Climate Change & Greenhouse Gas Emissions

AT&T prioritizes sustainable business practices to address global challenges such as climate change and is an active participant in the worldwide effort to transition to net zero greenhouse gas (GHG) emissions. In 2020, we committed to reaching carbon neutrality by 2035 in Scope 1 and 2 emissions across our global operations, followed by interim targets approved by the Science Based Targets initiative (SBTi) in 2021. 

We are deploying Smart Climate Solutions—through efforts like our Connected Climate Initiative—that will help enable our business customers to reduce their emissions as well. Our goal is to help collectively reduce their emissions by 1 billion metric tons—a gigaton—by 2035, compared to 2018 levels.

Meanwhile, we are strengthening our network resilience, utilizing climate data, and we are working with our communities, our customers and others to do the same.

For more information, see our Global Reporting Initiative Index and Task Force on Climate-related Financial Disclosures (TCFD) Report.

In 2023, AT&T continued efforts to reduce our GHG emissions, help our customers and partners reduce theirs, and proactively manage our climate-related risks.

• To pursue our goal of helping customers reduce their emissions by a gigaton, we are creating Smart Climate Solutions that leverage AT&T connectivity solutions such as fiber, 5G and Internet of Things (IoT). As of the end of 2023, we have identified 30 Smart Climate Solutions addressing high-impact areas such as transportation, buildings, manufacturing, energy and agriculture. And we are pursuing collaborations to develop more.
• We made progress toward carbon neutrality by continuing to invest in renewable energy and by deploying our first electric vehicles in our fleet. We are also preparing more locations with electric vehicle infrastructure. 
• We continued the expansion of our Scope 3 inventory. We engaged with suppliers on setting science-based targets to reduce GHG emissions in their operations and in AT&T’s value chain. We continue to push further beyond our 2024 Scope 3 science-based target of 50% of our suppliers by spend setting their own Scope 1 and 2 science-based targets. We met our Scope 3 science-based target two years ahead of schedule by ensuring that suppliers representing 53% of our spend have set science-based Scope 1 and 2 targets. The number increased to 55% in 2023.
• Additionally, we are supporting climate resilience with the award-winning Climate Risk and Resilience Portal (ClimRR) that we developed in collaboration with the Federal Emergency Management Agency (FEMA) and Argonne National Laboratory. ClimRR provides communities with data to better understand and address the expected future impacts of climate change. See below for more details on how ClimRR is helping to build community resilience. We continue to work to enhance and grow awareness of this unique and impactful resource. 

Governance

We rely on several policies, oversight structures, management roles and procedures to manage climate-related risks and opportunities at AT&T.

Policies

• Environmental Statement: The AT&T Environmental Statement addresses our approach to managing the impacts of climate change. The policy guides us in helping our customers be more sustainable, reduce our own GHG emissions and increase resilience throughout our operations.
• Climate Strategy & Transition Plan: Our Climate Strategy & Transition Plan describes our approach to supporting the transition to a net zero economy.

Board of Directors Oversight

• Governance & Policy Committee (GPC): The GPC of the AT&T Board of Directors (Board) meets no fewer than four times per year to assist the Board in oversight of AT&T’s Governance practices and Corporate Responsibility strategy, including related policies, programs and sustainability reporting. In 2023, the GPC held four regularly scheduled meetings, which included climate initiatives and reporting information.
• Audit Committee: The Audit Committee of the Board oversees our internal audit of Corporate Responsibility reporting and our integration of Corporate Responsibility issues into corporate enterprise risk management analysis.

Climate-Related Management Roles

• Chief Sustainability Officer (CSO): Our CSO, who is also our Senior Vice President of Corporate Responsibility, oversees AT&T’s climate strategy. Our CSO receives weekly updates on climate-related activities and developments throughout the business. Our CSO is also present at GPC meetings for sustainability dialogue.
• Corporate Responsibility (CR) Governance Council: Our CR Governance Council is led by our CSO and is composed of more than a dozen officers representing business operations aligned to our most important sustainability focus areas. It meets multiple times per year and collaborates across a broad range of initiatives, competencies and perspectives.
• Assistant Vice President (AVP) of Global Environmental Sustainability: As a direct report to the CSO, the AVP of Global Environmental Sustainability oversees AT&T’s climate-related strategy and leads our Environment Committee, which comprises business leaders from across the company.
• Environmental Sustainability Team: Members of our Global Environmental Sustainability team, also led by our AVP of Global Environmental Sustainability, monitor internal and external climate-related developments and communicate the most relevant issues to the CSO. The team works closely with business unit experts to implement and enhance programs and policies addressing climate-related risks and opportunities for AT&T.
• Senior Vice President (SVP) of Engineering & Operations: Our SVP of Engineering and Operations has responsibility for the resilience of our network, including energy and water use. This position also oversees our commitments to renewable energy procurement, energy efficiency, network disaster response and business continuity planning.

Climate-Related Ties to Leadership Compensation

• Executive Officers: Our CEO and other Named Executive Officers have short-term incentives focused on strategic measures such as “advancing our ESG priorities, especially worker health and safety, global emissions reduction and helping to narrow the digital divide.” In 2023, attainment was demonstrated, in part, through our reduction of AT&T Scope 1 and 2 GHG emissions. Read more in our most recent Proxy Statement. 
• Senior Leaders: Demonstrated progress toward and achievement of goals that address climate-related issues, such as our approved science-based carbon reduction targets and our 2035 carbon neutral goal, are part of the annual performance objectives for our CSO. Our VP of Implementation, Provisioning and Optimization and other senior leaders across our business have energy efficiency and optimization goals that contribute to our carbon reduction objectives. Performance toward such goals is considered when these individuals’ supervisors determine annual merit salary increases and bonus awards. 

For more information about how remuneration is tied to the management of climate-related issues, please visit our Task Force on Climate-related Financial Disclosures Report and CDP disclosures.

Management Practices

• Updating GHG Emissions Management: Our GHG emissions management program and reporting tools evolve 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. 
• Automating Emissions Data: We have continued our work of automating significant portions of our GHG emissions data collection and the calculations associated with our annual GHG emissions statement. The goal is to reduce data collection and processing time, speed up data validation and decrease the likelihood of human error. Learn more about our methodologies for calculating emissions.
• Corporate Responsibility Reporting Quality: We evaluate sustainability topics through our stakeholder engagement efforts and evaluate those topics for inclusion in our corporate enterprise risk management process. We obtained annual, limited independent assurance of our Scope 1, 2 and select Scope 3 emissions in accordance with the International Standard for Assurance Engagements 3000 (Revised). The rigor of this process helps us realize year-over-year improvements in accuracy. Learn more in the Independent Accountant’s Report. 
• Oversight of GHG Emissions: The AT&T Implementation, Provisioning and Optimization organization, which sits in our Network Engineering and Operations organization, oversees numerous aspects of our business that impact GHG emissions. This includes energy efficiency and energy conservation measures, decommissioning activities and renewable energy purchases. Other measures affecting our emissions—such as our fleet—are managed within distinct departments in accordance with organizational procedures. 

Climate Change Strategy

To help us better understand how AT&T is positioned to respond to climate change, we assess potential climate-related impacts on our operations. Our resulting climate strategy focuses on three areas: mitigating impacts, managing climate-related risks and seizing opportunities.

Mitigating Impacts

Our 2030 science-based target for Scope 1 and 2 emissions aligns with a 1.5-degree pathway, meeting the ambitions of the Paris Agreement. We are also advancing toward a 2035 carbon neutral (Scope 1 and 2) goal. Underlying these goals are our commitments to energy efficiency, renewable energy procurement and reducing our fleet emissions. 

We are working to achieve these goals through the following initiatives:

• Scope 1 Emissions Reduction: 62% of AT&T’s Scope 1 emissions comes from our ground fleet.³ We have begun transitioning our fleet to low-carbon alternatives.
• Scope 2 Emissions Reduction: Purchased electricity and steam are a predominant source of emissions for AT&T, with market-based Scope 2 emissions accounting for nearly 84.8% of our total operational emissions (Scope 1 and 2). AT&T is actively addressing these emissions through renewable energy procurement and the implementation of energy efficiency projects and network optimization efforts.
  • In 2023, AT&T renewable energy deals accounted for 3.3 million MWhs of produced electricity.
• AT&T uses IoT solutions to drive efficiencies in our internal operations. To optimize energy use in our buildings, we implemented a solution that uses AT&T connectivity to acquire performance data from facility equipment across the U.S. We analyze the data centrally to create performance baselines, monitor equipment status and identify required maintenance in real time. This effort contributes to maintenance cost savings and reductions in unnecessary energy use. Learn more about how we use IoT to manage our facilities in our Customer Stories.
• Scope 3 Emissions Accounting: In 2023, AT&T analyzed our 2022 Scope 3 emissions statement. This was necessary due to multiple methodology changes and the addition of Category 15: Investments to our 2023 emissions statement. Additional information regarding our Scope 3 methodologies and updated emissions accounting can be found below.
• Carbon Offsets: Though we aim to reduce our emissions footprint as much as possible, there may be some sources of emissions that cannot be eliminated. In these cases, we may invest in carbon offsets in the future. We are committed to pursuing only the most credible offsets and aim to be transparent in our approach. To date, carbon offsets are not included in our carbon footprint.

For more information about our goals, please see the Our Goals & Progress section in this issue brief.

Managing Climate-Related Risks

AT&T assesses how regulations, developments in technology, and market or reputational factors could affect our company. We look at the long-term projected impacts of climate change and continue to seek new ways to integrate climate data into our planning systems to inform infrastructure decisions for the future. In addition, we are making data publicly available via our Climate Risk & Resilience Portal to empower municipalities, businesses, non-governmental organizations and others to build climate resilience. Details about how we identify and prepare for climate-related risks are outlined below:

Climate Scenario Analysis

In 2023, we worked with an external vendor to complete a scenario analysis aligned with TCFD recommendations. As part of this process, we engaged stakeholders from across the company to help us identify climate-related risks and opportunities. The scenario analysis helped us prioritize the climate-related risks and opportunities most significant to the company and estimate the financial impacts. A few areas of focus include improving data collection of hazard impacts, defining the return on investment of resiliency efforts, and expanding our collaboration with new business unit partners that have the potential to be impacted by climate-related issues. For more information about our climate scenario analysis, see our TCFD Report. 

Physical Risks 

We are adapting our business practices to minimize the impact of climate change, including changes in weather and natural disaster patterns. We conduct regular analysis and implement solutions to help ensure that our network infrastructure, such as cell sites, can withstand natural disasters and other environmental factors. For example, in certain locations, we deploy high-capacity battery backup to our cell sites, which enables them to remain in service in the event of a power loss. We also utilize advanced climate tools and modeling to project infrastructure risk out into the future and make better, climate-informed decisions for our network. 

Transition Risks

AT&T recognizes that our company can be impacted positively or negatively by an accelerating transition to a more sustainable economy. We are looking at both the potential risks and opportunities associated with that transition. 

AT&T’s climate strategy and transition plan focuses on three areas: mitigating impacts, managing climate-related risks and seizing opportunities. As part of our effort to support the transition to a net zero economy, AT&T has committed to be carbon neutral across our entire global operations by 2035. We plan to achieve this goal by eliminating Scope 1 and 2 emissions through improved energy efficiency, moving to a low-emissions fleet, scaling renewable energy capacity and transitioning away from technologies that use traditional fossil fuel-based energy production. For more information about our transition plans and identified transition risks, see our CDP Disclosures, TCFD Report and Climate Strategy & Transition Plan.  

Using Climate Data to Build Our Network Resilience

For years, we have been working with the U.S. Department of Energy’s Argonne National Laboratory (Argonne) to get the best available climate data to help make our network more climate resilient. We have future-looking climate projections on wind, drought, wildfire and flooding at the neighborhood level, up to 30 years in the future. With this data, AT&T can take climate change into account as we plan for network buildouts, maintenance and disaster preparedness. Among the efforts our climate data supports: 

Prioritizing Network Resilience Investments for Existing Sites:

• We’re using the climate data in our model to improve network resiliency in existing sites. To fortify our assets, we tripled our electrical maintenance budget for 2023 and invested in new onsite equipment to better protect our sites against future weather events. As an example, we have assets called Mobile Telephone Switching Offices, which contain important network elements, located across the country. By integrating coastal storm surge and flood data from Argonne into our vulnerability modeling for these sites, we can identify which sites should be prioritized.
• In hurricane-prone areas such as the Southeast, we’re planning to make investments in new generators, rectifiers and batteries; maintain critical electrical equipment such as HVACs; install flood gates; and upgrade switchgear equipment. Once a location has been approved for enhancements, the construction and engineering teams can make more informed decisions about how to protect the site. For example, by using Argonne projections of flood extremes, we can make smarter decisions about where to place flood gates. Our teams have used this and other data to analyze the climate-informed flood vulnerability of more than 7,000 facilities. These analyses have led to the installation of flood gates, generators and upgraded switchgears to enhance network resilience.

Assessing Climate Impacts in Network Planning & Design of New Sites:

• When we’re planning a new mobility site to enhance coverage or capacity, we typically consider several factors, including radiofrequency coverage, fit with overall tower-location strategy, fiber proximity and rental costs. As part of our efforts to develop a new end-to-end workflow system for planning and design, we began incorporating climate-related risk factors into the site selection and prioritization process. These factors include wind, wildfire, drought, inland flooding and coastal flooding. Equipped with that data, engineers can proactively build sites with lower risk and cost, reduce downtime due to disasters and harden our network for the future.
• AT&T also integrates climate data into our wireline planning and design system, enabling engineers to identify where climate hazard exposure could be an issue and how to harden equipment appropriately.
• Moving forward, we’ll be deploying a series of trainings aimed to educate employees about how climate data can help enhance resilience. In order to build climate-resilient infrastructure, we need a climate-informed workforce.

Embedding Climate Data into Weather Forecasting Tools:

• AT&T has several tools that help us predict and visualize the short- and long-term impacts of extreme weather. Our AT&T Weather and Operations Center includes a group of meteorologists who issue daily updates to the network operations teams managing company assets. With this enhanced intelligence, network teams can prepare and protect critical equipment from weather impacts and make climate-informed decisions. 

Climate Risk & Resilience Portal (ClimRR)

AT&T, Argonne and FEMA created the award-winning ClimRR portal to advance access to cutting-edge climate projections and help improve America’s preparedness for future climate-related events. 

ClimRR makes some of the most sophisticated climate-science modeling in the world publicly accessible. It provides state, local, Tribal and territorial emergency managers and community leaders free access to localized data about future climate risks that can be used to explore strategies for resilience. ClimRR enables community leaders and public safety officials to understand how climate risks such as extreme heat, heavy rainfall, wildfire and drought will affect their populations. 

Access to the information in ClimRR can assist municipal leaders as they strategically invest in infrastructure and response capabilities to protect communities. ClimRR can help local public health officials and emergency managers understand where limited resources will have the biggest impact in protecting against threats such as flooding and extreme heat. 

AT&T works with external organizations to maximize the positive impact ClimRR can have on communities across the country. For example:

• In 2023, we promoted awareness of ClimRR at Concordia’s Annual Summit during Climate Week, the Conference of Mayors Annual Meeting, and the Climate Leadership Conference.
• To find new use cases for ClimRR, we’re working closely with thought leaders such as C2ES, a think tank that brings the business community and public sector together to discuss climate solutions. C2ES invited AT&T to join a new initiative with Resilience Rising and Resilience First to launch a multi-year initiative to build and mainstream climate resilience within the private sector. We’re also participating in its newly launched Climate Resilient Communities Accelerator in the North Front Range of Colorado.
• AT&T collaborated with Idaho’s Office of Emergency Management to integrate an analysis of forward-looking data into the state’s 2023 Hazard Mitigation Plan. The state chose to utilize data from ClimRR to inform its long-term risk reduction strategies.

In 2023, ClimRR received numerous awards and recognitions, including: 

• 2023 Climate Leadership Awards: Winner in the Innovative Partnership Certificate category
• 2023 R&D 100 Awards: Winner in the Software/Services category
• 2023 U.S. Chamber of Commerce Foundation Citizens Awards: Finalist in the Best Community Resilience and Disaster Response Program category
• 2023 World Sustainability Awards: Shortlisted in the External Partnership Award category

Seizing Opportunities

AT&T connectivity solutions can support emissions reductions in industries that currently have large environmental footprints, such as transportation, real estate, manufacturing, energy and agriculture.

Gigaton Goal and Smart Climate Solutions

In 2021, we launched the Gigaton Goal to deliver connectivity solutions that enable business customers to collectively save a gigaton (1 billion MT) of GHG emissions from 2018 through 2035. A gigaton amounts to about a fifth of all U.S. GHG emissions in 2020.⁹ We aim to achieve this goal by developing Smart Climate Solutions—technology solutions that utilize AT&T connectivity to enable efficiencies that reduce emissions. Between 2018 and 2023, AT&T identified 30 Smart Climate Solutions and calculated the emissions reductions that each can support. These solutions have already enabled emissions reductions of 188.3 million MT CO₂e—19% of our Gigaton Goal. We plan to report progress toward our Gigaton Goal annually.

To pursue the Gigaton Goal, we need to increase the number and adoption of Smart Climate Solutions. We have identified nine key Impact Areas in which AT&T connectivity can play a fundamental role in reducing emissions, including Modern Workplace; Transportation; Healthcare; Smart Cities and Buildings; Manufacturing; Energy; Consumer/Retail; Food, Beverage and Agriculture; and Reselling. We work with The Carbon Trust to develop emissions abatement factors representing the average emissions reduction that can be achieved through AT&T-enabled solutions. Collaborating with our customers on these technology solutions can also create opportunities for us to bring innovation to new industries and markets.  

The Connected Climate Intiative

To pursue the Gigaton Goal, we formed the Connected Climate Initiative (CCI)—a collection of complementary technology and industrial companies, universities and nonprofits that are working together to scale Smart Climate Solutions.

• Purpose: Through CCI, we convene people from leading technology companies, AT&T Business customers, universities and nonprofits to identify best practices, develop innovative new products and use cases, and scale the innovations of startup partners building 5G and other broadband-enabled Smart Climate Solutions.
• Collaboration: We work with a range of companies to develop and market solutions that utilize connectivity to enable emissions reduction. From global consultancies and leading software platforms to startups looking to transform industries, we’re working to build relationships that drive business success and emissions reduction. We’ve also funded research at Texas A&M University, Purdue University and the University of Missouri to evaluate how 5G can enable emissions reduction in transportation, manufacturing and buildings.
• 2023 CCI Smart Climate Solution Examples: 
  • Professional services: We recognize that AT&T connectivity plays an important role in developing new processes to reduce emissions, so we’ve collaborated with leading consultants such as Deloitte and Cognizant to integrate connectivity into major emissions software platforms.
  • Cloud services: We integrated AT&T IoT connectivity into the Salesforce Net Zero Cloud to make it easier to track emissions at the asset level in near-real time. We’ve also worked with Microsoft to bring to market Connected Spaces, a product that combines AT&T IoT connectivity and Microsoft’s Azure cloud environment. Connected Spaces helps facility operators in the retail sector increase energy efficiency, detect and respond to water leakages, and minimize spoilage.
  • Industry disruptors: We’ve worked with innovative companies to rethink how traditional processes and industries work. SoilTech, for example, uses connected durable sensors to monitor crop growth in the field and food health during transit and storage. Traxen uses artificial intelligence and real-time data provided via the AT&T network to optimize trucking operations, improving fuel efficiency by 10%. GCP Applied Technologies uses AT&T connectivity to optimize cement delivery. And Badger Meter uses AT&T connectivity to actively monitor water infrastructure to prevent water leaks and reduce truck rolls. We also work with Third Derivative to identify leading startups that are developing climate-tech solutions that could benefit from AT&T connectivity expertise, so that we can support the scaling of new technology developments.
  • Research: We collaborate with and support academic researchers looking at new ways of enlisting 5G communications in emissions-reducing innovations. For example, Texas A&M University found that 5G-enabled electric vehicles can reduce battery consumption by 1.3%–1.9% during stop-and-go traffic. And Purdue University found that 5G can help optimize manufacturing equipment like air compressors, helping to save money and reduce energy waste and emissions.

For more information, please see the 2023 AT&T Gigaton Goal Progress Update.

Biodiversity

We believe conservation of natural resources and reducing carbon emissions are critical for building climate resilience throughout our operations and helping to reduce biodiversity loss. AT&T is committed to responsible network installation and maintenance, including working to reduce our impact on sensitive species and their habitats. We are committed to complying with applicable laws and regulations, including Federal Communications Commission (FCC) rules on environmental impact; the National Environmental Policy Act (NEPA), which is aimed at minimizing negative environmental effects on historical sites, Tribal lands, floodplains, wetlands and areas with endangered species; and the Endangered Species Act, which requires applicants, licensees and tower owners to consider the impact of proposed facilities on sensitive species and their habitats. When commissioning a new cell site, we use the FCC’s NEPA EA checklist to determine whether any proposed facility may affect listed, threatened or endangered species or designated critical habitats. We work to measure, mitigate and address direct environmental impacts through third-party environmental assessments where required.

As part of our overall climate strategy and commitments, we continue to partner with external organizations to increase our impacts. For example, in 2023, we partnered with local nonprofits like Texas Trees Foundation and Trees Atlanta to host tree-planting activities. Our employees planted 50 trees at Cummings Park in Dallas and 54 trees at the West End in Atlanta to increase tree canopy coverage. Areas were selected based on tree canopy coverage and other indicators of community need, including air quality and public health. This information helps cities and community partners plant trees where they are most needed. These sorts of engagements build on AT&T’s existing portfolio of programs committed to protecting natural resources, minimizing biodiversity loss and building climate resilience.

GHG Emissions Inventory⁸

In 2023, AT&T’s combined Scope 1 and market-based (MD) Scope 2 emissions decreased by 11.5% relative to 2022.³ Our Scope 3 emissions also reduced for 2023 when accounting for the addition of Category 15: Investments. 

Scope 1 (Direct) Emissions

Scope 1 (direct) emissions account for 4.2% of our total reported emissions and 15.2% of our total operational emissions.¹⁰ In 2023, we emitted 643,346⁸ MT CO₂e. This figure represents a 29.9% year-over-year decrease in Scope 1 emissions.³

Fleet

AT&T aims to reduce our fleet emissions, which currently account for 62% of our Scope 1 emissions, by at least 76% by 2035. Our approach: 

• Emissions Reduction: Through the end of 2023, our domestic fleet emissions decreased by 344,440 MT CO₂e, or nearly 46%, from our 2015 base year. This figure represents a year-over-year decrease of 75,360 MT CO₂e, or nearly 16% from 2022.³ The YoY reductions are largely a result of accounting for the biogenic emissions associated with consumption of gasoline, which contains ethanol. AT&T’s biogenic emissions for 2023 were 27,679 MT CO₂e. Over the next several years, we anticipate that our fleet vehicle count will increase as we continue to build out our fiber network. These vehicles will likely be heavier vehicles for which suitable electric vehicle (EV) alternatives do not yet exist. As such, we are preparing for emissions to grow in our fleet and are actively identifying additional options for Scope 1 emissions reductions.
• Collaboration: We are a member of the Corporate Electric Vehicle Alliance, which is a collaboration platform for companies to increase corporate demand for EVs and to identify challenges and opportunities for adding EVs to their fleets.
• Moving Forward: In 2023, AT&T deployed nearly 40 EVs. Additionally, we coordinated with sites on EV-related infrastructure deployment. Preparations for that infrastructure began in 2023 and will continue into 2024, with more site EV infrastructure expected in the future. 

Refrigerants

Refrigerants account for 9.5% of AT&T’s Scope 1 emissions.³ We have developed a database of AT&T refrigerant leak events for our large HVAC systems. We modified our methodology for refrigerant calculations to look at equipment actuals and more granular leakage factors. As a result, our 2023 emissions for refrigerants appear to have decreased dramatically. This decrease is from developing a more accurate accounting methodology and not actual emissions reductions.

Stationary Engines

16.9% 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.³ Stationary emissions may pose a challenge for AT&T’s GHG emissions goals in the future, because we must increase our use of generators to improve network reliability. We are currently evaluating opportunities to use fuel cells and other power generation options to reduce our reliance on fossil fuel backup generation. Due to challenges in capturing data, AT&T estimated fuel consumption for generators for the second half of 2023.

Scope 2 (Indirect) Emissions

Scope 2 (indirect) emissions account for 23.5% of our total reported emissions. AT&T reports market-based Scope 2 emissions in accordance with the Greenhouse Gas Protocol, enabling us to account for renewable electricity in our portfolio. 

• Overview: Scope 2 emissions (from purchased electricity and steam—CO₂, CH₄, N₂O) account for the majority of our total operational emissions (Scope 1 and 2—i.e., direct and indirect). Our market-based Scope 2 emissions were 3,585,008⁸ MT CO₂e and account for nearly 84.8% of our operational emissions and 23.5% of our total reported (Scope 1, 2 and 3) emissions. In 2023, our year-over-year market-based Scope 2 emissions footprint decreased by 7.1%.³
• Emissions Reduction Opportunities: 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 are also focused on purchasing renewable energy. The primary reduction in our Scope 2 emissions resulted from renewable energy and implementation of energy efficiency projects, including building optimization modifications, repairs such as HVAC upgrades, lighting retrofits and decommissioning of underutilized equipment. Additionally, we have decommissioned real estate assets, implemented network radio resource efficiency improvements, and engaged in Community Solar and Proof of Concept projects, among various other energy reduction projects. 
• AT&T has a team dedicated to identifying cost savings and emissions reduction opportunities. This team has identified several pilot projects it plans to test in 2024, including:
  • Onsite solar analysis across AT&T’s facility portfolio
  • Geothermal opportunities, where aligned with HVAC requirements
  • Tests of onsite wind generation on appropriate facility types
  • Experiments with heat-reducing materials on facility surfaces to reduce or eliminate HVAC loads

For more information about our energy programs, see our Energy Management issue brief.

Scope 3 (Other) Emissions

We are committed to addressing our Scope 3 emissions and pursuing our science-based reduction target. One way we are doing that is through working with our suppliers to set their own emissions reduction targets. In 2022, we met our Scope 3 reduction target two years ahead of schedule. By the end of 2023, 55% of our suppliers by spend had set their own science-based Scope 1 and Scope 2 emissions reduction targets. 

We report on Scope 3 emissions categories that are relevant to our business and in 2023 expanded our reporting to include investments. Our most relevant sources of Scope 3 emissions include:

Category 1: Purchased Goods and Services & Category 2: Capital Goods

Our Purchased Goods and Services and Capital Goods category emissions cover AT&T spend, excluding categories that are already addressed in other Scope 3 categories such as business travel and spend on energy. We evaluate our global spend and apply U.S. Environmental Protection Agency (EPA) Environmentally-Extended Input-Output (EEIO) emissions factors to that spend, to determine our Purchased Goods and Services category emissions and Capital Goods category emissions. We utilized supplier-specific emissions factors and life cycle assessment data when available from suppliers. In 2023, our year-over-year Category 1 and Category 2 emissions decreased 2.4 million MT CO₂e, or 27%, which was a result of reduced spend and utilizing supplier-specific emissions factors.

Category 3: Fuel and Energy-Related Activities

Our Fuel and Energy-Related Activities category emissions include an assessment of AT&T Scope 1 and 2 energy consumption. These emissions include upstream emissions from purchased fuels and electricity as well as transmission and distribution losses. In 2023, our Category 3 emissions decreased 496k MT CO₂e, or 31%. This was a result of updated guidance regarding AT&T’s use of renewable energy in Scope 2 electricity and changes in emissions factors.

Categories 4 & 9: Upstream and Downstream Transportation and Distribution

Our Upstream and Downstream Transportation and Distribution emissions include the transportation and distribution of AT&T products and services to and from AT&T locations. In 2023, we moved to distance-based calculations captured from data provided by our suppliers, and we also updated our 2022 methodology to be consistent with 2023. As a result, our Categories 4 and 9 emissions increased 4.9k MT CO₂e, or 2.8%.

Category 5: Waste Generated in Operations

AT&T waste generated includes corrugated containers, office paper, lumber, yard trimmings, mixed paper, mixed metals, mixed plastics, mixed recyclables, food waste, mixed organics, construction debris and mixed municipal solid waste. We utilize the EPA’s Emission Factors Hub to report emissions from several different waste management practices. Our 2023 Category 5 emissions increased by 138 MT CO₂e, or 0.2%.

Category 6: Business Travel

Our business-related travel includes air and rail travel, rental car use, rideshare and hotel spend. Business travel calculations are based on the following emission factors: U.K. Department for Environment, Food and Rural Affairs (DEFRA) (2020) for air travel, The Climate Registry (2020) for rental cars, and EPA Emission Factors Hub (Employee Commuting, 2020) and DEFRA (2020) for rail travel. Our 2023 Category 6 emissions decreased by 1.7k MT CO₂e, or 2.1%.

Category 7: Employee Commuting

Our Employee Commuting category emissions include AT&T employees. We evaluate employees’ status as in-office or virtual, then determine the average commute data through the Bureau of Transportation Statistics and Streetlight Commutes across the U.S. For non-U.S.-based employees, average U.S. data is assumed. In 2023, we included well to tank emissions as well as work from home emissions and therefore updated our 2022 methodology as well. As a result, in 2023, our Category 7 emissions decreased by 171 MT CO₂e, or 0.1%. 

Category 11: Use of Sold Products

Our Use of Sold Products category emissions include mobility devices that are sold or leased to customers. We evaluate the average device energy consumption over its average life on the AT&T network. In 2023, our Category 11 emissions decreased by 64.7k MT CO₂e, or 18.9%, which was a result of fewer products in the category consuming less energy.  

Category 13: 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 2. Leased Assets only include customer gateways. Total emissions from leased assets for 2023 decreased by 98.8k MT CO₂e, or 10.6%.³ The decrease in emissions is largely a result of AT&T including upstream emissions sources associated with customer energy consumption, updating 2022 methodology and including new emissions factors. Category 13 was not an assured category due to additional energy consuming assets not being fully accounted for.

Category 15: Investments

We track emissions related to equity investments as identified in Note 10 of our Annual Report. Equity investments for AT&T in 2023 primarily included DIRECTV, Gigapower, SKY Mexico and certain sports-related programming investments.¹³ Emissions were calculated using the average data method, as data from the covered organizations for the investment-specific method was not available. AT&T utilizes the EEIO category Satellite, Telecommunications Resellers and All Other Telecommunications as the appropriate emissions factor for the average data methodology calculation. Our 2023 Category 15 emissions were 1,741,695 MT CO₂e.

Stakeholder Engagement

We engage with internal and external experts to understand how we can best prepare for climate change and make more informed business decisions. When climate-related risks are identified or considered, they are evaluated in our company-wide enterprise risk management process. We also work with other companies, governments, nonprofits and academia to promote technology that tackles climate change and resource challenges. These collaborations include: 

• Center for Climate and Energy Solutions (C2ES): AT&T has supported C2ES’s new effort, in partnership with Resilience Rising and Resilience First, to develop a multistakeholder-led framework for business leadership on climate resilience. More specifically, we’ve participated in developing the guiding principles that reflect how companies can demonstrate leadership in advancing resilience to physical impacts of climate change. AT&T has also engaged with C2ES’s newly launched Climate Resilient Communities Accelerator, focusing on the North Front Range of Colorado.
• FEMA and Argonne National Laboratory: AT&T, FEMA and Argonne launched the ClimRR Portal, a free tool to help communities identify and address climate impacts. 
• Global eSustainability Initiative (GeSI): AT&T is a member of GeSI, which fosters open cooperation across international boundaries and promotes technologies bridging sustainable development. Through our participation in GeSI, AT&T is represented in projects and activities in the three primary focus areas of Climate Change, Supply Chain and Human Rights.
• Trellis Network: AT&T joined the Trellis Network, previously GreenBiz Executive Network, in 2023 and participates in various interest groups focused on Strategy, Circularity, Transportation and Logistics, and Carbon Markets.
• Interdependent Networked Community Resilience Modeling Environment (IN-CORE): AT&T supports IN-CORE, which provides expertise in community resilience, as we grow the userbase and awareness of the ClimRR portal.
• Third Derivative: Founded by the Rocky Mountain Institute (RMI) and New Energy Nexus, Third Derivative is an inclusive climate technology startup accelerator that rapidly finds, funds and scales climate tech innovation—including CCI participants’ cutting-edge emissions-reducing technologies—globally.
• University of Texas: AT&T and the Center for Water and the Environment (CWE) at the University of Texas at Austin are collaborating to explore how Texas and its first responders could use AT&T’s future flooding dataset to enhance their readiness and risk reduction efforts.
• We are also members of trade associations that support action on climate change, such as the Business Roundtable and the U.S. Chamber of Commerce. 
  
  

In 2024, we plan to identify and scale Smart Climate Solutions, build climate resilience, and build climate literacy in and outside our business. Among our plans:

• Continue to automate a greater portion of our emissions accounting while improving the reliability and accuracy of the data.
• Continue to work with FEMA and Argonne to build awareness and utilization of ClimRR, helping to improve America’s preparedness for future climate extremes. We will also continue to build out the capabilities of ClimRR by incorporating additional climate risks into the model.
• Continue to collaborate with others to bring more Smart Climate Solutions to market, especially in high-emissions areas such as energy, transportation and industrial applications.
• In December of 2023, we announced an agreement with Rivian Automotive to pilot Rivian electric vehicles in our fleet in 2024—one example of how we will continue to look for ways to reduce emissions from our operations.

• 2023 AT&T Gigaton Goal Progress Update
• 2023 Climate Leadership Awards
• 2023 R&D 100 Awards
• 2023 U.S. Chamber of Commerce Foundation Citizens Awards
• 2023 World Sustainability Awards
• Argonne National Laboratory
• AT&T CDP Disclosures
• AT&T Climate Strategy & Transition Plan
• AT&T Environmental Statement
• AT&T Proxy Statement
• AT&T Renewable Energy
• AT&T Smart Climate Solutions website
• Climate Risk & Resilience Portal
• Connected Climate Initiative and Gigaton Goal
• Corporate Electric Vehicle Alliance
• Federal Communications Commission NEPA EA checklist
• Federal Emergency Management Agency
• Global eSustainability Initiative
• Greenhouse Gas Protocol
• Idaho 2023 Hazard Mitigation Plan
• National Environmental Policy Act
• Science Based Targets initiative
• Trellis Network