Company Scorecard: U.S. Communications Industry Mostly Underperforming on Climate, Energy Justice Policies
9 Out of 10 Major U.S. Communications Companies Received “C” Grades or Lower.
WASHINGTON, DC – JUNE 6, 2024 – A new analysis of 10 top U.S. communications companies found that T-Mobile was the best-performing company for renewable energy goals, renewable energy usage, greenhouse gas (GHG) goals, energy justice, transparency, and supply chain policy. The new report from Green America, titled Clean and Just Energy is Calling: The Communications Industry Needs to Listen, includes interviews with energy justice leaders on fostering a just energy transition, details the need to transition to renewable energy, reveals inequities that can be found within the renewable energy sector and steps for addressing them, and grades companies on whether their energy policies address the climate crisis and benefit Black, Latine, Indigenous and other communities facing environmental injustice.
In the first two editions of Calling for A Clean, Just Transition report, Green America analyzed the telecoms giants AT&T, Verizon, and T-Mobile on their adoption of renewable energy and the extent to which they were supporting energy justice through their clean energy purchases. The reports found that since the campaign launched in 2017, the three telecoms increased their clean energy purchases substantially, but the sector still has a long way to go to reach 100% procurement of renewable energy.
The new report broadened the number of companies evaluated to get a fuller picture of the communications industry’s GHG footprint, energy use, clean energy goals, and commitments to energy justice. To that end, Green America included cable and internet providers as well as telecoms.
Dan Howells, climate campaigns director at Green America, said: “While some companies performed better than others, all of them need significant improvement. Zero companies received an overall ‘A’ grade, and in the category of energy justice specifically, no companies even scored better than a ‘B-.’ Across the board, the communications industry needs to do better on demanding a just energy transition.”
Key findings of the report include:
- The 10 companies profiled use at least 51 million MWh of energy annually, equivalent to powering 4.3 million homes.
- Most of the companies are sourcing less than 10% of their energy from renewable sources, with several companies reporting 0% renewables.
- Although T-Mobile continues to be a leader in the industry in the use of renewable energy, reporting 100% renewable energy usage, 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. The company estimates that its transition to renewable energy will save the company $100 million over 15 years.
- AT&T and Verizon are entering into significant contracts for renewable energy.
- Comcast and Lumen have both taken minimal steps to adopt renewable energy, with renewables equaling 10% 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 or address human rights abuses in the renewable energy supply chain through their energy purchases.
- Energy justice is poorly addressed by most of the companies in the communications industry. Several companies have few, if any, publicly available policies addressing commitments to energy justice.
Elizabeth Silleck La Rue, report co-author and CEO of Silleck Consulting Services, LLC, said: “Similar to the movement for environmental justice, deliberate efforts to foster energy justice arise out of a historic pattern of injustice around access, affordability, participation in decision-making, and the distribution of burdens and benefits associated with energy production. In other words, the pursuit of energy justice is necessary because the ways in which energy is managed, produced and distributed follow existing patterns of systemic inequities which disadvantage and disempower communities, often based on race, class, and gender.”
Naphtal Haya, practice lead of Alternative Energy Storage Technologies at DNV Energy Storage Advisory North America, said: “Out of necessity, the energy transition is bound to happen sooner or later. What’s not guaranteed is the nature of the transition - will it be equitable or will it perpetuate the mining industry’s historical injustices? Supply chain disclosure and third-party supply chain due diligence are key to ensuring a just energy transition for disadvantaged groups in the upstream, midstream and downstream sections of the supply chains of energy transition minerals.”
Charlotte Tate, advocacy lead, The Coalition to End Forced Labour in the Uyghur Region, said: “Addressing Uyghur forced labour is critical to creating a just energy transition. The use of Uyghur forced labour is a risk throughout the renewables industry, including solar panels and electric vehicles. All companies should urgently trace their entire supply chain, address any points of exposure to Uyghur forced labour, and fully exit the Uyghur Region. No industry, including the renewable energy sector, should be reliant on pervasive state-imposed forced labour.”
Company-specific findings
Green America reviewed publicly available information from companies, including reporting on climate to CDP and information provided in corporate socially responsible (CSR) reports and on company websites, in order to determine steps companies are taking on renewable energy and energy justice goals.
T-Mobile (B+) continues to lead among telecommunication companies in progress toward the use of renewable energy. While the company claims to buy 100% renewable power since 2021, much of that comes from unbundled Renewable Energy Credits, instead of directly from renewable energy projects. T-Mobile has a net zero goal, which is stronger than its competitors’ carbon neutral goals; carbon neutral targets can permit offsets, undermining true progress toward renewable capacity. The company is making some progress on environmental justice and supply chain policies. It estimates that its transition to renewable energy will save the company $100 million over 15 years.
AT&T (C) did make some progress in using renewable energy, but the company still lags far behind T-Mobile and is not investing in the wind and solar purchases needed from major companies to shift markets. The company is stronger than competitors in supporting diversity in its supply chains and preventing poor labor practices.
Verizon (C) did make some progress since 2021 with increased renewable energy contracts. The company has a long way to go to reach 100% renewable energy, and Verizon also has not publicly released its emissions or renewable energy data to the Carbon Disclosure Project (CDP) since 2021, making it difficult to truly evaluate the company’s progress. Verizon’s record is mixed on energy justice and supply chain policies and practices.
Comcast Corporation (C-)does report to CDP and is using approximately 9% renewable energy with a goal of being carbon neutral by 2035. The company does not have a renewable energy portfolio goal, but it has put some energy justice measures in place. Comcast does have a supply chain policy, but it is weak on conflict minerals.
Lumen Technologies (D)does not have a clear clean energy or GHG reduction goal and is using a very low proportion of renewable energy. Green America did not find clear environmental justice policies, but the company does have limited supply chain and conflict mineral policies.
Charter Communications (D) does not report to CDP. The company does report out on its energy usage and greenhouse gas emissions through its own sustainability reporting. The company has a GHG reduction goal but no renewable energy portfolio goal. Green America could not find meaningful support for supplier diversity or a supply chain or conflict minerals policy. The company provides some support for entrepreneurial opportunities.
Frontier Communications Parent Inc (F) does not report to CDP and has no meaningful information regarding its energy usage, renewable energy goals or usage, GHG reduction goals, energy justice goals or efforts. It has minimal environmental justice and supply chain policies.
Dish Network/Echostar (F) does not report to CDP, nor does the company provide disclosures on its own website regarding GHG emissions or goals, energy usage, renewable energy usage or goals, energy justice goals or policies. It has a good supply chain policy, but a limited conflict minerals policy
Altice USA Inc. (F)does not report to CDP.The company provides data on its GHG emissions on its website and also reports having a 500 kW solar installation. It does not have a GHG goal, a renewable energy goal, does not appear to have policies supporting environmental justice, and does not have a supply chain or conflict minerals policy.
Cable One Inc. (F) does not have a clean energy or GHG emissions goal. It does not report to CDP. The company does not report using renewable energy, nor does it appear to support energy justice or have a supply chain or conflict minerals policy.
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ABOUT GREEN AMERICA
Green America is the nation’s leading green economy organization. Founded in 1982, Green America provides the economic strategies, organizing power and practical tools for businesses, investors, and consumers to solve today’s social and environmental problems. http://www.GreenAmerica.org
MEDIA CONTACT: Max Karlin for Green America, (703) 276-3255, or mkarlin@hastingsgroupmedia.com.
