A telecom provider assesses climate risk across its cable network

The challenge: Assessing climate risks to unlock green finance from investors

A Dutch telecoms firm needed to refinance its extensive fibre network while building resilience to climate change. Funding from an international bank was available for this sustainable business initiative, but to unlock the “green finance”, the firm had to assess its climate risks in line with EU taxonomy requirements.

This meant that the company needed to assess its network’s exposure to extreme weather events, flooding, soil subsidence, and heat stress. And use the data to understand how these climate change events could disrupt its operations, damage its assets, and affect its reputation.

The solution: A four-step approach to understanding climate risks

The telecom provider asked Royal HaskoningDHV to conduct a climate risk assessment of its network, using our expertise in cable networks and engineering to add industry context to the analysis.

For the telecom provider to be eligible for green finance, we structured the project around four main steps, in line with EU taxonomy requirements:

1. We identified and prioritised the most relevant climate hazards and scenarios for the company and its assets,
2. We assessed physical risks to the business model, using the most up-to-date climate projections and modelling
3. We developed and evaluated adaptation strategies that will enhance the network’s climate resilience
4. We reported and disclosed the findings and recommendations in a format that will satisfy the needs of shareholders and investors

Our methodology considered all hazards that must be analysed when applying EU taxonomy. However, we identified five hazards that were most critical: heat stress, heatwaves, rainfall, flooding, and soil erosion – and the damage they could cause to assets such as network cables, connection boxes, power supply, even employees.

The result: Climate risk insights that enable action

Our comprehensive report – aligned with the EU taxonomy framework – has helped the telecom provider develop a clear overview of its climate risk profile and provided recommendations for actions. By implementing these recommendations – or by having a schedule to do so – the company will be able to unlock finance for projects.

In addition, the report will help the company communicate its climate performance and future strategy to current shareholders and potential investors. This will further strengthen the brand’s reputation for sustainable operations.