Resource conservation

Energy management

Cellnex is aware of the importance of its energy performance and the sustainable origin of the energy needed for its operations. In this context, indirect emissions from electricity consumption significantly contribute to Cellnex's carbon footprint.

To boost this awareness, specific Energy Guidelines were issued in 2021, further developed in 2022, and evolved in 2023, taking account of the current energy context. The guidelines state that Cellnex promotes the efficient use of energy through the implementation of energy-saving and efficiency measures in work processes and conduct, and by controlling and monitoring consumption in the most significant applications. Additionally, as more than the 76% of Cellnex's total consumption is directly consumed by customer-owned equipment, Cellnex applies energy billing models to customers that promote efficiency in customers' equipment, using the pass-through mechanism.

All of this is based on compliance with applicable legal and regulatory standards at international, European, state, regional and local level, as well as the willingness to adapt to future standards, and the requirements of customers and society.

To demonstrate its commitment to responsible consumption and proper energy management, in 2021 Cellnex adopted an Environment and Climate Change Policy, updated in 2023, specifying its commitments relating to efficient energy management:

• Promoting energy efficiency in processes and procedures.
• Supporting the development of initiatives that reduce energy consumption at the Company's facilities.
• Ensuring control of energy consumption (electricity, natural gas, and fuels).

• Increasing the use of renewable energy sources.
• Raising awareness and training personnel in good energy-saving practice.

To comply with these commitments, in 2021 Cellnex released the first version of its Energy Transition Plan as part of its ESG Master Plan and the Strategic Sustainability Plan. This plan was updated in 2023, taking account of the current energy context.

The Energy Transition Plan has four pillars:

• Energy 4.0: this pillar aims to foster an intelligent asset ecosystem that triggers the traceability of the whole energy value chain, from monitoring the consumption with the deployment of smart meters to the billing of energy to Cellnex's customers.
• Green Energy Sourcing: the objective is to ensure that the electricity consumed at Cellnex sites is 100% generated by Renewable Energy Sources (RES) from 2025, making it possible to mitigate 100% of Scope 2 carbon emissions. Throughout 2023, the high price of green energy prompted Cellnex to diversify its strategy to purchase green energy. This involved sourcing green energy within the supply contracts in some countries, but also looking for Power Purchase Agreements in others that allow greening costs to be secured.The objective was to reduce the greening cost for Cellnex customers. Currently 100% of the energy provided by Cellnex in the Data Centres in the Netherlands, France and Spain is renewable.

Cellnex is also reviewing the greening journey with customers to ensure a feasible path also for them, considering the pass-through model.

• Energy Efficiency: this pillar seeks to ensure a continuous improvement in energy performance to alleviate and optimise the impact of Cellnex's operations. Since 76% of Cellnex consumption is energy directly used by Cellnex customer equipment, Cellnex has put in place a transfer energy cost methodology that incentivises customers to optimise the energy efficiency of their equipment, Furthermore, Cellnex is implementing the ISO 50001 standard to ensure a continuous improvement in energy performance and the creation of energy efficiency initiatives.
• Self-generation: the aim is to implement self generation of electricity at Cellnex sites, as far as is economically feasible, to support a path of carbon-neutral operations. This could be achieved initially by implementing economically efficient on-site generation solutions at Cellnex sites and in the most economically feasible off-site locations to reduce the consumption of fossil fuels by fixed backup diesel generators.

During 2021 Cellnex released the first version of its Energy Transition Plan, focused on defining the scope and overall strategy, but only with regard to delivering commitments under the Green Energy Sourcing pillar. However, in 2022 and 2023 Cellnex continued developing the overall strategy of intensifying the key activities and outlined corporate commitments to pave the way to carbon-neutral operations. In addition, a budget plan was allocated to investment and development for the four pillars of the Energy Transition Plan.

The Group's total energy consumption for 2023 was 1,390.22 GWh (1,301.18 GWh in 2022), most of which was electricity consumption. Cellnex's sites account for most electricity consumption and its offices to a lesser extent. In 2023 the total electricity consumed was 1,384.27 GWh (1,295.12 GWh in 2022), 77% of which came from renewable sources.

Detailed information on energy consumption is available in Annex 6. KPI Tables

Total energy consumption by source

Share of renewable electricity

As a result of the green energy sourcing strategy, the share of renewable electricity has increased in recent years from 10% in 2020 to 77%% in 2023.

Share of renewable electricity by country (%)

Energy efficiency

Together with its customers, Cellnex is promoting energy efficiency and self-generation measures.

As a result of investments made in energy saving and efficiency measures, in 2023 it succeeded in cutting energy consumption, as indicated below.

France

Nexloop is committed to selecting air conditioners with maximum efficiency and minimal energy consumption during obsolescence or facility transformations.

As part of their green initiative, hybrid vehicles have been incorporated into the vehicle fleet. Taking a significant step towards sustainability, Cellnex France has transitioned the electricity supply contract for the Boulogne headquarters to a renewable energy source.

Cellnex Ireland

Cellnex Ireland completed the installation of 64 solar photovoltaic systems supplying electrical energy to the on-site base station equipment, producing approximately 320 MWh of sustainable green energy over the course of 2023.

Cellnex Netherlands

Cellnex Netherlands has become a participant in EU Taxonomy Data Centres, aiming to meet the EU’s climate and energy targets for 2030.

Moreover, Cellnex Netherlands, has joined the European Code of Conduct on Data Centres as a participant. The organisation is expecting to implement best practices and monitor energy consumption, while regularly reporting to the EU Commission.

Cellnex Poland

Cellnex Poland continued with the modernisation of BBUs (DC power systems) by replacing the rectifiers with more efficient models and installing reactive power compensators. Furthermore, a solar panel pilot has been implemented at three sites, and according to the responsible company's declaration, it has been estimated that these panels will produce an average of 10% of its demand.

Cellnex Spain

In 2023, Cellnex Spain has been at the forefront of energy-efficiency initiatives, notably the deployment of photovoltaic panels at various locations. Noteworthy efforts include piloting hydrogen batteries, upgrading cooling equipment, and implementing advanced systems for monitoring and controlling consumption.

A pivotal highlight of Cellnex's endeavours in 2023 involves a robust campaign aimed at replacing diesel generator-powered sites with an innovative solution featuring solar panels and compact generators. This strategic move has resulted in a substantial reduction in the carbon footprint, showcasing Cellnex's commitment to sustainable practices.

Responsible and circular resource management

Water consumption

Water is consumed throughout the Cellnex Group primarily for sanitation. Water for the whole Group is provided mainly through the public water supply network, with a total consumption of 13,615 m3. This year, the water consumption figure has increased due to improved data collection, incorporating consumption from Austria, France, and Switzerland.

Moreover, in 2023 the Group's water footprint was calculated and audited in line with the methodology defined in ISO 14046. Although Cellnex's consumption is a non-material issue for the Company due to the nature of its activity, Cellnex aims to calculate its water footprint annually to monitor and control the impact of Cellnex's activity on this resource.

In terms of discharges, Cellnex only discharges sanitary water that can be assimilated to domestic water into the sewage network in general, and in very few cases in Spain, into duly legalised septic infiltration pits.

Waste management

Waste generated at Cellnex sites during construction, operation, maintenance, and decommissioning operations is managed by waste management providers. To ensure that this management is carried out properly, Cellnex ensures that any waste produced by its suppliers in the course of outsourced activities is treated properly. In addition, Cellnex promotes proper waste management throughout the Company and its value chain, taking the waste hierarchy into account, thereby fostering waste prevention and preparing it for reuse and recycling.

Waste management and the circular economy

In the Cellnex Group, various initiatives are being implemented to promote the circular economy and reduce waste as much as possible. They emphasise re-use over disposal and encourage suppliers to prioritise these management methods as well.

Cellnex countries have undertaken numerous activities related to the circular economy, primarily focused on reducing the quantity of generated waste, prioritising its management and valorisation.

Spain

In 2023, the Cellnex Spain Environment Department initiated the analysis in collaboration with Logistics for the recovery of WEEE (Waste Electrical and Electronic Equipment). The goal is to negotiate with a company specialising in recovering such devices, giving them a second life and preventing them from becoming waste. The objective is to reduce the amount of waste (WEEE) generated by promoting reuse and putting them back onto the market.

Portugal

Cellnex Portugal promoted the reuse of some of its towers, which were replaced by higher capacity towers in their original location but that were still usable in other areas with lower capacity demands. This not only reduces the amount of waste, but also the lengthens the life cycle of the infrastructure to its full potential.

Eco-design

Cellnex's vision is to transform the existing paradigm to reduce the environmental impact of its TIS centers in Europe. In 2020, they initiated a Life Cycle Assessment (LCA) project for these centers to identify inputs and outputs throughout their life cycle.

In 2022, Cellnex updated this project with the Eco-design project, establishing two eco-design models for rural and rooftop TIS centers, considering technical and legal barriers for each of them and the proposed eco-design strategies.

To this end, an eco-design checklist was drawn up to help reduce:

• Dependence on resources of origin.
• Material management costs.
• Risk from volatility in the price of materials.
• Emissions (e.g. CO₂ eq., NOx emissions, etc.).

The eco-design checklist was drawn up by applying ISO 14006. The most notable aspects of the design and development process for a TIS centre contained in the eco-design checklist are:

• Identifying significant environmental aspects.
• Defining areas for improvement and specific eco-design measures.
• Classifying measures according to priority (Must-have vs. Nice-to-have).
• Calculating potential environmental benefit (reduction of CO₂ equivalent).

To this end, Cellnex has established a green procurement protocol, defining a list of sustainability and circularity criteria to facilitate decision-making related to the evaluation and selection of providers that operate the IT centres. In this regard, aspects such as eco- design, consumption of raw materials, energy consumption, emissions, waste generation, impact on biodiversity, and social and economic impact are taken it.

Based on the scenarios identified in the Eco-design project, an Eco-design group was formed in 2023 to collectively develop proposals to add environmental criteria to Cellnex's operations and maintenance. The group was attended by colleagues from Spain, Poland, France, Sweden, Italy, and Austria. The proposals were discussed jointly addressing topics such as energy efficiency technologies, reuse and recycling of materials, implementation of renewable energies, use and collection of batteries, use of fuels, and new eco-design proposals.

On the other hand, in 2023, a Life Cycle Assessment of datacentres has been carried out, with the aim of identifying where the main impacts are in all phases of the life cycle of this service, in order to be able to define in 2024, eco-strategies and initiatives to make the datacentre activity more circular. The main conclusions of the datacentre LCA are:

• The electricity consumption is the most relevant contributor to the environmental impacts.
• Achieving a lower PUE and having a higher share of renewable energies is key to address the environmental impacts from electricity.
• The environmental impacts are generated along the supply chain of the materials used.