Strategic vision

Materiality

In 2020 Cellnex updated its materiality matrix based on an internal and external diagnosis carried out that year, which identified the issues of relevance to Cellnex and its stakeholders. The diagnosis was also used to update the Company's stakeholder map, and as a starting point for the drafting of the new ESG Plan 2021-2025.

For the internal diagnosis, a questionnaire was devised with eight aspects or topics, and within each one, 35 specific aspects and the focus of the analysis were defined. For each specific aspect, the importance and management by senior management and general managers in each country in which Cellnex operates was analysed. The public and internal documentation available at Cellnex relating to the management of the various business aspects related to environment, social and governance (ESG) issues was also analysed, such as the Strategic Sustainability Plan (2019-2023) and the Equity, Diversity and Inclusion Programme (2019-2022).

For the external diagnosis, the demands of opinion leaders and trends in the media in the various predefined thematic areas were identified. In addition, an analysis was carried out to identify good practices in ESG issues in the telecommunications sector. For this purpose, eight companies similar to Cellnex were selected and their ESG initiatives were analyzed based on publicly available information on each company. It was also consulted public information on benchmark opinion leaders, including sectoral sustainability prescribers (DJSI, CDP, MSCI, Sustainalytics), reporting frameworks (IIRC, TCFD, GRI, SASB, SDGs) and national and international regulation (ILO, CNMV), among others.

For both the internal and external diagnosis, the various inputs considered for the analysis were weighted according to their relevance. This enabled Cellnex to identify significant and non-significant issues for the Company. These issues of relevance to Cellnex and its stakeholders are shown in the materiality matrix presented below, which identifies 16 specific material aspects of the 35 initial ones.

or both the internal and external diagnosis, the various inputs considered for the analysis were weighted according to their relevance. This enabled Cellnex to identify significant and non-significant issues for the Company. These issues of relevance to Cellnex and its stakeholders are shown in the materiality matrix presented below, which identifies 16 specific material aspects of the 35 initial ones.

The materiality analysis was carried out with a dual approach. One focused primarily on the impact of sustainability issues on the entity (a more financial approach, or “outside-in”). The second, considering a qualitative analysis of the important issues for Cellnex's stakeholders related to a greater impact of the business on the environment (impact approach, or "from the inside out").

By 2022 Cellnex plans to update its materiality matrix again to incorporate the inputs of the new business units that joined the Company in 2020 and 2021.

ESG Master Plan

Cellnex's commitment to ESG is a priority for the Group and a central and essential element of the corporate strategy. In 2020 the Company approved the ESG Master Plan 2021-2025, a framework for deploying the Group's ESG strategy in all the countries where is present.

This Master Plan is an example of how more time and resources are being dedicated to ensure that Cellnex operates responsibly in all aspects of the ESG concept. For example, the remuneration of senior management has been linked to the Company's performance on ESG issues in 2021. To this end, the Group's efforts in these areas have been evaluated and monitored based on a combination of the overall score obtained in a selection of ESG indexes in which Cellnex participates (e.g. Dow Jones Sustainability Index, Sustainalytics, MSCI and FTSE4Good).

By 2022, the Company will link the Management objectives to the ESG Master Plan, specifically related to the Science-Based Target (SBT) objectives and to diversity indicators. Additionally, 2022 will be the first year in which all Cellnex employees will have a percentage of their evaluation by objectives (MBO) linked to ESG objectives.

The definition of the ESG Master Plan considered the evolution of the Company in recent years and its growth and internationalisation, as well as the new trends and expectations of stakeholders.

Based on the internal and external diagnosis of the materiality analysis, 5 strategic axes and a transversal axis were defined within the ESG Master Plan. Based on these 6 axes, 17 strategic lines were established which gave rise to 92 specific actions.

In addition, the actions contemplated in the ESG Master Plan take into account the results obtained from the analysis of the prioritisation of the SDGs for Cellnex conducted in 2020, their specific objectives and their corresponding targets.

Below is a table showing the relationship between the materiality matrix, the ESG Master Plan, the GRI reporting standards and applicable non-financial reporting requirements.

Follow-up of the ESG Master Plan

In order to monitor the implementation of the ESG Master Plan, as well as its degree of compliance, a five-year schedule has been drawn up that includes the indicators (KPIs) and targets to be achieved in some actions. The main KPIs corresponding to the Environmental, Social and Governance dimensions are presented below.

During this first year of the ESG Master Plan the performance has been 97% of progress in planning and 91% in the implementation of the actions defined for 2021. Detailed progress on each of the plan's axes are shown below.

Cellnex ESG Governance

Nominations, Remunerations and Sustainability Committee (NRSC)

To monitor the ESG strategy at Cellnex, on 19 February 2021, the Board of Directors amended its Regulations, including the functions of the Appointments and Remuneration Committee, which is now called the Nominations, Remunerations and Sustainability Committee (NRSC). The functions of the NRSC include:

• Supervising the application of general policy regarding the communication of economic-financial, non-financial, and corporate information, as well as communication with shareholders and investors, proxy advisors and other stakeholders.
• Evaluating and periodically reviewing the corporate governance system and the Company's environmental and social policy to ensure that they fulfil their mission of promoting the corporate interest and take into account, as appropriate, the legitimate interests of other stakeholders.
• Ensuring that the Company's environmental and social practices are in line with the strategy and policies set.
• Reviewing and reporting on the Annual Integrated Report and the implementation of the ESG Master Plan.

Cellnex ESG Committee

For the development of perform these functions, in 2021 the Cellnex ESG Committee was created, an executive committee coordinated by the Corporate and Public Affairs area, and composed of various departments related to ESG issues (Management Systems, People, ESG, Operations, Board Secretariat, Investor Relations and Procurement). During 2021, the The ESG Committee met 3 three times in 2021.

Stakeholders

In 2020, as part of the update of the materiality matrix, Cellnex updated its stakeholder map. In this regard, the consultations carried out with various stakeholders allowed Cellnex to identify and understand the expectations of all of Cellnex's stakeholders in the field of ESG.

Cellnex has different channels (common and specific) to continuous maintain fluid and constant communication with its Stakeholders and consequently provide an appropriate response to their needs.

Thus, the new Stakeholder map includes the seven most relevant key actors for Cellnex. The following table details the communication and relationship tools with each of these groups, as well as the company's specific commitments, the related ESG Master Plan axes and Sustainable Development Goals linked.

In addition, to deepen and expand awareness to Cellnex's stakeholders, in 2021 a video⁴ of the Cellnex's ESG Master Plan was launched as a lever to involve all the stakeholders.

⁴ Link to video, Cellnex ESG Master Plan 2021-2025: https://youtu.be/VBYZmalJqm0

Partnerships

Cellnex is a member of various associations, which allows the Company  to strengthen its commitment to other players in the sector and to participate in decision-making that could affect the Company. Below are some of the associations in which Cellnex participates.

Cellnex is also a member of several Foundations, participates in forums and collaborates with Universities and training centres, where Cellnex shares its knowledge and experience while benefitting from knowledge transfer and keeping abreast of the latest trends. In this regard, in 2021 Cellnex continued to be a relevant actor in the field of R&D, actively participating as a patron of technology centers such as Eurecat and i2Cat. Cellnex also participated in the selection, jury, launch of challenges and awards to startups in initiatives such as The Collider or the Expansión startups 2021 awards.

All this activity has given Cellnex regular exposure in the media, such as television, radio and the press, as well as at international events to explain Cellnex's approach to the future of the industry.

During 2021 Cellnex also participated in several events, some of the most significant of which are presented below:

• Mobile World Congress (MWC): This is the main event in the telecommunications world. It is held in Barcelona and Cellnex has taken part since its inception. In 2021, in response to healthcare needs, the Company's stand featured open spaces while showing a complete vision of its activity in the various market segments and territories.
• 5G Forum: International meeting where experts in the development of 5G meet in the city of Malaga. Cellnex has participated in this event since its first edition as a 5G infrastructure operator and a benchmark in the creation of technological solutions.
• Small Cells World Summit: As a member of the Small Cells Forum organisation, Cellnex has participated in several conferences at this event held in Italy. The Company is very active in the DAS and Small Cell field in Italy, and this conference reinforces its position in the business.
• Critical Communications World: Event held in 2021 in Madrid, where the Company had a stand to showcase its areas of business and meet its main customers in the security and emergency communications sector.
• 4K Summit: One of the leading events in the broadcast sector in which Cellnex has participated since its inception. The Company demonstrates the latest technologies in the audiovisual field.
• Digital Summit: As a member of the DigitalES association, Cellnex is one of the sponsors of this event which brings together companies and organisations involved in the development of the telecommunications sector.
• Smart Expo Milano: Cellnex participates in this event, which is the stage for showcasing the solutions that the company is developing for the smart city.
• Vivatech Technology: Event dedicated to startups and technology, which in 2021 took place in Paris, France. The event showcased the latest innovations in topics related to technology for the environment, technology for society, technology for monitoring and the future of work. All these initiatives were presented by leading corporations and hundreds of innovative start-ups.
• 4YFN: Event dedicated to startup innovation in the framework of the Mobile World Congress (MWC) taking place in Barcelona, Spain. The event features conferences, panels, talks and startup competitions.
• South Summit: The aim of the event is to be the hub of reference that shapes the future through initiative, entrepreneurship, open innovation and business opportunities. To this end, the event aims to activate connections between the main players in the ecosystem, providing a platform of reinforcement for all. And bringing together the most disruptive startups, the most visionary investors and the most dynamic corporations. Mixing the voice of experience with the entrepreneurial spirit and sharing a common ecosystem. In 2021 Cellnex has been an innovation partner at the South Summit, where Cellnex participated in the startup judging panel, allowing it to get closer to the entrepreneurial world together with local authorities.
• Telecom 2021: is an event organised in Spain by the National Federation of Telecommunications Installers and Integrators (FENITEL). The event was attended by a relevant representation of the telecommunications sector, senior representatives of the Ministry of Economic Affairs and Digital Transformation, other areas of the Public Administrations and the CNMC. The aim of the event was for the entire value chain of the sector to learn about NextGenEU resources to sustainably boost levels of economic activity and promote the momentum of a "connection to recovery". Thus, different round tables were organised, as well as a networking meeting. Albert Cuatrecasas, CEO of Cellnex Spain, participated in the round table on "5G: Use cases, deployment models and the impact on the sector's activity".
• TowerXchange Europe Meet Up: This is one of the main annual meeting of the European telecommunications infrastructure industry, in which Cellnex has participated since 2016. In 2021, -again marked by Covid-19- it was held in a virtual format, across three days, different meetings and sessions were held in the form of round tables, conferences and bilateral meetings, among others. Cellnex sponsored the event and the company's management participated as speakers and moderators in several of the sessions.
• Choose France: This event held in Versailles brings together senior representatives of the French government and the main foreign investors in France. In 2021, more than 110 top-level executives from around the world participated, including Cellnex. During the event, 22 investment projects led by foreign companies, with an investment value of more than €3.5 billion, were announced.

During 2021, Cellnex professionals also took part in several conferences, notably in the areas of innovation, mobility and sustainability.

In the innovation sector, José Antonio Aranda took part in conferences organized by GSMA and Capgemini, among others. He was also a speaker at the BITAM conference on innovation in the audiovisual sector and at the meeting organized by the El País newspaper with the main players in technology and innovation.

Mobility was the focus of a conference organized by ANFAC in which Fernando Brea represented Cellnex. Moreover, Raül González participated in the meeting organized by Mobile World Capital, sharing the 5G MED project.

On sustainability, Aitor Rubio gave a presentation of the 5G LEAN project in the framework of DigitalES.

Cellnex awards and recognitions in 2021

Cellnex's good performance and its social, environmental and economic contribution have earned the Group international recognition, as evidenced by the awards and recognitions received over the years.

In 2021 Cellnex was the winner in the "Efficient Consumption" category of the first edition of the Retina ECO Awards for its contribution to reducing CO2 emissions to zero in rural telecommunications towers through the "Zero Emissions Rural Site" project. The first edition of the Retina ECO Awards, organised by El País Retina in collaboration with Capgemini, sought to recognise the best projects developed during 2020 in the field of combating climate change and achieving sustainability thought technology.

Albert Cuatrecasas, Managing Director of Cellnex in Spain, receiving the award

Another major recognition received in 2021 is the "Company of the Year 2021" award from the Federation of Official Spanish Chambers of Commerce in Europe, Africa, Asia and Oceania (FEDECOM). This milestone recognises the outstanding commercial activity and process of growth and internationalisation developed by Cellnex in recent years.

Tobías Martínez, CEO of Cellnex, at an official ceremony held at the Spanish Embassy in London.

Another award received by Cellnex in 2021 that highlights its efforts in and commitment to environmental, social and corporate governance (ESG) issues was the Catalonia Award for Business Trajectory, organized by "La Razón"; the Company was recognized in the ESG category. La Razón recognized that Cellnex’s objectives include the analysis and management of its impact on society and the environment, following internationally recognized standards, such as the United Nations Global Compact or the Science Based Target initiative.