Bredband2
Bredband2 - ESG profile (ABG Sundal Collier)
2019-07-15 15:18
Opportunities and threats
As a market-leading broadband operator, Bredband2 is an entrusted supplier of large amounts of data, which creates demand for data security and product reliability. These are both related to BRE2’s private and corporate segment. For the latter, insufficient network protection could expose companies to reputational and legacy risk. Furthermore, cybersecurity threats can cause severe economic damage. Herjavec, a cybersecurity advisory firm, estimates that cybercrime will cost global society USD 6.0trn by ‘21, a 100% increase compared to 2015. Given BRE2’s fibre-oriented characteristics, the company has a lower environmental footprint than corresponding metal-based (copper and coax) network operators. Fibre networks are less energy consuming, longer lasting, and cheaper to run. It is also worth mentioning that the telco industry is heavily regulated and exposure to anti-trust action is a constant risk. BRE2 possesses a market share of ~10% today, which could lead to potential M&A activity in the future. However, we assess the risk to be low, given that the three largest players (i.e. Telia Company, Telenor and Com Hem) have ~70% of the market, which means that BRE2 is still a small operator in relative terms.
ESG activities
As of today, Bredband2 does not disclose any quantifiable ESG data or targets. Even so, it is continuously dedicating more resources to improve privacy and data security. During 2019, it has also enhanced its IT security offering through an intensified collaboration with Cisco.
As a market-leading broadband operator, Bredband2 is an entrusted supplier of large amounts of data, which creates demand for data security and product reliability. These are both related to BRE2’s private and corporate segment. For the latter, insufficient network protection could expose companies to reputational and legacy risk. Furthermore, cybersecurity threats can cause severe economic damage. Herjavec, a cybersecurity advisory firm, estimates that cybercrime will cost global society USD 6.0trn by ‘21, a 100% increase compared to 2015. Given BRE2’s fibre-oriented characteristics, the company has a lower environmental footprint than corresponding metal-based (copper and coax) network operators. Fibre networks are less energy consuming, longer lasting, and cheaper to run. It is also worth mentioning that the telco industry is heavily regulated and exposure to anti-trust action is a constant risk. BRE2 possesses a market share of ~10% today, which could lead to potential M&A activity in the future. However, we assess the risk to be low, given that the three largest players (i.e. Telia Company, Telenor and Com Hem) have ~70% of the market, which means that BRE2 is still a small operator in relative terms.
ESG activities
As of today, Bredband2 does not disclose any quantifiable ESG data or targets. Even so, it is continuously dedicating more resources to improve privacy and data security. During 2019, it has also enhanced its IT security offering through an intensified collaboration with Cisco.
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