Improving energy efficiency and CO2 emissions reduction in the telecom sector: from exploration to development of framework for material flow costing

Abstract Telecommunication provides the infrastructure to deliver core services but contributes to extensive CO2 emissions. This study aims to demonstrate the effectiveness of Material Flow Cost Accounting (MFCA) in reducing carbon emissions in the telecom sector through energy optimization and improving operational efficiency by using electricity consumption as raw material and quantifying energy waste. An extensive literature review is conducted to identify the critical energy conservation initiatives in the telecom sector, followed by a questionnaire survey among Indian telecom managers to rate the identified initiatives. Finally, the outcome of the factor analysis was used as input for the successful implementation of MFCA in one of the large telecom industries in India. The study demonstrates a successful case of MFCA implementation with some promising results. The present case study may help promote the implementation of MFCA in sectors where material quantification of intangible products makes the identification of waste a hurdle for MFCA adoption.