Methodology and approach to emissions and energy calculation

Our emissions calculation methodology applies the “Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition” (GHG Protocol), supplemented by the “Corporate Value Chain (Scope 3) Accounting and Reporting Standard.”

Emission factors

For our GHG calculations, we utilise emission factors derived from established and authoritative sources. These include Ecoinvent, Exiobase, IEA, AIB, DEFRA/BEIS, NTM, governmental bodies (EU and Swiss-based among others), including those at the EU and Swiss national levels. To determine our total emissions, we multiply the relevant emission factors by the best available and most appropriate data for each activity or source.

Data sources and assumptions

GHG inventory

SMG’s GHG inventory is based on a combination of primary and secondary data. Where activity-based data was unavailable, secondary data including spend-based estimations, industry-average emissions factors, and extrapolations from similar operations or locations was used. This reliance on secondary data introduces an additional level of uncertainty in the input data and emission factors used for the calculations.

Our calculated GHG emissions are subject to inherent scientific measurement uncertainties associated with the methodologies used to estimate emissions. These uncertainties arise from the mathematical models applied to represent relationships between various parameters and emission processes.

The calculated carbon dioxide equivalent (CO₂e) emissions are inclusive of carbon dioxide (CO₂), nitrous oxide (N2O), and methane (CH4). The other GHG gases sulphur hexafluoride (SF6), perfluorocarbons (PFCs), and nitrogen trifluoride (NF3) are not emitted.

Emissions of non-CO₂ GHGs have been converted to CO₂e using the conversion factors from the IPCC's Fourth and Fifth Assessment Reports.

Outside of Scopes 1, 2, and 3

Biogenic CO₂ emissions from biogas combustion are excluded from our Scope 1 emissions in line with the GHG Protocol. These amounted to approximately 0.8 tCO₂e in 2024 and 0.9 tCO₂e in 2023.

Energy consumption

We collect and report primary activity-based data to calculate our total energy consumption across all operations. Where such data was not available, estimations were made through extrapolation from comparable sites or activities to ensure a complete and as representative dataset as possible.

In Switzerland, energy consumption benefits from a high share of renewable sources. Our office locations in Switzerland fall under the national electricity disclosure regime, which ensures transparency around the origin of electricity. For each Swiss site, we hold contractual proof from electricity suppliers specifying the renewable energy mix associated with the electricity we purchase. These disclosures are legally supported by Guarantees of Origin (Herkunftsnachweise, HKN), issued and tracked through the Pronovo system in accordance with the Swiss Energy Ordinance. For our international operations, where we validated the renewable nature of purchased electricity we relied on Guarantees of Origin, ensuring traceability and transparency in our reporting.

Organisational boundaries

Our organisational boundaries are defined to ensure a focused and material approach to GHG accounting. All relevant subsidiaries, activities, and units under operational control of our company are included.

For the reporting periods of 2023 and 2024, a limited number of locations were excluded from the GHG inventory. These were small or low-occupancy offices and non-operational sites, each characterised by minimal use (typically fewer than 10 employees, often only one on-site daily).

These exclusions were made due to limited operational significance. For 2024, their combined contribution to total emissions is less than 0.5% of total emissions, based on conservative modelling. As such, they are not expected to affect the completeness or representativeness of the reported emissions.

These exclusions support a GHG inventory that remains focused on material sources of emissions, aligned with our organisational boundaries and operational realities. This approach helps maintain the integrity, accuracy, and relevance of our sustainability reporting.

Operational boundaries

The applicability of Scope 3 categories has been assessed in alignment with SMG’s business model. As a digital company, we offer transactional and advertising services through our online platforms. SMG does not manufacture or sell the products exchanged on its platforms but instead acts as a facilitator.

As a result, only the following Scope 3 categories have been included due to their relevance to SMG’s operations:

• Category 1 Purchased Goods and Services: Emissions from the most relevant expenditure areas, such as external data centres, office supplies, water use, and other key professional services across our operations, such as software, hosting, and advisory services.²⁵ The calculation is primarily spend-based, except for tap water, which is calculated by volume, and for several external suppliers and external data centres, where emissions are based on supplier-specific data or data volume usage.
• Category 2 Capital Goods: Emissions from the purchase of tangible assets. The calculation is partly spend-based and partly based on average data and follows a category-based approach, using emission factors assigned to specific types of goods.
• Category 3 Fuel- and Energy-Related Activities: Emissions from upstream activities associated with the production and transmission of purchased fuels and energy (not included in Scope 1 and 2) fall under this category.
• Category 5 Waste Generated in Operations: Emissions from company waste are calculated based on the volume of waste generated at office locations and the associated waste treatment methods for its disposal.
• Category 6 Business Travel: Emissions from business travel are calculated based on distance traveled per passenger across various transportation modes, hotel stays, and pre-calculated emissions data provided by our travel management platform and other relevant suppliers.
• Category 7 Employee Commuting: Emissions from employee commuting are calculated using 2024 group-wide survey data on commuting habits and estimated distance traveled by transportation mode.
• Category 11 Use of Sold Products: Emissions from the use of our sold products are estimated based on user interaction with our platforms, calculated using average usage time and the associated energy consumption.

Significant changes from 2023 to 2024

In line with our commitment to continuously improving data quality, we regularly review the scope of our assessments and the relevance of emission categories. As part of ongoing efforts to refine environmental reporting, we account for changes due to acquisitions, adjustments to the scope of application, and updated emission factors.

We have established 2023 as our base year for GHG emissions. Organisational boundaries and methodologies have been applied consistently to both 2023 and 2024 to enable comparability over time.

As part of the development of our first GHG inventory, emissions data for 2023 was refined to reflect the inclusion of newly acquired entities and methodological improvements. These adjustments were made prior to publication and are reflected consistently across both reporting years.

While methodologies have been largely consistent, the following updates were introduced in 2024:

• Emission factors were updated in 2024 to reflect more accurate or recent data sources.
• Activity data was refined through improved reporting methods, resulting in increased accuracy.