/25692/1721136244NRF47Zs7/american_tower_2023_sustainability_executive_report.pdf

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