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Tele2's climate efforts

Ambitious goals, short and long term, towards net-zero

With the purpose of enabling a society of unlimited possibilities, our ambition is to lead in sustainability. Climate change is an important issue for us to address as our industry has historically had a negative impact on the climate and our future success is dependent on reducing global warming.

As part of our commitment, we have set goals for a rapid reduction in greenhouse gas emissions from our direct operations and value chain (Scope 1, Scope 2 and Scope 3 according to the well-established GHG Protocol Corporate Standard). We take seriously our responsibility for doing our part in tackling global warming and we are proud to have already reduced our Scope 1 and 2 GHG emissions by 95% and Scope 3 emissions by 11% compared to 2019. We achieved our Science Based Target of a 90% reduction in Scope 1 and 2 emissions over 2019 levels in 2022 – three years ahead of the original target of 2025.

Building on our achievements, we are now aiming to achieve net-zero emissions across our value chain by 2035 –the most ambitious climate target to date approved by the Science-Based Target initiative (SBTi) in our industry

Having climate targets approved by the Science-Based Target initiative sends a clear signal to everyone within our value chain and ensures that Tele2 stands for sustainable growth going forward.
Kjell Johnsen President and CEO of Tele2

Tele2’s SBTi-approved targets:

Net-zero target

Achieve net-zero GHG emissions in our value chain by 2035 from a 2019 base year.

Near-term targets

Reduce absolute scope 1 and 2 GHG emissions by 100% by 2029 from a 2019 base year.

Reduce scope 3 GHG emissions by 60% per subscription by 2029 from a 2019 base year.

Long-term targets

Maintain 100% absolute scope 1 and 2 GHG emissions reductions from 2029 through 2035.

Reduce absolute scope 3 GHG emissions by 90% by 2035 from a 2019 base year.

Our emission reduction targets have been approved by the Science-Based Targets initiative. This means our targets are consistent with the reductions in GHG emissions required to meet the 2015 Paris Climate Agreement goals. The targets that apply to greenhouse gas emissions from our operations (scopes 1 and 2) are consistent with reductions required to limit global warming to 1.5°C, the most ambitious goal of the Paris Agreement. Our target for emissions from our value chain (scope 3) meets the SBTi’s criteria for ambitious value chain goals and are in line with current best practices.

    Scope 1 & 2 emissions (our own operations)

    As of April 2020, we purchase 100 percent renewable electricity and offset remaining greenhouse gas emissions, such as those related to company cars. This was the result of a long-term commitment in which the final step enabled us to decrease the Group’s total carbon dioxide emissions by over 94 percent, or 56,000 tons per year, in one decisive move. This is comparable to the average annual emissions of 7,000 Swedes.

    Ninety percent of our total energy consumption is through electricity. For our own contracts in Sweden, we use 100 percent clean hydropower. In our Baltic operations, we use 100 percent renewable electricity from different sources. In situations where the energy source is uncertain and not part of our own contracts, we use guarantees of origin that are 100 percent hydropower to ensure that the electricity is renewable.

    As of 1 October 2020, all new company cars (except service vehicles) are required to be electric vehicles. This is expected to result in a substantial reduction of scope 1 emissions by 2023-2024 as the current fleet of company cars is replaced by electric vehicles.

    To ensure that we offset the remaining emissions, we have invested in three types of projects: 1) Gold Standard certified projects to provide access to clean water in Kenya to reduce the need to boil water using firewood which causes carbon emissions, and to provide household with small-scale biogas plants to reduce the need for wood-burning stoves which causes carbon emissions (these two projects account for a majority of credits), 2)
    Biochar from three different projects in Europe, that have either European Biochar Certificate or are Puro Earth certified with an estimated permanence of over 1,000 years, 3) Carbon removal using a Direct Air Capture project, verified according to ISO 14064-2 by DNV, with an estimated permanence of over 1,000 years.

    Planned activities

    • Continue to exclusively purchase renewable electricity from hydro power.
    • Ensure that all company cars, not only new ones, should be electric vehicles by 2024 (except service vehicles).
    • Evaluate how remaining energy consumption that is currently not from renewable sources, for instance back-up power generators, can be transitioned to renewable sources.

    As an initial step within climate change adaptation, we are following trends and alternatives for energy sources needed at our facilities, such as batteries, hydrogen, etc. in order to assess and potentially decrease our dependency on the grid.

    Scope 3 emissions (Our value chain)

    Based on a materiality analysis for other indirect (Scope 3) GHG emissions, we have identified nine categories that are material for our scope 3 emissions. In scope 3, the main source of emissions is purchased goods and services and capital goods (80%), which means they are mainly caused by our suppliers. Close collaboration with our suppliers and engagement on the climate agenda is therefore key in reducing emissions in our value chain and, in turn, reducing the climate impact of our industry.

    Since we started measuring our scope 3 emissions, we have hosted annual webinars with our suppliers on the purpose and importance of collecting scope 3 data.

    Scope 3 figures as of 2022-12-31:

    We have set a plan for communicating our targets to our suppliers:

    1. We will engage in dialogue with all our top suppliers to inform them of our targets.
    2. We will then require suppliers to put their own targets in place.
    3. We will develop a process to monitor our suppliers’ progress towards their targets to ensure they are in line with the targets that we have set (60 percent reduction by 2029).
    4. Once these first three steps have been completed, we plan to include emissions reduction as a demand in our Business Partner Code of Conduct.

    Planned activities

    • Engage our suppliers about our targets and encourage our suppliers to follow them by including plans for reducing emissions together.
    • Inform our customers about how to use the products they purchase from us in a way that reduces the climate impact of use, for instance encouraging the use of renewable electricity whenever possible.
    • Reduce emissions from employee commuting and business travel by choosing more environmentally friendly options.
    • Use renewable electricity and fuels in transportation and distribution and other energy related activities.

    SBTi scope 3 target: We are committed to reducing our scope 3 GHG emissions by 60% per subscription by 2029 using 2019 as a base year.

    Emissions by scope 3 category (Tons CO2-eq) Emissions 2022Share % 2022
    Purchased goods and services91,62248.7
    Capital goods57,39730.5
    Use of sold products30,80016.4
    Fuel and energy related activities3,0591.6
    Upstream and downstream transportation and distribution2,1351.1
    Employee commuting1,5750.8
    Business travel1,0820.6
    End-of-life treatment of sold products4300.2
    Waste generated in operations                   120.0
    Total188,112100

    External recognition for our climate action

    We are far from done, but we will celebrate every victory along the way. In their latest report, Morgan Stanley Research Estimates named Tele2 as Europe's second-best telco in a ranking of efforts to reduce CO2 emissions. In our annual carbon disclosure to CDP, we were awarded a “A” score in 2022. The “A” score is CDP’s highest management band for companies demonstrating leadership in environmental transparency and performance on climate change. Tele2 is one of only a small number of almost 15,000 companies to be given CDP’s ‘A’ score.

    Science Based Targets initiative (SBTi)

    The Science Based Targets initiative (SBTi) is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes best practices in science-based target setting and independently assesses companies’ targets.

    Science-based targets are emissions reduction goals in line with what the latest climate science says is needed to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C.

    The targets also show companies how much and how quickly they need to reduce their greenhouse gas emissions to be consistent with keeping global warming below the most dangerous levels.

    The SBTi Net-Zero Standard includes the guidance and criteria companies must reach to achieve science-based net-zero targets consistent with limiting global temperature rise to 1.5 degrees Celsius.

    Read more about Science Based Targets initiative here.

    Climate related risks and opportunities

    Climate risks are integral to Tele2’s Enterprise Risk Management framework and is considered as a strategic risk. Our Board and Executive Management own the monitoring and mitigation of this risk. The framework principles including compliance to our Enterprise Risk Management policies and procedures are applicable to Climate Risks as well. Refer our Risk Management page for a detailed description.

    In the Enterprise Risk Management section of our annual report, where we list our most important strategic risks where we describe our climate risk as well and describe it as follows:

    The transition to a low carbon economy is associated with transitional risk, e.g. policy, liability or technology risks, that may all incur additional costs. Climate change is increasingly driving regulation and taxation related to reduction of greenhouse gas emissions and the use of fossil fuels. Increasing scarcity of natural resources, particularly rare minerals used in network and consumer technology hardware, may lead to increased hardware costs. Increasing energy costs, Greenhouse Gas (GHG) emissions taxation and price increases caused by natural resource scarcity may incur additional costs.

    In its first TCFD report published by Tele2 in 2021, we have listed various scenarios of the climate risk and described our assessment of these scenarios from the perspective of impact and implications of each risk scenario.

    The assessment of climate risks showed us that although our climate risk exposure is lower compared to other sectors such as heavy industry, materials and buildings or agriculture, we must work proactively to mitigate the risks associated with climate change. Our work with climate risks is admittedly at the early stages and we acknowledge that we must work to increase the capacity and know-how of how to deal with climate risks and what they entail, dispersing climate change knowledge throughout the organization. What we do know is that the risks associated with climate change will only grow bigger with time, and as such, climate risks are listed as one of the risks in our strategic risk registry. This means that there is a strong effort made by the Group Leadership Team to discuss, evaluate and mitigate the climate risks.

    Our key risk mitigation activities are:

    • Periodic risk workshops conducted to identify and assess climate risks.
    • Tele2 has transitioned to 100% renewable electricity and has certified the Environmental Management System according to ISO 14001.
    • We are working to reduce our GHG emissions as quickly as possible to reduce our transitional risk.
    • We have transitioned to renewable electricity and are gradually transitioning to renewable energy when feasible.
    • Make our networks more energy efficient by taking a leading position in the AI4Green research project.
    • Continued efforts to reduce e-waste.
    • Continued follow-up to ensure compliance with relevant environmental laws and regulations.

    As an initial step within climate change adaptation we are following trends and alternatives for energy at our facilities, such as batteries, hydrogen, etc. in order to assess and potentially decrease dependency of the grid.

    Tele2 welcomes well-aimed and proportional regulation to mitigate climate change, and believe that the transition to a low carbon economy is an opportunity for innovation and increased business value. With the ambition to lead in sustainability, we are also committed to respond appropriately in cases where the position on climate change of our membership associations is significantly weaker than Tele2’s position or contradicts our climate change efforts.

    A detailed description of the climate risk management can be read in the TCFD report

    Climate strategy and transition plan

    We have come a long way in reducing our climate impact, but we still have a long way to go before we are satisfied. By following science-based targets our goal is to achieve science-based net-zero emissions as one of the first telcos in the world. To mitigate these risks and to capture these opportunities we have developed a climate strategy and roadmap with clearly defined actions and goals to strive towards.

    Follow the link to read about our climate strategy in more detail