Emissions and energy overview

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