SUSTAINABILITY REPORT 2018 TABLE OF CONTENTS LETTER FROM THE CEO ...........................................................................................................................................3 KEY OPERATING STATISTICS OF MAGYAR TELEKOM GROUP .................................................................................... 46 OUR APPROACH ......................................................................................................................................................5 ASSURANCE STATEMENT .......................................................................................................................................48 Sustainability approach .........................................................................................................................................................................................5 Corporate strategy ..................................................................................................................................................................................................5 GRI CONTENT INDEX .............................................................................................................................................. 49 Sustainability strategy 2016–2020 aligned with un sustainable development goals ................................................................................5 Materiality .................................................................................................................................................................................................................7 COMPLIANCE WITH THE PRINCIPLES OF THE UN GLOBAL COMPACT ........................................................................ 72 STAKEHOLDERS ......................................................................................................................................................8 LIST OF ABBREVATIONS ......................................................................................................................................... 73 Materiality evaluation by stakeholders ...............................................................................................................................................................8 Stakeholder involvement .......................................................................................................................................................................................9 IMPRESSUM .......................................................................................................................................................... 75 Frequency of the involvement of our stakeholders and key events in 2018.................................................................................................9 1. CLIMATE AND ENVIRONMENTAL PROTECTION .................................................................................................... 13 1.1. Emissions and energy efficiency ...............................................................................................................................................................15 1.2 Environmental impacts ................................................................................................................................................................................18 1.3 Waste ..............................................................................................................................................................................................................18 2. RESPONSIBLE SERVICE ..................................................................................................................................... 20 2.1 Closing the digital divide ............................................................................................................................................................................ 21 2.2. ICT for sustainability .................................................................................................................................................................................... 21 2.3 Innovation for sustainability ....................................................................................................................................................................... 22 2.4 Protecion of our children in the digital age ............................................................................................................................................. 23 2.5 Data Protection ............................................................................................................................................................................................ 23 3. SUPPLIERS ....................................................................................................................................................... 25 4. CUSTOMER RELATIONS ..................................................................................................................................... 28 4.1 Customer satisfaction ................................................................................................................................................................................. 29 4.2 Customer Complaint Management .......................................................................................................................................................... 30 4.3 Involvement of our customers ................................................................................................................................................................... 30 4.4 Informing our customers .............................................................................................................................................................................31 5. EMPLOYEES ..................................................................................................................................................... 32 5.1 Human rights and equal opportunities .................................................................................................................................................... 33 5.2 Involvement of employees.......................................................................................................................................................................... 36 6. SOCIAL ENGAGEMENT ......................................................................................................................................38 6.1 Community investment ............................................................................................................................................................................... 39 6.2 Our employees and social engagement...................................................................................................................................................41 6.3 Sponsorship ................................................................................................................................................................................................. 42 7. CORPORATE GOVERNANCE ...............................................................................................................................43 7.1 Sustainability coordination ........................................................................................................................................................................ 44 LETTERS FROM THE CEO LETTERS FROM THE CEO 33 TABLE OF CONTENTS LETTER FROM THE CEO DEAR READER, It is my privilege that, as the CEO of the company, I can present cooperative communities in order to serve our clients’ needs to you Magyar Telekom Group’s Sustainability Report 2018. even better. The only way we can achieve this is by working together in teams, where people can be themselves, regardless Our results show that sustainability based upon the harmoniza- of their backgrounds, and where our differences are being built tion of economic, environmental and social interests is a profit- upon, because we believe that innovation springs from diversity. able operational model, indeed. The measures we have taken for the sake of sustainability in our business are being confirmed It is our firm belief that by seizing the opportunities offered by by the outstanding ratings we have achieved in terms of inter- digitalization, we can help people to become true winners of national investor assessments and indices. In their report pub- their lives. We are convinced that ICT can link the needs and lished in April 2018, responsible investor analysts, ISS-oekom problems of society with the innovative solutions that address ranked Magyar Telekom as the highest performer in its indus- them, thus enabling us to build a better-informed, more ready- try considering its dedication to corporate sustainability. We to-act society, living a better life. Due to its size, Magyar Telekom retained our position as member of the London-based FTSE- is a major social and economic player, thus can have a signif- 4Good index family in 2018, too, the assessment relevant to icant impact on social issues. The scope of our responsibility which put the company among the top 10% performers in the extends to all those whom we enable by ICT solutions, and we sector, while MSCI ESG Research gave us an AA ranking on a build a corporate structure in which responsibility for the soci- scale ranging