Sustainability Report / 2024

Demonstrating environmental responsibility, Uzbektelecom JSC monitors greenhouse gas emissions, striving to reduce its carbon footprint and improve energy efficiency. The company keeps records of direct and indirect emissions, as well as their intensity relative to revenue, analyzing trends over three years to assess the effectiveness of measures and plan further actions to reduce its environmental impact.

Methodology

Greenhouse gas emissions assessment (Scope 1)

Determining greenhouse gas (GHG) emissions is a key element in minimizing the Company’s environmental impact. The assessment is based on Uzbekistan legislation, international standards, and the IPCC methodology (2006).².

² Chapter 2: Stationary Combustion, available at: Microsoft Word — V2_Ch2_Stationary_Combustion_Final.doc (iges.or.jp).

Scope 1 emission categories:

Stationary fuel combustion

emissions from boilers, furnaces, turbines, and other equipment used for energy production.

Transportation

emissions from corporate transportation (trucks, trains, ships, aircraft, cars).

GHG emissions from the use of refrigerants

(leaks in the organization’s air conditioning system during the reporting period).

The calculation methodology uses fuel calorific values and standardized emission factors. Data on fuel consumption and refrigerant leaks are partially unavailable, which limits the completeness of the calculations.

Principles for assessing indirect emissions (Scope 2)

Scope 2 covers indirect greenhouse gas (GHG) emissions associated with energy consumption (electricity, heat, steam, cooling). These emissions must be accounted for in accordance with the international standard of the GHG Protocol³.

³ GHG Protocol Scope 2 Guidance, available at: Scope 2 Guidance | GHG Protocol.

Calculation methodology

Emissions are estimated based on average regional emission intensity factors, taking into account energy consumption. Due to the lack of data for 2023, the 2020 factors were used. Data from the International Energy Agency for 2022 was used for the calculations.

In 2024, there was a significant increase in indirect emissions (related to electricity) to 114,449 t CO₂eq, which is 25.7% higher than in 2023 (90,979 t CO₂eq). The increase in emissions was due to higher electricity consumption required for network development and infrastructure modernization.

During the reporting period, the Company did not use biomass or other biogenic materials in its operations. All sources of direct emissions (Scope 1), including diesel generators, service vehicles, and cooling systems, are based on the use of fossil fuels or industrial gases.

Thus, biogenic CO₂ emissions, converted to CO₂ equivalents, amount to 0 metric tons.

Indirect energy-related greenhouse gas emissions (Scope 2), t CO₂-eq.

GRI 305-2

Total indirect greenhouse gas emissions (Scope 2) for the Company

Direct greenhouse gas emissions (Scope 1)

GRI 305-1

Total for the Company, тыс. tCO₂ -eq.

Indicator	Unit	2022*	2023	2024*
Carbon dioxide (CO₂)	tCO₂ -eq.	13,661	9,789	20,907
Methane (CH₄)	tCO₂ -eq.	224	181	224
Nitrous oxide (N₂O)	tCO₂ -eq.	156	102	163

*Data on GHG emissions from CFCs for 2022-2024 are included in GHG emissions in the carbon dioxide category in tCO₂-eq. Refrigerant losses are 10% of the total volume.

Specific greenhouse gas emissions (carbon intensity of production) for 2022-2024

GRI 305-1

Total GHG emissions (Scope 1 and 2), tCO₂ -eq.

Indicator	Unit	2022	2023	2024*
Specific greenhouse gas emissions (Scope 1 and 2)	tCO₂ -eq / billion sum	15.5	13.4	15.6
Revenue	billion sum	6,220	7,548	8,712

Ozone depletion potential is a relative property of a substance, such as a refrigerant used to fill industrial refrigeration equipment. This indicator is assessed based on its molecular structure. The more chlorine and bromine components a molecule contains, the higher the ODP value. Ozone depletion potential is a measure of how much damage a chemical can cause to the ozone layer compared to an equivalent mass of trichlorofluoromethane (CFC-11). CFC-11, which has an ozone depletion potential of 1.0, is used as a baseline for measuring ozone depletion potential.

Fluorine and chlorine compounds are more active, so their interaction with the Earth’s ozone layer leads to accelerated destruction of the protective layer. of the range of refrigerants used by the Company in 2022-2024, only R-22 and HCFC-22 have a low ozone-depleting potential, while the other refrigerants used have zero ozone-depleting potential.

Ozone depletion potential (ODP) was a very important criterion in the formation of the Montreal Protocol and its amendments. ODP values are used to compare the relative ability of different ODSs to destroy stratospheric ozone. ODP is defined as «the total change in total ozone per unit of mass emission of a particular ozone-depleting substance relative to the total change.

The ozone-depleting potential varies over different time horizons: in this assessment, an ODP horizon of 100 years was used. The total ODP of a substance is determined by multiplying the amount of that substance released into the atmosphere by the ozone depletion potential of that substance.

Ozone-depleting potential of refrigerants

GRI 305-6

Freon brand	Freon leakage volume for 2022, kg	Freon leakage volume for 2023, kg	Freon leakage volume for 2024, kg	Ozone depletion potential for 2022	Ozone depletion potential in 2023	Ozone depletion potential 2024	2022 ODP, tons	2023 ODP, tons	2024 ODP, tons
R-410А	41.07	51.93	68.99	0	0	0	0	0	0
R-407c	0.00	15.82	24.23	0	0	0	0	0	0
R-22	40.05	41.64	35.51	0.055	0.055	0.055	0.0022	0.0023	0.0020
R-134A	8.14	25.32	13.68	0	0	0	0	0	0
R-600A	2.60	2.50	0.00	0	0	0	0	0	0
R-32A	5.00	3.80	0.00	0	0	0	0	0	0
R-404	2.18	4.11	1.54	0	0	0	0	0	0
HCFC-22	8.16	0.00	0.00	0.055	0.055	0.055	0.0004	0	0
Total ozone-depleting potential for 2022-2024 from the use of CFCs							0.0027	0.0023	0.0020

The company strives to replace CFCs with non-ozone-depleting alternatives, despite the presence of leaks of CFCs R-410A, R-407c, R-134A, R-600A, R-32, and R-404, their total volume is relatively small and less environmentally hazardous in terms of negative impact potential. at the same time, the main contribution to ozone depletion potential is made by R-22, which the company plans to phase out gradually.

Water Consumption

Uzbektelecom JSC demonstrates a responsible approach to water resource management, purposefully reducing its use in its daily activities and production cycles.

Uzbektelecom JSC interacts with water resources mainly through centralized water supply systems used for domestic and technical needs at administrative and production facilities. Wastewater is discharged into municipal sewerage systems in accordance with existing agreements. The impact on water resources is minimal, as the organization does not engage in water-intensive production.

To achieve maximum efficiency in water use, Uzbektelecom JSC applies a comprehensive set of measures, including:

Systematic control and accounting

The company conducts strict and regular monitoring of water consumption at all its facilities.

Introduction of advanced technologies

Uzbektelecom JSC actively invests in water-saving solutions, such as modern, economical plumbing fixtures, to optimize water use.

Proactive loss prevention

The company pays great attention to the timely maintenance and repair of water supply networks, as well as the replacement of outdated equipment to minimize leaks.

Cultivating a culture of conservation

Uzbektelecom JSC implements awareness programs among its employees aimed at fostering a responsible attitude toward water consumption.

The Company’s commitment to sustainable development is reflected in its strict compliance with the laws and regulations of the Republic of Uzbekistan in the field of water use, including key laws such as the Water and Water Use Law and the Nature Protection Law, as well as sanitary and hygienic standards.

Between 2022 and 2024, there was a decrease in the total volume of water withdrawn. The company’s total water withdrawal decreased by 21.9% from 386,000 m³ in 2023 to 301,000 m³ in 2024. Total water withdrawal in regions with water shortages also decreased by 25.2% from 330 thousand m³ in 2023 to 247 thousand m³ in 2024. All water withdrawn, both in total and in regions with water shortages, comes from third-party organizations (municipal).

Total water withdrawal by source for 2022-2024, thousand m³

GRI 303-3

Total water withdrawal by the Company

Indicator	2022	2023	2024
Surface water, including rainwater	0	0	0
groundwater	0	0	0
seas and oceans	0	0	0
industrial water	0	0	0
water from third parties (municipal)	411	386	301

Total volume of water withdrawn in water-deficient regions

Indicator	2022	2023	2024
Surface water, including rainwater	0	0	0
groundwater	0	0	0
seas and oceans	0	0	0
industrial water	0	0	0
water from third parties (municipal)	358	330	247

Water discharge indicators also decreased. The total volume of discharges for the company decreased by 24.2% from 351 thousand m³ in 2023 to 266 thousand m³ in 2024. The entire volume of discharges also accounts for water from third-party organizations (municipal).

Total water discharge for 2022-2024, thousand m³

GRI 303-4

Indicator	2022	2023	2024
Total emissions for the Company	351	351	266
Surface water, including rainwater	0	0	0
groundwater	0	0	0
seas and oceans	0	0	0
industrial water	0	0	0
water from third parties (municipal)	351	351	266
Total volume of water withdrawn in water-deficient regions	330	318	230

Total water consumption decreased by 2.8% from 36,000 m³ in 2023 to 35,000 m³ in 2024. in regions with water shortages, water consumption, on the contrary, increased by 41.7% (from 12,000 m³ in 2023 to 17,000 m³ in 2024).

Total water consumption for 2022-2024, thousand m³

GRI 303-5

Total water consumption

Total water consumption in regions with water shortages

According to the WWF Water Risk Filter classification , based on water consumption and renewability indicators, most regions of Uzbekistan are in the «extreme water stress» zone (baseline water stress >80%).

Regions with water shortages where the company’s branches are located:

Navoi region (7),
Bukhara region (3),
Surkhandarya region (11),
Samarkand region (9)
Jizzakh region (5)
Сырьдарьинская область (10)
Tashkent region (12)
Fergana region (4)

Waste management

GRI 306-1

In the course of its activities, Uzbektelecom JSC faces the generation of waste in the form of obsolete telecommunications equipment. These devices, consisting of metals, plastics, and glass, are classified as low-hazard waste (class 4) in accordance with Uzbekistan’s sanitary standards (Sanitary and epidemiological regulations № 0127–02) due to the inertness of their components.

The processes for writing off and disposing of such equipment are strictly regulated by legislation, including:

Order of the Ministry of Finance №-101 dated 2004, which defines the procedure for writing off fixed assets, including technological equipment.
Order of the Agency for Post and Telecommunications (now the Ministry of Digital Technologies) №-40 dated 2002, establishing rules for the dismantling and disposal of equipment in the telecommunications industry.

In accordance with applicable regulatory documents, including:

The Law «On Nature Protection» in relation to waste management
Decree of the President of the Republic of Uzbekistan №-5 dated January 4, 2024, «On measures to improve the waste management system and reduce its negative impact on the environment».
Resolution of the Cabinet of Ministers № 606 dated October 7, 2019, «On measures to improve the waste management system».

The company applies the following approaches to the disposal of decommissioned equipment:

All decommissioned equipment is subject to mandatory dismantling.
A working commission evaluates the components, and parts suitable for further use may be returned to service.
Equipment that cannot be restored is transferred to specialized organizations for disposal:

Uzvtortzmet JSC is engaged in the procurement and processing of non-ferrous metals.
The Vtorchermet division of Uzmetkombinat JSC is responsible for the collection and processing of ferrous scrap metal.

In addition, new equipment is installed only after approval by the sanitary services, which carry out the necessary measurements and issue sanitary certificates.

Uzbektelecom JSC strictly complies with all established requirements, striving to minimize its impact on the environment and ensuring responsible management of waste generated. This approach demonstrates the Company’s commitment to the principles of environmental safety and sustainable development in the telecommunications sector of Uzbekistan.

Between 2022 and 2024, there was a decrease in the amount of non-hazardous waste generated. in 2024, the volume of non-hazardous waste amounted to 2 749 tons, which is 39.2% less than in 2023 (4 524 tons).

To ensure transparency and compliance with national regulations in the calculation of generated waste volumes, the Company adheres to Resolution No. 95 of the Cabinet of Ministers of the Republic of Uzbekistan, dated February 6, 2019, which stipulates that municipal solid waste (MSW) must be accounted for in cubic meters (m³).

However, for the purposes of ESG reporting and assessing environmental impact, data must also be presented in metric tons (t). Since the density of waste may vary depending on region, climatic conditions, and seasonality, a standardized average conversion factor was applied for consistency. The adopted conversion factor for mixed waste is:

0.445 t/m³, which represents the average indicative density of municipal solid waste recommended for such calculations.

The use of this averaged coefficient (0.445 t/m³) ensures data comparability across different sites and regions and improves the accuracy of trend analysis over time. Where necessary, this coefficient may be adjusted to reflect specific waste compositions or more precise regional data provided by authorized bodies.

Waste generated by type, tons

GRI 306-3

Indicator	2022	2023	2024
Hazardous waste	0	0	0
Non-hazardous waste	5,173	4,524	2,749

A similar trend can be observed with regard to the disposal of non-hazardous waste. The total volume of non-hazardous waste disposed of in 2024 amounted to 107 tons, which is 33.0% less than in 2023 (160 tons). All non-hazardous waste disposed of falls under the category «Other disposal operations”. There is no preparation for reuse or reuse.

Total volume of non-hazardous waste disposed of, tons

GRI 306-4

Indicator	2022	2023	2024
Non-hazardous waste:	180	160	107
Preparation for reuse	0	0	0
Reuse	0	0	0
Other disposal operations	180	160	107

TC-TL-440a.1

In the activities of JSC Uzbektelecom JSC, the main type of waste generated that is subject to collection and delivery for recycling is scrap and waste of non-ferrous metals. These wastes are categorized into the following types: copper, aluminum, and other non-ferrous metals.

At the end of 2024, the total volume of non-ferrous metal waste collected and sent for recycling by the Company as a whole amounted to:

Total volume:

271.617

tons

Copper:

86.842

tons

Aluminum:

53.635

tons

Other non-ferrous metals:

131.140

tons

All information on the volumes collected is based on actual data on the delivery of materials.

Environmental Protection (Emissions, Water Use, Waste Management)

Methodology

Greenhouse gas emissions assessment (Scope 1)

Principles for assessing indirect emissions (Scope 2)

Calculation methodology

Water Consumption

Waste management