T-Mobile makes renewable energy deal with Puget Sound Energy for US headquarters
Telecommunications ‘un-carrier’ giant T-Mobile has joined Puget Sound Energy’s ‘Green Direct’ program to power its Bellevue headquarters in Washington with 100% renewable energy.
The local supplier’s Green Direct initiative is a renewable energy program specifically designed to meet customer demands – it provides corporations with solutions to meet their carbon reduction goals and allows them to “purchase 100% of their energy from a dedicated, local, renewable energy resource, while providing them with a stable, cost efficient solution”.
The announcement forms another step toward T-Mobile’s commitment to RE100, which will mean it uses 100% green energy in all of its operations by 2021.
CEO John Legere said of the deal: “At T-Mobile, we really mean it when we say we’re going to clean up wireless for good… and in this case that means cleaning up our impact on the planet by making a BIG commitment to renewable energy. We’ve put a stake in the ground to go 100% renewable by 2021 – because it’s the right thing to do and it’s smart business.”
The business announced its commitment to RE100 in January this year, saying it hopes its sustainability journey will help it save around $100mn in energy costs. In total, T-Mobile states it uses 2.3MWh to power its stores, cell towers and other facilities.
RE100 is a commitment organised by The Climate Group. It currently includes Ikea, AB InBev, Nike and Pearson among others, and most recent additions include WeWork, RBS, McKinsey and Sony.
The Climate Group recently announced some positive news for companies like T-Mobile, saying that its members tend to perform better financially than their non-RE100 counterparts. A report compiled in conjunction with Capgemini states that, from a sample of 3,500 companies, RE100 members enjoy “above average financial performance”.
Upon joining RE100, Legere said the decision was not only to ‘do right by’ the company’s customers but also made good business sense. “We expect to cut T-Mobile’s energy costs by around $100mn in the next 15 years thanks to the move. Imagine the awesome things we can do for our customers with that!”
You can read more about T-Mobile’s journey in our upcoming Gigabit feature.
M&A activity key lever for future tech sector growth
Despite the continuing uncertainty of the pandemic, the tech sector has witnessed soaring dealmaking activity over the past year, rocketing in the second half of 2020, with the last quarter of 2020 a record one for M&A activity, and momentum continuing into 2021.
Dealmaking in tech sector soars in past year
And the latest figures bear this out with the number of technology M&A deals totalling US$208.44bn globally in Q1 2021, according to GlobalData. While the US holds top spot both in volume of deals (1034) and total value (US$140.61bn), Europe ranked next with 649 deals (US$44.49bn) with the UK continuing its reign as Europe’s biggest M&A market with 204 deals.
In particular, megadeals – those valued at US$5bn or more – soared in 2020 representing 59% of all global technology sector deal value in 2020, up from 47% in 2019, according to the latest edition of the EY Technology Global Capital Confidence Barometer.
This tech sector trend towards megadeals is backed up by EY’s CCB data, with 16% of tech sector respondents planning to pursue transformative deals valued at US$5bn or more in the near-term.
While technology deal activity “all but stopped at the beginning of 2020 after fluctuating between historic highs and lows, companies pivoted quickly and tech M&A exploded in the second half of the year”, says Barak Ravid, EY Global TMT Leader for Strategy and Transactions.
M&A activity level for tech sector growth
Looking ahead to the future, technology executives are optimistic, with nearly half (47%) expecting profitability to fully rebound this year, according to CCB data, compared to 23% across all sectors, and with more than half (51%) planning to pursue M&A in the next year in order to sustain growth.
According to Ravid, M&A activity is increasingly becoming a key lever for growth as businesses look to recover.
“To position themselves for future revenue growth, tech companies are now adjusting their M&A strategy to focus more on a target’s business resilience, digital technology alignment and to gain market share through consolidation,” says Ravid.
However, with an increasingly competitive deal market and ongoing geopolitical tensions, the majority of tech execs expect to see more competition in the bidding process for assets over the next year, primarily from private capital.