Inside BT Group’s Climate Transition Plan 2025

BT Group has set out a comprehensive plan to achieve net zero emissions by 2040, reinforcing its commitment to sustainability.

The telecoms giant has already reduced its operational emissions by 55% since 2016 and is now aiming to cut supply chain and customer-related emissions – known as Scope 3 – by 42% by 2030.

“As the climate crisis worsens, we all need to step up and speed up the transition to a low-carbon economy,” explains Allison Kirkby, CEO of BT Group.

A key component of the plan is a continued shift towards renewable energy.

BT Group already powers its global operations with 100% renewable electricity and intends to improve energy efficiency across its network infrastructure.

The company is also investing in innovative solutions such as smart buildings and AI-driven energy management systems to further reduce its carbon footprint.

“No part is too small to play in the response to the global climate crisis, and BT Group is committed to its role in driving a national and global solution,” Allison says.

Addressing supply chain sustainability

BT Group acknowledges that Scope 3 emissions, which account for the vast majority of its total carbon footprint, are the company’s greatest challenge on the road to decarbonisation.

As such, Scope 3 emissions are discussed at length in the Climate Transition Plan.

The plan outlines BT Group’s intention to work closely with its suppliers to meet stringent sustainability criteria.

We spoke with Matt Manning, BT Group’s Head of Circularity & Net Zero, at Sustainability LIVE: Net Zero earlier in March 2025, where he revealed some of the details behind this approach.

“We're fortunate within the telco sector that it's quite collaborative. We work with a lot of global working groups,” Matt explained.

“By having that kind of single point of contact within those associations, we're able to really streamline the kind of questions that we're asking the suppliers.”

“Our plan, developed against the UK TPT framework, lays out in detail the objectives, strategy and governance required to help us decarbonise our business, manage climate-related risks and support economy-wide transformation,” Matt says of the Climate Transition Plan.

The company has also committed to engaging customers in its sustainability efforts by promoting circular economy principles.

Initiatives include encouraging device recycling and refurbishing broadband equipment to reduce electronic waste.

The financial and regulatory landscape

BT Group’s climate transition efforts come at a time when regulators and investors are increasing pressure on corporations to align with net zero targets.

The UK government’s recent updates to corporate sustainability reporting requirements have made climate disclosures more rigorous and, with this new document, BT Group is looking to position itself as a leader in compliance.

This kind of philosophy comes with a price though; financially, there are risks and opportunities.

While the shift towards greener technologies may require a great deal of investment, BT Group is anticipating long-term savings thanks to its energy efficiency improvements and avoidance of heavily taxed carbon products.

“[In the report] we outline our new approach to renewable energy procurement, ensuring our transition and reporting is transparent, impactful and delivers real-world emission reductions,” Matt explains.

Wider industry implications

BT Group’s report reflects a broader movement in the telco sector.

Some of the company’s competitors including Vodafone and Deutsche Telekom have also set ambitious net zero goals, increasing the pressure to accelerate decarbonisation efforts.

“With the climate crisis worsening, we must accelerate our efforts,” says Gabrielle Ginér, Head of Environmental Sustainability at BT Group.

But despite the sea change in the industry, the road to decarbonisation still appears as complicated as ever.

With massive expansions to energy-intensive data centres and network infrastructure from big telco and tech companies, the overall consumption of energy is on the rise.

Still, a transparent and thorough plan like BT Group’s gives a clearer insight into what the sector’s trajectory may look like in the coming years.

“This year we’ve updated our near-term targets and have received validation and approval of all our net zero targets by the Science Based Targets initiative,” Gabrielle explains.

BT Group’s strategy highlights the need for sector-wide collaboration, particularly in advancing low-carbon technologies and renewable energy solutions.

What effects might BT Group’s Climate Transition Plan have?

As BT Group moves towards its 2030 and 2040 climate targets, the success of its plan will depend on effective implementation and industry cooperation.

The company’s ability to navigate supply chain challenges, adapt to evolving regulations, and invest in emerging technologies will be crucial in determining whether it can maintain its leadership in corporate sustainability.

“We remain committed to net zero and to being transparent, driving sustainability whether procuring a simple UK Fibre or complex global multi-cloud connectivity products,” says Sarwar Khan, Sustainability Director at BT Group.

This new plan is cause for real positivity, especially with the ratification of net zero targets by the SBTi. 

However, its impact will ultimately be judged by measurable progress in reducing emissions and driving systemic change within the industry.

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