Globe Telecom Achieves CDP Climate Leadership Rating Marking Philippine Telecommunications Environmental Milestone

Globe has been recognized as a Climate Leader by CDP after earning an A- score for Climate in 2025, marking the company’s entry into the leadership ranking under the global environmental disclosure platform. The Philippine telecommunications provider also received a B score for water security in its first year of assessment, reinforcing its environmental action in an industry facing mounting pressure to decarbonize operations and reduce carbon emissions.

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Understanding CDP’s Global Environmental Disclosure Framework

CDP is a global nonprofit that runs the world’s most comprehensive environmental disclosure system, used by investors, governments, and capital markets to assess how organizations manage climate change, water security, and deforestation. Its scoring framework evaluates companies based on the completeness of disclosure, depth of risk awareness, quality of management, and evidence of leadership through strategy and performance.

In 2025, over 22,100 companies disclosed environmental data through CDP, representing more than half of global market capitalization and including some of the world’s largest and most impactful companies. Meanwhile, over 1,000 cities, states and regions—representing over one billion people—also disclosed through the platform, demonstrating the breadth of CDP’s reach across public and private sectors globally.

CDP scores matter to businesses and investors because they serve as independent benchmarks on how companies are addressing climate risks. On average, companies that disclose through CDP cut their emissions by 7 to 10 percent within two years of an investor request, demonstrating that transparency drives measurable environmental action and performance improvement.

Globe’s Climate Action Journey and Science-Based Targets

The company’s A- climate score reflects years of deliberate work to understand and reduce its environmental impact across operations, network infrastructure, and value chain. In 2021, Globe conducted climate scenario analysis to identify physical and transition risks that could affect its operations, providing the foundation for strategic climate response planning aligned with international frameworks.

Globe continues to maintain a comprehensive greenhouse gas inventory covering Scopes 1, 2, and 3 emissions, with these assessments informing the company’s science-based targets and its roadmap toward net-zero greenhouse gas emissions across its value chain by 2050. The net-zero target has been validated by the Science-Based Targets initiative, ensuring Globe’s climate strategy aligns with climate science and the goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.

“This CDP Climate Leader rating reflects disciplined action, strong governance, and a clear commitment to transparency,” said Yoly Crisanto, Chief Sustainability and Corporate Communications Officer at Globe. “It confirms that our climate strategy is both credible and measurable, providing stakeholders with confidence in our environmental performance and long-term sustainability commitments.”

Renewable Energy Transition and Network Decarbonization

Globe’s climate action spans its operations, network infrastructure, and customer experience through comprehensive decarbonization initiatives. The company has transitioned 171 cell sites, corporate offices, and key facilities to renewable energy through power purchase agreements, demonstrating progress toward reducing Scope 2 emissions from purchased electricity.

Renewable energy adoption represents one of the most effective strategies for telecommunications operators to reduce their environmental footprint. Switching a network to run on renewable energy cuts Scope 2 emissions and can typically reduce the total carbon footprint by up to 20 percent, though costs depend on local price and availability of clean power sources.

Globe has deployed more than 38,000 green network solutions, including fuel cell systems, hybrid generators, free cooling technologies, and lithium-ion batteries. These initiatives help reduce emissions while strengthening network resilience against power interruptions and climate-related disruptions. The deployment of energy-efficient hardware and alternative fuel sources contributes to lower greenhouse gas emissions across the telecommunications network.

Globe’s renewable energy share rose from 14% to 24% between 2021 and 2024, according to ESG performance data, with solar-powered sites protecting biodiversity while reducing emissions. The company continues to explore alternative energy solutions such as solar hybrid gensets and onsite solar generation to further accelerate renewable energy adoption across its infrastructure footprint.

Telecommunications Industry Carbon Footprint Context

The telecommunications industry currently accounts for around 2% of the global CO2 footprint, with the sector directly responsible for approximately 600 million tons of carbon dioxide equivalent emissions. While not the most significant industrial contributor to climate change, the sector faces growing scrutiny given its rapid expansion and increasing energy demands driven by 5G deployment and exponential data traffic growth.

According to research cited by telecommunications sustainability experts, the industry contributes between 3-4% of global CO2 emissions. With the exponential rise in data consumption and expanding infrastructure required to support digital connectivity, energy demands are expected to surge, creating urgency for operators to implement efficiency improvements and renewable energy transitions.

Industry analysts predict that telcos worldwide will be able to reduce their carbon footprint by 2%, or 12 million tons of carbon dioxide equivalent in 2024 and repeat similar reductions in 2025. These reductions come from strategies including purchasing more renewable energy, running data centers more efficiently, and deploying next-generation network technologies with superior energy efficiency characteristics.

Sustainable Products and Circular Economy Initiatives

Sustainability is also integrated into Globe’s products and services, demonstrating that environmental responsibility extends beyond operational efficiency to customer-facing offerings. The company has promoted paperless billing, reducing paper consumption and associated environmental impacts from printing, distribution, and waste.

Globe has introduced EcoSIM cards made from recycled materials, addressing the plastic waste challenge inherent in mobile telecommunications. In 2024, all postpaid SIMs procured by Globe were EcoSIMs, helping avoid the use of over 1,200 kilograms of virgin plastic. This initiative demonstrates how product design innovation can contribute to circular economy principles within telecommunications.

Globe’s continued promotion of eSIM adoption further reduced plastic consumption and resource use by eliminating physical SIM card requirements entirely for compatible devices. The shift toward eSIM technology represents a significant sustainability opportunity for the telecommunications industry, eliminating millions of plastic SIM cards and associated packaging materials globally.

Water Stewardship and Conservation Achievements

For water stewardship, Globe’s B score highlights concrete action on an often-overlooked environmental dimension in telecommunications operations. Water efficiency is a key focus at The Globe Tower, the company headquarters which houses more than half of the company’s workforce and is equipped with rainwater harvesting and water recycling systems.

These systems capture rainwater, air-conditioning condensate, and cooling water, which are treated and reused as graywater for non-potable purposes such as flushing, landscaping, and facility maintenance. In 2024, Globe reused more than 33,500 cubic meters of graywater, significantly reducing its demand for freshwater resources in water-stressed regions.

Water conservation is reinforced through facility design and employee engagement, including motion-sensor faucets that prevent unnecessary water waste and internal campaigns that promote responsible water use among employees. These integrated approaches demonstrate how operational efficiency, infrastructure design, and behavioral change can combine to achieve meaningful water conservation outcomes.

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Supplier Engagement Leadership Recognition

In addition to the Climate Leadership rating, Globe was recognized as a Supplier Engagement Leader by CDP in 2024, earning an A score for its drive to cut emissions and boost sustainability across its value chain. This marked the first time Globe received the designation and represented the first for a Philippine telecommunications operator.

The company has engaged suppliers by reinforcing its Supplier Code of Ethics, introducing sustainability criteria in procurement processes, screening vendors for ESG performance, and training partners to build sustainable practices throughout the supply chain. These initiatives recognize that Scope 3 emissions from the value chain often represent the majority of a company’s total carbon footprint, requiring collaboration with suppliers and partners to achieve meaningful reductions.

Globe’s supplier engagement strategy aligns with research showing that telecommunications companies must address Scope 3 emissions, which account for the majority of their carbon footprint. While many operators have made progress on emissions from operations (Scope 1) and purchased energy (Scope 2), few have squarely addressed the more challenging emissions from their value chain.

Governance Structure Supporting Climate Goals

Globe’s climate efforts are anchored on strong governance, with oversight from the company’s Board through the Board Risk Oversight and Sustainability Committee, ensuring climate goals are integrated into business strategy at the highest levels of corporate decision-making. This board-level engagement demonstrates that environmental sustainability is treated as a material business issue rather than a peripheral corporate social responsibility program.

Top management involvement ensures that climate targets are not merely aspirational statements but are embedded in operational planning, capital allocation, and performance management systems. Globe links 10% of employee metrics to sustainability goals, creating individual accountability for environmental performance throughout the organization.

The governance structure supports comprehensive greenhouse gas accounting and a science-based roadmap for 2030 and beyond, with interim targets providing accountability milestones on the pathway to long-term net-zero commitments. This structured approach to climate governance reflects international best practices for corporate climate action.

Industry-Wide Trends Toward Decarbonization

Globe’s environmental achievements occur within a broader industry context of accelerating telecommunications sustainability efforts driven by regulatory requirements, investor pressure, and customer expectations. Leading operators globally are implementing ambitious decarbonization strategies to reduce their environmental impact while managing growing network capacity demands.

Some telecommunications companies have set particularly aggressive targets. Tele2 wants to reach net-zero by 2029 and has invested in transitioning its fleet vehicles to electric vehicles and using biofuels, as well as reducing reliance on diesel for backup power generation. BT has vastly reduced its Scope 2 emissions since 2018 through switching to renewable energy sources, green tariffs and renewable energy certificates.

AT&T has committed to achieving carbon neutrality by 2035 and aims to utilize renewable energy sources for 100% of its operations. Similarly, Vodafone has pledged to cut its carbon emissions in half by 2025 through energy-efficient technologies and renewable energy investments, demonstrating the sector-wide momentum toward aggressive climate action.

Network Infrastructure Efficiency Improvements

Telecommunications operators are achieving significant emissions reductions through network infrastructure modernization and efficiency improvements beyond renewable energy procurement. The retirement of legacy copper networks and older-generation mobile technologies creates substantial efficiency gains while improving service quality.

Not only is fiber easier to maintain and requires fewer field service calls than copper, but it also uses up to 80% less energy, both on twisted pairs to homes and central office exchanges. Singapore has already switched off its copper network, with networks in Asia/Pacific and Europe moving forward on shutting down copper infrastructure.

The shutdown of 3G networks provides another avenue for emissions reduction. One report estimates that shutting down 3G reduces energy costs by 15 percent. In the last six years, 3G has been switched off by 58 operators across 22 countries, with shutdowns expected to accelerate as mobile data traffic continues migrating to more efficient 4G and 5G networks.

Recognition Across Multiple Sustainability Frameworks

The CDP recognition adds to Globe’s growing list of sustainability milestones, including being named to TIME x Statista’s Most Sustainable Companies 2025, recognizing the company among 500 firms worldwide that stand out for environmental, social and governance performance. With only 11 companies from Southeast Asia making the list, the inclusion highlights how companies in emerging markets are gaining ground in global ESG leadership.

Globe has also been recognized by Standard Insights’ Consumer Choice Awards as Most Active Mobile Network for the Environment and received International Finance’s Best ESG Practices in Telecom for the Philippines award. Together, these accolades reflect a long-term commitment to responsible growth that supports climate action, resource stewardship, and resilience in a rapidly changing world.

Globe’s 10th consecutive year in the FTSE4Good Index Series as of 2025 demonstrates sustained ESG performance over an extended period. The FTSE4Good Index, a globally recognized benchmark for responsible investment, measures the performance of companies demonstrating strong Environmental, Social and Governance practices, providing validation from the investment community.

Future Outlook and Continued Innovation

Looking ahead, Globe continues to pursue its net-zero goals through comprehensive greenhouse gas accounting and a science-based roadmap for 2030 and beyond. The company is presently expanding renewable energy use, adopting energy-efficient technology, and requiring suppliers to meet sustainability standards as part of its integrated climate strategy.

The telecommunications industry faces unique challenges and opportunities in the climate transition. While network buildout and increasing data traffic create upward pressure on energy consumption, technological innovation, renewable energy adoption, and operational efficiency improvements create pathways for absolute emissions reductions even as service delivery expands.

“Transparency drives real action. Our CDP recognition validates Globe’s strategy to embed sustainability not just within our operations, but across our entire ecosystem of suppliers and partners,” Crisanto emphasized. “We know that climate change is too big for any one company to solve alone, which is why we are committed to mobilizing our value chain to cut emissions and build resilience.”

The convergence of regulatory requirements, investor expectations, customer preferences, and technological capabilities is creating momentum for telecommunications sustainability that extends beyond voluntary corporate initiatives to become fundamental business imperatives. Companies like Globe that demonstrate leadership through transparent disclosure, measurable targets, and systematic implementation are positioning themselves for long-term success in an increasingly carbon-constrained world.

Conclusion

Globe’s achievement of CDP Climate Leadership status with an A- rating, combined with a B score for water security, represents a significant milestone for both the company and the Philippine telecommunications industry. The recognition validates years of strategic investment in renewable energy, network efficiency, sustainable products, and supply chain engagement while demonstrating that emerging market companies can compete with global peers on environmental performance.

As the telecommunications industry continues its critical role enabling digital transformation and connectivity, operators like Globe are proving that environmental sustainability and business growth can advance together through disciplined strategy, robust governance, and transparent accountability. The CDP recognition provides independent verification that Globe’s climate commitments are translating into measurable action, building stakeholder confidence and establishing a foundation for continued progress toward ambitious 2030 and 2050 targets.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

27th January, 2026