The scope of both the financial and sustainability information includes all of the subsidiary companies listed in Appendix I of the Consolidated Financial Statements.

The scope of both the financial and sustainability information includes all of the subsidiary companies listed in Appendix I of the Consolidated Financial Statements.

This report includes, apart from information on the company’s own operations, the material impacts, risks, and opportunities associated with its value chain. This encompasses both the upstream and downstream stages, covering the direct and indirect business relationships of the entity. Information on the value chain is included based on the results of the double materiality assessment, limited to those parts of the value chain where sustainability issues are relevant.

Cellnex's due diligence process aligns with international frameworks, such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, ensuring a comprehensive approach to identifying, preventing, mitigating, and accounting for sustainability impacts across its operations and value chain. This process is embedded into the company's strategy, governance, and business model, as outlined in its sustainability statement.

Mapping of key aspects and steps of due diligence:

• Governance integration (ESRS 2 GOV-2, GOV-3): Cellnex ensures that sustainability matters, including due diligence outcomes, are incorporated into its decision-making processes. The Board of Directors and Senior Management oversee sustainability performance, as highlighted in Section 1.2 of the report.

• Interaction with strategy (ESRS 2 SBM-3): Sustainability risks and opportunities derived from the due diligence process are directly linked to the company's strategic priorities, such as transitioning to a carbon-neutral model and expanding digital infrastructure responsibly (see Section 1.3.2).

• Engagement with stakeholders (ESRS 2 SBM-2, GOV-2):

  • Stakeholder engagement: Cellnex engages with stakeholders through regular consultations and partnerships to inform its due diligence processes. These engagements focus on understanding the interests and concerns of communities, customers, and regulators, as described in Section 1.3.1.
  • Specific action: Initiatives such as the Cellnex Foundation’s Bridge Programme for social impact startups exemplify how stakeholder input is integrated into sustainability practices.

• Identifying and assessing negative impacts (ESRS 2 IRO-1, SBM-3):

  • Materiality assessment: Cellnex employs its double materiality assessment to identify and assess actual and potential negative impacts on people and on the environment. This process is detailed in Section 1.4.1, which outlines how risks are prioritised based on severity and likelihood.
  • Sector-specific risks: Risks that are specific to Cellnex’s telecommunications infrastructure, such as energy use and land impacts, are continuously evaluated to mitigate adverse effects on biodiversity and communities (see Section 2.3.2).

• Taking action to address negative impacts (ESRS 2 MDR-A, Topical ESRS):

  • Mitigation Actions: Cellnex’s mitigation actions include from updating policies to implementing initiatives to reduce environmental impacts, such as transitioning to renewable energy sources and setting science-based carbon reduction targets (see Sections 2.2.3 and 2.3).
  • Targeted interventions: Specific measures, such as deploying renewable energy projects and optimising land use through the Cellnadi initiative, demonstrate tangible progress in addressing identified impacts.

• Tracking effectiveness of efforts (ESRS 2 MDR-M, MDR-T):

  • Monitoring progress: Cellnex uses KPIs and dashboards to track the effectiveness of its due diligence actions. These metrics are disclosed in Sections 2.2.3 and 3.1.3, covering areas such as GHG emissions, biodiversity impacts, and workforce diversity.
  • Continuous improvement: Feedback loops from stakeholder engagement and performance reviews are used to refine and enhance the due diligence process (see Section 1.4).

Cellnex integrates due diligence into its governance, strategy, and operations, ensuring a systematic approach to managing sustainability impacts. By embedding the process into its materiality assessments, stakeholder engagement, and performance monitoring, Cellnex provides a transparent depiction of its practices in line with ESRS requirements.