CLAIMS ASSURED  Some of the markets in which Telenor  In 2017, implementing a global security operates are emerging economies with programme and establishing global BY DNV GL potentially complex and sensitive capabilities and common standards political and social contexts, and the were prioritised. The following claims in Telenor’s associated risks related to corruption Sustainability report 2017 have been and human rights especially will Experts have been recruited in global reviewed by DNV GL in the assurance continue to fare high on the wider roles as part of a critical capability telecommunication industry agenda. programme, and local security officers process: are in place in all business units. Telenor  Responsible Business Conduct is about has a strong commitment to security, mitigating Telenor’s most critical and this is at the foundation of Statement from CEO business environment risks, seizing the everything the company does. opportunity to generate positive long‐ term value and meeting stakeholder  Connecting people, business and  Personal data is handled with care and expectations. Strengthening awareness, societies have been the core of our customer data is used to create value accountability and transparency are key business for more than 160 years. We’re for the customer to securing our license to operate and making sure that our customers are ensure ethical and responsible business connected to what matters most in their  In 2017, in addition to preparing for practices. everyday lives. To us, it’s more than implementation of the new EU GDPR regulation, Telenor strengthened good business. It’s empowering  Telenor has developed high standards competencies and recruited for new societies. in the areas of anti‐corruption, labor internal privacy capabilities. rights, human rights and the

 Sustainability at Telenor is about how environment as defined in international we do business. conventions and best practices. These standards will be further developed and  We are committed to all UN Sustainable strengthened. Strategic focus on reducing inequalities Development Goals but with specific focus on goal #10 Reduced Inequalities.  This also applies to the standards within  Responsible business and sustainability We want to help unlock the benefits of supply chain sustainability, anti‐trust is an integral part of Telenor’s business the digital revolution and demonstrate and Telenor’s role in contributing to strategy. It is about how we do business how more can be achieved with society, e.g. financial services for connectivity. We work to raise financial inclusion or registration of standards and delivering wider access child‐births through a mobile device.  We are committed to all UN Sustainable to our services. Development Goals but with specific  Telenor is contributing directly and focus on goal #10 Reduced Inequalities.  Our people and our culture are indirectly to many of the UN instrumental in safeguarding the Sustainable Development Goals and  Our purpose is to empower societies. responsible and sustainable business acknowledge the role of the private that Telenor is committed to – both sector in delivering on these goals  The way we run our company is based internally and in our supply chain. on clear standards on everything from  In 2017, Telenor chose to specifically privacy to anti‐corruption, energy  We fully support the UN Global focus its efforts on The United Nation’s efficiency to human rights. We are Compact Principles, and together with global Sustainable Development Goal working to continuously improve our customers and partners we are well number 10: Reduced Inequalities. everything we do, and working with our positioned to help deliver on the UN Telenor has set out targets through to suppliers to do the same. Sustainable Development Goals. 2020 to contribute towards this goal by continuing supply chain capacity  We want to help unlock the benefits of

building, training children in online the digital revolution and demonstrate

safety and utilising mobile technology how more can be achieved with Sustainability at Telenor for birth registration. Telenor aims to connectivity. reduce inequalities 1) by improving   Telenor exists to connect our customers access to services through leveraging We have made access to financial to what matters most – we empower digital services and connectivity in services more available and affordable. societies. This is our purpose. innovative ways to address social and economic challenges, and 2) by raising standards in employment and supply  Our internet services have opened  We seek to personalize this experience chain sustainability across the supply possibilities to interact, learn, based on their needs and preferences. chain. participate and grow both socially and  At Telenor, we are convinced that more  Cyber security is a global risk affecting economically. More women are using equality in the world is good for our the telecommunications industry, but is these services than ever before. business and for the people we serve. also a potential differentiator. Farmers are better informed on how to We remain committed to raising increase their output. standards across our operations and to driving for greater access and increased opportunities by empowering societies wherever we are.

DNV GL Headquarters, Veritasveien 1, P.O.Box 300, 1322 Høvik, Norway. Tel: +47 67 57 99 00. www.dnvgl.com

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 We work to raise standards and  This sustainability report for 2017 does  The Sustainability and Compliance delivering wider access to our services. not – in general – include performance Committee (the “Committee” or This is why we have initiatives in all data from our Indian operations, since “SCC”) is a preparatory committee of markets designed to grow children’s Telenor India has been treated as an the Board of Directors of Telenor ASA online resilience. Our efforts to register asset held for sale and discontinued (the “Board”) that supports the Board the births of thousands of invisible operations in Telenor’s financial in fulfilling the Board’s responsibilities children are ongoing in Pakistan and will reporting for 2017. Exceptions to this will with respect to addressing soon commence in other Asian markets. be significant incidents in India that will sustainability and the scope of And our supply chain sustainability work be reported as part of our principles of compliance for the Committee. In its as well as human rights due diligence transparency. work, the Committee is guided by efforts, continue to raise standards international conventions and internally and downstream. recommendations, the Telenor Code  We have set targets for this work. To Corporate Governance of Conduct, policies and manuals help vulnerable groups in our markets relevant to the scope of the SCC. The prepare for a digital future we will grow  Telenor Group’s corporate governance Committee also supports the Board in their capacity, skills and resilience. By principles and practices define a fulfilling its responsibilities to 2020, we will facilitate access to identity framework of rules and procedures for specifically address climate & for seven million and educate and build the way business is governed and environment, human rights, labour the resilience of four million children on controlled in all Telenor business units. standards, and anti‐corruption. online safety. Each business unit adopts the relevant governing documents.  More information on Telenor’s principles and practices for corporate Furthermore, we will raise standards for  The governance framework is used as governance can be read in Telenor’s our employees and our supply chain. a platform to integrate material Report on Corporate Governance in We will build the capacity of our sustainability issues into its business the Annual Report of 2017 and at suppliers to raise standards in their strategies, daily operations and www.telenor.com/about‐ operations through 100,000 hours of relationship with stakeholders. training. us/corporate‐governance.  Telenor’s corporate values and ethical

 Partnerships between governments, standards represent an important businesses, and organizations are foundation for articulating and central to stimulate growth and create implementing the governance Reporting and Stakeholder Engagement shared value, both for the business and framework. society. At Telenor, we work in partnership with local authorities and  Telenor works continuously to  Telenor believes good corporate local organizations and through a global improve its governance regime. In governance involves openness, trustful partnership with UNICEF. The skills, 2017 Telenor has taken steps to disclosure and engagement between networks and resources of our partners simplify its governing documents. All all internal and external stakeholders. Group policies have been modified to are essential to achieve the outcomes  Telenor’s commitment to integrity and ensure that they are risk based and we seek. transparency is clearly stated in consist of clear and adequate Telenor’s Code of Conduct. The Code requirements that are measurable and of Conduct is owned and approved by can be monitored. About this report the Board, and must be signed by all employees.  Telenor’s commitment to integrity and  These material issues in the report have transparency is clearly stated in  The principles of transparency at been articulated through a materiality Telenor’s Code of Conduct – which is Telenor are part of the corporate assessment based on the Global owned and approved by the Board, governance framework and Reporting Sustainability Standards’ and must be signed by all employees. implemented within company principles and embody issues which are operations. Transparency and deemed to be most important to both openness around sustainability related Telenor and its stakeholders. Details on dilemmas and challenges will help the Telenor’s materiality assessment can be company drive continuous viewed at improvement based on an active www.telenor.com/sustainability/reporti dialogue with stakeholders. ng/scope‐and‐principles.

 DNV GL has been commissioned to carry  Expectations with regard to out an independent review of the sustainability reporting from major Sustainability Report, in particular to stakeholders continue to increase. assess the accuracy of claims. DNV GL’s independent review can be found at the  Telenor firmly believes that reporting end of this report. will contribute to open discussions and in building knowledge on challenging issues.

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 In order to ensure structured,  In February 2017, Telenor in Myanmar  In November 2017, top management transparent and relevant reporting of held its 4th annual sustainability in Telenor Group and the business sustainability performance, Telenor briefing since 2014. At this session; the units in Thailand, Bangladesh and Group reports to various external Telenor Myanmar CEO Lars Erik Malaysia invited to local forums from organisations including UN Global Tellmann expressed the company’s private sector, government and NGOs Compact, the international reporting commitment to be open and to discuss how to collaborate on the standard GRI and CDP regarding transparent on its business, UN Sustainable Development Goals climate change disclosure. challenges, and how they face key and with a specific focus on challenges and opportunities for partnering to  Telenor uses the GRI Sustainability sustainability issues such as reducing inequalities in society. These Reporting Standards based materiality responsible business conduct in the local top management forums will assessment process to involve a range supply chain, energy innovation in a continue in other Telenor markets in of external and internal stakeholders challenging market, ethics and 2018. to help identify social, economic and compliance, cybercrime and legal frameworks as well as how to environmental topics that matter most  In December 2017, Telenor gathered empower women in the workplace. both to them and Telenor’s business. 24 exceptional young talents from The scope of the current materiality 8,000 applicants in 13 countries to the assessment and engagement process  In September 2017, Telenor Group’s Telenor Youth Forum in Oslo. The can be found here: General Counsel and Chief Corporate participants worked in teams to solve www.telenor.com/sustainability/repor Affairs Officer Wenche Agerup was specific social challenges by designing ting/scope‐and‐principles. invited to UN General Assembly in digital solutions that can reduce New York to discuss how the business inequalities in society. sector can commit to the Sustainable  In 2017, both Telenor Group and many Development Goals (SDGs) and to  In 2018, Telenor will continue its of Telenor’s business units reported present why Telenor has chosen to stakeholder engagement within the locally on their sustainability focus on reducing inequalities in sustainability area: performance, which can be found on society. www.telenor.com/sustainability/repor  Arrange meetings and broader ting . communications activities to engage  The Rohingya situation in Myanmar with investors and relevant  Telenor has continued its focus on was high on the international agenda stakeholders in the company’s current human rights transparency and in 2017. Telenor viewed the sustainability challenges and reporting, such as issuing an updated developments in the Rakhine State in opportunities. Authority Request access report and Myanmar with grave concern, and reporting on alignment with the published a statement to that effect in  Demonstrate how Telenor can guiding principles from September 2017 which was empower societies through its Telecommunications Industry Dialogue communicated to the Myanmar business and how we contribute to the on Freedom of Expression and Privacy authorities. See more information in UN Sustainable Development Goal of (ID). chapter on Human Rights. Reduced Inequalities.

 The new reports for 2017 are available  The company follows developments here closely and continues to focus on https://www.telenor.com/sustainabilit ensuring provision of services to all Ethics & Anti‐corruption y/responsible‐business/privacy‐and‐ people in Myanmar. We will continue data‐protection/handling‐access‐ to seek to engage constructively and  Telenor has zero tolerance on requests‐from‐authorities/ encourage all parties to follow up on corruption and Telenor’s ethical standards promote proper business  For the fourth year in a row, the global the recommendations in the Annan practices and reflect relevant laws, climate reporting organisation CDP report. regulations and internationally (formerly Carbon Disclosure Project) recognized standards. These standards rated Telenor Group in their  In October 2017, Telenor Group are set out in our Code of Conduct ‘Leadership’ category as part of its President and CEO Sigve Brekke was (approved by the Board), Group Policy climate ranking list for 2017. Telenor is invited to hold the Rafto Challenge Anti‐Corruption (approved by the still the best telecom company with lecture at NHH Norwegian School of President and CEO), Third Party Risk headquarters in Scandinavia. Economics in Bergen, presenting how Policy (new) and other governing  As part of Telenor’s strategic focus on Telenor Group works with human documents, that are implemented in responsible business conduct, the rights, how Telenor addresses all Telenor’s subsidiaries directly or company aims to develop its challenges and how the company indirectly controlled by Telenor ASA. stakeholder relations as a long‐term needs to stay vigilant and continuously improve. owner and business partner, true to its  The Anti‐Corruption Programme is commitments, values and the purpose part of Telenor’s Governance model of empowering societies. which clearly defines roles and responsibility for implementation of  The company will purposefully apply the Anti‐Corruption Policy, both at business standards that may be higher Group and local business unit level. than what is decreed by law in its respective markets.

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 The Sustainability and Compliance  Telenor Group’s Anti‐Corruption  The Integrity Hotline and case Committee of the Board supports the Programme has been effective for management system have enabled Board in fulfilling its responsibilities years. Regular reviews, alignment with stronger global oversight for Telenor. with respect to ensure that Telenor prevailing international guidelines and Around 58 per cent of all incoming builds and maintains an effective implementation of learnings are reports in 2017 came in through the ethics and compliance program, essential for maintaining an effective Integrity Hotline. maximizes the inherent benefits of Anti‐ Corruption Programme. The such a program, and consistently programme is assessed and revised on  The reporting mechanism as well as a promotes a culture that demands a regular basis as part of the annual strengthened focus on communication ethical business conduct and Group Governance Work Programme. and training has contributed to an compliance with the Code of conduct, increase in the total number of our policies and procedures and  The Code of Conduct must be signed concerns the recent two years. by all employees upon joining the responsible business practices.  It is generally viewed as a sign of company. The Code of Conduct is openness and trust that employees  The Group Chief Compliance Officer signed annually along with mandatory and other stakeholders speak up about heads the group‐wide Compliance e‐learning. function and supports the President their concerns. This allows the organisation to address the issues, and CEO and the Board in ensuring  In Telenor, each employee has a investigate and take disciplinary action that the Code of Conduct sets the personal responsibility to act with when needed and especially to learn appropriate standards, and that these integrity and speak up if they become and aim to prevent issues from standards are implemented and aware of potential breaches. Leaders recurring. enforced. Starting in 2018, the Chief have a particular responsibility to act Compliance Officer is also responsible as good role models and to build a  The reporting volume per 100 for the Anti‐Corruption Program and safe, trustful and transparent culture employees in 2017 ended up at 2.8 the Third‐Party Risk Policy. in their teams. which is an increase from 2.4 in 2016.

 The Group Chief Compliance Officer  The NAVEX Global 2017 Ethics &  Managing breaches of the Code of reports functionally and Compliance Hotline & Incident Conduct and Governing Documents is administratively to the Group CEO & Management Benchmark Report an important pillar of Telenor’s ethics President and meets regularly in (comparing annual analysis of all and compliance work. Employee (along with functional reporting to) the industries/customer data of NAVEX) confidence in reporting incidents is Sustainability & Compliance has a stable median level of global central to ensuring an ethical Committee of the Board. With effect value over the past five years. from January 1, 2018 the Local Head of corporate culture. Compliance in Telenor Business Units  Comparing with companies which also  To encourage individuals such as will report to the Group Chief capture reports from all reporting employees, suppliers and other Compliance Officer and local channels (web, hotline, open door, e‐ stakeholders to voice their concerns, Board/Board Committee, as well as mails), the comparable median shows Telenor have established a global administratively to the local CEO. that Telenor is on par with the external reporting hotline and website industry. (Integrity Hotline).  In accordance with a decision by the Telenor ASA Board of Directors in  Group Internal Audit & Investigation is  Increased use of incident management February 2017, Integrity Hotline conducting the investigations and fact tool and reduction in number of management, fact finding and finding of the reported concerns. employees are reflected in this year’s investigation of compliance cases have numbers. been moved from Group Compliance to Group Internal Audit &  The new organization model will  Of all the incoming reports, about 30 Investigation. Investigated cases are increase the independence in the per cent were submitted reported to the Risk and Audit handling of cases. anonymously. Committee by the Head of Group  Internal Audit and Investigation.  The Integrity Hotline is a confidential As a comparison, the NAVEX Global 2017 Hotline Benchmark report shows channel where anyone can ask that median level has been stable at questions and raise concerns about  A description of Telenor’s Anti‐ possible breaches of Telenor’s Code of around 60 per cent anonymous Corruption Programme and the Ethics Conduct, including relevant laws, reports since 2008. and Compliance function is publicly regulations and governing documents.  In 2017, Group Investigations logged available on the web sites: 911 incoming reports, a small increase .www.telenor.com/about‐  The report intake of the Integrity from 2016. us/corporate‐governance/ethics‐ Hotline is operated by an external compliance and service provider, NAVEX Global, while www.telenor.com/about‐ investigations and case handling are  Around 57 per cent were compliance us/corporate‐governance/anti‐ handled by Group Investigations. The incidents that were being handled by corruption. Integrity Hotline is also made available the Group Investigations organisation, for external parties. Reports that are along with 9 per cent of the questions brought to Group Investigations via e‐ mail or personal contact are logged in the system.

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 About 38 per cent of the incoming  Telenor’s governing documents set  Telenor believes in empowering reports were concerns pertaining to one single standard which shall govern employees through management other parts of the organisation, such all business activities, regardless of dialogue with employees or their as line management or HR where such activities take place. recognised employee representatives.  All incoming reports shall receive an  and by utilising the employees’  Nevertheless, some markets in which answer from Group Investigations ‐ experience and insight to influence Telenor operates are emerging either through the confidential and working conditions and contribute to economies with potentially complex anonymous communication channel or sustainable business growth. via preferred means of and sensitive political and social communication. contexts, including markets associated  Telenor Group is, throughout its with high corruption risks.  The compliance incidents were mainly operations, promoting partnerships based on good and trusting dialogue, in Business Integrity, Theft &  This creates challenges that require e.g. in relation to acknowledged Embezzlement and Working robust, targeted measures to mitigate unions or through local cooperation Environment. such risks. bodies such as People Council.  About 60 per cent of the 57 compliance incidents were  All Telenor business units have a  All workforce restructuring in Telenor substantiated. responsibility to conduct regular risk shall be done with the aim to create assessments and risk‐based reviews of and sustain long term business value.  Of the substantiated incidents, around their anti‐corruption procedures and Workforce restructuring shall be done 67 per cent resulted in termination of implement remediating measures to in a responsible manner, through employment or other disciplinary mitigate risks. Telenor is focused on verifiable processes and in accordance sanction. continuous improvement of risk with the Telenor Way and applicable management processes. legal requirements and legislation.  In comparison, the NAVEX Global 2017 Hotline Benchmark report shows  At Telenor, attracting and retaining the substantiation rates of around 40 per best talent through training and cent the recent years. Labour rights & standards development opportunities as well as career prospects is fundamental to  The reason for Telenor’s higher score continued competitiveness and may reflect that we get high quality  Maintaining a working environment growth. reports, but it probably also indicates and a culture that nurtures that the scope of cases for many occupational health, safety and  Telenor also strives for diversity, customers in the benchmarking study personnel security (OHS&S) is inclusion and equal employment is wider, including many HR cases important at Telenor. opportunities in accordance with the which generally are more difficult to People Policy. substantiate.  The OHS&S approach covers employees as well as in‐house  In 2017, the Sickness Absence Rate contractors, vendors and suppliers.  As part of the transfer of responsibility (SAR) for the entire Telenor Group was for fact finding and investigation from  Telenor believes that OHS&S of 1.84 per cent. This number is reported Group Compliance to the new unit employees is vital to its business and with the acknowledgement of Group Internal Audit and Investigation makes a difference in employee variations in reported data based on (GIA&I), Telenor is in the process of engagement. different local national procedures and upgrading systems and processes to regulations related to sickness ensure a robust handling of  Telenor is committed to continuously reporting. compliance cases. learn from experience and improve its efforts within OHS&S and are currently  In 2017, close to 18,000 employees reviewing procedures, policies and and in‐house contractors attended  Compliance will, when fact‐finding and actions within this area. Health Safety Security & Environment investigation is concluded, handle the related awareness training sessions. case as part of the updated resolution procedure which includes both  Telenor is committed to respecting  There were no work‐related employee disciplinary and corrective actions. labour rights principles as laid down in UN Global Compact and ILO’s or in‐house contractor fatalities fundamental conventions. reported in Telenor Group for 2017.  Integrity is a vital part of Telenor’s business. Telenor’s management is  These principles relate to respecting  It is with great regret that during the committed to sending clear, the rights to freedom of association year 2017, we have experienced seven unambiguous and regular messages to and collective bargaining, the fatalities in our supply chain in all staff and business partners that elimination of forced labour, child Pakistan, Bangladesh and India. corruption and bribery are labour and discrimination in the work unacceptable. place, and are reflected in Telenor’s Code of Conduct, Group People Policy  We provide context for those deaths in and Supplier Conduct Principles. the section of Supply Chain Sustainability.

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 In 2017 Telenor Works Council –  Telenor view positively initiatives from  Whilst undergoing business Europe (TWC‐E) held six meetings, of its employees of establishing a union transformation Telenor Group will which 4 meetings where European in Grameenphone according to continue promoting employee employee representatives met with applicable local laws and regulations. involvement throughout Telenor the Telenor Group Management. The  Telenor aims to foster a diverse and Group and maintenance of good objective was to enhance information dynamic workforce at all levels, in labour standards in the company’s exchange and discussions in relation to terms of gender, age, nationality and operations. transnational issues impacting competence. employees, with a particular focus on  As Telenor Group operates in markets the ongoing transformational changes  Gender balance and diversity with differences in risk, regulation and in Telenor Group. initiatives in 2017 included also differences related to the local  Additionally, Telenor has continued its operationalising WIN (Women infrastructure, that to a high degree commitment to promoting employee Inspirational Network) as a leadership steers the OHS&S risks, we will focus involvement in operations throughout development platform for more than on continue identification and the Group. 200 mid‐level managers in all business mitigation of the local risks, combined units. with increasing the group  Almost all of Telenor’s operations in collaboration and secure local Europe and Asia are providing for  Telenor has six‐month paid maternity management attention and follow up. employee involvement through leave policy for women employees as dialogue between management and a minimum standard,  Telenor will continue to invest in recognised employee representatives,  50/50 women and men in the programmes and initiatives to e.g. in relation to acknowledged interview process (when possible) promote greater diversity at all levels – unions or through People Council as a gender, age, nationality and local cooperation body.  and structured review of leadership competence ‐ in the workplace, and in appointments through the People the societies where the company  In Bangladesh, Telenor and UNI Global Committee. operates. Moreover, Telenor will Union have continued the dialogue on continue its work to integrate people  fundamental labour rights, focusing in In 2017, Telenor continued to build its with disabilities through the particular on the unionization issue in stance on gender balance and diversity company’s Open Mind Programme. its operations in the country. through its commitment to UN sustainable goal #10. While there are still gains to be made, recent efforts  There is an ongoing court case filed by have yielded positive results. employees of Grameenphone related Supply chain sustainability to union registration.  At year‐end 2017, Telenor’s Group  Telenor strives for high standards on Executive Management included 42  In 2016 the Labour Appellate tribunal sustainability and continuous per cent women leaders, and senior announced a verbal verdict allowing improvement in its operations leadership level improved from 23 per for union formation in Grameenphone. throughout the supply chain. cent to 26 per cent women leaders. Telenor’s Supplier Conduct Principles (SCP) are based on internationally  The involved parties have been  The nationality split amongst senior recognised standards, including awaiting the written verdict for further leaders at year end 2016, included, requirements on human rights, health guidance on the establishment of a approximately 68 per cent and safety, labour rights, union in the company. In January 2018 Scandinavians, 13 per cent from rest of environment and anti‐corruption. It is the written verdict was announced by Europe, 16 per cent Asians, and 3 per mandatory for all Telenor contracting the court, directing the case to the cent others. parties to agree to these principles. Director General of Labour.  During 2017, disability inclusion  Telenor’s approach to supply chain remained high on Telenor’s agenda sustainability is to legally oblige the with five business units running the supplier to uphold responsible  Also in Bangladesh, the industry Open Mind Programme, which business practice, monitor review of the labour rules has shown provides training opportunities to compliance to Telenor’s requirements progress during 2017. The persons with disabilities in the and to do capacity building among Government appointed a tripartite workplace. Integration of skilled suppliers. All suppliers are obliged to consultative committee to propose a personnel with migrant backgrounds extend the supplier requirements revised regulatory framework and in also continued in Norway. further down in their own supply August the Government submitted a chain. st 1 draft on legal amendments to ILO  At year‐end 2017, Telenor Group for their review. A final proposal is employed close to 31,000 people expected in 2018 and Telenor is  Partnership and cooperation with (excluding India) of which 36 per cent suppliers is vital to achieving a hoping that this will result in needed are women. legal clarifications of the labour rules responsible supply chain. Telenor is application to the private service an active member of the Joint Audit sector. Cooperation (JAC), Global e‐ Sustainability Initiative (GeSI).

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 In all incidents, our required reporting  Telenor carries out local inspections  The supply chain responsibility focus procedures were followed and each in all our markets in order to monitor in 2017 remained on mitigation of and one of the incidents were compliance with the requirements on supply chain risk, capacity building handled immediately and individually responsible business conduct. In and monitoring compliance to with mitigating actions. 2017, Telenor carried out Telenor’s requirements on approximately 5,000 supplier responsible business conduct.  Risk re‐assessment and plans for inspections (ranging from simple site preventing similar incidents have visits to more comprehensive  Our key risks are within working been carried out. Employees’ families inspections or audits) across the conditions in our Asian operations have been followed‐up and been Group. 84 per cent of the inspections such as health and safety (especially given compensation. were carried out unannounced. More road accidents), labour standards than 560 major non‐conformities including underage/child labour.  All suppliers and parties having a were identified during the inspections  We follow‐up that preventive anti‐ direct contractual relationship with across the business units and are corruption programs are in place also Telenor must comply with Telenor`s followed up with mitigation plans and with our suppliers. Supplier Conduct Principles (SCP). An processes with aim to close these Agreement on Responsible Business non‐conformities.  There are also SCS risks in the Conduct (ABC) legally obliges the telecom downstream value chain and supplier to comply with the SCP and  In 2017, Telenor has transferred to a newer businesses such as telecom certain requirements set out in the new reporting tool platform. We have distribution and sales, digital suppliers ABCs. As at year‐end 2017, we have started using DNV GL's Synergi Life as as well as new digital businesses. signed approximately 9000 ABCs with a common reporting tool for all local almost all our active suppliers that we supplier inspections with a focus on environment, health and safety. The  Our most fundamental responsibility have defined as in‐scope for ABC Synergi Life tool enables all our as an employer is to keep all people (based on risk assessments). business units to manage non‐ who work for us safe from harm – and conformances, incidents, risk, risk we do not differentiate between our  If a supplier has objections to signing analyses, audits, assessments and own employees, in‐house contractors our ABC, the risk involving softer improvement suggestions. or our suppliers’ employees. requirements shall be considered and procedures for adjustments of text,  Through participation in the Joint clause on Responsible Business  It is with great regret that during the Audit Cooperation (JAC) together with Conduct in the underlying contract, year 2017, we have experienced other telecommunications operators waivers and waived category list shall seven fatalities in our supply chain: (13 members in 2017), Telenor gained be followed. A small number of • In Pakistan, a supplier’s employee access to the results of 89 waivers for signing the ABC are given died in a motorbike accident. At the sustainability audits of global based on a supplier’s refusal to sign, time of incident he was not wearing suppliers in 2017. and with the local CEO’s approval for his safety helmet. local contracts or with Group • In Pakistan, a supplier’s employee  A standard JAC audit focuses mainly Sustainability for global contracts. was shot and killed in a robbery at on preventive anti‐corruption retail outlet while doing a market program, labour rights, and working visit.  Telenor is using EcoVadis as a risk conditions, as well as health, safety • In Pakistan, a second line supplier’s rating system for global suppliers to and the environment. employee died in a road accident increase monitoring of the supplier’s while three other employees were sustainability performance.  Telenor executed six of these audits injured and sent to hospital. of global suppliers on behalf of JAC in • In Pakistan, a supplier’s employee in  The EcoVadis platform is an external 2017. Pakistan died when their car collided tool that measures a company’s with a mini truck. Three other performance based on a wide range  After carrying out an audit, a employees were injured and sent to of sustainability criteria and is a well‐ Corrective Action Plan (CAP) listing all hospital. recognised tool used by a high findings is agreed upon between the • In Pakistan, a second line supplier’s number of buyers across many auditee and the auditor. employee fell down from a mobile industries, including the telecom tower and died. industry.  Over time, JAC has carried out 366 • In Bangladesh, a supplier’s audits in 27 countries, covering more employee was killed in a road  The purpose of using EcoVadis is to than 817,000 workers. Going forward accident. measure sustainability performance the number of yearly audits carried • In India, a supplier’s employee was based on verified external out by JAC will increase and the focus killed in a road accident while driving information, reduce risk and integrate will mainly be on tier 2 and tier 3 a motorbike. sustainability into the sourcing suppliers. processes.

 During 2017, Telenor has recorded two incidents in Pakistan and one incident in Bangladesh of underage labour (15‐18 years) doing hazardous work.

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 With such large numbers of people  Further, one incident in Bangladesh  Human rights are also included in our working for and with Telenor, and and one incident in Pakistan of child materiality matrix. with an extensive network spreading labour (12‐14 years) was identified. over huge areas of land, the company  Our activities are drawing on the UN holds major stakes in everyone’s Guiding Principles on Business and  In 2017, the number of child safety. Human Rights and other international labour/underage labour findings was guidance. We also find it helpful to significantly reduced from previous  As Telenor’s markets grow rapidly, look at human rights reflecting the years – where number of incidents of traffic and road related safety is an four key roles we have as a company – underage labour in 2015 included 34 increasing concern. Telenor launched employer, provider of telecom and persons and number of incidents of a road safety initiative in 2016 aimed digital solutions, purchaser of goods child labour in 2015 included 13 at increasing awareness of road safety and services, and as investor. This children. Similar number of incidents and reducing road accidents. This makes for example labour rights, of underage labour in 2016 included awareness work has continued in privacy and freedom of expression 16 persons and number of incidents 2017. (see below and Privacy chapter) supply of child labour in 2016 included 4 chain sustainability and due diligence children.  Telenor’s focus on the long‐term risks pre‐investment important to us. related to supply chain will stay high  The business units organised more on the responsible business agenda ‐ than 23,000 man‐hours of various with continued work in 2018 on  Telenor has a three‐pronged approach capacity building initiatives in 2017. mitigation through local inspections, to human rights: The capacity building involved various JAC audits and capacity building. efforts to proactively build local Further, Telenor will secure thorough 1. Addressing actual and potential risks capacity of the suppliers and sub risk assessment of the supply chain in and impacts of our business through suppliers in order to drive continuous all business units and also improve i. Policies & processes – the principle improvement in the supply chain. The efforts in capacity building. of ‘respect’ is anchored in our Code of activities vary from supplier to Conduct (CoC) and Supplier Conduct supplier depending on the overall risk Principles (SCP), and due diligence is a picture of the business unit. Typical Human Rights policy requirement activities include on‐site briefings, ii. Guidance – dedicated tools drawing awareness sessions, workshops, on the UN Guiding Principles  Telenor’s business is about enabling forums, process support, online iii. Training & awareness –specialists people to communicate, and the portals and resource guides, etc. The training, as well as management & company’s operations and services capacity building is adapted to the board discussions touch on core human rights. We see practical situation and according to 2. Collaborating with others, for that we can positively impact rights, the real need of the supplier, focusing example through e.g. through digital birth registration on awareness of Telenor Supplier i. Stakeholder dialogue ‐ with peers, (see Innovating and Researching for Conduct Principles issues as well as civil society, investors, academia, Shared Value), but also recognise that specific activities related to skill government. our impact may be negative e.g. development (e.g. tower climbing). ii. Industry/multi‐stakeholder through potential misuse of our Typical topics will be: Labour rights, initiatives – member of e.g. Global services (see Child Online Safety). health and safety, anti‐corruption, Network Initiative (GNI) and Joint Telenor is also present in markets with sustainability requirements as well as Audit Cooperation (JAC) (see SCS significant human rights challenges. green telecom, women chapter) Understanding the complexity of the empowerment and diversity. Some 3. Being transparent on challenges and potential impacts of our business, business units have also worked in company practices to the extent mitigating negative impacts and industry and cross industry possible in continuously improving are key focus collaborations to synergise efforts in i. Annual reporting – this report areas. capacity building. ii. Issue specific reporting ‐ Including  Human rights are governed internally our so‐called ‘transparency report’ on as described in chapter “Corporate number of authority requests in our  In Asia, road‐related accidents are Governance”, and reporting of markets as well as a bi‐annual ‘legal among the leading causes of on‐the‐ grievances through the Integrity overview’ of key laws related to job injuries and deaths, and 5 of 7 of Hotline to compliance is described in authority requests in our markets all fatalities in Telenor’s supply chain chapter “Ethics and Anti‐ Corruption “. iii. Sustainability are road accidents; and all in Asia. Finally, Telenor’s approach to updates/presentations – e.g. annual enterprise risk management is updates by Telenor Myanmar to described in Sustainability and stakeholders on key human rights  Telenor Group’s footprint in Asia Compliance in the BoD report. issues covers more than sixteen thousand employees and approximately six  To help us navigate and identify the hundred thousand supply chain areas of potentially greatest impact, employees. we conduct human rights due diligence both at Group and Business Unit (BU) levels.

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 The situation in the Rakhine State in  As members of the GNI we work Privacy Myanmar was and continues to be together with internet companies like high on the international agenda. Google, Facebook, Oath, Microsoft and  As a provider of mobile and internet Telenor viewed the developments in civil society, academic and investor connectivity, respect for the rights to Rakhine with grave concern, and members to address challenges to privacy and freedom of expression is published a statement to that effect in privacy and freedom of expression, in central to Telenor’s core business. September 2017 which was particular with respect to authority  The company approaches these issues communicated to the Myanmar requests. (Check language in press authorities. from a privacy point of view as well as release, annual report etc.). Telenor a security angle, with policies and Group is a Board member of the GNI.  The company follows the manuals that set out mandatory requirements applying across all developments closely and continues to  Telenor continued its collaboration operations. focus on ensuring provision of services with industry peers in the Joint Audit to all people in Myanmar. We will Cooperation (JAC), an industry  As Internet of Things (IoT) is getting continue to engage constructively and initiative on Supply Chain more important; as well as privacy and encourage all parties to follow up on Sustainability where members conduct security challenges are growing, the recommendations in the Annan audits on major suppliers they have on connected units are no longer isolated report. common and share the findings from public access and Telenor must amongst them, thus increasing make it easy for end‐users to safely  In order to stay informed and follow efficiency and leverage in terms of connect additional sensors or units to developments in human rights in our rectifying human rights risks at their current solutions. Telenor will markets we worked during 2017 to suppliers. [link and check SCS chapter] continue to adapt to these challenges update our Group level human rights and provide secure solutions related to due diligence.  Telenor continued our annual IoT. reporting on Authority Requests in our  With assistance from BSR we revisited access report  Since 2015, Telenor has had a clear our understanding of country risks, as for 2016 privacy position: Being open and well as explored international trends www.telenor.com/sustainability/respo transparent about how personal data and good practices for mitigation. nsible‐business/privacy‐and‐data‐ is collected and used, committed to protection/handling‐access‐requests‐ using personal data to provide better  This work also fed into an update of from‐authorities, as well as our annual and more relevant services, and BU level due diligence, starting with a report on the alignment with the thorough in keeping personal data pilot in four BUs in Q4 2017. As part of Industry Dialogue Guiding Principles safe. this pilot our tools to conduct due [link]. The reports for 2017 will be diligence are being revised recognising published in spring 2018. We also  Since 2015, Telenor has been that our current tools are complex and provided an update of our legal committed to the GSMA Mobile taking in recent international overview of the laws relevant to Connect Privacy Principles. The developments and guidance since first authority requests in our markets principles establish a privacy baseline developed in 2013‐14. This is [link]. that applies to all parties that provide combined with refresher training on Mobile Connect‐branded identity  Telenor also continued to develop its human rights for BUs. Both the Group services. transparency efforts related to its and BU level processes are ongoing. operations in Myanmar with a local  Telenor recognises that while seminar in February 2017. telecommunications generally  Privacy and freedom of expression contribute to freedom of expression, continued to be high on the agenda  In October 2017 Telenor Group there may be challenges related to the both internationally and within President and CEO Sigve Brekke was business. Telenor throughout 2017. invited to hold the Rafto Challenge lecture at NHH, presenting how  In many situations, authorities may  For more in‐depth information on our Telenor Group works with human have a legitimate need to require internal efforts please see Privacy rights, how we address challenges and telecommunications companies to chapter. how we need to stay vigilant and comply with requests that limit privacy continuously improve. or free communication.  We also ran training sessions on  The ongoing update of the Group and human rights for personnel working on  For Telenor, it is important to seek to BU human rights due diligence will authority requests, e.g. in Telenor limit risks of illegitimate restrictions on continue in 2018, this includes training Norway. privacy and freedom of expression to of key personnel. The outcomes of this the extent that we can. process will inform our priorities for  March 2017 Telenor Group and six the rest of the year. Telenor will also other members of the prioritise the multi‐stakeholder efforts  We therefore have strict policies that Telecommunications Industry Dialogue of the GNI. govern Telenor’s approach in (Millicom, Nokia, Orange, Telefonica, responding to such requests. Telia Company, Vodafone) joined forces with the Global Network  Telenor continues to prioritise Initiative (GNI). transparency and introduces safeguards against potential abuse.

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 As described in the Human Rights Cyber Security chapter, Telenor actively engages in  In 2017, Telenor has further strengthened its privacy function – the Telecommunications Industry  The growing digitalisation of society is both with competence and capacity. Dialogue on freedom of expression making us all more vulnerable both to

and privacy, as well as bilaterally with extreme weather, human and All privacy resources have undergone a range of stakeholders. technical errors as well as hostile acts extensive training and the central that manipulate or paralyse networks  Even though national requirements privacy team in Telenor has been and services. Increased use of vary throughout Telenor’s markets, strengthened with an increase in telecommunications services and ever‐ the Telenor strives to be transparent headcounts. Training has focused on increasing complexity of systems and about how personal data is handled. general privacy upskilling and on infrastructure, leads to more new Telenor believes this is the best implementing improved processes cybersecurity risks. Criminals are approach to ensure and build the trust handling data breaches and requests getting more advanced by the day. of customers and employees. from authorities. In addition, Telenor has produced new internal guidelines  As a network operator and provider of  An internal project to strengthen and tools to assist privacy and digital services, Telenor gives cyber Telenor’s position on privacy was commercial professionals in their daily security has a high priority. concluded in 2015, which addressed work relating to privacy matters. both how the company handles existing customer data and how  The Telenor Group Privacy Policy was  The quality and reliability of our products are designed going forward. simplified in 2017, and the Group telecommunications services depends Telenor has decided to take a Privacy Manual will be revised in Q1 on the stability of our network and the customer value‐driven approach to 2018 with the objective of networks of other service providers privacy. Customers shall get as much strengthening the privacy with which we interconnect. These value as possible when they share organisation. networks are vulnerable to damage or their data with Telenor. Therefore, service interruptions, including whenever the company processes data  Also, the Authority Requests manual interruptions caused by cybersecurity on behalf of customers, Telenor strives was in 2017 updated to reflect and attacks. Repeated, prolonged or to add value to the current experience address new challenges. complex network or IT system failures and deliver more personalised and could damage our services and relevant services. consequently the trust our customers  In addition, the new Data Breach place in us as a reliable Manual was implemented to communications provider.  The commercial strategy of Telenor strengthen the preparedness and identifies the trust of our customers as handling of possible data breaches. one of the critical strategic enablers.  We depend on suppliers and third‐ party providers for supply and  Governments and regulators across maintenance of equipment and  Telenor at the same time believes that Telenor’s markets are taking new steps services. Problems that manifest going forward our dedication to to strengthen privacy and national themselves in relation to the supply privacy can develop into a security regulation and to introduce chain may adversely affect our differentiator in relevant markets. new measures that directly or business and operations. indirectly affect Telenor’s ability to  The aforementioned commercial manage customer data. This trend is strategy addresses the growing expected to continue and Telenor will  This includes placing high security concern among customers regarding also step up its focused work on requirements towards suppliers, who privacy by early consideration of privacy, freedom of expression and must ensure adequate levels of privacy privacy in Telenor’s business processes security to meet both regulatory and security to stay in business. and strategic activities. The current requirements and the expectations of Telenor conducts a high degree of key objective of this exercise is to customers. network monitoring and carries out ensure a strong level of protection of regular and irregular inspections of the Telenor customers’ data and in Europe  In order to meet privacy and security work performed by third parties. to ensure compliance with the challenges, the following areas will be European General Data Protection prioritised in 2018: Compliance with  Telenor is committed to providing Regulation (GDPR). changes in European General Data secure, well‐functioning networks and Protection Regulation (GDPR), services, and has a strong interest in Strengthened responsiveness to data doing so. Our customers and society breaches, implementation of Privacy in general must have confidence in by Design and Default, Security Telenor as a trustworthy supplier of operations, vulnerability management, safe, reliable and secure security architecture, security culture, telecommunications and digital security intelligence and physical services. security.

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 Telenor is taking a number of steps to  A number of key actions will be protect customer data and critical  Furthermore, we are working prioritised in 2018 to meet the privacy infrastructure. We are investing in systematically with the transformation and security challenges, such as: security competence across our own programs in Telenor to ensure that • Compliance with changes in the organization, and we are working with security is an integrated part, and that European data protection regulation, partners and vendors to raise the security and business objectives are related to GDPR awareness and set clear expectations aligned. Through this Telenor is • Strengthened monitoring of and with regards to security. strengthening the security levels and responsiveness to cyber‐attacks controls through several key • Further developing a global  To meet the fast‐evolving threats in transformation projects, such as in operating model for security the cyber domain, Telenor has network virtualization and in common • Further capability upgrade within the developed a holistic, Group‐wide and operating model. area security operations, vulnerability long‐term security strategy aiming at management, security architecture, security culture, security intelligence securing Telenor’s global business. This  In 2017, we started a global Security and physical security. strategy supports the rapid Training Program for all employees in development in technology and Telenor. The aim of the program is to services by early involvement of raise awareness related to a broad security and privacy in business range of security topics, such as processes and strategic initiatives. phishing, secure passwords, and Environment & Climate Change Furthermore, our ambition is to have encryption, through a set of short and security at the core of everything we interactive lessons. do, in order to protect people in their  Telenor is committed to minimising its digital life.  In addition, cyber security exercises environmental impact. Telenor’s  During 2017 the global security have been arranged in several business units operate with the policy organisation in Telenor was business units to raise security of making all reasonable efforts to strengthened with a substantial awareness with top management. minimise use of natural resources number of new security experts. including energy, water and raw  Going into 2018, we will explore materials.  Particular focus has been given to different concepts to not only create strengthening operational security, general awareness on security, but  Climate change is one of the most through improved monitoring and enable a security culture as part of complex challenges facing people, establishing of critical operational every employee in Telenor. businesses and governments. Climate capabilities globally, such as a global related risks include potential Security Operations Center (SOC) and  Externally, Telenor actively contributes damages to vital infrastructure and Computer Emergency Response Team to strategic, international security utilities through the impact of more (CERT). arenas, such as the GSMA Fraud and extreme weather events. Security Group, the Information  Telenor will continue to raise the Security Forum (ISF), "Arendalsuka" in  At the same time the ICT industry’s security level through securing our Norway and through active technology and smart services through systems and architecture, in order to membership in the Europol Cyber Internet of Things (IoT) have the address less sophisticated attacks as Crime Centre Advisory Group for potential to cut global carbon well as advanced attacks. Communication Providers. emissions, reduce resource intensity, stimulate economic growth and  With these capabilities now in place, deliver substantial social benefits. Telenor is better equipped to cater for  The current challenges in the cyber current and future security challenges security domain are expected to and needs, both on Group and increase and play an even more crucial business unit level. role going forward. The industry and  Telenor continues to engage with the society will become more digital and industry organisations – such as GSMA interconnected, for instance by and GeSI – and industry partners to  Telenor Group Security Policy and entering into the cloud and IoT embrace these opportunities. Manuals were updated during 2017 domain. For Telenor, this means we with the objective of strengthening shall continuously have to strengthen Group involvement in strategic our critical security capabilities and  The SMARTer 2030 report (co‐financed operational decisions in the business competencies by establishing a well‐ and supported by Telenor) identified a units. The main purpose has been to functioning global security operating number of sectors where the enabling simplify the governing documents model. potential of ICT can deliver significant during the annual revision of the carbon emissions reduction – up to 20 Governance Work Program (GWP). per cent by 2030 and close to ten times the ICT industry’s own direct emissions. This places ICT as one of the key instruments for the achievement of the climate commitments undertaken in Paris and the implementation of related national action plans.

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 All electronic waste is to be reused,  In Telenor’s Asian operations, the  The mobile industry will risk continued recycled or safely disposed of, and all company has in 2017 continued to growth in its total energy consumption business units are to ensure that these convert traditional diesel‐based on‐ and carbon footprint as mobile processes are conducted according to site generators into renewable energy operators continue to increase their internationally recognised standards with cost‐efficient solar/battery coverage, acquire more customers and and regulations. technology. develop more mobile broadband services due to market needs.  By year‐end 2017, Telenor Pakistan  For the fourth year in a row, the global had installed solar energy solutions for climate reporting organisation CDP more than 700 of its base stations and  The mobile industry requires (formerly Carbon Disclosure Project) is planning for an additional 250 sites significant amounts of electricity in rated Telenor Group in their in 2018. Telenor’s network operations – and ‘Leadership’ category as part of its most power is supplied on‐grid by climate ranking list for 2017. Telenor is  Grameenphone in Bangladesh has national power generation companies. still the best telecom company with more than 1200 solar powered base headquarters in the Nordic region. stations in place, and similarly Digi in Malaysia has close to 60 base stations  In Telenor’s Asian operations, the powered by solar solutions. company also relies heavily on diesel  In 2017, the total data traffic volume used in its on‐site generators – to in Telenor’s mobile network was 2600  Also in Myanmar, Telenor has started power infrastructure off‐grid in petabyte ‐ an increase of more than scaling up with solar/battery remote locations or areas of unreliable 300 per cent from 2016. technology with more than 80 base on‐grid power.  In 2017, Telenor’s total energy stations in 2017 and rolling out consumption was approximately 3,100 solar/battery technology to another  Telenor’s key focus has therefore been GWh – approximately same level as 1400 base stations in 2018. to stabilise energy consumption by for 2016 when comparing without improving the energy efficiency of its India.  In 2017, Telenor Group passed 12 networks, as these represent around million SIM connected devices globally 80 per cent of the total energy  In 2017, our Asian operations on its IoT platforms. consumption. consumed around 69 million litres of diesel to power base stations in off‐  The business units are focusing on grid areas or areas with unreliable on‐  Telenor Connexion, Telenor’s cost‐efficient energy initiatives: grid power. dedicated IoT company, designs and network swaps, sourcing of energy‐ operates global IoT solutions for the efficient technologies, infrastructure‐  The associated emissions of global market. sharing and energy efficient data greenhouse gases in 2017 for Telenor centres and buildings. Group without India have been estimated to be a total of around 1.1  More than 61 per cent of Telenor’s  Changing regulations, significant million tonnes of CO2 when using procurement processes with a reductions in renewable energy costs location‐based electricity emission contract value greater than USD and concerns about energy security factors for the indirect scope 2 250,000 used a specified set of will impact global energy markets. emissions environmental criteria in 2017.  and close to 1.3 million tonnes of CO2  Telenor’s Asian markets are very when using market based electricity  In addition, more than 177,000 different from its European markets – emission factors for indirect scope 2 meetings were carried out in Telenor’s both in the company’s carbon emissions. global organisation using video footprint and the type of energy that conferencing and virtual meeting Telenor uses for its network solutions that are reducing actual operations.  The market‐based method reflects the travel. CO2 emissions from the electricity that  In general, developing countries will a company is purchasing, which may  In 2017, Environmental Management have the opportunity to leapfrog into be different from the electricity that is Systems (EMS) in line with ISO 14001 the renewable age, and Telenor has generated locally in the country. were followed up in our business units already in several of its Asian with the exception of Telenor operations started to replace Myanmar, where planning has started  In the period 2012‐15, Telenor’s traditional diesel‐based on‐site up and EMS implementation will be energy consumption per end customer generators with cost‐efficient finalised in 2018. solar/battery renewable energy (without India) has dropped by approximately 18 per cent and the technology.  Seven Telenor business units are now associated CO2 emissions per end certified according to ISO 14001:  The growing demand for ICT products customer dropped 24 per cent in the Telenor Bulgaria, Telenor Serbia, and mobile devices, and their same period. Telenor Hungary, Digi in Malaysia, increasingly short lifespans, has  In the period 2015‐2017, the Telenor’s Telenor Montenegro, Grameenphone resulted in e‐waste becoming a CO2 emissions per end customer has in Bangladesh and Telenor Pakistan. significant concern and risk for the ICT increased by around 20 per cent due The revised ISO 14001:2015 standard industry. to the significant increase in data has so far been implemented in 8  In this regard, all business units are traffic volume – still being only approx. business units. mandated to secure sustainable waste 6 kg CO2 per customer per year in management. 2017.

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 Mobile handset recycling initiatives   Children will not always get things have been ongoing for several years in By year‐end 2017, such training had right, and when they don’t it is nine of our business units: Telenor been delivered to more than 1.3 important that they have somewhere Hungary, Telenor Serbia, Telenor million children and young people. to turn, and that mechanisms for Montenegro, Digi in Malaysia, dtac in  A further goal is to contribute to grow recovery are in place. Thailand, Telenor Sweden, Telenor a comprehensive ecosystem that takes Denmark, Telenor Norway and Telenor a 360° view of risks, resilience and  Child helplines play an important role Bulgaria, and in 2017 Grameenphone roads to recovery. also started their mobile recycling in this respect and Telenor Group has initiative. in 2017 supported the development of  Ensuring fool proof child online safety an e‐learning programme that is is difficult. There are today numerous  Across Telenor, a total of more than designed to grow the skills of child devices that offer connectivity – and 168.000 mobile handsets and mobile helpline staff who receive calls from child protection features aren’t always batteries were collected and recycled children. easy to set. Once children are online, in 2017 they will engage through a range of service platforms with different  Telenor does this in collaboration with  During 2016/2017, updated features and risks. Parents have a hard Child Helpline International, which is guidelines/manuals for proper job of keeping up with their children. an umbrella organisation for helplines handling of e‐waste have been around the world. The goal of this implemented.  In 2017, Telenor continued to develop effort is that helplines shall be better  Telenor’s key climate measure has the company’s position on child online able to respond to questions relating been to stabilise the energy safety by forging new partnerships to difficult experiences children have consumption in its networks while with influential and strong had online. At year‐end 2017 the e‐ increasing market footprint, since organisations such as BRAC and learning tools were completed and network operations represent around Parentzone and by developing the rollout will commence in early 2018. 90 per cent of Telenor’s total CO2 collaboration with Child Helpline  Surveys conducted among Norwegian emissions. International and UNICEF. parents reveal that many remain  Going forward, Telenor will plan for  Business Units have worked concerned about their ability to scale‐up of renewable energy systematically to deliver on the targets effectively help their children be safe combined with continued focus on that will enable the company to meet online. energy efficiency initiatives in all of its the overall goal of offering meaningful  In an effort to help those parents network operations – resulting in both training to four million children by Telenor Norway has made new savings in operating expenses and 2020. guidance available at the reduced CO2 emissions. Foreldreskolen.no portal. This includes  The group‐wide ‘Be Smart Use Heart’ such topics as setting age‐limits for Child Online Safety brand has now been firmly anchored gaming and social media and across most companies in the Telenor respecting children’s privacy. footprint.  When it comes to picking up new  Telenor believes the best way to keep technologies and services, children  Later in the year a series of experts children safe is to make them aware of and young people have fewer barriers from e.g. Norway’s Criminal common risks and encourage them to than adults. As a result they are among Investigation Service, the Ombudsman make the right choices. Getting the those that benefit the most from for Children, UNICEF and the Snapchat key messages across in an effective connectivity. But in their exploring school nurse “Helsesista” were manner is important and almost all they are also often over‐trusting and introduced through a series of video Telenor Business Units are involved therefore vulnerable. Children’s right interviews. These videos have received with physical outreach programmes in to safety – online as well as offline – more than one million hits. has firm backing in every society. But schools. Along with this Telenor also existing child rights mechanisms and makes available a range of digital organizations are often struggling to resources, mainly to parents and  At the same time, Telenor Norway deliver the support that’s needed. children. continued the “Bruk Hue” school outreach programme and in total  Telenor does not have a direct  In 2017 Telenor took further steps to more than 290,000 children and customer relationship with children. coordinate these efforts by contracting 60,000 parents have been visited since But Telenor’s services are used Parentzone in the UK to prepare an 2009. extensively by young people. interactive and progressive curriculum  Digi in Malaysia continued to develop that can be applied at all local Business their safe internet capacity building  Every Telenor Business Unit is Units. This curriculum will have programme in 2017, striving to bring therefore involved in efforts to grow separate sections on Understanding out their message on online risks and the resilience of young people online, the Digital World, Being a Digital digital citizenship. and by 2020, Telenor Group Citizen and Recovering When Things companies shall deliver meaningful Go Wrong. For parents, there will be a training on how to be safer online to section called Raising Digital Citizens. four million children. Work on this curriculum is now ongoing and it will be available for the Business Units in the spring of 2018.

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Digital Outreach  In February 2017, UNICEF and Telenor  An estimated 8,000 students were Montenegro joined forces with the reached through regular school Montenegrin Government to launch modules in 2017, another 21,000 were  As an increasing number of services #EndViolence, which aims to tackle the reached through a mobile learning unit are becoming available online, negative effects of violence, neglect and 18,000 visitors went through an connectivity is becoming even more and dysfunctional parenting. As part of interactive exhibit in Kuala Lumpur. important in the effort to empower the project, UNICEF launched the societies. Telenor sees this mobile app #Net Friends, focused on development as integral with the  Throughout the year Digi continued its educating children on online violence. company’s commitment to reduce close partnership with UNICEF, The app contains an educational role‐ inequalities in the societies where it through research workshops and a play game, which takes children operates. Clearly the greatest series of townhalls on Healthy Teen through real life scenarios and makes challenges relating to access are in the Relationships & Online Dating, them learn how to recognize, prevent, emerging markets in South Asia, but targeting rural communities in stop and report violence. During May the challenge of ensuring an inclusive Malaysia. and June 2017, 80 teachers from nine internet is relevant for everyone. schools in the capital Podgorica were Telenor remains committed to  Bangladesh has a large young educated on online safety and these bringing the benefits of digital access population with 74.6 million young teachers held workshops for 1300 and outreach to all. people under the age of 24 who are pupils, taking them through scenarios starting their digital journey. from the #NetFriends application.  By year‐end 2017 Telenor had rolled out 4G mobile technologies in all our  As the largest mobile ISP in the  Building on this first collaboration markets, besides Bangladesh. All country Grameenphone is committed between UNICEF and Telenor in business units had also rolled out Wi‐Fi to contribute to a safer internet Montenegro, the cooperation offerings. In its mature markets, experience for this segment by between Telenor Montenegro and Telenor is adding network capacity to empowering marginalized UNICEF was furthered by the signing of sustain and improve the mobile data schoolchildren, especially girls, to a three‐year agreement on “Digital user experience as networks become make the right decisions on how to literacy for every child” in October congested. interact and engage through the 2017. internet.  During March and April 2017, together  In Pakistan, Telenor continued to develop Khushaal Zamindar, which is a  The programme also aims to reduce with partners, Telenor Denmark ran an free of charge Interactive Voice gender inequality around internet online video competition targeting th th Response (IVR), robot‐call and SMS‐ access and usage. Grameenphone is school children from 4 to 6 grade. based service providing localised, also working to sensitives parents, The purpose was to engage children contextualised and customised guardians and teachers on internet on the topic of digital bullying and weather forecasts and actionable safety. encourage them to record a video of how digital bullying is experienced agriculture advisory to farmers.  Since, 2014 Grameenphone has through their eyes. More than a 100  The service provides information on a educated 140,000 children through classes participated in the range of cash crops, fruits & 600 schools across Bangladesh and competition. vegetables, fodder and livestock in directly engaged with 35,000 parents, three different languages. teachers and guardians. 250,000  In 2018, Telenor will continue to run copies of communications material significant outreach programmes to  There are now more than four million have been distributed and 700 achieve the ambitious target of monthly active users, across Punjab, employees participated in the reaching four million children by 2020. Sindh, Gilgit Baltistan and Chitral. programme as ambassadors.

 To ensure scalability Grameenphone  In this effort we will ensure the  Almost 90% of farmers in Pakistan are has partnered with the largest NGO in involvement of our specialist partners, smallholders out of which at least 60 the world, BRAC, which operates the both to ensure the quality of the per cent grow crops for subsistence. largest non‐formal education program materials and guidance we make These farmers have limited or no in the country. available and to ensure that the access to agriculture information content is current and engaging. which results in primitive farming techniques or poor farm management.  With the new Digital Citizenship curriculum Telenor will also  Khushaal Zamindar is in effect bridging significantly add to the online the information gap between resources available on our websites smallholders and the large progressive farmers.  To ensure that the work undertaken in this area is meaningful to the defined  As an extension of this successful target audience it is important to concept, Khushaal Aangan is aimed at strive to listen to the voices of children empowering Pakistan’s female and young people as well as their farmers. parents.

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Innovating Shared Value  This has included sessions on the  In December 2017, in partnership with Punjab Livestock and Dairy essentials of communications Development Board, Telenor Pakistan technology, online marketing for  Telenor strives to introduce innovative launched a free of cost IVR service agricultural products, required uses of digital communication to designed for female farmers in Punjab. resources required for doing e‐ improve people’s lives, with solutions commerce, risks of financial scams, that can address social, economic and environmental problems, close the  Appreciating the cultural sensitivities trust protocols as well as workshops inequality gap and empower societies. in the rural setting of Pakistan which on how to build online stores. inhibit access to phones by females  Dtac has also partnered with  Telenor is committed to helping world and interacting with male voices on Thailand's National Electronics and leaders achieve the UN Sustainable the other side, a dedicated Computer Technology Center and the Development Goals that were set in information service for females Department of Agricultural Extension, 2015 addressing their specific needs is an inventing an IoT solution for ambitious effort towards digital agriculture. The device, a sensor with  Leveraging the power of mobile for inclusion of smallholder farmer the capability to monitor five sustainable development includes women. parameters (light, soil humidity, applying innovation, resources and temperature, water and wind) is linked expertise to pursue the business  Khushaal Aangan was able to sign up to a router with a dtac SIM relaying opportunities inherent in building a more than 30,000 users in less than this information to the cloud. The greener, more equitable and inclusive one month. solution will enable the sending of society. targeted advisory information to  Telenor Denmark’s “Kør Godt” is a free farmers based on farm‐level granular  In Telenor, research is key in helping driving app that enables users to track data, thereby helping smallholder the company gain insights and and improve their driving skills. It is farmers achieve productivity gains. competencies to become a data driven the only telematics based insurance The solution will e.g. help monitor and software organization. This ambition product on the Danish market that automatically adjust temperature in a also has a sustainability dimension. does not require the user to install any storing room depending on crop Research in using big data – the kind of technical equipment in the car. specificity. In early 2017, thirty sets of information flow from digital “Kør Godt” enables all users to devices were installed and trialled by communications analysis – has the capitalize on their own data – either in farmers across the country. potential of providing important a very direct way by using them to insights that can help tackle socio‐ have a fair discount on their car economic challenges, such as the early insurance or utilizing them to monitor  Telenor Myanmar’s digital literacy identification and prevention of their own skills behind the wheel and centres, the Lighthouses, are multi‐ diseases. becoming better drivers. purpose online hubs for local communities in Myanmar. They serve  In 2017, Telenor and UNICEF as digital literacy centres, they host  Telenor Hungary’s E‐Tanoda continued the global partnership to child online safety sessions as part of programme enables digital tutoring leverage the reach and capability of Telenor Myanmar’s outreach work, based on a peer‐to‐peer concept connectivity for children’s rights and they are part of the company’s point where students from the top‐ development. In 2017, Telenor and of sale network and they are often performing Budapest secondary UNICEF continued building on their local printing hubs. schools mentor children, mostly from strong collaborated on promoting child Roma communities, living in  Since November 2015, close to rights and Safe Internet in Bangladesh, disadvantaged settlements. This pilot 100,000 students have received online Thailand, Malaysia, Denmark and project started in January 2017 and safety training at Telenor Myanmar’s Hungary and stepped up their was later extended to two new rural Lighthouses partnership in both Serbia, sites in five secondary schools in Montenegro and Norway. Budapest. Telenor has been working  During 2017, some Lighthouses were  In Pakistan, Telenor, UNICEF and with Microsoft and the Foundation for discontinued, as they were not government authorities are 21st Century Pedagogy on the project. successful in fulfilling their role in the local community. Other centres were collaborating to improve the birth established in the same period and 61 registration rates using cellular  In 2017, dtac continued to develop its Lighthouses were in operation at year‐ technology. In line with the global SMART farmer project in Thailand, end 2017. goals, the project will empower which aims to empower farmers unregistered children with legal through access to knowledge and identity that can help curtail child information on their mobile phones. labour, trafficking and marriages as well as ensure availability of authentic  In partnership with the Thai Ministry and timely data for better planning of Agriculture and Cooperatives, dtac and access of public services like has run extended online marketing justice, health, education and training courses nationwide to help immunization. farmers successfully present and sell

their products online.

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 Wave Money is working with Save the  The service includes discounted access  Given the learnings during Children to provide income support as to a qualified doctor over the phone, infrastructure development and well as financial literacy training. discounts on services at over 200 deployment, which among others Beneficiaries receive transfers via hospitals, diagnostic centres, and included the need for further time Wave Money. Through targeted pharmacies, health and wellness investment in quality capacity building, financial literacy trainings, content and free “hospital cash” the project has been delayed and will beneficiaries learn how to plan a insurance coverage to help with cost not reach the target for 2017 to budget and to save for small such as lost wages and medications. register the births of 700,000 children. investments to run a small business.  By end 2017, more than 4.7 million  Easypaisa is supporting the Benazir Grameenphone subscribers had joined  Nevertheless, the project has been Income Support Programme that scaled up to five districts in the TonicFree, with the member base provides income support to growing by as much as 20,000 per day provinces of Sind and Punjab in 2017. underprivileged families. The female recipients are provided with a monthly  A significant ramp up in design and disbursement and the beneficiaries  In April 2017, Telenor Health and scale from the pilot, the public birth use mobile phones or specially Grameenphone launched the first two registration infrastructure is now designed ATM cards to cash‐out their customer‐paid Tonic products, “Tonic digitized in the target districts and benefits via a mobile money agent. Astha” and “Tonic Shurokkha”. Aimed more than 4200 designated The program focuses on woman at the emerging middle classes, Astha government facilitators are trained empowerment to ensure provision and and Shurokkha include more and equipped to report births via family substance. Easypaisa facilitates comprehensive health insurance Telenor’s mobile based solution. access to funds in remote areas of coverage and free access to doctors Pakistan and Easypaisa currently via phone and chat, making high‐  Designated facilitators have started distributes funds to approximately 1.5 quality healthcare more accessible. reporting data with more than 100,000 million unique beneficiaries as part of Grameenphone and Telenor Health birth reports submitted and 20,000 this program. have sold paid Tonic offerings to both births registered as of end of 2017. business customers and consumers,  Telenor Group is offering life and including through new channels such  The target set by the partners for 2018 health insurance to customers in as pharmacies. is to register the births of 700,000 girls several markets. Grameenphone’s and boys. Nirvoy Life Insurance systems'  Based on our 2015 study using big data for social good analysis for  In Thailand, dtac, UNICEF and the increased its customer base to studying the spread of dengue in Ministry of Health are continuing their approximately 5,670,000 in 2017. Pakistan, and the impact of human work providing users with free mobile  The aim of the service is to act as a mobility, Telenor Group has continued information services to promote mass loyalty product in addition to our collaboration with Harvard’s TH healthy mothers and children. In our offering Grameenphone customers a Chan School of Public Health. systems we registered more than social safety‐net. 280.000 active subscribers in 2017.  Throughout the year, preparatory  Easypaisa’s first mass market health work for studies on the spreading of  In 2017, the efforts of Telenor Serbia, insurance Sehat Sahara reached multi‐resistant malaria in a contiguous, UNICEF and local authorities continued 125,000 subscriptions in 2017. three‐nation area (Thailand, to enable the social inclusion of the Bangladesh and Myanmar), has been Roma population in Serbia including  Telenor Health, a digital health conducted. connecting this population to health subsidiary established by Telenor services. Group in 2015, leverage technology to help make high quality health and  The work is now 90 per cent on the  Telenor is focusing on initiatives wellness information, advice, and way towards the big milestone of full aiming at promoting the financial services accessible to everyone, approval and first level data extraction inclusion of women. particularly for people in emerging in all three countries. markets.  In Myanmar, Wave Money, with support from the UN Capital  Opportunities to explore a study of Development Fund, is developing a  In Bangladesh, Telenor Health dengue in Malaysia are also being gamified smartphone app to continued their partnership with explored. We are also looking at other strengthen financial literacy among Grameenphone to offer “TonicFree”, a potentially interesting insights to be women in remote areas. Through the free service to all active garnered from this kind of research, gaming application people will learn Grameenphone subscribers as part of e.g. studying influenza in Norway about savings, interest payments and an effort to drive both societal impact insurance while they play. The app will and customer loyalty . be launched in 2018.

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Mobile Phones and Health Service Reliability  In both situations, power company teams and Telenor teams solved  At all its base stations and antenna  2017 was also a year when millions of power problems on most of the sites installations, Telenor is committed to people were affected by heavy quickly and the functioning of the adhering strictly to national and flooding in our markets in Asia. network was restored within 24‐48 international guidelines for health and hours. safety.  In Myanmar, Telenor provided life‐  2017 ended with two storms, Ylva and  Across Telenor, our business units saving food, water and sanitation Aina, both with moderate impact on work in accordance with the items to flood affected households in the network. Electricity outages and guidelines provided by national Pakokku township, one of the three fibre damage were the main reasons regulations and the International worst affected townships in the for Telenor’s customer impacts. A Commission on Non‐Ionizing Radiation Magway Region during the flooding in mobile mast collapsed due to strong Protection (ICNIRP). These guidelines August. Provision of relief assistance winds during Ylva in November 2017. are endorsed by the World Health was carried out by Telenor's The mast was rebuilt and critical Organisation (WHO) and represent the implementing partner Network services were re‐established before basis for all planning, installation work Activities Group (NAG). A solar‐ Christmas. and safety measures at antenna sites powered mobile phone charging station for affected people helped to  Telenor Norway has, since the Dagmar  Telenor is also committed to keep them connected. (third strongest storm to hit Norway in recognising and respecting the public’s 50 years) swept over the country in interest in acquiring environmental 2011, increased reserve power information about electromagnetic  In August, Bangladesh faced one of the capacity at its installations, enhanced fields, and striving to provide worst flood situations in decades. battery backup at several base stakeholders with accurate and stations, and acquired high‐tech relevant information relating to  As a conscious corporate citizen, mobile trailers ready to cater for installations, services and products. Grameenphone came forward to communication in crisis areas. support those affected. Cascading rain  As far as EMFs in the frequency ranges waters from the mountains, coupled  Telenor Norway also has mobile used for mobile communications are with the heavy monsoon rains in generators, which can supply concerned it is important to note that Bangladesh itself, burst the banks of electricity to communication the WHO has concluded that the rivers and flooded low‐lying equipment during serious power ‘Considering the very low exposure Bangladesh. Grameenphone came failures. In addition, the company runs levels and research results collected to forward to support those most badly emergency drills and maintains a date, there is no convincing scientific affected through its disaster response dialogue with relevant authorities evidence that the weak partner, the Bangladesh Red Crescent about robustness and emergency radiofrequency signals from base Society (BDRCS). Grameenphone response. stations and wireless networks cause network teams also worked day and adverse health effects.  Many of Telenor’s business units, night to ensure that the GP network especially the ones operating in remained, as always, the most resilient disaster prone areas have sound  The WHO further states that ‘research in the face of such a calamity. backup plans and redundancy options has not been able to provide support to ensure service reliability under for a causal relationship between  Tropical storms in August led to severe challenging circumstances. exposure to electromagnetic fields and flooding in the northeast provinces of Thailand, which affected dtac’s self‐reported symptoms, or electromagnetic "hypersensitivity’. network installations. Dtac emergency teams surveyed at incident areas and How Telenor Impact Societies reported back to relevant parties for

 However, as mobile and wireless urgent action. Further, dtac solutions become ever more coordinated with the government to  Telenor’s global business contributes ubiquitous, concerns about possible donate survival kits, and also provided to society in a multitude of ways. Our health risks from the long‐term use of free air‐time to victims in the incident digital services impact local economies mobile communication solutions or area. via direct value creation, innovation from living near mobile and productivity gains in other communication towers are voiced in  A storm caused power outages and industries, employment, investments all the countries in which Telenor transmission interruptions at 35 base in future value creation, and companies operate. stations in Montenegro at the contribution to public finances via beginning of January. taxes and other levies.  For further information;  We also believe that our business www.telenor.com/sustainability/respo  Storm and heavy rain in south, impacts social standards positively by nsible‐business/safe‐services/mobile‐ southwest and western Serbia caused exercising good corporate governance phones‐and‐health/ power outages on 106 base stations in and compliance with good business September. conduct, and by enhancing sustainable business practices which drive the focus on social and working conditions in other sectors.

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 Telenor are committed to UN  Telenor Group has an internal Policy  Business heads are required to Sustainable Development Goal #10 on Tax. This Policy is approved by our immediately notify the Tax Policy Reduced Inequalities as we believe this Group President & CEO. The Policy is owner about matters that may is where we can deliver the most owned by our Group CFO, who is represent a tax exposure, and impact. We believe the most effective responsible for the tax strategy, the continuously update the Tax Policy way for us to contribute to this goal is supporting governance framework and owner on any subsequent to deliver wider access to our services for management of tax risk. developments. and to raise the standards of our own work and help raise those of our Day‐to‐day responsibility for each of  In international matters, we shall partners in society. these areas sits with the Group Head follow the terms of the relevant of Tax, who reports to the CFO, and Double Taxation Treaties and relevant will be communicating our tax strategy OECD guidelines in dealing with such  We are focused on amplifying and throughout the group. Furthermore, issues as transfer pricing and accelerating our impact on the SDGs, Telenor´s Code of Conduct is our establishing taxable presence. through working with partners on backbone, defining the ethical initiatives such mobile birth standards for how we all conduct our  Concerns with regard to so‐called tax registration, growing children’s business. havens have been mounting in recent resilience online and focusing on years. Extensive efforts are ongoing decent working conditions in our  Telenor Group shall be a prudent tax internationally to prevent tax evasion supply chains. We have set targets for payer worldwide, and is committed to and non‐disclosure of financial this work and have reported on ensuring compliance with all relevant information through the use of tax progress in this report. From services, legal tax filing, tax reporting and tax havens. Norwegian authorities have such as mobile money and mobile payment obligations globally. We concluded tax information exchange agriculture, to big data for social good recognise a responsibility to pay the agreements with a number of new and mobile health services, we’re correct amount of tax in each of the countries. Norwegian requirements for making a difference and contributing jurisdictions in which we operate. We country‐by‐country reporting have so to the Sustainable Development goals. may respond to tax incentives and far only been introduced for large exemptions, and aim to avoid double companies and the issuers of listed securities in the extractive and forestry  It is Telenor Group’s responsibility and taxation on capital gains and dividend industries. our ambition to contribute to repatriation. Contracts entered into economic, environmental and social between separate legal entities within  Since 2014, Telenor Group has development in countries where we the Telenor Group shall be communicated a sincere commitment are present, acting with accountability documented and be in accordance to corporate responsibility by and transparency. We aspire to be a with the arm’s length principle. voluntarily reporting country‐by‐ trusted company, recognized for country incomes and tax strong business ethics. We recognize  We shall be open and transparent with contributions. We support initiatives all States sovereign right to introduce tax authorities about our tax affairs, to improve international tax new tax legislation and to amend old and provide the information that is transparency, including OECD legislation. We understand the necessary for those authorities to initiatives for country‐by‐country importance of the taxes we pay in perform their work in a collaborative, reporting and automatic exchange of supporting the development and courteous and timely manner. information. growth of the communities in which we operate and take a responsible  Telenor Group aims to apply diligent approach respecting our tax Economic Contributions to Society obligations. professional care and judgement, including ensuring that all decisions are taken at an appropriate level and  There is an increasing focus on the  We support a stable and transparent supported by documentation that discrepancy between the positive fiscal environment that is based on evidence the judgements involved. We growth effects of globalization and universal tax principles, levying tax shall always be able to defend our digitalization, against the unequal based on predictable legislation positions, and external advice may be distribution of the gains of this applied by objective authority, and sought in relation to areas of development. In many countries, tested by independent court systems. complexity or uncertainty to support stable economic growth combines Our aim is to engage constructively in the Group in complying with its tax with stagnant, or even falling real dialogue with relevant authorities on strategy. incomes for parts of the population. tax legislation such as review of tax rules and the need for any changes.  We aim to manage tax risk in the same We support initiatives to improve way as any other operational risk international transparency on taxation across the Group. Business heads will matters, including OECD measures on generally take the lead role in country‐by‐country reporting and identifying, managing and monitoring automatic exchange of information. tax risks within the business.

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 We believe that we can contribute in  Mobile communication creates a two basic ways to close the emerging vibrant ecosystem of large and small inequality gap. We already contribute businesses that employs millions in to reduced inequalities by providing Telenor’s markets. internet access, digital and financial inclusion, which again empowers  During the coming years, Telenor is entrepreneurship among those in committed to invest further in our need of new income. Further, our markets in support of the ambition to contributions to public finances enable capture new growth opportunities, public services in education, health, enhance internet access and and other services that benefit all. We connectivity, and improve efficiency. support the obligation of corporate  In 2016, a study conducted by KPMG organisations to pay they lawful and quantified Telenor’s economic legitimate, due share of taxes and contribution to our 13 countries of levies in the countries of local operation, at a total of USD 20.3 billion operation. Still, it is largely in the (NOK 163.8 billion) in 2015, divided hands of local governments to ensure between USD 7 billion (NOK 56 billion) that legitimate tax revenues have a in direct gross value added by our own socially just effect on society via public business, and a further USD 13.4 services. billion (NOK 107.8 billion) value added induced in other companies through  Telenor is dedicated to enhancing our local value chains and employee mobile communication and digital spending. services to facilitate economic development and better public  The methodology to estimate direct services. value added was further elaborated at company level in December 2016  The role of mobile services and digital (Telenor Research 05/2016: Telenor in access in economic growth and the National Economy: A innovation is becoming increasingly Methodology). evident. The vital role of digital services was acknowledged in 2016  The corporate income tax rate has when both the European Union and been reduced in some countries over several national governments devised the last years, which will have an digital modernization strategies, impact on our payable taxes. including in the Nordic countries, Hungary, Pakistan, and Thailand.  Entering 2017, Norway reduced the corporate income tax rate from 25 per  In 2017, Telenor made enhanced cent to 24 per cent, and in 2018 the contributions to the Digital Norway tax rate will be 23 per cent. initiative by investing in the Norwegian Industry 4.0 centre  In Hungary, the corporate income tax (Toppindustrisenteret). was reduced from 19 per cent to 9 per cent in the same period  Telenor also engaged in national dialogue with governments on  However, corporate income tax (CIT) is improved telecom frameworks in only one part of our total tax Myanmar and Bangladesh. contributions ‐ we also pay several  Telenor has reported our country‐by‐ industry‐specific taxes, fees, indirect country earnings, investments, taxes (VAT, GST, sales tax etc.) and taxation and employment, since 2014. customs duties.

 Telenor advises governments to forge  Telenor Group follows the terms of tax systems based on universal tax applicable Double Taxation Treaties, principles as advocated by the IMF and relevant OECD guidelines in dealing World Bank, with universal tax levels with transfer pricing and establishing across a broad tax base. taxable presence, and the recently introduced BEPS initiatives. We  Tax collection practices should rest on endorse the aims of transparency and predictable legislation applied by an fairness across the global tax system, objective authority, tested by exchange of financial information, and independent courts. Predictable and concerted action to fight base erosion universal taxation is a crucial and profit shifting. Our policy and safeguard for efficient investment and practice is in line with legislation in all affordable services for everyone. our markets.

Claims assured by DNV GL Final