SUSTAINABILITY

The Telekom Austria Group’s sustainability strategy is based on an extensive analysis and evaluation of social and ecological aspects along the value chain of its core business. This focuses in particular on the issues of ‘customer focus’, ‘data privacy’ and ‘network quality and system stability’.

The Telekom Austria Group’s understanding of its responsibility integrates social, ecological and economic aspects – based on the ‘three-pillar model of sustainable development’, the triple bottom line ‘People, Planet, Profit’. The sustainability strategy of the Telekom Austria Group is characterised by a focus on the material aspects and greater orientation towards the core busi- ness. The Group carried out a materiality analysis for the first time in 2012 in order to define the CSR issues which are material from the stakeholders’ point of view and how they relate to the core business: All social and ecological aspects were analysed and prioritised along the value chain of the Telekom Austria Group. According to a repeat of the survey in early 2015, the most significant issues for stakeholders in the materiality matrix, namely ‘customer focus’, ‘data pri- vacy’, ‘network quality and system stability’, remain virtually unchanged.

Derived from this materiality matrix, the sustainability strategy is aimed at four strategic action areas. Each action area is associated with clear targets and specific performance indicators. Af- ter the expiry of the set of targets for the period from 2012 to 2015 and the evaluation of target achievement, new targets were set for the action areas for the period from 2016 to 2018.

NETWORK AND CUSTOMERS

With a high-performance and secure infrastructure as well as a product range providing real added value to its customers, society and the environment, Telekom Austria Group is positioned as a responsible partner in its markets.

Targets for 2012–20151)

Ensuring Group-wide network coverage of at least 99% with 2G and at least 90% with 3G2)

Development of innovative solutions in the healthcare, education and administration sectors

Promotion of climate-friendly products and solutions

Increase in customer satisfaction

Targets for 2016–20183)

LTE coverage of 80% in Telekom Austria Group

Fibre coverage in Austria exceeding 70% with at least 30 Mbps

Identification and promotion of marketable innovations, for example via start-up initiatives

ENVIRONMENT

In order to continuously reduce its ecological footprint, the Telekom Austria Group focusses on energy efficiency, increased use of renewable energy, preservation of resources and the promo- tion of climate-friendly mobility.

Targets for 2012–20201)

Reducing CO2 emissions by 25% (as at the end of 2015: -7%)

Targets for 2012–20151)

Increasing energy efficiency by 20% (+72%)

Expanding renewable energy projects

Improving the recycling rate by 10% (+16%)

Reducing in-house paper consumption by 10% (-3%4))

Increasing the Group’s e-billing rate to 50% (69%)

Targets for 2016–20183)

Reducing power consumption by 30% per terabyte of transferred data volume

Reaching a constant recycling rate of 70%

Reducing in-house paper consumption by 10%

EMPLOYEES

The Telekom Austria Group taps its employees’ valuable potential by means of continuous fur- ther development in an international, modern working environment. The corporate culture is characterised by trust, team spirit and agility. Diversity and flexibility are the key to our success.

Targets for 2012–20151)

35% women in the Group and in management positions (Group: 38%, management posi- tions: 35%)

Promoting internal replacement, maintaining a high engagement index

Increasing international exchange

Targets for 2016–20183)

38% women in management positions

Anchoring of flexible work arrangements

Create a general framework to promote constant learning

SOCIETY

Digital media open up equal opportunities for all people in our knowledge-based society. In ad- dition to other social projects, the Telekom Austria Group therefore specifically promotes the competent and safe use of media.

Targets for 2012–20161)

100,000 participants in media literacy trainings (119,577)

Targets for 2012–20151)

Increasing the number of partnerships to promote media literacy skills within the Telekom Austria Group

Implementation of social projects according to local needs

Implementing and further developing of cost control tools

Targets for 2016–20183)

150,000 participants in media literacy trainings

Implementation of social projects according to local needs

1) The baseline for the targets is the year 2012. Figures shown in brackets represent the degree of achievement as at the end of 2015.

2) Target achieved on a Groupwide basis in all countries except for Belarus, Slovenia and the Republic of Serbia.

3) The baseline for the targets is the year 2015.

4) The target of reducing internal paper consumption by 10% was not achieved to the planned extent, partly due to customer growth as well as mergers and acquisitions.

The extent to which the individual targets for the period from 2012 to 2015 were achieved is described in the Sustainability Report 2015/2016: http://csr2015-16.telekomaustria.com/en/ (download PDF)

Increase in the Carbon Disclosure Project (CDP) rating to ‘A-‘

According to the CDP rating, the Telekom Austria Group ranks among the best-rated companies in the telecommunications sector: Thanks to targeted measures, the Telekom Austria Group improved its rating from B to A- in 2016. This makes the Telekom Austria Group one of the top three telecommunication companies in the DACH region.