ALE (Alcatel-Lucent Enterprise) has announced a major shift in its sustainability strategy, aligning with the Science Based Targets Initiative (SBTi) to tackle climate change more aggressively. The move marks a significant evolution from Corporate Social Responsibility (CSR) to a more comprehensive Environmental, Social, and Governance (ESG) framework.
Under its new strategy, ALE has committed to reducing its greenhouse gas emissions by 40% by 2030, using 2022 levels as a baseline. This target supports the broader goal of limiting global warming to 1.5 degrees Celsius, in line with international climate agreements. The company aims to achieve net zero emissions by 2050.
The newly adopted strategy involves setting ambitious targets across three key areas: Scope 1, 2, and 3 emissions. Scope 1 refers to direct emissions from ALE’s owned or controlled sources, Scope 2 encompasses indirect emissions from the generation of purchased electricity, and Scope 3 covers all other indirect emissions across the value chain.
Central to this commitment is the formation of an ESG Council, which includes members from both the Executive Management Team (EMT) and the ESG Development Committee. This Council will oversee the implementation of sustainability initiatives, ensuring that ALE adheres to best practices and remains on track to meet its 2050 net zero goal.
ALE’s transition to an ESG-focused approach also involves a comprehensive double materiality assessment. This assessment, conducted in line with the Corporate Sustainability Reporting Directive (CSRD) from the European Union, identifies the most significant areas of impact for the company and evaluates how global sustainability trends affect these areas. Based on this assessment, ALE has established new targets for 2030 and beyond.
The new strategy is built around eight key pillars, with the first being the focus of the SBTi recommendations:
- Climate Change Mitigation: Reducing the company’s carbon footprint and enhancing environmental performance.
- Product Environmental Adaptation: Developing products that are environmentally friendly and efficient.
- Human Rights: Upholding and promoting human rights throughout operations.
- Labour Practices and Employee Development: Fostering fair labour practices and supporting employee growth.
- Diversity, Equity, and Inclusion: Promoting a diverse and inclusive workplace.
- Ethics, Transparency, and Compliance: Ensuring ethical practices and transparency in operations.
- Data Privacy and Security: Protecting data and maintaining high security standards.
- Strategy and Risk Management: Integrating sustainability into strategic planning and risk management.
Rasheed Mohamad, Global Revenue and Operations Officer at ALE, emphasised the significance of this strategic shift. “The evolution of our approach to sustainability reflects our understanding and commitment to not only our organisation but to the wider industry and the world. To effect real change, we must embed sustainability into every aspect of our operations and foster a culture of accountability and inclusivity. Our targets are intentionally ambitious as we aim to lead by example and drive significant action against climate change.”
ALE’s new strategy underscores its dedication to leading the industry in sustainable practices and making a meaningful contribution to global climate goals.