ZTE’s Sustainability Report 2023 highlights advancing digital innovation for a more sustainable future

ZTE Corporation, a global leading provider of integrated information and communication technology solutions, recently released the company’s Sustainability Report 2023, detailing its strategies, actions and progress in green innovations, social contributions and corporate governance.

As a Driver of Digital Economy, ZTE has been releasing sustainability reports for 16 consecutive years, highlighting its unwavering commitment to sustainable business.

Xu Ziyang, CEO at ZTE, stated in the report: « We uphold the Human-Centric and Tech for Good philosophy, and constantly explore new fields, applications, and value of digital and intelligent transformation. Together with global customers, partners, investors, and people from all walks of life, we will build a digital and intelligent ecosystem, making efforts and contributions to promote industrial revolution, accelerate social development, and enhance the well-being of all humanity. » 

The report highlights ZTE’s dedicated efforts in building its digital intelligence capabilities and continuous innovation in underlying technologies. The company has been enhancing its investments in main business fields, including chipset, algorithm, architecture, database and operating system. As of 2023, ZTE has filed over 89,500 patent applications and obtained over 45,000 granted patents globally. Additionally, ZTE has been advancing phygital innovation, successfully implementing benchmark projects in multiple industries to promote high-quality development across diverse sectors.

2 Our Decarbonization Efforts

Driving green innovations to shape an eco-friendly ecosystem

ZTE is committed to green development, driving green innovation to shape an eco-friendly ecosystem. This commitment is underpinned by four dimensions: green operations, green supply chain, green digital infrastructure and green empowerment, contributing to net zero emission.

In green operations, ZTE achieved a 9.7% YoY decrease of absolute GHG emissions (scope 1&2&3) throughout the value chain, a 14.58% YoY decrease in the physical intensity of GHG emissions during the use and maintenance phases of the company’s sold telecom products, and over 700% YoY growth of PV power generation installed capacity in 2023.

In terms of green supply chain, the company has completed carbon reduction audit for more than 150 suppliers, and achieved a 3.26% reduction in carbon emissions intensity through its green logistics efforts. Moreover, ZTE was rewarded « National Level Green Supply Chain Management Enterprise » and ZTE Heyuan Base was recognized as a « National Green Factory » in 2023.

For green digital infrastructure, ZTE currently holds over 650 green patents, has conducted carbon footprint assessments for 101 products, encompassing all product categories. The company has helped global operators save more than 10 billion kilowatt-hours in electricity consumption annually.

In the realm of green empowerment, ZTE has introduced a green precision cloud-network solution based on its « Digital Nebula » architecture. Collaborating with over 1000 global top industry partners across diverse sectors, the company has launched more than 100 application scenarios for 5G+ innovative green initiatives. Through these efforts, the company continues to support various industries in their digital transformation and sustainability goals, promoting cost reduction, efficiency improvement, and quality enhancement to drive energy conservation and emission reduction.

Thanks to its sustained efforts in green development, ZTE’s science-based targets, achieving greenhouse gas emissions reduction in line with the 1.5°C temperature rise limitation pathway and reaching net-zero emissions by 2050 at the latest, have been approved by the Science Based Targets initiative (SBTi) in April 2024. This makes ZTE the first large-scale ICT tech company in China to receive official approval for both near-term and long-term GHG emission reduction targets and to make CDP A List for leading climate action, the highest level of recognition for corporate environmental transparency and performance. Additionally, the company recently unveiled « ZTE Zero-Carbon Strategy » white paper at ZTE Sustainable Development Forum, outlining the implementation roadmap of its zero-carbon strategy, demonstrating the company’s commitment to collaborating with various sectors to advance global zero-carbon endeavors. 

Embracing Tech for Good to bridge global digital divide

Xie Junshi, Executive Vice President and Chief Operating Officer at ZTE, said:  » ZTE incorporates sustainability and ESG into corporate operations and governance, sticks to the philosophy of Tech for Good, and takes on the responsibility and role of a leading ICT player, to bridge the digital divide and enable connectivity and trust everywhere. »

As a global enterprise, ZTE has been engaging in building high-performance « superb networks » across over 100 countries and regions, facilitating the bridging of global digital divide. ZTE has been actively responding to the International Telecommunication Union’s (ITU) call for support in global digital transformation efforts through its Partner2Connect (P2C) Digital Coalition and was recognized as one of the first P2C Champions by ITU. Specifically, ZTE pledged to construct ICT infrastructure annually for Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs), and Small Island Developing States (SIDS) by 2025, and to dedicate 50,000 hours of ICT lectures globally for the benefits of local workforces in need, as part of its efforts to drive global meaningful connectivity.

Supplier capability building is key for ZTE to ensure supply chain resilience and product quality. In 2023, the company released the SPIRE 2.0 strategy to boost resilience of its supply chain, and carried out diverse training programs to promote capability enhancement of suppliers, jointly contributing to sustainable development.

ZTE puts people first and front, prioritizing the welfare and development of its employees and fostering a nurturing and inclusive workplace environment. In 2023, the average training hours per employee reached 144.7. ZTE was honored with LinkedIn MostIn Awards – Global Talent Magnet Employer in 2023, recognizing its global talent attraction efforts.

ZTE actively fulfills its corporate social responsibility by engaging in public welfare initiatives worldwide, including educational support, medical aid, and care for vulnerable groups. As of 2023, the company has registered 10,754 employee volunteers, accumulating a total of 29,024 volunteer hours. The company’s influence on green development was further extended through welfare activities. For example, the pilot project of forest management and carbon sequestration, which marked milestone progress of the « ZTE Ecosystem Conservation Fund, » was successfully implemented.

Strengthening corporate governance to build a highly resilient organization

ZTE places significant emphasis on internal controls, compliance, social credibility, and business continuity management (BCM). The company continually enhances its corporate governance system, standardizes operations, and ensures continuous and robust business performance. 

In 2023, ZTE successfully passed the re-certification audit of the company’s anti-bribery management system and maintained the ISO 37001 Anti-Bribery Management System certification. It conducted 214 joint Business Continuity Plan (BCP) drills in high risk fields. Additionally, the company continuously improves its quality management system. In 2023, ZTE Global Certification and Testing Center conducted 1,372 safety tests throughout the year with a test pass rate of 100%.

As a member of the United Nations Global Compact (UNGC) and the Global Enabling Sustainability Initiative (GeSI), ZTE’s achievements in sustainable development and ESG have gained widespread recognition. For instance, ZTE was selected in UNGC Private Sector Case Studies for achieving Sustainable Development Goals (SDGs) in 2023, and has been included in the FTSE4Good Index Series for eight years and Fortune China ESG Impact List for three consecutive years. Additionally, ZTE was honored among Top 30 ESG Excellence Practices in China and recognized as 2023 IDC China Sustainable Development Pioneer Case.

Moving forward, ZTE will remain committed to its vision « To Enable Connectivity and Trust Everywhere, » leading the way in digital innovation to ensure that the benefits of innovations reach all industries and sectors, contributing new momentum to sustainable development.

For more details of ZTE Sustainability Report 2023, please download:

https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/ZTE_Sustainability_Report_2023_EN_0603.pdf

To discover more updates about our commitment to the sustainability, please visit ZTE Sustainability website:

https://www.zte.com.cn/global/about/sustainability.html

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New telecoms alliance to streamline ASEAN cross-border connectivity

A group of telcos and data centre providers in Southeast Asia have formed an alliance called ASEAN Connect.One that aims to make it easier for data centres, carriers and OTT players across the region to collaborate on connectivity services.

Initial stakeholders in the alliance include APT Satellite, FPT International Telecom, Interlink Telecom, Neocom ISP, NTC Asia, SEAX Global and Telin. Between them, ASEAN Connect.One has access to over 10,000 km of network infrastructure covering Hong Kong, Vietnam, Cambodia, Thailand, Malaysia, Singapore and Indonesia.

According to a statement issued on Tuesday, the alliance intends to provide clients a standardized suite of services under the ASEAN Connect.One umbrella, which it says will ensure “reliability, scalability, and efficiency in connectivity and data centre management solutions”.

To that end, alliance members will pool their resources and expertise to streamline one-stop shopping, single-end billing and unified operational processes, which it says will reduce installation and maintenance lead times.

This will enable OTT platforms to deliver content more efficiently, ensuring seamless streaming experiences for users across borders, the alliance says. It will also potentially pave the way for innovative content delivery solutions.

“The alliance one-stop shop delivers high SLA with borderless connectivity supported by a suite of fully redundant terrestrial, submarine cable, and satellite networks, promising a short lead time for seamless integration,” the ASEAN Connect.One statement says.

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Outgoing BT boss takes home £3.7m as cost cutting continues


News

Ex-CEO Philip Jansen, who left BT in January, saw his remuneration increase 25.8% in the last financial year, including bonuses of £2.6 million

This week, BT has revealed that the company’s outgoing CEO, Philip Jansen, was paid £3.72 million for the financial year ending March 31.

This total comprises a fixed pay of £1.11 million and a bonus of £2.6 million, (up from £1.62 million last year). The bonus took the form of £1.45 million in cash and £1.15 million in shares.

The pay increase comes despite BT recording a 31% drop in pre-tax profits to £1.18 billion for the year to March.

Jansen was replaced as CEO by Telia’s Allison Kirkby in January this year, having held the role for five years. Despite some claims that Jansen had “got the strategy right” at the helm of the UK’s largest telco during this time, his tenure saw the company’s share price fall by around 45%.

Perhaps most notably, Jansen’s time as CEO saw the company begin implementing major cost cutting measures, seeking to reduce expenses by £3 billion by 2025. To reach this target, the company announced plans to cut around 55,000 jobs across the company – roughly 40% of BT’s workforce – by 2030.

While the scale of Jansen’s final pay packet is sure to leave a sour taste in the mouth of laid off BT employees and the Communication Workers Union, it is far from unusual. A quick look in the news, for example, shows that CEOs of major firms are routinely paid handsomely as they wave a final farewell. This week alone has seen Boeing’s outgoing CEO Dave Calhoun awarded a 45% pay rise to $32.8 million, despite the company’s ongoing crisis over quality control (don’t worry – he turned down his $2.8 million annual bonus).

For BT’s remaining staff, further cost cutting measures are to be expected. Earlier this year, newly inaugurated CEO Allison Kirkby revealed that BT had already succeeded in reducing costs by the aforementioned £3 billion, a year ahead of its 2025 schedule. Now, says Kirkby, the company will aim to cut a further £3 billion by 2029.

But while Kirkby says the company is “well positioned to generate significant growth”, investors remain far less convinced. Last month, it was revealed that investors were short-selling around £300 million-worth of BT shares, i.e., betting on a further decline in the company’s share price.

Kirkby remained unperturbed, saying “I always love to squeeze the shorts . . . and prove them wrong.”

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter 

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KPN forms new JV to monetise tower assets


News

The deal will see around 60% of KPN’s tower and rooftop assets passed over to the new joint venture with ABP

This week, incumbent Dutch telecoms operator KPN has announced the creation of a new joint venture with Dutch pension fund ABP to manage tower infrastructure across the country.

The deal will see KPN contribute around 60% of its existing tower and rooftop base station portfolio to the joint venture, with a further 800 sites being added from ABP’s tower subsidiary Open Tower Company (OTC).

The deal will also see KPN take over Novec, a passive infrastructure operator owned by energy grid operator TenneT, which also has a minority stake in OTC. Novec

Once combined, the new TowerCo will manage and operate around 3,800 mobile towers ad rooftop sites.

In total, KPN will pay €120 million to Novec and OTC shareholders to balance the scales in the deal. KPN will hold a 51% stake in the business, with the remaining 49% owed by ABP.

This is the second joint venture between KPN and ABP, the first being a €1 billion open access wholesale fibre network operator Glaspoort created back in 2021.

KPN says the deal to monetise its passive infrastructure assets is crucial to its ongoing strategic focus on flexibility, growth, and technological development.

“We have built up a very good position with our mobile network in recent years. We want to maintain and further expand this in the future, also in view of the ever-growing data traffic,” said KPN chief exec Joost Farwerck in a translated statement. “With this collaboration we gain more control and flexibility at a large number of locations of our mobile infrastructure and at the same time we realise a more sustainable cost model.”

As part of the deal, KPN has agreed to a 20-year master services agreement with the new TowerCo, as well as a 10-year build-to-suit programme that will see the TowerCo build additional towers as necessary.

The deal is subject to all typical regulatory approvals.

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter 

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