Sustainability out of responsibility: Reporting

ESG integration in the technology, media and telecommunications industry

Overview Report | Executive Summary | Sustainability acitivities | Steering & Governance | Reporting & Regulatory

Regulation is an important driver of the sustainable transformation of the economy and society. This also includes reporting obligations that require large (and in future also medium-sized) companies to inform the public about their ESG activities.

Some TMT companies already report on their sustainability activities. However, comprehensive reporting along the three ESG dimensions has only been practised by a minority to date. The least information is published in the area of governance. However, more than half also state that they publish little or no data on the environmental aspect.

KPMG!

59 %

nform the public about their sustainability activities in the area of environmental and climate protection only rudimentarily or not at all.

KPMG!

70 %

have only implemented the CSRD to some extent or not at all. The CSRD will apply from 1 January 2024.

Conclusion

Many TMT companies have started to make their organisation and business activities more sustainable. However, there is usually a lack of consistent implementation along the three ESG dimensions. Comprehensive and systematic sustainability management is still the exception in the TMT sectors.
This divided picture between sensitisation on the one hand and a lack of consistency on the other is also reflected in some of the concluding statements. For example, although 60 per cent of respondents have developed a clear sustainability strategy, only 17 per cent have taken the achievement of sustainability targets into account in the remuneration structure of management (see chart)

Statements on the topic of sustainability

To what extent do the following statements apply from your company's perspective? (n=150, deviation from 100 per cent due to rounding differences)

Sustainability understood as a three-dimensional ESG model (environment, social, governance) is one of the greatest challenges of our time. Our study provides a picture of the status quo of ESG integration in the three TMT sectors and identifies key areas of action that TMT companies are confronted with.

The products and services of the technology industry are an integral part of our everyday lives and require high-performance telecommunications networks. Media are relevant for the functioning of our social system by serving the information needs of the knowledge society. TMT companies therefore have great social significance. They should rethink their business practices in terms of sustainability, not only because of regulations, but also because of their social responsibility and pioneering role.

According to forecasts, the world's data centres could be responsible for 4.5 percent of global energy consumption by 2025.1 This would mean a doubling within eight years. The United Nations also expects that almost 75 million tonnes of electronic waste will be produced by 2030, which would represent an increase of around 25 percent compared to current levels.2 These examples show that the TM sectors also contribute to environmental and climate damage.

What is the sustainability status of German TMT companies? What measures have already been taken? Where are the

Download industry reports

In order to paint a clearer picture for the sectors, we have published three separate reports in which the survey results are analysed in detail per sub-sector and enriched with recommendations for action. The reports can be read individually, but also side by side to recognise similarities and differences between the three TMT sectors.

We wish all readers an interesting read.