Clean and Just Energy is Calling: The Communications Industry Needs to Listen

Green America investigated the clean energy use of major communications companies and whether the energy they use advances energy justice.

This is a summary of findings. The complete report including sourcing, recommendations, and more details on the issues is available here.

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The Issue

Every day, most of us are using the internet and cellular services to stream videos, send texts, scroll through social media, and stay in touch with friends and family. Staying connected requires vast amounts of energy, much of which comes from fossil fuels.

In order to rapidly reduce climate emissions and to create an energy transition that benefits the people most harmed by the fossil fuel economy, the US needs to rapidly adopt wind and solar power. Corporations can play a unique leadership role in the transition to clean energy in a way that promotes energy justice. Large corporate actors often use as much energy as entire cities or even small nations. If these market leaders contract for renewable energy that benefits Black, Latine, Indigenous and other communities facing environmental injustice, and work to improve the supply chains for clean energy, they can create strong benefits for communities and workers while meaningfully addressing climate change

As a major consumer of electric power, the communications industry can play a leading role in this transition.

The 10 top communications companies we looked at for this report collectively have nearly 600 million customers and $474 billion in revenues. They are well positioned to be leaders in a transition to clean energy that creates energy justice.

Climate Impacts

Internet activities like streaming and texting and the production of computer hardware together accounted for 3.7 percent of global emissions as of 2019.  The climate footprint of the internet is increasing and may double by 2025.  As communications companies continue to move to 5G, and as the amount of data stored and transmitted to their customers, coverage, and adoption of artificial intelligence (AI) technologies increases, their energy usage will increase dramatically.

Key Findings 

The 10 companies profiled collectively use at least 51 million MWh of energy annually, equivalent to powering 4.3 million homes, which is more households than found in each of 43 US states.

  • Most of the companies are sourcing less than 10% of their energy from renewable sources, with several companies reporting 0% renewables.

  • T-Mobile continues to be a leader in the industry in the use of renewable energy, reporting 100% renewable energy usage, although not all of that energy is putting new wind and solar power on the grid since they are using unbundled renewable energy credit (RECs) for much of their energy.

    • AT&T and Verizon are entering into significant contracts for renewable energy. And Verizon now has a goal of 100% renewable energy by 2030.

    • Comcast and Lumen have both taken minimal steps to adopt renewable energy, with renewables equaling 10 percent or less of their overall energy use.

  • Much work remains to be done by the communications industry to leverage their market power to increase the use and availability of renewables and phase out fossil fuels.

  • Many of the companies in the communications sector lack transparency regarding their environmental and climate impacts, adoption of renewable energy or clean energy goals, or any efforts to support energy justice through their energy purchases.

  • Energy justice is poorly addressed by the majority of companies in the communications industry. Several companies have few, if any, publicly available policies addressing commitments to energy justice. 

  • Some companies do have supplier codes of conduct and/or policies on conflict-free minerals, many of which are core to the infrastructure of renewable energy and have implications for energy justice, but it is unclear to what extent these policies are monitored or enforced.  Several companies lack policies altogether.

Business Case for Renewable Energy and Energy Justice

Moving to renewable energy can significantly reduce energy costs.

  • An analysis by the research firm Dell'Oro Group found that telecom operators worldwide spent $25 billion on electricity in 2021; this level of consumer power could be wielded to shift the market and influence policy. It also demonstrates the potential for savings as energy from wind and solar power is often already less expensive than that generated from fossil fuels.

  • T-Mobile estimates that its transition to renewable energy will save the company $100 million over 15 years

  •  Consultant McKinsey & Company notes that energy makes up five percent of operating expenditures in telecoms, and as energy usage increases with 5G, energy efficiency measures and renewable energy could lower costs by 15 to 20% per year.

Incorporating energy justice can also save companies money and reduce risks.  Research demonstrates that Indigenous communities around the world, including in the US, are increasingly ensuring that they have free, prior, and informed consent regarding energy projects on their lands.  Energy companies, including renewable energy developers, that ignore the voices of Indigenous communities are finding that projects are delayed or blocked from moving forward.

Similarly, companies face reputational and legal risk from supply chains that include forced and/or child labor.  Putting strong supply chain and conflict minerals policies in place, and then actively monitoring supply chains, can mitigate these risks.

Goals for Communications Companies

To help drive the clean energy transition in the US while advancing energy justice, all companies in the sector should:

  • Provide transparency regarding current energy usage and goals, as well as current contracts for renewable energy.  All companies should also report scope 1, 2, and 3 emissions.  Companies should report to the Climate Disclosure Project (CDP) to ensure their reporting is standardized and comparable to other companies in their sectors.

  •  Set a goal for 100% renewable energy that puts new wind or solar power on the grid by 2030 and enter into contracts to meet this goal.

  •  Set a net zero goal for emissions in line with the Science Based Targets Initiative by 2035.  Several companies have a carbon neutral commitment, which is not as strong because it allows for carbon offsets and doesn’t limit all climate emissions (including gasses other than CO2).  Many companies have no commitment.

Companies must advance energy justice, based on criteria Green America developed with colleagues, through renewable energy contracts. At a time when Diversity, Equity and Inclusion efforts are under attack, companies must take a stand for equity and justice with policies and actions.

  • The communications industry must ensure that the mining of critical minerals that power the renewable energy transition supports environmental justice and avoids violating human rights. The US needs renewable energy, but companies also need to use their market power to incentivize a responsible supply chain. Communications companies should include requirements for supply chain management in their requests for proposals and power purchasing agreements with energy companies.

  • Companies must transparently disclose their energy justice goals and benchmarks to achieve those goals. They must also disclose their sourcing policies, and how they monitor and ensure compliance with those policies.

  • Companies must support supplier diversity and entrepreneurial opportunity for marginalized groups in their supply chains.

Renewable Energy: Getting the Supply Chain and Production Right

As last year’s Calling for A Clean, Just Transition report discussed at length, the energy industry has a long history of creating and perpetuating inequity—from the concentration of polluting power plants in Black, Latine, and low-income neighborhoods to underrepresentation and disparate economic benefits for women and some ethnic minorities within the energy sector.

Arguably, the excessive siting of pollution-generating power plants in communities already burdened by numerous racist policies and outcomes, alone, makes renewable energy production a more equitable choice which fosters a just transition. Although renewable energy is almost always less damaging and unjust than fossil fuel combustion, not all renewable energy is produced, distributed, or managed equitably. Investment in and deployment of renewables are crucial steps in our transition from undeniably harmful and extractive fossil-fuel generated energy, and we have the potential to get renewable energy production right. As this industry grows, it must take deliberate action to create accountable supply chains that protect communities and the environment. In our Calling for a Clean, Just Transition reports, we found that energy companies selling clean energy are often not prioritizing energy justice, and it is important that purchasers from these energy companies mandate energy justice through their purchasing contracts.


In this section we will delve into some of the inequities and injustices that can be found within and created by the renewable energy sector.

What do Energy Justice leaders say about the pathway to a just transition?

Advancing energy justice means that corporate purchasers need to look at the full range of impacts on marginalized communities, in the US and abroad, from their energy purchases.  The four following interviews with energy justice and human rights leaders highlight the steps necessary for companies to pursue energy justice through their contracts for clean energy.

Maria Lopez-Nunez

Ironbound Community Corporation

Naphtal Haya

Det Norske Veritas

Charlotte Tate

Coalition to End Forced Labour in the Uyghur Region

Dustin Mulvaney

San José State University

This is a summary of findings. The complete report, including sourcing, is available here.

Acknowledgements

Elizabeth Silleck La Rue, Energy Justice Researcher and Co-Author

Todd Larsen, Co-Author, Executive Co-Director for Consumer & Corporate Engagement - Green America

Dan Howells, Co-Author, Climate Campaigns Director - Green America

Hop Hopkins, Social Movement Strategist and Strategic Advisor

Andrew Korfhage, Reviewer, Interim Editor-in-Chief - Green America

Alec Badalov, Designer, Digital Communications & Design Specialist - Green America

Thank you to Carla Itzkowich for supporting this work.

Click here to see Calling for a Just, Clean Transition Pt. 2, released in 2023.