Methodology and Approach to Emissions and Energy Calculation

SMG calculates its greenhouse gas (GHG) emissions in accordance with the “Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition” (GHG Protocol) and the “Corporate Value Chain (Scope 3) Accounting and Reporting Standard.”

Emission Factors

In calculating GHG emissions, SMG uses emission factors from established and authoritative sources, including Ecoinvent, Exiobase, the International Energy Agency (IEA), the Association of Issuing Bodies (AIB), the UK Department for Environment, Food & Rural Affairs (DEFRA/BEIS), the Network for Transport Measures (NTM), and governmental bodies, including those at the European Union and Swiss national levels. Total greenhouse gas emissions are calculated by applying relevant emission factors to the most appropriate, available activity data for each emission source.

Data Sources and Assumptions

GHG Inventory

The emissions inventory is based on a combination of primary and secondary data. In the absence of activity-based data unavailable, secondary data is used, including spend-based data, industry-average emissions factors, and extrapolations from comparable operations, locations, or historical data. The use of secondary data introduces additional uncertainty in both activity data and emission factors applied in the calculation of emissions.

Calculated emissions are subject to inherent scientific uncertainty associated with emissions accounting methodology, arising from the use of mathematical models that represent complex relationships between activity data, emission factors, and emission process and other relevant parameters. As a result, emissions represent best available estimates based on current methodologies and data sources.

Calculated emissions are expressed in carbon dioxide equivalent (CO2e) and include carbon dioxide (CO2), nitrous oxide (N2O), and methane (CH4). Other GHG gases, including sulphur hexafluoride (SF6), perfluorocarbons (PFCs), and nitrogen trifluoride (NF3) are not emitted. Emissions of gases other than carbon dioxide are converted to CO2e using the global warming potential 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. There were no biogenic emissions in the current reporting year.

Energy Consumption

SMG collects and reports primary activity data to calculate total energy consumption within the organisation. In the absence of this data, it uses estimates based on extrapolations from comparable sites, activities, or historical values to ensure a complete and as representative dataset as possible.

A high degree of the energy consumed in Switzerland comes from renewable sources. Office locations in Switzerland are subject to the national electricity disclosure regime. For each Swiss site, contractual evidence from electricity suppliers specifies the renewable energy mix associated with the electricity purchased. These disclosures are legally substantiated by guarantees of origin (Herkunftsnachweise), issued and tracked through the Pronovo system in accordance with Switzerland’s Energy Ordinance.

For international operations, where applicable, the renewable proportion of purchased electricity is validated through contractual instruments and/or energy attribute certificates to ensure traceability and transparency in reporting.

Organisational Boundaries

In accordance with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, and reflecting its the operational control approach, SMG defines organisational boundaries in its focused and material approach to emissions accounting. All relevant subsidiaries, activities, and operational units under the Company’s operational control are included within the emissions inventory.

For the reporting periods 2023, 2024, and 2025, a limited number of locations are excluded from the emissions inventory. These locations comprise small or low-occupancy offices and non-operational sites characterised by minimal activity levels and limited energy use. They are subject to structured assessment of their relevance, taking into account their limited operational significance and low emissions potential.

Based on conservative modelling, the combined contribution of these locations to total emissions in 2024 was below 0.5 percent. As there have been no material changes in office attendance, operational system use, or floor space since this assessment, the contribution of these locations is assumed to remain below the same threshold. As such, the exclusions are not expected to affect the completeness, integrity, or representativeness of the reported emissions and their omission ensures that the GHG inventory remains focused on material sources of emissions, aligned with SMG’s organisational boundaries and operational realities.

Operational Boundaries

Operational boundaries are defined in accordance with the Greenhouse Gas Protocol and apply to emissions that arise from activities under the Company’s operational control, and are reviewed annually and updated as needed to ensure they reflect business activities and emission sources relevant to the reporting period. Scope 1 includes direct emissions from controlled operations. Scope 2 includes indirect emissions from purchased electricity and other energy carriers, where applicable. These emissions are captured for all relevant operations within the defined organisational boundary.

The applicability of Scope 3 categories is assessed in alignment with the business model. As a digital company, SMG provides transactional and advertising services through online platforms. The Company acts as a facilitator rather than manufacturing or selling the products exchanged on its platforms.

As a result of this assessment, only the following Scope 3 categories are considered relevant to operations:

  • Category 1 Purchased Goods and Services: Emissions are reported for the most relevant expenditure areas, including external data centres, office supplies, water use, and other key professional services across operations such as software, hosting, and advisory services. The calculation primarily applies spend-based methods. For tap water, emissions are calculated based on consumption volumes. For selected external suppliers and external data centres, emissions are calculated using supplier-specific data or data-volume based information where available. Emissions from online marketing services are currently excluded from this category as part of a phased approach to Scope 3 coverage.25
  • Category 2 Capital Goods: Emissions are reported for the purchase of tangible assets. The calculation applies a combination of spend-based methods and average data approaches. A category-based methodology is used, with emission factors assigned to specific types of capital goods based on average industry data.
  • Category 3 Fuel- and Energy-Related Activities: Emissions are reported for upstream activities associated with the production and transmission of purchased fuels and energy that are not included in Scope 1 or Scope 2.
  • Category 5 Waste Generated in Operations: Emissions are calculated based on waste volumes and the corresponding treatment methods applied at office locations.
  • Category 6 Business Travel: Emissions from business travel are reported and calculated based on passenger travel distances across different transport modes, accommodation, and emissions data provided by travel management platforms and other relevant suppliers.
  • Category 7 Employee Commuting: Emissions from employee commuting are calculated using 2025 Group-wide survey data on commuting habits and estimated distance travelled by mode of transportation.
  • Category 11 Use of Sold Products: Emissions from the use of SMG sold products are estimated based on user interaction with the digital platforms operated by the Company.

Significant Changes from 2024 to 2025

In line with its commitment to continuous improvement of data quality, SMG reviews the scope of its emissions inventory and the relevance of emission categories on a regular basis. It assesses changes to organisational structure, operational scope, and methodological developments to ensure the inventory remains accurate, consistent, and representative.

The base year for emissions remains 2023. Organisational and operational boundaries, as well as calculation methodologies, have been applied consistently in the 2023, 2024, and 2025 reporting periods to support comparability over time.

For the 2025 reporting year, there were no significant changes to organisational boundaries, operational boundaries, or estimation methodologies identified that would require recalculation or re-baselining of historical emissions in the reporting period. Emission factors applied in 2025 reflect the most recent and appropriate data sources available and are consistent with those used in the previous reporting year. The need for any future recalculations will continue to be reassessed as part of the annual update of the IMP.

As a result, emissions reported for 2025 are considered comparable with prior years, and there were no material methodological updates or boundary adjustments of significance during the reporting period.