BT Group plc Digital Impact and Sustainability Report 2019/20 Investing in a better tomorrow Introduction Building better Championing human Tackling climate change and Strong foundations digital lives and digital rights environmental challenges Welcome This report highlights our progress in 2019/20 as we Find out more seek to step up our leadership in digital impact and Investing You can find additional information on sustainability and go beyond limits for our customers, our performance, governance, climate …in a safer digital (Taskforce on Climate-related Financial colleagues and communities. Disclosures) and the environment in our future online appendix and download centre Championing human Tell us what you think We welcome feedback on this and digital rights report or its contents. Please complete Introduction Page 15 the online feedback form or contact us via our Twitter account @BTGroup. Page 3 Sustainability awards Investing CDP A list: We remained on the CDP’s …in skills for global A List of corporate climate leaders tomorrow for the fourth year running, putting us in the top 2% of reporting companies. We also Building better digital lives maintained our position in the CDP Supplier Engagement Leaderboard. Page 7 Investing Clean200: We made the 2020 Clean200 list of the world’s largest publicly traded firms, …in strong people ranked by total clean energy revenues. foundations Investing EcoAct: We retained our place in the top …in a cleaner Strong foundations three of EcoAct’s ranking of FTSE 100 Page 28 companies for the seventh year in a row tomorrow – and came tenth in their global rankings. Tackling climate change and EcoVadis Gold rating: We achieved the Gold environmental challenges rating for corporate social responsibility for Page 20 the seventh year running in May 2019. Global 100: Corporate Knights included BT in its annual ranking of the 100 most sustainable corporations in the world. Tortoise Responsibility100: We ranked fourth in the most recent quarterly index of FTSE 100 companies in March 2020. 2 BT Group plc Digital Impact and Sustainability Report 2019/20 Introduction Building better Championing human Tackling climate change and Strong foundations digital lives and digital rights environmental challenges Introduction from our Chairman and Chief Executive The Covid-19 pandemic has seen rapid and radical changes to the way we live and work. Never have people and businesses been more dependent on us to stay connected in the UK and beyond. BT is stepping up, standing by our customers, colleagues and communities in this time of need. Jan du Plessis Philip Jansen Leena Nair Our networks and services are essential to the Chairman Chief Executive Non-executive director and chair of BT’s UK’s digital infrastructure. We’re helping to keep Digital Impact & Sustainability Committee our customers connected, and support more At the core of our Beyond Limits brand position, Events in the last year have highlighted the vulnerable people, as well as contributing to Skills for Tomorrow is a key pillar in each of our urgent need to tackle the climate emergency customer facing business units. It builds on our and the growing expectations on companies to public health efforts and prioritising support for Being appointed chair of BT’s Digital critical services – from connecting temporary long-standing programmes such as Barefoot take action. We’ve been leading the way on Computing which has reached more than 2.8m corporate climate action for over 25 years and Impact & Sustainability Committee is an hospitals to helping isolated patients stay in exciting opportunity for me to work with touch with loved ones. children since 2014. we’re targeting net zero carbon emissions in our business by 2045. a company that is serious about taking That’s why many of our frontline colleagues are Through Skills for Tomorrow, we’re working on the challenges and opportunities of designated by the Government as key workers. with some of the country’s leading digital skills We want every one of our colleagues to play sustainability. BT has already made great organisations to offer everyone free access a part in delivering our digital impact and progress on its ambitions. I see enormous The essential role we play in connecting people to resources that suit them. Many can be sustainability ambitions, and our business goals. potential to build on this strong track record and businesses will not only support the nation accessed online, offering invaluable support Our new Colleague Board is giving our people by integrating sustainability even further through this crisis, but contribute to the UK’s through the Covid-19 crisis – from helping a louder voice at the table, and a direct line to into core business processes, products and ambition to become a world-leading digital people manage their lives online and work the BT Board. Despite the downturn in the services – and deepening engagement economy for everyone. effectively wherever they are to providing economy caused by Covid-19, we’ve maintained with customers about their own footprints, We’re investing in faster networks and wider ready-made lesson plans for homeschooling. our promise of introducing an annual award of and the sustainability credentials of BT’s shares through the yourshare plan that offers retail and commercial services. coverage that will help connect the UK to Digital technology offers a world of all our people a stake in our success. the future, but access alone isn’t enough. opportunities to transform people’s lives, but The UK’s digital skills gap is leaving millions the potential for its misuse also poses new The months ahead will bring many further of people behind. challenges to human rights. We’re working challenges, but we’ll continue to act as a force We aim to empower 10m people by 2025, giving with other tech companies and human rights for good in support of customers, colleagues them the skills they need to flourish in a digital organisations to respond, and we remain firm and communities. world. We’ve launched a major new programme supporters of the UN’s Global Compact and to help us do this. Sustainable Development Goals. 3 BT Group plc Digital Impact and Sustainability Report 2019/20 Introduction Building better Championing human Tackling climate change and Strong foundations digital lives and digital rights environmental challenges Our strategy Our digital impact and Our strategic focus areas sustainability (DI&S) strategy will help us deliver lasting positive 1. 2. 3. impact in the UK and beyond. Building better Championing Tackling climate digital lives human and change and We’re focusing on three key areas where we can digital rights environmental use our technology, our reach and our people challenges to make the biggest possible contribution to Our ambitions the UK’s ambitions and the UN’s Sustainable Development Goals. We’ve set bold ambitions Reach 10m people in the UK with Keep people secure online, Adopt a sector-leading approach to drive progress in these areas and our DI&S help to improve their digital skills protect privacy and free to climate action, with a target to strategy is built on strong foundations by 20251 expression, and support efforts become a net zero carbon business (see graphic). to tackle modern slavery by 2045 The DI&S strategy supports our vision to be a Our progress leader in converged connectivity and services, • Launched Skills for Tomorrow, including an • Signatory to the UN Global Compact • 42% reduction in carbon intensity brilliantly delivered. It enables us to grow online portal containing free resources • Approach steered by the UN Guiding since 2016/17 demand for our products and services, build and • 2.8m people reached in total since 2014/15 Principles on Business and Human Rights • 92% of the electricity we consume around the enhance our reputation, manage risks, develop • 20 Online Centres sponsored so far • Founding partner of the UK Modern Slavery world is now renewably sourced – and we’re at talent, make BT the best place to work, and with Good Things Foundation Helpline and Tech Against Trafficking 100% for directly purchased electricity in the UK • create long-term value for our business • 3,300+ Work Ready graduates since 2014 • Joined World Business Council for We’ve now helped our customers save three and the UK. Sustainable Development CEO call times as much carbon as our end-to-end to action on human rights carbon emissions – one year ahead of target We ensure clear accountability, from the top, for • 12 key suppliers signed up to climate clause delivering the strategy. From April 2020, we’re • New plastics policy and commitment adding our digital skills and carbon emissions Supporting the UK’s ambitions intensity targets to our Group key performance The UK Government’s Digital Strategy The UK Government is committed to tackling The UK Government’s target is to indicators (KPIs) and both will be linked to 10% includes giving everyone access to the the crime of modern slavery that affects an achieve net zero emissions by 2050 of the bonus scheme, placing sustainability at digital skills they need estimated 40m people globally the core of what we do (see the appendix for Contributing to the UN Sustainable more on governance). Development Goals and targets 4.3 + 4.4 5b 9.1 + 9c 8.7 10.2 16.10 12.5 + 12.7 13a 1 We’ve revised the wording of this ambition from providing Supported by strong foundations ‘training’ to ‘help’ to improve digital skills to reflect the broader range of support we’re providing as part of our Behaving ethically Developing diverse talent Keeping our people safe and healthy Skills for Tomorrow programme. 4 BT Group plc Digital Impact and Sustainability Report 2019/20 Introduction Building better Championing human Tackling climate change and Strong foundations digital lives and digital rights environmental challenges Our priorities In our strategy, we prioritise what Stakeholder materiality analysis Case study: Most material matters most to our stakeholders.