BT stands to emerge as an unlikely winner from the current trends in ESG across the telecoms sector, according to analysts at UBS, though the bank’s 'sell' rating remains unchanged.
In three areas in particular BT has an advantage, says UBS.
Firstly, reduced energy consumption with 95% of its energy coming from renewable resources vs the sector average of 80%. Next, investing in mobile and fixed networks, while driving forward digitalisation, increases BT's network advantage. And finally, BT's cybersecurity arm, which offers an additional revenue stream.
On the flip side, ESG also poses risks, says UBS, notably failing to hit ambitious greenhouse gas and energy efficiency targets, potential cyberattacks on the network and pressure to hit the fibre network roll-out targets.
BT has said it is on track to meet its targets and provides regular updates on progress, but with a price target of 115p UBS remains a seller of the shares.