The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 in order to limit global warming to 1.5 degrees Celsius and avoid the worst impacts of climate change. Every incremental increase in temperature above 1.5 degrees will entail increasingly severe physical, transition, and systemic risks for companies and investors alike.

As American Tower Corporation (“American Tower” or “the Company”) noted in its 2022 10-K, climate change is increasing the frequency and severity of natural disasters, which may disrupt the operations of the Company’s towers, fiber networks, data centers, and computer systems. American Tower also operates in numerous countries and U.S. states where climate regulations are in effect or under consideration, and the Company’s recent acquisitions of energy-intensive data centers make long-term preparations to comply with such regulation critical. American Tower’s climate risk mitigation strategy falls short of investor expectations. Although the Company has set a near-term GHG target, it is not aligned with limiting warming to 1.5 degrees Celsius. American Tower also has not set a long-term science-based GHG target inclusive of its Scope 1, 2, and 3 emissions. By contrast, competitor Cellnex Telecom has a near-term 1.5 degree-aligned target approved by the Science Based Targets initiative (SBTi) and has committed to achieve climate neutrality by 2050.

American Tower must take additional action to comprehensively address its climate impact and mitigate both the physical risks to its operations and the transition risks associated with new regulation and a global shift to a clean energy economy. Proponents believe adopting 1.5 degree Celsius-aligned science-based targets for its full carbon footprint will help the Company mitigate these risks.