Methodology

The inventory covers all entities under operational control of CTS Group across Europe. Emissions are accounted for at the entity level and then consolidated to provide a complete group wide view of environmental impact.The operational control approach ensures that emissions are captured where activities occur and where decisions can influence performance. This approach supports transparency and ensures alignment between operational responsibility and environmental accountability.The boundary includes offices construction activities manufacturing operations engineering services and supporting functions across the group structure.

Emissions are categorised following the Greenhouse Gas Protocol structure:
Scope 1 direct emissions from owned or controlled sources such as fuel usage in vehicles or onsite equipment
Scope 2 indirect emissions from purchased electricity and heating used in facilities
Scope 3 indirect emissions generated across the value chain including purchased goods services transportation waste business travel and use of sold products
This structure ensures that the inventory captures both operational emissions and value chain impacts linked to the delivery of data centre projects.

Different calculation methods are applied depending on the type and availability of data. These include activity based calculations spend based calculations and hybrid approaches combining both data types.
Activity based calculations are prioritised where physical data is available such as fuel consumption electricity usage or measured waste quantities.
Spend based calculations are applied when physical data is not available using recognised emission factor databases to estimate impact.
Hybrid approaches combine supplier specific information with financial data to improve accuracy where possible.
This flexible structure allows the methodology to adapt to different business activities while maintaining consistency in reporting outputs.

Purchased Goods and Services

An extensive double counting exercise was carried out due to complex intercompany invoicing.

CTS Group operate within one supply chain for design and build of client data centres.

For this reason, duplicate or overlapping records of same transactions, and purchase and sales of goods and services between companies within the same inventory.

All emissions from companies was captured at the source company.

Internal sales and duplicate entries redacted within internal CTS office records (from the Cost Control Centre procurement system).

This was done via an automated code specifically for the double counting steps of inventory compilation.

Transport

Duplicate records exist within Klarakarbon records for GT Nordics, NEP SWB, Nordic EPOD, DC Piping, MC Prefab, and internal CTS offices

To ensure impacts from transport are only captured once, rule based double counting exercise was executed.

Across the group, none of the delivery partners contracted by CTS Group currently track their deliveris per client or the emissions for freight, with supplier specific calculations unavailable for upstream deliveries of purchased goods

For this reason, a global 10% per goods purchase is applied to transportation, to support and estimation of the impact of deliveries of goods to offices and sites.

This is a gross estimation without specific paratmetrisation.

CTS Group understand that in the subsquent years, improvements will be made in the way that transport is calculated.

Employee commuting emissions were modelled based on national averages for distance and distribution of modes of transport

Velox employees data was modelled using EU averages.

For public transport, the emission factor for bus is applied, in absence of knowledge of type of public transport taken.

All emission calculations are based on recognised international databases and sector specific sources. These include publicly available emission factor libraries and industry validated datasets.
Emission factors are reviewed periodically to ensure alignment with latest available data and scientific developments.
Using a consistent emission factor library ensures comparability across entities and reporting periods while maintaining methodological transparency.

Data is collected through structured templates financial system exports and digital tools used across the organisation. Each entity provides data based on predefined categories aligned with Scope classifications.
Where primary data is not available secondary data and evidence based estimates are applied. Estimation models are developed using facility size operational activity and geographic context to ensure reasonable accuracy.
Data is collected on a recurring basis to ensure consistency and allow performance tracking over time.

Collected data passes through a structured process including validation cleaning mapping and consolidation. Automated rules are applied to ensure consistency across datasets and prevent duplication of emissions between entities.
Quality assurance controls are implemented throughout the process to ensure completeness reliability and traceability of data.
The methodology includes defined procedures for handling uncertainties assumptions and data gaps to ensure transparency in reporting outputs.

Where precise data is unavailable estimation models are applied using conservative and evidence based assumptions. These assumptions are documented to ensure transparency and consistency across reporting periods.
Proxy data may be used for leased facilities shared buildings or upstream logistics where direct measurement is not available.
This approach ensures completeness of the inventory while maintaining a clear record of estimation logic.

Certain emission categories require modelling approaches to reflect real operational conditions. Examples include transportation of manufactured components use phase emissions of delivered equipment and end of life treatment scenarios.
These models are based on product characteristics logistics distances material composition and expected lifetime performance.
Value chain modelling allows CTS to better understand indirect emissions associated with delivered solutions and identify future reduction opportunities.

Sustainability data is stored in controlled environments with defined access permissions. Only relevant personnel have access to company specific datasets ensuring confidentiality and integrity of information.
Version control principles are applied to documentation and datasets to maintain traceability of updates and methodological changes.
This structured governance framework supports audit readiness and ensures consistency across reporting cycles.

FY25 has been selected as the baseline year for emissions tracking as it represents the first complete reporting cycle with consistent methodology applied across all entities.
Future performance improvements will be measured against this baseline to evaluate progress and support emissions reduction strategies.
Baseline recalculation procedures are defined to ensure consistency in the event of organisational changes or significant methodological improvements.

The methodology is reviewed periodically to reflect improvements in data availability systems integration and reporting requirements.
Future developments include increased automation improved integration of operational systems and enhanced granularity of value chain emissions data.
This ensures the methodology evolves alongside the organisation and continues to provide reliable decision support.