Race to Net Zero - Globe Sustainability

Globe becomes the first publicly listed company in the Philippines to get the Science Based Targets initiative’s (SBTi) validation and approval of its near-term and net-zero science-based greenhouse gas (GHG) emission reduction targets.

The company aims for a 42% reduction in absolute Scopes 1 and 2 GHG emissions by 2030, based on a 2021 baseline, and a 25% reduction in absolute Scope 3 GHG emissions within the same period. For the long term, it has set an even more ambitious target of reducing absolute Scopes 1, 2, and 3 GHG emissions by 90% by 2050 from a 2021 baseline.

Globe has identified a reduction target of 4.2% linear annual reduction rate (LARR) for its Scope 1 and 2 emissions. This is in alignment with the SBTi’s minimum annual linear reduction rate for the 1.5˚C global warming scenario.

Summary of Scope 1 and Scope 2 GHG Emissions in tCO2e

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	2021	2022	2023
1aScope	51,139.43	54,196.75	44,172.56
Fuel Combustion (Stationary)b	41,877.33	45,025.25	35,411.91
tCO2 (Carbon Dioxide)	41,298.56	44,402.75	34,968.57
tCH4 (Methane)	4.43	4.68	4.39
tN2O (Nitrous Oxide)	574.35	617.82	438.95
Fuel Combustion (Mobile)c	5,281.63	6,300.22	6,478.87
tCO2 (Carbon Dioxide)	5,218.71	6,228.12	6,412.90
tCH4 (Methane)	6.06	8.4	8.69
tN2O (Nitrous Oxide)	56.86	63.7	57.27
Fugitive - Refrigerantsd	3,980.47	2,871.28	2,281.78
Scope 2 Emissionse	457,302.65	431,790.91	353,570.72
Location-Basedf (Based on average grid emission factor)	522,939.07	517,382.47	421,725.85
Market-Basedg (Based on supplier-specific emission factor)	457,302.65	431,790.91	353,570.72
Total Emissions	508,442.08	485,987.66	397,743.28
GHG Emissions Intensity (tCO2e/Billion Pesos Gross Service Revenue)	3,339.24	3,076.28	2,450.67

a. Restated emission values for Stationary and Mobile emissions using the latest emission factors. This includes the equivalent emissions of the respective GHGs: Carbon Dioxide (CO2), Methane (CH4), and Nitrous Oxide (N2O) using the latest emission factors derived from BEIS 2022.

b. Stationary emissions are emissions coming from the company’s genset fuel consumption across its network facilities (i.e. core network, cell sites, etc.), corporate offices, and mixed-used facilities. Values for FY 2022 exclude consumption associated with Typhoon Rai (Super Typhoon Odette) and sites ported over to TowerCos in 4Q 2022.

c. Mobile emissions are emissions coming from the company’s owned and leased fleet. The emission factor used was based on the assumption that both diesel and gasoline fuel used are biofuel blends.

d. Fugitive emissions were not previously disclosed. Globe uses cooling systems applicable to each facility (i.e. air, water, refrigerant).

e. Restated values of emissions for FY 2020 and FY 2021 due to an update in the calculation methodology, as aligned with the GHG Protocol Corporate Accounting and Reporting Standard. Location-based and Market-based emissions are calculated using the Philippine Department of Energy (DOE) 2015-2017 National Grid Emission Factors for both non-renewable and renewable energy sources.

f. Values for FY 2022 exclude consumption from sites ported over to TowerCos in 4Q 2022.

g. Market-based emissions exclude all renewable energy consumptions from Power Purchase Agreements (PPA) and retired RECs.

Reduction in Overall Emissions in 2023

Scope 1

Decrease due to the operational transfer of the sold towers, and a decrease in incidents necessitating the use of generator sets (e.g., during typhoons).

Scope 2

Decrease due to the improved accuracy in data reporting, and the increase in renewable energy adoption.

Beyond operations, Globe also accounted for its Scope 3 emissions. In 2022, it was reported that the baseline Scope 3 emissions from 2021 totaled approximately 2.2 million tCO2 e. However, a subsequent adjustment to 1.8 million tCO2 e, ~77% of the total GHG emissions of Globe, was made after the company’s consultant, South Pole, provided updated emission factors.

After the baseline year, emissions were calculated in-house using publicly available emission factors. An initial recalculation was also performed for the 2021 base year, particularly in Categories 1 and 2, to align with the spend-based emission factors used for the in-house calculation in 2022 and 2023.

Summary of Scope 3 GHG Emissions in tCO2e

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Category	2021 (South Pole)	2021 (Recalculated)	2022	2023
Purchased Goods and Servicesa	1,327,126.00	456,725.01	612,959.33	273,259.37
Capital Goodsa	294,922.00	680,265.14	100,587.53	220,361.88
Fuel- and Energy-Related Activitiesb	166,770.00	166,770.00	101,213.74	82,631.41
Upstream Transportc	9,530.00	9,530.00	6,810.40	4,489.57
Waste Generated in Operationsd	66.00	66.00	106.49	98.37
Business Travele	3,475.00	3,197.00	1,283.06	1,004.59
Employee Commutingf	4,618.00	4,618.00	6,470.82	5,191.53
Upstream Leased Assetsg	2,779.00	2,779.00	30,925.88	37,964.14
Downstream Transportation and Distributionh	0.00	0.00	0.00	0.00
Processing of Sold Productsi	0.00	0.00	0.00	0.00
Use of Sold Productsj	25,856.00	25,856.00	20,103.97	18,504.50
End-of-Life Treatment of Sold Productsj	42.00	42.00	17.96	17.85
Downstream Leased Assetsk	0.00	0.00	0.00	0.00
Franchisesl	545.00	545.00	11,211.99	10,352.89
Investmentsm	0.10	0.10	154.19	1,283.49
Total Emissions	1,836,155.10	1,350,393.25	891,845.37	655,159.58

a. Calculated from Globe’s aggregated spendings per commodity category; 2021 data was recalculated to use the same emission factors (EXIOBASE) used for 2022 and 2023

b. Calculated using the actual fuel and energy consumption of the company

c. Calculated using aggregated spending for transport and logistics

d. Calculated based on the actual waste generation of the company

e. Baseline value has been updated to remove optional emissions (i.e., accommodation, other travel expenses); Also, there is a change in methodology from full spend-based to hybrid (spend-based for land and sea travel and activity-based for air travel)

f. Baseline value was estimated based on employee survey; Recent values were estimated based on the average distance of each employee from their work location (the mode of commute was determined based on its percentage distribution estimated using the 2021 survey)

g. Calculated using the actual electricity consumption of leased assets/outside the organization such as TowerCos and offices

h. Downstream Transportation and Distribution, which pertains to transport undertaken by the customers themselves (e.g., pick-up at stores), has not been accounted for

i. Scope 3 category is not applicable since Globe has no intermediate products

j. Baseline value has been updated to remove optional emissions (i.e., software and app use); Use of Sold Products and End-of-Life Treatment of Sold Products were calculated using the actual quantity of devices sold, their power consumption (based on available information), average usage, and weight

k. Emissions for facilities leased by Globe to other companies are already included under Scope 1 and Scope 2

l. Calculated based on the electricity consumption of Globe Premium Dealer Stores

m. Calculated based on the investment amount per industry group; 2023 data includes Scopes1 and 2 emissions of STT-GDC, proportional to Globe’s equity share

The company has approximately 655,159.58 tCO2e of Scope 3 emissions in 2023, equivalent to around 62% of the total emissions.

The emission hotspots remain Category 1 (Purchased Goods and Services), Category 2 (Capital Goods), and Category 3 (Fuel- and Energy-related Activities). The company saw an emission reduction of around 27% between 2023 and 2022 and 34% between 2022 and the base year (2021). These reductions were primarily driven by decreased expenditures in both operations and capital, directly impacting Purchased Goods and Services and Capital Goods.

Moving forward, Globe will continue refining its Scope 3 emissions data, and any necessary rebaselining in accordance with the Science-Based Targets initiative (SBTi) will be undertaken.