Climate Change Data

Environmental Metrics

Governance Achievements

• Improved corporate website for increased understanding of company strategies and results.
• Established a Nomination Committee with representatives from major shareholders to propose decisions on electoral and remuneration issues.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Code of Corporate Governance

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Corporate Governance

Governance Achievements

• IPO completed
• Acquisition of Phonera Företag AB
• Review of Finance Department’s organization and internal processes and procedures
• Further development of internal control systems and financial reporting ahead of the IPO

Climate Goals & Targets

Environmental Challenges

• Deviations from the Swedish Corporate Governance Code (Code) in areas such as Nomination Committee composition, Board member overlap with management, and share option programs for Board members.

Mitigation Strategies

• Explanations provided for each deviation from the Code, highlighting the rationale behind the decisions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Anti-Corruption
• Ownership Structure
• Enforcement of the Tele2 Code of Conduct
• Transparency
• Privacy and Integrity

Environmental Achievements

• Decommissioned 1100 base stations, leading to a decrease in energy consumption

Social Achievements

• 80% of employees received ethics and compliance training by the end of 2017
• Four cases reported and investigated via the whistleblower policy, with disciplinary actions taken in two cases
• All required business partners signed the Tele2 Business Partner Code of Conduct (BPCoC)

Governance Achievements

• Appointment of a Corporate Responsibility Manager (later expanded to Director of Regulatory Affairs and Corporate Responsibility)
• Continued annual signing of the Tele2 Code of Conduct by all employees
• Introduction of an exit clause in contracts with business partners in case of a material breach of the BPCoC

Climate Goals & Targets

Environmental Challenges

• Administrative issues transferring permits from the former legal entity to the new legal entity during network integration, resulting in fines for operating some base stations under incorrect permits
• Cultural context disapproving of whistleblowing
• Lack of transparency in the usage of the SORM system (legal intercept system)

Mitigation Strategies

• Correct permits were assigned shortly after the occurrences of incorrect permits
• Distributed handouts and posted information on the corporate website to address public fears about electromagnetic radiation
• Continued dialogue with the Kazakh government to address concerns on privacy and integrity issues, including taking a stance against the introduction of an IMEI database
• Initiated dialogue with the Prosecutor General's office to disclose information about the use of the SORM system

Supply Chain Management

Responsible Procurement

• Tele2 Business Partner Code of Conduct (BPCoC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Child protection
• Diversity & inclusion
• Environment
• Ethics & compliance
• Privacy & integrity

Environmental Achievements

• Maintained carbon neutrality in Sweden (Scope 1 and 2) for two years.
• Decreased total energy consumption by 24% compared to 2018 (excluding divested markets).
• Committed to setting science-based targets for greenhouse gas emissions reduction.
• Assumed leadership role in the AI4Green project to increase energy efficiency.

Social Achievements

• Ranked 35th globally in Equileap's Gender Equality Report.
• Implemented a 2+1 policy for recruiting women in Sweden.
• Improved gender balance in Swedish operations, executive management, and division leadership teams.
• Continued support for BRIS and Reach for Change, impacting over 500,000 children.

Governance Achievements

• Maintained MSCI AAA-rating.
• Implemented a new anti-corruption policy.
• Updated whistleblowing policy.
• 100% of employees covered in Code of Conduct re-signing (although some issues with the learning management system impacted the process).

Climate Goals & Targets

Environmental Challenges

• Increase in data breaches under data protection legislations (from 11 in 2018 to 16 in 2019).
• Decrease in employee scores for feeling included in the MyVoice survey (from 82 in 2018 to 75 in 2019).
• Increase in Scope 1 & 2 emissions of CO2-eq. in continuing operations by 2.4%.

Mitigation Strategies

• Increased public awareness and employee training on data protection are considered possible explanations for the increase in data breaches; further improvements planned.
• Further attention will be given to building an inclusive culture to address the decrease in employee inclusiveness scores.
• Redouble efforts to decrease CO2-eq emissions in 2020.

Supply Chain Management

Supplier Audits: 27% of spend included in EcoVadis ratings.

Responsible Procurement

• Business Partner Code of Conduct for partners over SEK 1 million; clauses on human rights, labor rights, anti-corruption, and environment.

Climate-Related Risks & Opportunities

Opportunities

• Using services to enable the Internet of Things (IoT) for environmental benefits.

Reporting Standards

Frameworks Used: GRI Standards 2016

Third-party Assurance: Deloitte AB (limited assurance)

UN Sustainable Development Goals

• SDG 5 (Gender equality)
• SDG 8 (Decent work and economic growth)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 16 (Peace, justice and strong institutions)
• SDG 17 (Partnership for the goals)

Tele2 works with several targets within these goals, through core business or sustainability efforts.

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 100% renewable electricity use across all operations as of April 2020
• Reduced GHG emissions from 43,258 tons in 2019

Social Achievements

• Not disclosed

Governance Achievements

• Established a climate strategy with clear goals and a governance structure involving the Board of Directors, GLT, EVP Communications & Sustainability, and Head of Sustainability.

Climate Goals & Targets

Environmental Challenges

• Value chain risks (physical risks, price risks, product risks)
• External stakeholder risks (legislation risks, reputational risks, ratings risks)

Mitigation Strategies

• Implementation of a climate strategy with science-based targets
• Transition to 100% electric vehicles by 2024
• Use of 100% biodiesel for service vehicles and backup generators by 2025
• Transition to fuel cells or other zero-emission technology for backup generators by 2029
• Setting an internal carbon price to offset neutralization costs
• Engaging with suppliers to reduce emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Engaging with suppliers to reduce emissions; 46% of spend assumed to set 0 emissions by 2030 target

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions to supply chain

Transition Risks

• Carbon taxation
• Reputational risks
• Poorer ESG ratings

Opportunities

• Competitive advantage
• Improved brand value
• Increased customer loyalty
• Boost recruitment

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 13: Climate Action

Reducing emissions to contribute to the Paris Agreement and global net-zero goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Advance circular economy to combat climate change
• Boost innovation for sustainability
• Maximize our potential through an inclusive and diverse workplace
• Protect children in a connected society

Environmental Achievements

• Reduced GHG emissions in Scope 1 and 2 by over 90% in 2021 from the 2019 base year.
• Achieved net-zero emissions in own operations by applying the value-chain net-zero requirements as defined by the SBTi on our operations, i.e. at least -90% reduction of emissions, and offsetting through 100% carbon removals.

Social Achievements

• Maintained top rating from MSCI ESG (AAA)
• Improved S&P Global Corporate Sustainability Assessment score from 36th percentile in 2019 to 75th percentile in 2021.
• Received a B rating in CDP climate change rating (industry, European, and above global average).
• Ranked 5th best company in Sweden and in the top 5% globally in Equileap Gender Equality Global Report & Ranking.

Governance Achievements

• Launched a new sustainability strategy based on updated materiality analysis and comprehensive stakeholder dialogue.
• Received limited assurance for the entire sustainability report.

Climate Goals & Targets

Environmental Challenges

• Continued decline in legacy services in both B2C and B2B in Sweden.
• Increased demands on sustainability performance from investors, customers, and employees.
• Upcoming regulation with significant impact, especially regarding reporting requirements.
• Supply chain disruptions and risks related to human rights and labor conditions.

Mitigation Strategies

• Execution of the Business Transformation Program in Sweden (SEK 500 million annual run-rate savings achieved by the end of 2021).
• Development of a new sustainability strategy with clear long-term goals and measurable activities.
• Setting industry-leading science-based targets for GHG emission reductions.
• Requiring significant business partners to sign the Tele2 Business Partner Code of Conduct.
• Conducting on-site audits of suppliers based on annual risk assessment.
• Engaging with top 20 suppliers on GHG emission reduction targets.

Supply Chain Management

Supplier Audits: 3 on-site audits conducted in 2021

Responsible Procurement

• Tele2 Business Partner Code of Conduct
• EcoVadis Business Sustainability Ratings
• Annual risk assessment

Climate-Related Risks & Opportunities

Physical Risks

• Acute and chronic physical risks

Transition Risks

• Reputation, market, technology, and policy and legal risks

Opportunities

• Efficiency improvements from 5G network modernization

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD, SFDR

Certifications: Svensk Miljöbas

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• SDG 5, SDG 8, SDG 9, SDG 11, SDG 12, SDG 13, SDG 16, SDG 17

Tele2's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Mobile as a Service
• IoT solutions for smart buildings

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Advance circular economy to combat climate change
• Boost innovation for sustainability
• Maximize our potential through an inclusive and diverse workplace
• Protect children in a connected society

Environmental Achievements

• 95% scope 1 and 2 emissions reduction since 2019
• Became the first telco in the Nordics and Baltics to set approved Net-Zero science-based target for emissions (2035)
• Received an A rating from CDP for ambitious climate efforts
• Adopted a circular economy target for network equipment (100% responsibly resold, reused, remanufactured or recycled by 2025)
• 12.7% share of reclaimed mobile phones in Swedish operations (B2B and B2C)

Social Achievements

• Launched a 5G Unlimited portfolio based on speed-tiering
• Achieved gender balance in Swedish stores
• Improved inclusion score (89 out of 100)
• Increased percentage of customers using Trygg Surf (child profile) by 21%
• Blocked over 214,000 attempts per month to access CSAM

Governance Achievements

• Launched a green and sustainability-linked financing framework
• Issued the first sustainability-linked bond
• Signed a sustainability-linked revolving credit facility
• Updated reporting to the new GRI Universal Standards, EU Taxonomy, SASB standards, TCFD recommendations, and SFDR requirements
• Sought limited assurance for the sustainability report

Climate Goals & Targets

Environmental Challenges

• Increasing energy costs
• Inflationary pressure
• Changes in exchange rates
• Supply chain disruptions
• Competition for consumers’ wallets

Mitigation Strategies

• Cost savings related to the Business Transformation Program
• More-for-more pricing strategy
• Product innovation
• Digitalization of customer journey
• Service quality enhancements
• Energy saving initiatives
• Evaluation of alternative energy sources

Supply Chain Management

Supplier Audits: 3 on-site audits conducted in 2022

Responsible Procurement

• Business Partner Code of Conduct
• EcoVadis Business Sustainability Ratings
• Sustainability criteria in Request for Proposals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Wildfires
• Cold waves
• Heat waves
• Changes in precipitation
• Increased mean temperature
• Sea level rise

Transition Risks

• Increased and/or volatile raw material prices
• Restrictions and bans on fossil fuels and refrigerants
• Increased pricing and/or taxes on greenhouse gas emissions
• Increased stakeholder demands on corporate climate action
• Unreliable electric grid capacity
• Disruptive change of user behavior

Opportunities

• Efficiency improvements through AI and renewable energy

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation, SASB, TCFD, SFDR

Certifications: ISO 27001 (Sweden), PCI-DSS (Sweden)

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Tele2's initiatives contribute to these goals through various programs and partnerships

Sustainable Products & Innovation

• IoT and AI solutions for energy efficiency and sustainable business models

Awards & Recognition

• CDP Climate Change A List

Environmental Metrics

ESG Focus Areas

• Advance circular economy to combat climate change
• Boost innovation for sustainability
• Maximise potential through an inclusive and diverse workplace
• Protect children in a connected society

Environmental Achievements

• 97% scope 1 and 2 emissions reduction since 2019
• Ranked number one among Europe’s top 500 climate leaders by The Financial Times
• Awarded for the most transparent climate reporting on Stockholm OMX Large Cap by 2050 Consulting AB
• Committed to reuse and recycle 30% of its distributed phones by 2030

Social Achievements

• Ranked number one in Sweden and thirty-two globally for gender equality by Equileap
• Launched Sweden’s first real connection guarantee

Governance Achievements

• Successfully issued a new EUR 500 million bond

Climate Goals & Targets

Environmental Challenges

• Volatile energy costs
• Inflationary pressure
• Changes in exchange rates
• Highly competitive environment and changing technology
• Customer churn
• Ability to recruit and retain skilled personnel
• Climate change transition risks
• Unstable geopolitical conditions
• Risks related to corruption and unethical business practices
• Risks related to pandemics

Mitigation Strategies

• Resilient business model offering highly valued services
• Solid balance sheet
• Closely monitoring technological advances and competitive market changes
• Continuously improving customer experience and increasing customer satisfaction
• Providing incentives for employees to retain and contribute
• Transitioned to renewable electricity and certified Environmental Management System according to ISO 14001:2015
• Working to reduce GHG emissions
• Closely monitoring the development on world events
• Anti-corruption policy and code of conduct
• Adaptive crisis management plan

Supply Chain Management

Supplier Audits: 5/year

Responsible Procurement

• Tele2 Business Partner Code of Conduct
• EcoVadis Business Sustainability Ratings
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Wildfires
• Cold waves
• Heat waves
• Changes in precipitation
• Increased mean temperature
• Sea level rise

Transition Risks

• Failure to meet investor demands
• Failure to meet banking criteria
• Increased raw material prices
• Restrictions on fossil fuels
• Restrictions on refrigerants
• Increased taxes on GHG emissions
• Increased stakeholder demands
• Unreliable electric grid capacity
• Disruptive change of user behavior

Opportunities

• Efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, EU Taxonomy Regulation

Certifications: ISO 14001:2015, ISO 27001 (Sweden), PCI-DSS (Sweden)

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

See page 55 for details

Sustainable Products & Innovation

• Climate Impact Tool
• Smart Property services

Awards & Recognition

• Financial Times Climate Leaders in Europe 2023 (#1)
• Equileap #1 in Sweden for gender equality
• #1 for climate reporting among companies listed on the Stockholm Stock Exchange