Balancing Sustainability and Profitability: Telecom Industry Responses to the European Green Deal
2025 (English) Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE credits
Student thesis
Abstract [en]
Background:The European Green Deal (EGD), Implemented 2019 is putting increasing pressure on major telecom companies like Telia and Ericsson, who run energy-intensive networks, to work sustainable and towards the EGD directives and goals while maintaining profitability.
Purpose:This research explores how these companies balance sustainability and profitability under the EGD’s regulatory, and stakeholder demands. This research implements two research questions to answer this:
To what extent do businesses balance sustainability goals and profitability when implementing the European Green Deal?
How do telecom businesses adopt sustainable practices under the European Green Deal without compromising financial viability?
Method:Legitimacy Theory and Institutional Logics served as the theoretical foundation for the qualitative multiple-case approach that was used. Additionally, Financial declarations, annual and sustainability reports also supported the claims made about Telia and Ericsson. Lastly, six semi-structured interviews with Telia and Ericsson professionals that work with sustainability or finance or both, were the sources of the primary data.
Conclusion:Results showed that while sustainability initiatives have short-term costs associated with compliance, network upgrades, and expected carbon price, they also have long-term benefits, such as increased energy efficiency and stakeholder trust. By incorporating ESG goals into financial projections, issuing green bonds, and tying managers' incentives to decarbonization benchmarks, Telia and Ericsson lessen this conflict. The findings can serve as a reference for other regulated companies dealing with comparable sustainability requirements and show how institutional pressures propel strategic adaptation.
Place, publisher, year, edition, pages 2025. , p. 78
Keywords [en]
Background: The European Green Deal (EGD), Implemented 2019 is putting increasing pressure on major telecom companies like Telia and Ericsson, who run energy-intensive networks, to work sustainable and towards the EGD directives and goals while maintaining profitability. Purpose: This research explores how these companies balance sustainability and profitability under the EGD’s regulatory, and stakeholder demands. This research implements two research questions to answer this: To what extent do businesses balance sustainability goals and profitability when implementing the European Green Deal? How do telecom businesses adopt sustainable practices under the European Green Deal without compromising financial viability? Method: Legitimacy Theory and Institutional Logics served as the theoretical foundation for the qualitative multiple-case approach that was used. Additionally, Financial declarations, annual and sustainability reports also supported the claims made about Telia and Ericsson. Lastly, six semi-structured interviews with Telia and Ericsson professionals that work with sustainability or finance or both, were the sources of the primary data. Conclusion: Results showed that while sustainability initiatives have short-term costs associated with compliance, network upgrades, and expected carbon price, they also have long-term benefits, such as increased energy efficiency and stakeholder trust. By incorporating ESG goals into financial projections, issuing green bonds, and tying managers' incentives to decarbonization benchmarks, Telia and Ericsson lessen this conflict. The findings can serve as a reference for other regulated companies dealing with comparable sustainability requirements and show how institutional pressures propel strategic adaptation.
National Category
Environmental Economics and Management
Identifiers URN: urn:nbn:se:hj:diva-68152 OAI: oai:DiVA.org:hj-68152 DiVA, id: diva2:1964696
Subject / course JIBS, Business Administration
Supervisors
Examiners
2025-06-252025-06-052025-10-13 Bibliographically approved