As the topic for Environmental, Social and Governance (ESG) has evolved from a “nice to have” to a “must have” topic for towercos, scrutiny from shareholders, investors and other stakeholders inside and outside of the digital infrastructure ecosystem has also increased. Towercos operate and manage infrastructure that is highly exposed to criticism about visual and environmental concerns, so clear communication is essential to enable both their customers and the wider infrastructure market to understand the role and purpose of towercos and their impact. This applies to both listed and privately owned towercos as being able to demonstrate good credentials that align with the values of stakeholders brings trustworthiness.
Many towercos have committed to sustainability initiatives, but it is has become essential to carry out these initiatives as part of a comprehensive framework. In the digital infrastructure space, stakeholders can be different groups of people or entities with different priorities. Defining who these are and approaching them in a structured way can help address the concerns they have and enable effective collaboration to achieve cooperation in the longer term.
Analysys Mason have identified four types of stakeholders that towercos should consider – investors, customers, employees and local communities and municipalities.
With investors, for example, maintaining investor confidence is crucial. ESG engagement and long-term plans about it are expected to become a factor when decisions are made about investments. In cases where they are needed to facilitate an orderly transition to cleaner operations, towercos will have to demonstrate not only intentions but an execution plan as well. Companies who do not act on addressing current and future environmental concerns could face challenges in accessing capital or suffer reputational damage.
ESG and delivering connectivity in a sustainable way will be discussed at TowerXchange Meetup Europe in London on 16 and 17 May. Analysys Mason will be moderating an ESG focus group session. Join the event to find out more.
