SME Sustainability Story: Managing Supply Chain Risks and Impacts at Telecom Liechtenstein

For Telecom Liechtenstein, managing supply chain risks is central to ensuring reliable communication services while meeting growing environmental, social and governance expectations. As a small but nationally significant provider, the company demonstrates how small and medium-sized enterprises (SMEs) can address complex risks even without a centralized strategic procurement or legal department.

Who is Telecom Liechtenstein?

Based in Vaduz and fully owned by the State of Liechtenstein, Telecom Liechtenstein works with more than 500 suppliers and handles nearly 7'000 deliveries and service engagements per year—spanning Liechtenstein, Switzerland and global markets. Operating within the European economic area, the company must comply with both Swiss and EU requirements, adding further responsibilities to its procurement processes.

Its agile organizational structure gives each operational circle full responsibility for supplier decisions and compliance. ESG issues are coordinated through a dedicated Community of Practice, enabling the SME to manage risks without centralized functions.

A Hands-On Multi-Angle Approach to Sustainability

Environmental Risks in the Supply Chain

Telecommunication networks rely on energy‑intensive infrastructure and complex hardware supply chains. Telecom Liechtenstein faces environmental impacts such as high electricity consumption, CO₂ emissions from network technology, raw material extraction for devices, e‑waste from short innovation cycles and land use during network expansions. These dependencies also create risks: rising energy prices, unsustainable procurement and climate‑related network disruptions.

To address these risks, the SME focuses on renewable energy use, environmental criteria in supplier selection, refurbishment and reuse practices, infrastructure sharing, supply diversification and ongoing supplier reviews. Business continuity strategies further help manage climate‑related disruptions.

Social Risks and Responsibilities

The company’s supply chain involves hardware manufacturing and raw material extraction, often associated with human rights, labour, and safety risks. Additional social factors include occupational safety among subcontractors, digital inclusion in rural areas and strong data protection requirements. Typical risks include poor working conditions at Tier 2 and Tier 3 suppliers, accidents during construction, and potential data breaches.

Telecom Liechtenstein mitigates these risks through supplier selection requirements, education and compliance guidelines for external workers, ISO 27001 certification, mandatory certifications for construction partners, contractual audit rights and ensuring connectivity strategies include underserved regions.

Governance Risks in a Regulated Environment

Operating across international regulatory frameworks creates governance challenges, including low supply chain transparency, reliance on key suppliers and compliance with export controls, sanctions and supply chain laws.

The SME addresses these risks through structured supplier selection, diversification, clear internal responsibilities, country risk and sanctions screening, adherence to international standards, and possible on‑site audits.

Why Telecom Liechtenstein joined the UN Global Compact

Following their commitment to the Science Based Targets Initiative (SBTi) and the validation of their targets in line with the 1.5°C goal of the Paris Agreement, joining the UN Global Compact marked another important step.

"It reflects our commitment to greater transparency and underscores our dedication to openly communicating our goals and actively promoting dialogue on these socially relevant issues."

Advice for other SMEs

Telecom Liechtenstein uses its Owner Strategy, Code of Conduct and General Terms and Conditions of Purchase to embed ESG considerations into daily operations. Six‑monthly supplier reviews of key suppliers, contract management processes, regulatory checks and lifecycle management ensure risks are continuously monitored and addressed.

The SME states that while no SME can manage every challenge simultaneously, structured processes and clear responsibilities enable meaningful progress in supply chain risk management.

Conclusion

A sustainable supply chain and business conduct is not built through a single initiative, but through a consistent multi-angle approach that integrates environmental, social and governance considerations into everyday decision-making. The example of Telecom Liechtenstein shows that even within the constraints of an SME, it is possible to identify complex risks, translate them into structured actions and continuously refine processes over time.

For other SMEs, the key takeaway is not perfection, but progress. Clear priorities, defined responsibilities and regular review mechanisms can turn sustainability from an abstract goal into a practical management tool.

If you are an SME and interested in inspiring fellow SMEs with your sustainability success story, do not hesitate to contact our Sustainability Advisor via email: fabio.gfeller@globalcompact.ch.

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Disclaimer: The SME Stories are intended strictly for learning purposes and do not constitute an endorsement of the individual companies. Unless otherwise indicated, the content is not intended to reflect the official positions, views or opinions of the UN Global Compact Network Switzerland and Liechtenstein. The case study does not make any assessment of whether the companies presented fully align with the UN Global Compact Ten Principles. The aim is rather to demonstrate the feasibility of sustainability management and to offer SMEs suggestions for their own implementation.

Photo credits: UN Global Compact Switzerland & Liechtenstein