Vodafone rolls out its NBN network with 4G backup
Vodafone has officially begun to accept orders for its Australian national broadband network (NBN), with the telco set to launch the service across a number of cities including Sydney, Melbourne, Canberra, Newcastle and Geelong.
The company initially made it known that it was intending to enter the market in October 2016, now having done so with the launch of three separate Vodafone NBN plans.
NBN networks have been subject to significant controversy of late. Most recently, Telstra agreed to compensate approximately 42,000 customers, having failed to achieve its advertised speeds. However, Vodafone is hoping to shake off the bad name that NBN services are being labelled with by differentiating its own product at launch.
Firstly, the service won’t require users to be a Vodafone customer, but loyalty benefits will be given to those who are. Further, the NBN network will be launched in tow with a 4G-enabled modem that will be used to ensure users remained connected even when connection faults exist.
This will make use of Vodafone’s mobile network, working through a free hub that the company will provide, offering download speeds of 12Mbps.
Additionally, the first three months on two-year plans are being offered for free as part of its launch promotion, with customers being able to secure a refund within 30 days if they are unhappy with the service.
“We are very excited to launch Vodafone NBN to complement our mobile network, allowing customers to be always connected, whether it’s at home, at work or on the go,” CEO Inaki Berroeta said.
Tech Corporations Fight for Alternative ESG Filings
In 2021, almost a third of global equity inflow went into ESG funds, according to the Bank of America. In April alone, ESG assets hit US$1.4tn, growing at 3x the rate of non-ESG funds. And although it seems like solar panel and electric car firms should take the cake for sustainable investment, it’s actually the world’s largest tech firms that command the market.
The Wall Street Journal reported that the most commonly held S&P 500 stocks in actively managed sustainable equity funds include Microsoft, Alphabet, and Apple. So it struck many as odd that in a June 11th letter to the Securities and Exchange Commission (SEC), Alphabet requested that ESG information not be disclosed in annual 10k filings.
Who Signed The Letter?
Only some of the most influential tech giants in the world...
To be fair, these companies aren’t against ESG and sustainable business. ‘Collectively, we purchase more than 21 gigawatts of clean energy and many of us are members of the UN Race to Zero and America is All In campaigns’, the joint letter to the SEC stated. ‘Each company has an individual goal to procure 100% renewable energy’.
Then Why Protest?
According to the tech companies, filing ESG information might open them up to legal risks. After all, sustainability reporting relies on estimates and assumptions that involve uncertainty—and governance issues such as fair labour are much harder to track than annual financial data. ‘It is important not to subject companies to undue liability’, the companies wrote.
Instead of reporting ESG data in their annual 10k filings, Alphabet et. al suggest that the SEC should allow for new climate-related reporting outside of the current annual or quarterly schedules. By adjusting the reporting frequency and timing, they argue, companies can provide a better and more accurate measure of how they’re doing with ESG.
Who Opposes Alternative ESG Reporting?
For the most part, asset managers aren’t thrilled. Pimco, Invesco, and other major asset funds want ESG information disclosed—the standard way. As of right now, the SEC still intends to make ESG 10k filings mandatory. ‘[Alphabet] positions itself as a sustainability leader’, said Josh Zinner, CEO of the Interfaith Centre on Corporate Responsibility. Added Molly Betounray, Director of Shareholder Advocacy at Clean Yield Asset Management: ‘While it’s great to see corporate ESG leaders advocating for climate disclosure standards, we disagree with their assertion that these disclosures should fall outside current standard SEC filings’.
What’s the Verdict?
Maybe Alphabet, Amazon, and Intel are honestly trying to frame ESG reporting in a new light. As Patrick Flynn, Vice President for Sustainability at Salesforce said: ‘[ESG disclosure] is a new process for companies to go through, and they’ll need to establish new procedures. Allowing for some sort of safe harbour from liability…[allows] companies to push in willingly and not just do the bare minimum’.
In their letter to the SEC, these companies chose to recommend several concrete actions:
- Use a principles-based framework, akin to the Task Force on Climate-Related Financial Disclosures (TCFD)
- Base GHG emissions on global standards, such as the World Resources Institute GHG Protocol
- Leverage existing SEC frameworks to reduce the reporting burden
- Adjust the timing and frequency of ESG reporting
In short: before we mandate ESG reporting, the SEC should at least think twice about how to design it.