7.3 Carbon Footprint: Scope & Calculation methodology for CO₂ emissions

The Cellnex Group Greenhause Gas (GHG) emissions inventory was prepared according to the ISO 14064-1:2018 as well as GHG Protocol standards, and GHG statements related to GHG inventories and procedures have been third-party independently verified (TÜV Rheinland) following the ISO 14064-3:2019 and GHG Protocol standards, achieving a limited level of assurance.

The scope of Cellnex Group's carbon footprint for the year 2022 represents 99,8% of the Group's revenues, excluding only the companies integrated in the group at the end of 2022: CK Hutchison Networks Italia S.p.A, Cignal Infrastructure UK LTD, Cignal Infrastructure Portugal S.A., Remer Sp. z.o.o..

Cellnex Group has been preparing its GHG emissions inventory in accordance with the International ISO14064 Standard since 2015. In the internal procedure of the GHG emissions information management there is a summary table with the organisational and reporting boundaries included in Cellnex's GHG inventory since 2015.

Due to the expansion of the countries where the company operates and the addition of indirect GHG emission categories as set out in the new International ISO 14064-1: 2018 Standard and the GHG Protocol, Cellnex established 2020 as the base year for GHG emissions for comparative purposes and other

GHG programme requirements and intended uses. Furthermore, the 2020 and 2021 emissions inventories have been recalculated according to the GHG Protocol, as there were relevant structural and methodological changes in 2022:

• Structural changes in the reporting organisation that have a significant impact on the company’s base year emissions. There have been structural changes including acquisitions of new companies. In relation to the carbon footprint for 2021, the following companies were added to the scope in 2022: MBA Datacenters, Nextcell, Hivory, London Connectivity Partnership, Cellnex UK In-Building Solutions Limited, Infratower SA, Hivory Portugal and Cignal Infrastructure Portugal.
• Changes in calculation methodology or improvements in the accuracy of emission factors or activity data that result in a significant impact on the base year emissions data. In this case, the methodology for calculating the categories of indirect emissions from the purchase of goods and services and capital goods has been improved. In addition, the methodology for calculating emissions associated with rented offices or downstream leased assets has also been improved. Finally, new emission sources have been added that previously either did not exist or the information to report them was not available.

In summary, base year emissions have been retroactively recalculated to reflect changes in the company that would otherwise compromise the consistency and relevance of the reported GHG emissions information.

The results of Cellnex Group's carbon footprint correspond to the period from 1 January 2022 to 31 December 2022. The GHG emissions inventory maintains the structure and content established by the reference standard ISO14064-1:2018, as well as the GHG Protocol. The GHG inventory includes the quantification of direct GHG emissions separately for CO₂, CH₄, N₂O, NF₃, SF₆ and other GHG groups (HFCs, PFCs, etc.) in tonnes of CO₂e, as well as the indirect GHG emissions separated by categories in the same units. In addition, Cellnex does not present biogenic GHG emissions or removals.

The financial control approach was taken into consideration to calculate Cellnex Group's carbon footprint. In line with the ISO 14064-1:2018 methodology, GHG emissions have been aggregated into the following categories at organisational level:

Following the “Guidance for the process of identifying significant indirect GHG emissions” included in ISO 14064-1:2018 Standard, Cellnex Group has defined its global criteria to evaluate the relevance of each indirect GHG emissions subcategory.

The principles that were taken into account when applying the criteria are relevance, completeness, consistency, accuracy and transparency.

The criteria used to evaluate the significance of indirect emissions include the following:

• Magnitude: emissions that are assumed to be quantitatively substantial. All categories whose GHG emissions contribute less than 5% to the overall carbon footprint are considered non-relevant.
• Level of influence: the organisation has the ability to monitor and reduce these emissions.
• Risk or opportunity: indirect emissions that contribute to the organisation’s exposure to risk or its business opportunities.
• Sector-specific guidance: GHG emissions deemed significant by the business sector.
• Outsourcing: indirect emissions resulting from outsourced activities that are typically core business activities.
• Employee engagement: indirect emissions that could motivate employees to reduce energy use or fight climate change

With this analysis, in 2020 it was concluded that the following subcategories of indirect GHG emissions were considered non-significant: Upstream transport and distribution, Disposal of waste, Use of assets leased by the organisation, Downstream leased assets owned by the organisation and Investments. These subcategories were then excluded from the 2020 GHG emissions inventory. However, due to the setting of science-based targets, from 2021 all emission categories have been considered as significant and have been included in the carbon footprint results

The quantification model obtains the amount of emissions by source by multiplying the activity data by its correspondent emission factor. The emission factors are obtained from reliable and official sources (IPCC and other relevant sources).