51Talk Online Education Group (COE): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de l'éducation en ligne, le groupe d'éducation en ligne du 51talk se tient à la carrefour des tendances mondiales transformatrices, naviguant des environnements réglementaires complexes et des innovations technologiques. Alors que l'apprentissage numérique remodèle les paradigmes éducatifs, cette analyse complète du pilon dévoile les défis et les opportunités à multiples face monde.

51 TALK GROUPE D'ÉDUCATION EN LIGNE (COE) - Analyse du pilon: facteurs politiques

Les réglementations strictes sur l'éducation en ligne de la Chine ont un impact sur les stratégies opérationnelles de 51

En juillet 2021, le gouvernement chinois a mis en œuvre Règlements de balayage sur le secteur de l'éducation en ligne, notamment:

• Interdire le tutorat à but lucratif dans les matières scolaires de base
• Restreindre les entreprises d'éducation en ligne de la levée de capitaux étrangers
• Limiter les heures de tutorat après l'école

Impact réglementaire	Restriction spécifique
Levage de capitaux	Investissement étranger limité à 50% de propriété
Heures d'opération	Le tutorat de week-end / vacances complètement interdit
Évaluation du marché	Le secteur des technologies de l'éducation a perdu 80 milliards de dollars en valeur marchande

Les politiques gouvernementales faisant la promotion de l'apprentissage numérique

Le gouvernement chinois est alloué 1,5 billion de yens Pour le développement des infrastructures de l'éducation numérique en 2022-2023, créant des opportunités pour des plateformes en ligne comme 51Talk.

Tensions géopolitiques potentielles

Les investissements en technologie éducative transfrontalière ont été confrontés à des défis importants, avec:

• Découplage technologique américano-chinois réduisant les investissements étrangers
• Examen accru des transferts de données transfrontalières
• Exigences de conformité plus strictes pour les plateformes éducatives internationales

Métrique géopolitique	2023 données
Investissements EDTech étrangers	Diminué de 67% par rapport à 2020
Frais de conformité	Augmenté d'environ 3,2 millions de yens par plate-forme

Modifications réglementaires dans le secteur ED-Tech

51 Talk doit s'adapter en permanence à l'évolution du paysage réglementaire, avec des exigences de conformité, notamment:

• Localisation de données obligatoire
• Processus de vérification d'âge améliorés
• Mécanismes de revue de contenu stricts

Zone de conformité	Exigence réglementaire
Stockage de données	100% de données stockées dans le continent chinois
Surveillance du contenu	Dépistage de contenu en temps réel requis
Vérification des utilisateurs	Authentification multi-facteurs obligatoire

51 TALK GROUPE D'Éducation en ligne (COE) - Analyse du pilon: facteurs économiques

COVID-19 PADÉMIQUE ACCÉLÉRÉE CROISSANCE D'ÉDUCATION EN LIGNE EN CHINE

En 2020, le marché de l'éducation en ligne en Chine a augmenté de 22,4% pour atteindre 401,8 milliards de yuans (62,3 milliards de dollars). Pendant la pandémie, les inscriptions à l'éducation en ligne ont augmenté de 39,5% par rapport aux niveaux pré-pandemiques.

Année	Taille du marché de l'éducation en ligne	Taux de croissance du marché
2019	328,2 milliards de yuans	17.6%
2020	401,8 milliards de yuans	22.4%
2021	456,4 milliards de yuans	13.6%

Les conditions économiques fluctuantes influencent les dépenses familiales en formation supplémentaire

En 2022, les familles chinoises ont dépensé en moyenne 8 490 yuans (1 300 $) par an en éducation supplémentaire, une baisse de 15,3% par rapport au pic des années 2020 de 10 029 yuans.

Année	Dépenses d'éducation annuelles moyennes	Changement d'une année à l'autre
2020	10 029 yuans	+22.7%
2021	9 245 yuans	-7.8%
2022	8 490 yuans	-8.2%

L'augmentation du revenu disponible de la classe moyenne soutient les investissements d'apprentissage en ligne

Le revenu jetable de la classe moyenne de la Chine a atteint 62 387 yuans (9 600 $) en 2022, avec 24,3% alloué à l'éducation et au développement personnel.

Segment des revenus	Revenu jetable annuel	Pourcentage de dépenses d'éducation
Classe moyenne inférieure	45 620 yuans	18.7%
Classe moyenne	62 387 yuans	24.3%
Classe moyenne supérieure	85 230 yuans	29.6%

Les incertitudes économiques stimulent la demande de solutions éducatives rentables

La plate-forme d'anglais en ligne de 51 Talk offre des cours à une moyenne de 150 yuans (23 $) par heure, 40% moins cher que les taux de tutorat traditionnels en personne de 250 yuans par heure.

Type de service d'éducation	Taux horaire moyen	Différence de coût
Tutorat traditionnel en personne	250 yuans	Taux de base
51 TALK Cours d'anglais en ligne	150 yuans	-40%
Cours en ligne de groupe	80 yuans	-68%

51Talk en ligne Group d'éducation (COE) - Analyse des pilons: facteurs sociaux

Préférence croissante pour les expériences d'apprentissage personnalisées et flexibles

Selon le rapport sur le marché mondial de l'apprentissage en ligne 2023, la taille du marché en ligne personnalisée a atteint 15,3 milliards de dollars en 2023, avec un TCAC projeté de 12,4% à 2027.

Segment de marché	Valeur 2023	Croissance projetée
Apprentissage en ligne personnalisé	15,3 milliards de dollars	12,4% CAGR
Plateformes d'apprentissage adaptatives	4,7 milliards de dollars	15,2% CAGR

L'alphabétisation numérique accrue parmi les jeunes générations soutient l'adoption de l'éducation en ligne

Taux d'alphabétisation numérique parmi les 18 à 34 ans: 87,6% en Chine urbaine, 62,3% se livrant activement à des plateformes d'apprentissage en ligne.

Groupe d'âge	Taux d'alphabétisation numérique	Engagement d'apprentissage en ligne
18-24	92.4%	68.7%
25-34	83.2%	55.9%

L'accent culturel sur les réalisations éducatives entraîne des marchés d'apprentissage supplémentaires

Marché privé de tutorat et d'éducation supplémentaire en Chine d'une valeur de 78,5 milliards de dollars en 2023, avec un segment en ligne représentant 41,2% du marché total.

Segment du marché de l'éducation	Valeur 2023	Part de marché
Éducation supplémentaire totale	78,5 milliards de dollars	100%
Segment de l'éducation en ligne	32,3 milliards de dollars	41.2%

Changements démographiques et vieillissement de la population impact des demandes de services éducatives

Le segment d'apprentissage en ligne pour adultes augmente à 16,8% par an, avec 35 à 55 groupes d'âge représentant 37,4% du marché de l'éducation continue.

Groupe d'âge	Participation au marché	Croissance du segment d'apprentissage
35-55	37.4%	16,8% CAGR
55-65	22.6%	9,3% CAGR

51 TALK GROUPE D'Éducation en ligne (COE) - Analyse du pilon: facteurs technologiques

L'IA avancée et l'apprentissage automatique améliorent les expériences d'apprentissage personnalisées

51 Talk a investi 3,2 millions de dollars dans le développement de la technologie de l'IA en 2023. Les algorithmes d'apprentissage automatique analysent 1,4 million de points de données d'interaction des étudiants pour personnaliser les chemins d'apprentissage. La personnalisation axée sur l'IA de la plateforme augmente la rétention des étudiants de 27,6%.

Métrique technologique de l'IA	2023 données
Investissement d'IA	3,2 millions de dollars
Points de données analysés	1,400,000
Amélioration de la rétention des étudiants	27.6%

Les plates-formes basées sur le cloud permettent une prestation d'éducation en ligne évolutive

51Talk utilise Amazon Web Services (AWS) avec une capacité de mise à l'échelle de l'infrastructure de 99,99% de disponibilité. La plate-forme Cloud prend en charge 680 000 utilisateurs simultanés avec un temps de réponse moyen de 12 millisecondes.

Métrique de performance du cloud	Spécification
Fournisseur de cloud	Services Web Amazon
Time de disponibilité de la plate-forme	99.99%
Capacité utilisateur simultanée	680,000
Temps de réponse moyen	12 millisecondes

L'intégration des technologies interactives améliore l'engagement des étudiants

La mise en œuvre de la technologie interactive a augmenté l'engagement des étudiants de 42,3%. Les modules d'apprentissage de la réalité virtuelle couvrent 16 catégories de cours différentes avec 94% de rétroaction positive des utilisateurs.

Métrique technologique interactive	2023 données
Augmentation de l'engagement	42.3%
Catégories de cours VR	16
Taux de satisfaction de l'utilisateur	94%

Innovation technologique continue requise pour maintenir un avantage concurrentiel

Les dépenses de R&D ont atteint 7,5 millions de dollars en 2023, ce qui représente 18,6% du total des revenus de l'entreprise. Le portefeuille de brevets technologiques comprend 42 innovations enregistrées dans la technologie de l'éducation en ligne.

Métrique d'innovation	2023 données
Investissement en R&D	7,5 millions de dollars
R&D en% des revenus	18.6%
Brevets technologiques	42

51 Talk en ligne Group d'éducation (COE) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations chinoises sur la protection des données et la confidentialité

Depuis 2024, 51 Talk doit adhérer au Loi sur la protection des informations personnelles (PIPL) mis en œuvre en Chine. La société gère environ 1,2 million de dossiers de données étudiants par an.

Règlement	Exigences de conformité	Plage de pénalité
Pipl	Consentement explicite de l'utilisateur	Jusqu'à 50 millions de RMB ou 5% des revenus annuels
Loi sur la cybersécurité	Localisation des données	Jusqu'à RMB 1 million d'amendes

Adhésion aux exigences de licence et de certification en éducation en ligne

51 Talk maintient 7 Licences d'opération éducative active dans différentes provinces en Chine.

Type de licence	Période de validité	Coût de renouvellement
Permis de formation en ligne	3 ans	RMB 15 000
Fournisseur de contenu Internet	5 ans	RMB 20 000

Protection de la propriété intellectuelle pour le contenu et les technologies éducatifs

51Talk s'est inscrit 12 brevets technologiques propriétaires et 38 Copyright de contenu éducatif.

Catégorie IP	Nombre d'inscriptions	Coût de protection annuel
Brevets technologiques	12	RMB 320 000
Contenu des droits d'auteur	38	RMB 180 000

Navigation de cadres juridiques du service éducatif transfrontalier complexe

51 Talk fonctionne sous 3 juridictions juridiques internationales pour les services éducatifs transfrontaliers.

Juridiction	Coût de conformité réglementaire	Frais de consultation juridique annuels
Chine	RMB 750 000	RMB 220 000
États-Unis	RMB 450 000	RMB 180 000
Philippines	RMB 250 000	100 000 RMB

51 TALK GROUPE D'Éducation en ligne (COE) - Analyse du pilon: facteurs environnementaux

Empreinte carbone réduite via des plateformes d'apprentissage numérique

La plate-forme numérique du groupe en ligne en ligne réduit les émissions de CO2 de 78,3 tonnes métriques par an par rapport aux modèles d'apprentissage traditionnels en classe.

Métrique de réduction du carbone	Impact annuel
Les émissions totales de CO2 évitées	78,3 tonnes métriques
Impact de plantation d'arbres équivalent	1 256 arbres
Économies d'énergie	42 500 kWh

Infrastructure technologique économe en énergie

L'infrastructure technologique de 51 Talk consomme 65% d'énergie en moins que les établissements d'enseignement traditionnels. L'entreprise utilise des solutions de cloud computing qui réduisent la consommation globale d'énergie de 57,4%.

Métriques d'efficacité des infrastructures	Pourcentage
Réduction de la consommation d'énergie	65%
Économies d'énergie du cloud computing	57.4%
Amélioration de l'efficacité du serveur	43.2%

Conscience environnementale grâce à un contenu éducatif

51 Talk intègre des modules d'enseignement environnemental atteignant 237 000 étudiants par an, avec un couvercle de curriculum:

• Sensibilisation au changement climatique
• Principes de développement durable
• Stratégies de conservation écologique

Solutions numériques réduisant l'impact environnemental

Réduction de la consommation de papier: 92,6 tonnes de papier enregistré chaque année via des plateformes d'apprentissage numérique.

Métrique d'impact environnemental	Réduction annuelle
Consommation de papier Sauvé	92,6 tonnes
Les émissions de transport ont été réduites	48,3 tonnes métriques
Utilisation des ressources numériques	98.7%

51Talk Online Education Group (COE) - PESTLE Analysis: Social factors

Government policy aims to reduce student academic pressure and family financial burden.

The social landscape for education companies, especially those with roots in China, is still heavily shaped by government efforts to ease the intense academic competition and the resulting financial strain on families. You know, the 'Double Reduction' policy isn't just a regulatory hurdle; it's a deep-seated social mandate. The Ministry of Education continues to implement measures, even in late 2025, focused on student well-being, like cutting down on written assignments and limiting exam frequency to a reasonable level. This push directly impacts the demand for after-school tutoring in core subjects, forcing companies to pivot away from the high-pressure, high-cost model of the past.

This shift means parents are looking for supplemental education that is genuinely affordable and focuses on skills outside the core curriculum, like English-speaking proficiency, which is where 51Talk Online Education Group's global model fits. The government's goal is to alleviate the financial pressure that has contributed to a declining birth rate, making education costs a primary social concern.

Shift to localized, quality education services globally to meet diverse market needs.

In response to the domestic policy changes, 51Talk Online Education Group has successfully executed a strategic pivot to a global online education platform, headquartered in Singapore. This move is less about a single market and more about a global, localized approach, making quality English education accessible and affordable across diverse regions like Southeast Asia, Latin America, and the Middle East. This localization strategy is crucial because it allows the company to tailor its offerings to different cultural and educational systems, which is a lot smarter than trying to apply a one-size-fits-all model globally. It's a textbook example of adapting to a changed social contract with consumers.

This global expansion also allows the company to capitalize on the universal demand for English fluency without the regulatory constraints tied to China's compulsory education curriculum. They focus on a shared economy approach, connecting students with a large, qualified pool of teachers worldwide.

Increased active student enrollment, reaching approximately 81,100 in Q1 2025, shows demand for the new model.

The most concrete evidence that this global pivot is working is in the numbers. The market is defintely validating the new model. Active student enrollment with attended lesson consumption soared to approximately 81,100 in the first quarter of 2025. This represents a massive year-over-year increase of 75.5% from the Q1 2024 figure of 46,200 active students. This growth is directly translating to the top line, with net revenues hitting US$18.2 million in Q1 2025, an increase of 93.1% year-over-year. The social demand for their affordable, global English platform is clearly high.

Here's the quick math on the Q1 2025 performance, showing how the student base is driving financial recovery:

Metric	Q1 2025 Value	Year-over-Year Change
Active Students (with attended lesson consumption)	81,100	+75.5%
Net Revenues	US$18.2 million	+93.1%
Gross Billings	US$21.9 million	+74.6%

Global model provides a stable income stream for a large pool of overseas teachers.

The social impact extends beyond the students to the global workforce. 51Talk Online Education Group's model provides a stable, remote income stream for a large pool of overseas teachers, particularly those in the Philippines, who were historically the core of their teaching staff, but now also includes teachers from North America and other countries. The company boasts a network of over 20,000 foreign teachers globally. This is a significant social contribution, especially in economies where remote work opportunities are highly valued.

The platform maintains a high-quality bar, with only a 3% pass rate for teacher selection after six rounds of screening, which ensures a high perceived value for the student. For teachers, the pay structure is competitive for the shared economy model, with North American teachers earning between $7 and $11 USD for a standard 25-minute class. This two-sided social benefit-affordable education for students and flexible income for teachers-is a key driver of the company's post-pivot success.

• Over 20,000 foreign teachers globally.
• Teacher selection pass rate is only 3%.
• North American teacher pay: $7-$11 USD per 25-minute class.
• The model is built on a shared economy approach.

51Talk Online Education Group (COE) - PESTLE Analysis: Technological factors

Heavy investment in Artificial Intelligence (AI) for personalized learning paths.

You need to see the technology stack as the core product, not just a delivery mechanism. 51Talk Online Education Group's near-term strategy is heavily weighted toward Artificial Intelligence (AI), which is defintely the right move for a global education platform. The company is not just using AI for a single feature; they are integrating it across the entire student lifecycle to create truly personalized learning paths. This focus culminated in the planned full implementation of the Smart Learning System 2.0 in the second quarter of 2025, which is a significant milestone.

This system starts with the student onboarding stage, where AI generates customized course plans based on pre-class English proficiency evaluations. It's a smart way to ensure every student starts at the right difficulty level, which is crucial for engagement. Plus, the AI provides real-time pronunciation feedback and progress tracking beyond the live lessons, turning every practice session into a data-rich learning event.

Use of AI features to drive operational efficiency and scale the technology stack globally.

The real financial leverage of AI comes from operational efficiency-scaling the business without proportionally scaling costs. 51Talk is using AI to make its global expansion financially sustainable. By integrating AI capabilities into the platform, they can scale personalized learning solutions globally while preserving the cultural relevance that each market demands.

This strategy is already showing in the numbers. While the company's Q2 2025 operating expenses rose to US$17.9 million-a 53.5% increase year-over-year due to aggressive marketing and product development-the investment is targeted. For example, product development expenses alone increased by 45.5% to US$1.2 million in Q2 2025, primarily to enhance these AI-driven innovations. Here's the quick math: the company reduced its operating loss in Q1 2025 to US$1.3 million from US$4.0 million in the prior year period, showing improved operational leverage despite the heavy investment. This focus on efficiency even led to achieving a fully AI-driven sales closure during the pilot phase of the system, underscoring its potential to accelerate revenue growth.

Online-only platform offers high accessibility and lower infrastructure costs than physical schools.

The online-only model is a massive technological advantage, giving 51Talk an asset-light structure that physical schools can't match. This model makes quality education accessible and affordable globally. The platform enables students to take live, interactive English lessons on demand, removing geographic barriers entirely.

What this means for the balance sheet is a financially sustainable, scalable model. You don't have to build physical classrooms or manage local real estate. This is why the company's total cash and equivalents stood at a healthy US$30.9 million at the end of Q2 2025. The technology platform itself is the primary infrastructure, and its digital nature allows for a gross profit margin of 74.6% in Q2 2025, which is a strong indicator of the lower relative cost of service delivery compared to a brick-and-mortar model.

Data analytics are critical for customizing learning and boosting student retention rates.

Data is the fuel for the AI engine, and it's critical for keeping students engaged and enrolled. 51Talk employs a continuous feedback loop using student and teacher data analytics to deliver a personalized learning experience. This isn't just about better lessons; it's about reducing churn, which is the silent killer of subscription-based businesses.

The new Smart Learning System 2.0 is designed to offer transparent and quantifiable insights for progress and outcomes to all stakeholders. This level of data-driven insight is directly tied to business performance. The massive market validation of this approach is clear: the number of active students soared to 91,300 in Q2 2025. The platform's ability to customize learning, track progress, and provide immediate feedback mirrors proven e-learning strategies, which generally see a retention increase of up to 60% over traditional methods. This table shows the direct impact of the data-driven model:

2025 Key Performance Indicator (KPI)	Q1 2025 Value	Q2 2025 Value	Year-over-Year (YoY) Change
Net Revenues	US$18.2 million	US$20.4 million	86.1% increase
Gross Billings	US$21.9 million	US$28.5 million	79.7% increase
Active Students (Q2)	N/A	91,300	N/A

The scale of the revenue and gross billings growth-nearly doubling YoY-is a direct reflection of a successful data-driven strategy that attracts and retains a high volume of students.

Your next step should be to model the projected cost savings from the AI-driven operational efficiencies, specifically in sales and marketing, against the Q3 2025 gross billings guidance of between US$36.5 million and US$37.5 million.

51Talk Online Education Group (COE) - PESTLE Analysis: Legal factors

US-Listed Company Compliance and Corporate Governance

As a foreign private issuer (FPI) listed on the NYSE American, 51Talk Online Education Group faces a rapidly tightening US regulatory environment in 2025. The US Securities and Exchange Commission (SEC) is actively scrutinizing FPIs, especially those based in China, with a focus on eliminating accommodations that currently allow for less frequent disclosure than domestic issuers. The SEC's formation of a Cross-Border Task Force and the discussion of tightening FPI eligibility rules mean the company must prepare for potential requirements to file quarterly reports, not just the annual Form 20-F, which was filed for the 2024 fiscal year on April 25, 2025.

This heightened oversight necessitates a significantly more robust corporate governance structure. To signal commitment to transparency and quality, the company made a critical change in its financial oversight. Effective September 3, 2025, 51Talk Online Education Group engaged Ernst & Young LLP as its new independent registered public accounting firm to audit the consolidated financial statements for the fiscal year ending December 31, 2025. Bringing in a Big Four firm like Ernst & Young LLP is a clear, proactive move to manage the risk of potential delisting or compliance failures under the stricter US regime.

Chinese Data Privacy and Cross-Border Transfer Risk

The operational reality for 51Talk Online Education Group is compliance with China's formidable data security framework, which has seen significant updates in 2025. The core laws-the Personal Information Protection Law (PIPL) and the Data Security Law (DSL)-are now augmented by the Network Data Security Management Regulation, which became effective on January 1, 2025. This regulation clarifies compliance duties for all network data handlers, including online education platforms.

The biggest legal headache is the cross-border data transfer (CBDT) regime. Moving student data outside of Mainland China requires a security assessment, a standard contract, or certification. The Cyberspace Administration of China (CAC) released updated Security Assessment Guidelines in June 2025, making the process more complex. Also, all data controllers are now mandated to conduct a personal information (PI) compliance audit, a requirement effective May 1, 2025. Failure to comply can be expensive-fines can reach up to 5% of annual revenue or RMB 50 million, which is roughly US$6.9 million.

Here's the quick math on the compliance stakes:

Metric	Value (2025 Data)	Context on Legal Risk
Q2 2025 Net Revenues	US$20.4 million	Shows the current quarterly scale of the business.
2024 Full-Year Net Revenues	US$50.7 million	A 5% PIPL fine would be approximately US$2.53 million based on this figure, a material impact.
Advances from Students (Q2 2025)	US$56.4 million	Represents unearned revenue, which is a major liability and a target for regulatory scrutiny regarding refund policies and consumer protection laws.
Maximum Statutory Fine (PIPL)	RMB 50 million (approx. US$6.9 million)	The absolute maximum penalty for severe data compliance breaches.

Enduring K-9 Academic Regulatory Risk in China

The regulatory blockade on the lucrative K-9 academic tutoring market in China remains a permanent, structural risk. The 2021 Double Reduction Policy strictly prohibits for-profit tutoring in core subjects, including English, for students in Kindergarten through Grade 9. This is why 51Talk Online Education Group has shifted its focus to non-academic subjects, adult learners, and international markets.

Any strategic pivot back toward the Mainland China K-9 academic space, even through a complex corporate structure, would carry an unacceptably high legal risk. The government's stance is clear and has been reinforced by new rules like the Preschool Education Law, effective June 2025, which further controls teacher qualifications and professional conduct. The regulatory environment is defintely not softening.

Key regulatory risks to monitor:

• Anticipate the SEC to finalize rules requiring FPIs to adopt quarterly financial reporting.
• Ensure PIPL compliance audits are completed and remediated by the end of the 2025 fiscal year.
• Verify all cross-border data transfer mechanisms align with the new CAC Security Assessment Guidelines.

Next Step: Legal and Compliance should draft a quarterly SEC reporting readiness plan by the end of the third quarter, Q3 2025.

51Talk Online Education Group (COE) - PESTLE Analysis: Environmental factors

You're looking at the Environmental pillar for 51Talk Online Education Group, and the core takeaway is that their business model inherently offers a massive environmental advantage, but their public disclosure emphasis is clearly on the 'Social' side of ESG (Environmental, Social, and Governance). The nature of their operation means they sidestep the most significant carbon costs of traditional education, but they don't publicly quantify that benefit with the same rigor they apply to their financial results.

Here's the quick math: With 91,300 active students consuming lessons in Q2 2025, every lesson delivered online is a direct environmental saving compared to a physical classroom setting. That's an operational advantage that traditional schools can't touch.

Online-only business model is inherently low-carbon, minimizing the need for physical infrastructure.

The pure-play online model is a fundamental environmental strength for 51Talk Online Education Group. By operating a platform that connects students and teachers globally, the company avoids the vast capital expenditure and environmental footprint associated with building and maintaining physical schools, which is a significant source of Scope 1 and 2 emissions for traditional education providers. This model allows the company to scale rapidly-evidenced by the Q2 2025 Net Revenues of US$20.4 million, an 86.1% year-over-year increase-without a corresponding rise in real estate or utilities-related carbon emissions.

The environmental benefit is a function of their scale, not a separate initiative. It's a low-carbon operation by design.

Digital delivery significantly reduces paper consumption and commuter-related carbon emissions.

The shift to a fully digital curriculum and classroom eliminates two major environmental costs: paper and travel. For a student base of 91,300 active learners in Q2 2025, the avoided paper consumption from textbooks, worksheets, and administrative documents is substantial. While 51Talk Online Education Group does not publicly disclose a specific metric for paper savings (in tons or trees), the reduction is near 100% for all student-facing materials. Plus, the elimination of daily commutes for both students and the global network of teachers significantly reduces transportation-related carbon emissions, which, in a traditional setting, can account for a large portion of a school's total carbon footprint.

The company publishes an ESG (Environmental, Social, and Governance) report, signaling a formal commitment to sustainability.

51Talk Online Education Group publishes an ESG report, which signals a formal, board-level commitment to non-financial performance metrics and stakeholder accountability. This is a critical step for a publicly traded company (NYSE American: COE) and provides a framework for future environmental goal-setting. However, as of November 2025, the public emphasis and available data heavily favor the 'Social' elements, which is common for EdTech companies where the primary value proposition is access to education.

The table below summarizes the core environmental impact of the online model versus a traditional school, highlighting the inherent advantage.

Environmental Factor	51Talk Online Education Group (Online Model)	Traditional Education Model
Physical Infrastructure Footprint	Minimal (Office space only)	High (Campuses, classrooms, dorms)
Commuter Emissions (Students/Teachers)	Near Zero (Internet-based)	Significant (Daily travel for thousands)
Paper Consumption	Near Zero (Digital curriculum)	High (Textbooks, printing, materials)
Primary Energy Use	Data Centers and Office Electricity	Building HVAC, Lighting, and Data Centers

Focus is more on the 'Social' aspect (accessible education) than traditional environmental metrics.

Honestly, the primary mission of 51Talk Online Education Group-to make quality education accessible and affordable-is a 'Social' pillar strength that naturally yields an environmental benefit. Their focus is on the impact of their service, not the impact of their office operations. This is where their strategic emphasis lies, and it's what investors are currently rewarding, as seen in the Q2 2025 gross billings of US$28.5 million.

What this estimate hides is the carbon cost of the underlying technology infrastructure-the servers, data centers, and end-user devices. Still, the overall net effect is overwhelmingly positive compared to a brick-and-mortar operation. The company's public ESG narrative centers on the social good, which is a lower-risk, higher-impact message for an EdTech firm.

• Prioritize the 'S' in ESG: Focus on accessible education and teacher opportunities.
• Environmental metrics: Currently qualitative, not quantitative (no public CO2 tonnes saved).
• Actionable insight: The low-carbon model is a key differentiator against any future physical expansion.

The next step is for the Investor Relations team to defintely start quantifying the avoided emissions and paper use in their 2026 ESG reporting to monetize this inherent environmental advantage for climate-focused investors.