Environmental responsibility is an integral part of the MTS Group’s ESG strategy and includes three strategic areas – “Responsible Resource Management”, “E-Waste Management” and “Carbon Management”. The company consistently reduces its environmental footprint, and also actively develops digital services using Internet of Things technology, artificial intelligence, cloud technologies, big data, the implementation of which allows our customers to effectively manage their own resource consumption and reduce emissions of harmful substances and greenhouse gases.

MTS activities in the field of environmental protection are based on the law of the Russian Federation and regulated by the environmental policy. Design of MTS network facilities includes “List of Actions for Environmental Protection”, development of which is carried out in accordance with requirements of GOST R 21.1101-2013.

Energy efficiency management

The “Strategy of Energy Savings and Energy Efficiency” effective at MTS is aimed at restricting growth and reducing electric energy specific consumption. In order to reduce energy consumption by base stations, MTS uses modern energy-saving equipment. Moreover, this segment is a driver of technological innovation and has significant potential to reduce greenhouse gas emissions.

MTS actively uses modern renewable energy systems to ensure stable operation of base stations in hard-to-reach areas. They have proven their effectiveness due to their environmental cleanliness and low cost of operation.

Carbon management

Carbon management is one of the strategic areas of the ESG strategy. Understanding the relevance and importance of the carbon agenda for society, MTS regularly discloses information about the carbon footprint of the MTS Group, as well as about opportunities and actions aimed at decarbonization. Since 2019, the Company has been reporting annually on the results achieved in reducing greenhouse gas emissions on the international Carbon Disclosure Project (CDP) platform. Thereby, the company contributes to the implementation of the industry GSM Association’s initiative to develop a roadmap for the telecommunications industry for achieving zero greenhouse gas emissions by 2050 in support of the Paris Climate Agreement. MTS discloses a wide range of environmentally important data about its operations, including resource consumption and direct and indirect greenhouse gas emissions. Every year, the Company expands the scope of disclosed information and involves an increasing number of subsidiaries in public non-financial reporting.

Development of circular economy

In 2022, the implementation and consistent scaling of environmentally significant initiatives of the integrated ecosystem project “MTS Life Cycle Laboratory” continued. Thanks to the widespread introduction of a system of separate waste collection (SWC) and recyclables, over 7,750 tons of recyclables were collected and transferred to responsible contractors for processing and disposal at MTS Group facilities. Technologies that increase the service life of IT equipment were actively introduced. In partnership with SuperWave, in 2022, 362.6 thousand units were restored under the client equipment referral program. 22,396 kg of plastic and 18,745 kg of electronic components were transferred for responsible disposal.

MTS continued to work on the widespread introduction of electronic document management systems. By the end of the year, 93% of internal personnel documents were transferred to electronic form.

By the end of 2022, together with its subsidiaries, the Company sent:

• 130 tons of waste paper for recycling and responsible disposal,
• more than 100 kg of plastic bottles and 280 kg of plastic caps,
• 1.5 tons of used batteries,
• 1,100 kg of telephones and over 45 tons of other small electronic equipment.

MTS pays special attention to improving the efficiency of resource use.

Environmental education

The Company implements educational projects aimed at raising awareness of a wide range of stakeholders about the need for rational consumption of natural resources. In 2022, the Company updated the MTS Terra intra-corporate eco-educational project, and also developed and launched a new interactive environmental lesson “What is an eco-trail and how digital technologies help to reduce it”, which has already been listened to by more than 2.5 thousand high school students across Russia.

Volume of the energy resources used by MTS PJSC in 2022

Resource type	In kind		In monetary terms, RUB, w/o VAT
	quantity	Unit of measurement
Electric power	1,875,543,332	kWh	11,242,983,365
Heat power	52,089.4	Gcal	92,819,115.42
Water supply	239,182.56	m3	9,125,214.111
Gas supply	1,729,822	m3	10,485,264.82
Petrol	2,859,120	liters	114,986,183.00
Diesel fuel	3,572,303	liters	158,719,772.00
Liquified petroleum gas – propane	14,433	liters	264,319.00