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CSRD and FTTH

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CSRD and FTTH

How might the EU's Corporate Sustainability Reporting Directive (CSRD) impact FTTH deployment and management?

The EU Corporate Sustainability Reporting Directive and FTTH

The CSRD mandates extensive sustainability disclosures from companies, including large enterprises and listed SMEs. They need to report detailed information on their environmental, social, and governance (ESG) practices. This offers an opportunity to promote FTTH network deployment, by focusing on environmental sustainability benefits.

The CSRD aligns with the European Green Deal's goals to achieve a climate-neutral economy by 2050. The 27 EU Member States are expected to transpose the new directive into national law 18 months after it becomes effective in July 2024. Implementation of the CSRD could act as a driver for FTTH, which is inherently more energy-efficient and environmentally friendly than traditional copper networks, reducing carbon emissions significantly. Companies may well adopt FTTH as part of their strategy to meet sustainability goals. Standardized reporting allows companies to benchmark their performance against peers, potentially driving competitive adoption of FTTH.

In addition to the direct benefits FTTH provides when it comes to lowering emissions, it also provides the high-speed and reliable internet backbone necessary for digital transformation, which is a critical component of many companies' sustainability strategies. FTTH enables the deployment of smart technologies, IoT solutions, and advanced data and analytics applications which are key to sustainability initiatives aimed at improving operational efficiency and reducing waste. Integration with building management system, for examples, offers vast savings and energy optimization opportunities. Fibre-based connectivity also supports remote work, reducing commuting, and lowering office energy consumption.

This makes fibre networks a "green asset" for investors, helping de-risk investments and aligning with the EU's sustainable finance objectives. Rollout may also be supported by government policies and incentives to support deployment of FTTH networks, including subsidies, tax incentives, or streamlined regulatory processes for network expansion.

However, compliance with CSRD also poses challenges, such as the need for comprehensive data collection and verification, aligning existing reporting frameworks, and ensuring accurate and reliable sustainability information. Companies might need to invest in new technologies and training to meet these requirements, but the long-term benefits include enhanced transparency, investor trust, and alignment with broader environmental goals.

Not all companies have the necessary expertise or resources to meet the extensive reporting requirements. What’s more, many companies are already reporting on sustainability using a variety of frameworks, such as the Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB). These practices need to be aligned with the new CSRD requirements. 

The FTTH Council has initiated the FTTH Carbon Footprint Cooperative Platform, which helps companies calculate and report their CO₂ emissions using a standardized methodology. This platform not only aids compliance with CSRD but also provides insights to reduce carbon footprints across the sector. (See our previous article on this topic.)