E&S
Grameenphone
Building a Greener Network
Established in 1996, as a joint venture between Telenor
Mobile Communications and Grameen Telecom Corporation,
Grameenphone is today the largest mobile operator in Bangladesh.
The company has 47.1 million customers and is the largest company
in Bangladesh by market capitalisation. Grameenphone has a
significant workforce, with over 4,900 direct, full-time employees
and thousands more employed through its vendor and distribution
networks. The company was listed on the Dhaka and Chittagong
stock exchanges in 2009 and recently rolled out 3G services for
mobile internet, which will increase the quality and speed of internet
available through its network.
With a population of over 160 million, 31.5% of which live below the national poverty line,
Bangladesh faces numerous economic and development challenges. However, the
country has also experienced steady GDP growth of approximately 6% over the past
several years, and a marked increase in life expectancy and literacy rates1. Like many parts
of the developing world, this growth has increased demand for mobile phones, enabling
Grameenphone to play an important role in Bangladesh’s economic development.
Many Bangladeshis will access internet for the first time via mobile handsets, rather than
on computers.
For Grameenphone, capitalising on this growing demand for mobile phone and internet
does not mean doing business at any cost. Environmental and social (E&S) management
is a core part of the company’s ethos and business strategy. The company has developed
an exemplary environmental responsibility programme, as well as a robust system to
minimise labour risks within its supply chain. It is also focused on improving access to
cellular services in rural Bangladesh to give villagers the opportunity to generate income
through self-employment.
Importantly, these initiatives are not only helping tackle environmental and social
challenges in Bangladesh today; they are also creating value for Grameenphone and its
stakeholders, and are a key part of the company’s competitive advantage.
1http://www.worldbank.org/en/country/bangladesh/overview
CDC’s investment at a glance
CDC, along with co-investors,
provided financing to support
the expansion and enhancement
of Grameenphone’s network,
technological advancement and
energy efficiency initiatives
Investment: US$25 million
Date of commitment: 2013
Country: Bangladesh
Sector: Telecommunications
E&S Positive Impact
- Reduced CO2 emissions
through use of renewable
energy, rainwater harvesting
and alternative cooling
systems, resulting in lower
costs
- Increased employee
engagement and retention
through awareness and
community programmes
- Increased brand awareness
and differentiation through
social development
initiatives
E&S: Grameenphone
E&S Integration
E&S Transformation
Environmental
Risks in
Bangladesh
Building a
Greener
Company
In Bangladesh, insufficient power supply and outages
remain a fact of life, and only 60% of the population
has access to electricity.
As part of Grameenphone’s environmental and climate
change strategy, the “Building a Greener Network”
programme is a roadmap that seeks to transform
Grameenphone’s network and office building with
environmentally friendly solutions and reduce carbon
emissions by saving energy and fuel consumption.
The company has set a target to reduce CO2
emissions by 40% by 2015, with 2008 as its baseline.
As the mobile operator in Bangladesh with the widest coverage,
Grameenphone has to generate its own electricity when it builds
mobile phone base stations in areas where commercial power is not
available. Using generators that require oil and diesel has significant
adverse environmental impacts, as well as exposing the company
to unpredictable and potentially escalating operational costs.
A growing population and increased density in urban areas is
also putting pressure on the country’s already limited waste
management systems.
Notably, Bangladesh remains one of the most vulnerable countries in
the world with regards to climate change and the associated extreme
weather events, such as cyclones and flooding.
Within this context, Grameenphone believes it is the company’s duty
to be a responsible corporate citizen, which led to the development
of its environmental and climate change strategy in 2007. Given
Grameenphone’s size and profile within Bangladesh, this initiative
is now a key part of the company’s value proposition.
Grameenphone’s environmental strategy:
-Focused on five key areas: reducing carbon emissions, creating
employee awareness, adopting green practices, creating
green momentum in society and providing green services to
its customers
-Target to reduce CO2 emissions by 40% between 2008 and 2015
-Instituted environmental management systems
-Reduced paper, electricity and water usage on its premises
The benefits of the programme to Grameenphone’s business are
notable and extend beyond the positive impact on its reputation
and ability to conduct business effectively. Some of the key
achievements include:
• Installation of solar power tower sites: 500 solar hybrid
power sites have been installed to date, replacing generator
sites. Grameenphone estimates that it will reduce CO2 emissions
by 5,400 tonnes per year and will save 2.04 million litres of fuel
annually, lowering the company’s costs over the long term. As a
result of the solar towers, the company increased its consumption
of green energy by 138% from 2012 to 2013. In addition, by limiting
its dependence on national electricity, the company is able to
ensure uninterrupted services, which leads to increased customer
satisfaction and retention positively impacting its revenues.
• Core site consolidation and optimisation: The company has
reduced the number of core site locations from 22 to 14 and installed
energy efficient equipment, which has saved approximately 400,000
litres of fuel and 11 GW-Hr electricity over the past few years. This
amounts to approximately 7,000 tonnes of CO2 reduction per year.
• Installation of DC Ventilation Systems: Grameenphone has
installed demand-controlled ventilation systems to replace the air
conditioning systems at company headquarters, which has reduced
its electricity costs. Additionally, the system saves 40-50% of energy
onsite and reduces CO2 emissions.
• Rainwater harvesting: The company has developed a rainwater
harvesting and treatment system at its offices, to reduce its
consumption of ground water. This has saved an estimated 12 million
litres of water per year.
• Recycling of electronic waste: Following the modernisation
of its network, Grameenphone recycled more than 2,000 tonnes
of electronic waste. The recycling was carried out in accordance
with international standards, by licensed recycling companies and
resulted in 98% of the e-waste being available for reuse.
E&S: Grameenphone
E&S Responsibility
Bringing
employees
on board
Health and Safety
at Grameenphone
The safety risks for the telecommunications industry
are high, as a result of tower installation and assaults
related to attempts to steal fuel. Grameenphone has
instituted a robust health and safety management
system, and the installation of solar towers is
also helping to minimise this risk, by reducing the
company’s need for fuel.2
2 For detailed information and guidance for fund managers and investors on how to minimize the risk of
fatal/serious accidents and how to help prevent future accidents, please refer to “CDC Good Practice:
Preventing Fatalities and Serious Accidents,” which is available at www.cdcgroup.com.
For environmental responsibility to be deeply
embedded in Grameenphone’s strategy and culture,
employees need to be just as engaged in the initiative
as management.
The company has launched several programmes designed to create
awareness among employees and encourage them to become
ambassadors for environmentally responsible business behaviour
within the company and the broader community. These include
celebrating Earth Hour and knowledge sharing at schools.
In addition to supporting Grameenphone’s strategy to be an
environmentally responsible company, this approach to employee
engagement demonstrates how implementing E&S management into
business strategy helps to attract and retain talented employees.
E&S
Grameenphone
Building a Greener Network
Helping the
community
Grameenphone’s commitment to environmentally responsible practices is not
limited to its own operations. The company has launched a community power
project, in partnership with the University of Oslo, to use renewable energy for
rural development.
In Paharpur, a village in northeast Bangladesh that is one of many that is not connected
to the national electricity grid, Grameenphone is using one of its solar power plants to
power a mini-grid. This grid will provide power to more than 130 households from 5 pm
to midnight daily, as well as providing internet services during the day in a community
information centre.
The company also launched the Village Phone Program in partnership with Grameen
Bank in 1997, to provide rural women with the opportunity to earn income. The Village
Phone operators purchase a mobile phone, which they make available to the village for
calls, enabling the operator to earn a profit.
Through these projects and programmes, Grameenphone is not only supporting socioeconomic development in rural Bangladesh, but also creating revenue from increased use
of its services and differentiating itself from its competitors by establishing itself as a leader
in social development.
Grameenphone’s E&S initiatives have been recognised internationally:
mBillionth Award
(Digital Empowerment
Foundation):
For SMS-based solution for maintenance of tubewells to
ensure safe drinking water in partnership with HYSAWA
Rain Water Harvesting
Award (from Water Aid
and Rain Forum):
For rain water harvesting at headquarters
Standard CharteredFinancial Express CSR
Award:
For outstanding contribution to the betterment of the
community and country’s development process
CDC
CDC is the UK government-owned development
finance institution that uses its own balance sheet
to invest in the developing countries of Africa and
South Asia. It has net assets of £2.9bn.
CDC’s mission is to support the building of
businesses in Africa and South Asia, creating
jobs and making a lasting difference to people’s
lives in some of the world’s poorest places.
Under its strategy, announced in September
2012, CDC provides debt and direct investment
to businesses as well as acting as a fund-offunds investor. CDC also now only makes
new investment commitments in Africa and
South Asia.
Find out more at www.cdcgroup.com