a happy, empowered and sustainable life for everyone
Bharti Airtel Ltd. India Sustainability Report 2011- ‘12

mob

ile m

oney

know

ledge

mobile health

mobile education

l TV digita

mobil e agri

cultur e

internet

the backdrop
The Indian economy has seen a significant development in the last two decades. Several hundred million people are benefiting from the country’s progress. Concurrently, India’s population too has risen to more than 1.2 billion, placing an increasing burden on existing resources. Access to basic services like education, health, financial services, banking etc. are often beyond the means of the common person. Airtel’s sustainability journey endeavours to contribute further to our society and to our environment. It is our firm belief that not a single man, woman or child should be denied access to education, health and prosperity. We believe in social inclusion of people everywhere, and have made this the cornerstone of our sustainability programme. We leverage our network presence, reach and accessibility, through mobile telephony, direct-to-home television and broadband services, to contribute towards a sustainable future, not just for people everywhere but also for our planet and economy. We are confident that we can be a force of good, positive change, in society and also augment the efforts of the government, public-private groups, Bharti Foundation and NGOs in the area of sustainability. In 2011, we made a commitment to widen our sustainability journey. It will be our sincere endeavour to make rapid progress in the years to come.

contents
Overview Embedding Sustainability Our Blueprint for Social Inclusion Our Impact on the Value Chain Global Initiatives Independent Assurance Statement and GRI Index

01 09 15 29 53 57

This is Bharti Airtel’s first sustainability report, for the year ending March 31st, 2012. The scope of this report is our India operations including all businesses under our operational control. In addition to addressing social challenges through the section “Our Blueprint for Social Inclusion”, we have also detailed other social and environmental aspects through “Our Impact on the Value Chain”. We have aligned our business activities to ensure a positive impact on our key stakeholders including customers, suppliers, local communities, investors, employees and government bodies.

chairman’s message

Sunil Bharti Mittal
Chairman and Managing Director

Sustainability is a word that evokes much emotion. Invariably, industry is pitted against the environmental lobby in a zero sum game - the crux of contention being the perceived, inevitable trade-off between economic growth and consumption of energy resources, and consequential environmental impact.

the Smart 2020 Study by the Global e-Sustainability Initiative, Climate Group and McKinsey, the ICT sector has the capacity to deliver carbon savings five times greater than the sector’s own total greenhouse gas (GHG) emissions, which currently hover at 2-2.5% of total global GHG emissions. Bharti Airtel has led from the front and, in turn, been feted by its global peers and the society at large for the positive impact it has brought to bear on people’s lives. Our disruptive innovation of partnering with competitors for sharing passive infrastructure is today the industry benchmark globally. Not only has this made good economic sense but also minimised environmental impact at the design stage itself. Over the last few years, we have driven our green initiatives further by making a determined move towards renewable energy sources like solar and wind to power our tower networks. The globally recognised P7 Green Towers project of Bharti Infratel allows for 24,000 tower sites to run on renewable energy, with an expected reduction in GHG emissions by around 150,000 mtCO2 per year. I am delighted to share that our green initiatives have resulted in a reduction of 11% in GHG emission/terabyte for our operations in India during the year 2011-12. Similarly, in Africa, a slew of hybrid battery banks have been deployed,

We, at Bharti, have a slightly different point of view.
For us, sustainability is and, has to be, intrinsic and complementary to our mainstream business agenda. In a country like India where we are headquartered, or the 19 other emerging markets where we have operations, we cannot afford to have islands of economic prosperity in oceans of social disparity and environmental degradation. This tenet has underpinned our approach to business and all our initiatives. Our interventions have been both direct and indirect. Always conscious of the frugality of the resources we have at our disposal, the endeavour has been to innovate to maximise impact. I truly believe that the transformation that telecom, our flagship business, has been able to bring to people’s lives in the last two decades has been powerful, compelling and unique. In fact, according to

reducing diesel dependence in 60% of the tower network. By 2013, this is expected to be 100% for Airtel Africa. Mobile technology has also served as an enabler. Today, our services in the areas of banking, commerce, healthcare and education work to help bridge the Digital Divide as well as support national financial inclusion agendas. IFFCO Kisan Sanchar Limited (IKSL), our joint venture initiative with the world’s largest fertiliser cooperative federation IFFCO, is a great example of farmer empowerment in India. Under this programme, agriculture related information services - weather forecasting, commodity prices, agronomy, dairy farming and forestry - are provided to more than one million farmers to improve farm productivity. A similar project has also been initiated in Kenya. Initiatives like e-Gram in India have introduced revolutionary changes in governance and delivery of citizen services. I strongly believe our networks will not only speed up the expansion of these services, particularly in rural areas, but also ensure that this is done at a fraction of the cost stakeholders traditionally incurred. Airtel has also partnered with Columbia University’s The Earth Institute to provide connectivity to eight villages in six countries in Africa. Known as the Millennium Villages Project, this programme facilitates the delivery of improved child and maternal healthcare, helps children bridge access to education challenges and enables a payment mechanism for solar-powered systems through three targeted individual projects enabled by Airtel’s mobile network. As we enter the age of data, I see broadband being the next lever that will impact our sustainability footprint. Broadband networks help create a ‘connected’ economy and transform the way we work and live. In the process, broadband delivers a multiplier and inclusive effect on the economy. The fact that broadband also makes a dramatic reduction in the overall carbon- intensity of our lives has generally gone unnoticed. In the deliberations of the UN-sponsored Broadband Commission, my fellow Commissioners and I recognised the urgent need for governments across the world to expand broadband penetration by adopting long-term National Broadband Plans based on universal affordability and accessibility.

At the same time, trickle down has just so much impact and, often, those not in the economic mainstream are left out. Education is the singular focus of the Bharti Foundation, the Group’s philanthropic arm, as we believe that without this fundamental input, society can never progress. Through its flagship Satya Bharti School programme, the Foundation has set up 253 schools across six states of India. These schools impart quality education, free of charge, to more than 37,000 children, the majority of whom are girls from economically weaker sections of society. Similarly, Airtel Africa’s ‘Our School’ programme is a school adoption initiative under which 31 primary schools have been adopted across 17 African countries, catering to more than 16,000 underprivileged children. It is therefore with much pride that we present this inaugural issue of Bharti Airtel’s India Sustainability Report. In a simple but hopefully compelling manner, we have sought to present a glimpse of the various ways that telecom in general, and Bharti Airtel in particular, has in its own small way, tried to touch the lives of millions of people - to make the world a better place. This is our dream, our vision, our journey.

CEO’s statement
Telecom and beyond
India has the second largest telecommunications network in the world. Our subscriber base has grown exponentially and the country has emerged as the fastest growing telecom market globally. This growth has been multi-dimensional with the Indian telecom sector producing remarkable growth avenues across industries and occupations. With technology becoming more affordable day by day and the Indian customer embracing this change, telecom is getting transformed into an Essential Service that ensures the smooth functioning of citizens’ daily lives and businesses, helping them become socially and financially included and globally competitive. With more than 900 million Indians now connected, the telecommunication sector contributes to over 3% of our GDP. In the 2G environment, it was found that with a 10% increase in mobile penetration, there is a 1.4% growth in the GDP. Similarly, estimates indicate that every 10% increase in broadband penetration leads to nearly 1% increase in GDP per capita. With 3G and 4G now a reality, we foresee a further multiplier effect on the economic development of the country. Data will act as the next key growth driver for India in the coming decade, like voice was in the last. High speed wireless broadband has the potential to transform society, providing a robust platform for building the country’s digital economy and truly empowering people.

Sanjay Kapoor Chief Executive Officer India and South Asia

With the help of the inherent advantages of reach and affordability with our mobile network, we at Airtel aspire to play our part in the sustainable development of India, specifically addressing areas like connectivity, medicine and healthcare, education and financial inclusion - crucial for the socio-economic development of our country. With less than 10 hospital beds and 6 physicians per 10,000 people, the availability of healthcare continues to be a major challenge. Though mobile cannot replace the human touch of a physician, it definitely promises to make healthcare and wellness accessible to millions. Airtel continues to innovate in order to provide support in such pertinent areas. Our recently launched Mediphone service aims at a unique 24X7 mHealth service, which allows Airtel mobile customers to avail quality health advice through their mobile phones anytime, anywhere. We plan to keep innovating in this area so that we can offer more and more services to enable easy access to health for everyone. On the education front, though a lot has been delivered with national schemes like Sarva Shiksha Abhiyan and the National Literacy Mission, there are still miles to go before education is conferred on one and all. Education and access to information are areas where mobile telephony definitely has a large role to play. Reiterating (or restating) the power of the mobile, it is estimated that farmers can save Rs. 6000 mn (in 5 yrs) by 2015 through mobile broadband by getting information quickly on best prices and cultivation practices, with special focus on areas like protection of plants from diseases and weather-related damage. Our

Addressing core issues

Today we live in a world where temperatures are rising and natural resources are depleting, exposing the planet to unforeseen hazards that call for proactive measures. We believe that businesses should continuously play an enlightened and meaningful role in the creation and maintenance of a sustainable future. When Airtel started operations in 1995 and launched Delhi’s first GSM mobile services, our vision was to build a responsible business that would grow and sustain itself for many decades to come. As a standing testimony to our efforts, we have grown in a very short span of time - from operating in a single circle to a footprint that spans across 20 countries and touches over 250 million customers today. Our 191 million customers, served by over 15,000 employees, talk for over 2.6 billion minutes daily on our network, across the length and breadth of India.

mFarmer services are already helping farmers in 15 states leverage easy access to information. To enable the overall development of youth – India’s future - we have launched a plethora of services from helping them prepare for higher education, choosing the right careers, and providing accessibility to relevant information on campuses, scholarships and exams. 46% of mobile subscribers not having bank accounts poses another major hurdle in India’s economic progress. 450 million of India's population is unbanked. The ubiquitous mobile platform supporting the ability to conduct transactions from anywhere, anytime, promises a solution to this gap - proposing cashless transactions as a huge opportunity for financial inclusion. Secure mobile transaction platforms promise to bring a transformation in the manner in which money is managed, mobilised and generated in the future. Keeping this in view, Airtel Money has endowed its customers with the first ever mobile wallet service in India, allowing them to transfer money to anyone and make payments anytime, from anywhere. This ground-breaking offering will enable financial inclusion and economic empowerment for people from several walks of life.

This implies that our models of growth will soon adopt this change to reflect the impact on environmental and social dimensions, along with economic progress, as a yardstick for success.

Responding to key sustainability issues
In addition to the above, this year, we have focused on areas covering energy and climate change, waste management, customer service, digital inclusion and community engagement. Our social efforts are channelised through the Bharti Foundation, the Group’s philanthropic arm, which runs a flagship education programme under the name of ‘Satya Bharti schools’. The Bharti Foundation envisions 500 Primary and 50 senior secondary schools, reaching out to over 200,000 underprivileged children through free, quality education. We also continue to improve our energy efficiency and reduce carbon emissions, working closely with our partners and suppliers across the supply chain, through changes in technology, management and processes. As we now move ahead on a more structured and dedicated path to business sustainability, we acknowledge that sustainability is not a static agenda, the issues that we focus on cannot be in isolation with those of the stakeholders, and that our response to such issues will evolve over time. Through this report, we are delighted to share our approach and initiatives across each of these identified material issues. We aim to leverage our experience and reach as a telecom provider to make a meaningful difference to society and to create a positive impact across our entire value chain. We look forward to crossing new milestones in corporate responsibility with the support of all our stakeholders. With this, I would like to express my sincere gratitude to all our employees, shareholders and partners for their unwavering efforts and look forward to their valuable inputs and continued support as we embark on this journey to enable a happy, empowered and sustainable life for everyone.

Enriching lives every day

Many of the changes that we anticipate in the future will relate to how people use wireless in areas like health care, education and banking, leading to social inclusiveness. This is the next revolution that is expected to emerge through the use of mobile networks which are increasingly becoming life enhancing tools. This very nature of mobile telephony strengthens the promise that telecom will facilitate continued expansion and transformation in these sector and beyond. Last year we launched our Vision 2015, aimed at capitalising on this very opportunity. With a view to become the most loved brand, we envisioned enriching the lives of millions. As we move ahead, recalibrating our strategies to remain aligned with our vision and fortifying our drive towards building a truly world-class multinational, we constantly challenge and strive to imbibe the best practices from the global fraternity. In line with the potent need of the hour, I am pleased to share that Airtel is widening its sustainability drive, identifying equitable and inclusive growth as its priority and adopting the triple bottom line framework.

ov e r v i e w
Th

Our organisation

The eB ra n

jou d rne

y so

far

overview
Bharti Airtel Limited is a leading telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally, in terms of subscribers. In India, the company’s product offerings include 2G and 3G services, fixed line, high-speed broadband through DSL, IPTV, and enterprise services, including national and international long distance services to carriers. In the rest of the geographies, it offers 2G and 3G mobile services. In India, the company had 181.3 million mobile customers as on March 31st, 2012, which makes it the largest wireless operator in India, both in terms of customers and revenue.

Our Brand Essence
“enriching lives”

Our Vision and Promise
By 2015, Airtel will be the most loved brand, enriching the lives of millions.
Enriching lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having this focus we will enrich our own lives and those of our other key stakeholders. Only then will we be thought of as exciting, innovative, on their side, and a truly world class company.

Our Core Values
We understand that social progress and environment protection are extremely critical to sustainable economic growth. Both these aspects are embedded in our core values. Our corporate vision describes what we aim to do, our values of AIR “Alive, Inclusive and Respectful” describe how we intend to get there.

03

global presence
Number of Circles (India)
1 5 15 22

Alive
We are alive to the needs of our customers. We act with passion, energy and a ‘can do’ attitude to help our customers realise their dreams. Innovation and an entrepreneurial spirit drive us - if it can’t be done, we will find a way.
1996 2001 2003 2004

20 countries

Inclusive
Airtel is for everyone – we champion diversity, recognising the breadth and depth of the communities we service. We work with them, anticipating, adapting and delivering solutions that enrich their lives. We do this by having an open mind and embracing change.

2012

Key Figures (as on 31 416,038
Operating Revenue (Mn INR)

st

March, 2012)

57,300
Net Profit (Mn INR)

181,300
Number of Subscribers (000’s)

5118
Network Coverage, Number of Census Towns

Respectful
We live the same lives as customers, sharing the same joys and the same pains. We never forget that they are why we exist. We act with due humility, always open and honest, to achieve mutual respect.

454,302
Network Coverage, Number of Villages

150,000
Number of Outlets

13124
Number of Employees (full time)

04

our services
In the year 2011-'12, Airtel restructured the organisation creating two distinct Customer Business Units • B2C (Business to Customer) • B2B (Business to Business) The B2C business unit services retail consumers, homes and small offices. The B2B business unit services large corporates and telecom carriers.

B2B Services
With its new identity, 'Airtel Business' reinforces its commitment to provide sustainable solutions, enabling people to unleash their power to perform from anywhere, and in a manner they choose, to help them accomplish more each day. Our solutions free people to do what they love to do, thus creating More Smiles per Cubicle. 'Airtel Business' offers a wide portfolio of services that include voice, data, network integration, data centre and managed services, enterprise mobile applications and digital media solutions. On the strong backbone of our domestic and international network, we offer the following products and solutions to our customer:

B2C Services
Mobile Services
• Cellular mobile services across 20 countries • Customer and revenue market leader in India, 250 million wireless subscribers globally, as of Q1FY13

Telemedia Services
• Offers fixed telephony and broadband internet (DSL + IPTV) • Large customer base of 3.3 million, broadband and internet customers services provided across 87 cities

• Voice Services Mobile, Fixed Line, AC, VIIP, MBIC, HCC, Toll Free • Network Services NLD, Ethernet, MPLS, iMPLS, IPLC, IP/ILP, VSAT • Data and Application based services Video Conf, 3G, Unified Comms, AQM • Data Centre based services Managed Colo, Managed Security, Managed Storage • Cloud based services SaaS, IaaS, Virtual Storage, Virtual DR • Digital Media services Digital Signage Ecosystem, Cinema

Digital TV Services
• 7.4 mn customers across India • Coverage across 616 districts

health

internet business money
Please refer to Bharti Airtel Ltd. - Annual Report 2011-12 (www.Airtel.in) for • Detailed economic performance • Board Composition and Organisational Structure

05

journey so far
Development and adoption of telecommunication

our

1995 1997 1998 2001 2002 2004 2008 2009

Launched India’s first GSM service in Delhi

First Indian mobile service company to cross 100,000 subscriber base

Launched India’s first private fixed line service Incorporated Network i2i - India’s first submarine cable development company. Additional mobile service provider licences in 8 circles and fixed-line service provider licences in 4 circles

Increasing digi presence

Launched International Long Distance services A pan-India footprint First mobile company to provide Blackberry services Introduced the concept of mobile network outsourcing to the world Crossed 60 million subscriber mark and enters the league of top 5 telecom companies in the world. Launched DTH ‘Airtel Digital TV’. Crossed the 100 million mark of subscriber base Unveiled new youthful and dynamic brand identity Launched its first international mobile network in Sri Lanka Expanded international footprint by acquiring stake in Warid Telecom in Bangladesh Acquired the African operations of Kuwait based Zain Telecom Launched 3G services, Airtel Money, and solutions around health and education in India Crossed the 180 million mark of subscriber base Looking ahead to leverage digi presence and internet coverage to digitally facilitate essential life services like education, financial inclusion and health

Global expansion

2010 2011 2012

06

Our Brand Scorecard
We evaluate progress by: • Providing superior shareholder returns • Maximising customer advocacy • Winning in new and emerging categories • Maximising employee engagement • Being a benchmark for corporate responsibility

Our Brand Promise
We create an all encompassing world of utilities and experiences for our customer to live in

Growth trajectory reflected in the numbers

1996
Single Circle Operator < 25k USD 17 mn USD 2.5 mn USD 1.4 mn USD 16 mn Company Profile Customers Revenue EBITDA Cash Profit Market Capitalization

2012
Largest Integrated Private Telecom Operator 252 mn USD 15 bn USD 5 bn USD 4 bn USD 25 bn

• •

7,596 million INR in dividends over the last 2 years paid to our shareholders 34,567 million INR towards our network expansion, reaching newer geographies and implementing advanced technologies to enhance customer experience 59,218 million INR in taxes paid to government exchequer, which is 4.5% more than the last year 44,257 million INR in licences fee and spectrum charges to the government 332 million INR contributions through donations and community investments

• • •

07

honours

recent

Ranked the No.1 Service Brand and No.3 in the overall rankings of the annual Brand Equity Most Trusted Brands Survey

Telecom Centre of Excellence (TCOE) Award for Service Provider with Customer Focus for Best Delivery of Network Services

Airtel Digital TV (HD) recognised as ‘Product Of The Year 2012’, through an independent survey conducted by the research firm, AC Nielsen

‘Telecom Centre of Excellence (TCOE) Award’ for Service Provider with Customer Focus for Best Delivery of Network Services for the year 2011

DSCI (Data Security Council of India) Excellence Award 2011 for Security in Telecom

‘Golden Peacock National Quality Award’ for the year 2011

Rated as one of the Top 5 Best Employers, by Aon Hewitt’s Best Employers in India 2011 study

Featured amongst the Top 25 Companies globally in a study by Fortune- AON Hewitt on ‘The Best Companies for Leaders’

SSON Excellence Award under ‘Excellence in Culture Creation’ category for Airtel Centre of Excellence-Finance, RA, HR and SCM Shared Services

08

emb

e d d i n g s u sta i n

ab

ili

ty

embedding sustainability
Sustainability initiatives have been an integral part of Airtel’s journey over the past sixteen years. In 2011, however, we decided to adopt a much more comprehensive and structured sustainability plan. We are confident that broadening our horizons in the arena of sustainability will have a beneficial impact on our community and planet. We are dedicated to maintaining the highest standards of governance, safety and environmental performance across our value chain. More information on how we are implementing these objectives can be found in the section “ our Impact on the Value chain”. Embedding sustainability has consciously evolved through a systemic engagement with stakeholders, i.e. Employees, Customers, Suppliers, Business partners, the Community, Investors and Regulatory bodies. Identifying, anticipating and consistently meeting stakeholders' expectations is a crucial part of our strategy. Several hours of meetings and discussions helped us to get a clear insight into our stakeholders expectations.
High

Our stakeholders highlighted the need to further strengthen our efforts on issues like climate change, employee engagement, waste management, digital inclusion and impact on communities, amongst many other aspects. An internal “materiality-assessment workshop” enabled us to map the stakeholder expectations with our business priorities, risks and opportunities. The following materiality matrix, highlights the results of our first evaluation, in 2011:
Impact on Communities and Digital Inclusion Energy and Climate Change Waste Management Customer Service Responsible Business Conduct Human Rights Safety Securing Leadership Technology

Innovation

Importance for Stakeholders

Product Quality Supplier Management

Water Conservation Responsible Marketing Local Hiring Brand Management

Low Low Influence on Business

High

11

Stakeholder Expectations
Business Partners - IBM and Infosys
Faster financial inclusion Invest in green IT Reduce fuel consumption Continue the rural drive towards social inclusion.

Network Partners Infratel and Indus
Enhance network capability Stimulate digital inclusion Focus on alternative sources of energy Adopt green technologies

Financial Service Providers
Contribute to Healthcare, Education, Financial Services, Agriculture etc. Reduce fuel consumption Quantify impacts of longterm socialdevelopment initiatives. Focus on network quality and expanding

NGOs and Bharti Foundation
Enable social and digital inclusion via community participation Maintain affordability for larger section of the society Contribute towards quality education, energy and climate change

Employees and Top Management
Assess impact on communities Stimulate employee engagement Digital inclusion Effective customer service Energy and waste management

Regulatory and Government Bodies
Increase focus on financial inclusion

Customers

Increase network coverage

Contribute and Improve customer take mobile health services and education to a new level Entertainment and value Compliance to added services radiation norms and green telecom

Stakeholder expectations demanding our strategic and operational attention: • Energy and Climate Change: As part of our energy and climate change mitigation strategy we work with our infrastructure partners to ensure a sustained decline in their GHG emissions. We have also intensified our efforts towards reducing our carbon footprint, increasing resource efficiency and adopting green practices in areas where we have operational control. • Digital Inclusion and Impact on communities: Over the years we have served as a catalyst to bridge the digital divide though our robust network and far-reaching distribution. We are constantly expanding our bouquet of services and enhancing our communication technologies to make a positive impact on the communities we work in. • Customer Service and Satisfaction: Customer service is of paramount importance to us. We continuously measure and enhance customer satisfaction and engagement levels. Our robust partner ecosystem supports our endeavours. • Waste Management and Resource Optimisation: We are committed to utilising our natural resources responsibly and minimizing the negative impact of our business practices on the environment. We increase our resource efficiency by preventing and reducing waste and environment-friendly disposal of the residual waste.

12

Governance Structure
Our Sustainability Governance Structure promotes the integration of sustainability into our daily operations. At the Board level, Mr. Rakesh Bharti Mittal, Vice Chairman and Managing Director of Bharti Enterprises, oversees and provides strategic direction to our sustainability efforts. He is supported by the Sustainability Executive Committee, which champions sustainability governance across Airtel, and owns the policies, accelerates progress and streamlines the successful adoption of new sustainability-related processes. The Committee is chaired by the CEO of Bharti Airtel, and supported by Director, Legal and Regulatory. This committee is supported by a crossfunctional Sustainability Working Group, whose role is to put the sustainability framework in motion by driving implementation of strategy and policy across Airtel. This group comprises of nominees from across all functions and is led by a dedicated Sustainability Officer.

Leadership engagement and ownership is of paramount importance in the process of embedding sustainability within Airtel. Each of our key materiality issues is owned and driven by a member of the Airtel Management Board. We are currently expanding our engagement process to further expand our materiality and associated key performance indicators. We are also in the process of developing our “Sustainability Scorecard” to measure and monitor important sustainability parameters. In addition, our stakeholders expected us to leverage our existing network, reach, accessibility and products towards social inclusion. It was evident from the voice of our stakeholders as well as materiality assessments and internal workshops conducted in 2011, that Airtel’s vast footprint across India needed to better leveraged to include, empower and enrich lives.
Please refer to Bharti Airtel - Annual Report 2011-12/Website www.Airtel.in for • Risk Management Framework and Corporate Governance • Responsible Policy Advocacy and Business Continuity Management

13

“How can a telecommunications company like Airtel ensure that more and more people get included in the benefits of a sustainable and enriched life?”
A collective concern raised by our stakeholders centered around the above question. We put this challenge to some of our brightest thinkers and experts. Several happy and energetic man-hours later we finalized “our Blueprint for Social Inclusion". Our blueprint addresses our stakeholder concerns and is aimed at ensuring that millions more are included and empowered through sustainable social and economic development. We are committed to delivering on our “blueprint” in midst of a difficult market environment and increasing regulation. In doing so, we'll achieve our overall business objectives whilst earning the respect and trust of the communities in which we operate. The details can be found in our following section - "Airtel's Blueprint for Social Inclusion".

14

Our Blueprint fo

Vision Pillar Two

Vision Pillar One

The Start

m education

Action Pillar Two

Action Pillar One

Social inclusion and enrichment is both a target and an instrument of change for millions

To live an empowered, happy and sustainable life, millions need to be brought into digi-presence.

Ensure digital presence through far-reaching, even and efficient network coverage and deep internet penetration.

Airtel through its Mobile, DTH and Broadband platforms, facilitates financial services, education and health.

ai mortel ne y

or Social Inclusion

Vision Pillar Three

The Goal

Airtel leverages its reach and es rea accessibility to foster sustainable community development.

Action Pillar Three

Provide financial, h education and health services through mCommerce, mEducation and mHealth.

Enable community development and quality education through the Bharti Foundation and regional community service.

Millions more are included and empowered through sustainable social and economic development

Airtel’s Blueprint for Social Inclusion – Three Vision Pillars

Our goal: Millions more are included and empowered through sustainable social and economic development Vision Pillar 1 Action Pillar 1
Ensure digital presence through far-reaching, even and efficient network coverage and deep internet penetration

To live an empowered, happy and sustainable life, millions need to be brought into digi-presence

Governments from across the world have widely acknowledged internet accessibility as an imperative for long-term economic growth. Apart from providing public services like e-governance, health, education and entertainment, the internet has opened up new avenues for growth, helping economies become and remain connected and highly competitive. A large part of today’s

information is accessible on the internet and in other electronic forms. Digi–presence at Airtel means creating a platform for digital accessibility of telecommunication, internet and digital television services. We are determined to take the benefits of digi-presence beyond urban or affluent areas to remote areas.

17

“No one left out” is a commonly heard call to action at Airtel. We believe that telecom connectivity is an important medium to achieve social and economic inclusion for all Indians. We are committed to providing robust and dependable telecom services to customers even in adverse terrains and geographies. Airtel is the only operator which provides coverage in a fully underground mine in the Tehri hydro power plant. We have connectivity at the highest motorable road, at Khardung La pass, in Ladakh. We also connect fishermen off the coast of Kerala, and in the sparsely populated, dense forests of the Sunderbans.

The internet paradigm is changing, from dialup to broadband, from kilobits to gigabits, and from connected people to connected things. Our networked world is changing in speed, size, scale, and scope. Towards this goal, Airtel has a sustained annual programme for the expansion and improvement of our network in both urban and rural areas. Our 2G network covers almost all of urban and rural India with a capacity to connect most of India's population through high quality voice and data services. In terms of everyday living, this means that from Kashmir to Kerala and from Gujarat to Bengal, people everywhere are increasingly able to speak, connect, transact and grow. A migrant labourer in Mumbai, for example, can speak to his family in Bihar, access regional news and channels, listen to Bhojpuri music, and send money home to his friends and family, all through the Airtel network. With a robust, go-to-market strategy, backed by 1.3 million distribution outlets nationally, and a strong network, we ensure that affordable and omnipresent services march hand in hand with our network to benefit people. During the peak hour, Airtel connects nearly 6 million voice and over 5 million data customers, concurrently. Our 600 switching and routing centres process 80 billion minutes of voice and 24 petabytes of data traffic every month. This huge traffic comes from over 160,000 sites (2G, 3G and 4G), through 150,000 kms of optical backbone, via 75,000 kms of the undersea cable system and connects customers globally, through 17 global PoPs for voice and data.

In order to strengthen our network resilience, we use the Automatically Switched Optical Network (ASON) technology. This ensures service continuity even in the case of multiple fibre ring failure. This is particularly essential for Indian conditions, since road expansion is a constant activity on our national highways and intra-city roads.

18

To provide better data downloads and on-the-go connectivity our 3G service now covers more than 1100 towns across India. As of March 2012, we had over 35 million mobile internet and nearly 13.8 million broadband users which is an annual growth rate of over 100% on our mobile internet base, both in terms of users and usage. However, with internet penetration in India at around 10%, we have a long way to go. In order to support this large potential for growth Airtel is investing significantly in strengthening its Internet

Protocol (IP) based infrastructure (both fibre and microwave). Over the next five years, internet penetration will play a significant role in attaining our vision to enrich the lives of millions. We will continue to grow our network coverage and quality and also our retail universe, towards the goal of bringing as much of India as we reasonably can, under digi-presence. We believe that this is the first step towards social inclusion for all.

19

Our goal: Millions more are included and empowered through sustainable social and economic development Vision Pillar 2
Airtel through its Mobile, digital TV and Broadband platforms facilitates financial services, education and health

Action Pillar 2
Provide financial, education and health services through mCommerce, mEducation and mHealth

mCommerce :

While banking and financial services are permeating across India, there is still a vast population that is unbanked or under-banked. India’s subscriber base is fast approaching 900 million, with almost 300 million subscribers from rural areas. Over 50% of these rural subscribers do not have bank accounts. We believe that the mobile industry which covers a significant mass of India’s population can utilise its existing national coverage and infrastructure, and collaborate with banks to play a significant role in enabling financial inclusion as well as payment services across India. Payment services on mobile phones have seen a huge transformation in recent times. The earlier days offered basic information-based services such as balance or transactions enquiry, funds transfer and bill payments. These services offered immense convenience and flexibility to customers who could avail these facilities “Anywhere and Anytime”. Today, a mobile wallet has the potential to cause large scale digitisation and/ or virtualisation of cash transactions. Ubiquitous

mobile connectivity, wide distribution network, large scale customer service infrastructure and robust micro transaction processing are some of the key capabilities that Airtel has built over the years. We are leveraging these capabilities to create a state-of-the-art payments infrastructure across the country. Airtel is one of the first telecom operators in India to get a licence from RBI to build mobile payment services. Airtel Money, a product of Airtel mCommerce Services Ltd (AMSL), is building a railroad that could transform the existing payments landscape. Today the benefits of Airtel Money include utility bill payments for electricity, water and cooking gas bills, remittance for medical and education services, payment of citizen services, convenient shopping at local kirana (grocery) stores - all of these without carrying a card or cash or having the constant worry of losing either. For businesses, Airtel Money means convenient and real time payments with other businesses

20

mHealth

The healthcare industry is worth $35 billion currently and is projected to touch $78.6 billion by 2017. The infrastructure for healthcare facilities is very poor in rural India. And India is short of around half a million doctors and a million nurses. This has led to a dismal doctor to patient ratio of about one to ten thousand, which is one of the lowest doctor-patient ratios in the world. Airtel endeavours to reduce this gaping divide by providing health advice/ services on the mobile phone. anytime, anywhere. We are also actively driving the creation of an ecosystem of merchants and retailers, all of whom transact using Airtel Money. With around 67 per cent of retail spending in India carried out in cash, the opportunity for Airtel Money lies in its potential to supplant cash transactions and enable micro transactions to proliferate on this railroad of mobile infrastructure, thus enabling millions more to store, send and spend money at low transaction costs. These instruments can prove to be efficient means of distributing social benefits, incentive payments, or other forms of compensation to eligible individuals. Airtel Money can provide the platform where a standard product or service is made available to all citizens, regardless of their Airtel Money facilitates cashless transactions in rural areas Airtel’s Mediphone service is making commendable progress in providing health advice over the mobile phone. We are also exploring ways and means through which we can provide the following services: • Real time treatment • Remote disease monitoring • Health awareness With an eye on the future, Airtel is exploring options of enhancing delivery of telemedicine through the internet. Evolving concepts like Telemedicine and Remote Diagnostics are creating a compelling cause to do more in this area. The world, today, has proven capability for building and delivering technology infrastructure to promote such concepts. Further, the government is also supportive of initiatives that are affordable and accessible and aim to provide large-scale, quality healthcare. We have formed a strategic alliance with Healthfore (a division of Religare Technologies Limited). Healthfore is supported by Medibank Health Solutions, Australia, for technology solutions. The service is staffed by accredited doctors and paramedics, for reliable quality healthcare advice on the mobile phone anytime, anywhere.

mEducation: economic status. In addition to this, it will lay the necessary foundation for banks and service providers to offer financial services like microcredit, and micro-insurance to the under-banked and unbanked segment, thereby creating a winwin situation for all.

Literacy is extremely critical for socio-economic progress in India. Though there has been a six-fold improvement in the Indian literacy rate, which witnessed a growth from 12% in 1947 to 74.04% in 2011, not more than 7% of the population in the age bracket of 18-25 years goes to college. Out of 219 million Indians in the 15-24

21

year age group, an astounding 192 million get no vocational and/ or higher education post-school level. The Government of India has taken several commendable measures to improve the literacy rate in villages and towns of India. However, education providers face a challenge in reaching out to the target population, due to infrastructure constraints. They face an even bigger challenge in finding qualified trainers/teachers, particularly as they move to tier 2/ tier 3 cities and rural areas. The mobile industry can provide opportunities that supplement the government’s efforts at balancing the education scale. We intend to aggressively target the needs of the youth segment in 3 primary areas of greatest impact: English language training - For a vast majority of the working population, the inability to speak the English language becomes a big deterrent for job opportunities and career progression. We are working with English language learning companies to create products that cater to this segment. These products emulate a classroom environment, as far as possible using mobile Interactive Voice Recognition System (IVRS) and Short Message Service (SMS) technologies. Competitive exam preparation - 60% of the students appearing for competitive exams are still without the benefit of any formal coaching. To empower such students, we aim to provide an ecosystem that will enable test prep providers to host their courses on Airtel’s platform via feature and smartphones, computers or tablet devices. Vocational skilling - The Indian government is constantly emphasising the need for trained personnel in varied industrial segments. India’s “demographic dividend” will not be forthcoming, if the youth are not skilled and employable in various areas. Airtel is working with NSDCfunded companies to address this issue and develop appropriate services in this segment. Working towards this aim, Airtel has already launched mEducation services to provide education through mobile phones. We believe that mobile technology will dramatically

change the way education can be delivered. The mEducation services we offer include: • Assisting students in preparing for various entrance exams through SMS and WAP products • Career and job preparation-focused products like Ask an Expert • Career counselling: English language skillenhancing products like English Guru and Office Vocabulary Another focus area pertaining to education and awareness revolves around empowerment of farmers and the development of Indian agriculture. Agriculture is crucial to India’s economy, as it provides 23% of GDP and employs 66% of the workforce. The underprivileged subsistence farmers have little or no access to technology and markets for their produce. Farmers lack knowledge on which markets to target and what prices to charge. Deficits in physical infrastructure, problems with availability of agricultural inputs, and poor access to agriculture-related information are the major constraints in the growth of agricultural productivity in India. Introduction of mobileenabled information services provides a means to overcome existing information asymmetry.

22

It is in this context that we launched our IKSL partnership and the mFarmer initiative. The joint venture with the Indian Farmers Fertiliser Cooperative Limited (IFFCO), known as IFFCO Kisan Sanchar Limited (IKSL), aims to empower the farmers and people living in rural India. Relevant information and services are provided, through a highly affordable communication network and rural friendly technologies. It has helped farmers become more productive and profitable by providing easier access to vital agricultural information on weather, mandi (rural market) prices, dairy farming, animal husbandry, agronomy, horticulture, forestry, rural health initiatives and government schemes. Most of these services are delivered via voice messages, and a helpline to over 40,000 IFFCO societies. We
Dairy Farming Poultry

E-Gram - India’s largest rural connectivity drive connecting 13,716 villages of Gujarat with the Common Service Centres (CSCs) located in different parts of the state. This initiative provides last mile connectivity through comprehensive V-SAT-based solution to the villages to promote high quality, cost-effective video, voice and data services in the areas of agriculture, e-governance, health, education In addition to this, through this infrastructure, the Village Panchayats become delivery points of services of the various government departments even in tough terrains of Rann of Kutch prone to flooding and other calamities.

Weather Forecast

Architecture and Product Construct

PUSH: voice based information with consent

Agriculture Markets

Agriculture

Animal Husbandry

IIMS (IIFFCO Database, Specialist's Inputs, Universities and Research Institutions)

PULL Helpline

IKSL's Expert/ Farmer Help

Specialists

have a strong association with NABARD (National Bank for Agriculture and Rural Development) in many states to drive various programmes for farmers' welfare. These include providing financial literacy to farmers in Gujarat, enhancing crop productivity in certain districts of Haryana and Odisha, and reaching out to farmers in the water shed areas in Karnataka. The equitable distribution of benefits of a sound financial, educational and healthcare plan is the fundamental need of the hour. Through persistent efforts made by the mCommerce, mHealth and mEducation initiatives, Airtel is

making in-roads to bring these fundamental conveniences to all those in the remotest corners. Ensuring a qualitatively superior life in the realms of economy, health and education, for those in need, is just another way of fostering our sustainability agenda.

23

Our goal: Millions more are included and empowered through sustainable social and economic development Vision Pillar 3
Airtel leverages its reach and accessibility to foster sustainable community development

Action Pillar 3
Enable community development and quality education through the Bharti Foundation, and regional community service

There is a profound interdependence between the corporates and communities. An organisation does not exist in isolation, detached from the people and communities it lives in. Both give and take from each other, and this intertwined relationship builds and grows over time to be increasingly beneficial and rewarding. As a corporate, we make our presence felt in the communities we serve and also where our employees live and work. We are focused on creating a sustained, positive and deep-rooted impact on the society at large. Our philanthropic efforts, employee volunteerism, and community outreach initiatives support the desire to be seen as a trusted partner - one that honours its commitments and takes pride in the role it plays in community wellness. Inequality and discrimination in education of children with diverse backgrounds and abilities remains one of the major challenges in India. We are convinced that holistic well-rounded development will go a long way in developing children as the leaders of tomorrow. With the aim of helping them actualise their true potential and become productive members of

society, we concentrated most of our employee volunteerism and philanthropic efforts towards our contributions to Satya Bharti schools . Launched in 2006, the Satya Bharti School Programme initiated by Bharti Foundation, the philanthropic arm of Bharti Enterprises, is one of the largest end-to-end rural education initiatives undertaken by a corporate in India. This programme supports the pursuit of excellence and aims to set benchmarks for quality education across the country. The programme provides free, quality education to underprivileged children, with a special focus on the girl child, in the deepest rural pockets of the country. Bharti Foundation Statistics (As on 31st March 2012) • Total Number of Schools : 253 - Total Number of Students : 37648 • Total % of Girls Enrolled : 49% - Total Number of Teachers : 1334 • Percentage of Female Teachers : 58%

24

and caste discrimination, awareness and drives around global warming, awareness against substance abuse etc. Community contributions have received many accolades at international student platforms such as the Design for Change School Contest from 2009-2011 and Pramerica Spirit of Community Awards in 2011 and 2012.

In 2011, around 170 schools undertook community initiatives. Some of the notable and recognised initiatives were: • Satya Bharti Government Upper Primary School, Labana – ‘Against Caste Discrimination’ Satya Bharti School, Ladhowal – ‘Mamta Se Motivation’ Satya Bharti School, Bakali – ‘Campaign for Village Sanitation’ Satya Bharti School, New Teek – ‘Community Book Club’ Satya Bharti School, Bawarla – ‘Deaddiction Campaign’ Satya Bharti School, Basai Bhopal Singh – ‘To Promote the Use of Toilets’ Satya Bharti School, Balliyewal – ‘Girl Child Education Campaign'

Satya Bharti School - leading the change in villages of India since 2006

•

•

•

•

•

Preventing 16 child marriages in the far flung village of Lordi Dejgara in Jodhpur, Rajasthan, and challenging a prevalent age-old custom

•

Airtel has been a keen partner in many community development programmes which help children to make a tangible difference in their communities. Students are enabled to identify and address social issues in their own villages and local communities. Over the years, students have addressed issues like empowerment of the girl child, widows and underprivileged women, eradication of social evils like child marriage

Environment campaigns and tree plantation drives supported by Airtel

25

Touch (ACT) programme of Bharti Foundation or running for a cause to raise funds in the Airtel Delhi Half Marathon (ADHM) or cleaning up a highway just outside of town, our employees constantly reach out by volunteering, raising funds for charitable causes, donating blood, and creating awareness about important issues across geographies.

Girl Child Campaign to promote education for girls in rural Rajasthan through puppet show, aptly titled “Guddi”. This initiative won the prestigious SILVER award at EEMA’s EEMAX 2011 AWARDS in the “Best CSR/ Environmental Initiative” category

Over the years, in addition to primary education Airtel has been closely working with Bharti Foundation to support several projects across the country. Some of these include: • Sponsoring the Bharti School of Telecommunication Technology and Management, IIT Delhi, and the Bharti Centre for Communication, IIT Bombay, with the objective of creating tomorrow’s telecom leaders. • Sponsoring the Bharti Institute of Public Policy at Indian School of Business (ISB), Mohali, to promote quality research and full time courses in the area of Public Policy. This institute aims to create a talent pool and provide meaningful insights, facilitating the policy making process in various strategic areas. • Bharti Scholarship and Mentorship Programme to support academically brilliant students from financially weak backgrounds. As of now more than 200 scholars are being supported under this Programme. • Mid-Day meal programme for underprivileged children at the Bharti Foundation schools. Airtel’s relentless efforts aimed at fostering sustainable community development come in varied forms. Whether it’s donating a part of salary, time, skills or knowledge to the A Caring

Under ACT, each monetary donation is matched equally by the respective Group Company so that it has double the impact on the lives of those less privileged. In 2011-'12, of the INR 15.85 million contributions made towards the Satya Bharti School Programme, INR 8.8 million were contributed by the employees of Bharti Airtel Ltd

The Airtel Delhi Half Marathon (ADHM) 2011 saw senior management from Bharti Airtel Ltd. and 30 corporate teams run for the Foundation, raising approximately INR 9.4 million towards the programme

26

Environment and Health
• • • • • Tree plantation Awareness drives Blood donation Health and eye donation camps Create social awareness

Community Engagement
• • • Support to under privileged kids and old age homes Assistance in self employment of the physically challenged Drives for the eradication of social evils

Promote Art, Sports and Culture
• • • Promoting local sports events Promoting local artists Organizing local marathons to bring communities together

As a responsible corporate citizen employee contributions span from promoting community development health and road safety drives, environment protection; provision of self employment to physically challenged; and promoting music, art, local culture and sports across regions and sections of society. At Airtel we believe a sense of community is seldom more evident than in times of crisis. Whether it was the cloud burst in Ladakh or the floods in Assam and Odisha, we have demonstrated that we are alive to the needs of our community and to the need of the hour. Our efforts ranged from provision of prompt mobile connectivity and PCOs, to ensuring the physical well -being of the affected population. In August, 2011, when floods hit Assam bringing life to a standstill, employees of Airtel NESA Circle helped the affected people by providing food packets and clothes through their Flood Relief initiative.

“Freedom2Learn, Bid2Contribute” is a unique online auction opportunity for employees to bid for time with the top management team. The highest bidders get to spend time with the CEO and other board members on exciting activities and events like dinners, lunches, bartending and guitar sessions, tennis, bowling, etc. The senior management volunteers and contributes to these events with their time, and gives employees a chance to donate to their favourite NGOs with the bid money.

Airtel’s concern for the larger community is evident in its hands-on participation during times of natural and other disasters

27

They covered the West Dhemaji District of Assam. During September 2011, when Odisha was hit by devastating floods, Team Airtel visited nearly 120 villages and made seven PCOs operational helping villagers to connect with their relatives in other places, and distributed food packets.

Airtel in its unceasing efforts to make concern for community an inherent component of its business strategy, pledges to continue the good work and to actively seek areas where its expertise, resourcefulness and goodwill can be put to best use to make this world a better place.

28

ou

r im ou r cu

pact s to m

ers, par tners, plane

o n t h e v alu

op t, pe

cha e le in

our customers
'Customer First' approach is deeply embedded in our work culture. We actively engage with our customers and create sustainable value for them through provision of innovative services, while protecting their interests. Our approach ensures that we meet the diverse expectations of our urban, rural and multinational enterprise customers. Connecting customers in the way they want, with what they want and when they want is of paramount importance to us. Some innovative approaches to connect to our customers include: • Reaching out to our rural customers: Rural and emerging markets contribute to approximately 60% of our customer base. Rural users commonly depend more on mobile communications to stay connected. In a consistent effort to bring the technological revolution to remote areas, our rural Airtel Service Centres (ASC) sell ~248 million mobile, internet and SMS packs on an annual basis. We conduct around 5000 Service Camps to help service rural customers who have a need for face-to-face interaction.

At Airtel, we Innovate and deliver a wide range of cost effective, secured, on-time and customised services using the bestin-class technology for our customers. We also ensure that customer service and delight is engraved in every employees' DNA to add value to every moment of the customer’s time. We aim to be a part of the lives of all customers thus making them advocates of brand Airtel.”
Abhilasha Hans – CSO Airtel

The 100-seater rural centre in Chindwara, MP Our effort to offer personalised services to our rural customers and also provide employment to local youth

31

•

Nearly 27,000 Airtel Service Centres to service around 83,000 villages.

• Nearly 10 million customers are serviced every month from these centres, which sell, recharge and handle customer service, supported by a staff of around 800. • Over 1000 vans equipped with cameras, photocopiers and scanners to service rural and distant locations. 14 contact centre partners with a team of over 20000 executives interact in 18 regional languages, handling over 50 million calls per month.

excellent responsiveness. Our self-care portal, Enterprise Central, enables our customers to seamlessly complete all transactions, view performance reports, analyse bills and usage patterns online and view details of all our services.

Enhancing customer satisfaction through exemplary customer service
Continuous evaluation of customer feedback, improvement of our processes and forging the right partnerships have been vital in ensuring that our contact centres support the exponential increase in transactions and deliver a ‘best-in-class’ customer experience. Our call centres collect feedback from individual and enterprise customers at every stage of the interaction. Customer Transaction Assessment and Customer Relationship Assessment aim to understand attitudes and perception, and discover areas critical to maintaining customer loyalty.

•

• Empowering customers through self-care: The nature of customer interactions has changed dramatically in the past few years. Customers find more value in the online experience in comparison to live interactions. Recognising this, we ventured into unconventional territories like IVR, USSD, online presence, web-based applications and SMS, which enables us to connect with our customers in real time. • 73% of our postpaid and 32% of our prepaid customers use some form of self-service. We currently manage around 550 million transactions every month on self-care channels Our Facebook interactions doubled and Twitter followers tripled in the past 2 years Active presence on 114 online websites, including Grahak Sewa. 20% of our postpaid payments are through online bill payment Airtel online recorded approximately 50% increase in visits between July 2011 and March 2012!

Customer Satisfaction Index
85 91 85 91 88 92 86 90

•

Q4 '10-11
Postpaid Prepaid

Q1 '11-12

Q3 '11-12

Q4 '11-12

•

•

•

• “More Smiles per Cubicle” for our Enterprise Customers: Our Global Service Operations Centre (GSOC) is always on a mission to provide reliable, secure, proactive 24x7 monitoring, and

To reinforce our commitment, we connect the performance appraisal- linked bonuses of every employee in the company to the customer satisfaction indices. In addition to this, the monthly meetings of the senior leadership meet begins with live call barging of 5-6 customer interactions. The feedback received from each of these calls is incorporated into processes aimed at enhancing customer experience. This unique feedback system plays a crucial role in updating customer-centric strategies, addressing concerns and formulating

32

policies pertaining to products and services further Airtel plans to develop customised services, particularly aimed at meeting the needs of our differently-abled customers, as well as innovative services that offer a one-stop, comprehensive resolution experience.

Alive to our customers

Enhancing customer satisfaction through customer service

Enabling our customers through services and offerings

Ensuring customer privacy and data security

We seek to enhance our customers experience and have initiated practices and processes around this

We want to act as enablers for our individual and business customers, enabling choice, freedom, transparency, convenience safety, quality, efficiency, speed, flexibility and technology for them

We recognise the sensitivity of customer data and privacy and have evolved strong organisational processes and governance to manage this

Enabling our customers through innovative services and offerings
Airtel provides a rich platform for innovative services through the following: • Offering enhanced data experience through superior internet experience for broadband customers by providing speeds up to 8mbps, consolidation of all Dedicated Accounts (DA) of a single customer into one account, and up gradation of Airtel Live platform with additional features such as federated search, editorial content, social objects and prepaid self-care integration for enhancing usability and discoverability. • Enabling choices for the customer through Value Added Services (VAS). The pioneering service provider in India to provide a single platform which empowers customers to access,

discover and control VAS activation and deactivation, anytime and anywhere, Airtel is currently investing in devising value-added services that would not only address customers’ telecommunication needs but also provide life enriching experiences. » For the financial year 2011-2012, Airtel registered approximately 50% reduction in VAS and data complaints. » For the last two quarters of the financial year 2011-2012, Airtel’s mobile internet customer satisfaction scores surged upwards by 57% for postpaid customers and by 40% for prepaid customers. • Enabling freedom for the customer through My Airtel My Offer (MAMO). Personalised offers based on the customer’s need and usage

33

including customised talk-time, validity, data services, roaming, ISD and VAS offers through a 360-degree approach via multiple channels. We invest substantially in infrastructure so that businesses of all sizes are able to access the most advanced technology. We work hard to provide our enterprise customers with the best technology available at affordable prices through leading innovations such as: • MATE – Mobile Application Tool for Enterprise, an integrated telecom and IT application enabling enterprises to port Business and CRM applications on mobile devices and extend

MAMO: Customer Accessibility on Multiple Channels

call centre subscription

web: www.Airtel.in

sms: “offer to 121”

IVRS

interactive USSD *121#

data intelligence to field operations. It allows access and exchange of data while on the move, enabling the field force to be more productive on the go. • TrackMATE - Airtel Business was the first telecom operator to launch a GPS-based tracking solution. TrackMATE is helping organisations increase productivity with faster delivery of goods and reduce fuel consumption by monitoring vehicle routes. The vehicle tracking application is available through mobile phone as well as the computer, thus allowing fleet managers to keep track of all the vehicles, even when on the move. • Cloud offerings - Cost effective solutions for customers which curtail costs on infrastructure, space, power and server management with guaranteed availability and round the clock support. Airtel offers both private and public cloud offerings to suit the requirements of its customers, even supporting the growth visions

of organisations that do not want to make large capital investments in infrastructure. • International roaming offerings - Costeffective voice and data packages for enterprise customers' employees. We offer frequent travellers a suite of value-added services that redefines their roaming experience across our member-networks. • Sales force automation solutions - These solutions enable the sales force to take orders and do collections promptly though their mobile phones, thus increasing their productivity and expediting the entire process. The application enables the sales employees to track stock in real time and book orders, provide customised price list displays, order confirmation, payment collection and report generation capability. • Tier III and Tier III+ data centres – These provide a secure environment for co-locating and operating customers’ business, critical IT and

34

telecom equipment and applications, including the entire suite of managed hosting, storage, business-continuity, data protection and security services.

Protecting customer interests, privacy and data security
Sustainability at Airtel begins with the protection of interests of our customers and other stakeholders, and remains at the heart of all our business operations. There have been several measures undertaken to secure customer interests: • Bill Protection and Bill Shield - a default inbuilt feature for all post paid plans with a maximum limit that can be incurred on a customer’s bill to ensure a 'no surprise' data usage. • Responsible data usage on international roaming- Our awareness drives on responsible data usage during roaming and continuous reminders during roaming with the usage details to safeguard customers from excessive usage without knowledge. • Robust process of VAS consent management • State-of-the-art data centres providing a secure environment for customer data. Special attention is given to efforts that safeguard sensitive information and individual privacy. Airtel

has a highly trained team of security professionals to take care of information security, people and infrastructure safety, business continuity and compliance. Our structured security-training programme encompasses all domains of ISO 27001 across the organisation and is conducted annually. Airtel has adopted a number of policies and procedures to ensure security and data privacy: We have a competent fraud management programme managed by dedicated revenue assurance and fraud management experts. These teams use sophisticated tools and highly evolved processes to prevent occurrences of frauds thus helping protect customer interests. Moreover, we are in the process of launching an innovative programme to promote safety and responsible usage of mobile phones. It is our constant endeavour to ensure that personal data is protected and handled in accordance with governing laws and best practices. In 2011, we encountered no significant breaches or substantiated complaints of invasion of customer privacy and loss of data. Our customers are a great source of inspiration to explore newer technologies and develop innovative services. Being a preferred telecom service provider for our customers has been a rewarding journey. We are committed to providing superior customer service and in turn enriching the lives of millions across geographies.

Management and Administrative Controls

Partners and Third Party Controls

Networks, Systems and Data Controls

eCommerce and Applications Controls

Governance and Regulatory Controls

Major Policies Implemented

Core components of Airtel’s Security Strategy

Bharti Information Security Policy

Bharti Third Party Security Policy

Bharti Infrastructure and Safety Policy

Lawful Interception Policy

Airtel Privacy Policy

Application Security Policy

35

36

our partners
Interdependence between processes and partnerships is an integral part of our corporate ecosystem. Recognising this interdependence, Airtel led the market in establishing unique partnerships with suppliers to explore superior technology, develop innovative services and deliver improved customer services. We were the first telecom company to explore partnership arrangements with global leaders by outsourcing our IT systems and networks. We signed our first partnership in March 2004, handing over our entire information technology management to IBM for the following 10 years. We work closely with our partners to ensure sound and sustainable procurement procedures built on the solid foundation of our company’s policies and principles. Fostering mutually beneficial and edifying working relationships for a common goal, and partnering with the best, are the hallmarks of Airtel’s business and sustainability strategy. Our approach is defined by the following governing principles: • Create a win-win situation for Airtel and the outsourced partner through a unique revenue sharing compensation structure • Institute regular and periodic planning and review while adhering to strong transition management

“The innovative outsourcing models pioneered by us have helped create a win-win situation between Airtel and its strategic partners. Goal alignment, pricing based on business outcomes and rewarding for superior customer experience are the hallmark of our enduring partnerships with some of the best known global players in the telecom arena.”
S Asokan – Executive Director Supply Chain

37

Our supplier ecosystem
Handset Handset Manufacturers Manufacturers Devices

Content & Information

Content Content Providers Providers E-commerce E-commerce and andecosystem Ecosystem Websites websites

Services & Applications

Technology Technology Providers Providers

Enabling Services & Platforms Equipment Equimpent Providers Providers Technology Technology Providers Providers Tower Tower Companies Companies

Networks

Telecom Telecom Operators Operators

Call Centers & Managed Services

• Ensure that the outsourcing contract motivates the partner to come up with innovative products and/ or services that support our sustainability initiatives • Implement outstanding contract governance and ensure trust, transparency and involvement of the partner at all stages • Create an ethical and sustainable supply chain. Recognising the socio-economic benefits of local procurement, we encourage sourcing from within the region’s economy. We have also started an exercise in consolidating our supply-chain base to make our engagement more focused and meaningful. Next in line is Airtel’s plan to adopt a framework honoring its commitment to sustainable procurement procedures. This is aimed at promoting underprivileged groups in society with a special focus on promoting women entrepreneurs and small businesses.

We currently work with over 99000 suppliers operating in diverse areas and locations, worldwide. Nearly 90% of our suppliers are based in India, and 82% of the procurement for the year, in terms of value, was from these India-based partners.

Selection of partners
Our partner selection process is governed by rigorous principles of transparency, honesty, equal opportunity, fairness and confidentiality. Policies, requirements and codes that guide our actions can be found on our website (www.Airtel.in/partner-world/index.htm). This platform, apart from managing end-to-end preselection, also facilitates strategic alignment, best practice sharing and helps suppliers with

38

common goals and interests to interact in a community ‘Partner Space’. It also enhances partnering through online communication, quicker resolutions, answering partners' queries online, and personalised attention to issues.

statutory/regulatory requirements and quality certifications. The performance on the scorecard is the basis of our partner’s annual reward and recognition.

Engaging with partners
We believe that communication is the life-blood of any partnership and seek to establish a transparent, trusting, two-way relationship with all our partners.

Partner satisfaction
We aim to consistently improve our relationship with our partners and increase their joy in working with us. We conduct extensive online surveys to gauge our suppliers’ satisfaction in a number of key areas. The feedback provided by these surveys is immensely valuable in helping us to improve our processes and cultivate longlasting relationships with our partners. For the past 3 years, Airtel has been consistently obtaining scores above 90% in partner satisfaction

Transparent and effective communication
Regular operational and need-based interaction are coupled with initiatives like: • Partnership meets – Are annual events that provide opportunities for partners to interact with the top management of Bharti Airtel. They also enable us to communicate our vision, mission, performance and business plans. Airtel is in the process of undertaking joint ventures with its business partners to implement various community initiatives. • Engagement meetings - Meetings are held frequently to communicate and discuss Trends and Analysis, Product Innovation, Technology Roadmap, Scorecard-based improvement plans, specific issues and/or grievances. In order to broaden the scope and maximise engagement, Airtel will soon provide partner forums to address issues relating to sustainability.

Partner grievance handling
We consider it extremely crucial to address partner grievances in a transparent and structured manner. All grievances are monitored and reviewed by the Supply Chain Council comprising of senior members of the supply chain function. Issues related to ethics and integrity are handled as per the Ombudsman Process drafted in the Bharti Airtel Code of Conduct.

Building a responsible and sustainable supply chain
One of the important parameters of supplier selection at Airtel is the supplier’s achievement of management certifications such as TL9000, ISO 9001, ISO27001, ISO 14001, OHSAS18001 and RoHS. We believe that organisations that follow accepted practices and procedures are more likely to create reliable products in an environmentally and socially responsible manner. Suppliers with certifications for high standards in their areas of expertise are preferred, and those seeking certification are assisted in undergoing a certification programme within a defined period. Our Business Standards of Conduct includes (but is not limited to) such areas as compliance with applicable laws, ethical competition, non-

Partner rewards and recognition
Partner performance, in a way, is a reflection of Bharti Airtel’s own performance and ability to satisfy its customers. Our half-yearly Partner Scorecard, which is given to selected partners, provides feedback about their performance on several parameters. These include the quality of products and services through the entire life cycle, consistent and on-time delivery, continuous improvement through product innovation and new technology, competitive advantage, and compliance with

39

discrimination against employees, prohibition of child and forced labour, safe working conditions, compliance with environmental laws, accuracy of financial records, and avoidance of conflicts of interest. Airtel encourages its partners to publicly disclose their performance on environmental, social,

and governance measures. We are also working with our procurement team to embed corporate responsibility clauses in our contracts. Standard conditions of contract require supplier adherence to laws relating to human rights, forced and child labour which are also periodically monitored for compliance and necessary action.

40

our planet
Our planet has never needed a more focused and enduring effort at preservation as it needs today. Increased use of telecommunications technology presents a number of opportunities to reduce emissions and waste. At Airtel we continuously evaluate the impact of the services offered by us, and our infrastructure partners, on resource and energy consumption, greenhouse gas (GHG) emissions and waste handling procedures. This helps us in developing innovative solutions that minimise negative environmental effects. We encourage our employees to reduce energy consumption and waste.

State-of-the-art technological adoptions, best in class infrastructure deployment and a customer focused approach are key enablers to provide best in class customer experiences. Our responsibility goes beyond providing superior quality of service to our customers. We take cognizance of the risks we face as a planet and consciously strive to reduce our impact on the environment. We work with our partners and infra providers to reduce our carbon footprint and bring integrated responses to sustainability challenges.
Jagbir Singh – Director Networks

Energy and Climate Change
Reducing the negative impact of telecom infrastructure on the environment
Our commitment to the environment, energy efficiency and concern for the planet goes all the way back when a decade ago when Airtel promoted the concept of telecom passive

41

Some of the planned interventions in this area include: • Powering of switching centres with renewable energy solutions - Currently we have commissioned one solar plant of 100KWP at one of our main switching centres (MSC), resulting in a significant reduction in energy consumption of 0.15 million units per annum. We are planning to replicate this in our other MSCs with 300 KWP solar power plants. • Conversion of over 5000 additional sites to solar power, 100 sites to Biomass and 50 sites to Hybrid battery solutions.

Infrastructure sharing to the world. The formation of various telecom service providers like Indus, Infratel and others resulted in a reduction of the collective carbon footprint of the entire industry. 68%, of the incremental sites in 2011-'12 are deployed on sharing. Currently over 70 percent of the mobile towers face grid outages or erratic power quality in excess of 8 hours a day leading to network outages. To address this demand-supply gap, telecom tower operators currently use diesel generators, batteries, and a variety of power management equipment. This has an adverse affect on the climate as well as hits the profitability of the operators. This challenge re emphasises the need to increase focus on usage of renewable energy. With this approach we have worked with our partners to successfully transition around 2000 tower sites to solar energy. We are also exploring the possibility of using renewable energy solutions such as solar, wind and biomass-based energy in areas with technical feasibility.

These initiatives upon implementation are expected to save energy consumption, grid or diesel, by approximately 25 million KWH • Conducting trials to tap wind energy at various sites. In addition to this, various energy saving initiatives were undertaken by our infrastructure partners over the years and in 2011 in particular these included; • Green shelter: This unique shelter with optimal cooling, power and thermal management systems minimises the running of back-up systems like DG sets, reducing energy consumption by up to 40% • Reduced power consuming BTS: We, along with our telecom equipment manufacturers, have been working to develop BTS with reduced power consumption (1 to 1.2 kW from 2 to 3 kW) which, apart from energy saving, enables the usage of renewable energy such as solar energy, which would have been difficult to implement due to high load. Our concerted efforts, in the last 5 years have enabled us to reduce power consumption per BTS by 60%. • Network deployment with Outdoor BTS: An outdoor base station does not require airconditioning which typically accounts for 35-

The largest rooftop solar power plant in the Indian telecom industry at Gangaganj, Lucknow, with an aim to save 26,000 litres of diesel per annum.

42

40% of the total power consumption. 67% of the incremental BTS sites in the year 2011-12 were installed outdoor with an aim to increase it to 75% in 2012-13. • Auto TRX shutdown feature at existing sites: Traffic at our cell sites varies with time. During non-peak hours some of the TRX can be switched off to reduce the power requirement at existing sites. With help from our partners, we have successfully installed this technology in nearly 60,000 sites across our network. This has helped reduce power consumption in these sites by 10-15% during lean traffic hours.

Project P7 by Bharti Infratel is scoped for approximately 24,000 tower sites (primarily rural areas having low or no grid power availability) aiming to reduce carbon dioxide emission by around 1,50,000 MT per year. In addition to this, Infratel is exploring avenues for implementing fuel cells in Haryana and bio-mass based electricity generation in Bihar and Rajasthan. This project already holds the unique distinction of being one of the largest of such initiatives around the world, while also creating the largest green footprint in India, of any telecom tower company.

with Renewable Energy Service Companies (RESCO’s) in its efforts towards community power development along with powering its towers using renewable energy in rural areas.

Emission performance
Project “Green City” with Indus aims at managing network operations by eliminating Diesel Genset running at the site by augmenting electricity supply/battery bank/ other technology initiative (deployment of FCU, inverter and other technical solutions) without compromising on network connectivity. Always committed to run its services in an environment-friendly manner, in FY 11-12 Indus added five major Green Cities viz., Mumbai, Kolkata, Ahmedabad, Chandigarh and Kota, and three towns: Patan, Palanpur and Gandhinagar. Approximately 15% more sites will be converted based on technical and environmental feasibility within the next year.
Emmision in Tons of CO2 per Tera Byte

25.0 20.0 15.0 10.0 5.0 2010-11 2011-12
10.1 12.9 12.1 8.3 Diesel

* Erlang utilized to MB conversion factor of @ 0.1118

In its endeavor to build a greener network, the company has been constantly working with the partner tower companies towards reduction of Green House Gases. Resultantly, the CO2 emission from the Base Transceivers Stations has been reduced by around 11% in the year 2011-12 as compared to 2010-11.

Supplementing these, our infrastructure partner, Bharti Infratel has signed a Memorandum of Understanding with GSMA, earlier in March 2012, to develop and promote green technologies for telecom tower infrastructure in India to convert 1,000 Bharti Infratel towers into green sites and reduce CO2 emission by around 11,000 tonnes. Further, Bharti Infratel is partnering

Meanwhile, we attach great importance to our electromagnetic field radiation (EMF) management to ensure our radiations are under the prescribed limits. The International Commission on Non-Ionizing Radiation Protection (ICNIRP) has prescribed the safe limit to be followed for the electromagnetic radiations. Department of Telecommunication in India has

43

Grid

adopted standards which are 10 times more stringent than the ICNIRP standards. Airtel complies with these radiation standards and has already submitted its compliance certificates for all operating sites to DoT. Airtel has also successfully passed compliance audit conducted on more than 3127 by the TERMS cells of DoT till March 31st 2012.

Reduction in energy consumption of almost 11.4 million KWH and water by about 31.2 million litres due to facility consolidation

Reducing negative environment impact in our operations
We have been actively promoting green operations and offices, and mobilising our employees to create a ‘Green Workplace’. Our efforts range from encouraging the use of information technology solutions at the workplace on one hand, to the usage of energy efficient air-conditioning and lighting systems on the other. A number of initiatives have been implemented over the past few years and, particularly in 2011, to reduce energy consumption and optimise resource utilisation in our facilities and data centres. • Creating environment friendly buildings: With the aim of reducing our environmental footprint, optimising resources and providing an enhanced employee experience, we initiated a project a few years back to consolidate our facilities. This endeavour resulted in the setting up of six 'One Airtel' campuses developed on Efficient HVAC design, building insulation, provision of daylight harvesting and robust Building Management Systems (BMS) controls. Various initiatives were deployed in these campuses to reduce the impact on the climate, like: • Deployment of more efficient air conditioning, Sewage Treatment Plant (STP) • Ground water re-charging and use of preused water for gardening. • Installation of advanced air cooled chillers to conserve water • Installation of LED lamps and efficient use of lighting • Robust monitoring and detailed analysis of energy consumption • Deployment of photovoltaic solutions in facilities • Awareness campaigns within employees

The new campus of Airtel in Lucknow is a standalone ‘built to suit’ state-of-the-art building, designed to specific needs. The building’s built-up area is 80,000 square feet, a 36,500 sq ft plot. The building has been registered for green building certification under LEED, New Construction, from CII-India Green Building Council, Hyderabad. Airtel’s Lucknow campus will be the first GOLD-rated LEED building in Lucknow and the first LEED certified building of Airtel. In 2011-12, this initiative have led to approximately 10% reduction in energy consumption and approximately 30% reduction in the consumption of domestic water.

• Reducing environmental impact in our data centres: Energy consumption at our data centres is a constant challenge in our business. Over the years, our efforts have been focused at driving efficiency in ICT equipment (servers, storage, and IT networks) and also optimising our facility’s operations at our data centres. Several energy efficiency initiatives were undertaken last year to reduce our carbon footprint. These include: • Implementation of server virtualisation and blade technology • Installation of cold aisle containment in the rack space area • Reorganisation of air-conditioning units • Rationalisation of UPS load • Installation of motion sensors • Reduction of set point temperature These initiatives, apart from energy conservation, have led to better space utilisation and reduced e-waste. In addition to this, we have also been focusing on optimisation and consolidation of our data centres and strategically locating them in areas with consistent grid supply.

44

In 2011, our captive diesel-based total energy expenditure was approximately 3.3% of the total expenditure. Moreover, our data centre consolidation efforts over the past few years have led to a reduction in sq ft space by approximately 35%.

management based secure printing solution to automating our intra-office approval processes, thus significantly reducing paper consumption. Across the company, we prioritise the use of telecommunication services like teleconferencing and video-conferencing to effectively minimise our own business travel. The initiative of sending e-bills over the last 3 years has helped us convert 2.42 million postpaid customers to the e-billing mode. This directly translates to saving 80,000 trees from being cut. • • Nearly 30% reduction in organic waste in Airtel centre Nearly 8 tonnes paper saved through secured and duplex printing solutions

Annualised energy saving in 2011 of 8.5 million KWH in Data Centre operations

Trend of diesel energy expenditure of total energy expenditure in data centres FY 2009-10 10.06% FY 2010-11 5.72% FY 2011-12 3.29%

Waste management and resource optimisation
As the population, and the industry, continues to grow, the amount of waste collectively generated by us places a burden on the planet. Our efforts are focused toward minimising the waste generated by our operations by ensuring end-toend traceability and recycling of both physical and e-waste generated.

Reduction through e-waste management
Consistent technology upgradation and capacity augmentation leads to a significant amount of e-waste generation by businesses. For us e-waste is any type of electronic components, telecommunication equipment, IT hardware and other miscellaneous electronic items. We aim to minimise the generation of e-waste through awareness campaigns for our employees and extended use of our network and IT equipment. We also ensure that all our e-waste is recycled as per Waste Electrical and Electronic Equipment (WEEE) norms. In 2011-'12, e-waste of around 226 tonnes generated was disposed off through recycling facilities.

Reduction through e-billing and equipment reclaim initiative
Our focus has always been on building best-inclass digital assets, across the organisation’s suite of services. Additionaly our user-friendly payment gateway reduces the use of paper, by means of online payments and electronic bills. In 2011 we reinforced our drive to reclaim Digital TV set top boxes at the time of service termination. The returned boxes are quality tested and recycled for rental to our Digital TV customers.

Innovative services that reduce negative environmental impact and carbon footprint
As a leading telecom provider in India we understand our responsibility to operate in an environmentally sustainable way by developing, promoting and utilising resource-efficient and environmentally friendly services for our customers. Today, ICT solutions from our B2B business are creating new revenue opportunities by helping other industries to reduce carbon emissions.

Building an electronic office culture
The main aim of this initiative is to develop a working environment that minimises negative environmental impact by adopting electronic solutions at each stage. This endeavour ranges from the installation of an automated queue

45

Some of these include: • The Digital Media service from Airtel is a media exchange platform that connects all the content owners, content production facilities and screens (DTH, computers, mobile phones, digital signage, digital cinema theatres and the like).This creates an ecosystem of media entities, aiming to eliminate the use of tapes, reels and CDs, for an eco-friendly and green environment. It also helps save the fuel that is required to transport media devices, thus reducing carbon emissions. • Airtel pioneered GPS-based tracking solutions with the launch of TrackMATE, which allows for the monitoring of delivery vehicles en-

route, leading to better productivity through faster delivery of goods and reduction in fuel consumption. • We have collaborated with seven other network and managed service providers across the world to launch the first video services of the Open Visual Communications Consortium (OVCC). OVCC will open the door to faster decisions, easier collaboration with partners and customers and streamline supply chains. This will also expand the reach of distance learning programmes and tele-medicine in rural and underserved areas. We will continue our sustainability endeavours to make the planet a better place to live in.

46

our people
At Airtel we believe that ordinary people can achieve extraordinary things when they work together. Every problem, big or small, can be solved when a committed, intelligent and passionate team comes together to address it. We work unsparingly to harness, nurture and grow what is arguably our most precious resource: human capital, or in other words ‘Our People’. We believe that our success depends on our ability to continuously develop our employees’ skills, knowledge and experience. Our Values of being Alive, Inclusive and Respectful drive our culture of service, integrity, trust, teamwork and accountability. These not only create an environment for the individual to prosper in, but also provide a framework to transform into a more efficient, agile, innovative and entrepreneurial organisation. With this approach, in 2011, we restructured our business and took the proactive step of creating an integrated ‘One Airtel’ culture. We engaged our entire workforce of 13124 employees along with 1636 new hires in this process of restructuring through effective communication and post-integration management via crossbusiness immersion programmes, visioning

People form the core of our Sustainability Focus - as we are clear that we can build a Sustainable Organisation only if we have sustainable development of our human resources. Keeping the core DNA of our organisation of ‘Entrepreneurial Spirit’ as the pivot, we have a long-term plan to continue to grow and develop our people across all dimensions - personally, professionally and as a member of the community.
Krish Shankar – Executive Director, Human Resource

workshops and new leader assimilation sessions, all bundled under an umbrella programme called ‘Project Navigate’ . Being an equal opportunity employer, Airtel’s workplace practices are designed to provide an inclusive environment in which every employee can participate, contribute and develop freely and equitably.

Creating an inclusive and diverse work environment
To nurture workforce diversity, with a particular focus on gender, we have implemented practices

47

and support systems that specifically address the requirements of our women employees. Our Diversity Council comprises of seven crossfunctional senior women leaders who provide strategic direction and also monitor diversity practices centrally. Apart from this committee, group and regional level committees have also been set up to prevent sexual harassment and abuse at the workplace. To uphold fairness and neutral handling of issues with adequate follow-up and corrective action, each regional committee has an external non-Bharti representative along with elected women. We are currently in the process of devising our diversity metrics and developing our diversity policy. To drive our diversity focus and commitment, these are the various initiatives we undertook in 2011-'12: Celebration of womanhood - A social and well-being initiative focusing on women’s interests in the areas of health awareness, community service, self-defense and parenting workshops, fun and festival events etc. Women’s Mentoring Programme - aimed at high potential, middle management women employees, it has catapulted 24 women to the senior management level already.

In addition, these family friendly work options and facilities were initiated for all employees : Flexible work timings, work from home, remote locations and part-time for a specified period. This option has been exercised by many employees, particularly by those with young children or aged parents or during childbirth. • A six month sabbatical leave policy is applicable in case of personal exigencies, or a year in case of opting for further education • Availability of amenities and conveniences at Airtel Centre like day-care centre (supporting working parents), grocery shopping, gymnasium and spa (promoting fitness), travel desk and concierge, food court and cafeteria etc.

Women’s Health and Safety – We reinforced our commitment to this important task with several initiatives, namely: » I Dare – Self-defense training workshops for women » Extended maternity leave of up to 6 months and the provision of flexible work options on return from maternity leave » Updation of travel policy that upholds women’s security and comfort under all circumstances. Safe and flexible early morning or late night travel along with the provision of safe and guarded accommodation during outstation travel

Talent development and engagement
Employee engagement and talent development are key strategic objectives of our business. The following standard practices of engagement and development are practiced across the organisation:

Employee Communication Forum (ECF)
The quarterly Talk Time and Town Hall provide a platform for the management to share business achievements and plans. Several mechanisms are used, including Skip Level meetings, informal coffee sessions and floor walks with senior leadership, facilitating more personal interactions.

48

Interactive electronic forums
Interactive electronic forums like intranet communities, periodic intranet surveys, voice and intranet blogs and regular communication mailers. These initiatives have a sustained top management commitment. For example, on the voice blog, the CEO frequently leaves a blog for the employees on diverse topics.

Employee mentoring
In addition to the regular programme of mentoring top talent by the Airtel Management Board (AMB), the reverse mentoring programme was initiated about 10 years back with an approach to turn the old paradigm of mentorship into a higher and more effective collabourative effort. As part of the programme, senior leaders from across the country are paired with young managers hired from the top B-schools of the country, based on shared interests. The discussions range from topics like downloading apps, fashion trends, and the latest gadgets, to hard business strategies. Today, with over 20 active pairs nationally, this programme has helped senior management to master new skills in emerging fields and young managers to benefit from the experience of senior management. With a Gallup employee engagement score of 84th percentile, Bharti Airtel leads in the telecommunication industry category in the Great Place to Work® Institute’s Study, and is ranked 5th in the 25 AON Hewitt Best Employers of 2011 study. which facilitate social inclusion, have a diverse customer base. This diversity is not only reflected in our customer base, but also in the Airtel team working in these businesses. While our Airtel Money product has employees with finance industry experience, our mHealth team has medical professionals contributing to its roll out. We also leverage our presence across the length and breadth of the country, with regional offices across India. There is a healthy exchange of talent between geographies and the centre, which is the hub of new product development. • Young Leaders (YL) programme: With an objective to create a talent pool to achieve superior business results and organisational 3D initiative and Data Capability building initiative on I seek platform 39970 certifications were done by employees, amounting to about 240,000 person hrs of learning.

Talent development and retention
At Airtel, we follow a 70:20:10 principle for employee development – we believe 70% of development happens on the job, 20% through participation in cross-functional projects and the remaining 10% through classroom-based training programmes. To ensure that every employee customises his development plans based on his career aspirations, we developed a process of Development Action Plan (DAP). This provides an employee a platform to identify areas of strength and opportunities for development as per Airtel Leadership competency framework. There have been various initiatives undertaken to build employees’ functional/behavioral capabilities and create a strong talent prospect for leadership and critical roles • Building capability within our emerging businesses: Airtel has always been at the forefront of product innovation, through offerings that have a direct impact on customers’ lifestyles. Our products and emerging businesses like Airtel Money, mHealth and mEducation

Each employee received an average of 16 hours of training • Over 5000 hours of Executive Management training including training organised by top business schools like INSEAD, ISB Hyderabad and IIM Ahmedabad Around 60,000 hours of leadership and competence-building training in over 60 programmes

•

49

growth, the YL Programme was initiated a decade back to identify potential leaders to be future senior managers of Bharti Airtel, and provides a framework for career and succession planning for the management cadre in the company. In this process, every year top talent is identified from premier business schools in the country and trained intensively for 6 months before being assigned a challenging role. We currently have more than 150 YLs who work in different functions and geographies. • LeAP: Structured development programmes called B-leap and E-leap groom talent for leadership roles in middle and top management. Business Leader Acceleration prepares them for critical national functional roles. Emerging Leader Acceleration Programme (ELeAP) looks at building critical skills (like leadership, conflict resolution, effective collaboration etc.) through a mix of workshops and action learning activities for developing first level business leaders. • iSeek learning platform: To provide easily accessible e-learning to all Airtel employees, and empower them in their endeavour to develop themselves, the iSEEK e-learning and online assessment portal was launched in December 2011. The ease of customisation makes the portal powerful in its features and adaptability for the evolving needs of the organisation. • IRIS: Developed in Gurgaon to serve as a centralised facility for all training and workshops, IRIS, created with a vision of building capabilities, is a centre of excellence that enhances business and personal competitiveness.

Attrition of High Performers has been stable at approx 10% (annualised).

Our reward and recognition framework
To make sure that our awards enable us to motivate employees - to walk the talk when it comes to fulfilling our vision of the customer experience and matches our organisation’s values - we reworked our reward framework this year. Apart from the planned awards for completed projects or outcomes which have positively impacted our vision, we developed ‘instant recognition’ to increase the coverage and also enable peer recognitions. These awards range from within-the-function to interfunction recognitions.

Building an entrepreneurial culture
At Airtel, entrepreneurship is the most important competence an employee has to exhibit in his work. The Airtel entrepreneurial policy supports employees who want to pursue their own entrepreneurial journey, by assisting eligible employees at various levels through Mentoring by Airtel senior leadership, financial assistance, branding support, managerial and organisational guidance, as well as preferred vendor access and assured purchases, to embark on their own

Our Coverage • Instant Functional Recognition- 20 % of the population • Instant Cross Functional Recognition- 10% of the population • Planned Recognition- Approximately 30% of the population

Rohit Marwa, 2001 batch Young Leader is now VP-Marketing for one of our largest circles – KTN. Apart from him, there are 5 such young leaders from various year batches who are in Senior Management roles

50

ventures. This policy is governed and monitored by an independent cross-functional committee of senior management, the Airtel Entrepreneur Board, which rigorously evaluates all proposals based on the policy criteria. So far, 6 employees have benefited from this initiative and have successfully embarked on their entrepreneurial journey, setting themselves up as examples for others to emulate.

Fostering an ethical work culture
The Bharti Code of Conduct helps ensure that we continue to build a workplace culture that fully reflects the Bharti values of trust, mutual respect and personal growth for all. The code of conduct encompasses a wide array of issues pertaining to workplace conduct, dealing with outside parties, protecting company assets, and community responsibility. Regular training programmes are conducted across locations to explain and reiterate the importance of adherence to the code. Employees have to annually reaffirm their compliance to the code of conduct. Our Ombudsperson Policy outlines the method and process for stakeholders to voice concerns about any unethical conduct. The Ombudsperson administers a formal process to review and investigate all concerns and undertakes all appropriate actions required to resolve the reported matter. Instances of serious misconduct dealt with by the Ombudsperson are reported to the audit committee. All the employees of the Company as well as partners and any person who has a grievance with respect to the Company has full access to the Ombudsperson. In addition to this, we have a Consequence Management policy to deal with violations of the Code of Conduct, company policies and guidelines, financial impropriety including bribery or corruption and misreporting or non-reporting of critical information.

Amongst the many dreams that I had dreamt, one of the fondest was to start my own venture ‘Painless’ - a digital marketplace where customers with healthcare needs could discover and transact with relevant brands. Airtel’s support under the Airtel Entrepreneurship Policy, made it possible for me to realize a longcherished dream in 2012. They equipped me with not just the professional capabilities to create this venture but also believed in me, which is the most important thing of all. Thank you Airtel! Ritu Soni – Stared her business venture in 2012

Our commitment to health and safety is driven by the following policies that provide a comprehensive framework for effective investment in health promotion and disease prevention activities at all levels of the business: • Health and Safety Policy • Health Checkup policy • HIV AIDS policy We are in the process of aligning our safety approach and systems to the leading international practice standards such as the Occupational Health and Safety Management Standard OSHAS18001 and ISO 31001 for risk management. Looking at the health and safety risks involved in field operations we prioritised our cable laying process within cities for OSHAS18001 certification. We aim to operate with no new cases of occupational illnesses, as well as improve and maintain the wellbeing of our employees and contractors. Our long term strategic goal continues to be to promote a healthy organisation to increase our performance and improve the work life quality and safety of the employees. In the near future Airtel plans to provide a more structured approach for employee

Developing a safe and healthy workplace
Employee health and safety is an inherent part of our responsibility towards our employees. We know that employees who are mentally and physically healthy are more likely to be engaged, committed and productive in all aspects of life.

51

involvement in the sphere of sustainability issues. Also, to engage more of its people in the realm of sustainability, we plan to incorporate sustainabilitycentric Key Performance Indicators (KPIs) into our employees’ appraisals. We have also extended our

awareness programmes to go beyond fostering a safe and healthy workforce, to wider health issues which impact our people inside and outside the workplace, including fatigue, weight management, smoking, stress or substance abuse.

52

global initiatives
Airtel Africa's innovative project in Kenya, dubbed ‘Sauti ya Mkulima’ (Swahili for 'Voice of the Farmer'), aims at providing farmers access to specific agriculture-related information, to help them increase the productivity of their yield, and their potential income. As part of the partnership, the GSMA mFarmer initiative - supported by US-AID and the Bill and Melinda Gates Foundation - has awarded Airtel US$ 400,000 to be used towards this project. The funds will be used to develop a reliable database of content and set up the technological capabilities to execute the project with the help of world-class technology and content service providers. Airtel is exploring alternative forms of power supply in Africa, which include hybrid battery banks and solar/ wind power. Over the last few months, 105 solar sites have already been set up in Nigeria, reducing the use of diesel generators from 24 hours a day to 3 to 4 hours a day. By 2013, Airtel aims to completely eradicate the constant use of diesel to power its network. » 60% of the network towers transition to hybrid battery banks from diesel. • • • • • Infrastructure refurbishment School uniforms Furniture Books and teaching aids ICT and broadband connectivity Further, Airtel is committed to changing Tanzanian lives through book distribution. Airtel is working with the government through the Ministry of Education and Vocational Training to improve education facilities and raise the standard of education. Airtel Ghana, as part of its Corporate Social Responsibility initiatives has funded the construction of a purpose-built Clinical Teaching Facility and Diagnostic Centre for the School of Medical Sciences, University of Cape Coast, with the aim of bringing the benefits of medical sciences to more recipients. Airtel has partnered with the Earth Institute, a non-profit organisation, to provide connectivity to 8 villages, called Millennium Villages, in 6 countries in Africa. This partnership supports the following three initiatives that work through SMS and data connectivity via mobile phones. » Child Count - an application that aims to use mobile telephone technology to improve the delivery of health care. It is a mobile health platform developed by the Earth Institute to empower communities to improve child survival and maternal health using the mobile phone. » Connect to Learn - Placing specific emphasis on girls, to address special challenges they face in getting enrolled in school and staying in school, this is a specific programme with Millennium

Airtel Africa’s ‘Our School’ programme is a schooladoption initiative under which currently 31 primary schools have been adopted in rural areas of 17 African countries. Functioning closely with the governments in these countries, it works towards improving the quality and delivery of education to children, especially those belonging to underprivileged sections. Currently, these adopted schools cater to more than 16,000 underprivileged children. This programme has a unifying identity and provides the following:

53

Villages and targeted to implement information and communications technology in schools to enhance their quality of education. » Shared Solar – This is an initiative that uses a Modular Solar (or Hybrid) powered system that can power the basic electrical needs of up to 20 consumers, with each customer connected to the system with a dedicated wire. » Nokia Education Delivery (NED): Airtel Africa, in collaboration with Nokia, has developed an ICT based initiative, Nokia Education Delivery, to provide broadband connectivity to rural schools both in Nigeria and in Kenya. Through this programme mobile based training sessions are delivered to teachers in remote schools. Airtel Sri Lanka has taken various initiatives to embed sustainability into their operations. Its relentless pursuit of deploying Hybrid DG, Free cooling units instead of air-conditioners and Intelligent TRX power shut-down are all aimed at conserving power and energy. Tower consolidation and reduction of emissions are some other practices adopted by Airtel that positively impact the community. The use of Microsoft Lync to conduct training via video calls, and tower infrastructure sharing ensures a greener, cleaner environment and cost-effectiveness. Airtel also spearheaded a drive to collect dry rations for the flood victims. In its efforts to address the social evil called child abuse that affects societies at large, Airtel is launching a booklet that aims to address the issue of child abuse and neglect from a multidimensional perspective. Airtel has partnered with the Sri Lanka College of Paediatricians (SLCP) for this effort. Raising awareness and teaching children how to protect themselves, is only the first of many methods which have been identified and launched and many more projects are to be launched in the near future to ensure that the country becomes a better place for children to live in. Bharti Airtel Lanka’s association with Mithuruwela - a non-profit organisation aims at supporting cancer patients and support their families. Airtel Bangladesh has been actively promoting the Millennium Development Goal ‘Primary Education for All’ by supporting Jaago Foundation’s initiative. Through this initiative employees raised funds for underprivileged children by selling flowers in Dhaka.

They have collaborated with Jaago Foundation for the contribution of Voluntary and Development works for betterment of the society. Employees also participated in a blood donation campaign for Shondhani, a voluntary organisation run by medical and dental students of Bangladesh. Bharti Airtel Lanka’s association with Mithuruwela - a non-profit organisation aims at supporting cancer patients and support their families in Sri Lanka. Through the ‘Go Green’ campaign saplings were distributed to 200 corporate houses. A unique telecommunications-based digital system has been designed to deliver weather alerts and vessel tracking capabilities specifically for the fishermen’s community residing in Bangladesh’s coastal areas. This initiative is supported by CARE Bangladesh, Oxfam, and Campaign for Sustainable Rural Livelihoods (CSRL) and Centre for Global Change (CGC). In addition to this, several initiatives have been undertaken over the years to reduce our carbon footprint. Some of these are : • Installation of low power consuming BTS equipment - Power consumption reduction to 0.7 KW ~ 0.8 KW against the traditional 1.5 KW with the same configuration. • Outdoor BTS - 75% of Airtel’s sites in Bangladesh have been installed in the outdoors and by deploying 380 FCUs (free cooling units), 25% less power is consumed at every site. To sum up, no matter where we are; city, country or continent, Airtel’s unfailing pursuit of positively impacting the community environment is always at the heart of all that we do.

54

Independent Assurance Statement and GRI Index

GRI Indicators Index
Strategy and Analysis
Profile Disclosures Description Reference Reported Page

4.9 4.10 4.11 4.12

Procedures for board governance on management of sustainability performance Processes for evaluation of the board’s sustainability performance Precautionary approach External charters, principles, or other initiatives Memberships in associations Stakeholder groups Stakeholder identification and selection Approaches to stakeholder engagement Key topics and concerns raised through stakeholder engagement

AR SR WB WB SR SR SR SR 13 11-13 11-13 11-13 11-13

1.1 1.2

Statement from the most senior decision maker Key impacts, risks and opportunities

AR SR AR

-

Organisational Profile
Profile Disclosures Description Reference Reported Page

4.13 4.14 4.15 4.16 4.17

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10

Name of the organisation Brands, products and/or services Operational structure Headquarter location Countries in operation Nature of ownership Markets served Scale of organisation. Significant changes regarding size, structure, or ownership Awards received

SR SR AR SR SR AR AR SR AR SR

03 05 03 03 04 08

STANDARD DISCLOSURES PART II: Performance Indicators
Economic
Profile Disclosures Description Reported Page Reference

DMA ECONOMIC EC1

Disclosure on Management Approach

AR

-

Report Parameters
Profile Disclosures Description Reference Reported Page

ECONOMIC PERFORMANCE
Direct economic value generated and distributed Financial implications due to climate change Coverage of the organisation’s defined benefit plan Financial government assistance Entry level wage compared to local minimum wage Locally-based suppliers SR AR AR AR SR 04 38

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13

Reporting period Date of most recent previous report Reporting cycle Contact point for questions Process for defining report content Boundary of the report Limitations on the scope or boundary of the report Joint ventures, subsidiaries, and outsourced operations Data measurement techniques Effects of re-statements of information provided in earlier reports Significant changes in the scope, boundary, or measurement methods GRI content index External assurance

SR NA SR SR SR SR SR AR SR SR

Content

EC2 EC3 EC4 EC5 EC6 MARKET EC7

Content Cover

11-13
Content

Content

MARKET PRESENCE
Local hiring -

61 59
Profile Disclosures

INDIRECT ECONOMIC IMPACTS
EC8 EC9 Infrastructure investment and services for public benefit Indirect economic impacts SR 15-28 -

Environmental
Description Reference Reported Page

Governance, Commitments and Engagements
Profile Disclosures Description Reference Reported Page

DMA

Disclosure on Management Approach

SR

41

ENVIRONMENTAL PERFORMANCE
EN1 EN2 ENERGY EN3 EN4 EN5 EN6 Volume of materials used Recycled materials -

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8

Governance structure Indication whether chairperson is also executive officer Independent members at the board Mechanisms for shareholders and employees to provide recommendations to the board Linkage between executive compensation and organisation’s performance Processes to avoid conflicts of interest at the board Expertise of board members on sustainability topics Statements of mission, codes of conduct, and principles

SR SR SR WB SR AR SR SR

13 13 13 51-52 51-52 3,4,7

ENERGY
Direct primary energy consumption Indirect primary energy consumption Energy conservation Initiatives for energy-efficiency and renewable energy Initiatives for reducing indirect energy consumption SR SR SR SR SR 41-46 41-46 41-46 41-46 41-46

EN7 WATER EN8 EN9 EN10

WATER
Total water withdrawal Effect of water withdrawal Water recycled and reused -

SR: Sustainability Report AR: Annual Report 2011-12 WB: Website (www.airtel.in)

59

Human Rights
EN11* EN12* EN13* EN14* EN15* Land assets in or adjacent to protected areas Impacts on biodiversity Habitats protected or restored. Strategies for biodiversity Endangered species HR1 HR2 HR3 SR SR SR SR 43
41-46 Profile Disclosures Description Reported Page Reference

DMA

Disclosure on Management Approach

WB/AR

-

INVESTMENT AND PROCUREMENT PRACTICES
Investment agreements Supplier screening on human rights Training on human rights SR WB 39 -

EMISSIONS, EFFLUENTS AND WASTE
EN16 EN17 EN18 EN19 EN20 EN21 EN22 EN23 EN24* EN25* EN26 EN27 EN28 Transport EN29 EN30 Greenhouse gas emissions Other greenhouse gas emissions Initiatives to reduce greenhouse gas emissions Emissions of ozone-depleting substances NOx, SOx, and other air emissions Water discharge Waste by type and disposal method Significant spills Waste deemed hazardous under the terms of the Basel Convention Impacts of discharges and runoff on biodiversity Initiatives to mitigate environmental impacts Packaging materials Sanctions for noncompliance with environmental regulations

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
HR4 HR5* Incidents of discrimination Freedom of association and collective bargaining -

45 41-46

CHILD LABOUR
HR6 Child labour -

FORCED AND COMPULSORY LABOUR
HR7 HR8 HR9* Forced labour Training for security personnel Violations of rights of indigenous people -

Society
Profile Disclosures Description Reported Page Reference

-

DMA

Disclosure on Management Approach

SR

14

LOCAL COMMUNITIES
SO1 Impact on communities SR 14-28

TRANSPORT
Environmental impacts of transport Environmental protection expenditures SO2 SO3 SO4
Reference Reported Page

CORRUPTION
Corruption risks Anti-corruption training Actions taken in response to incidents of corruption. AR AR -

Labour
Profile Disclosures Description

PUBLIC POLICY
SO5 Public policy positions and participation in public policy development WB -

DMA LA1 LA2 LA3 Labour/ LA4* LA5

Disclosure on Management Approach

SR

47

EMPLOYEMENT
- Workforce by employment type Employee turnover Benefits to full-time employees SR SR AR 47 50 SO8 2 Months Profile Disclosures

ANTI-COMPETITIVE BEHAVIOR
SO6* SO7 Donations to political parties and politicians Legal actions for anticompetitive behavior Sanctions for noncompliance with laws and regulations AR -

LABOUR/MANAGEMENT RELATIONS
Employees with collective bargaining agreements Minimum notice period(s) regarding operational changes

Product Responsibility
Description Reference Reported Page

OCCUPATIONAL HEALTH AND SAFETY
LA6 LA7 LA8 LA9 Workforce represented in joint health and safety committees Occupational diseases, lost days, and number of fatalities Training on serious diseases Trade union agreements on health and safety SR SR SR 51 51 51 -

DMA

Disclosure on Management Approach

SR

05

PRODUCT AND SERVICE LABELING
PR1* PR2* PR3* PR4* Health and safety impacts along product life cycle Non-compliance with health and safety standards Product information Non-compliance with product information standards Customer satisfaction Marketing communication standards Non-compliance with marketing communication standards Complaints regarding customer privacy SR WB SR SR 44 32 35

TRAINING AND EDUCATION
LA10 LA11 LA12 Training per employee Programmes for lifelong learning Regular performance and career development reviews SR SR SR
48-50 48-50 48-50

PR5 PR6 PR7 PR8

DIVERSITY AND EQUAL OPPORTUNITY
LA13 EQUAL LA14 Composition of governance bodies SR
48-49

EQUAL REMUNERATION FOR WOMEN AND MEN
Gender pay disparity SR 47 PR9

COMPLIANCE
Sanctions for noncompliance with product and service related regulations -

60