Reducing carbon emission through energy efficiency in the telecom sector: Integrating MFCA with ERP systems

Abstract

This study investigates opportunities to reduce carbon emissions in the telecommunication sector in India by extending the analytical scope beyond operational activities to include equipment installation and service delivery within the telecom supply chain. A three-step methodology framework is employed to comprehensively account for emissions across Scopes I, II, and III. The first step comprises a systematic literature review, identifying 62 carbon reduction initiatives across the telecom supply chain. Factor and regression analysis are used to evaluate the contributions of equipment, operations, and channel partners to carbon mitigation. The next step applies material flow cost accounting (MFCA) to telecom infrastructure, identifying multiple quantity centers to measure electricity consumption and carbon emissions by equipment type. These insights are integrated with findings from the literature review to trace year-on-year emission trends and identify potential reductions. The contribution of technological interventions to improve overall efficiency is also assessed. In the final step, MFCA outcomes are linked with enterprise resource planning systems to enhance organizational decision-making. Results reveal that operational activities account for the smallest share of emissions reduction potential (30.49%) while significant opportunities exist in the equipment installation phase and at service delivery partner sites, representing a potential improvement of up to 227%.