Supplier Engagement & Sustainability at Telstra
Telstra, Australia’s largest telecommunications company, is a leader in sustainability not just thanks to its ambitious climate targets but also by driving change across its extensive supply chain.
Telstra has been awarded an ‘A’—the highest possible rating—by CDP (formerly the Carbon Disclosure Project) for Supplier Engagement.
“This recognition reflects our leadership in climate governance, Scope 3 emissions and value chain engagement,” says Simon Antony, PM Sustainable and Responsible Procurement, Telstra.
“I’m proud to work for a company that takes climate action seriously and strives to embed sustainability into every part of our operations.”
The foundations of Telstra’s sustainability strategy
Telstra’s sustainability agenda is built on the belief that technology can – and should – drive positive environmental and social change.
“We are committed to supporting our customers and communities by contributing positively to society and the environment,” said Vicki Brady, CEO and Managing Director and Craig Dunn, Chair, in the Telstra 2024 Bigger Picture Sustainability Report.
“This means not only getting the basics right to be a responsible and trusted business, but also working to create outcomes in the best interest of all Australians.”
The company’s strategy is anchored in two core areas: reducing its own environmental footprint and fostering inclusive, resilient communities. Central to this vision is a focus on climate action, circular economy principles and responsible business practices.
Telstra has set ambitious targets, including reducing Scope 1 and 2 emissions by 70% by 2030 (from a 2019 baseline) and halving Scope 3 emissions by the same year.
By 2024, Telstra had already achieved a 37% reduction in Scope 1, 2 and Scope 3 emissions, demonstrating significant progress towards its goals.
The company is also on track to enable renewable energy generation equivalent to 100% of its consumption by 2025, having invested over A$1.4bn (US$936.5m) in new solar and wind projects.
Supplier engagement
Telstra recognises that a substantial portion of its environmental impact lies within its supply chain.
As such, engaging suppliers is a strategic priority.
The company’s partnership with CDP began in 2020, making Telstra the first Australian member of CDP’s Supply Chain Program. This collaboration has enabled Telstra to deliver training, tools and support to its top 100 suppliers, encouraging them to disclose environmental impacts and set emissions reduction targets via CDP reporting.
Between 2020 and 2024, approximately 80% of Telstra’s annual supplier spend – covering 295 suppliers – was reported through CDP. This transparency allows Telstra to assess supplier emissions, identify climate risks and jointly develop decarbonisation strategies.
The company’s approach includes embedding standard emissions reduction clauses in supplier contracts, requiring annual carbon reporting and alignment with Telstra’s climate targets.
By the end of 2023, 56 major suppliers had signed up to these new contractual commitments.
Achieving the CDP ‘A’ Rating for Supplier Engagement
CDP’s Supplier Engagement Rating (SER) assesses how effectively companies engage their suppliers on climate change.
In the 2024 disclosure cycle, Telstra earned an ‘A’ rating, placing it among the top global performers. This achievement reflects Telstra’s comprehensive supplier mapping, covering up to tier 4 suppliers across 92 countries, and its robust supplier governance framework, which assesses vendors on 12 risk categories, including environmental practices.
Telstra’s collaborative approach is key to its success.
Rather than imposing obligations unilaterally, the company involves suppliers in drafting contractual documents and supports them through education and capability-building initiatives. This ensures suppliers of all sizes are included in the climate journey, maximizing the impact of decarbonisation efforts across the value chain.
Broader sustainability achievements
Beyond supplier engagement, Telstra’s sustainability credentials are bolstered by its performance in other areas. The company achieved a 95% recycling rate for network waste in 2024 and reused or recycled over 710,000 devices. It has also moved away from carbon offsetting in favor of direct emissions reduction, reflecting a shift towards more transparent and impactful climate action.
Telstra’s social impact initiatives complement its environmental efforts, with significant investments in digital inclusion, support for First Nations businesses, and programmes to protect vulnerable customers.
