In recent years, businesses are awakening to the fact that sustainability can be good for their long-term performance. This point was highlighted in 2020 when sustainable investments had a record year despite the pandemic, putting to bed the idea that being sustainable means sacrificing returns.

For instance, a Standard & Poor's Global Market Intelligence analysis of 17 large ESG (environmental, social and governance) exchange-traded funds and unit trust funds found that a majority of them posted higher returns than the S&P 500 index in 2020 through July. Meanwhile, Morningstar's examination of 65 ESG indices revealed that 88% of the indices outperformed for the five years through 2020.

This trend also highlights the appeal of companies that are well prepared to thrive in a low or net-zero carbon economy.

In fact, according to the Business & Sustainable Development Commission, sustainable business models related to the Sustainable Development Goals could open up economic opportunities worth at least US$12 trillion (RM49.5 trillion) by 2030. Plant-based food, renewable energy and electric vehicles are just some examples of emerging trends.

Meanwhile, businesses that do not embrace sustainability may be punished by stricter regulations and face the risk of having stranded assets because of the impact of global warming.

Technology players are in a unique position to make a difference, given that it is one of the fastest-growing sectors globally. The telecommunications industry, which provides the key building blocks to the digital economy, is no less important. This is especially as connectivity has become even more essential during the pandemic for people to stay in touch with loved ones and work remotely.

In fact, according to a report by GSMA, the world's largest mobile association, mobile network-enabled technologies are helping avoid emissions in other sectors by increasing connectivity and improving efficiency. Mobile network-enabled technologies include smart buildings, smart manufacturing and smart agriculture. In 2018, this enablement effect was estimated at 2,135 million tonnes of CO2, which is similar to total greenhouse gas emissions by Russia in 2017 alone.

Given the influence of the telecommunications sector, it is worthwhile to look at what industry players are doing to play their part, especially in the fast-growing region of Asia. One company that one can look at is Axiata, which is one of the biggest telecommunication groups in Asia. It recently launched its Advancing to Zero initiative to solidify its sustainability commitments.

While it already had sustainability initiatives in place before this, the Advancing to Zero direction is meant to communicate Axiata's drive to become a net-zero carbon company. This is in line with the global industry ambition to achieve net zero emissions by 2050.

Axiata also has the vision to become the Next Generation Digital Champion by 2024. This vision could be aligned with its sustainability commitments, as industry players have a prime opportunity to develop new technologies such as 5G sustainably from the beginning.

It is something that Axiata prioritises as well. The company aims to balance its pursuit of technological advancements with its impact on the planet and society.

To achieve its goals, Axiata is developing its Net-Zero Carbon Roadmap, which is guided by the ICT sector science-based pathway, to reduce greenhouse gas emissions, in line with the Paris Agreement goal to limit global warming to well below 2°C.

To achieve this, Axiata plans to follow the Roadmap and limit the impact of its operational activities by reducing its carbon emissions and, hence, climate risks. It will harness energy-efficiency technologies and invest in renewable or alternative energy solutions.

The Roadmap will provide direction and purpose for the company and help it gain a deeper understanding of its energy consumption and drivers, set clearly defined targets and align its technology and expertise with its sustainability commitments.

The Roadmap will also draw on existing strategies in the group. A main thrust of the strategy is to increase the use of renewable energy across its operations. So far, the investments into renewable energy across the region has led to energy and cost savings, as well as reduced greenhouse gas emissions in Malaysia, Bangladesh, Sri Lanka and Cambodia.

For instance, Cambodia-based Smart Axiata focused on integrating solar to existing grid and diesel sites in 2020, reducing energy consumption of the grid by about 386MWh.

Another thrust is to increase the energy efficiency of its operations. For instance, XL Axiata has installed Intelligent Ventilation Cooling Systems, DC fans and air conditioning. It installed a cooling system in the BTS, which reduced the use of air conditioning by 30%.

In terms of Axiata's towerco infrastructure, the company plans to reduce carbon emissions on its sites via edotco by building leaner structures, which reduces the amount of steel needed. For instance, it has built 19 carbon-fibre towers, resulting in a 20% to 39% reduction in carbon emissions per site. Collectively, edotco has recorded a 58% carbon reduction per site from a 2013 baseline and plans to reach 63% by the end of 2021.

All the actions for Advancing to Zero are being done in collaboration with Axiata's operating companies, business partners, suppliers and key stakeholders.

It is important for businesses to take steps towards sustainability with their actions, whether big or small, as it can make a difference at this crucial time.