Environmental stewardship

We are committed to reducing GHG emissions, recognising this as a vital and complex challenge. Our climate action journey follows a strategic and iterative approach, guided by milestones that help us to assess and manage our emissions, impacts, risks, and opportunities.

In 2023, we conducted our first comprehensive GHG accounting for the year 2022, which provided valuable insights for refining our approach. Building on this, we developed a GHG Inventory Management Plan for 2023, in alignment with the GHG Protocol, to enable robust and standardised reporting. This process of initial data collection and quality improvement enabled the 2023 figures to be used as a solid baseline for future emission calculations, initiatives, and actions.

In 2024, as part of our evolving sustainability strategy, we conducted a thorough assessment based on TCFD recommendations⁵ to identify and manage climate-related risks and opportunities. This process was pivotal in shaping our understanding of challenges and interdependencies, allowing us to set meaningful GHG reduction targets as part of our decarbonisation strategy. Going forward, our strategy is planned to increasingly leverage data-driven insights to guide decision-making, demonstrating our long-term commitment to transparent and accountable climate action for a sustainable future.

Based on the Swiss Ordinance on Climate Disclosures and TCFD recommendations, we analysed the risks and opportunities associated with climate change, evaluating their potential impact on our business model and overall operations.

The assessment was conducted using three different decarbonisation pathway scenarios,⁶ providing deeper insights into both the complexities and potential benefits of responsible climate stewardship. These scenarios highlighted key climate-related risks, including rising energy costs, shifting consumer demand, and increasing regulatory requirements. The findings indicate that SMG is well positioned to navigate these risks, supported by our diversified business model that demonstrates resilience across all scenarios. Further information on the identified climate-related risks, opportunities, and their impact on SMG, as well as applied methodologies, can be found in the Assessment of climate-related risks and opportunities section.

At SMG, we use metrics and targets to manage climate-related risks, seize opportunities, and track progress toward our sustainability goals.

In line with the Paris Agreement and Switzerland’s long-term climate strategy, our aim is to reduce Scope 1 and 2 emissions by 90% by 2030, using 2023 as the baseline. This target is informed by our direct emissions and operational insights, which help identify key emission sources and prioritise reduction measures, particularly around energy efficiency and infrastructure improvements.

For Scope 3 emissions, we are actively working to enhance our data collection processes to build a comprehensive understanding. This is intended to enable the development of long-term reduction strategies and lay the foundation for a future net-zero commitment.

Our calculations are based on the GHG Protocol to guide a robust and comprehensive approach. Further information on our standards, methodologies, and assumptions can be found in the Methodology and approach to emissions and energy calculation section.

Emissions key takeaways

In 2024, our GHG inventory amounted to 3,638 tCO₂e across all three scopes, reflecting a 14% decrease compared to 2023 (4,229 tCO₂e). Direct emissions (Scope 1) and emissions from purchased energy (Scope 2) represent only approximately 3% of total emissions, reflecting the inherently low operational footprint of a digital business.

Scope 1 includes direct emissions from fuel combustion in leased company vehicles and stationary equipment at office locations under our control, primarily for heating. Mobile combustion remains the largest emissions source in this category, as most of our office locations use electrically powered heating systems, specifically heat pumps. We reduced our Scope 1 emissions by approximately 45% compared to 2023, driven by the successful replacement of fossil fuel vehicles with electric ones as part of our ongoing fleet electrification.

Scope 2 includes indirect emissions from purchased energy generation, covering electricity, heating, cooling, and electricity consumption for leased electric vehicles. We reduced market-based Scope 2 emissions by 55% compared to the previous year, as we expanded the share of our operations powered by renewable electricity, securing contractual instruments for clean energy supply for additional office locations.

Scope 3 includes all other indirect emissions across our value chain and constitutes the largest portion of our carbon footprint. Purchased goods and services are the dominant contributor, accounting for 57% (1,997 tCO₂e) of Scope 3 emissions. This includes emissions associated with essential goods and services across our operations, such as software, hosting, advisory services, and office supplies. The largest contributions come from advisory and software-related services. Separately, approximately 120 tCO₂e are attributable to core IT services, primarily our hosting infrastructure (e.g. cloud computing, data centres) and selected key operational software tools.

Other significant sources for Scope 3 emissions include business travel, employee commuting, and the use of our digital platforms. Emissions from capital goods, such as office and IT equipment, and furniture, make office relocations a notable contributor.

We achieved a 12% decrease in Scope 3 emissions year-on-year, driven by a combination of reduced emissions from lower business travel activity and improved data quality in the purchased goods and services category, which enabled the correction of previous overestimations.

In line with the Science Based Targets initiative (SBTi) Net-Zero Standard, achieving net zero would ultimately require both reducing emissions by at least 90% and neutralising any residual emissions through the use of carbon credits. At present, SMG does not finance any GHG removals through carbon credits. Our current focus remains on reducing emissions within our direct control and active collaboration across our value chain. SMG does not apply an internal carbon pricing scheme.

Emissions breakdown and intensity

Energy key takeaways

In 2024, the majority of our energy consumption continued to stem from the operation of our office locations and our vehicle fleet. Our total energy profile is composed of several key sources that saw notable changes compared to 2023.

Fossil fuels accounted for 21% of our energy use, primarily for vehicle operations and stationary combustion for heating. This share decreased by 43% year-on-year, largely driven by our ongoing fleet electrification, which continues to reduce our reliance on fossil-based energy sources.

District heating also saw a notable reduction of 48% compared to the previous year. This was primarily due to office relocations and the transition to electric heating systems in Swiss locations.

Electricity consumption fell by 5%, despite the expansion of our electric vehicle fleet and the transition to electric heating systems. This reduction was achieved through strategic consolidation and relocation of office spaces, aimed at improving energy efficiency and reducing operational footprint.

Notably, 83% of our purchased electricity is sourced from certified renewable energy, supported by contractual documentation from either local electricity suppliers or our property managers. This reflects our sustained engagement and ongoing efforts to strengthen the traceability and verification of our renewable electricity procurement practices, in line with our energy and climate commitments.

Together, these efforts demonstrate meaningful progress in optimising our energy use, reducing reliance on fossil fuels, and expanding renewable energy coverage across our operations.

Energy consumption and intensity

Optimising IT infrastructure

As part of the ongoing optimisation of our IT infrastructure, which includes the integration of cloud-based solutions, we are also working to enhance energy efficiency and incorporate renewable energy where feasible. Emissions from our core hosting services remain low (57 tCO₂e), as they are located in facilities powered by renewable electricity or with low-carbon electricity grids.

Additionally, we actively engage with our providers to ensure our services are hosted in data centers powered by renewable electricity when feasible. Through this ongoing process, we aim to further improve the sustainability of our IT operations while maintaining the reliability and efficiency needed to support our business.

Renewable energy for offices

All of our Swiss offices are powered by renewable electricity.⁷ In areas where we directly manage electricity contracts, such as our rented office spaces, we have already secured the contractual proof and certificates. For shared areas within these buildings, we are actively engaging with the respective stakeholders to obtain documentation confirming renewable energy supply.

Internationally, we are also progressing in our renewable energy transition by actively exploring clean electricity solutions in markets with limited renewable availability or carbon-intensive grid mixes. These efforts reflect our ongoing commitment to reducing Scope 2 emissions across locations.

Setting the benchmark for sustainable site selection: Bluefactory office, Fribourg, Switzerland

The relocation of our Flamatt office to the Bluefactory in Fribourg highlights how sustainability criteria guide our site selection process. Certified to Minergie standards, the building minimises its carbon footprint by running entirely on renewable energy for daily electricity needs and incorporating innovative water management systems. Advanced solutions, such as wastewater treatment to extend its lifecycle and rainwater harvesting for reuse in various applications, including cleaning public spaces, further enhance its sustainability.

With the relocation, we also prioritised a more efficient office layout, enabling us to reduce our occupied floorspace by more than half, while ensuring we maintain a quality environment for our employees. This optimised use of space lowers overall energy demand and reduces the energy intensity of our operations.

These measures showcase how environmental considerations are embedded into the design and functionality of our offices, aligning with SMG’s broader environmental goals.

Mobility

SMG’s vehicle fleet accounts for the vast majority of our Scope 1 emissions, while employee commuting (Scope 3) also contributes to the overall carbon footprint. To mitigate these impacts, we are systematically transitioning our fleet to electric vehicles (EVs) as existing leasing contracts come to an end. This transformation is on track for completion in the short term and represents a key step in reducing emissions from mobile combustion.

Supplier engagement

Effectively addressing wider Scope 3 emissions begins with gaining a comprehensive understanding of our value chain. Therefore, we developed a supplier-specific emissions survey in 2024 to enhance data accuracy and completeness. The insights gathered represent an important first step in shaping effective emissions reduction strategies and supporting our broader sustainability efforts.

For our 2024 data, we engaged with a number of our most relevant suppliers, prioritising high-quality insights to refine the process for future reporting periods. The upcoming broader rollout will gradually include additional suppliers, fostering meaningful collaboration, and building a comprehensive understanding of our value chain’s emissions profile. By collecting GHG emissions data from our suppliers, we aim to improve data quality, identify targeted reduction opportunities, and strengthen Scope 3 emissions management, ultimately contributing to our broader sustainability goals.

Our General Marketplaces promote sustainability by extending the lifecycle of used goods, thus reducing waste and lowering the demand for new resources. Driven by growing consumer demand, evolving business opportunities, and new legislative requirements, the traditional linear economy is shifting. Circular products and services are becoming more relevant, offering both environmental and economic benefits. By facilitating the trade of second-hand and refurbished items, our platforms enable consumers to save costs while allowing sellers to generate income. Over the past 25 years, Ricardo has facilitated the exchange of more than 110 million objects, thereby contributing to a lower environmental footprint, based on estimations that assume these items would have otherwise been discarded and replaced with new products. In doing so, our marketplaces play an active role in driving the transition to a low-carbon economy and encouraging large-scale adoption of sustainable consumption habits.

The circular approach strengthens SMG, benefits the environment, and aligns with the values of partners who appreciate our impactful business model. The ratio between used and new items sold on Ricardo has remained stable at 70/30 (used/new) in both 2023 and 2024. In 2024 alone, over 4 million second-hand items were sold through the platform, accounting for 76% of Ricardo’s total product revenue. This high volume of second-hand transactions translates into a measurable climate impact. Across all General Marketplace platforms, the total net avoided emissions in 2024 amounted to 71,438 tonnes of CO₂. This figure reflects the net climate benefit of re-commerce, capturing the difference between emissions avoided when second-hand purchases replace the need for new products, and the emissions generated by deliveries, packaging, and platform operations that enable those transactions.

For further details on the methodology, please refer to the Methodology for net avoided emissions section.

Our circular economy solutions in action

A prime example of our commitment to promoting a circular economy is the Secondhand Day, an annual nationwide event in Switzerland that encourages consumers to rethink their purchasing habits and opt for second-hand goods. Initiated by Ricardo in 2020 in collaboration with Circular Economy Switzerland and myclimate, the event has grown into a vibrant platform for sustainable shopping. By facilitating and promoting Secondhand Day, we not only raise awareness about the importance of the circular economy but also provide tangible opportunities for consumers to participate in responsible consumption.

This initiative supports our mission to make second-hand the preferred choice, thereby advancing the circular economy, reducing waste, and promoting conscious purchasing habits.

To further support our users and scale the impact of circularity, we continuously invest in enhancing convenience, based on user feedback, to ensure seamless experiences. In 2024, we introduced Ricardo AI, leveraging artificial intelligence to simplify both the buying and selling processes on our platform Ricardo. For buyers, Ricardo AI allows users to upload or capture photos of desired items, such as clothing or accessories, and swiftly identifies identical or similar products available. This feature streamlines the search process, making it more intuitive and efficient while encouraging the purchase of second-hand items by making them more accessible. For sellers, Ricardo AI analyses uploaded images of items intended for sale, suggests market-appropriate pricing, and generates optimised titles and descriptions for listings. This automation reduces the effort required to create effective listings, lowering the barriers for individuals to resell items.

By facilitating easier listing and discovery of second-hand items, Ricardo AI actively contributes to extending product lifecycles and reducing waste, key components of a circular economy.

Ricardo POP UP: Bringing sustainable fashion to life

Ricardo contributes to the sustainable fashion movement with its annual pop-up stand at one of the biggest Swiss annual music festivals, Zürich Openair. In 2024, the third year since the founding of Ricardo POP UP, we transformed the festival experience by showcasing collections of second-hand items inspiring fashion-forward festival-visitors to shop sustainably.

Every item at the Ricardo stand was donated by employees, with proceeds supporting Fashion Revolution. Other stands featured Ricardo’s top sellers alongside second-hand stores, such as Maroni Vintage and Rework, giving visitors ample options for creating standout, sustainable festival looks.

Beyond that, Ricardo has taken its commitment to sustainable fashion a step further by collaborating with Projekt Restwert/Plusvalue in a permanent pop-up shop in Lausanne. Located in the heart of the city, this year-round hub for preloved fashion showcases a carefully curated selection of second-hand and vintage items. It also provides a space for local second-hand sellers to connect with conscious consumers, fostering a vibrant community centred on sustainability.

Our platforms AutoScout24 and MotoScout24 drive circularity by facilitating the resale of pre-owned vehicles in Switzerland. This can contribute to extending the useful life of vehicles and potentially reducing waste and resource use, compared to new vehicle production. Resold vehicles benefit from Switzerland’s stringent maintenance requirements and mandatory vehicle inspections, ensuring consistent performance and emissions compliance while extending the lifecycle of the vehicles. In 2024, approximately 80% of listings on our Automotive platforms were for pre-owned vehicles, a strong proxy for the proportion of sales in this business unit, supporting more sustainable consumption patterns.

A further example of our commitment to circularity is the renovation of our Zurich office space (Maintower). By prioritising waste minimisation and functionality, we have embedded circularity into the very fabric of our workplace design, including the reuse of furnishings, optimising energy efficiency, and partnering with sustainable suppliers.

Similarly, as detailed in the Key initiatives, targets, and metrics section, the relocation of our Flamatt office to the Bluefactory in Fribourg reflects circular principles in action. The site’s design incorporates innovative water management systems and lifecycle-extending solutions such as wastewater treatment and rainwater harvesting, reducing resource consumption and waste.

According to the Federal Office for the Environment (FOEN), the real estate sector accounts for approximately 22% of total GHG emissions in Switzerland, primarily driven by energy consumption in buildings. Decarbonising this sector is crucial for achieving the national climate targets. IAZI equips clients with services and tools that support data-driven, emissions-related decision-making, enabling actions that align with reduction goals and driving meaningful progress within the sector.

IAZI’s energy and CO₂ calculator and investment calculator allow clients to assess the energy consumption and CO₂ emissions of buildings, giving insights into current energy performance as well as future renovation needs. These tools enable real estate agents to provide clients with a data-driven assessment of a property’s energy profile, even without an official energy certificate (CBEC).

IAZI also provides property assessment, evaluation, and benchmarking services for asset managers and banks. With this range of offerings, clients gain insights into energy labels, usage patterns, and potential short- and medium-term renovation needs that can enhance property value. IAZI’s assessments deliver valuable sustainability metrics to support informed and responsible investment decisions.

The evaluation model has already been applied to over 800,000 properties across Switzerland, with a strong focus on energy efficiency and emissions. In addition, IAZI supports clients with emissions management services, facilitating the monitoring of property-related emissions. The resulting insights enable actions like the issuance of green bonds and the financing of environmentally friendly projects.

Our Real Estate business offers several service packages which include IAZI’s advanced tools, making sustainability solutions more accessible. As part of our ongoing efforts, we are developing new versions for third-party use, enabling our partners to assist their clients in optimising and reducing CO₂ emissions, further advancing sustainability across the real estate sector.

SMG combines innovative tools with targeted education to foster sustainability in various sectors.

IAZI’s independent e-learning programme, Sustainability for Real Estate, offers a compact and digital education solution. The course equips participants, ranging from customers and mortgage advisors to individuals simply interested in real estate sustainability, with knowledge on energy efficiency and optimal renovation planning.

On our platform Homegate, we complement these efforts with the Sustainability Advisor page, a comprehensive resource filled with information to help users make environmentally conscious choices for their homes.

We also highlight the natural synergies between the real estate and automotive industries. For example, we promote the use of solar power from rooftop installations to charge EVs. Through our collaboration with the Swiss Federal Office of Energy (BfE) on the “Drive with Solar Power” campaign, we empower users to connect sustainable property management with eco-friendly mobility.

Simultaneously, the new AutoScout24 EV Hub simplifies the world of electric mobility by offering a range of features and guidance. Providing the right support is essential in this rapidly evolving market, including international regulations mandating zero CO₂e emissions for new cars by 2035.

Between March and December 2024, the EV Hub registered over 190,000 visits, underscoring market interest in electric mobility. Features of the EV Hub include an electric mobility guide that offers practical advice for navigating the EV market, along with a cost calculator to estimate expenses associated with EV ownership. A range calculator helps determine driving distances based on user preferences, and an interactive map provides detailed information about Swiss charging station locations. The platform further features informative articles and allows users to search for EVs by battery capacity and range. Additionally, an AI chatbot provides personalised guidance. Overall, the EV Hub is designed to boost user confidence in electric vehicles and ultimately, increase purchases.

In 2024, more than 59,000 all-electric vehicles were listed on our marketplaces, showing a 19% increase from the previous year. Listings for plug-in hybrids and full hybrids also rose by 18% and 27%, respectively, while mild hybrid listings saw the most significant growth, up 37%.

For many consumers, selling EVs is part of a natural progression, such as upgrading to newer models with improved range or advanced features. As more than 50% of all-electric vehicles on the market are used vehicles, the role of second-hand transactions is increasingly material in extending the lifecycle of EVs. As innovation accelerates across the sector, our platforms play a key role in supporting these transitions with sustainable choices embedded throughout the vehicle lifecycle.

We understand the increasing presence of EVs on our platforms as a signal of a maturing market in which electric mobility is becoming more mainstream. By supporting a thriving second-hand EV market, we enable budget-conscious consumers to join the shift to sustainable mobility, further accelerating the adoption of low-emission vehicles across society.