American Tower – Gloria Foxman – 2020
Goals
American Tower is a leading owner, operator and developer of multitenant communications real estate. The Company provides primary and back-up power to its tenants’ mobile communications equipment in India and its African markets, where the local electric grid is inaccessible or unreliable. This service is necessary to meet American Tower’s contractual obligations to its tenants, and represents most of American Tower’s direct carbon emissions. In 2017, the Company set a target to reduce its diesel usage (and its Scope 1 diesel-related emissions) in these markets by 60% over ten years. American Tower has made impressive strides towards this goal, but it has recognized the opportunity to consider expanding the scope of its greenhouse gas (GHG) reduction target by including all three scopes. Beyond responding to stakeholder interest, this progression would align with the Company’s strategic goals of demonstrating leadership within its industry.
Solutions
Gloria was asked to formulate science-based targets (SBTs) for American Tower and prepare the necessary documentation for verification by the Science Based Targets initiative (SBTi). As part of this effort, she reviewed the Company’s Scope 1 and 2 inventories, ensuring alignment with the GHG Protocol and calculated a Scope 3 footprint through an extensive data gathering process. Upon completing the estimation of the Company’s Scope 3 emissions, Gloria was able to calculate SBTs using the absolute contraction approach and the well below two degrees scenario. Finally, she investigated and recommended cost-effective solutions, ranging from virtual power purchase agreements to cost-neutral business models, for meeting emissions reductions targets, particularly in international markets where renewable energy procurement models are less mature.
Impact
If these targets and strategies are implemented, American Tower will be publicly recognized for adopting ambitious and forward-thinking policies. These recommendations describe a cost-neutral and potentially revenue-building pathway projected to achieve over 850,000 metric tons of Scope 1 and 2 CO2e emissions reductions annually, as well as over 350,000 metric tons of Scope 3 CO2e emissions reductions annually through coordination and alignment with tenants.
