Own Telstra shares? Here's how the telco plans to use drones to create carbon credits

Atop cutting emissions, companies are also working on removing carbon from the air.

| More on:
Drone planting seeds in the ground for the growth of trees.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • If you own Telstra shares, you'll own part of this drone fleet 
  • Carbon credits are becoming harder to acquire 
  • The ASX 200 telco's scheme will see 158,000 trees planted 

Telstra Corporation Ltd (ASX: TLS) is taking a novel approach at meeting its carbon reduction emissions. One that includes plans for a fleet of tree tending drones.

If you own Telstra shares, you'll own part of that fleet.

So, what exactly is the S&P/ASX 200 Index (ASX: XJO) telecom giant planning?

How is the telco planning to create carbon credits?

As reported by The Australian Financial Review, Telstra intends to plant 158,000 indigenous trees and shrubs across 240,000 hectares of land in northern New South Wales.

The project will employ drones to plant the seeds and monitor tree health. It's estimated that the trees will pull some 160,000 tonnes of CO2 from the air over the next 25 years.

The land in question, according to Telstra, isn't agricultural. Rather it's land that needs repair and will be returned to its natural state.

As for the reasoning behind the company's plans, Telstra's CEO, Andrew Penn said that the price of carbon credits "is quite volatile" and they're "increasingly difficult to come by".

According to Penn:

Rather than just shop around, what I said to the team is: 'Well, why is that the case? Why is that a problem?' And, of course, part of the problem is we don't have enough carbon farming projects to, basically, create those carbon credits.

And the telco's futuristic project isn't limited to seed planting drones.

"Other technologies we intend to explore include the use of robotics and artificial intelligence to improve pest and weed management," Penn said. "And drones and sensors to monitor tree health and calculate the carbon stored in trees."

Penn said Telstra's networks, which support Australia's booming digital economy, require a lot of electricity to run.

According to Penn (quoted by the AFR):

That's driving more and more consumption, which then requires energy to run. So this is part of that overall mix of how we support development of carbon credits but also reduce our absolute [emissions] output at the same time.

How have Telstra shares been tracking?

Telstra shares, up 0.1% in early trade today, have been trailing the benchmark in 2022.

Year-to-date Telstra shares are down 7.5%, compared to a loss of 3% posted by the ASX 200.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ESG

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
ESG

Why I don't invest in 'ethical' ASX shares

Here's why we need to be careful when investing 'ethically'.

Read more »

a close up of two people shake hands in front of the backdrop of a setting sun in an outdoor setting.
Resources Shares

Rio Tinto share price marching higher amid $426 million 'industry-leading' step

Rio Tinto shares are outpacing the ASX 200 on Monday. But why?

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

Own Woodside shares? Here's why tomorrow is shaping up to be a big day

Why is Wednesday so important for Woodside shareholders?

Read more »

Image of a woman holding a model of earth on a green backdrop.
ESG

The ESG investing revolution: What you need to know to profit

ESG investing is changing the way investors approach the ASX.

Read more »

asx share penalty represented by lots of fingers pointing at disgraced businessman Crown royal commission WA
Resources Shares

Rio Tinto share price slips amid an unrelenting ESG grilling

ESG advocates and investment managers questioned Rio Tinto management at last night's British AGM.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Energy Shares

Australian first: Why Woodside shares are making news this week

Woodside shares are making news after the ASX 200 energy stock took this Australian first ‘valuable step’.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
ESG

3 ethical ASX shares poised to outperform in 2024

This leading fund manager sees strong potential gains ahead in 2024 for these three ethical ASX shares.

Read more »