China Mobile Limited is a mobile services provider, maintaining China’s largest mobile network and the world’s largest mobile customer base. The company’s primary environmental impact is its energy use. The carbon footprint of a mobile phone is made up of the energy required to manufacture and power the phone as well as the energy needed to run the base stations that transmit radio waves through a network of fixed antennas. China Mobile is working to improve the efficiency of its base stations; upgrades include intelligent ventilation and heat exchange systems that allow for reduced air conditioning and a centralized monitoring system that can remotely control cooling equipment.
The company has also implemented an energy conservation rating for its telecommunication and auxiliary equipment and it increases energy efficiency by upgrading this equipment biannually. Additionally, China Mobile utilizes renewable energy at a small percentage of its base stations, including a newly developed base station that combines wind and solar modules to generate electricity. The company has established a take-back program for all mobile phones, batteries, and accessories; recycling bins are available at its outlets and partner facilities. China Mobile has made significant energy efficiency efforts, however, China’s fuel mix is heavily dependent on coal, so the company’s carbon dioxide emissions are relatively high, especially when compared with its U.S. and European competitors.
While we applaud the company’s plans to further reduce its dependence on traditional base stations, we have asked the company to expand its renewable energy commitments on a group-wide basis.
Industry: Telecommunication Services
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 10/5/15 and may not reflect current opinions or subsequent events.