Our environmental policy requires us to continuously improve performance

We set targets each year to reduce our consumption of energy resources and the generation of harmful emissions.

We measure and record progress through management reporting and we are reviewed externally as part of our registration to the international environmental management standard ISO 14001. Telefónica O2 UK achieved certification to ISO 14001:2004 in 2005.

We expect our suppliers to manage their effects on the environment too and, when appropriate, we measure them against our environmental procurement policy by auditing their practices.

Each year we review our targets and measure our performance against them. You can see our progress and view new environmental targets for 2008 in our separate targets and objectives section.

Key environmental areas to address are:

• Fuel, energy and water.
• Waste management in our offices, retail stores and networks.
• Minimising impact on local environments.
• Emissions and transport.
• Managing the environmental impact of our supply chain.

Our environmental policy is in line with the European Commission’s Environmental Action Programme – ‘Environment 2010 – Our Future, Our Choice’ – to tackle climate change, protect nature and wildlife, preserve natural resources and manage waste, environmental and health issues. It also supports the Kyoto Protocol to reduce the effects of global warming.

Our certification to ISO 14001:2004 commits us to:

• Be independently assessed by a third party to ensure our systems meet national and European standards.
• Show we are committed to operating in an environmentally responsible way.
• Assure compliance with environmental legislation.
• Continually improve the management and control of our environmental risks and effects.
• Demonstrate corporate governance of our environmental management.

The Telefónica Europe Environment Forum reports at six-monthly intervals to the Board through an Environmental Champion.

Telefónica O2 UK is held responsible for controlling and managing the effects of the UK businesses. We have an environmental steering group and an environment manager. Every line manager across Telefónica O2 UK is expected to ensure compliance with our statutory obligations. We publish our aims and achievements every year and we keep a register of significant environmental risks.

Our environmental manager works closely with several environmental groups, including the United Nations Mobile Phone Partnership Initiative (MPPI), the UK Climate Impacts Programme (UKCIP) and The Prince of Wales’s Corporate Leaders Group on Climate Change. We also take part in the All Party Parliamentary Climate Change Group (APPCCG).

In 2007, Telefónica O2 UK introduced Smart Metering at business sites to help us continuously track energy use.

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