Transitioning to a low-emissions fleet More than 52% of our Scope 1 emissions come from our ground vehicle fleet. We expect to lower fleet emissions at least 75% by 2035 (2015 base year) by implementing technologies such as IoT to maximize vehicle efficiency and optimize routes, as well as customer self-service solutions that can minimize the need to dispatch technician vehicles. Through the end of 2021, our fleet emissions have decreased 182,975 MT CO 2 e – down 26% from our 2015 base year. We achieved these reductions despite expanding our ground fleet to support the build-out of our fiber and 5G networks. 23 We’re reducing vehicle count in targeted portions of our fleet and plan to incorporate hybrid/electric technician vehicles to cut our emissions and reduce pollution in the communities where we operate. As part of these preparations, in 2020 AT&T became a founding member of the Corporate Electric Vehicles Alliance, working with other companies to identify the challenges and opportunities involved in adding electric fleet vehicles. In 2021, we formed an internal cross-departmental committee to collaboratively advance our fleet vehicle strategy. We began developing an Electric Vehicle (EV) Transition Master Plan that will map expected progress over the next 10 years, identify needed utility upgrades and site-specific readiness efforts and inform the procurement of EV supply equipment and EVs. AT&T is the 7th largest corporate renewable energy user Our commitment to net zero Scope 1 and 2 GHG emissions includes increasing our investments in power purchase agreements with renewable energy developers. These commitments help reduce our reported emissions and protect against rising energy costs, while adding clean electricity to the U.S. power grid. In 2022, we announced 2 new solar energy deals, increasing our domestic commitments to more than 1.7 gigawatts of renewable energy capacity – helping make AT&T the 7th largest corporate renewable energy user in the U.S., according to the EPA Green Power Partnership . In Mexico, we’re implementing a 40 GWh/year agreement to supply renewable energy to approximately 1,200 network sites. Renewable energy agreements have benefits beyond emissions reductions. Our investments create jobs, drive local economic development and improve the communities we serve. ENVIRONMENT TOWARD CARBON NEUTRALITY AT&T is working to reduce our GHG emissions by enhancing operational efficiency, reducing energy use and increasing our renewable energy commitments. We’re committed to becoming carbon neutral, achieving net zero Scope 1 and 2 GHG emissions by 2035. Our carbon neutral ambition is underpinned by our Climate Strategy & Transition Plan, which guides our work to reduce emissions across all areas of our business. We’ve also launched a science-based target to reduce Scope 1 and 2 GHG emissions 63% by 2030 (2015 base year) – aligning with a 1.5°C pathway. 4 Between 2015–2021, we reduced reported Scope 1 and 2 GHG emissions 36.4%, reaching nearly 57.8% attainment toward our 2030 target. Our efforts to improve energy efficiency (page 35) also influence water use, given the water requirements of our cooling equipment. We track water use at our facilities using the AT&T Water Scorecard, which helps identify water-saving opportunities (page 36). Leadership accountability for carbon neutrality Annual performance objectives for our Chief Sustainability Officer, AVP – Global Environmental Sustainability and other senior leaders across our business include progress toward our carbon neutral goal, science-based targets and other climate- related objectives. This means our leading environmental initiatives are considerations when determining annual merit salary increases and bonus awards for these individuals. Optimizing energy efficiency Energy efficiency is an important part of our net zero strategy, because Scope 2 GHG emissions derived from sources such as purchased electricity account for the majority of our total emissions footprint. Our focus on energy efficiency has delivered consistent reductions in carbon emissions, while contributing cost savings to the business. Our energy management efforts focus on 3 pillars: • Reductions and right-sizing: eliminating unnecessary load by removing obsolete assets and properly diminishing capacity commensurate with demand • Optimization : incorporating energy-efficient systems and practices into infrastructure and monitoring performance to address maintenance deficiencies and opportunities • Investment : purchasing large-scale renewable energy contracts that deliver clean energy to local grids and reduce our reported Scope 2 emissions For over a decade, we’ve invested in energy efficiency initiatives – such as the ongoing integration of our centrally-managed Energy and Building Management Solution – that have made a measurable impact on our energy use. Between 2010-2021, we’ve implemented more than 151,000 energy efficiency projects resulting in annualized savings of nearly 8.1 billion kWh and annualized energy cost savings of more than $733 million. Toward carbon neutrality Read more: Greenhouse Gas Emissions Issue Brief Energy Management Issue Brief • Climate Strategy & Transition Plan Climate Change Issue Brief • TCFD Report • SASB Index “In addition to reducing our emissions footprint, AT&T is investing in renewable energy because it is good for the planet and good for our business. Our approach allows us to hedge against changes in energy costs and support economic development in communities we serve.” – J oe Taylor, Vice President, Global Infrastructure Optimization and Implementation Virtualizing network functions : Over the last several years, we’ve shifted 100% of our layer 3 core network to software-defined control. This includes replacing significant portions of specialized network equipment with lower-cost, energy-efficient hardware that can virtualize many network processing functions. As a result, we’re able to deploy new network capabilities faster, while using less energy and lowering our GHG footprint. 36.4% (estimated) 0 63% Progress: Reduce Scope 1 and 2 GHG emissions 63% by 2030 4 36.4% (estimated) 0 Carbon neutral Progress: Achieve net zero Scope 1 and 2 GHG emissions by 2035 4 Tangible results from energy efficiency activities 2017 2018 2019 2020 2021 19.1 18.3 17.5 17.3 17.1 >82K million MWh (annual) 24 million kWh (cumulative) 16 17 18 19 20 >151K ~111K 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 ~147K ~138K Energy projects implemented (cumulative) Energy savings (right axis) Energy consumption (left axis) OVERVIEW AT&T AND SHAREHOLDERS CUSTOMERS AND COMMUNITIES EMPLOYEES SUPPLIERS ENVIRONMENT GOVERNANCE GOALS SUMMARY KPI s AT&T ESG SUMMARY REPORT 2022 AT&T ESG SUMMARY REPORT 2022 34 35