Road to Net Zero: GHG Emission Reduction Strategies

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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 202120222023
Scope 1 Emmisiona 51,139.4354,196.7544,172.56
Fuel Combustion (Stationary)b41,877.3345,025.2535,411.91
tCO2 (Carbon Dioxide)41,298.5644,402.7534,968.57
tCH4 (Methane)4.434.684.39
tN2O (Nitrous Oxide)574.35617.82438.95
Fuel Combustion (Mobile)c5,281.636,300.226,478.87
tCO2 (Carbon Dioxide)5,218.716,228.126,412.90
tCH4 (Methane)6.068.48.69
tN2O (Nitrous Oxide)56.8663.757.27
Fugitive - Refrigerantsd3,980.472,871.282,281.78
Scope 2 Emissionse457,302.65431,790.91353,570.72
Location-Basedf
(Based on average grid emission factor)		522,939.07517,382.47421,725.85

Market-Basedg

(Based on supplier-specific emission factor)

457,302.65431,790.91353,570.72
Total Emissions508,442.08485,987.66397,743.28
GHG Emissions Intensity (tCO2e/Billion Pesos Gross Service Revenue)3,339.243,076.282,450.67
  1. 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.
  2. 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.
  3. 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.
  4. Fugitive emissions were not previously disclosed. Globe uses cooling systems applicable to each facility (i.e. air, water, refrigerant).
  5. 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.
  6. Values for FY 2022 exclude consumption from sites ported over to TowerCos in 4Q 2022.
  7. 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 tCO2e. However, a subsequent adjustment to 1.8 million tCO2e, ~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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Category2021 (South Pole)2021 (Recalculated)20222023
Purchased Goods and Servicesa1,327,126.00456,725.01612,959.33273,259.37
Capital Goodsa294,922.00680,265.14100,587.53220,361.88
Fuel- and Energy-Related Activitiesb166,770.00166,770.00101,213.7482,631.41
Upstream Transportc9,530.009,530.006,810.404,489.57
Waste Generated in Operationsd66.0066.00106.4998.37
Business Travele3,475.003,197.001,283.061,004.59
Employee Commutingf4,618.004,618.006,470.825,191.53
Upstream Leased Assetsg2,779.002,779.0030,925.8837,964.14
Downstream Transportation and Distributionh0.000.000.000.00
Processing of Sold Productsi0.000.000.000.00
Use of Sold Productsj25,856.0025,856.0020,103.9718,504.50
End-of-Life Treatment of Sold Productsj42.0042.0017.9617.85
Downstream Leased Assetsk0.000.000.000.00
Franchisesl545.00545.0011,211.9910,352.89
Investmentsm0.100.10154.191,283.49
Total Emissions1,836,155.101,350,393.25891,845.37655,159.58
  1. 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
  2. Calculated using the actual fuel and energy consumption of the company
  3. Calculated using aggregated spending for transport and logistics
  4. Calculated based on the actual waste generation of the company
  5. 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)
  6. 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)
  7. Calculated using the actual electricity consumption of leased assets/outside the organization such as TowerCos and offices
  8. Downstream Transportation and Distribution, which pertains to transport undertaken by the customers themselves (e.g., pick-up at stores), has not been accounted for
  9. Scope 3 category is not applicable since Globe has no intermediate products
  10. 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
  11. Emissions for facilities leased by Globe to other companies are already included under Scope 1 and Scope 2
  12. Calculated based on the electricity consumption of Globe Premium Dealer Stores
  13. Calculated based on the investment amount per industry group; 2023 data includes Scopes 1 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.

Scope 1

 

 

Consumption of Fuel from Facility Gensets

Consumption of Fuel from Fleet Vehicles

Consumption of Refrigerants from Cooling Systems

 

 

Hybrid Solar Power Solution

 

Globe embraces hybrid solar power, advances decarbonization, and network resilience. This innovative project is a response to the global rise in fuel costs, particularly those impacting the operation of cell towers. At the same time, it is designed to reduce Globe’s carbon emissions and address challenges brought by the impact of climate change such as outages from strong typhoons.

 

The project aims to deploy solar power systems in 1,004 cell sites and 19 core sites that are Globe-owned. Construction of the solar energy solution will be led by Micro Power Philippines (MPP) and is scheduled to begin in February 2024. Moving forward, the goal is to deploy the same technology to approximately 7,000 sites sold to TowerCos. 

 

Globe is adopting a new business model that allows for partner financing of the design, construction, and maintenance of the project.

 

Electric Vehicle for Employee Shuttle Service

 

In 2022, the Philippine Electric Vehicle Industry Development Act (EVIDA) was enacted requiring that at least 5% of owned or leased fleets be EV within the prescribed timeframe of the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI). In line with the EVIDA, the company developed its initial EV transition roadmap as it looks to shift its fleet to EV. As a start, Globe partnered with Global Electric Transportation (GET) to pilot EV shuttles for interoffice travel of its employees. Started in January 2023, two electric vehicles (EVs) take up to 30 Globe employees at a time for trips around Globe headquarters in Bonifacio Global City and its offices in the cities of Makati and Mandaluyong.

 

Gogoro Smartscooter®

 

Advancing the adoption of EVs in the Philippines, Globe, through its portfolio company 917Ventures and in collaboration with Ayala Corporation and Gogoro Inc., has launched Gogoro Smartscooter® and battery-swapping services in the country. The electric scooters provide an eco-friendly and cost-effective alternative to Filipino riders. Apart from this, the first Gogoro battery-swapping station was launched at The Globe Tower, marking the start of a network that will eventually be available throughout the country. The pilot test resulted in 3,316 kg of carbon emissions avoided (based on calculations of Gogoro), 2,603 batteries swapped, and a total distance of 42,399 km ridden.

 

Deploying Green Network Solutions to Improve Energy and Resource Efficiency

 

Since 2014, Globe has deployed over 12,141 green network solutions. These alternatives use cleaner fuel with lower emissions, consume less diesel fuel, and provide energy-efficient heat removal compared to their traditional counterparts. 

 

In 2022, the company started deploying sodium nickel batteries, a new green energy solution, in its critical sites. This reduces the need for frequent replacements and to date, more than half of its core network sites are using it. Since these batteries are 100% recyclable and have a 20-year lifespan, it doubles that of the previously deployed Valve Regulated Lead Acid (VRLA) battery.

 

 

Electricity Consumption from the National Power Grid

Electricity Consumption from Renewable Energy via Power Purchase Agreements (PPA)

 

 

Harnessing Energy Efficiency and Conservation through an Energy Management System

 

Increased network builds, expansion of coverage, and the return to office saw Globe’s electricity consumption increase in 2022. However, the sale of Globe’s towers and transfer of its operational control shifted some of its energy consumption to its leased assets. Beyond that, Globe’s approach to tackling climate change and network transformation heavily relies on energy efficiency and the transition to renewable energy, contributing to a decrease in its Scope 2 emissions. 

 

The company constantly aims to build its systems in an energy-efficient manner to benefit both its business and the environment as a responsible organization. Additionally, Globe has embraced network modernization, allowing it to swap out outdated equipment that has reached the end of its useful life with newer models that have a higher capacity to its power-consumption ratio. Globe supports the government in strengthening the implementation of RA 11285 or the Energy Efficiency and Conservation Act by participating in public consultations on its supporting policies to ensure clarity and encourage continued adherence of companies.

 

Globe Shifts Facilities to Renewable Energy

 

Globe aims to source 44% of its electricity from RE by 2030, and 98% by 2050, in accordance with regulatory timeline movements. As a priority in its decarbonization journey, Globe began acquiring renewable energy in 2019 with Power Purchase Agreements (PPA)-verified carbon offsets with the Department of Energy’s Green Energy Option Program (GEOP) and Retail Competition and Open Access (RCOA), which give consumers with a monthly average peak demand of 100 kilowatts (KW) and above the option to engage directly with energy suppliers. 

 

Through partnering with Retail Energy Suppliers (RES) like ACEN, Globe utilizes the suppliers’ solar energy and geothermal plants, and purchases renewable energy that could potentially encourage more investments toward clean energy in support of the Philippines’ commitment to the Paris Agreement, through the Nationally Determined Contribution (NDC). A boost in the demand for clean energy sources can potentially increase investments in renewable energy, making it more affordable, and reducing the country’s contribution to global carbon emissions. 

 

During the year, Globe has shifted its Iloilo and Bacolod sites and another facility located in Batangas to renewable energy.


For more information on Scope 2 reduction, please see pages 151-153 of the 2023 Globe Integrated Report.

 

 

Purchased Goods & Services

Capital Goods

Fuel and Energy-related Services

Upstream Leased Assets

Use of Sold Products

 

 

Moving Towards a Sustainable Supply Chain

 

By enhancing its supply chain policies, Globe aims to mobilize its vendors and suppliers to integrate sustainability in their operations. During the year, Globe released its Sustainable Supply Chain Policy Commitment that reinforces its adherence to sustainable practices across all operational areas, thereby enhancing both business resilience and delivering environmental and social benefits. 

 

Through this policy commitment, Globe will exercise enhanced supplier due diligence, selecting vendors based on a multifaceted assessment that scrutinizes their sustainability commitments, practices, and overall performance. Globe is also reinforcing the importance of the Supplier Code of Ethics (SCoE), expecting all accredited suppliers to adhere to it. 

 

Under its strengthened policy, Globe reiterates the environmental management provisions of the SCoE, encouraging vendors to align with it in support of the company’s climate action roadmap.

 

Sustainable Procurement

 

Globe has established sustainability criteria for its procurement processes, which cover retail electricity suppliers and network equipment and software vendors. By prioritizing sustainability in its procurement, Globe ensures that its products and services support its corporate commitment to achieve net zero by 2050. 

 

For potential Retail Electricity Suppliers under Sustainable Power Purchasing, Globe assesses vendors based on both Financial and Technical Criteria, with sustainability accounting for 32.5% of the overall evaluation criteria. For network equipment and software vendors, sustainability accounts for 10% of the overall evaluation. 

 

Moving forward, the company will work towards developing high-level sustainability criteria applicable across the company’s partners which will be integrated in partner contracts. Project-specific sustainability criteria will be developed as necessary.

 

Internal Carbon Price Pilot

 

Within the next three years, Globe plans to integrate an Internal Carbon Price (ICP) mechanism in its operations to achieve its Net Zero ambition. ICP is a mechanism wherein companies can put a value on their GHG emissions in a way that drives positive change in their business. Its implementation will focus on “needle-moving” spends emphasizing the need for behavior change of the own company prior to the customers. 

 

Globe intends to pilot an ICP using the shadow pricing method, which establishes a hypothetical cost of carbon emissions for awareness and potential behavior change. Globe anticipates that ICP will: 

 

  • Enable business units to pursue more energy-efficient options 
  • Reinforce greener decisions given the greater amount of emissions savings 
  • Encourage business units to explore green initiatives to build a stronger case from observed savings and a higher level of support

To read more about Globe’s Net Zero Journey, please refer to pages 140-159 of the 2023 Globe Integrated Report.

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