Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Open Innovation
• Corporate Social Responsibility

Environmental Achievements

• Reduction in energy intensity (kWh/tower) between 2014 and 2015 due to the addition of new sites with lower consumption.
• Implementation of 18 energy efficiency projects at various sites.
• Significant cut of 15.6% in diesel consumption in Spain compared to 2014.

Social Achievements

• Successful IPO demonstrating strong value proposition and investor confidence.
• High customer satisfaction level of 86.8% (satisfied and very satisfied) in 2015.
• Foundation of the Cellnex Volunteers network for employee engagement in solidarity projects.
• Joined the United Nations Global Compact.

Governance Achievements

• Designed a corporate governance structure emulating best practices.
• Approval of new Cellnex Code of Ethics.
• Implementation of a risk management model.

Climate Goals & Targets

Environmental Challenges

• Transformation from a national single-product company to an international and multi-product one.
• Combining growth and consolidation.
• Maintaining momentum towards internationalisation.
• Meeting investor expectations.

Mitigation Strategies

• Adapting management processes, corporate governance, organizational culture, and teams; adopting a model for integration of new acquisitions.
• Concluding new agreements with telecommunications operators.
• Consolidating positions in Spain and Italy; exploring opportunities in other European markets.
• Addressing challenges and earning investor confidence.

Supply Chain Management

Supplier Audits: 1,683 suppliers assessed in Spain in 2015.

Responsible Procurement

• Priority given to local suppliers (100% in Italy, 98% in Spain).
• Supplier assessment system classifying suppliers into three categories (A, B, C).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, International Integrated Reporting Council

Certifications: ISO 9001, ISO 14001, OHSAS 18001, UNE 166002, ISO 17025, ISO 27001

Awards & Recognition

• EFQM 500+ European Seal of Excellence

Environmental Metrics

ESG Focus Areas

• Ethical management and good governance
• People development
• Sustainable business development
• Adding value to society
• Communication and reporting
• Governance of corporate responsibility

Environmental Achievements

• Avoided consumption of 5,083,256 KWh, representing 1,999.48 Tn eq CO2 in 2016, with regard to consumption figures for 2015 through energy efficiency projects in Spain.
• Offsetting Scope 1 GHG emissions from Spain’s 2015 footprint (2,576 t.CO2e) with the Balikesir Wind Power Plant Project.
• Manages and recovers 99% of waste generated on-site.

Social Achievements

• Implemented the “talent management model” aligned with business strategy.
• Implemented a comprehensive talent management tool called “the Hub”.
• Provided more than 45,000 hours of training to staff in Spain and Italy.
• Maintained stable staff turnover in Spain (4%) and Italy (3%).
• Updated the Equal Opportunities Plan to increase the proportion of women in the company.
• Collaborated with the Spanish and Italian Red Cross organizations and TV3 Telethon.

Governance Achievements

• Approval of a Selection policy for directors to promote gender-balanced Board of Directors.
• Creation of the Ethics and Compliance Committee.
• Updating and adapting the Internal Code of Conduct.
• Amending the Bylaws to facilitate shareholder meeting attendance.
• Formalisation of the Communication and contact with shareholders policy; the Board remuneration policy; and the Corporate Responsibility Plan (2016-2020).

Climate Goals & Targets

Environmental Challenges

• Managing the growth of the workforce due to acquisitions.
• Maintaining investor confidence while expanding internationally.
• Consolidating Cellnex as a company while driving international expansion.
• Gradually adopting policies and best practices.

Mitigation Strategies

• Rolling out the “Apollo” programme to adapt management processes.
• Implementing the “talent management” model.
• Creating the Ethics and Compliance Committee.
• Formalizing policies and procedures, consolidating sound corporate governance structures, and implementing a project to transform management.

Supply Chain Management

Supplier Audits: 357 suppliers consulted in Spain, 7 incidences related to labor practices detected.

Responsible Procurement

• Priority given to local suppliers (100% in Italy, 93% in Spain).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO 14001, OHSAS 18001, UNE 166002, ISO 17025, ISO 27001

Third-party Assurance: PricewaterhouseCoopers Auditores, S.L.

Sustainable Products & Innovation

• DAS (Distributed Antenna System)

Awards & Recognition

• Llotja 2016 Award
• Best newcomer Spain (CDP Climate Leadership Awards 2016)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Development
• People Development
• Stakeholder Engagement
• Environmental Management

Environmental Achievements

• Verified carbon footprint of Cellnex Spain and Italy
• Voluntary annual compensation of CO2 emissions (2,420 tCO2e in Spain)
• Increased waste recovery percentage
• Energy efficiency projects avoided 100,773 kWh, representing 35.2 Tn eq CO2 in 2017

Social Achievements

• Incorporation of a new women independent Director
• 92% of customers satisfied with Cellnex service
• 82% of action lines in the 2016-2020 CR Master Plan underway, 52% achieved
• Pilot project with service-sector entities to incorporate IoT in social housing
• Stable staff turnover in Spain (2%)
• 44,824 hours of training provided to staff in Spain and Italy (5,058 hours on workplace safety)

Governance Achievements

• Expansion of the board from 9 to 10 members, increasing board independence
• Appointment of Bertrand Boudewijn Kan as Vice-Chairman
• Inclusion in FTSE4Good and Standard Ethics indexes
• First Capital Markets Day since IPO

Climate Goals & Targets

Environmental Challenges

• Transforming from a national single-product company into an international and multi-product one
• Balancing growth and consolidation
• Maintaining internationalization momentum
• Maintaining investor confidence
• Increasing competition
• Risk of infrastructure sharing
• Risks inherent in acquisitions and international expansion
• Regulatory risks
• Litigation
• Financial risks (foreign currency, interest rate, credit, liquidity, inflation, indebtedness)

Mitigation Strategies

• Implementing a management change project ('Change Management')
• Approving an international assignments policy
• Creating an onboarding program
• Implementing an efficiency plan to streamline operating investments and expenditures
• Establishing systems to monitor compliance with applicable laws and regulations
• Creating a corporate compliance function
• Establishing an Internal Control over Financial Reporting System (ICFRS)
• Implementing a Model for the Prevention of Criminal Offences (MPD)
• Hedging foreign currency risk
• Maintaining a balanced debt structure
• Implementing contractual arrangements to transfer credit risk
• Maintaining sufficient liquidity
• Implementing a prudent management of liquidity risk

Supply Chain Management

Supplier Audits: 286 suppliers audited in Spain; 8 incidents related to negative social impacts detected.

Responsible Procurement

• Purchasing Policy establishes requirements for supplier compliance with corporate policies and values
• Priority given to local suppliers (98.8% in Italy, 93.8% in Spain)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), AA1000 AccountAbility Principles Standard

Certifications: ISO 9001, ISO 14001, OHSAS 18001, UNE 166002, ISO 27001, ISO 14064-1

Third-party Assurance: Deloitte, SL

Sustainable Products & Innovation

• DAS (Distributed Antenna System)

Awards & Recognition

• Mediterranean Lighthouse Award
• Company of the Year Award (La Rioja)
• IEF Award for Financial Excellence in Communication
• Company of the Year Award (France)
• Honorable Mention of the Llotja Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions and visual impact of new towers due to co-location (more details in March 2023 report)

Social Achievements

• Supporting 5G infrastructure rollout and European digital transition; Bridging the digital divide by improving service quality in rural areas; Facilitating market entry for non-MNO tenants

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Historically lagged other regions in outsourcing to independent TowerCos due to MNO strategies, early formation of MNO sharing JVs, and limited policy incentives for infrastructure sharing; Market for towers has developed such that rural areas tend to see less investment in high-quality communications services

Mitigation Strategies

• MNOs carving out their tower portfolios in separate MNO-controlled TowerCos; MNOs setting up JVs to pool passive infrastructure resources; Tower portfolio divestments from MNOs to reduce debt and raise cash for investment in core business activities; TowerCos (independent and MNO-influenced) growing organically and/or building towers in build-to-suit programs for MNOs; Public-private cooperation in infrastructure deployment in rural areas

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Sustainable Development
• Biodiversity
• Resource Conservation
• Sustainable Mobility
• Responsible Supply Chain Management
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions/annual income by 39% compared to 2019
• Reduced energy consumption/annual income by 18% compared to 2019
• 100% waste recovery in Cellnex Spain
• 99.2% of scope 3 emissions analyzed for all countries
• Offset 2,850 tons of CO2 from Scope 1 emissions through VER credits
• 40% of Cellnex's energy consumption in 2021 is certified green energy
• 50% certified green energy consumption in Spain in 2021

Social Achievements

• Global mobility study conducted
• Educational programs implemented on climate change and circular economy
• Participation in Barcelona Climate Plan co-production
• Collaboration with Ambientech on educational portal
• Participation in BICISENDAS project promoting bike lanes
• Participation in RESISTO project improving response to natural disasters
• LEAN project providing broadband internet service in rural areas

Governance Achievements

• Creation of the Appointments, Remuneration and Sustainability Committee (CNRS)
• Launch of an ESG Executive Committee
• Updated ESG Master Plan (2021-2025) aligned with SDGs
• Participation in sustainability indices (DJSI, CDP, FTSE4Good, Sustainalytics)

Climate Goals & Targets

Environmental Challenges

• Rising temperatures
• Sea level rise
• Increased risk of extreme weather events (hurricanes, floods, wildfires)
• Increased emission reporting obligations
• Rising electricity prices
• Increased electricity consumption of cooling systems
• Potential electromagnetic impact of towers on environment and health

Mitigation Strategies

• Analysis of climate scenarios based on TCFD recommendations
• Energy Transition Plan to reduce emissions and incorporate renewable energies
• Energy efficiency projects (free-cooling, ENERTIKA)
• Purchase of green energy and PPAs
• Global mobility study and measures to promote sustainable mobility
• DaNa program to identify sites in protected areas
• Collaboration with expert groups on electromagnetic emissions
• Waste management requirements for suppliers
• Implementation of an internal carbon price

Supply Chain Management

Supplier Audits: 190 suppliers evaluated on environmental issues in 2020 (Spain, France, Switzerland, Netherlands)

Responsible Procurement

• Environmental requirements form for suppliers
• CDP Supply Chain questionnaire
• Collaboration with EcoVadis for supplier ESG assessment

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures
• Sea level rise
• Hurricanes
• Floods
• Wildfires

Transition Risks

• Increased emission reporting obligations
• Rising electricity prices
• Changes in customer and investor preferences

Opportunities

• Increased demand for climate monitoring and adaptation products/services
• Improved energy management and efficiency
• Use of more efficient production and distribution processes
• Use of less carbon-intensive energy sources
• Development of low-carbon goods and services

Reporting Standards

Frameworks Used: TCFD, GHG Protocol, ISO 14064-1:2018, ISO 14064-3:2019, ISO 14040:44, UN SDGs, UN Global Compact

Certifications: ISO 14001, ISO 50001, LEED, WELL

Third-party Assurance: TÜV Rheinland Inspection, Certification & Testing, S.A.

UN Sustainable Development Goals

• SDG 7
• SDG 6
• SDG 9
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Cellnex's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Free-cooling systems
• ENERTIKA photovoltaic self-generation pilot
• IoT networks for water management
• 5G technology deployment in rural areas

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Biodiversity

Environmental Achievements

• Increased self-generated renewable energy from 477 MWh to 1,765 GWh, doubling from the previous year.
• Reduced total emissions by 48% compared to 2020.
• Achieved 77% renewable electricity consumption (compared to 10% in 2020).

Social Achievements

• Launched a new training program called “Telecommunications in a sustainable world” on the Ambientech educational portal.
• Maintained collaboration with Ambientech, participating in educational programs on climate change, circular economy, and smart green planet.
• Donated 102 obsolete mobile phones, preventing 15kg of electronic waste and 806kg of CO2.

Governance Achievements

• Established an ESG leader for each country within the group to improve communication and advance sustainability in daily operations.
• Concluded the Strategic Sustainability Plan (2021-2023) and defined a new Environment and Climate Change Strategic Plan (2023-2025).
• Obtained LEED and WELL certifications for the Cellnex corporate building in Barcelona (Torre Llevant).

Climate Goals & Targets

Environmental Challenges

• Increased concern or negative feedback from stakeholders.
• Reputational risk (short and medium term).
• Changes in consumer preferences.
• Increased average temperatures (long-term chronic risk).
• Increased severity and likelihood of extreme weather events.

Mitigation Strategies

• Established science-based targets aligned with a 1.5°C scenario.
• Developed a Climate Change Adaptation Plan.
• Incorporated climate change risks into the global risk management system.
• Defined a Net-Zero Strategy by 2050 with an intermediate milestone of Carbon Neutral by 2035.
• Implemented an internal carbon price pilot program.

Supply Chain Management

Supplier Audits: 225 suppliers responded to CDP Supply Chain questionnaire out of 355 invited (63%)

Responsible Procurement

• Supplier Code of Conduct
• Green Procurement Protocol
• ESG criteria in supplier selection and evaluation
• CDP Supply Chain program participation

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods, forest fires)
• Increased average temperatures
• Habitat degradation

Transition Risks

• GHG emissions price increase
• Increased emissions reporting requirements
• Increased energy costs
• Changes in consumer preferences
• Changes in investor preferences

Opportunities

• Use of more efficient production and distribution processes
• Use of less carbon-intensive energy sources
• Carbon market participation
• Development of low-carbon goods and services
• Development of new products or services to respond to customer preferences
• Use of public sectorial incentives to access new markets

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, SBTi

Certifications: ISO 14001, ISO 14064, ISO 14046, ISO 50001, LEED Gold

Third-party Assurance: Deloitte, S.L.

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Cellnex aligns its Sustainability Strategy with relevant SDGs, maximizing positive impact and reducing negative impact.

Sustainable Products & Innovation

• Nest baskets for storks

Awards & Recognition

• CDP 'A List' for Climate Change (fourth consecutive year)
• Inclusion in S&P Global Sustainability Yearbook 2023

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed