How genAI can lower customer carbon footprints

Commercial context

Scope 3 greenhouse gas emissions - indirect emissions that occur in an organization's value chain, both upstream and downstream - can be substantial in telecoms. By some estimates, scope 3 emissions account for up to 80% of the telecom sector’s total emissions. CSPs are under pressure to reduce these emissions, but their customers typically lack information and clarity about their carbon footprint and how to reduce it. Insufficient incentives and programs for carbon reduction and sustainability can compound these issues.

Solution

With the advent of generative artificial intelligence (genAI), CSPs have an opportunity to drive better informed decision-making in real time. In Phase I, this Catalyst established a conceptual design for a platform that promotes low-carbon choices. The ‘Accelerating telecom’s sustainability journey - Phase II’ Catalyst builds on that foundation with a working solution underpinned by TM Forum Open APIs and genAI. The team is also employing other TM Forum assets, including the AI Data Training Repository, Service Management Standards for AI and the Data Architecture for AI-Enabled Telecom Operations.

In this phase, the goals are to use open APIs to enhance carbon transparency and provide AI-powered recommendations for eco-friendly products. In turn, this will promote sustainable products and services. To that end, the Catalyst is linking emissions data with commerce and care systems and catalogs. To enable standardized integration of emissions insights across these systems, the team are expanding TM Forum Open APIs with carbon data fields.

The overarching goal is to embed carbon visibility in both digital channels and channels involving CSP customer service staff. In digital channels, the solution uses genAI to suggest lower-emission products, plans and services based on user preferences. It also integrates carbon metadata into catalogs, so customers can compare products’ environmental impact during checkout or upgrades. In assisted channels, customer service agents are supported with carbon data and intelligent recommendations. They can guide customers toward more sustainable choices using monthly usage reports, charging patterns and predictive emissions forecasts.

The Catalyst is also exploring ways to incentivize sustainable consumer behavior by offering rewards for choosing energy-efficient products and services. Promotions of refurbished products, optimization tips and device take-back programs could additionally be supported by the solution. It could also support monetary incentives, such as discounts and rewards.

Applications

The Catalyst team is seeking to encourage ongoing behavior change and foster deeper engagement among CSP customers. The solution gives CSPs tools to influence purchase behavior, reduce environmental impact and unlock new forms of customer value. As AI-based recommendations encourage customers to purchase refurbished or energy- efficient devices, the team estimates its solution could increase sales by 20-30% in this segment.

For CSPs, the solution can help position them as sustainability leaders, improving customer retention. A robust sustainability strategy can build customer trust, with studies showing that consumers prefer brands committed to eco-friendly practices. By making a shared commitment to environmental responsibility, telcos can attract new customers.

At the same time, encouraging refurbished products can reduce CSPs’ electronic waste disposal costs. They can also offset emissions and generate new revenue streams by participating in carbon credit markets.

“This Catalyst provides a practical blueprint for reducing scope 3 emissions while strengthening customer relationships,” notes Panneer Selvam Jayaraman, Distinguished Engineer at Verizon, one of the champions of the Catalyst. "Promoting 5G and energy-efficient devices can reduce network energy consumption. This translates to millions in annual energy cost savings for telecom operators.

Wider value

Championed by OpenServe and MTC, as well as Verizon, the Catalyst is laying the groundwork for broader industry collaboration and transparency. If it is widely adopted, the solution should reduce emissions across device lifecycles and network usage. By embedding sustainability across every customer interaction, the project aims to drive progress towards global climate action goals.

“This Catalyst demonstrates that sustainability can be more than a reporting obligation. It can become a differentiator—deeply integrated into user journeys and built on industry standards,” adds Panneer Selvam Jayaraman. “With a working platform in development, CSPs can finally focus not just on climate goals, but impact too.”