AT&T Issue Brief: Greenhouse Gas Emissions

Global Reporting Initiative Standard Disclosures
Climate change & GHG emissions MA; 305-1; 305-2;
305-3; 305-4; 305-5

ESG Material Issues
Climate change & GHG emissions

Our Position

AT&T is committed to measuring and reducing our GHG emissions.

¹All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be available in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

²Carbon footprint does not include supplier emissions.

³Intensity metrics relative to our total number of subscribers include North America wireless, wireline voice and domestic broadband subscribers, as identified in our fiscal year 2021 Form 10-K.

Our Goals

TOPIC: GHG Emissions

2030 GOAL: Reduce our absolute Scope 1 and 2 GHG emissions ⁴ ⁴ Scope 1 emissions include direct emissions from sources owned or controlled by the company (such as the fleet). Scope 2 emissions include indirect emissions that result from the generation of purchased energy. 63% (2015 base year) – aligning with a 1.5°C pathway.

(Approved by the Science Based Targets initiative in 2021.)

PROGRESS: Estimated 36.4% reduction ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.
2021 estimated Scope 1 and 2 emissions were 5,619,367 metric tons of CO₂e. This represents an estimated 36.4% reduction from our 2015 base year (8,829,258 metric tons of CO₂e) – estimated 57.8% attainment toward our Scope 1 and 2 science-based target. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

TOPIC: Carbon Neutrality

2035 GOAL: Achieve carbon neutrality (net zero Scope 1 and 2 emission ⁴ ⁴ Scope 1 emissions include direct emissions from sources owned or controlled by the company (such as the fleet). Scope 2 emissions include indirect emissions that result from the generation of purchased energy. ).

PROGRESS: Estimated reduction of 3,209,891 metric tons of CO₂e ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.
2021 estimated Scope 1 and 2 emissions were 5,619,367 metric tons of CO₂e. This represents an estimated reduction of 3,209,891 metric tons from our 2015 base year (8,829,258 metric tons of CO₂e) – estimated 36.4% attainment toward our net zero target. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

TOPIC: Customer Emissions Reduction Enablement

2035 GOAL: Deliver connectivity solutions that enable business customers to reduce a gigaton (1 billion metric tons) of GHG emissions between 2018 and 2035.

PROGRESS: Enabled 110.3 million metric tons of customer emissions savings
AT&T-enabled customer GHG emissions reductions measured between 2018 and 2021 totaled 110.3 million metric tons of CO₂e – approximately 11% attainment toward our Gigaton Goal. ⁵ ⁵ Data does not include DIRECTV or Vrio.

Our Action

Please note that all 2021 data is estimated. Final data will be available in Q2 2022.

AT&T has been measuring and disclosing our GHG emissions annually since 2008. In 2020, we committed to reaching carbon neutrality by 2035 across our entire global operations. We will achieve net zero Scope 1 and 2 emissions ⁴ ⁴ Scope 1 emissions include direct emissions from sources owned or controlled by the company (such as the fleet). Scope 2 emissions include indirect emissions that result from the generation of purchased energy. through steps such as scaling our renewable energy use, accelerating network optimization and energy efficiency projects, and transitioning our fleet to electric vehicles (EVs). For more information, please see our Climate Strategy & Transition Plan.

In 2021, AT&T joined the Science Based Targets initiative (SBTi) – a joint effort of the Carbon Disclosure Project (CDP), World Wide Fund for Nature, United Nations Global Compact and World Resources Institute to reduce our GHG emissions in line with international consensus on limiting global temperature increases to 1.5°C. AT&T’s SBTi-approved goals are to:

Reduce absolute Scope 1 and 2 GHG emissions 63% by 2030 (2015 base year). Between 2015 and 2021, we reduced Scope 1 and 2 emissions 36.4% and are currently ahead of our timeline to achieve our target by 2030. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.
Work to ensure 50% of our suppliers (covering purchased goods and services, capital goods and downstream leased assets as a portion of spend) set their own science-based Scope 1 and Scope 2 targets by 2024. Through the end of 2021, 47% of our suppliers by spend have set such targets.

Since most of our emissions are tied to energy use, we aim to meet these targets by optimizing energy use in our facilities and networks, purchasing renewable energy and engaging our key suppliers to encourage emissions reductions upstream. Read more in our Energy Management issue brief.

The AT&T Implementation, Provisioning and Optimization organization oversees numerous aspects of our business that impact GHG emissions, including energy efficiency and energy conservation measures, decommissioning activities, and renewable energy programs and purchases. Other measures affecting our emissions – such as our fleet, employee travel and expense policies – are managed within distinct departments in accordance with organizational directives and procedures.

We evolve our GHG emissions management program and reporting tools to keep pace with the changing landscape and scope of our company, as well as with relevant standards, protocols and best practices. We work with an integrated energy services provider to compile, analyze and produce annual reports related to our GHG emissions. The content and methods related to data calculation, estimation and aggregation are reviewed each year to identify opportunities for improvement.

Performance

In 2021, AT&T’s estimated combined Scope 1 and market-based Scope 2 emissions decreased 2.9% relative to 2020. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

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Scope 1 (Direct Emissions)

Scope 1 (direct) emissions account for 13.4% of our total reported emissions. ⁶ ⁶ Inclusive of global Scopes 1, 2 & 3 non-supplier emissions. In 2021, we emitted 1,004,286 metric tons (MT) CO₂e. This represents an estimated 3.9% year-over-year decrease in Scope 1 emissions, in preliminary reporting. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

FLEET

AT&T expects to reduce its fleet emissions – which currently account for approximately 52% of our Scope 1 emissions – at least 76% by 2035. Through the end of 2021, our fleet emissions have decreased 182,975 MT CO₂e – or 26% – from our 2015 base year. This represents a year-over-year decrease of 26,013 MT CO₂e – or 4.8% – from 2020. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein. Although we expanded the fleet that supports our fiber and 5G network build-out, we reduced our overall fleet count. This overall vehicle decrease drove our Scope 1 emissions reduction.

We are members of the Corporate Electric Vehicles Alliance, which serves as a collaboration platform for companies to increase corporate demand for EVs and identify challenges and opportunities with adding EVs to their fleets. Additionally, in 2021, we began developing a Fleet Emissions Roadmap that will map our expected progress over the next 10 years. The plan will identify work needed on utility upgrades, plan site-specific readiness efforts and help us execute the procurement of EV supply equipment and EVs.

REFRIGERANTS

Refrigerants account for more than 26% of AT&T’s Scope 1 emissions. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein. We are developing an inventory database to account for all refrigerant usage and actual fugitive emissions as opposed to the current methodology based on Environmental Protection Agency leakage rates. This will allow us to identify hydrofluorocarbon (HFC)-free refrigerant replacements and develop a plan to reduce fugitive emissions.

STATIONARY ENGINES

More than 11% of AT&T’s Scope 1 emissions come from our use of stationary generator engines, which provide critical backup power to help maintain our network reliability. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein. We are currently evaluating opportunities to use fuel cells and other power generation options that will reduce our reliance on fossil-fuel backup generation.

Scope 2 (Indirect Emissions)

AT&T reports emissions using market-based Scope 2 emissions in accordance with the GHG Protocol, enabling us to account for renewable electricity in our portfolio.

Scope 2 emissions (from purchased electricity and steam – CO₂, CH4, N2O) account for the majority of our total operational emissions (Scope 1 and Scope 2, i.e., direct and indirect). Our market-based Scope 2 emissions account for 82.1% of our total operational emissions. In 2021, our year-over-year market-based Scope 2 emissions footprint decreased an estimated 2.71%, based on preliminary reporting. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

Since purchased electricity represents our greatest opportunity for emissions savings, we have multi-year transition plans in place to reduce electricity consumption where possible and accelerate energy efficiency efforts. In addition to reducing our energy use, we purchase renewable energy so that the energy we do consume is sustainably generated. The primary reduction in Scope 2 emissions resulted from additional renewable energy in our portfolio, the decommissioning of network and real estate assets, and network radio resource efficiency improvements. We also implemented various internal efficiency projects, including building optimization modifications and repairs including HVAC upgrades and lighting retrofits.

See our Energy Management issue brief for more information about our energy programs.

Scope 3 (Other Emissions)

AT&T reports on 6 Scope 3 emissions categories that are relevant to our business. In 2022, we are again evaluating the materiality of all 15 of the GHG Protocol categories. Our most relevant sources of Scope 3 emissions include:

Scope 3 Emissions Sources	MT CO₂e
2020 Emissions – Supplier Emissions ⁷ ⁷ Purchased goods and services, capital goods, and upstream transportation and distribution data will be estimated based on economic allocation of 2020 supplier GHG emissions, revenue and spend data for AT&T Communications. It will not include content and entertainment companies or suppliers’ own upstream Scope 3 emissions. The emissions are calculated from supplier responses to CDP Supply Chain using the industry-accepted economic allocation model.
Purchased Goods and Services	Pending ⁸ ⁸ Scope 3 emissions data will be available in Q2 2022.
Capital Goods	Pending ⁸ ⁸ Scope 3 emissions data will be available in Q2 2022.
Upstream Transportation and Distribution	Pending ⁸ ⁸ Scope 3 emissions data will be available in Q2 2022.
2021 Emissions
Waste Generated in Operations	Pending ⁸ ⁸ Scope 3 emissions data will be available in Q2 2022.
Business Travel	Pending ⁸ ⁸ Scope 3 emissions data will be available in Q2 2022.
Downstream Leased Assets	1.79 million ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

SUPPLIER EMISSIONS: PURCHASED GOODS AND SERVICES, CAPITAL GOODS, UPSTREAM TRANSPORTATION AND DISTRIBUTION

We work with the CDP Supply Chain program to collect emissions data from our top suppliers. This data enables us to estimate 3 Scope 3 supplier emissions categories, including purchased goods and services, capital goods, and upstream transportation and distribution. ⁷ ⁷ Purchased goods and services, capital goods, and upstream transportation and distribution data will be estimated based on economic allocation of 2020 supplier GHG emissions, revenue and spend data for AT&T Communications. It will not include content and entertainment companies or suppliers’ own upstream Scope 3 emissions. The emissions are calculated from supplier responses to CDP Supply Chain using the industry-accepted economic allocation model. We apply the economic allocation model to calculate emissions estimates. Each year, CDP receives data from the previous year’s emissions, so data received in 2021 covers 2020 supplier emissions. Given the annual 1-year lag in supplier emissions availability, those figures are not included in our overall 2021 Scope 3 emissions total. 2020 supplier emissions will be listed in the table above when available in Q2 2022. Please see our Responsible Supply Chain issue brief for further details about our supply chain efforts.

WASTE GENERATED IN OPERATIONS

To calculate our emissions related to waste generation, we use the Environmental Protection Agency’s Waste Reduction Model. We delineate our waste material by corrugated containers, office paper, dimensional lumber, yard trimmings, mixed paper, mixed metals, mixed plastics, mixed recyclables, food waste, mixed organics and mixed municipal solid waste. Our 2021 waste-related emissions will be available in Q2 2022.

BUSINESS TRAVEL

Our business-related travel includes air and rail travel and rental car use. It does not include rideshare or taxi use. Scope 3 business-related travel emissions will be available in Q2 2022.

DOWNSTREAM LEASED ASSETS

We track emissions from the operation of assets owned by AT&T and leased to other entities (e.g., customers) that are not already included in Scope 1 or Scope 2. Total emissions for leased assets for 2021 were 1.79 million MT CO₂e, a 34.3% decrease from 2020. ¹ ¹ All 2021 data is estimated and inclusive of DIRECTV and Vrio. Final values will be updated in Q2 2022. Note: In July 2021, we completed a transaction with TPG Capital involving our North America video business – including DIRECTV, AT&T TV and U-verse – to form a new company called DIRECTV. In November 2021, we completed the sale of our Latin America video operations, Vrio, to Grupo Werthein.

Pending ⁸ ⁸ Scope 3 emissions data will be available in Q2 2022.

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Greenhouse Gas Emissions

Our Position

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Scope 1 (Direct Emissions)

Scope 2 (Indirect Emissions)

Scope 3 (Other Emissions)

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