GHG Emissions and Circular Economy

9.5. GHG Emissions and Circular Economy

9.5.1. Commitment
Managing climate-related issues is among the important concerns of many stakeholders. While reducing CO2 emissions remain one of its top priorities, the division also seeks to equip itself to be more resilient to climate risks and reduce embodied carbon throughout its supply chain.

9.5.2. The Challenges
Climate change is a global challenge that has already caused impacts on communities and disruptions to businesses. Such climate-related impact presents both risks and opportunities to its assets and businesses.

The division’s operating activities are based on the use of network infrastructures, which require a continuous power supply, the growing number of connected devices and data transmitted will increase energy consumption, thereby making it difficult to reduce carbon footprint.

9.5.3 Initiatives Energy Efficiency Improvements for Network Infrastructure
With the majority of the division’s energy consumption coming from network infrastructure, energy efficiency is key to GHG emissions management. The division is actively upgrading its network equipment and installing energy saving features to reduce energy usage. 

Wind Tre has been modernising its entire network in order to guarantee that it would be capable of supporting services of the latest generation, while at the same time ensuring high energy efficiency standards. Under the scheme, existing network equipment are being replaced with the latest generation models, cooling infrastructures migrate towards outdoor configurations with lower cooling energy requirements, and the technological sites are consolidated to reduce the direct and indirect energy consumption. Thanks to the energy efficiency interventions, Wind Tre has avoided over 120,000 tonnes of CO2 over the past five years.

3 UK was the first in the UK to share its mobile network with another mobile operator, through a 50:50 joint venture company. Such arrangement allows better utilisation of the network capacity, enabling 3 UK to minimise its environmental impact by reducing the energy consumption through sharing cell sites and equipment, while providing great coverage and reliable services to customers throughout the UK. Sourcing Renewable Energy
While many of the European markets in which the division operates have already been using renewable energy in their energy mix, the division took a step further to explore and introduce additional renewable energy sources into the current energy mix of telecom operations to reduce GHG emissions. For example, 3 Denmark and 3 Sweden have been buying electricity from renewable energy sources to power its mobile network. This initiative has reduced the GHG emissions of 3 Denmark and 3 Sweden by more than 3,000 tonnes per year. For 2018, green electricity accounts for about 80% of Hi3G Access AB’s total electricity consumption. Besides certified green electricity,

3 Denmark and 3 Sweden have also been purchased non-certified renewable energy from property owners. The goal is to reach 100% renewable electricity, where available and practicable in the future.

Besides sourcing renewable energy, the division also explored the possibilities of generating renewable energy on its own. Wind Tre has 13 grid-connected proprietary photovoltaic systems, generating 2,200 GJ of green electricity in 2018 alone.

3 Austria’s headquarters launched its own solar panel system in October. In the future, 3 Austria will rely on in-house green electricity to power its headquarters.

9.5.4. Looking Forward
The division will continue to implement and roll out a series of initiatives. For example, tower asset upgrades, infrastructure modernisation, and development of more energy efficient ICT services to support sustainable development and carbon reduction. The division aims to help society transition to a low-carbon future by offering connectivity of smart, digital solutions that reduce energy use and travel and transport.

To demonstrate the division’s commitment, CKHGT will be disclosing its climate impact for the first time via the CDP reporting mechanism in 2020 and is in the process of developing a Science Based Target to align its carbon emissions with the goals of the Paris Agreement. In line with the overall risk management approach of CKHGT and by adopting the recommendations of the Task Force on Climate-Related Financial Disclosures ("TCFD"), a set of climate-related risks and opportunities material to CKHGT, its assets and business are being identified and will be reviewed regularly.