Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Circular Economy
• Landscape Protection
• Renewable Energy

Environmental Achievements

• 306 solar panels installed on sites in Serbia, reducing reliance on backup generators.
• Prioritizing landscape protection by encouraging environmentally friendly materials and practices during infrastructure deployment.

Social Achievements

• 165 employees with ten different nationalities, 32% of managers are women.
• Mandatory training sessions for all employees covering compliance, information security and employee protection.

Governance Achievements

• Compliance and risk management systems in place to observe all applicable legal regulations.
• Implementation of a compliance system including anti-corruption, anti-money laundering, antitrust regulations, and data protection.

Climate Goals & Targets

Environmental Challenges

• High inflation rates impacting purchasing power and economic demand.
• Increased workforce, energy, and IT costs.
• Intense competition for mobile network operators as customers.
• Potential for slow-down in growth of demand for mobile communication services.
• Development of new technologies (satellite internet, RAN sharing) that could reduce demand for tower-based services.
• Risk of disputes with landlords.
• Natural disasters and unforeseen events.
• Computer system failure, cyber risks, and data security.
• Repayment of outstanding debt.
• Fluctuations in interest rates.
• Failure to comply with ESG standards and expectations.
• Changes in tax laws and regulations.

Mitigation Strategies

• Efficiency measures to keep costs stable.
• Focus on new business areas to generate further growth.
• Master lease agreements with A1 Group.
• Investment grade rating from Moody’s (Baa2) and Fitch (BBB-).
• Four-year no-dividend policy to deleverage significantly.
• Exploring alternative energy solutions (solar and wind).
• Digitalization of asset management with forward-looking IT solutions.
• Efficient processes, like group-wide procurement.
• Developing the ESG agenda to ensure compliance with EU regulatory requirements.
• Compliance and risk management systems in place.
• Multi-year plan closely integrated with risk management.

Supply Chain Management

Responsible Procurement

• Encouraging the use of environmentally friendly materials and practices during infrastructure deployment.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, storms or floods

Transition Risks

• Carbon taxation
• Electricity costs

Opportunities

• Alternative energy solutions (solar and wind)

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. (EY)