Social factors, such as access and affordability of telecom services and privacy protection are the most material factors for the telecommunications sector​. This is because of the sector's key role in providing modern telecom services that are essential to the global economy and society; meanwhile, data privacy and security are becoming increasingly relevant for the creditworthiness of all stakeholders. Physical and climate transition risks are among the most material environmental factors​. The telecom sector has a large physical asset footprint that is exposed to extreme weather events. ​The sector's energy needs have become increasingly important given rapid growth of cloud and AI technologies, which are fueling demand for data centers and the amount of energy to run them. ​