General approaches

In its activities, MTS strives to not only have a minimal impact on the environment, but also to reduce this impact. The Company is guided by applicable environmental legislation, as well as by the principles of responsible business conduct, and strives to improve the environmental culture of its employees and partners and to implement services based on advanced technologies.

The fundamental principles of the MTS Policy for Environmental Safety and Protection:

• compliance with the requirements of the nature-conservation legislation of the Russian Federation;
• compliance with the requirements of national and international standards in the field of environmental protection;
• improved level of environmental awareness and education of all company employees;
• implementation of environmental socially significant projects;
• openness and availability of environmental information;
• continuous improvement of MTS environmental management system;
• reduced level of negative impact on environment and aspiration for sustainability.

Due to the introduction of a unified environmental management system, a process has been established to form a unified approach to ensuring compliance with and implementation of the standards and requirements of environmental legislation in MTS branches; the design of MTS network facilities provides for a “List of Environmental Protection Activities”, the development of which is carried out in accordance with the 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. MTS seeks not only to improve the energy efficiency of its facilities, but also to use environmentally friendly alternative power sources. Some of our base stations are equipped with backup power supplies based on hydrogen fuel cells and solar panels.

The MTS Energy Efficiency Program includes a set of measures:

• replacement of fluorescent lighting with LED;
• use of air conditioning systems with the free-cooling function and equipment corresponding to at least “C” energy efficiency class;
• activation of software logics on MTS network to disconnect transceivers of base stations in the period of low load;
• use of base stations with passive cooling of transceivers and the maximum approximation of distribution panels to consumers in order to reduce losses in electrical wiring;
• use of cables with copper cores.

In order to reduce power consumption by base stations, MTS:

• switches to light diode lamps in mast lighting systems;
• uses conditioning systems with a free cooling function;
• replaces equipment for more energy efficient;
• uses equipment of at least C class;
• installs equipment in compact telecom cabinets instead of equipment shelters;
• uses software logics to disconnect transceivers of base stations in the period of low load;
• introduces an automated system for commercial electric-power metering;
• uses base stations with passive cooling of transceivers, when feederless external radio modules are used (active equipment is located directly on a pillar or tower), which does not require power consumption for cooling.

Alternative energy

The number of MTS power plants using renewable energy sources (RES) is quite high. The first solar generation-based power supply system was deployed in 2015 at the Whale Fin Pass by the coast of the Sea of Japan in the Far East. Later on, in 2019, a base station powered only by photo panels was put into commercial operation in the Far East. The station is located in the popular recreation area of Spokoynaya Bay. And in 2021, a solar power plant equipped with remote system monitoring was launched in the Astrakhan Region.

The renewable energy sources used to ensure the stable operation of base stations in hard-to-reach areas have proven their efficiency due to their eco-friendliness and low operating cost. Moreover, this segment is a driver of technological innovation and has significant potential to reduce greenhouse gas emissions.

Carbon management

In an effort to minimize even an insignificant impact on nature, MTS manages the sources of its own environmental impact. Since 2019, the Company has been implementing a comprehensive Carbon Management project, which determines the main climate risks and opportunities, goals and levers of decarbonization, areas of interaction with equipment suppliers regarding the assessment and reduction of greenhouse gas emissions.

Also, in 2019, MTS started reporting through the CDP platform within the GSMA initiative to develop a roadmap for the telecom industry actions to achieve zero greenhouse gas emissions by 2050 pursuant to the Paris Agreement. Within this report, MTS discloses a wide range of environmentally important data about its operations, including resource consumption and direct and indirect greenhouse gas emissions. In 2021, MTS confirmed its high B (Management) score from the experts of the Carbon Disclosure Project (CDP)¹ significantly strengthening its position in terms of disclosing data on MTS Group’s carbon footprint.

1 The full 2021 climate impact questionnaire by MTS can be viewed on the CDP website.

Development of circular economy

The Company is implementing a number of projects aimed at developing the circular economy

• Eco-Office Program implemented since 2014 for the Company employees, involving implementation of the principles of rational use of electricity and consumables for office equipment, separate waste collection and environmentally friendly waste disposal, as well as programs to promote the attitude of care for the environment and healthy lifestyle; separate collection of paper, batteries and plastic was arranged In 2021, >800 tons of batteries and spent power components, >82 tons of waste paper and >100 kg of plastic were transferred for recycling.
• The program of disposing of telecommunication equipment, within which the spent devices are sold back to the manufacturer, sold to other companies on a competitive basis, or agreements with specialized recycling companies are concluded.
• 2020 was marked by the launch of the Life Cycle Laboratory ecosystem project aimed at consistent introduction of the circular economy principles into the business processes of MTS Group. The project is based on an integrated approach, including the collection and transfer of municipal solid waste for disposal and processing, a responsible attitude to e-waste, equipment that has served its time, office furniture and other types of waste, entering appropriate changes into business processes and holding an information campaign for active employee involvement into the project. An important component is the distribution of the best practices to MTS Group subsidiaries.

Environmental education

Traditionally, MTS has implemented educational projects aimed at creating an environmental culture of employees and raising their awareness of the need for rational consumption of natural resources, the benefits of separate waste collection and the use of products from recycled materials.

• One of the most large-scale initiatives is the annual ecological holiday “Eco Day with MTS”, which consists of a set of environmental awareness and educational events. As part of a series of educational events, employees, partners and their families get familiar with important topics, get the opportunity to learn about the “ecological footprint” concept and the ways it can and should be reduced.
• As part of the “Children Learning about Our Planet” environmental education project, MTS conducts thematic workshops and eco-lessons. Since 2014, we have been implementing educational programs for children aimed at promoting attitude of care for the natural environment using modern technologies. Since the launch of the “Children Learning about Our Planet” project, more than 350 MTS lessons have been held attended by more than 9 thousand children of primary and secondary school age. MTS volunteers are conducting eco-lessons and thematic workshops for children of the MTS branch network employees and pupils of sponsored children’s social institutions throughout Russia.
• Since 2020, the “Power Place” eco-educational project has been implemented aimed at creating and introducing modern tools for preserving natural heritage and developing eco-tourism, as well as raising the level of environmental culture in the country. Within the project, MTS: creates unique digital content narrating about the natural and other features of nature reserves and urban park areas; develops the infrastructure of nature reserves to increase their accessibility to a wide audience, create additional educational opportunities and preserve the unique wildlife species; supports and promotes the cultural values of specially protected areas.

We strive to attract the attention of business and the general public to environmental problems by setting our own example. In the regions of operation of the Company, the “Simply Do Good!” corporate volunteer movement annually organizes eco-community cleanups.

External expert opinion

The high Company level in the field of environmental responsibility is annually assessed by rating agencies and awarded at international competitions and awards of various levels; thus, in 2021:

• MTS entered the top 10 ESG RAEX-Europe ranking of Russian companies;
• AK&M upgraded the position of MTS in the ESG reporting rating to RESG1 noting the highest degree of disclosure of information on sustainability in MTS public reports;
• MTS became the winner of the ECObest Award 2021 with the Green Marathon project winning in “The Best Educational Eco-Project” category;
• MTS became the winner of the “Green and Healthy Office 2021” award winning in “The Best Program for Environmental Education and Employee Training” category;
• the comprehensive MTS project “MTS Life Cycle Laboratory” was awarded a special Green Award in the Brands category.

More detailed information is available in the MTS Group Sustainability Report for 2021: chapter “Corporate Social Responsibility”, section “Ecology”.