Driving change with 5G and ESG

Corporations must ramp up action on climate change and sustainable development as 2030 nears. Not only a matter of compliance to the Singapore Green Plan or the Sustainable Development Goals of the United Nations (UN SDGs), concretising policies is a business continuity concern. The clock is ticking before the world faces irreversible planetary damage that will also affect societies and governments.¹

As corporations move to craft their environmental, social, and governance (ESG) goals, they must harness capabilities that will allow smooth and immediate business process transitions to greener practices. Technology is among those capabilities, as it will play a vital role in creating a greener, smarter, and more equitable future for all. While technologies such as electric vehicles, solar panels, and wind turbines remain top of mind in this area, digital technologies and connectivity solutions also contribute to the efficient and responsible use of resources.

5G, the fifth-generation technology standard for connectivity solutions, will prove to be a secret weapon: it is a powerful enabler in supporting ESG goals and contributing to sustainable development.

As the next generation in mobile connectivity solutions, 5G has become a catalyst to accelerate digital transformation, both on the consumer and enterprise level. 5G-enabled devices continue to grow in popularity: In the United States alone, the shipments of 5G-enabled smartphones will reach 118.1 million units in 2022, and may reach up to 161.2 million units in 2026.³ Worldwide, the 5G wireless infrastructure market may reach USD8.3 billion by 2026, a 388% increase from USD1.7 billion revenues in 2021.⁴     

With its enhanced security, performance, and reliability features, 5G has become a sought-after connectivity solution for a wide range of mission-critical, industrial, and traditional enterprise organisations.⁴ These businesses require “always on” connectivity, primarily for process and industrial automation, as well as remote operations. Loss of connectivity may result in significant negative business or operational outcomes, as well as revenue loss.

Industries like manufacturing, utilities, healthcare, retail, and logistics are already reaping the benefits of 5G.⁵ Connected smart factories and warehouses, asset performance management, fully automated control systems, and real-time collaborative operations are just some process and industrial functions powered by 5G. Beyond process optimisation and cost savings, 5G also offers opportunities to support and empower corporate ESG goals.

Every business has ESG concerns. As such, ESG goal-setting must be an inextricable part of business strategy and operations. Setting ESG goals is good not only for maintaining a social license to operate but also for improving overall business efficiency. Research has found that companies prioritising ESG concerns have better performance, create more value, and have higher equity returns.⁶       

On the ESG front, adopting 5G technologies sooner than later makes business sense. For one, studies have found that 5G networks are up to 90% more energy efficient than legacy wireless technologies.^7,8 5G and multi-access edge compute (MEC) also enable real-time performance analytics and predictive maintenance, which further aid in managing energy efficiency. These translate to significant cost savings and decreased carbon emissions from operations, thereby mitigating further negative impacts on the environment.

5G powers augmented reality (AR) training for your workforce, which translates to effective and safe knowledge transfer at a lower cost. With 5G-enabled AR training, organisations can better facilitate rapid onboarding, knowledge transfer, and knowledge retention for their employees. Additionally, 5G’s enhanced security features support governance and compliance related to network security and data privacy.

Beyond the ideals associated with sustainability, ESG is primarily about impact management and process improvement. It is premised on the notion that companies are better equipped to manage and address their ESG impacts when they can monitor and measure the impact of their activities throughout their value chain. This is where 5G-enabled technologies prove valuable.

The same security, performance, and reliability features of 5G that power the Internet of Things (IoT) and the automation of industries are also useful for monitoring and managing ESG impacts. Processes and operations fully automated with 5G provide a better view of where impact happens in real-time and allow companies to optimise their handling and use of resources. A 5G network infrastructure can also be configured to analyse and manage its own energy consumption.

As you kickstart your 5G and ESG journey, you need a business partner that not only helps you deploy 5G sustainably, but also empowers you to harness 5G to inform your ESG goals throughout your value chain.

At Singtel, we aim to leverage the potential of 5G to transform businesses and deliver enhanced products and services to create a positive impact on our communities. We provide a reliable and secure 5G network and orchestration platform that enables our customers to integrate innovative solutions that can address their ESG concerns.

For example, our 5G@Sentosa in partnership with the Government Technology Agency and the Sentosa Development Corporation leverages Singtel’s 5G network to test out solutions for public sector use cases. These include the deployment of robots to track the progress of construction projects, as well as drones to inspect construction sites, both of which have the potential to refine worker safety and resource use.

Singtel Paragon, on the other hand, is an all-in-one platform for your 5G network, edge computing, and services orchestration. Empowered by Singtel’s next-gen 5G network, MEC for compute at the edge, and the Paragon platform, you gain the flexibility of leveraging cutting-edge capabilities that help transform your business to better meet your ESG goals.

AR Vision Picking, for one, provides real-time intelligence for smarter inventory and warehouse management. This contributes to improved handling of products, leading to less errors and less wastage. Real-time Location Tracking, meanwhile, gives fleet operations complete visibility over their vehicles to ensure safe and timely operations both for their employees and customers. Real-time tracking also helps drivers map out the best routes to their destinations, thereby saving time, burning less fuel, and producing fewer carbon emissions.     

These are just a few examples of how 5G-enabled solutions connect people, systems, and devices. Deploying 5G, when done in line with ESG objectives, can help improve business performance, reduce operating costs, and support overall sustainability. Start harnessing the power of technology for sustainability today. Tap into the power of 5G to reach your ESG goals.    

Digital transformation must not come at the cost of sustainability. As your trusted business partner, Singtel is here to provide you with the latest technologies and reliable connectivity solutions to empower your ESG journey. Contact us to know more about our 5G-enabled products and services that can support your sustainability initiatives.

To know more about sustainability at Singtel, view our 2022 Sustainability Report.

Sources

1. World Economic Forum, Corporate action on climate change needed more than ever, 2021.

2. United Nations, Department of Economic and Social Affairs, Sustainable Development.

3. International Data Corporation, U.S. 5G Smartphone Forecast, 2022–2026, 2022.

4. International Data Corporation, Worldwide Private LTE/5G Wireless Infrastructure Market Set to Reach $8.3 Billion by 2026, According to IDC, 2022.

5. International Data Corporation, 5G in Asset Intensive Industries – An Enabler of Future Business Transformation, 2020.

6. McKinsey Quartely, Five ways that ESG creates value, 2019.

7. Nokia, Nokia confirms 5G as 90 percent more energy efficient, 2020.

8. Ericsson, Achieving sustainability with energy efficiency in 5G networks, 2021.