| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Management and governance | Continuously improve O2's corporate responsibility performance as part of Telefonica. | Align O2's corporate responsibility activities with those of Telefonica. | The alignment plan was submitted to the Telefónica Integration Committee and the implementation of the plan has commenced. | Dec-06 | Achieved |
| External dialogue | Improve management awareness about social, environmental & ethical issues by analysing stakeholder engagement information. | Implement a system to record stakeholder engagement and establish regular management reporting on issues raised through dialogue. | A system has been installed and the first report will be incorporated into the materiality review for the annual Corporate Responsibility report. Going forward this functionality will be moved to a common Telefónica Group system platform. | Dec-06 Revised target |
In progress |
| Business principles | Ensure O2's employees behave ethically at all times in their dealing with each other, suppliers, customers and the general public. | Achieve 85 per cent completion rate for business principles training across O2 where an online facility is available. | In total some 65 per cent of all employees in the UK, Ireland, Germany and the Isle of Man completed their mandatory business principles training. Going forward a greater emphasis will be put on raising awareness about the business principles. | Dec-06 | Not achieved |
| Environmental management | Minimise our negative impact on the environment. | Maintain accreditation to the international environmental standard ISO 14001. Manage continual reductions in energy use in offices and call centres. Develop a carbon neutral- strategy for the Group. | ISO 14001 accreditation has been maintained. Individual operating business targets are in place for energy reduction and projects are under development to reduce carbon emissions. | Dec-07 | In progress |
| Health and wellbeing | Increase our employees' awareness of health and wellbeing and promote O2 as an employer of choice. | Retain O2's position as a great place to work and ensure the health and wellbeing of O2 employees. | Continuing work on the promotion of health and wellbeing activities across all operating businesses. O2 Germany, O2 Ireland and O2 UK have all been named in independent rankings designed to highlight best places to work. | Dec-08 | In progress |
| Community - employee engagement | Empower and support O2 employees to be active and contributing to local communities. | Raise employee awareness of O2's community activities to reach 75 per cent. | Increase in the number of hits to the internal community web pages and increases in the take up for matched funding and payroll charitable giving confirm that this target is on track. | Dec-08 | In progress |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Protecting the vulnerable | Establish increased awareness among customers, especially children, about the responsible use of mobile phones. | Achieve 5 per cent increase in customer awareness of O2's parental control options by December 2006 and a further 10 per cent by the end of 2007. | Employees, in partnership with Childnet International, were trained to offer expert advice to parents on mobile safety. During the year we launched internal and external child protection websites. Our regular customer satisfaction survey showed that awareness about parental control functionality among our contract customers increased by 2 per cent to 31 per cent from September to December/January 2007, and that prepay customers' awareness rose by 19 per cent. Customer calls with regards to parental controls rose by 73 per cent from 2,717 calls to 10,106 calls during the same time period. |
Dec-06 | Achieved |
| Supply chain | Integrate corporate responsibility ethos into the strategic sourcing process of O2 and increase awareness of ethical supply chain policies within O2's operational teams. | Implement industry tools as part of O2 UK's ethical sourcing activity. | The ICT Industry Supplier Self-Assessment Questionnaire and audit checklist guidelines are now part of regular procurement activity. These have been used across O2-branded and other manufacturers' devices, accessories and call centre suppliers. | Dec-06 | Achieved |
| Identify all ethical high-risk purchasing categories and assess 100 per cent of these. | 13 major purchasing categories have been assessed, grouped according to their corporate responsibility risk score, and classified into high, medium and low risk bands. Four categories have been assessed as highest risk: branded devices, accessories, call centres and merchandising. | Dec-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Climate change and resources | Make efforts to reduce O2's impact on the environment and help tackle climate change. | Achieve 5 per cent reduction in electricity used in offices and call centres. |
Our absolute electricity consumption for all our corporate offices and call centres has increased by 16%. This is due to increased business activity, a new Glasgow Call Centre, and the improvements in data collection for all our sites. However, we have been making progress in energy reduction. In April 2006, we appointed an Energy Manager. We now have a new target, which is linked to electricity consumption per employee. We also ran 'The Big Switch Off' campaign, encouraging people to turn off their monitors and lights. These initiatives are already leading to electricity reductions and we are committed to continually improving in this area. |
Dec-06 Revised target Dec-07 |
Not achieved |
| Achieve 2 per cent reduction of variable load at second generation (2G) cell sites. | We have installed smart metering on a selection of cell sites and developed a new design for utilising 'free cooling' that uses ambient air to cool cell site equipment. During the year we have experienced a 14 per cent decrease in energy consumption at our 2G cell sites due to engineering changes, upgrades to more efficient equipment and data management. | Dec-06 | Achieved | ||
| Remove all HCFC refrigerant gases from cell sites by 2010, with 51 per cent removed by Dec 06. | We have successfully removed 57 per cent of R22 in our cell sites, by reducing HCFCs from 3,450 kg in 2002/2003 to 1,496 kg in 2006. | Dec-06 | Achieved | ||
| Ensure 5 per cent increase of collected redundant handsets for reuse or recycling. | 301,812 handsets were collected for reuse and/or recycling during 2006. We collected 308,851 for the period 2005/06. | Dec-06 | Not achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Engage and involve everyone in O2 UK. | Achieve 75 points in the Reflect O2 overall index. | The overall score in the Reflect O2 - employee engagement survey was 76 points. | Dec-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Empower and support O2 employees to actively contribute to their local communities. | Increase employee involvement in O2's community projects/ fundraising activities by 10 per cent. | 6,559 hours were volunteered by employees - a 258 per cent increase from 2005 (1,828 hours). | Dec-06 | Achieved |
| Community investment | Maximise the value O2 brings to society while ensuring our work in communities deliver equal business and social value. | Implement fundraising programme for Weston Spirit, raising £250,000 and recruiting 125 employees to participate in the mentoring programme. | £258,000 was raised during the year and 138 employees are participating in the 2006 O2 Weston Spirit mentoring programme. | Feb-07 | Achieved |
| Introduce £50,000 community fund. | The 'It's your community' - fund was launched in August 2006 and up to December 2006 O2 UK had made 36 awards to small community groups seeking to make improvements to their local areas. | Oct-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Climate change and resources | Make efforts to reduce Airwave's impact on the environment and help to tackle climate change. | Seek to use less energy, encourage uptake of energy from renewable sources and maintain renewable energy sourcing above 10 per cent. | The two main Airwave sites (Rugby and Bridgewater) are now powered by low-carbon CHP (combined heat and power) to achieve greater energy efficiency. We have been granted planning permission for our first renewable energy base site. | Dec-06 | Not achieved |
| Offset 24,000 tonnes of CO2. | Our CO2 emission profile has been reviewed and we have established that Airwave needs to offset 21,383 tonnes of CO2 to become carbon neutral. This has now been completed through the implementation of three carbon off-set projects: forestry plantation in Wales; methane capture in Germany; and wind farms in India. | Dec-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Engage and involve everyone who works in Airwave. | Achieve 74 points in Reflect O2 - employee engagement survey. | Achieved 73 points, an improvement of two points on 2005 results, but below target. | Dec-06 | Not achieved |
| Inclusion & diversity | Maintain the momentum of health and wellbeing awareness at O2. | Maintain the momentum of health and wellbeing awareness. Continue to invest in health & wellbeing programmes. | Airwave has adopted the same health and wellbeing approach and programmes as other O2 operations in the UK. Stress workshops were held at key sites during 2006 and around ten per cent of the workforce (70 employees) attended. | In progress | |
| Health and safety | Zero tolerance regarding incidents at the workplace. | Zero enforcement notices from authorities. | No enforcement notices have been received. | Achieved | |
| Ensure all employees fully comply with the safety management system. | Introduce measurement system and monitor compliance. | A safety management system has been incorporated as part of the e-learning system that produces monthly statistics which are measurable against the Airwave safety guide. | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Empower and support O2's employees to actively contribute to their local communities. | 10 per cent of Airwave employees to be involved in Airwave's community projects/ fundraising activities. | Around ten per cent of all employees took part in various Airwave community projects:
|
Dec-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Protecting the vulnerable | Raise awareness of the responsible use of mobile phones and youth protection with customers. | Publish three online brochures on youth protection. | Online brochures have been published at www.o2online.de/ goto/jugendschutz |
Dec-06 | Achieved |
| Improve education of children on the responsible use of mobile phones. | Support the launch of the O2 - sponsored mobile phone course in at least three further Federal States. | O2 Germany has paid for four additional Federal State licences. | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Support independent research into alleged health effects of electro-magnetic fields. | Help fund Mobilfunkforschungsprogramm - health research programme on the alleged health risk of mobile communications equipment. | O2 Germany has contributed €1.9 million to the €17.0 million research programme. No further payments were made in 2006. A programme of five workshops on the research results were organised during 2006 and 2007. | Dec-06 | Achieved | |
| Help fund Forschungsgemeinschaft Funk e.V. | O2 Germany makes an annual contribution of €127,822. | Achieved | |||
| Develop point of sale information. | We have initiated a bi-monthly update of the SAR (Standard Absorption Rate) information leaflet on handsets and developed web-based training on SAR values in co-operation with the O2 Sales Academy. | Achieved | |||
| Improve consumer information about handsets and mast emissions. | Respond to each information query on masts. | Dedicated web pages and an email facility are available on O2 Germany's internet site. Mast queries can be submitted by emailing umwelt@o2.com. A third party audited O2´s implementation of the voluntary commitments by German operators; O2´s responses to information queries met the set standards. | Achieved | ||
| Improve safety at mast sites. | Raise awareness about safety by making twice yearly regional safety reporting mandatory. | All health and safety issues that are raised through regional inspections of our network sites are documented in a database. Specialist work security employees inform O2 Germany's regional directors about health and safety issues regarding mast siting during the year. | In progress | ||
| Reduce subcontractor incidents at new sites. | Establish construction inspections - at least 50 per year - operated by H&S experts. | 51 inspections were undertaken by December 2006. Non-conformities were documented on the day of the inspections and summarised in reports. Monitoring of the follow-up procedures will continue during 2007. | Achieved | ||
| Zero tolerance regarding incidents at the workplace. | Zero enforcement notices from authorities. | No enforcement notices have been received. | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Climate change and resources | Eco-efficiency. | Raise eco-efficiency by 5 per cent (EBITDA/CO2) compared to baseline March 2006. | The eco-efficiency rate, or so called carbon neutrality, (based on estimation of the CO2-budget model) rose by 18.1 per cent during the year. | Dec-06 | Achieved |
| Carbon neutrality. | Become 40 per cent carbon neutral (compensate 36,000 tonnes CO2). | We compensated 38,920 tonnes CO2 and achieved a 43.2 per cent carbon neutrality by:
|
Achieved | ||
| Customer engagement. | Engage customers and employees in our environmental vision and mission through three major actions or events. | Some examples of activities:
|
Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Respect the contribution of our employees and become an employer of choice. | Maintain 79 points in the Reflect O2 - employee engagement survey. | Reflect O2 measured 78 points, which was an encouraging result, but still below the target. The response rate was 83.1 per cent - the highest ever - thanks to intensive communication email, intranet and face-to-face activities. |
Dec-06 | Not achieved |
| Maintain employee turnover at 5.8 per cent and absenteeism at 3 per cent against 2005/06 baseline. | By December 2006 the employee turnover stood at 6.1 per cent, which includes mandatory redundancies and voluntary fluctuations. This is still below the industry average of 8 per cent. The sick-leave absenteeism rate remained at 3 per cent. | Not achieved | |||
| Continue to invest in employee development & maintain 5.5 days training a year per employee. | According to new balanced score card measurements, employee development is now calculated according to the training budget per employee, rather than the number of days in training. By year-end, the average training budget per employee was €480. Formal training is supplemented by team building events, training on-the-job, peer-group supervision, and job enrichment activities that are not specifically measured. |
Measurement methodology has been changed. | In progress | ||
| Continue mandatory values and leadership training of O2 Germany's management. | In 2006, 210 managers began the O2 Professional Management Programme or Advanced Professional Management Programme, compared to 74 managers in 2005. Both are mandatory programmes that last 18 months. | Achieved | |||
| Encourage in-house recruitment to support career development of O2 employees. | The talent and leaders' pool programmes were developed to encourage in-house leadership recruitment. In-house recruitment is currently not being measured; regardless we do not believe that these programmes fulfilled their objectives. Consequently, O2 Germany is considering alternative approaches to support individuals who have demonstrated leadership qualities to pursue management positions and/or specialist careers. | Not achieved | |||
| Maintain position of being among top ten companies to work for in Germany. | O2 Germany did not apply for the best employer awards during 2006. However, Reflect O2 - O2's employee engagement survey - revealed that 89 per cent of employees are proud to work for O2, in comparison to 88 per cent in the previous year. | Revised target | N/A |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Empower our employees to actively contribute to the community. | Start working with the second Schola-21 partner school in co-operation with the German Children and Youth Foundation. | We are co-operating with three new schools, with active support by our employees, in Hamburg, Hessen, and North-Rhine-Westphalia - in addition to current Schola-21 Nymphenburg schools in Munich. | Dec-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Marketplace | Protect the vulnerable. | Launch Age Verification and Content Classification services. | The system is in place and was formally launched one month later than planned in January 2007. | Dec-06 | In progress |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Climate change and resources | Minimise O2 Ireland's impact on the environment. | Continue to reduce landfill waste and increase recycling performance to reach 75 per cent from 60 per cent. | We achieved a 75 per cent recycling rate by December 2006. | Dec-06 | Achieved |
| Achieve at least a 5 per cent reduction in electricity used in our offices and call centres per full-time employee (against 2004-05 baseline). | We acquired additional office space in 2005/2006 resulting in an increased consumption of electricity for our general office environment. However, we did achieve a 5.5 per cent reduction in electricity consumption in our call centre'. | Dec-06 | In progress | ||
| Increase proportion of electricity from renewable sources used by networks from 30 per cent to 35 per cent. | Our previous energy supplier was not able to offer an increase in green energy supplies thus O2 Ireland has entered into contract with Energia that will allow all the energy to be from renewable sources going forward. | Dec-06 | Not achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Diversity and workplace development | Increase diversity of workforce to better reflect Irish society. | Implement the 'workplace of the future' programme. | Three people with disabilities have been recruited, a carers' network has been established, and managers are currently undergoing diversity training. The percentage of non-Irish nationals working for O2 Ireland has increased to 6.5 per cent from 4.2 per cent. | Dec-06 | Achieved |
| Retain O2's position as a great place to work and ensure the health and wellbeing of O2 Ireland's employees. | Maintain position of being among top ten companies to work for in Ireland. | We conducted 'workplace of the future' research in order to determine employee needs and expectations, such as the importance of flexi-time, accessible parking, job sharing, and the commute to work, all in order to ensure that O2 Ireland remains a great place to work and employees have a good work-life balance. Although we did not enter the awards this year we believe that our programmes and a focus on health and wellbeing awareness will help us maintain our position. | Revised target | N/A | |
| Ensure that all O2 Ireland employees engaged in high-risk activities undergo medical assessments. | By April 2007 around 10 per cent of the applicable employees have undergone the necessary training. | Dec-07 | In progress |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Embed Irish Autism Action as charity of choice across O2 Ireland's business operation | Raise €100,000 and recruit 60 volunteers for Irish Autism Action. | The target has been achieved: €123,000 has been raised and over 100 volunteers have been recruited. | Dec-06 | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Climate changes and resources | Make efforts to reduce Manx Telecom's impact on the environment and help tackle climate change. | Install a combined heat and power system at the headquarters to reduce CO2 emissions by 200 tonnes and SO2 by 5.3 tonnes. | Due to planning delays, the introduction of a combined heating and power plant (CHP) was delayed by several months. The CHP plant installation was finished in March 2007. | Dec-06 | In progress |
| Reduce our emissions associated with commercial vehicle transport by an additional 5 per cent. | All vehicle renewals have been completed as per required and within budgeted capital expenditure, with a 5 per cent cut in emissions. | Not achieved | |||
| Eliminate waste at source to reduce the impact on natural resources. | Validate current waste streams and seek new ways to dispose of waste that would increase monetary return by 75 per cent for use on environmental projects. |
All wastes streams have been reviewed and, where required, new measures and disposal methods have been put in place to streamline the processes. 75 per cent of our general waste is treated via an 'Energy from Waste' Plant that generates eight per cent green energy. During 2006 we saw a 20 per cent increase in recycled handsets, all of our hazardous waste was changed to be managed by a local contractor and changes were made in the disposal of old telephone directories. Despite making significant savings on waste disposal costs though these initiatives during the year it has not been possible to increase the monetary return from waste for the year. Financial investments were made to off-setting carbon emissions.
|
Not achieved | ||
| Encourage customers to recycle redundant mobile handsets. | Ensure 5 per cent increase of collected redundant handsets for recycling. | Various marketing initiatives are in place internally and externally to promote handset recycling, which was increased by 20 per cent, thus exceeding the target. | Achieved | ||
| Ensure environmental protection across our supply chain. | Assess 50 per cent of all existing contracts against current environmental policies and implement an improvement programme. | Working closely with O2 UK ethical sourcing team to roll-out assessment programme. 50 per cent target achieved and local procedures are in place for 100 per cent of our existing contracts/suppliers. The improvement programme will continue to roll-out during 2007. | Achieved | ||
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Health and wellbeing | Work to achieve a reduction in the total number of accidents. | Less than 10 accidents based on the average of the last three years. | There were six accidents during the year. | Dec-06 | Achieved |
| Work to achieve a reduction in the number of day's sick absence lost to accidents. | Less than 20 days per annum. | Currently standing at 33 days. | Not achieved | ||
| Encourage employee participation in company health screening programme. | Enrol at least 45 employees. | 38 employees participated in 2006, with four non- attendees and 41 enrolled for 2007. | Not achieved | ||
| Employee engagement | Engage and involve everyone who works at Manx Telecom. | Achieve 75 points in Reflect O2 survey. | Reflect O2 survey overall score was 78 points. | Achieved |
| Subject | Objective | Target | Progress | Date | Status |
|---|---|---|---|---|---|
| Employee engagement | Empower more employees to be involved in their local community. | Increase employee awareness of Manx Telecom supporting community projects to reach 40 per cent. | Activities have included making the annual Manx Corporate Responsibility report available both internally and externally, and highlighting activities through an interview with Telefónica O2 Europe's CEO, Peter Erskine on the intranet. Employees awareness will be measured as part of the Group-wide community investment awareness survey by December 2008. | Dec-06 Revised target Dec-08 |
In progress |
| Raise £30,000 through employee actions and activities for the Mighty Oak appeal. | The fundraising committee and strategic fundraising programme is in place and fundraising is progressing against a revised target of £50.000. Employees are actively involved in payroll giving, raffles and auctions, professional services, etc. Professional advice has been offered through support in developing the Hospice's health and safety management manuals, building design and the physical build. | Dec-07 Revised target |
In progress |
