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Telstra Report

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SUSTAINABILITY
AT TELSTRA
Bigger Picture 2014
Sustainability Report

Sustainability at Telstra

Contents

CONTENTS

About us
Chairman and
CEO message
Sustainability
scorecard
Sustainability
highlights
Our
approach
Strategy
infographic

03
04
05
06
07
08

Stakeholder engagement Key issues 09
10
11

Click on page links

Transparency and accountability Bigger Picture 2014 Sustainability Report 2

Sustainability at Telstra

About us

ABOUT US

Our business
Telstra is Australia’s leading telecommunications and information services company, offering a full range of communications services and competing in all telecommunications markets. We employ close to 32,000 people directly, facilitate access to more than 1,900 points of presence across the globe and have one of Australia’s largest shareholder bases, with 1.4 million shareholders.
We have a diverse range of customers, including consumers, small business, large enterprises and government organisations, and we strive to put them at the centre of everything we do. In Australia, our services are offered through 362 Telstrabranded retail stores, 90 Telstra Business
Centres, 127 Telstra business and enterprise partners and are distributed by over 15,000 retail points of presence managed by our partners.
In Australia we provide 16 million mobile services, 7.5 million fixed voice services and 3.7 million fixed data services. Telstra’s international businesses include Telstra’s global networks and managed services business and Telstra’s China-based search and advertising business, Autohome Inc.
We understand our customers want technology and content solutions that are simple and easy to use – that’s why we have built networks like Australia’s largest fully integrated internet protocol (IP) network and Australia’s largest and most reliable national mobile network.
For more information on our business activities and financial performance,

please see the ‘Strategy and performance’ chapter of our 2014 Annual Report.

About our sustainability reporting Our sustainability reporting comprises the Bigger Picture 2014 Sustainability
Report, our sustainability website and a concise summary of our approach and performance in our 2014 Annual
Report. Through our reporting we aim to provide information on sustainability issues relevant to our business and of importance to our stakeholders. The key issues addressed within each chapter of this report are outlined in the diagram above, and on the Context page of each corresponding chapter.
We develop our sustainability reporting with reference to industry and sustainability standards including the United Nations Global Compact
(UNGC) Communication on Progress, the Global Reporting Initiative (GRI) G3.1
Sustainability Reporting Guidelines and
Telecommunications Sector Supplement
(pilot) and AccountAbility’s AA1000
Principles Standard 2008. This financial year we apply the GRI framework to application level B+.
For more information, visit www.telstra.com/sustainability/report Scope

2014 for Sensis Group, unless otherwise stated. Aside from Sensis Group, all other controlled entities are excluded unless otherwise stated. A full list of controlled entities can be found in
Note 25 of the Financial Statements in our 2014 Annual Report.

United Nations Global Compact
You’ll find the icon below throughout this chapter of the Bigger Picture 2014
Sustainability Report. It indicates where we’re providing information on our progress in implementing the 10 principles of the
United Nations Global Compact.

Feedback
We welcome your feedback on our sustainability reporting, approach and performance. Please email Tim
O’Leary, Chief Sustainability Officer, at sustainability@team.telstra.com Stay in touch twitter.com/telstra facebook.com/telstra
Our monthly sustainability newsletter: www.telstra.com/sustainability/subscribe Our sustainability reporting covers the financial year 1 July 2013 to 30 June 2014
(FY14) for Telstra Corporation Limited and from 1 July 2013 to 28 February
Bigger Picture 2014 Sustainability Report 3

Sustainability at Telstra

Message from the
Chairman and CEO

MESSAGE FROM THE
CHAIRMAN AND CEO
The explosion of next generation technologies – from smart networks to smart devices, personalised apps to social media – is creating a truly digital nation and changing the way people live and work.
Technology is making us more connected, accelerating social change and creating value for our shareholders and the many communitieswe operate in.
Our new purpose and values reflect Telstra’s position at the heart of this exciting new world. Our purpose – to create a brilliant connected future for everyone – is core to our strategy and our sustainability agenda.
We are focused on ensuring that everyone, irrespective of age, income, ability or location is able to enjoy the social, economic and cultural benefits of being connected.

To achieve our purpose, we must be innovative, both in the products and services we offer to our customers, and in the way we address social and environmental challenges.

This year we used our technical expertise to assist community organisations with an appetite for social innovation. Through the Telstra Foundation we worked in partnership with several key organisations to deliver ‘tech for good’ projects, aimed at using smart devices, social media, platforms and apps to champion social change and community connection.
We also played an important role in helping our most vulnerable customers and communities to connect and interact safely in the digital world. Through our Everyone
Connected digital inclusion programs we delivered digital literacy training programs to
143,000 older Australians, distributed 65,000 cyber safety pamphlets and provided $145 million in assistance to people doing it tough through our Access for Everyone program.
The extent of our network coverage and depth of our technical expertise provide an opportunity for Telstra to support government, businesses and consumers to reduce their energy consumption, leading to considerable cost savings and reduced

greenhouse gas emissions. This year we introduced an enterprise-wide Environment
Strategy, signalling an important step change in our approach to environmental management across our value chain, and reflecting our aim of becoming an Australian environmental leader.
We understand that to achieve our social and environmental priorities, sustainability must be embedded in our culture.

With almost 32,000 of us at Telstra, we have the opportunity to make a big difference.

This year we launched a new employee call to action - ‘One Day. One Cause. One Dollar.
For Everyone’ - to encourage employee involvement in our core sustainability programs. ONE encourages our people to take up their One Day of volunteering leave, get behind One Cause that matters to them, and have every One Dollar they donate through payroll giving matched by Telstra.

As a large telecommunications company with a growing international footprint it’s important that we make a positive contribution wherever we operate. This year, we established the Telstra Foundation
Philippines. This is an important signal of our commitment to grow and maintain longterm market presence in a country where we have significant operations.
We recognise that our reputation and long term success depends on how we respond to the social and environmental expectations of our stakeholders at home and throughout the world. We remain committed to upholding the 10 principles of the United Nations Global Compact wherever we operate. Throughout this report we show the progress we have made in implementing these important principles.
We hope our Bigger Picture 2014
Sustainability Report gives you a good understanding of our sustainability strategy and our performance in responding to environmental, social, and economic issues.
We welcome any feedback you may have.

Our people dedicated more than 5,000 days to community volunteering this year, and donated more than $1.4 million through matched payroll giving. As a team, we also gave our support to many great causes, including RECOGNISE – the campaign to recognise Aboriginal and Torres Strait
Islander Peoples in the Constitution.
With telecommunications at the heart of economies, communities and personal interactions, trust is vital. The protection of our customers’ privacy is one of our highest priorities and this year we released our first transparency report detailing how we respond requests from law enforcement and national security agencies.

Catherine Livingstone, AO
Chairman
David Thodey
Chief Executive Officer

This year we also continued to manage the risk of asbestos containing material
(ACM) in our network. We introduced new measures in the management of ACM, including a comprehensive new training system, after several incidents last year involving contractors failing to meet our minimum standards.

Bigger Picture 2014 Sustainability Report 4

Sustainability at Telstra

Sustainability scorecard SUSTAINABILITY
SCORECARD

Key performance indicator

FY14 Target

FY14
Performance

FY13

FY12

FY15 Target

For more information

Employee engagement
Score (%)

82

82

801

77

84

Our people
Page 7

Health and safety
Lost Time Injury Frequency Rate
(LTIFR)

1.2

1.12

1.36

1.32

Introduce new measure

Our people
Page 14

N/A

26

25

25

30

Our people
Page 9

6,000

5,122

4,248

1,375

10,000

Community impact
Page 13

4.7

5.3

3.6

1.6

6

Community impact
Page 14

Targeted investment 216.6

231.0

239.8

Targeted investment Community impact
Page 16

Targeted digital literacy community programs
People impacted (000s)

140

143

146

102

165

Community impact
Page 9

Carbon emissions intensity tCO2e per terabyte of data2

0.71

0.58

0.83

1.24

55% reduction by end of FY17

Environmental stewardship
Page 10

E-waste mobile phones (tonnes collected)

14.0

15.3

14.0

14.3

14.0

Environmental stewardship
Page 14

Gender equality
Women in executive management
(%)
Volunteering during Telstra time
Total (days)
Payroll giving
Participation rate (%)
Social and community investment
Dollar value (millions)

Notes: 1 – 2013 result adjusted to exclude CSL and Sensis Group (79 per cent was previously reported). 2 – For more information regarding our year-on-year carbon emissions, see page 10 of the
Environmental stewardship chapter of this sustainability report.

Performance overview

89%

0%

11%

Achieved

In progress

Not achieved

Bigger Picture 2014 Sustainability Report 5

Sustainability at Telstra

Highlights

FY14 SUSTAINABILITY
HIGHLIGHTS
Customer experience

Putting our customers at the centre
We are committed to helping our customers improve the ways in which they live and work.

Surveyed 11 million customers and used their feedback to improve customer experience
Sent almost four million SMS messages each month to customers approaching their data limit
Reduced our pay-as-you-go international roaming data rates by up to 80%
Online transactions up six percentage points to 46%
Called one million customers to say thanks and show we care

Responsible business

Conducting our business ethically
We are committed to responsible business practice, wherever we operate.

Introduced a new purpose and values
Refreshed our Supplier Code of Conduct
Signatory to the United Nations Global Compact since 2011
Released our first Transparency Report
More than 11 million SMS sent to customers highlighting responsible phone use

Our people

Creating a great place to work
Telstra is one of the largest employers in Australia, with a workforce of almost
32,000 people.

Employee engagement 82% - up two percentage points
Lost Time Injury Frequency Rate of 1.12, down 18%
Women in executive management – 25.9%
$1.4 million to over 300 charities via matched payroll giving
Invested $1,078 per employee in learning and development
Over 13,000 members of Telstra Alumni Program

Community impact

Keeping our communities connected
We use our technology, expertise, scale and presence to make a positive contribution to the community.

Total value of social and community contributions – $217 million
Provided digital literacy training for 143,000 people
Distributed 65,000 cyber safety kits
$1.2 million – value of community volunteering
One third of all Australian public libraries have started their eSmart journey
Telstra Foundation Philippines established

Environmental stewardship
Better environmental outcomes

We are committed to minimising our environmental impacts and working with our customers to achieve better environmental outcomes.

New Environment Strategy launched
Carbon emissions intensity down by 30%
Office, billing and printing paper usage down by 15%
Mobile phones and accessories recycled through MobileMuster up by 9%
Over 36,800 tonnes of CO2e emissions savings through project initiatives

Bigger Picture 2014 Sustainability Report 6

Sustainability at Telstra

Our approach

OUR
APPROACH
Our strategic ambition is to embed social and environmental considerations into the heart of the business in ways that create value. the greatest cultural, reputational, commercial and social impact:

Employee involvement
We aim to make Telstra a great place to work, enhance our reputation and strengthen the communities in which we operate by providing opportunities for our people to get involved with their local communities and the issues that matter.
Everyone Connected

At Telstra, our purpose is to create a brilliant connected future for everyone.
The success of our business relies on it, and our sustainability agenda is key to achieving it.
We seek to identify ways we can use our resources and skills to contribute to the communities in which we operate, while also managing our environmental impacts.
To do this, we work with our customers and suppliers, engage our employees and develop partnerships with government and non-profit organisations to ensure the programs we deliver through our sustainability strategy are targeted and create value.
Governance of Telstra’s sustainability strategy and performance is provided by the Telstra Sustainability Council, which is chaired by the CEO and comprises

Telstra’s Executive Leadership Committee.
Regular reports on sustainability progress and key developments are provided to the
CEO and the Telstra Board. Telstra’s Chief
Sustainability Officer provides strategic leadership for sustainability and is responsible for the implementation of our approach and programs.

Sustainability priorities
Our strategic ambition is to embed social and environmental considerations into the heart of the business in ways that create value.
As a large company in an increasingly dynamic industry, we are well positioned to make a difference.

We believe that the more connected people are, the more opportunities they have. We want everyone to enjoy the benefits that new communications technologies can bring - regardless of age, income, ability or location. Our Everyone
Connected programs focus on making our products and services more accessible, enhancing digital literacy and cyber safety as well as supporting technological innovation for social good.
Environmental leadership
We are working to become more proactive and strategic in our approach to the environment.
We’re doing this by identifying and minimising the material environmental impacts of our operations, working with our suppliers to reduce the impacts of the products and services they provide to us, and considering the environment when developing our own products and services.

Our three strategic sustainability priorities reflect the areas in which we can have
Bigger Picture 2014 Sustainability Report 7

TELSTRA’S PURPOSE IS

TO CREATE A BRILLIANT CONNECTED FUTURE FOR EVERYONE

TO ACHIEVE OUR PURPOSE AND ENSURE EVERYONE ENJOYS THE
BENEFITS OF BEING CONNECTED, WE MUST EMBED SOCIAL AND
ENVIRONMENTAL CONSIDERATIONS INTO THE HEART OF OUR
BUSINESS IN WAYS THAT CREATE VALUE.
OUR SUSTAINABILITY STRATEGY IS KEY TO THIS.

WE’RE AUSTRALIA’S LEADING TELECOMMUNICATIONS AND
INFORMATION SERVICES COMPANY, OFFERING A FULL
RANGE OF COMMUNICATIONS SERVICES WITHIN MULTIPLE
MARKETS. WE OPERATE IN AN INDUSTRY THAT’S
TRANSFORMING THE WAY PEOPLE LIVE AND CONNECT.

ENVIRONMENTAL LEADERSHIP

EMPLOYEE INVOLVEMENT
We believe that with almost 32,000 of us,
Telstra employees can make a big difference by getting involved in the community and the issues that matter.

EVERYONE CONNECTED
We believe that everyone should enjoy the benefits of being connected to modern communications technology, regardless of age, income, ability or location. We want everyone to have the confidence and skills to participate safely in the digital world.

We’re determined to reduce our environmental impact, and to help our customers reduce theirs. We believe communications technology will give us new and better ways to create environmental solutions that are truly inspired.

EL &
ICITY, FU
INCREASED USE OF
ICT IN AUSTRALIA CAN SAVE UP TO $8.1BN A YEAR IN ELECTR

600,000

REGISTERED CHARITIES
IN AUSTRALIA RELY ON VOLUNTEER
SUPPORT AND DONATIONS

$

TELSTRA EMPLOYEES WHO
VOLUNTEER TAKE 28%
LESS SICK DAYS PER YEAR
AND ARE MORE ENGAGED

EL COSTS
AVIATION TRAV

ELECTRICITY COSTS
HAVE MORE THAN
DOUBLED IN THE PAST
10 YEARS

52%

OF TEENS REGRET
POSTS THEY’VE
MADE ONLINE

49 MILLION TONNES OF
BY 2030 20%
OF AUSTRALIANS
WILL BE OVER 65

E-WASTE ARE GENERATED
GLOBALLY EACH YEAR

ICT IS RESPONSIBLE
FOR 2–3% OF
ANNUAL GLOBAL
GHG EMISSIONS

4 MILLION
ONLY 46%
OF SENIOR
AUSTRALIANS ARE
INTERNET USERS

AUSTRALIANS
EXPERIENCE
DIGITAL
EXCLUSION

?

In FY14
• Our employees completed 5,122 days of community volunteering
• We donated $1.4 million to over 300 charities via matched payroll giving
• We got involved in the issues that matter, such as human rights, the environment and anti-corruption, in line with our UN Global
Compact commitments

• Our Everyone Connected programs delivered
$194 million worth of benefits to our customers and communities
• We provided digital literacy training for
143,000 people
• We distributed 65,000 cyber safety kits to customers, employees and community groups across Australia

• Our carbon emissions intensity decreased by 30%
• We recycled or reused 99% of our own recovered e-waste and collected 15.3 tonnes of mobile phones and accessories through MobileMuster
• We highlighted the potential for ICT to create a low carbon economy and reduce national emissions by up to 4.7%

Sustainability at Telstra

Stakeholder engagement STAKEHOLDER
ENGAGEMENT

As a company that connects with nearly every Australian in some way, we have many stakeholders. Our stakeholders are any group or individual that influences, or is impacted by,
Telstra’s operations and activities.
We want our stakeholders to be advocates for Telstra, so we aim to develop quality relationships through meaningful engagement. This helps us to keep abreast of evolving social and environmental expectations, and enables us to use stakeholder insights to develop innovative products, services and programs that drive advocacy.
Our engagement takes many forms, including face-to-face interactions, surveys, social media and market research. We are active in industry groups, participate in relevant networks and forums, and we have teams across the company that manage relationships with specific stakeholder groups.
You'll find detailed information on the engagement we've undertaken with our stakeholder groups throughout the Bigger
Picture 2014 Sustainability Report.

Key stakeholder groups

Customers
Our customers are residential consumers, small to medium enterprises, large companies and organisations, government and consumer groups.

Employees
Our workforce is large and diverse, with almost 32,000 employees around the world.

Industry
We engage with our sector peers and competitors, as well as information and communication technology (ICT) and telecommunications specific associations.

Media
We engage with representatives from print, radio, TV, social and online media.

Suppliers
We engage around 4,800 suppliers each year with total spend around $6.5 billion.

Communities
We engage with our communities wherever we operate. This includes non-profit organisations. Government
We engage with government at regional and international levels, from ministers and leaders to department staff.

Shareholders and investment community
Our investment community comprises institutional investors, buy- and sellside analysts, and 1.4 million retail shareholders, some of whom invest with social and environmental preferences.

Unions
We work closely with the relevant employee trade unions in all jurisdictions
– including CPSU, CEPU, AMWU and
Professionals Australia.

Regulators
We work closely with industry regulators in all our markets.

Bigger Picture 2014 Sustainability Report 9

Sustainability at Telstra

Key issues

KEY ISSUES

We undertake a formal and consultative process each year to ensure that we identify and respond to the sustainability issues and opportunities that are important to our business and our stakeholders. Building on dialogue with our stakeholders we identify issues, risks and opportunities from a wide variety of sources. Inputs include participation in industry and cross-sector initiatives, customer research, benchmarking and future trends analysis. We prioritise issues according to their impact on our business and on stakeholders.
Our process to identify, prioritise and respond to key sustainability challenges and opportunities is based on AccountAbility’s AA1000 Principles
Standard (2008). It includes:
Reviewing current and emerging sustainability issues impacting Telstra and the ICT industry
Identifying the social and environmental issues of concern to our stakeholders
Assessing our ability to address or influence the issues and seize the opportunities Prioritising issues according to their importance to our stakeholders and significance to our business, including an assessment of risk
Receiving feedback and having constructive dialogue through ongoing engagement with key stakeholder groups.
This year, our assessment identified our most significant sustainability risks and opportunities as being:

Several issues were also identified as being of increased significance in FY14, including: Privacy and data protection
Human rights

Customer experience

Diversity and inclusion

Energy efficiency and carbon emissions

Workplace culture and engagement

Digital access and inclusion

Reconciliation action.

Resource use, waste and e-waste
Telstra and the NBN
Privacy and data protection
Ethics, values and governance
ICT enabling sustainability.

We undertook a more rigorous analysis of our internal and external social media channels was undertaken this year, to ensure we effectively respond to key employee and customer queries within our

reporting. Some of the verbatim feedback examined during this process has been included within the Customer experience chapter of this sustainability report.
Detailed information on our approach to our key sustainability issues, our progress and performance for FY14 and our commitments for FY15 can be found throughout our Bigger Picture 2014
Sustainability Report chapters. The key issues addressed in each are outlined in the diagram on page three of this chapter.
For information regarding Telstra and the
NBN, please see our 2014 Annual Report.

Bigger Picture 2014 Sustainability Report 10

Sustainability at Telstra

Transparency and accountability TRANSPARENCY
AND ACCOUNTABILITY
We are committed to excellence in transparency and accountability.

We know that we build greater trust with our stakeholders when we are transparent and accountable. Monitoring, measuring and reporting on our approach and progress – good and bad - helps us to achieve this.

Assurance
Independent assurance supports our commitment to transparency and accountability. To provide confidence to our stakeholders in our reporting:
Ernst & Young provides limited assurance, in accordance with the
ISAE3000 standard, over whether all material issues have been reported in line with the principle of materiality in the context of the Global Reporting Initiative
(GRI), as well as specified data and related

performance disclosures in our 2014
Annual Report and Bigger Picture 2014
Sustainability Report.

Global Reporting Initiative
MobileMuster
Supply Nation

You can access this assurance statement at www.telstra.com/ sustainability/report/about Telco Together Foundation
United Nations Global Compact

Voluntary sustainability initiatives To ensure continuous improvement and to guide, benchmark and assess our sustainability performance, we participate in the following voluntary initiatives:
Australian Packaging Covenant
Carbon Disclosure Project
FTSE4Good
Global eSustainability Initiative
Bigger Picture 2014 Sustainability Report 11

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