Melita becomes the first EQT portfolio company with validated Science Based Targets
As one of many milestones to come on EQT’s journey towards net zero, EQT is proud to announce that Melita, the leading Maltese digital infrastructure company, has become the first EQT portfolio company to have its Science Based Targets (SBTs) validated.
In October 2021, EQT became the first private markets firm to have its greenhouse gas (GHG) emission reduction targets validated by the Science Based Targets initiative (SBTi). This means that EQT has made emission reduction commitments aligned with the Paris Climate Agreement, which sets out to stabilize global warming at 1.5°C this century. One of EQT's commitments is to support all applicable portfolio companies to have their own SBTs validated before 2030.
Melita was acquired in 2019 by EQT Infrastructure IV and is the leading fully-converged digital infrastructure owner and services provider in Malta, offering nationwide 1Gbps fiber-speed broadband and 5G mobile services as well as premium TV to households and businesses based on its state-of-the art fixed and mobile networks. In addition, the Company provides data center services and has built a global presence in IoT connectivity solutions.
Melita’s decarbonization targets are in line with SBTi’s highest ambition level, aiming to reduce Scope 1 (owned or controlled sources) and Scope 2 (generation of purchased electricity, heat and steam) emissions by 42 percent by 2030, in line with the 1.5°C scenario. Moreover, Melita focuses on key Scope 3 emissions, which comprises indirect emissions that occur in the value chain.
Sustainable transformation is at the heart of everything Melita does. Next to its ambitious decarbonization plans, the Company has also created the Melita Foundation focused on projects that enhance Digital Skills & Creativity and support Maltese Heritage and the environment.
Melita has already made progress on reducing its carbon footprint under EQT’s ownership, with its efforts recognized by the Maltese Ministry for the Economy and Industry as a significant contribution to sustainability. Examples of these measures include:
- Fleet decarbonization: Melita’s conversion towards a fully electric fleet of vehicles began in 2020, and is expected to reach almost 40 percent during 2022 and 90 percent by 2025;
- Construction of solar farms: Melita installed solar panels on its data center and plans to build additional solar farms in Malta to generate green power for its operations (Melita has been awarded two solar farm government tenders since April);
- Reduction of energy consumption: Melita has and will continue to invest in its mobile and fixed networks to reduce electricity consumption, particularly through dynamic power optimization and installing intelligent lighting and cooling systems across sites and retail outlets;
- Reduction of supply chain emissions: Melita resorts to Malta-based suppliers whenever feasible and applies environmentally friendly purchasing policies, further cutting emissions generated by transportation. Melita will also prioritises suppliers with decarbonization targets;
- Green credit facility: As part of its aim to decouple its growth from carbon emissions, Melita is also working to convert its revolving credit facility into a green facility linked to key ESG KPIs.
Harald Rösch, CEO of Melita, said, “As a leading employer, and one of Malta’s best known companies, we know it is important that we focus on all aspects of ESG: we are of a sufficient size that our actions can have a direct impact on Maltese society. Our ESG actions are of direct interest to the public – we provide services to businesses, government entities and over 75 percent of homes in Malta – so we sincerely hope that our SBTi commitment will encourage other Maltese businesses to reduce their carbon emissions. Such a movement will be a vital contribution towards Malta achieving its goal of becoming a carbon neutral country by 2050.”
Ulrich Köllensperger, Partner within EQT Infrastructure’s Advisory Team, said, “At EQT, one of our guiding principles is that sustainable business is good business. Melita is a brilliant example of how we apply this formula into practice and the company is leading the way when it comes to truly integrating ESG in all aspects of its value chain.”
Bahare Haghshenas, Global Head of Sustainable Transformation at EQT, said, “In our efforts to create superior returns for our clients through sustainable transformation, we have recently committed EQT and the EQT Funds’s investments to aim for net zero by 2040 – ten years faster than required by climate science. Around 40 portfolio companies will have started their explicit journeys towards this goal by the end of 2022, which is a testament to how we integrate purpose and positive impact in everything we do.”
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