BT Social and Environmental report
Contents
Summary and highlights Business principles Community Customers Employees BT and the Environment Suppliers CSR for investors Economics Human rights Stakeholder dialogue Sustainability BT and Digital inclusion Data and targets About the report BT Social and Environmental report
Summary and highlights Who we are Highlights
BT Group is one of Europe’s leading We have selected 11 non-financial key providers of telecommunications performance indicators (KPIs) to provide services. Our principal activities include a quick overview of our social and local, national and international environmental performance. telecommunications services, higher- value broadband and internet products This performance relates to the 2004 financial year, compared with 2003: and services, and IT solutions. • Customer dissatisfaction down 22% In the UK, we serve over 20 million businesses • Broadband now available to more than 85% and residential customers with more than of all UK homes and businesses, up from 67% 29 million exchange lines, as well as providing network services to other licensed operators. • People Satisfaction Index increased from 67% to 71% • Increase in the percentage of ethnic minority employees from 8.6% to 8.9% and disabled employees from 2.0% to 2.1%, though the percentage of women declined from 23.6% to 22.7%
• Global Warming CO2 emissions now 42% lower than 1996 • Waste to landfill down 10,201 tonnes to 79,677 tonnes, percentage of total waste During the year recycled up from 24% to 26% we were ranked as • Health & Safety significant incident the top telecommunications rate down from 113 to 87 per 10,000 company in the Dow Jones full-time employees Sustainability Indexes for the • Percentage of suppliers stating they have a third year running. This index good working relationship with BT is 94% recognises companies that manage • Ethical trading risk assessment questionnaires social, ethical and environmental completed by 242 suppliers and 13 on-site issues in ways that grow assessments undertaken shareholder value and promote • Awareness of our Statement of Business sustainable development. Practice in the UK up 1% to 84% • Direct community investment of £5.6 million plus £12.4 million in further funding and support in kind.
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BT Social and Environmental report | Summary and highlights 2 Chairman’s introduction
Our purpose applications which will enhance the learning is to improve experience. BT volunteers are helping schools take advantage of these opportunities. communications for our customers. Our Corporate Social Responsibility programme Our ambition is for – described in the Better World website – is vital to encourage our customers to buy from us, our customers to investors to put their trust in us and the best benefit fully from people to work for us. increased connectivity. Our vision can be summarised by the phrase – Our challenge Connecting your world. Completely. Our challenge is to manage social, ethical and environmental issues in a way that grows BT’s social responsibility is about doing this in a shareholder value and encourages sustainable way that is caring and responsible, helping as development. many people as possible. Our goal is to help The Dow Jones Sustainability Indexes rank everyone benefit from improved communications companies for their success in achieving this and to spread the benefits of our technology as challenge – so I was delighted when we were widely as we can. ranked as the best telecommunications For example, we are determined to spread the company for the third year running. I am benefits of broadband as widely as possible. proud of this achievement and thank all the Our aim is to connect every UK community, motivated people across the whole of BT that even remote or rural ones, by 2005. made it happen. Setting up public-private partnerships across The index recognises the approach we the UK will bring broadband to areas where have taken to a broad range of issues – exchanges have not yet been enabled. And everything from business principles to existing partnerships – such as ActNow in customer service, and from work-life balance Cornwall – show what can be achieved through of BT people to ethical supply chain broadband. This project has already delivered management. It reflects our ambition to 1,200 jobs and a £20 million boost to regional create shareholder value by meeting the gross domestic product. Our digital inclusion expectations of all our stakeholders. project Everybodyonline is finding ways in which I’m happy to report that we have won a number more deprived communities can also benefit. of prestigious awards in recognition of our The UK Government has made a commitment efforts to be socially responsible – the Queen’s to connect all primary and secondary schools to Award for Sustainable Development, the 2003 the internet using a broadband connection by Best European Corporate Pension Fund Award 2006. We are delivering educational services and the UK Chartered Institute of Purchasing such as online learning packages and interactive and Supply’s Award for Supply Management. Our objective now as we transform our company for the years ahead is to maintain and improve this level of performance.
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• A A1000 AS Information and data on this page Sir Christopher Bland has been verified Chairman by Lloyd’s Register Quality Assurance Ltd. 13 May 2004
BT Social and Environmental report | Summary and highlights 3 Chief Executive’s message
Our values But the business case for Corporate Social Responsibility won’t work unless it generates A year ago we real, lasting trust with all stakeholders. And a established five new company can’t build trust on an amoral basis. values to capture the We won’t build value without our values. essence of what BT Our performance people need to do and what they need to stand for: Our non-financial performance underpins the achievement of our financial goals, which is why Trustworthy we publish 11 non-financial key performance we do what we say we will indicators and ten strategic targets. Our headline target is to reduce the number Helpful of dissatisfied customers by 25% a year over we work as one team three years. Inspiring We are committed to connect all UK communities we create new possibilities to broadband by 2005 – but also to cap our CO2 Straightforward emissions at no more than 25% below 1996 levels by 2010. We have made excellent we make things clear progress on health and safety in recent years Heart and have doubled our target for a reduction in we believe in what we do incidents to 50% of 2001 levels by 2005.
Only by living these values can we transform Transparency our company for the challenges ahead. This year we had to manage some hot social And only by living these values can we fulfil issues – not least the opening of two new call our commitment to leadership in Corporate centres in India. Transparency in dealing with Social Responsibility. controversial issues is paramount. We will never satisfy everyone, so openness is key. Being trustworthy means acting with integrity, keeping our promises and implementing our You can read more about our performance and business principles. our approach to these controversial issues throughout our Better World web site, which Being helpful means listening to the needs of our contains the BT Social and Environmental report. stakeholders and meeting their expectations. The report has been prepared in accordance Being inspiring means embracing new ideas that with the 2002 Global Reporting Initiative contribute to sustainable development. Guidelines and is independently verified. Being straightforward means being clear and It represents a balanced and reasonable honest in our communications. presentation of our economic, environmental and social performance. It also sets out our And heart is believing in what we do – being progress in implementing the United Nations passionate about the power of communications Global Compact Principles. to bring friends, families and colleagues together in the creation of a better world.
R QU A L T E I T Y I S A Our business case G E S
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• A A1000 AS enhancing a reputation for being socially Information and responsible can improve customer satisfaction data on this page has been verified and increase revenue. Ben Verwaayen by Lloyd’s Register Chief Executive Quality Assurance Ltd. 13 May 2004
BT Social and Environmental report | Summary and highlights 4 Stakeholder dialogue
The quality of our relationships with We recognise two trade unions, Connect a range of stakeholders – including and CWU, and run a European Consultative Works Council. customers, employees, suppliers and local communities – is critical to the Customers, employees and shareholders success of our business. The more were consulted during the identification of the 11 non-financial key performance indicators we positive and mutually beneficial these have chosen to provide an overview of our social relationships are, the more successful and environmental performance. our business will be. Our Statement of Business Practice, The Way We Work, sets out the aspirations and Engaging with stakeholders deepens our commitments that apply in our relationship with understanding of what they expect from us each stakeholder group. and how we can meet – and exceed – their expectations. It also challenges how we work We also run occasional online discussions about and inspires new ways of doing business. social and environmental issues, and welcome feedback on our performance through For example, our online Social and [email protected]. Environmental report describes how: • Our consumer liaison panels helped shape our call centre strategy • BT managers work with their teams to analyse the results of our annual employee survey and implement improvements • Our ethical trading forums with suppliers have led to an industry-wide approach to the promotion of human rights in the supply chain.
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BT Social and Environmental report | Summary and highlights 5 Customers
Broadband Key Performance Indicator Putting broadband at the heart of our Customer dissatisfaction reduced by 22% operations is one of our strategic priorities. In the 2004 financial year we continued in our Strategic target drive to enhance the awareness, availability and Reduce customer dissatisfaction by 25% a year attractiveness of broadband. over the 3 years to the 2005 financial year Broadband is an always-on high-speed connection to the internet that uses standard telephone lines. Modifications at the exchange Key Performance Indicator provide a much larger capacity (hence Broadband available to more than 85% of all broadband) to send and receive data. UK homes and businesses, up from 67% Broadband is expected to bring a range of economic, social and environmental benefits, Strategic target such as: Broadband available to exchanges serving over 99% of UK homes and businesses by • Enhancing the productivity of individual summer 2005 enterprises, industrial sectors, regions and the economy as a whole • Increasing opportunities for teleworking, In the UK, we serve 20 million businesses and reducing the need to travel residential customers with more than 29 million • Remote diagnosis and in-home care, bringing exchange lines, as well as providing network health benefits services to other licensed operators. • Increased access to learning materials. Our extensive global network and strategic partnerships enable us to serve multi-site Our strategic aim is to bring broadband to all corporate and government customers in all key parts of the UK. commercial centres of Europe, North America As at 31 March 2004, more than 85% of the and Asia. In Europe, this network links more UK’s homes and businesses were connected than 250 towns and cities across 19 countries. to broadband enabled exchanges. We are committed to make broadband available to Customer satisfaction exchanges serving over 99% of UK homes and Reducing customer dissatisfaction by businesses by summer 2005. 25% a year over 3 years is a key target We are working to improve the quality of in our drive to deliver the highest levels of online information and access to the internet. customer satisfaction. See Digital inclusion, page 25. Customer dissatisfaction measures those customers who are fairly, very or extremely dissatisfied with BT. In the 2004 financial year we achieved a 22% reduction in customer dissatisfaction. This follows a 37% reduction in the 2003 financial year.
R QU A L T E I T Y I S G A E S R S The principal lines of business all reduced
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BT Social and Environmental report | Summary and highlights 6 Customers continued
Consultation Customers who are older or disabled We carry out in-depth consultation to Everyone should have the same freedom and understand our customers’ needs and concerns. opportunities to communicate. For example, we run a number of consumer For many years we have offered a wide range of liaison panels across the UK. These consist of products and services to elderly and disabled 12–15 consumers with a broad range of customers who might otherwise find it difficult experience and usage of communications to make the most of telecommunications. technology – as well as different needs, interests, ages and cultural backgrounds. For example, one of our major commitments is Typetalk, a national telephone relay service. Panel members provide valuable insights into Funded by BT since it started in 1990, and consumer thinking and inform policy-making run by the RNID, a charity representing deaf within BT. The panels regularly discuss a range and hard of hearing people in the UK, this of issues including customer service, how we service enables textphone users who may be keep customers informed, mobile telephony, deaf, deaf-blind, hard of hearing or speech- payphones, billing, access to and marketing of impaired to make and receive calls to and from broadband technology, and the provision of hearing people. services for customers with disabilities. Launched in July 2001, BT TextDirect is the Consumer liaison panels have also helped us world’s first service to provide textphone users to understand consumers’ perceptions of access to the telecommunications network. It Corporate Social Responsibility, and to define helps Textphone users get access to RNID our key performance indicators. Typetalk operators and simplifies the making and receiving of calls between voice and Textphone users.
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BT Social and Environmental report | Summary and highlights 7 0
Employees
We employ approximately 99,900 Key Performance Indicator People Satisfaction Index* people around the world, including 91,600 in the UK where we are one of 80 the largest employers. 71 60 67 67 66 65 Our approach is to treat our people fairly and responsibly, helping them achieve their full % 40 potential, while respecting their personal and community commitments. 20 We believe this to be in the best interests of our 0 employees, of society and of our business. 2000 2001 2002 2003 2004 Recruitment *A new “Employee Engagement Index” is being introduced. Results and a new target will be available during the 2005 financial year. BT is a major recruiter, employing thousands of new people each year – and we need to be sure Key Performance Indicator that we attract, select and retain the best. Percentage of ethic minority, women and During the 2004 financial year, we recruited disabled employees in BT 180 new graduates, 157 modern apprentices 30 and 1,950 other new entrants. As part of our Women continuing programme to reshape BT, 4,514 2005 Target 25
25 2 people left the company voluntarily, by leaver 6 .4
2 payments or voluntary redundancy. 2 3 3 22 . . 9 6
20 . 7 Training and development % 15 We seek to encourage and provide people the opportunities for personal growth and 10 Ethnic minorities 2005 Target 8 professional development. In the 2004 financial 8 8
. year, BT successfully achieved re-accreditation . 7 9 7 6 . .5 5 7 as an Investor in People (IiP), a standard of 2.0 2.0 2.0 2.
1 good practice for training and development in 0 the UK. 2001 2002 2003 2004 2005
Women Ethnic Minorities Disabled
Key Performance Indicator Health and Safety significant incident rate per 10,000 full time employees
150 140 147 130 120 126 R QU A L T E I T 110 Y I S G A E S R S Original 2005
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BT Social and Environmental report | Summary and highlights 8 Employees continued
People satisfaction During the 2004 financial year, 15.3% of our new recruits came from an ethnic minority We run a number of formal employee background, including 27.3% of new graduates, surveys. The most important is the annual while 32.8% of new recruits were women, Communications and Attitude Research for including 42.2% of new graduates. Employees (CARE) survey. It provides an opportunity for all our people to express their This means that we have achieved our target views on a range of issues. that by March 2004, at least 8% of our employees should be from an ethnic minority. During the 2004 financial year, every Attaining our target for the representation of BT employee in the UK was given the women employees is proving more difficult– the opportunity to complete a CARE survey during figures show that retention rather than the working day. Anonymity was guaranteed recruitment is the main barrier. and 80% of our people participated (up 2% on the previous year). These targets should not be taken to mean that BT is operating quotas, which are illegal A key indicator in the CARE survey is the People under UK law. Each appointment is made on Satisfaction Index, which indicates overall merit only. satisfaction with working for BT. There were a total of 14 discrimination-related The People Satisfaction Index for the 2004 litigation cases involving BT in the 2004 financial year was 71%, up from 67% in 2003 financial year. Four were withdrawn, and exceeding our target of 69%. none judged against BT, six settled and four During the 2005 financial year we will be judged in favour of BT. introducing a new Employee Engagement Index. Every discrimination litigation case is one too many. For this reason we carefully review our Diversity own cases and use real-life examples in our We seek to create an open, honest and diversity training workshops. unprejudiced workplace that encourages people to reach their full potential. Discrimination Litigation 50 We want to create and sustain a diverse Total cases
workforce where everyone’s contribution 43 Judged against BT is valued. 40 Judged in favour of BT Settled The tables show the percentage of our 30 30 Withdrawn people who are women, have declared themselves from an ethnic minority or have 20 18
declared a disability. These figures do not 17 15 14 include around 10,000 people who work in 14 10 11 8 our subsidiaries. Case 7 6 3 4 4 4 2 0 0 0 0 s 0 00/01 01/02 02/03 03/04
Senior All BT Financial year 2003 2004 2003 2004
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BT Social and Environmental report | Summary and highlights 9 Employees continued
Work-life balance Employee relations Because we want to provide a high-quality In the UK BT recognises two trade unions: the service to our customers, the working day for Communications Workers Union (CWU), which many BT employees extends beyond normal represents around 65,000 BT non-management hours. One of our great challenges as an grades, and Connect, which represents around employer is to reconcile good customer service 20,000 BT people, predominantly line managers with the provision of a healthy work-life balance and professionals. for our employees. We strive to get the balance We maintain a positive working relationship right and believe our record is good. with both unions at local and national levels. In Our work-life balance policies are in one the 2004 financial year, no industrial action was portfolio called Achieving the Balance. It covers taken. There were no cases of legal action flexible working, home-working, part-time against BT concerning anti-union practices. working, job sharing, maternity and paternity The number of Employment Tribunal cases leave, adoptive leave, parental leave, special involving BT in the 2004 financial year was leave and leave for carers. down to 50 from 57, with 15 withdrawn, 1 We have approximately 5,600 part-time judged against BT, 13 settled and 21 judged in employees and more than 7,900 homeworkers. favour of BT. Through the innovative use of communications technology, many other BT people are able to work flexibly without being formally Employment Tribunal cases recorded as homeworkers. 150 Total 136 We have a flexible working initiative called Judged against BT Freedom to Work, which enables our people, 120 Judged for BT
wherever operationally practicable, to 105 Settled develop their own attendance patterns. They Withdrawn 90 can achieve more balance through a mix of home-working, working long and short days, 62
and by accruing blocks of non-working time 60 57 50
for use during, for example, school holidays. 46 3 36 9 30 33 26 Case 21 21 15 15 13 2 8 2 1 1 s 0 00/01 01/02 02/03 03/04
Call centres We have completed a comprehensive two-year restructuring of our call centre operations. Our Next Generation Contact Centre programme has transformed our original 104
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BT Social and Environmental report | Summary and highlights 10 Employees continued
small business customers without their being Networks transferred from one call centre to the next. We use a number of employee networks to The overall net effect on BT and agency jobs has communicate with our people worldwide. been a reduction of 2,200 full-time equivalent The networks – promoted by senior posts – reducing the number of full-time management – are there to support and advise equivalent posts in BT’s call centre operations our employees by providing mentoring and to around 13,600. development programmes, information on There were no compulsory redundancies and we websites and at conferences. remain committed to finding alternative work for every affected person that wishes to remain Health and safety in BT. By the end of March 2004, more than One of our business principles is to care for 900 people had been redeployed to other roles the health and safety of each other, our in BT and over 1,000 had left BT voluntarily. In products and our operations. We have also addition around 1,900 employees have been made a specific commitment to promote a redeployed to the new, long-term sites. healthy lifestyle. Two of the new call centres are located in For this reason we have established our Bangalore and New Delhi in India. Significant Incident Rate as a non-financial The Delhi and Bangalore call centres employed key performance indicator and set the around 800 people by the end of the March accompanying strategic target of a 25% 2004, with capacity available to increase to reduction in incidents (from 2001 levels) by around 2,200. March 2005. However, it has been suggested in the media The Significant Incident Rate records incidences that there is an incompatibility between these of injuries, diseases and dangerous occurrences, developments and BT’s stance on Corporate and stands as a good measure of our success in Social Responsibility (CSR). promoting health and safety. To address these issues we commissioned We reached our target two years early and independent consultancy and think-tank at that point doubled the reduction to be SustainAbility to explore service sector achieved by the financial year 2005. We have offshoring through the lens of Corporate done the same for our target on reduction in Social Responsibility. sick absence due to workplace accidents (down 33% since 2001) and reduction in occupational Included in its report ‘Good Migrations?’ are: ill health cases (down 36% since 2001). • An examination of the global trend of We continue to focus on a number of major offshoring and evaluation of its implications health and safety risks: driving, fire and for CSR incidents on BT property, international travel • A study of the specific impacts of BT’s health, call centre health, injuries while working offshoring decisions, both in the UK on the network and work-related stress. and in India These priorities illustrate the scope of our • Strategic advice to companies interested in approach to health and safety: it is not just exploring offshoring and Corporate Social about avoiding accidents, we consider it very Responsibility. important to protect our employees’ physical and mental health too.
R QU A L SustainAbility concludes that, on balance, T E I T Y I S G A E S
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BT Social and Environmental report | Summary and highlights 11 Investors
Investors are increasingly interested in Our environmental programme, which includes the social and environmental dimension energy efficiency and fuel savings, has saved BT more than £600 million over ten years. of business performance and how it relates to the business strategy. • Put broadband at the heart of BT. Local and regional partnerships with social The key issue for investors is the business case inclusion objectives have been critical to the for sustainable development and Corporate roll-out of broadband to the most remote and Social Responsibility (CSR): how social, rural areas in the UK. environmental and ethical risks and opportunities are managed to preserve and • Transform our network for the 21st century. grow shareholder value. Climate change could lead to more extreme and Our business case for CSR demonstrates how unpredictable weather events. We need to build good CSR performance helps implement key a robust network that meets this new challenge. aspects of the BT strategy: Ratings • Keep a relentless focus on improving customer satisfaction. A number of specialist CSR ratings agencies provide rankings based on information about a CSR is critical to optimising customer company’s social, ethical and environmental satisfaction. For example, we estimate that policies and practices. BT’s CSR performance accounts for over 25% of the Image and Reputation driver of All are based on the premise that a company’s customer satisfaction. Further statistical analysis management of these aspects will have a shows that a 1% improvement in the public’s significant bearing on its ability to both preserve perception of our CSR activities means a and grow shareholder value over the long term. 0.1% increase in our retail customer satisfaction figures. Our main ratings are: Increasingly, we have to address social and • BT has been ranked as the world’s number environmental matters when bidding for new one telecommunications company in the contracts – nearly £900 million in the 2004 Dow Jones Sustainability Indexes for three financial year. years running • Motivate our people and live the values. • BT is top of the telecommunications sector in the Business in the Community Corporate Working conditions and our relationship with Responsibility Index (Business in the our employees is crucial to the success of our Community is an independent business-led business. A proactive approach to, for example, charity based in the UK) and ranked 11 in the flexible working, diversity, and learning and top 100 UK companies who took part in the development improves employee satisfaction 2004 Index. and helps improve customer satisfaction. • BT is included in the UK, European and World • Lead the world in network-based FTSE4Good Indices. information and communications technology (ICT) solutions. Long-term sustainability trends create new market opportunities. For example, the use of
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BT Social and Environmental report | Summary and highlights 12 Suppliers
Supply-chain human rights Key Performance Indicator Sourcing with Human Dignity (SWHD), our Ethical trading risk assessment questionnaires supply-chain initiative, seeks to ensure that the completed by 242 suppliers and 13 on-site working conditions in our supply chain are assessments undertaken consistent with international guidelines. Chief . among these are the UN’s Universal Declaration Strategic target of Human Rights (UNDHR) and the International Evidence that action has been conducted within Labour Organisation (ILO) conventions. 3 months on all contracts identified as high or medium risk Training It is crucial that our buyers have the awareness, knowledge and skills required to implement the Key Performance Indicator SWHD standards. Percentage of suppliers stating they have a good working relationship with BT is 94% A total of 176 BT buyers have attended half-day awareness training courses on Sourcing with . Human Dignity. This training remained a key focus during the 2004 financial year. We buy products and services, such as We launched a computer-based training (CBT) IT equipment, cables, software, design package to enable all BT buyers to undergo the and disposal services, from thousands of SWHD training. It is now mandatory for all suppliers worldwide. In the 2004 those who have not taken the half-day course. financial year, we spent over £8.2 billion At the end of the 2004 financial year, 270 on procurement. buyers had completed either the CBT or the half-day training session. At every stage of our dealings with We have also delivered a two-day course to our suppliers – from selection and consultation, procurement and quality professionals on how to recognition and payment – we are committed to conduct on-site assessments. At the end of to behave according to the principles of fair and the 2004 financial year, 21 BT people had been ethical trading. These are set out in our trained to conduct SWHD assessments. Purchasing Principles. Our approach to these issues, along with a 2004 risk assessments description of our supplier partnership, We undertake on-site assessments of supply- payment, relationship management, human chain working conditions in those areas rights, excellence awards and diversity activities identified as being at the highest risk of falling are described in the Suppliers section of our short of our SWHD standards. online Social and Environmental report. In the 2004 financial year, we conducted In the 2004 financial 13 on-site assessments in China, India, year, BT was the Sri Lanka, Turkey and the UK. Of these, overall winner of 9 were assessments of facilities not the UK Chartered previously assessed. Institute of Purchasing and Further details, including the results of
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BT Social and Environmental report | Summary and highlights 13 Community
Key Performance Indicator Education Amount provided to direct activities in BT’s Education programme is one of the support of society, and amount provided UK’s most significant corporate investments in support or in kind in the education sector. It uses a number of techniques and media to promote 20 Amount provided communications in schools. to direct activities One of the main strands of the programme 17.9 Amount in support is a touring roadshow, a drama-based 15 or in kind 15 campaign helping children to improve their communication skills. By the end of the 2004 12.4 financial year, the roadshow had made 9,500 10 11 school visits and over two million children had been involved in the BT Education programme. 8.2 5 We have taken a number of initiatives to help
mi 5.6 young people around the world benefit from ll ion communications technologies. This includes a £ 0 partnership in Delhi, India, with KITES, a local 2002 2003 2004 charity, and the Young Scientist Technology Exhibition in Ireland. Strategic Target Contribute a minimum of 1% of our UK pre-tax Charities and fundraising profits to activities in support of society, either We co-ordinate major national charitable through direct funding or support in kind events, including telethons for Children in Need and Comic Relief. BT manages the entire We commit a minimum of 0.5% of our telephone network for these events, as well UK pre-tax profits to direct activities in as providing call centres to take donations over the phone. support of society. This was £10 million in 1987; it peaked at £16 million in We are working with ChildLine, the UK children’s charity, on a major campaign to help 2001; and was £5.6 million (including ensure that all young people can be heard. We £1.2 million to charities) in the 2004 are committed to raise funds to help ChildLine financial year. answer every one of the 4,000 children who call them every day. BT operations provided a further £12.4 million in funding and support in kind in the financial year 2004. We invest in communities to improve the quality of life and sense of well-being of the people who live there. The central theme of our community programmes is improved communications.
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BT Social and Environmental report | Summary and highlights 14 Community continued
Employee involvement We encourage our people to volunteer in the community because of the mutual benefits this brings. Employees learn new skills that help them at work and the community benefits from their expertise. There are many ways that our people can get involved: support a local school’s activities as a BT Volunteer, answer telephones in a telethon, or donate money regularly via BT’s Give As You Earn programme. BT people personally gave £2 million directly to charities during the 2004 financial year through Give As You Earn, to which BT added a direct contribution of £1 million.
Arts and heritage We are an enthusiastic promoter and supporter of the arts. The Tate Modern is the UK’s leading modern art gallery and we sponsor Tate Online, a virtual gallery and the UK’s most visited arts website.
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BT Social and Environmental report | Summary and highlights 15 Business principles
Key Performance Indicator It is crucially important that our Statement of Awareness of the Statement of Business Business Practice is implemented throughout Practice, The Way We Work, among BT’s the business and that BT employees feel able to UK employees report non-compliance. We have a confidential 24-hour helpline for 100 people seeking help and confidential advice. This is available via phone and email and is 80 dealt with by the Head of Group Business 83 84 Practice. The helpline was relaunched during 71 76 60 68 the 2004 financial year and a letter promoting the helpline was sent to every BT employee. % 40 Corporate Social Responsibility 20 governance framework
0 A Corporate Social Responsibility (CSR) 20002001 2002 2003 2004 governance framework is in place to manage CSR issues effectively and supervise the CSR Statement of Business Practice relationship between BT and our individual lines of business. We are committed to follow world-class standards of business integrity everywhere Social, ethical and environmental matters have we operate. been incorporated into our Director’s induction programme, to support the integration of CSR Our Statement of Business Practice, The Way matters into the day-to-day management of We Work, defines the business principles that the business. apply worldwide to all employees, agents, contractors and others when representing BT. An internal committee known as the Corporate Social Responsibility Steering Group (CSRSG) It sets out specific aspirations and commitments oversees the implementation of all social and that apply in our relations with our customers, environmental programmes across BT. Chaired employees, shareholders, partners, suppliers by Alison Ritchie – a member of BT’s top-level and in the communities where we operate. Operating Committee – the CSRSG makes Because this Statement is critical to the regular reports to the Board. promotion of integrity and high standards of business practice across BT, we have made awareness of the Statement a key priority. During 2004 we raised the number of our employees aware of the Statement from 83% to 84%, short of our 86% target. Particular attention was paid in the 2004 financial year to further implement the Business Principles in BT Global Services, which manages BT’s international operations. Our priority for the 2005 financial year is to R QU A L T E I T Y I S G A continue ensuring our Statement of Business E S
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BT Social and Environmental report | Summary and highlights 16 Business principles continued
CSR health checks Political involvement CSR health checks are used to ensure that CSR BT has a strict policy of not giving cash to any is embedded into BT’s commercial operations. political party. But we participate in public policy issues and regularly make contact with Health checks examine how a cross-section of political parties, politicians and civil servants. key CSR impacts may be affected by a particular commercial programme, and how CSR can help We undertake these activities directly and achieve the programme’s commercial through many intermediary organisations objectives. The checks are not audits but such as: structured, informal conversations to identify • Our European trade association (ETNO) CSR risks and opportunities. • The Confederation of British Industry (CBI) Since the 2002 financial year, CSR health checks have covered broadband, call • Intellect, the trade body for UK-based centres, new technologies, research and information and communication technologies development, people policies and plans for and electronics industry. the 21st-century network. Our responses to important regulatory Our priority for the 2005 financial year is to consultation documents are posted on our undertake CSR health checks on our regulatory affairs website. international operations. We are members of organisations that attempt to influence matters connected with Corporate Risk Social Responsibility and sustainable We currently identify no social, environmental or development. These include: ethical risks that would have a material impact • Forum for the Future on our business. • CSR Europe In the 2004 financial year, we developed a separate CSR risk register that sets out our • Employers’ Forum on Disability most significant social, environmental and • Green Alliance. ethical risks (supply-chain working conditions, diversity, offshoring, business integrity, health We are keen for government to change and safety, climate change). Although legal and fiscal frameworks to enable important to our stakeholders, none is business to survive and flourish from sustainable considered material to BT’s future prospects. business practices. We believe there is an appropriate role for both regulation and economic instruments.
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BT Social and Environmental report | Summary and highlights 17 Environment
Key Performance Indicator Telecommunications is perceived as Global warming CO2 emissions an environmentally friendly technology. But as one of the UK’s largest 2.0 companies – and biggest energy consumers – we have an inevitable 1.5 2010 CO2 emissions cap 1.61 at 1.21 million tonnes impact on the environment. Since the end of 1999 our environmental mill 1.0 1.26 management system has been certified ion t 1.03 0.96 0.93 to ISO 14001, the international onnes 0.5 management systems standard. CO
2 0.0 In the 2004 financial year, we were able, for 19962001 2002 2003 2004 the first time, to include international data in our performance figures. Baseline: 1996 – 1.61 million tonnes We are establishing an environmental management system (EMS) that covers all Key Performance Indicator BT Global Services’ activities in every country Waste recycled and waste to landfill of operation. As a first step we are running a pilot project in Ireland to produce an EMS 120000 that is transferable to all countries, cultures 117,1 and activities. 100000 103,8 96 90,9
89,8 Once our international EMS is in place, we 80000 53 79,677 will seek to obtain the ISO 14001 certification 00 78 where appropriate, followed by registration 27,80 27,62 24,09
60000 23,58 21,73 with the EU Eco-Management and Audit 40000 Scheme (EMAS). 9 6 9 2 9 tonnes 20000 Fuel and energy 0 We are one of the largest consumers of 20002001 2002 2003 2004 commercial and industrial electricity in the UK and the growth of broadband is likely to Waste recycled Waste to landfill increase our electricity use. However, during 2005 target 29,000 tonnes recycled the 2004 financial year, investment in our energy conservation programme enabled us to reduce our electricity consumption by 1.5%, from 2,106GWh to 2,074GWh. We are committed to meet and, where possible exceed, the UK Government’s sustainability targets to buy renewable energy. We work with our suppliers to increase capacity and we are investigating housing our own renewable generation systems, such as wind turbines, R QU A L T E I T Y I S G A E S at suitable sites. R S
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BT Social and Environmental report | Summary and highlights 18 Environment continued
Electricity use and source Emissions to air 2500 Total GWh GWH CHP We monitor the emissions to air of a number GWh brown GWh renewable of substances that impact adversely on the 2,106 2,074
2000 2,029 environment, through their contribution to climate change or ozone depletion. 1,594 1500 1,59 By the end of the 2004 financial year, our
4 energy and transport programmes had saved 2 1,10 almost 1.2 million tonnes of CO annually. 1000
0 This includes: 836 • 62% reduction in CO2 emissions since 1991 500 484
432 because of improved energy efficiency GWh 93 48 28 0 • 38% reduction in CO2 emissions since 1992 because of improvements to transport. 2002 2003 2004 Our emissions savings already exceed the UK We created a partnership with the UK’s Carbon Government’s target to reduce greenhouse Trust to investigate the suitability of using BT gases emissions by 20% by 2010 (from a 1990 buildings to house wind turbines for trials in the baseline). This goes beyond the Kyoto Protocol 2005 financial year. target of a 12.5% reduction by 2010. We support turbine specialist, Wind Dam, During the 2004 financial year, our ozone in its development and deployment of depleting emissions (measured in CFC-11 rooftop vertical wind turbines at two sites equivalents) increased by 11%. in Cornwall, UK. We are also considering the This is because we are now able to report the use of three large wind turbines to power refrigerants used in our office buildings as well one of our major satellite communications as in our network. sites in the UK. We are investigating the feasibility of new energy systems. These include CFC-11 Equivalent emissions systems that combine the use of solar 500 energy and wind, and fuels made from 400 plants (biofuels) to replace the diesel 419 used in our emergency generators. 300 322 333 We have several thousand oil storage tanks, many of which are below ground. 200 221 The oil is used for heating and to supply 200 standby diesel generators to power our 100 network if the electricity supply fails. Tank kg testing, repair and decommissioning of 0 fuel tanks are vital components of BT’s 20002001 2002 2003 2004 programme to reduce the risk of pollution to ground water and land from the storage of diesel fuel.
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BT Social and Environmental report | Summary and highlights 19 Environment continued
Transport We run a fleet of 32,663 vehicles, managed under contract by our subsidiary, BT Fleet. In the 2004 financial year, we achieved our target to use smaller vans and to remove 832 vans from our commercial fleet. This means we reduced both our commercial fleet – still one of the largest in the UK – and our fuel consumption by 4%. BT’s company car policy supports the key objectives of the UK Government’s Waste emissions-based company car taxation initiative. This includes: We produced 107,303 tonnes of waste in the 2004 financial year. Of this, we recycled 27,626 • Increased allowance to employees who choose tonnes - 26%, up from 24% the previous year - to opt out of company car ownership and sent 79,677 tonnes to landfill, down by • Improved tax efficiencies for employees who 10,201 tonnes from the previous year. opt for lower-emission cars We had mixed success in meeting our waste • Improved advice and communications to improvement targets. Although we only company car drivers, encouraging users to managed to increase the amount of items we choose lower-emissions cars. recycled by 2% – below our 10% target – we managed to reduce the amount of waste going New tax rules have removed the incentive to to landfill by 11%. travel more and we anticipate our overall company car mileage will continue to reduce. Since April 2001, when our new car policy was introduced, our company car fleet has reduced by 25% (nearly 4,000 vehicles), with a reduction of over 19 million kilometres (8.5%) for company cars and private vehicles on BT business.
Transport Transport Number of vehicles in the commercial fleet Commercial fleet fuel consumption (UK only) 40000 80 38,21 37,97 35000 37,50 70 32,66 66.40 33,97 63.17 30000 60 62.76 8 7 9 56.12 25000 50 53.85 3 9
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BT Social and Environmental report | Summary and highlights 20 Environment continued
Product stewardship BT is a major buyer and user of electronic equipment and subject to both new and pending legislation designed to encourage sustainability in industry. We strongly support this legislation and go beyond the minimum efforts required for compliance. Key legislation includes EU Directives that became European Law on Waste Electrical and Electronic Equipment (WEEE) and the Restriction of the use of certain Hazardous Substances in electrical and electronic equipment (RoHS). Both aim to minimise the use of hazardous materials in electrical and electronic equipment, to minimise the amount of hazardous waste going to landfill, and to encourage reuse of materials. We require suppliers to provide information about compliance with WEEE. As part of our compliance with RoHS, BT is researching a number of alternative materials – such as lead-free solder – found in electrical and electronic equipment.
Procurement and the environment As one of the UK’s largest purchasers, we have an environmental influence that extends well beyond that of our own staff and workplaces. We seek to influence our suppliers and contractors through our environmental purchasing policy. We have specific objectives to ensure appropriate supplier environmental data is collected, and to encourage improvement of poor performers in significant risk areas. We use two supplier questionnaires to enable us to identify risk and take appropriate action if needed.
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BT Social and Environmental report | Summary and highlights 21
Economics
BT is one of the largest Indirect impacts telecommunications companies in Indirect economic impacts arise from the the world and a significant economic income and employment created in businesses force in its own right. In our Social and that supply goods and services to BT. Environmental report we discuss some For example, the expenditure of BT in the UK of BT’s direct and indirect economic creates over £2.6 billion of income in the UK impacts, and highlight the links to their economy that in turn supports the employment social and environmental consequences. of almost 135,600 people. Further indirect impact is created when incomes Direct impacts created directly and indirectly by BT are spent in the economy – estimated by DTZ Pieda Our direct economic impacts can be measured Consulting to be £3.4 billion of income and with traditional financial indicators, such as 173,780 employees. turnover, spend with suppliers, dividends, When added to BT direct impacts, these employee costs and tax paid. activities generate income of £8.9 billion These measures can be used to demonstrate and support the employment of 431,753 people how the economic status of each stakeholder in the UK – almost 1.7% of all employment group changes as a result of BT’s activities. in the UK. The figures in the economics section of our Further discussion of these and other website measure the financial flows between BT significant economic issues in the and our key stakeholders – customers, communications sector, such as globalisation suppliers, employees and shareholders – as well and the development of the knowledge as with governments. economy, are in the Economics section of our online Social and Environmental report.
Total Income and Employment Impact of BT in the UK
Income (£ billion) Employment Direct 2.974 122,423 Indirect 2.616 135,550 Induced 3.354 173,780 Total 8.944 431,753
Source: DTZ Pieda Consulting, February 2004
Notes • These figures take account of ‘leakages’ of expenditure from the local economy in the form of non-UK purchases, savings and national taxes.
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BT Social and Environmental report | Summary and highlights 22 Human rights
We base all our relevant policies covering this situation. and procedures on the principles set We also have a detailed Acceptable Use Policy out in the United Nations Universal that shows how we protect the privacy of Declaration of Human Rights, customers who use our online services. which sets “a common standard Privacy is important to all our customers – not of achievement for all peoples and just those online. BT complies with and is all nations”. registered under the Data Protection Act in the UK, and we take all reasonable care to prevent We are committed to protect and enhance any unauthorised access to personal data. the human dignity of every BT employee and everyone who has dealings with BT. We are Freedom of expression a signatory to the UN’s Global Compact, an A key challenge is to balance the right to initiative that strives to motivate business and freedom of expression with the need to protect industry around nine principles covering the children online. environment, labour and human rights. See more in the Global Compact index section BT is a board member of the Internet of the online Social and Environmental report. Content Rating Association (ICRA), which aims to “protect children from potentially Supply and use chain harmful material; and to protect free speech on the internet”. We monitor the working conditions under which Our own programme, BT Safe Surf, gives the products and services we purchase are detailed information for parents and provides produced. We also consider their effects on user-friendly training for children. human rights after they’ve been sold. The main concern here is the misuse of our products and BT acts on complaints about content hosted services, for example using the internet for on our servers. We sit on the funding council of crime. We have published two ‘Hot Topics’ on the UK Internet Watch Foundation, which our Better World website exploring the notifies us of illegal content stored on our problems of misuse of the internet. servers and webspace. We have contributed to the work of the Privacy Independent Committee for the Supervision of Privacy is not a new issue but developments in Standards of Telephone Information (ICSTIS). information and communications technology (ICT) have given rise to new dilemmas. One of these is to balance our desire to give a tailored customer service with protecting customer privacy. For example, BT customers in the UK who wish to use our website to manage their account, check their bill and buy various products or services, have to register first – which involves the disclosure of certain personal information. We have a specific privacy policy
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BT Social and Environmental report | Summary and highlights 23 Sustainability
The concept of sustainable ICT sustainability impacts development has increasingly come to Information and communications technology represent a new kind of world – where (ICT) brings many potential social, economic economic growth delivers a more just and environmental benefits to society. and inclusive society, at the same time ICT can support social and economic as preserving the natural environment development by transforming communication and the world’s non-renewable and access to information, leading to resources for future generations. powerful social and economic networks needed to bring sustainable development to emerging economies. We use the term Corporate Social Responsibility (CSR) more often than sustainable development The use of BT’s own products and services and consider CSR to be the voluntary actions a enables us to reduce our consumption of finite company takes to contribute to the wider materials and to improve the work-life balance societal goal of sustainable development. of our people. No individual country, business or other Conferencing by video, phone or the web is not organisation can become sustainable on its only more time and cost-efficient than meeting own. But it can become more sustainable than in person – it improves the quality of life for it was, and it can make a valuable contribution frequent travellers. It’s also a major benefit for to make the world more sustainable. BT’s 7,900 home-based workers and a growing number of teleworkers – those who occasionally CSR requires a co-ordinated approach to work from home. managing social, economic and environmental issues across the company. However, In a survey carried out within BT during the sustainability is not just about having the right 2003 financial year, 66% stated that systems, checks and balances in place. We conferencing was essential to their job and over aspire to lead by example not only in addressing 80% that it had improved their performance. our own impacts, but also by raising awareness The survey also showed clear environmental and by working with others through benefits, with each call avoiding travel of at partnerships for action. least 91 miles a year for car users and 94 miles For example, we chair the Global for train users. At a conservative estimate, each e-Sustainability Initiative and were closely conference call saves a minimum 22.05 kg of involved in its sector report for the 2002 World CO2. Taken together, all our conference calls Summit on Sustainable Development and save at least 20,060 tonnes of CO2 a year. submissions to the World Summit on the Another survey into teleworking illustrated the Information Society. These contain a number social benefits that communications technology of helpful recommendations to information and can provide, with the majority of respondents communications technology (ICT) companies reporting a better life through teleworking than and governments. if they commuted to an office. Many reported We also believe that ICT can act as an enabling an increased contribution to domestic and technology for sustainable development – community activities, while a small number such as cutting energy and resource use believed that they would be unable to do their through transport substitution and de- present job if unable to telework. materialising physical products – thereby de- Additionally, the increased use of electronic R QU A L T E I T S Y coupling economic growth from resource use. I G A E S R S transactions has clear environmental benefits,
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BT Social and Environmental report | Summary and highlights 24 Digital inclusion
Access to information and • Content – encourage communication and its communication technologies use for social and economic benefit. While the can improve people’s lives and amount of information on the internet is vast, there is still a great need for content that open doors to education, jobs, brings benefits to communities, small employment, entertainment and businesses and individuals. This is why we personal contacts with friends and work with others to promote new content. family. But many people do not yet • Capability – help groups and individuals use have the opportunity or the necessary technology. We have launched a digital skills to use the technology. inclusion campaign to support the UK Government’s aim to give all citizens online We want everyone to participate in the digital access by 2005 and demonstrate how revolution. In our online Social and communications can help improve society. Environmental report we discuss how we A key element is Everybodyonline, run by promote digital inclusion, in three ways: Citizens Online, a UK-based charity promoting the use of information and communications • Connectivity – provide greater access to technology (ICT) for all members of the communications technology. Broadband plays community, and supported by BT. a central role in improving access to information on the internet. By 31 March 2004, we had upgraded more than 1,100 exchanges, making broadband available to more than 85% of UK homes and businesses. We have set out a road map that will see broadband available to exchanges serving over 99% of UK homes and businesses by summer 2005.
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BT Social and Environmental report | Summary and highlights 25
Data and targets Hot Topics
Targets are essential if we are to Our online Hot Topics, written by guest improve our social and environmental authors, cover our more controversial performance and our contribution to social impacts. sustainable development. Abuse of the Internet Our online Social and Environmental Solitaire Townsend of independent consultancy report includes: Futerra considers the issue of abuse of the internet. • BT’s 11 non-financial key performance indicators – an overview of our social and Good Migrations? environmental performance Judy Kuszewski and Kavita Prakash-Mani of • All of our social and environmental independent consultancy SustainAbility consider performance data the relationship between offshoring, Corporate Social Responsibility and the geography of jobs. • Social and environmental performance targets. Virtual Vice Our 2003 Social and Environment report James Wilsdon and Paul Miller of the UK think- included 47 targets. Of these, 33 were tank Demos examine BT’s approach to internet completed, 4 remain on target, 1 is delayed, activities of concern such as hacking, copyright 8 have failed and 1 has been abandoned. infringement and spam.
We have introduced 39 new targets this year Modern Communications and the and progress on these, as well as our 5 ongoing Quality of Life targets, will be tracked on a quarterly basis. Written and researched by the Future Further details are available in the Data and Foundation, this examines the impact of modern target section of our online Social and communications technology on our daily lives. Environmental report. E-business and the Environment The UK Centre for Environment and Economic Development analyses the direct and indirect environmental impacts of e-business.
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BT Social and Environmental report | Summary and highlights 26 Feedback
Your views on our Social and Ethical and environmental supply chain Environmental performance are management email Liz Emerson, ethical trading and important because they help us environment manager, at [email protected] improve. Contact us with your questions and comments and we will reply within Fundraising and charities five days of receiving your message. email Beth Courtier, head of charities, at [email protected] or visit the BT/childline “I am Listening” campaign website at For feedback relating to: www.biglisten.co.uk Corporate Social Responsibility strategy, reporting and stakeholder dialogue Shareholder enquiries relating to BT’s social email Liz Cohen, sustainability advisor, at and environmental impacts [email protected] email Susan Morgan, sustainability manager, at [email protected] Digital inclusion If you have a question or comment that doesn’t email [email protected] match any of these, please email [email protected]. Education programme email Helena Murray, project co-ordinator, at [email protected] or visit the programme’s website at www.bt.com/education.org/
Employee volunteering programme, BT Volunteers email Ruby Trippet, Volunteering programme, at [email protected] or visit the BT Volunteers website at http://www.btvolunteers.org/
Employment equality and diversity email Pam Farmer, HR manager, Equality and Diversity, at [email protected]
Environment programme email Simon Paul, environment manager, at [email protected]
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BT Social and Environmental report | Summary and highlights 27
Better World website
www.bt.com/aboutbt
Better World website www.bt.com/betterworld
BT Social and Environmental report: externally verified content and Hot Topics Latest news Occasional papers original thinking
Studies and Better business reports game
Our Social and Environmental report The report is complemented by is part of our regularly updated Better other content on our Better World World website. web site – Latest news, our Occasional papers, Studies and reports, and our The report covers all externally Better business game. verified content (as indicated by a symbol at the bottom of the page) and our independently written Hot Topics.
Offices worldwide © British Telecommunications plc 2004 Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England No. 1800000
Design by Red Letter Design Business principles
BT Social and Environmental report Business principles
We are committed to follow world-class Statement of Business Practice During the 2004 financial year we ran a number • A senior BT manager was sacked for ignoring of pilot training sessions for senior managers to internal financial procedures, and new standards of business integrity Our Statement of Business Practice, The Way promote awareness and understanding of our processes implemented. everywhere we operate. We Work, defines BT’s business principles that Business Principles. This training will be further apply worldwide, to all employees, agents, Inappropriate use of the internet: rolled out during the 2005 financial year, with contractors and others when representing BT. Our Statement of Business Practice, effort focused on those areas of the business • Over the past two years more than 200 BT The Way We Work, defines BT’s Here we provide details on the level of where we believe the risk of non-compliance is employees have been dismissed or resigned business principles that apply awareness of the Statement within BT and the at its greatest. having been identified accessing extent of implementation across the BT Group. inappropriate, highly offensive or worldwide, to all employees, agents, Other elements of the communications plan pornographic sites. contractors and others when Use the Business practice site Index of our include a training website and training videos representing BT. It sets out specific online report to assess our performance against for 2,000 managers. Senior managers are • A small number of BT people have accessed aspirations and commitments that the specific principles, aspirations and requested to write to their teams to explain inappropriate sites leading to police commitments of the Statement. the importance of complying with our investigation and jail sentences of up to guide our relations with our customers, Business Principles. three years. employees, shareholders, partners, Awareness In collaboration with the UK's Institute of suppliers and local communities. Nuisance calls. In the 2004 financial year, a BT survey found Business Ethics, we run an internal Business • A BT person was dismissed for making over that awareness of the Statement of Business Practice Excellence award. Individuals are BT’s overall approach to corporate governance 100 nuisance calls, and another was Practice among employees in the UK stood at nominated by colleagues for demonstrating is explained in our Annual Report and Accounts. sentenced for making obscene calls. excellent business practice behaviour against Later in this section we describe our corporate 84%, up from 83% in 2003. one or more of BT’s 12 business principles. Disclosure of these examples is intended to social responsibility governance framework in We have set a target that, by March 2005, demonstrate the action that backs up our more detail. the indicators on the awareness of BT’s Implementation Statement of Business Practice. They reinforce Statement of Business Practice will be During the 2004 financial year, we established a the strong message to our own employees that extended to incorporate BT’s wholly owned It is crucially important that our Statement of corporate social responsibility risk register that such abuse will not be tolerated. Business Practice is implemented throughout sets out our most significant social, ethical and international activities. the business and that BT employees feel able to This tough action is recognised in benchmarking environmental risks. For more details, see the report non-compliance. exercises that examine ethical business Risk section of this document. Awareness (UK Only) Target Actual practices. In the 2004 financial year, Integrity A confidential 24-hour helpline to the Head of We are publishing for the first time a report March 2004 86% 84% Works – a consultancy that helps companies Group Business Practice is available via phone describing our approach to regulatory design and implement their business principles – March 2003 - 83% and email for people seeking help and compliance during the 2004 financial year, undertook an Ethical Expression benchmark confidential advice. During the 2004 financial which can be downloaded as a PDF in our online March 2002 75% 76% study of the UK’s top 100 listed companies. year a letter promoting the helpline was sent to Social and Environmental report. It sought to establish the relationship between March 2001 70% 71% every BT employee. BT has a strict policy of not giving cash a company’s stated ethical standards and best September 2000 65% 68% We take our Statement of Business Practice very contributions to any political party. practice, with their effective implementation. seriously and instigate strong action against But we do participate in debates on public BT came joint first (in the UK), alongside Shell Over the past five years a comprehensive anyone abusing our business principles. During policy (see Public Policy below) and regularly and BP. employee communications plan has helped the 2004 financial year, 198 employees were make contact with political parties, politicians In the 2004 financial year, a survey found that improve awareness. dismissed or resigned for unethical behaviour, and civil servants. 93% of our UK employees were aware of including fraud, conflict of interest and internet A printed copy of The Way We Work has been specific ethical risks they faced (see chart). All BT people are asked to respect a set of sent to every employee and is also available on abuse. The following examples are illustrative: specific values that underpin everything we do the BT intranet. The Statement is available in Dishonest and corrupt behaviour by BT staff: and the vision of the world we share. These are eight languages – Chinese (Mandarin), English, Awareness of ethical risks BT in the UK set out at the end of this document. • A group of six people, led by a BT person, French, German, Italian, Japanese, Korean and March 2004 93% Spanish. It includes a question & answer guide used the BT network to make free calls all
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BT Social and Environmental report | Business principles 1 Business principles continued
Lines of business Corporate Social Responsibility (CSR) BT Group plc Board Community Support The Statement of Business Practice is a governance framework Committee (CSC) ‘reserved power’ of the BT Group Board, and all At least once a year the BT Board discusses our BT’s lines of business are mandated to comply Corporate Social Responsibility (CSR) strategy. Management Council with it. The Board is kept informed of any new Implementing the Principles is the responsibility developments or changing expectations that of each line of business – all have a designated may affect its duties. This includes an Corporate Social Responsibility Steering Group (CSRSG) senior manager to do this. An operational identification of BT’s main CSR risks and working group meets once a quarter to opportunities, along with key performance maximise the effectiveness of implementation. indicators and strategic objectives. Particular attention was paid in the 2004 Social, ethical and environmental matters are Environmental Policy Social Policy Unit included in the Directors’ induction programme, Implementation Committee financial year to further implement the Business (EPIC). Delivers: Principles in BT Global Services, which manages to support the integration of CSR into daily Delivers: CSR Reporting BT’s international operations. Andy Green, management. Stakeholder dialogue Head of BT Global Services, wrote a letter to all Environmental Management A CSR governance framework helps us System Risk & Opportunity 5,500 managers, highlighting the Statement of manage specific environmental and social identification Business Practice and enclosing a CD-ROM of issues. A number of bodies supervise the CSR The Way We Work in five European languages. relationships between the BT Group and Our priority for the 2005 financial year is to individual lines of business. These are: Across the business Across the business BT GROUP plc continue ensuring our Statement of Business • Management Council Practice is effectively implemented by each line • Corporate Social Responsibility Steering O
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Examples of initiatives considered by the Ben Verwaayen, BT’s CEO, takes overall The purpose of the Panel is to encourage These are the most significant: Committee during the 2004 financial year are: responsibility for BT’s environmental innovation and leadership on sustainable performance. development and corporate social responsibility CSR Risk More details • A BT CSR risk register in BT. It meets four times a year and provides • Call centres in India Supply chain Human rights Social Policy Unit independent guidance and expert advice. • CSR in Human Resources working conditions in the supply chain • Product stewardship The BT Social Policy Unit is responsible for the Its responsibility covers key areas of CSR Climate change Environment • CSR in Board decision-making. overall co-ordination and maintenance of the BT strategy and performance, including policy, social policy strategy and environmental performance measures, targets, future Diversity Diversity and inclusivity CSR health checks management system. One of the Unit’s duties is objectives, governance, stakeholder Good Migrations? ‘Hot topics’ to promote awareness of BT’s social and relationships and external communications. CSR health checks are used to ensure that CSR and Call centres environmental policies among employees. is embedded in BT’s commercial operations. The panel provides an annual independent Breach of integrity Business principles The Unit is made up of professional CSR experts comment for inclusion on our website. See the Health checks examine how key CSR impacts who investigate long-term social trends, identify Leadership panel statement in the Assurance Health and safety Health and safety (such as integrity, environment or digital potential issues that might affect the business section of our online report. inclusion) may be affected by a particular There is a person in charge of dealing with each and support BT’s commercial activities. commercial programme, and how CSR can risk – all have a mitigation strategy in place. Risk help achieve the commercial objectives. The Unit provides support to the CSR Steering None of these risks has been identified as Group, the Community Support Committee and BT is affected by a number of non-financial The checks are undertaken with commercial material to BT’s future prospects. the Leadership Panel. factors, not all of which are wholly within our programme directors from BT’s lines of control. These are described in the BT Annual business. They are not audits but structured, Regulatory compliance Community Support Committee Report and Accounts. informal conversations to identify CSR risks It is our policy to be fully compliant with the and opportunities. This Board Committee oversees social The BT Board is responsible for BT Group’s regulatory framework in which we operate. investments and establishes the strategy for systems of internal control and risk Since the 2002 financial year, CSR health maximising our contribution to society. The management, and for reviewing the During the 2004 financial year, we reviewed our checks have covered broadband, call Committee is made up of representatives from effectiveness of those systems. compliance activities. This was because we want centres, new technologies, research and BT businesses and external non-executives who to ensure that we meet the obligations imposed development, people policies and plans The processes for identifying, evaluating and have a reputation for excellence in this field. by the UK’s Communications and Competition for the 21st century network. managing the significant risks faced by the BT Acts, while competing fairly and vigorously See more in the Community section of our Group are described in the Internal control and Our priority for the 2005 financial year is to within the rules. online Social and Environmental report. risk management section of the Annual Report undertake CSR health checks on our and Accounts. Our main objectives are to: international operations. Leadership Panel • Maintain good standards of compliance CSR risks Environmental Policy Implementation The Leadership Panel is an external advisory • Engage positively with the UK regulator, the Committee group of experts renowned for excelling in their The Board takes account of significant social, Office of Communications ( Ofcom) field. The Panel has six members: environmental and ethical matters that relate to The Environmental Policy Implementation BT’s business. • Engage positively with our industry sector. Committee (EPIC) – a sub-committee of the CSR • Jonathon Porritt, Chair of the Panel and Our Regulatory compliance governance Steering Group – meets monthly to ensure BT’s Director of Forum for the Future, a UK In the 2004 financial year we identified no framework includes: environmental policy is implemented effectively. sustainable development think-tank social, environmental or ethical risks that would have a material impact on our business. • A Compliance Champion (Ian Livingston, BT’s The membership of EPIC consists of BT’s • Mark Goyder, Director, Centre for Tomorrow’s Finance Director) environmental aspect group owners – senior Company, a UK think-tank. In the same period, we developed a separate CSR risk register that sets out our operational managers from around the • Rob Lake, Head of SRI Engagement • A Regulatory Compliance Steering Group that most significant social, environmental and business whose responsibilities have and Corporate Governance, Henderson meets quarterly environmental implications. ethical risks. Global Investors • A Compliance Control Board that meets
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• Annual reports to the BT Board and the BT body for UK-based information and Vision and values Inspiring: We create new possibilities communication technologies and Board Audit Committee by the Director, • We are determined and passionate about electronics industries. Internal Audit and Regulatory Compliance. Vision delivering the very best for our customers. We believe these activities are a legitimate The data published by Oftel/Ofcom shows that: • We come to work to make a difference. part of normal relationships between business Connecting your world. Completely. • Over the last two years, under half the and politics. Our purpose is to connect with our customers • We set high goals and always give 100% of investigations completed by Oftel/Ofcom were wherever they are irrespective of distance, time our energy. concerned with BT Consultation or complexity. Our role goes beyond simply Heart: We believe in what we do • Of the investigations into BT, 62% concerned Our responses to important regulatory providing a connection between people: we alleged breaches of regulation, and 38% • We create and deliver inspirational solutions consultation documents are posted on our enable business partnerships to develop and concerned disputes for our customers. regulatory affairs website at flourish, we bring family and friends together. • Of the investigations into alleged breaches of www.btcom/regulate/otherresp/index.htm. Communication technologies have an enormous • We have the ambition and confidence to do regulation, 85% resulted in no findings impact on our customers' lives and on society in things in new ways. Here you can find our responses to CSR general. Because of this, we have an important against BT • We are innovative, creative, and specific consultations: responsibility to think forward, to develop and • Of the investigations into disputes, outward-looking. • Proposals for an Operating and promote access to telecommunications around 75% resulted in no findings against BT Financial Review the world Our 2004 Annual Report on Regulatory • EU Green Paper on Corporate Compliance provides a complete description of Values Social Responsibility our regulatory compliance and performance, BT's activities are underpinned by a set of and can be downloaded as a PDF from our • UK Government’s consultation on sustainable values that all BT people are asked to respect: online Social and Environmental report. development, including our position on environmental taxation. Trustworthy: We do what we say we will Public policy • We build open, honest and realistic Public policy and sustainable development BT has a strict policy of not giving cash relationships with customers and with contributions to any political party. We are members of a number of organisations each other. that attempt to influence public policy on But we engage with political parties, politicians • We are reliable and act with integrity. corporate social responsibility and sustainable and civil servants on a non-partisan basis to development matters. They include: • We do whatever it takes to deliver. make them aware of key arguments, and trends Helpful: We work as one team in technology and industry. • Employers Forum on Disability (www.employers-forum.co.uk) We make complex things simpler for We put forward our views on matters that affect • customers and for each other. our business interests and we make sure that • CSR Europe (www.csreurope.org) those in government are fully briefed on issues • Forum for the Future • We get straight to the point. affecting BT’s activities. (www.forumforthefuture.org.uk) • We use our common sense and judgement. We interact regularly with the • Green Alliance (www.green-alliance.org.uk). Straightforward: We make things clear European Commission and national and international regulators. There are two ways for government to • We pull together across BT to put the stimulate changes in behavioural patterns that customer first. Trade associations will lead society towards more sustainable lifestyles: regulation and economic instruments. • We support each other, without waiting to We communicate with government directly and We believe there is a role for the reasonable be asked. through trade associations, which include: use of both. • We help others succeed and celebrate • European Telecommunications Network their success.
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BT Social and Environmental report Community
BT is committed to making a difference people’s lives and open doors to education, jobs 1.5 million children have been counselled by Fundraising and entertainment. For more information, see ChildLine since 1986. in society. We invest in communities to BT is able to co-ordinate major national the Digital inclusion section of our online report. improve the quality of life and sense of We also give in-kind support to ChildLine, such charitable events, including telethons for UK as strategic and technical advice. well-being of the people who live there. Charities and fundraising charities. BT manages the entire telephone The central theme of our community BT’s support has included the donation of network for these events, as well as providing Surveys of our stakeholders suggest that we premises for several years, large-scale call centres to take donations over the phone. activities is improved communications. should support the most needy in society. promotions and staff fundraising initiatives, and Many fundraising programmes are initiated and organised by employees themselves with local As a member of the Per Cent Club, we are The use of telephone helplines, websites and sponsoring the annual BT ChildLine Awards for charities as the main beneficiaries. committed to give a minimum of 0.5% of our national telethons shows how communications Services to Children. technology can help in charity fundraising. UK pre-tax profits (before exceptional items) to ChildLine was also the beneficiary of the BT We are involved in international appeals through direct activities in support of society. Our Our guide, Bidding for Funds and Resources, Christmas Concert in 2002, and a joint our support for the Disasters Emergency provision was £10 million in 1987; peaked at gives charities information on how to secure beneficiary in 2003. Committee, an organisation that supports UK £16 million in 2001; and was £5.6 million in the support from businesses, trusts and public charities working to alleviate suffering from 2004 financial year. bodies. The document is not a guide on how to Community Network disasters abroad. obtain funding from BT– it offers best-practice BT operations provided a further £12.4 million The Community Network (www.community- advice on how to prepare a general Children in Need in funding and support-in-kind in the network.org/) is a charity that provides funding/resourcing case. 2004 financial year, bringing the total teleconferencing facilities to the BBC Children in Need started in 1980 to contribution for the year to over 1.6% of ‘Making It Happen: BT’s Guide to Unlocking EU voluntary sector. improve the lives of UK children who have BT’s 2002 pre-tax profits. Funding’ was published by BT in January 2003. experienced problems or hardships, such as BT first funded the Network in 1989 as a six- This guide can assist UK public sector bodies abuse, serious illness and poverty. We donated £1.2 million directly to charities in month pilot project to research the social such as schools and hospitals, as well as the year. implications of this technology. More than The 2003 Children in Need appeal raised more businesses and charities, gain access to than £15 million during a seven-hour television Our community activities are in four 30,000 people now take part in Community European Union funding of Û50 billion, much of programme. BT took 370,000 calls (up by main categories: Network telephone conferences. which goes unclaimed. 150,000 on last year). • Charities and fundraising. We support a FriendshipLink, a telephone-based social club It is available as a free PDF download or you can range of initiatives with a special focus on a for housebound people, and FaithLink, which buy a copy from Politico’s online bookshop Comic Relief campaign with the UK children charity, takes people to church by phone, are two of the (www.politicos.co.uk/item.jsp?ID=2863). Comic Relief is a charity set up by comedians ChildLine. For more information, please visit: innovative ways the Community Network uses and uses comedy and laughter to get serious www.childline.org.uk. the telephone to meet social needs and Charities promote social inclusion. messages across. It is committed to helping end • Education. We use a variety of techniques We believe that we can make the biggest poverty and social injustice worldwide. It is and media from live drama to web-based impact from our charitable giving by focusing Telephone Helplines Association (THA) known for its biennial Red Nose day and the activities – to promote communication and our resources on the causes that will benefit related television appeal. citizenship in schools. The Telephone Helplines Association (THA) most from our communications technology (www.helplines.org.uk) represents organisations On Red Nose day 2003 the BT network took • Employee involvement. Through the BT and expertise. providing telephone services including advice, more than 1 million calls, with £24 million Volunteers programme, we encourage information, listening support and counselling of the total £61 million raised taken over the BT people to volunteer and spend time ChildLine on a vast range of subjects. telephones on the night. To launch Red Nose for community activities. We also help ChildLine is the free 24-hour helpline for Day 2003 we also lit the BT Tower red and others (companies, schools) to organise BT has supported the development of both children and young people in the UK. ran a cause-related marketing initiative volunteering programmes. paper and internet versions of the Telephone We are working with the UK charity on with the Speaking Clock. The Speaking Clock Helplines Directory, which lists more than 900 • Arts and heritage. We have a pioneering ‘Am I Listening?’, a major campaign which initiative helped secure a Gold Marketing national, regional and local telephone helplines partnership with the UK’s leading modern art aims to ensure that all young people are heard. Innovation Award in the 2004 Marketing throughout the UK. gallery, Tate, sponsoring its website Tate BT is committed to raise millions to help Community Awards.
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Jeans for Genes See also BT Community Connections at • International – we help schools around the Online resources www.btcommunityconnections.com. Jeans for Genes raises funds for research into world benefit from Information and serious and often life-threatening genetic Communications Technology BT Resource Bank Spreading and sharing the web disorders affecting thousands of children. BT • Lifeskills – we help to improve interpersonal The Resource Bank is a collection of free has supported the appeal since 1999 . We share our internet expertise with our communication skills in all areas of life. teaching materials that includes exercises in community partners and have helped many to speaking and listening skills and citizenship, All proceeds from the appeal are split between We support more than 600 BT people who develop their own websites. This helps as well as a unique set of Information these eight UK charities, which help children are school or college governors, or work information about their work and our Communications Technology (ICT) tutorials for affected by genetic disorders: experience supervisors. investment to reach a wider audience. primary and secondary schools. A new • The Great Ormond Street Children’s Charity Information about all our education activities BT won Gold Corporate Website Hallmark citizenship education DVD provides highlights can be found at: www.bt.com/education. • The Primary Immunodeficiency Association Awards in 2000, 2001 and 2002, and received a for teachers. highly commended award in 2003. This was • The Society for Mucopolysaccharide Diseases In schools Each ICT tutorial has a user-friendly animated from the UK Charities Aid Foundation for exploration of an important area of ICT and • The Chronic Granulomatous Disorder demonstrating its corporate community The BT Education programme is one of the includes teaching notes, activity sheets, Research Trust involvement through websites. UK’s most significant corporate investments in certificates and pupil self-assessment forms. the education sector. • The Jennifer Trust for Spinal Muscular Atrophy The Telephone Helplines Association (THA) There are 13 separate animated tutorials on the website (www.helplines.org.uk) is an Resource Bank website, all aligned to the UK • Rett Syndrome Association UK BT School Events outstanding example of a partner website National Curriculum and Scottish Guidelines. • Batten Disease Family Association developed with BT support. One of the main strands of this programme is a The site contains regularly-updated • The Haemophilia Society. The THA represents organisations providing touring roadshow. Teams of actors visit schools programmes of work and activity sheets to telephone services, including advice, in the UK, giving drama presentations and support curriculum areas, including Citizenship, Awards information, listening support and counselling communication skills workshops that bring the Literacy, Geography and History. themes of good communication and citizenship on many subjects. BT has supported the For more details see: to life. BT Community Connections development of the internet version of the www.bt.com/education/resourcebank BT Community Connections is a UK-wide award Telephone Helplines Directory. This lists over By the end of the 2004 financial year, the programme that gives local community groups 900 national, regional and local telephone roadshow had made 9,500 school visits and Join our Teacher Network the opportunity to gain access to the internet. helplines in the UK. more than two million children had been By registering their school or organisation free involved in the BT Education Programme. Judging panels in Scotland, Northern Ireland, We have teamed up with ik.com, an internet of charge on BT’s web-based Teacher Network, Wales and each of the English regions have services company, to make free, simple-to-build Specially developed curriculum resources and a users can gain access to our rapidly growing awarded more than 3,400 internet-ready PCs to websites available to any UK charity or dedicated website (www.bt.com/education) community of educators. individuals and groups who plan to make a community group. For further details, enable teachers to follow up in the classroom on Members can search for contacts with similar positive impact in their community. see ik.com at www.community.ik.com, the roadshow themes. or phone 08711 28 50. interests to help develop new projects or Two examples of excellent use of the award are: The BT Education Programme continues to exchange ideas. All registrants receive the BT focus on communication skills, but also now Education Programme newsletter informing • Croham Hurst Good Neighbours, Education closely supports the Citizenship curriculum. them of new educational developments. Croydon, UK are setting up a shopping Surveys of our stakeholders have shown that programme to allow volunteers to order food education should be a top priority for our BT Volunteers Talking Teaching over the internet for frail and housebound social investment. residents, helping to maintain their We have realigned our BT Volunteering Talking Teaching (www.talkingteaching.co.uk) is independence These are BT’s educational initiatives: Programme with our educational goals. a website providing an online forum for UK teachers and education professionals to share • Exmouth and District Youth Action • In schools – we help to improve the BT and ex-BT employees registered with best practice. Group, UK is a voluntary group of young communication skills of young people across the programme can now assist with all BT people who have set up a programme of fun the UK, and encourage good citizenship Education activity, including the Citizenship in- Run by teachers for teachers, the site has been R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A E S E S school events. R S educational activities that inform young R S established through a partnership between BT,
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Connected Earth Education Centre International Life skills Employee volunteering The Education Centre on BT’s online Many of our employees give their time to work International Schools Network TalkWorks museum, Connected Earth as volunteers, helping causes of their choice, (www.connected-earth.com/learnit), BT has established a database to help schools The TalkWorks package has been developed by supported by BT. provides free teaching resources based on in the UK and abroad to collaborate on projects BT to tackle the challenge of good We encourage our people to take part in the history of communications. related to citizenship. As a showcase of good communication. It helps people develop company volunteering initiatives. If their line practice, we feature a collaboration between interpersonal communication skills, considering manager considers this part of their personal Awards two schools in Delhi and London. For more questions such as: ‘Why do some conversations development, they are given paid time off. information, see www.bt.com/education. work well while others fail?’ and ‘Why is Teaching Awards misunderstanding so common?’ BT Volunteers Katha Information Technology BT is an associate sponsor of the Teaching BT has developed a range of products – books, Our employee Volunteer Programme enables Awards. Designed to raise awareness about and E-commerce School audiocassettes, videos and workshops – to help more than 4,000 BT and ex-BT people to the profession, the awards celebrate the people practise these skills. In India, BT is working with Katha, a Delhi- volunteer in schools. All volunteer activities achievements of teachers in England, Wales and based charity, to establish the Katha All products can be ordered via the helpline on are closely aligned with the company’s focus Northern Ireland. They culminate in a national Information Technology and E-commerce 0800 800 808. Books can be borrowed from on improving communication skills, and are event broadcast by the BBC. School (KITES) in one of the city’s slums. some public libraries. Workshops can be related to the UK’s National Curriculum and arranged by calling 0800 389 8255. Scottish guidelines. BT Schools Awards KITES offers educational opportunities to young people who have not been in formal education, More than 150 Volunteer Clubs have been We re-launched the BT Schools Awards in and provides literacy and Information and Employee involvement established across the UK. The programme September 2003 with increased funding. Communications Technologies (ICT) skills to BT employs approximately 91,600 people in the is available to BT retirees and employees’ For further information, please visit: young adults. UK. We encourage our people to volunteer in family and friends. www.bt.com/education/schoolsawards. the community because of the mutual benefits The project will provide opportunities for the The volunteers are working in hundreds of All schools across the UK were invited to apply this brings. Employees learn new skills that help teachers and parents to become computer schools across the UK, giving classroom for grants of up to £2,000 each. A total of 238 them at work and the community benefits from literate, to help their personal and professional lessons on speaking and listening skills, and projects will be funded. their expertise. advancement. helping to develop free websites for schools, Schools were asked to demonstrate how their There are many ways that our people can get classes and projects. A number of events have project relates to the newly introduced Young Scientist & Technology involved. They can support a local school’s been run for teachers and information Citizenship curriculum and how it helps improve Exhibition in Ireland activities as a BT Volunteer, answer telephones technology co-ordinators to help them young people’s communication skills. The Esat BT Young Scientist & Technology in a telethon or donate money regularly via BT’s understand the technology available to them. Regional media partners will help to promote Exhibition is a high-profile academic event and Give As You Earn programme. Employee giving the Awards, together with a UK national competition for second-level students in Ireland. Many employees are involved in their local newspaper, The Guardian, which will continue Esat is BT’s service and solutions division in communities through activities unrelated to Give As You Earn to work with us on the new programme. Ireland. The exhibition aims to foster greater BT’s own initiatives. Our Community participation in science at school and future The 238 winning schools will all have a further Champions Programme encourages and We operate one of the UK’s largest payroll study and research, by enabling young students opportunity to win one of three £10,000 recognises their work by giving financial help giving programmes, through which over to demonstrate their innovative capabilities. awards, by submitting project progress reports to their organisations. 9,000 BT people donate money to the charity in May 2004. Esat took over the title sponsorship in 1998 and of their choice. BT matches funds to a in that year included Technology as a stand- maximum of £1 million. The Awards were re-launched on 28 May 2004. alone category for the very first time. BT Deadline for submission for the 2004 Awards is The Charities Aid Foundation runs the manages everything, including initial 12 November 2004. programme on BT’s behalf. Its figures show communication with schools, promotion of the that in the 2004 financial year, the total competition, layout of the exhibition and the amount raised by employees was more than
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Employee awards Arts & Heritage BT’s heritage collection • Two exhibitions featuring objects from BT’s dispersed museum collection and documents Throughout history, art in its many forms has We believe it is important to preserve the BT Community Champions loaned by BT Archives at the Museum of been one of the most powerful and enduring nation’s telecommunications heritage for London; Support for BT people’s voluntary work in ways in which people have communicated educational and cultural purposes. We have their local communities is recognised by the feelings and ideas. both the means and the enthusiasm to spread • Galleries planned for the Museum of Science BT Community Champions Awards, open to awareness of this rapidly evolving technology. and Industry in Manchester (2005), Milton It is entirely appropriate that BT, a company all employees. Keynes Museum (2005) and the Museum of dedicated to encouraging and sustaining a Connected Earth London (2007); The BT Chairman, Sir Christopher Bland, who communicating society, should be an hosts the annual Awards ceremony, selects the enthusiastic promoter and supporter of the arts. BT inherited a rich collection of historic • Appointment of Connected Earth Research overall winners in each category. telecommunications artefacts, documents, Fellow at the Science Museum, London. Tate Online images and films. Working in partnership with a BT Awards for Quality network of museums across the UK, we have www.connected-earth.com Tate Modern in London is one of the foremost made this significant collection available to the Employees who deliver excellent results for modern art museums in the world. This on-line museum went live in June 2002, widest possible audience through Connected community causes may be acknowledged by the featuring more than 1,400 pages of content We sponsor Tate Online, the Tate’s virtual Earth exhibitions. For more information, see: company’s recognition programme, the BT exploring the history of communications, and gallery and the UK’s most visited arts website www.connected-earth.com/learnit. Awards for Quality, which is championed by our charting how – in the past 200 years – humans (www.tate.org.uk). The site is powered by BT, Chief Executive, Ben Verwaayen. Connected Earth has two main strands: have radically extended their ability to transmit which provides technical support, hosting and information, ideas, words, pictures and, most online broadcasting. The website is rich in • The distribution of BT’s artefact collections to importantly, speech itself, across the globe. Community volunteering content and interactivity and provides access a UK-wide network of museums, who have the Our involvement in volunteering goes to over 60,000 works of art in the Tate professional expertise to care for the Visitors to the site increased from 8,204 in beyond the direct engagement of BT people. collection and displayed periodically in the collection, while providing the opportunity for March 2003 to 37,200 in January 2004. We also help bring people together for four Tate Galleries. people to see the artefacts for themselves The site also includes substantial educational voluntary activities. across the UK Since September 2001, BT has worked with content, aimed at primary and secondary BT supports TimeBank, a national UK Tate to develop a number of innovative and • The creation of a major museum on the stages of UK National Curriculum and Scottish volunteering campaign that raises awareness of exciting projects specifically for Tate Online and internet which underpins the physical Guidelines. There are a total of 15 projects giving time through voluntary work. It provides virtual methods of navigating Tate Britain and Connected Earth exhibitions, and allows on the site, comprising 74 downloadable a way for people to get involved locally by Tate Modern have been devised. In the autumn virtual access to the BT collections, while worksheets. These are divided into general donating their time to community activities. of 2002 BT worked with Tate to re-create the telling the story of communications. communication projects and projects designed entire Turner gallery on the website in a visually to enhance a visit to one of the Connected We believe that volunteering and working BT has retained its documentary, image and stunning 3D representation. Earth museums. successfully in unfamiliar teams requires good film collections, held at BT Archives communication and relationship skills. BT’s involvement with Tate has proved highly (www.btplc.com/archives), which is open to the BT hosted the launch of the Museums, Libraries successful, with traffic to the Tate website public by appointment. and Archives Council’s Archives Task Force Our support extends to server and website increasing to more than two million visitors a report in March 2004. facilities, and we have developed a Corporate Connected Earth was launched in April 2002, year since our partnership began. TimeBank – a packaged volunteering and has made significant progress since then. The Tate Online website has received two programme that will help companies develop By April 2003, Connected Earth exhibitions Interactive BAFTA Entertainment Awards (the volunteering programmes of their own. opened at Goonhilly Satellite Earth Station in most recent for best online factual site) as well We also have plans to help develop a Cornwall, Avoncroft Museum in the West as the London Tourism Award for best website, Schools TimeBank to assist schools in Midlands and Amberley Working Museum in and has been rated the UK’s top art site by running a programme to involve pupils in West Sussex. independent analysts Hitwise. the local community. This will become one Progress since April 2003 has seen: of the volunteering activities we offer via The Tate sponsorship won an award for the BT Volunteers. best use of PR in a sponsorship campaign at • A Connected Earth gallery – Communicate! 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BT Social and Environmental report Customers
We intend to be the best provider of Customer satisfaction BT publishes these customer-satisfaction and Customer satisfaction quality-of-service measures every six months. communications services and solutions: Improving customer satisfaction is the Customer satisfaction is a measure of those cornerstone of BT’s strategy. The perceptions and views of our business customers who are fairly, very or extremely • For everybody in the UK customers are surveyed by an independent satisfied with BT. We have established the strategic target to agency. An average of 1,900 BT business • For corporate customers in outperform our competitors consistently and BT Retail’s performance over the last three customers and 450 corporate and government Europe and reduce customer dissatisfaction by 25% a year months of the past three financial years customers are interviewed every month over the three years to the 2005 financial year. indicates that we are making progress. • With global reach through by telephone. partnerships. The quality of the service we provide – and our BT Global Services also survey 100 international customers’ satisfaction with that service – is customers monthly. In the 2004 financial year, Satisfaction scores for residential customers fundamental to our business. In the UK, we serve 20 million business and we launched a new BT Global Services customer BT Competition residential customers with more than 29 million We are committed to listening to our customers satisfaction survey to increase the number of exchange lines. We also provide network through our millions of day-to-day interactions international customers we reach. 1999/2000 86% services to other licensed operators. with them and through one of the largest 2000/2001 80% customer-research programmes in the UK. Customer dissatisfaction Our extensive global network and strategic 2001/2002 77% 76%* partnerships enable us to serve multi-site Here we describe: Reducing customer dissatisfaction by 25% a year over the three years to the 2005 financial 2002/2003 76% 75%* corporate and government customers in all key • Our customer satisfaction measures year is a key target in our drive to deliver the commercial centres of Asia, Europe and North • Comparable Performance Indicators 2003/2004 79% 71% America. In Europe our network links more than highest levels of customer satisfaction. • Initiatives to improve customer satisfaction Source: (Data Source NOP World) 250 towns and cities across 19 countries. • Quality of Service report. Customer dissatisfaction measures those Sample: Approximately 42,000 Our strategic priority is to outperform customers who are fairly, very or extremely competitors consistently and reduce the number Satisfaction measures dissatisfied with BT. of dissatisfied customers by 25% a year over In order to improve levels of customer In the 2004 financial year we achieved a Satisfaction scores for business customers three years. satisfaction, a thorough understanding of what 22% reduction in customer dissatisfaction. BT Competition Here we explain our approach to: drives both customer satisfaction and This follows a 37% reduction in the 2003 dissatisfaction is required. financial year 1999/2000 82% • Customer satisfaction • Customer communications To achieve this, we carry out more than The principal lines of business all reduced 2000/2001 79% customer dissatisfaction levels during the year. • Customers who are older or disabled 3,000 face-to-face interviews with residential 2001/2002 64% 62%* • Services for customers customers every month. We ask them about We are working to remove barriers to providing • Voluntary and mandatory services their overall perception of BT and quality of customers with an excellent service and to 2002/2003 80% 73%* • Mobile communications and health. service. Customers who use competitors involve all our customer-facing people in 2003/2004 83% 76% are asked about their satisfaction with improving our service. these operators. Source: NOP (from September 2000), prior to Although we are well ahead of our competitors that Market Insights In addition to measuring satisfaction, these in most areas of business customer satisfaction, interviews examine many of its key drivers – we will strive to make further significant Sample: Approximately 21,000 image and reputation, price and value, contact improvements. A programme has been put in *Accumulated average for the last three months and experience and products and services. place that focuses on key areas of customer of the year dissatisfaction. Our customers’ views about the service we provide and our range of products is important to us, allowing us to continue to make improvements. A customer’s view of their direct experience of BT is canvassed by an R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A E S independent agency with approximately 9,700 E S R S R S
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BT Social and Environmental report | Customers 1
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We carry out detailed surveys of satisfaction • Keep in touch with customers during repair Feedback from panel members provides with different aspects of service and use the work via SMS texting valuable insights into consumer thinking and percentage of customers who are satisfied informs the policy-making process within BT. Offer call diversion to a mobile – the overall with the provision of service or service • The panels regularly discuss a range of issues customer’s own or one lent by BT. repair as a measure. including customer service, how we keep These initiatives have already become customers informed, mobile telephony, The results for the last three months of common practice. payphones, billing, access to and marketing of the 2004 financial year among BT Retail broadband technology and the provision of customers are: In the 2005 financial year, there will be a services for customers with disabilities. radical change in the way we deliver service Consumer Business Consumer Business to our customers with the introduction of a satisfaction with satisfaction with satisfaction with satisfaction with Specialist interest panels programme called Promise Made, Promise Kept. provision provision repair repair Our customers have told us that this is what We have also set up a number of specialist 2000/2001 88% 83% 75% 82% they want. interest panels to explore the views of particular groups of customers – for example, small and 2001/2002 92% 84% 79% 84% The programme involves units from across the medium-sized enterprises (SMEs), broadband company working together to ensure we keep 2002/2003 88% 85% 81% 85% users and young people. our promises. 2003/2004 93% 86% 78% 84% Quality of Service report Listening to consumers We listen carefully to consumers’ views and The quality of the service we provide is Comparable Performance Indicators performance of all participating operators. build feedback directly into policy-making and fundamental to the success of our business. Our business customers are among the most service provision. For example: We are a founder member of the UK satisfied with our performance in providing This is why we operate one of the UK’s largest telecommunications industry’s initiative service, complaint handling and billing. programmes of customer research. We talk to • The Milton Keynes consumer liaison panel is on publishing Comparable Performance our residential and business customers regularly linked to the strategic development of our call Indicators (CPI). Initiatives to improve customer to gather their views about BT, the service we centres, as part of a programme known as CPI is a voluntary, cross-industry initiative, satisfaction provide and our range of products, so that we Next Generation Contact Centres. Concerns supported by consumer representatives, the can continue to make improvements. raised by panel members have caused us to Listening to our customers has helped us review our plans and make them more Office of Communications (Ofcom) and The Quality of Service reports are available in understand what they expect from us: responsive to customer needs. telecommunications companies. CPI helps our online report. customers compare the performances of • We must be easy to contact • Feedback from panels in Manchester and telecoms companies in the UK and make an • We must keep them informed (we shouldn’t Customer communications Glasgow has contributed to continuous informed choice on the best deals available. improvement of the BT bill as a useful and need to be chased) We need to know what our customers’ concerns Since CPI was created seven years ago, meaningful communications tool, which • We must take ownership of their issues and are if we want to keep them satisfied. We have participating operators have been publishing matches customer needs. champion their cause established a number of consultation initiatives information on their performance in key to help us identify these concerns. • Consumer liaison panels have also helped us activities: provision, repair, network faults, • We must live up to the commitments we to understand consumers’ perceptions of We also provide ways for our customers to bring complaints and billing accuracy. make to them. corporate and social responsibility, and to issues and complaints to our attention. The data is collected by the telecoms companies These principles guide us in all our initiatives define the key performance indicators used on this site. using agreed procedures. It is checked initially to improve customer satisfaction. They Consultation by independent auditors and then by an demonstrate that satisfaction depends not only We undertake in-depth consultation to independent body, the British Approvals Board on price but on the level of service. Complaints understand our customers’ needs and concerns. for Telecommunications, to ensure a sufficient We don’t always get it right, but we’re We are committed to providing the best level of comparability in the application of the telecommunications service. However, sometimes determined to reduce to a minimum the number Consumer liaison panels audit process. things go wrong, and when they do, we want to QU of times we get it wrong. QU A R A L E R L I T E I T T T Y S Y I S I A G A G E S E S R S We run a number of consumer liaison panels put them right as quickly as possible. R S
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BT Social and Environmental report | Customers 2 Customers continued
If a customer is not happy with the response service enables Textphone users who may be Telephone products Low incomes they receive they can ask for the matter to be deaf, deaf blind, hard of hearing or speech- BT has a variety of telephones with accessible A phone service can act as a lifeline. We provide referred to the appropriate senior manager. If impaired to make and receive calls to and from features such as large buttons, voice a basic telephone service for all, including the complaint still cannot be resolved, the case hearing people. amplification and headset sockets. We currently people on low incomes or those who have can be taken to the BT Complaint Review supply the only rental Textphone in the UK. We trouble paying their bills. The services are: Service. The Service will review all aspects of the Consultation will soon be launching our latest Design for All case and strive to resolve the matter to the • Light User Scheme is designed to help those In the 2004 financial year, we set up the BT User phone, with new features such as voice-prompts customer’s satisfaction. people in the UK who need to stay in touch Panel to consult with disabled people on key and a keypad lock. but make few calls themselves. It is available More information on BT’s complaints procedure issues. The panel’s members are BT people with to people whose quarterly call charges are is provided in the Service Guide ‘Complaints an interest in disability, who provide us with early Product trial service below £15.95 (excluding VAT), who are not on about our Service’. feedback on new products and services to ensure BT’s Age & Disability Action Team works with any BT discount schemes, not using indirect that accessibility is considered. Ofcom, the regulator for the UK communications healthcare and independent-living specialists in access or don’t have a telephone service industry, publishes advice about how to make a the UK to provide a unique product trial service. provided by a mobile network operator. The Payphones complaint to a telecoms company. This enables older and disabled customers to scheme provides rebates of around 60% on All our existing payphones have inductive find the right BT product for their needs. line rental. Services for customers who are older couplers that improve the clarity and audibility • In-Contact Plus Scheme enables customers to or disabled of incoming speech for people wearing Training receive incoming calls and make outgoing compatible hearing aids. Our latest range of Our aim is that all members of society should We provide disability awareness training to a calls to the emergency services, for a joining text payphones enables UK customers to send enjoy the same freedom and opportunities to number of our engineers who can offer advice on fee and quarterly line rental charge of less e-mails and SMS messages and to access BT communicate. The Employer’s Forum on suitable services to customers with disabilities. than £10. With a BT In-Contact card, TextDirect. There are 1,200 text payphones in customers can also make outgoing chargeable Disability estimates that one in four customers We also organise a disability awareness course, UK airports, railway stations and motorway calls. Cards can be topped up at over 10,000 either has a disability or is close to someone covering the legal, political and social aspects service stations. Paypoints in the UK, in convenience stores who has. In its 20th year since privatisation, of disability. BT continues to provide a wide range of and petrol stations. Billing products and services for older and disabled Web accessibility • Pay & Call is a pre-pay service allowing people. These customers often require BT has been providing bills in alternative customers to make calls as long as their We are committed to making all BT services additional support or advice to benefit from formats since 1992. In the 2004 financial year, account is in credit. We recommend it to fully accessible, particularly our online services. today’s communication services. we improved our service for people who are customers who find it difficult to pay their Our Age & Disability Action website seeks to visually impaired by ensuring that the required bill and where we consider there is an help old or disabled customers make the most BT TextDirect and RNID Typetalk alternative format is provided at the same time exceptionally high risk that payment may not of today’s communication services. It is the first as the standard bill. be made. Using this service and topping up an Launched in July 2001, BT TextDirect is the BT website to be awarded the Royal National The formats available are braille, large print, account is straightforward. Pay & Call can also world’s first service to provide textphone users Institute for the Blind (RNIB) See It Right logo. computer disk and our talking bill service. Many be used to pay off outstanding debts. access to the telecommunications network. We are working to improve levels of web other BT publications and user guides are also Textphone users dial a special number before accessibility across all our websites. the number of the person they would like to available in alternative formats. Disconnection For more information, see our Age & Disability speak to and a RNID Typetalk operator joins the Our Protected Services Scheme enables We regard a disconnection as a failure and make Action website at http://www.bt.com/ line to relay the conversation. The Typetalk vulnerable customers to nominate a third party every effort to avoid it. We offer flexible payment aged_disabled/index.jsp] operator reads the text to the hearing person, to manage their bills on their behalf if, for options to help customers budget for bill and types the hearing person’s reply so the payment. If customers do have temporary example, they are hospitalised. Services for customers Textphone user can read the response on the payment difficulties, we are eager to work Textphone display panel. Directory enquiries We provide a number of services to enable with them to avoid the need to disconnect. customers on low incomes to benefit from For example, we are willing to agree payment This system has simplified the making and We provide the 195 free directory enquiry communications technology. We have also plans to help customers pay over a longer period receiving of calls between voice and Textphone service for customers who cannot use a phone R QUA L R QU A L T E I T T E I T introduced services to make payment easier and Y Y than usual. I S users. BT TextDirect also automatically I S G A G A E S E S R S book because of a disability. Our website also R S
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BT Social and Environmental report | Customers 3 Customers continued
(except for calls to BT and emergency numbers). Complex cases, which may require police Voluntary services We only consider temporarily disconnecting the investigation or call tracing, are passed on to Service Notes service from outgoing and incoming calls if NCB specialists who are trained in police liaison payment is still not forthcoming or we are and may appear in court as prosecution Publication of comparable BT and other telecommunications companies performance indicators (CPI) participate in the CPI forum and provide unable to negotiate a realistic payment plan witnesses if necessary. comparable quality of service results, which are with the customer. The Nuisance Call team can be contacted published every six months. Most of the information currently available was already Our Bill Payment Code of Practice describes our 24 hours a day on 0800 661 441. published by BT before the CPI agreement. procedures for requesting payment and the help customers can expect if they have problems paying. Payphones and inclusion Consumer liaison panels BT has been running Consumer Liaison Panels since 1984 to help identify and understand We have updated the reporting measure used In line with our Universal Service Obligation (our consumer concerns. this year from ‘telephone lines’ disconnected to regulatory duty to ensure that basic telephone Nuisance Calls Bureau BT set up this facility voluntarily to offer expert that of ‘accounts’ disconnected. Accounts are services are available to all UK consumers at advice and practical action to help victims of more representative of a single household or affordable prices), we ensure that payphone malicious and nuisance calls. single business. services are provided to meet community needs, Production of telephones for disabled customers BT supplies a wide range of equipment for including rural communities. disabled people. Total number of disconnections* (residential customers) We currently have around 72,600 public payphones in operation, with a further 24,100 Financial Year Total number of disconnections Mandatory services managed sites. Call minutes from public Typetalk/TextDirect BT provided significant financial support to 1999 781,948 payphones have fallen considerably in recent Typetalk voluntarily, before this became a 2000 1,067,972 – a trend mainly due to increased mobile use – licence condition. making many payphones unprofitable. The text users rebate scheme is a regulatory 2001 964,810 requirement for BT. BT’s challenge is to meet regulatory 2002 1,061,036 requirements on providing access, while Free priority fault repair service for BT is obliged to provide a priority fault repair some customers service to disabled customers. We extend this 2003 1,051,545 ensuring that our payphone operations are service to customers at risk because of age or financially viable. other factors. 2004 981,336 During the 2004 financial year, we reduced the Directory enquiry information for those unable to BT is obliged to provide a free directory enquiry use a phone book service to disabled customers who cannot use a Total number of disconnections* costs of our payphones operation through the phone book. (business customers) removal of over 16,000 payphones. However, none of these removals resulted in the total Billing and general information for disabled BT has voluntarily provided bills and some of its Financial Year Total number of disconnections removal of payphone service within communities. customers in braille, large print or on audiotape publications in alternative format to disabled customers for many years. It is now part of BT’s 1999 124,226 operating licence requirements to provide E-payphones 2000 182,651 contracts and bills in an acceptable alternative We have installed more than 1,500 new format upon request. 2001 91,262 Under the Disability Discrimination Act 1995, e-payphones in the 2004 financial year. BT also has wider obligations to provide any 2002 292,432 These kiosks enable customers to surf the customer contact in alternative media. internet, send emails and text messages 2003 301,926 Public payphones with inductive couplers BT is required to provide inductive couplers in and make payphone calls. public payphones. 2004 132,528 BT plans to increase the number of e-payphones Light User Scheme This scheme was designed to reduce the * This includes those who pay after to 20,000 by 2007, creating a nationwide number of disconnections and the number of disconnection and reconnect before their service network capable of accommodating around people without access to a telephone. It enables is formally terminated. 60 million hits a week. BT to meet its Universal Service Obligation to accommodate consumers with special social needs.
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Mobile communications and health Report on the possible health effects posed by Wireless LAN mobile phone technology, including base stations, With the demerger of mmO2 in November BT owns and operates one of the largest Public the UK Department of Health produced two 2001, BT ceased its mobile network operations Wireless LAN networks in the UK (BT Openzone). advice booklets which BT and all mobile operators but retained a number of mobile services, Public WLAN require considerably lower power make available at their retail shops: products, activities and interests. These include: and radiation levels than the GSM standards. • Department of Health Mobile Phones and BT markets its consumer mobile phone Additionally, the main application of Public • Health booklet (available at www.doh.gov.uk/ offering online at www.bt.com/homeplan and Wireless LAN is for data devices (such as laptop, mobilephones/mobilephones.pdf) sells mobile voice and data products into the PDA or tabletop device) with the transmitting business market through direct sales • Department of Health Mobile Phone Base antenna positioned some way away from the channels. BT offers a range of mobile phones Stations and Health booklet user’s head. This was the main area of concern with mobile telephony power absorption. from several phone manufacturers (available at www.doh.gov.uk/mobilephones/ • BT phones operate on the T-Mobile network basestations.htm) Therefore, the radio power levels near Public for consumer mobile services and on the Wireless LAN sites are significantly lower than O2 network for business Mobile base stations around mobile phone antennae and devices, all of which are well within the guidelines and BT operates an extensive Public Wireless Local BT follows the highest industry standards and • recommendations of the UK Government Health Area Network (LAN) network and a number of code of practice relevant to its operations. For advisory bodies. Private Wireless Local Area Networks (WLANs) example, BT requires that the ICNIRP guidelines in its own buildings on radio frequency (RF) emissions are applied on Similarly, any Private Wireless LAN site, which all BT sites used by mobile operators. uses exactly the same technology, standards, BT installs Private Wireless LAN networks in • equipment and power radiation levels as the business locations and sells the components In addition to ICNIRP standards a number of Public sites, are deemed to be significantly well for BT customers to install their own Wireless other measures relating to RF and base station within all current and known standards and LAN networks at home or in their offices deployment are built into an industry code of guidelines for safe usage. practice, known as the ten industry • BT infrastructure (including some BT exchanges, commitments. BT was a signatory of this code buildings and telegraph poles) is used to house RA audits and industry consultation of practice and adheres to all its core principles. mobile phone base stations and aerials. Further details of these practices can be found procedures on the mobile operators’ website BT makes public the locations of existing Handsets (www.mobilemastinfo.com/planning/ antennae on the Radiocommunications Agency All mobile phones sold by BT fully conform with best_practice.htm). (RA) Sitefinder website (www.radio.gov.uk). the international safety standards on exposure Although no longer a mobile operator in its own Additionally, the RA has concluded a number of to radio frequency (RF) emissions set by the right, BT offers mobile operators a service called audits of sites near schools and hospitals in International Commission on Non-Ionising Microconnect. Microconnect is a network of 2001 and 2002. The results, published on the Radiation Protection (ICNIRP) and the National small low-powered antennas mounted on street website, show that exposure levels are many Radiological Protection Board. furniture – such as lighting columns and lamp- hundreds to thousands of times below the BT also monitors all relevant scientific posts – designed to provide mobile phone ICNIRP public exposure guidelines. findings relating to mobile phone health coverage to city centers. The exposure levels BT liaises with relevant local development issues and follows the advice of the World from these small devices will be hundreds of authorities about network growth and the Health Organisation (WHO) and other leading times below the ICNIRP guidelines at street planning of mobile phone antennae deployment, health organisations. level. Before installing the new Microconnect as recommended by the industry code of practice. antennae we undertake consultations in line It is also possible to measure how much radio A number of different consultation models were with the industry commitments. wave energy your body receives from each agreed by the industry partners in the framework model of mobile phone. This is called the specific The WHO advises that “RF field levels around of the ten commitments. BT – and all mobile operators in the UK – apply these models R QUA L R QU A L T E I T absorption rate or SAR. There is a European base stations are not considered a health risk”. T E I T Y Y I S I S G A G A E S E S R S R S according to a range of criteria on a site–by-site
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AA S this information is provided to consumers for television and radio broadcast antennae • AA S 1000 A 1000 A share masts wherever possible. More information each model of mobile phone sold in the UK. BT commonly transmit higher RF levels than do Offices worldwide Information and Information and can be found on the mobile operators’ website at data on this page offers a range of mobile phones from several mobile base stations“. More information on data on this page © British Telecommunications plc 2004 has been verified manufacturers, who all apply these standards. WHO guidance and fact sheets is available on has been verified http://www.mobilemastinfo.com/planning/ Registered office: 81 Newgate Street, London EC1A 7AJ by Lloyd’s Register by Lloyd’s Register Registered in England No. 1800000 the WHO website. best_practice.htm Quality Assurance Ltd. Additionally, following the May 2000 Stewart Quality Assurance Ltd. Design by Red Letter Design Employees
BT Social and Environmental report Employees
We employ approximately 99,900 Diversity Education The company has approximately 7,900 employees working from home and people around the world, including It is crucial that our people reflect the diversity To help maintain a good supply of talent, approximately 5,600 people working part-time. 91,600 in the UK, where we are one of of our customers and are able to meet their we encourage young people to enter higher the largest employers. ever-changing needs. We work with a range of education, especially in Information and We recognise that flexible working is not only employment agencies, universities, schools and Communications Technology (ICT) subjects. about location and hours but about balancing college careers offices. We inform them of the work and home commitments. This is why our Our approach is to treat our people To help address Europe’s continued shortage of variety of jobs available in BT and that we policies, including emergency leave, maternity people with good ICT skills, BT co-chairs the fairly and responsibly, helping them welcome a wide diversity of people into our and paternity leave and sickness pay, far exceed Career Space consortium, a European achieve their full potential, while business. the UK minimum legal requirements. respecting their personal and public/private partnership that encourages For example, representatives of BT’s diversity people, particularly women, to get engineering We realise that there are still too many cases community commitments. networks attend careers fairs to promote BT as and computer skills. We work with 25 European where the balance is not as we would like it to a place to work. These efforts – which have universities to develop and launch new ICT job be. Our challenge is to promote best practice Here we describe how we manage: focused predominantly on graduate recruits – profiles and curriculum guidelines. We also across the whole company. are reflected in our recruitment diversity figures offer hundreds of undergraduate placements • Employment for the 2004 financial year: each year. Work-life balance in practice • Employee relations • 15.3% of our new recruits are from ethnic We support the UK Government’s initiatives to Our work-life balance policies are in one • Diversity and inclusivity minorities – including 27.3% of new encourage women into work and the annual portfolio called Achieving the Balance. It covers graduates and 11.5% of modern apprentices – flexible working, home-working, part-time • Learning and development Take our Daughters to Work Day. The event compared with 8.9% of BT’s total workforce. gives young men and women the opportunity to working, job sharing, maternity and paternity leave, adoptive leave, parental leave, special • Health and safety. • 32.8% of our new recruits were women – experience working life in a job traditionally leave and leave for carers. including 42.2% of new graduates and 11.5% done by the other gender. Employment of modern apprentices– compared with 22.7% In the UK, we support the Oxford Access In March 2004, we had approximately 5,600 Here we present our approach to: of BT’s total workforce. programme that provides access to science part-time employees and approximately summer schools for students from inner city 7,900 home-workers. Using innovative • Recruitment • 0.2% of our new recruits had a disability as and ethnic minority backgrounds seeking communications technology many more • Diversity defined by the UK Disability Discrimination university places. BT people can work flexibly. For example, • Education Act (DDA) – including 1.1% of new graduates employees can do a mix of home- and office- • Retention and 0.6% of modern apprentices– compared For more information see Career Space working, work long and short days, and save • Work-life balance with 2.1% of BT’s total workforce. (http//www.career-space.comand) and the blocks of non-working time (e.g. to use during • Pay and benefits. Oxford Access Summer School programme These figures do not include the people school holidays). who work in our subsidiaries – around 4% (www.oxford-access.org) This is made possible by the use of ICT Recruitment of our workforce. Retention technologies such as hot-desk office share, We employ thousands of new people each year, We are very encouraged by these figures. laptops with wireless internet connections, so we need to make sure that we attract, select Attracting the best people is one thing – It shows that the profile of our company is and handheld personal organisers. and retain the best. beginning to reflect our efforts to promote keeping them is another. It is in our best interest to be as flexible as possible and to Flexibility, particularly in attendance patterns, is During the 2004 financial year, we recruited equality and diversity. provide continuous learning opportunities in an inclusive: it opens opportunities for people with 180 graduates and 157 modern apprentices in environment of exciting, challenging teamwork. disabilities, carers and those returning to work the UK, and 1,950 other new entrants. Progression after a career break. As part of our continuing programme to reshape Opportunity to make career progress is very Work-life balance BT, 4,154 people left BT voluntarily, by leaver important. In the 18 months to September Initiatives Because we want to provide a high-quality payments or voluntary redundancy. 2003, of those promoted to management We participate in a number of initiatives to learn positions, 43% were women and 12% from service to our customers, the working day for BT supports the UK Government's New Deal for and share our experience with others. ethnic minorities. many BT employees extends beyond normal
R QUA L R QU A L T E I T Young People employment programme. T E I T S Y S Y hours. One of our great challenges as an I I G A G A E S E S • We are members of Employers for Work-Life R S R S
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BT Social and Environmental report | Employees 1 Employees continued
• With the theme Agile Business – Balanced During the 2003 financial year, we made In the 2004 financial year, our lowest main scale Equal-pay activities significant improvements to maternity, paternity starting salary was £9,518 for a 36-hour week Life, we encourage employees to assess our In the 2004 financial, year we established plans and adoptive leave for parents with children (£5.07 per hour). achievements and identify new ways to to introduce in the 2005 financial year a new born after 6 April 2003. We continue to offer promote a healthy work-life balance. In 2005, we will introduce a flexible benefits reward framework for around 34,000 parental leave benefits far greater than the legal Our CEO Ben Verwaayen chaired the UK programme for about 28,000 managers and employees, based on a set of job families minimum. These benefits are also available to Government’s Lone Parent Task Force, which professionals in the UK. We hope to extend this across BT. those in same-sex relationships. to a wider group of employees, in the UK and looked for ways to break down barriers This framework will allow more consistent Our enhanced maternity leave provides abroad. This will have to take into account local preventing lone parents from taking formal reward decisions to be made, based on an 18 weeks’ basic pay and regular allowances market conditions and be subject to agreement work. He submitted their conclusions in a individual’s value in the job market combined (excluding overtime). This is followed by eight with unions/work councils. report, Work Works. Elements of the report, with their contribution to BT’s success. It will weeks at half pay or lower-rate Statutory including BT’s leading role in promoting work- also form a key component of our analysis of Maternity Pay, or £100 per week – whichever is Equal pay and equal value life balance programmes, were incorporated in equal pay issues for this group of employees. the greater. After that employees get £100 a the UK Budget Statement in April 2003. Our approach to equal pay encompasses In addition, over recent years we have: week for 26 weeks. gender, ethnic origin and disability. Since then, BT has been lead sponsor for two • Published an equal pay/equal opportunities Paternity leave is now two weeks at full pay and successful pilot events, called Discovery Weeks, We have played an active and constructive role policy which is reviewed annually. two weeks’ unpaid leave, to be taken within to show lone parents the choice and lifestyle in the gender pay debate over a number of 56 calendar days of the birth of the child. • Carried out an audit to ensure that options work offers, and supported innovative years. For example: lone-parent employment initiatives in London performance-related pay does not and Glasgow. Pay & benefits • Our UK Human Resources Director chaired inadvertently support discrimination. the Equal Opportunities Commission Equal Our benefits package must be competitive if we • Changed our promotion remuneration We chair the UK Employers for Carers Pay Task Force organisation, launched in December 2003 at are to continue to recruit and retain the best procedures, particularly in management the BT Tower in London. The organisation’s talent. Here we set out our approach to: • We were members of the UK Equal grades, from a percentage of base salary to a Opportunities Commission Working Group on comparison with peers and the market. website presents a list of activities undertaken • Employee benefits the Equal Pay Audit Tool and Equal Pay during the year to accommodate the needs of • Equal pay • Restructured our non-management grading Guidelines working carers and to stimulate public debate • Pensions. system to a skill-based approach taking into on the issue. We sponsored the BT Carers in Our detailed pay-gap audits undertaken in account equal pay. This has provided levelling Employment Award in 2003, as part of our Employee benefits recent years have revealed a persisting gap in across the engineering grades which typically continuing support for the charity, Carers UK. pay between the genders. This is a legacy from attract men, and clerical grades which In addition to a competitive basic remuneration the days when our workforce was split between typically attract women. package, we offer a range of benefits that Working parents engineers (primarily male) and clerks and promote employee ownership: • Focused our pay review on the lower end of operators (mainly female). Pay levels for the two Working Families, a UK campaign organisation, our pay scales, where there are likely to be groups were largely developed separately. reviewed our Work-Life Balance policies in • SaveshareBT – an option to buy shares at a more women, discounted rate over three or five years. More 2002, endorsed our activities and suggested a This, combined with the old incremental than half of BT employees participate, • Included statements about equal pay and the number of improvements. approach that linked pay to management including 43% of our international employees. avoidance of discrimination in our annual pay seniority, created a pay gap between those One was to gain the Tommy’s Pregnancy guidance. We specifically briefed our senior reaching management positions from Accreditation by demonstrating that we meet its • AllshareBT – gives employees the right to managers, who have ultimate ownership of engineering grades, as opposed to those taking criteria for creating a supportive environment receive free shares based on company-wide the pay budget. for pregnant employees. This was achieved in performance. the clerical route. • Carried out a pay audit following each pay the financial year 2004. We have Board support to close the gap and • DirectshareBT – employees may buy BT review and agreed the key measures with our pay review processes include guidance on In March 2003, a scheme to help parents Group shares from their pre-tax salary each our unions, maintaining a dialogue on all equal pay. reduce their childcare costs was introduced in month. More than 14% have done so. equality matters. the UK. BT Childcare Salary Direct is an All team members (non-managerial grades) are employee benefit programme that employees Flexibility • Recognised work-life balance as a key R QUA L R QU A L now on the same pay structure and this has T E I T T E I T Y Y I S I S G A G A enabler to eliminating some of the barriers E S E S R S can use for all types of approved childcare. R S
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BT Social and Environmental report | Employees 2 Employees continued
• Extended our focus to include ethnicity and the Fund, and annuity rates at retirement These policies apply to the BT Pension Scheme “A company run in the long-term interests disability pay monitoring. (rather than their final salary in BT). Members and the BT Retirement Plan: of its shareholders will need to manage effectively have a choice of seven different funds in relationships with its employees, suppliers and • The Hermes Principles set out the principles which to invest. There are around 5,000 customers, to behave ethically and to have regard Equal value and expectations that should exist between contributing members. for the environment and society as a whole.” The concept of equal value is explained by the shareholders and companies. In summary, a UK Equal Opportunities Commission: This change is in line with the practice company’s primary consideration should be [Extract from the BT Pension Scheme Statement of “Equal value is that jobs, which at first sight may increasingly adopted by major UK groups and is the generation of long-term shareholder Investment Principles]. designed to be more flexible for employees. It value, and this should be based on be very different, can turn out to be of equal value Hermes’ active approach to corporate enables BT to determine its pension costs more appropriate financial disciplines, competitive when analysed in terms of the demands made on governance includes the implementation of precisely than with defined benefit schemes. advantage and within a framework which is the employee.” this statement. economically, ethically and socially Equal Value for equal work is starting to make Hermes Pensions Management Limited responsible and sustainable. an impact as an issue. Employee relations The BT Pension Fund is managed on behalf of • The Hermes Statement on UK Corporate In the UK, the landmark Enderby v National Good employee relations are vital to a strong, the Fund trustees by Hermes Pensions Governance and Voting Policy sets out Health Service court case had a significant healthy and successful company. Here we Management Limited, a wholly-owned how Hermes will exercise its clients’ influence on the way organisations view this explain our approach to: subsidiary of the BT Pension Scheme. ownership rights and is intended as a basis question. The court concluded that collective The Fund is controlled by trustees who are for dialogue between companies and • Our annual employee survey bargaining and market value could not justify BT and Trade Union nominees, with an shareholders. This covers issues such as the • Our relationship with trade unions the difference in pay between men and women independent chairman. composition of the Board, remuneration and • The European Consultative Works Council and that equal work must go with equal value. guidelines for reporting on social, ethical and • Employee communications The trustees look after the assets of the pension In addition, the work of the Equal Opportunities environmental matters. • Call centres. fund, which are held separately from those of Commissions (EOC) and the Kingsmill Report on BT. The pension scheme funds can only be • The Hermes International Corporate Women, Employment and Pay in the UK have Employee survey used in accordance with its rules and for no Governance Principles apply to all publicly made a priority of the issue. other purpose. quoted companies in which Hermes’ clients We conduct a number of formal employee Equal Pay to Equal Value will remain high on the invest outside the UK. surveys. The most important of these is the UK The Annual Report of the BT Pension Scheme BT agenda and we believe we are making good annual Communications and Attitude Research includes a description of the appointment, Hermes exercises its voting rights at annual progress on the matter of equal pay. for Employees (CARE) survey, which provides an removal and responsibilities of the pension general meetings (AGMs) and extraordinary opportunity for all our people to express their fund trustees. general meetings (EGMs) and employs a views on a range of issues. Pension scheme dedicated corporate governance team that The BT Pension Scheme, now closed to new Corporate governance maintains a high level of contact with At the start of 2004, every BT employee in the entrants, is one of the largest funds in the UK, companies through correspondence and UK was given the opportunity to complete a Hermes’ corporate governance programme with assets of around £26 billion. The scheme meetings. This is particularly the case where CARE survey during the working day. Anonymity is founded on a belief that companies with has over 87,000 contributing members, persistent failure to meet the Hermes corporate was guaranteed and 80% of our people interested and involved shareholders are about 178,000 pensioners and around governance policy results in under-performance. completed the survey (up 2% on 2002). more likely to achieve superior long-term 96,000 deferred beneficiaries. Most of our financial performance. employees have chosen to belong to the Socially responsible investment People satisfaction index Hermes is considered a leader on issues of scheme and contribute 6% of their salary, In July 2000, a new Disclosure Regulation was A key indicator in the CARE survey is the People corporate governance and shareholder with BT paying the balance of costs (currently introduced under the UK 1995 Pensions Act Satisfaction Index, which indicates overall involvement. It has a track record of working 12.2% of salary) necessary to provide the stating that trustees of occupational pension satisfaction with working for BT. with company boards to ensure that companies promised level of benefits. funds must declare in their statement of are run by managers and directors in the best The People Satisfaction Index for the 2004 The BT Pension Scheme is a defined benefit investment principles “the extent (if at all) to long-term interests of shareholders. financial year was 71%, up from 67% in 2003 which social, environmental or ethical scheme, with the pension benefits linked to the and exceeding our target of 69%. members’ final salary in BT (rather than to the For example, the BT Pension Scheme was considerations are taken into account in the
QUA QU A E R L I E R L I See the Data and targets section of our online T T awarded the 2003 Best European Corporate T T Y Y selection, retention and realisation of investments”. S performance of the pension fund). The normal S I I G A G A E S E S
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Employee engagement index We maintain a good working relationship with BTECC is chaired by BT’s CEO and attended The findings of the meetings are being shared both unions. by other senior executives. Employee with an increasing number of people. During the 2005 financial year we will be representatives are drawn from BT’s operations We seek to ensure that the proposed solutions introducing an Employee Engagement Index, Managers are expected to consult their across Europe. Participants are chosen are considered by the appropriate part of to reflect our commitment to keep people employees and relevant trade union officials according to the practice and legislation in place the organisation. engaged with their colleagues, work and before introducing significant employment in each country. The representatives chosen customers. In particular there will be a greater change. The unions have a good ten-year track In October 2003, 33 meetings based on the must reflect BT’s equal opportunities policies. emphasis on employee behaviour in accordance record of co-operation with BT. Very few days SAM model were held in specific parts of the with BT’s new values and engagement with the have been lost through industrial action. Representatives serve on the Council for two UK business, with 287 people participating. BT strategy. years, long enough to follow up and understand The feedback is being used to shape strategic In the 2004 financial year, no industrial action the issues. direction. We hope to organise similar meetings The results will be published before the end was taken. There were no cases of legal action in other parts of the business. of 2004. against BT concerning anti-union practices. BTECC meets twice a year – normally within three months of the announcement of the We have a grievance procedure that provides all Communication channels Follow-up action group’s annual results. In exceptional employees with an appeal process against circumstances, the Chairman may convene an We communicate with our employees regularly All managers with teams of eight or more certain management decisions. This is available extraordinary meeting. through a variety of channels: people receive individual CARE feedback to all our employees. reports. This helps them monitor the impact • The BT intranet, one of the largest in Europe, In the financial year 2004, the number of Employee communications of their decisions and review their is available to over 100,000 people. It Employment Tribunal Cases involving BT was management style. Our people are crucially important to our contains a wealth of information on a vast down to 50 from 57, with 15 withdrawn, reputation and success. They are our range of topics. With an extensive index and Managers are encouraged to work with their 1 judged against BT, 13 settled and 21 judged ambassadors and our public face while on search capability, it is easily accessible. teams to analyse the CARE feedback and carry in favour of BT. The outcome of each case is business and out of hours too. out action plans. These plans are monitored analysed by the management team concerned, • BT Today, our in-house newspaper, is sent to through the normal line management structure. and learning points are reviewed within the We strive to keep our people informed of more than 184,000 employees, pensioners appropriate policy group. company activities. This is essential if we want and opinion formers each month. Described We often carry out smaller-scale surveys or run to keep everyone motivated and supportive of as ‘the glue that holds BT together’ it helps focus groups to find out our employees’ See the Data and targets section of our online BT. Equally, we strive to listen to and act on our make sense of what’s going on in the attitudes towards specific circumstances. report for employment tribunal case data people’s views and ideas. company for employees and their families. since 1999. Trade unions The paper contains a letters page where our BT European Consultative Strategy Action Meetings people can express their views. In the UK, BT recognises two trade unions: The Strategy Action Meetings (SAMs) aim to • Newsdesk, the BT Today intranet news site, is the Communications Workers Union (CWU), (Works) Council communicate BT’s strategy and engage available to everyone in BT who has intranet which represents over 65,000 BT people in Every six months the European Consultative employees in strategy implementation. At each access. It is updated every day and features a non-management grades and Connect, which Council (BTECC) provides an opportunity for meeting, a BT manager describes the strategy constant flow of news about BT and our represents around 20,000 BT people, transnational dialogue and exchange of views and progress made. Delegates– 18 to 20 people industry. It contains information to help predominantly line managers and professionals. between management and employee representing all levels and lines of business– are people do their jobs. The site covers all media representatives in the UK and Europe. The CWU is the biggest union for the asked to discuss the potential barriers to releases, comment and features about BT. communications industry in the UK, with around We believe that the interests of our business – implementation and make suggestions. In the • Talking Point – part of the BT Today Newsdesk 280,000 members working for the Post Office, and all those involved in it – are best served if financial year 2004, 22 meetings were held in – offers a forum for employee opinion, BT and other telephone companies, cable TV, there is a common understanding of our the UK and nearly 240 people from all levels in feedback and debate on a wide range of the Alliance & Leicester and Girobank. Their performance, operating environment and BT participated. important topics, such as work-life balance, members’ expertise includes engineering, market places. Comments are noted anonymously and collated driving safety and broadband. computing, clerical, mechanical, driving, retail, The BTECC focuses principally on the every three months for our CEO Ben Verwaayen financial and manual skills. • BT Newsline, a telephone news service, performance and overall strategy of the BT and the BT Management Council. attracts thousands of calls a month. Connect is a specialist union run for and by group, on jobs and employment plans, and on R QUA L R QU A L T E I T T E I T Topic-specific reports are also produced for the Y Y I S I S G A G A E S managerial and professional people. E S We also provide webcast, video, audio and R S the commercial and regulatory factors affecting R S
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BT Social and Environmental report | Employees 4 Employees continued
To keep our employees informed of key India SustainAbility conclude that, on balance, It does not include employees in our subsidiaries announcements, we use a number of offshoring’s benefits outweigh its negative – 4,200 of our overall workforce of 99,900. Two of the new call centres are located in additional channels: impacts. However, SustainAbility do put forward Bangalore and New Delhi in India. some important reservations concerning the Enterprise email, an email facility we operate to Senior All BT The Delhi and Bangalore call centres way that offshoring is handled and it is here that make key announcements to all of our employed around 800 people by the end of corporate social responsibility has an important Financial year 2003 2004 2003 2004 employees or to a selection March 2004, with capacity available to increase part to play. Women 20.0% 21.0% 23.6% 22.7% • A number of internal marketing to around 2,200. SustainAbility propose practical things that communications media to deliver key Ethnic minority 7.0% 7.6% 8.6% 8.9% Owned by two suppliers but managed by BT companies can do to assist those in the UK who messages to targeted audiences. people, the call centres handle parts of BT’s lose jobs to manage their transition – in terms Disability 0.7% 0.7% 2.0% 2.1% directories and conferencing work and operate of training, skills and local job development. Call centres to the same blueprint as facilities in the UK. See the Data and targets section of our online SustainAbility also put forward critical We have completed a comprehensive two-year This is aligned with the ‘Next Generation report for comprehensive data on diversity improvements that offshoring companies can restructuring of our call centre operations. Contact Centre’ programme which seeks to going back to 2001. introduce in the new areas of operations – such ensure that our customers’ experience of us is Our ‘Next Generation Contact Centre’ as good working conditions, training and This means that we have achieved our target indistinguishable high quality irrespective of programme has transformed our original 104 development and sharing skills and technology. that at least 8% of our employees should be which centre or advisor they deal with. call centre sites into a slimmed-down network of from an ethnic minority. Attaining our target We agree with the thrust of these conclusions. larger, multi-functional contact centres. However, it has been suggested in the media for the representation of women employees For us, CSR is about companies making that there is an incompatibility between these is proving more difficult – the figures show The programme was designed to achieve the effective commercial decisions in ways that take developments and BT’s stance on corporate that retention rather than recruitment is the twin goals of reducing costs and providing account of their responsibility to society. social responsibility (CSR). main barrier. improved customer service – for example, by In this case, our ethical trading manager visited providing a range of services for residential and Developments in technology have always These targets should not be taken to mean the call centres with an independent assessor small business customers without their being changed working patterns – both in type of that BT is operating quotas, which are illegal from an Indian non-governmental organisation transferred from one call centre to the next. work and geography of the workplace. The under UK law. Each appointment is made on before the announcement was made. question is whether the movement of merit only. The 33 Next Generation Contact Centre sites employment opportunities is in itself a socially The assessors looked at all aspects of working benefit from excellent working environments Here we describe our approach to the main irresponsible activity. conditions against BT’s Sourcing with Human and leading-edge technology. equality and diversity issues: Dignity ethical trading standard and concluded Many developing countries will often argue the However, the programme has involved the that the companies assessed met and exceeded • Equal Opportunities policy opposite, accusing the developed world of using closure of 57 call centres over a two-year BT’s standards in the vast majority of areas. • Leadership social and environmental performance for period, resulting in significant changes for a • Ethnic minorities protectionist reasons. Pay for those employed in the call centres is in large number of employees. • People with disabilities the top quartile of the local labour market. The To address these issues we commissioned • Age The overall net effect on BT and agency jobs has working environment, training and technology independent consultancy and think-tank • Women been a reduction of 2,200 full-time equivalent are of the same standard as those in the UK. SustainAbility to explore service sector • Networks posts – reducing the number of full-time offshoring through the lens of corporate social None of BT’s permanent employees in the UK • Litigation. equivalent posts in BT’s call centre operations responsibility. has been made redundant as a result of the new to around 13,600. centres opening. Equal Opportunities policy Included in Good Migrations?, one of our There were no compulsory redundancies and we ‘Hot Topics': Our Statement of Business Practice includes a remain committed to finding alternative work Diversity and inclusivity specific principle on diversity: we will “treat all for every affected person that wishes to remain • An examination of the global trend of We seek to create an open, honest and individuals fairly and impartially, without prejudice, in BT. By the end of March 2004, more than offshoring and evaluation of its implications unprejudiced workplace that encourages people and never tolerate harassment in any form”. 900 people had been redeployed to other roles for CSR to reach their full potential. in BT and over 1,000 left BT voluntarily. In This principle is supported by our Equal • A study of the specific impacts of BT’s Opportunities policy: R QUA L addition around 1,900 employees have been re- R QU A L We want to create and sustain a diverse T E I T T E I T Y Y I S I S G A offshoring decisions, both in the UK and G A E S E S
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BT Social and Environmental report | Employees 5 Employees continued
qualifications and suitability for the work. We harassment or have been discriminated New Equalities Legislation Declaration of ethnicity is restricted in some will need to keep to, and go beyond, equal against, you should make your complaint in countries where BT operates. BT Global Services In December 2003, new legislation was opportunities legislation. line with our grievance procedure. has committed to take steps to ensure that, introduced in the UK to cover religion and wherever legally possible, BT people are able to We have designed this policy to make sure belief, and sexual orientation. declare their ethnicity and national origin. that no job applicant or employee receives less Leadership BT set up and chairs the Employers Forum on favourable treatment because of their race, sex, BT’s equality and diversity champion in the UK One of the key initiatives supporting this is the Belief, which brings together leading employers religion/belief, disability, marital status, age, is Clive Ansell, Group Strategy Director, who Ethnic Minority Network for BT employees. The to exchange and develop knowledge and best sexual orientation, gender identity, gender chairs our Global Equality and Diversity Forum. programme includes an annual conference, practice in this field. We reviewed our policy and expression or caring responsibilities, or is development courses, and participation in the The forum is composed of Diversity Champions, its implementation to ensure that religion and disadvantaged by conditions or requirements national debate on diversity. senior managers from each of our business belief issues are incorporated. An online booklet which cannot be shown to be justifiable. units. Senior managers also lead specific was produced outlining the major religions of Additional initiatives are taken in higher It is our policy to develop and maintain positive groups, including race, gender, age, disability the world. It also includes personal accounts of education. The Oxford Access Summer measures so we recruit, develop and hold on to and sexual orientation. employees who follow a particular religion. Science School, for example, encourages people with disabilities, keep to the law and students from inner city schools and ethnic The Forum has five main functions: BT has already made known its commitment to encourage best practice. minorities to seek university entrance, equal rights for the Lesbian, Gay, Bi-sexual and • To create, sustain and deliver our global particularly in science subjects. Transgender (LGBT) community and set up BT Our guiding principles: equality and diversity strategy Kaleidoscope network in 2002 (see Networks). Benchmarking • Equal opportunities and diversity cover all • To provide highly visible and inspirational No policy amendments were required to meet aspects of working life. The understanding leadership on equality and diversity the needs of the new legislation. We take part in independent benchmarking of and views of people on related issues are • To promote processes, practices and ethnic minority issues. In the 2004 financial shown through their behaviour. behaviours that actively drive equality and Ethnic minorities year, Race for Opportunity (RFO) awarded us Gold Standard for our approach to ethnic • You must not discriminate against any person diversity in the BT group, relentlessly Here we look at our ethnic minority minority issues. In 2003 BT ranked third overall or group when recruiting, choosing, training, opposing inequality, prejudice and unethical representation and the measures taken to and was the top-ranking organisation in the ICT promoting or paying people. behaviour improve. sector in the UK. • Harassment is also a type of discrimination, • To agree and implement equality and diversity Profile Race for Opportunity benchmarking 2003 and we will treat it as such under the terms of initiatives across the BT group and within (ethnic minorities) – BT results this policy. We will not tolerate any type of individual lines of business Among BT people, 8.9% have declared harassment or bullying, including offensive • To be spontaneous, open, honest, themselves to be of ethnic minority origin. Ninety-nine member organisations from the remarks, at work. challenging, forward-looking and change- This represents 8.7% of non-managers, 9.4% of public and private sector took part in the managers and 7.6% of senior managers. RFO benchmarking. We achieved top • We will encourage you to tell us about any embracing role models for equality and performance in our sector (Information disability you may have and your ethnic diversity in business. In the 2004 financial year, 15.3% of our new Technology) and came top of all private sector background. recruits came from an ethnic minority We are also members of the following organisations taking part. background – including 27.3% of new graduates • We will take positive measures (which are organisations in the UK: and 11.5% of modern apprentices. allowed by legislation for suitably qualified • Business in the Community [www.bitc.org.uk] people) so that we recruit and employ any These rising figures are the consequence of under-represented minority group, for • Employers Forum on Disability continuing collaboration with employment example, the Government’s Two Ticks Policy [www.employers-forum.co.uk] agencies, universities, schools and college for registered disabled people. • Opportunity Now careers offices. We have achieved our target that 8% of our employees will be from an ethnic • We will follow the Disability Discrimination [www.opportunitynow.org.uk] minority background, and are committed to Act and will make reasonable adjustments for • Race for Opportunity maintaining this level. people with disabilities. If you become [www.raceforopportunity.org.uk] disabled while working for us, we will do See the Data and targets section of our online R QUA L R QU A L T E I T T E I T Y Y I S • Employers for Work-Life Balance I S G A G A E S everything possible to make sure you can E S report for comprehensive data till 2001. R S R S
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BT Social and Environmental report | Employees 6 Employees continued
BT score Sector Network Profile AccessAbility Roadshows most productive and comfortable equipment Category % average % average % available as soon as they join the company. 2.1% of BT people have declared themselves to A number of AccessAbility Roadshows were Leadership 92 48 56 have a disability. This represents 2.5 % of non- organised in the UK during the 2004 financial Existing BT people benefit from easier access managers, 1.2% of managers and 0.7% of Making the year, with more planned for 2005. They are to expert assessment and advice, and earlier senior managers. investment 89 35 44 hosted by the Able2 network and provide a provision of appropriate reasonable In the 2004 financial year, 0.2% of our new forum for discussion between BT employees adjustments to their working environment. Planning recruits had a disability as defined by the with disabilities and their managers. People in the community also have access to and policy 95 54 67 expert assessments and advice. UK Disability Discrimination Act (DDA) – The roadshows promote ability, not disability, Communication 94 44 58 including 1.1% of new graduates and 0.6% challenge stereotypes and focus on of modern apprentices. Back-Up Marketing 91 51 54 possibilities and ways to break down barriers Our target is for 2.5% of our employees to be faced at work by people with disabilities. In the 2004 financial year, we worked in Sharing people with a disability. partnership with the Spinal Injuries Ownership 92 31 48 eNable Association, Back-Up. BT sponsored sports which received UK Government funding to Employment 85 44 58 Initiatives Our ‘eNable’ project is designed to improve help promote greater integration and the working life of all disabled people within Community The European Year of People with Disabilities independence for people with spinal injuries. Involvement 92 51 59 was 2003. In March 2003, we hosted an BT. The objective is to provide guidance and consistency of approach and deliver timely In collaboration with the Association, BT Retail Working with event called Agile Business – Changing Lives, examining the inclusion of disabled people reasonable adjustments to help realise the full Marketing produced a booklet that promotes ethnic minority potential of all people. It is a key part of the the benefits of broadband and how it can businesses 91 32 32 in product advertising and marketing, and in the workplace. BT’s approach to Valuing Ability. eNable improve the lives of disabled people, Results/ Impact 91 51 56 provides a package of existing and new particularly those with spinal injuries. In November 2003, we organised a special services, consultancy and dedicated specialist Overall event, Agile Business – A Glimpse of the Future, support which includes: Age performance 92 44 54 to help shape a vision of a world where our products, services and work environment are • A helpline to provide expert advice and Age discrimination is unique in that it may BT received a Gold Standard for our overall truly inclusive. assistance to people who are, or become, affect everyone in society, old and young. average score. disabled, or whose capabilities are restricted We are a founder member of the UK’s In the UK we have worked with the Employers Platinum standard indicates a score of 95-100, Employers’ Forum on Disability. In the 2004 • Guidance on job re-design, suitable Forum on Age for a number of years and have Gold indicates a score of 80-94, Silver 70-80 financial year, BT was ranked top UK alternative duties and provision of contributed to the Government’s Age Advisory and Bronze 60-70. organisation in the Forum Global Inclusion equipment and services Group, which is developing legislation on age discrimination. Benchmark. This assesses how companies • Improved advice to managers on their People with disabilities communicate their commitment to disabled responsibilities under the UK Disability As part of a broad review of our policies and A significant number of people in our society people through their social reports. It does not Discrimination Act procedures in relation to age diversity, we have disabilities. As part of our policy to evaluate how the companies actually perform in undertook a survey to find out the views of • Support to new recruits with disabilities so ensure we meet the needs of all our each area. our people on policies on retirement and the they have a good experience on joining BT customers, BT encourages applications from new legislation, changing demographics and Another initiative is Able2, an employee and feel valued and supported. people with disabilities and supports their network for BT people with disabilities. This changing needs of people and the business. professional development. provides impartial and confidential advice and Partnerships At the end of the 2004 financial year, of the BT qualifies as a ‘two ticks’ disability employer. runs a series of roadshows to enable people to 99,900 people working for BT, 5,200 were AbilityNet This is a label used by UK employers to indicate discuss their needs with senior BT managers. over the age of 55. a commitment to disabled potential employees A key issue for people with disabilities is their We are committed to make our workplace as and customers. This means that BT guarantees loss of state benefits when working. We are accessible as possible. BT supports AbilityNet, Women a job interview to any suitably qualified based in one of our central London buildings. seeking to address this problem through a trial We believe that diversity is the lifeblood of our R QUA L R QU A L T E I T T E I T S Y S Y The charity brings the benefits of computer I applicant who has a disability. I G A G A E S recruitment of people with no loss of benefits. E S
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about Domestic Violence. We were pleased to Retention of women Pay structures In the 2004 financial year, the Events work with Women’s Aid and the UK Department Programme held events in the North and Retaining the skills and experience of women is In addition to pay equality, concern remains of Trade and Industry to help design, produce South of the UK and sought to ensure that important. In the 2003 financial year we that women are more likely to be employed in and host the launch of the Employers Guide to as many ethnic minorities as possible were undertook a comprehensive review of our lower-paid jobs. We must address the barriers Domestic Violence. able to attend. maternity package, benchmarking it against that prevent women from undertaking higher- other companies. The review led to important value roles. The workshops are designed to work on Profile changes, including: interpersonal and management skills. While we believe it is critical to keep data-based 22.7% of people who work for BT are women – BT greatly benefits from these workshops as • A new maternity leave package gender targets and diversity policies, inclusivity 22% of non-managers, 23% of managers and they encourage ethnic minorities to realise their must be part of all our activities, including our 21% of senior managers. • Promotion of flexible working, to address the full potential. In addition, it also helps BT in its relationships with employees, suppliers, difficulties often experienced by families with commitment to increase the representation of In the 2004 financial year, 32.8% of our new customers and investors. very young children. ethnic minorities in senior management. recruits were women – including 42.2% of new Most of our graduate and skilled recruits are graduates and 11.5% of modern apprentices. Our maternity package provides 18 weeks’ basic needed by our expanding IT, multi-media and e- pay and regular allowances (excluding overtime) BT Women’s Network (BTWN) The number of women in BT is declining– down commerce units. It remains a major concern followed by eight weeks at half pay, lower rate BTWN encourages self-development through from 23.6% in the 2003 financial year–and that we are not attracting more females to this Statutory Maternity Pay or £100 per week sharing experience, information and advice. It below our 25% target. The figures show that fiercely competitive and well-paid job market. (whichever is the greater), followed by 26 weeks has communicated ideas to management. retention rather than recruitment is the main The general shortage of people with ICT skills at £100 per week. barrier to achieving our objective. presents an opportunity to attract more women. BTWN was started in 1986 by a small group of One of our key initiatives is the Women’s BT women who attended the Cranfield School of See the Data and targets section of our online Network for BT employees. Networks Management Programme in the UK. report for comprehensive data from 2001. We have six employee networks to support and At the time, the group felt a BT internal network Our data do not include those people who work Progression of Women advise our employees worldwide. The use of the dedicated to women would bring significant in our subsidiaries, approximately 4,200 of our In the 2004 financial year, the issue of networks is promoted by BT’s most senior added benefits. The BTWN was created with the total workforce of 99,900. boardroom diversity became more prominent. management and provides: aim of increasing women’s sense of involvement within BT, and encouraging them to develop Benchmarking The Tyson Report, commissioned by the UK • Mentoring programmes career potential to the benefit of the individual Government, presented a number of • Development programmes In the 2004 financial year, we took part in an and BT. recommendations to promote greater diversity • Annual conferences independent benchmarking on gender issues in on UK Boards. • Information websites The network has nearly 4,000 members and organisations: The UK Department of Trade and Industry held • Regular roadshows many non-members regularly attend BTWN • A conduit to senior managers meetings and events. It is run by volunteers, Opportunity Now benchmarking 2003/4 a series of meetings with senior executives of major businesses to discuss boardroom • Contributions to the national and funded and fully backed by BT. (gender) – BT results international debate. diversity. In December 2003, BT Chairman Sir Members are kept informed through the 219 organisations from the public and Christopher Bland hosted a breakfast meeting newsletter, hersay and the BTWN website. private sector took part in the Opportunity for the Minister for Women, Jacqui Smith, and Able2 for employees with disabilities Now benchmarking exercise. BT’s sector senior executives from a number of companies Able2 seeks to portray a positive image of BT Women’s Executive Network classification was Information and that work with BT. disability by working with all stakeholders. The The BT Women’s Executive Network was set up Communication. network is a central point of contact for advice The BT Women’s Executive Network was in 2003 to increase the proportion of women in and support to all disabled employees within BT. Sector norm BT score Standard launched by Sir Christopher Bland. He senior level management. The network’s aims welcomed the creation of the network as are to: Motivate 97 96 Platinum a useful forum to share experiences, views BT Ethnic Minority Network (EMN) • Support members to achieve their maximum and ideas. EMN provides support and development for Act 96 96 Platinum potential ethnic minority people within BT, through a Impact 76 98 Platinum The BT Executive Assistants/Personal Assistants’ QUA QU A E R L E R L Drive change within BT on executive gender I I • T T T T variety of internal and external activities. Y Y I S I S G A Network (BT EA/PA) was launched in the 2004 G A E S E S
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The Action Plan includes: Litigation Principles & commitment group or individual involved) so we can make the best use of the talent across BT. • Tackling the barriers to women’s There were a total of 14 discrimination-related We have made the following commitment career progression litigation cases involving BT in the 2004 to promote learning and development for 9. Make the best use of learning and financial year. Four were withdrawn, 0 judged development suppliers so we can get the • Increasing the visibility of role models and our people: against BT, 6 settled and 4 judged in favour of best commercial value possible across BT. mentors, to support and encourage women to We will set up a partnership with each individual BT. There were 14 cases involving BT in the progress through BT who makes the most of their personal 10. Evaluate our investment in learning and 2003 financial year, 30 in the 2002 financial performance, commitment and prospects for development at all levels of the business. • Designing a programme of events with year and 43 in the 2001 financial year. internal and external speakers to promote the employment. We will give our people the See the Data and targets section of our online Executive Network appropriate opportunities to develop business report for data relating to discrimination-related capabilities and will evaluate how effective our • Providing networking and support litigation since 1999. investment is. Career development There are many opportunities for promotion BT Executive Assistants/ Learning from discrimination cases We will do the following: within BT. We have established a centralised Personal Assistant Network Every discrimination litigation case is one 1. Give our managers the necessary resources application system and an online Job This network was created during the 2004 too many. and personal development to enable them News facility. financial year. It aims to demonstrate the value We carefully consider our own cases at to support their people’s learning and To develop their career in BT, employees take that personal assistants at all levels add to the practitioner and senior management levels. We development. on challenging tasks in daily activities and can business while raising their profile as a distinct also review developments in discrimination law 2. Give our employees ongoing information on participate in ‘buddying’, mentoring, job professional group within BT. It is chaired by the as it emerges. the skills and behaviour which we believe shadowing and secondments. personal assistant to the Chairman. We ensure that our case management continues are essential to future success and how Initiatives such as the UK Management Insight The network helps its members develop a broad to be robust and, at the same time, that our these can be developed. programme enable team members to assess range of skills, enabling them to take on more educational inputs address any issues that arise. 3. Analyse needs at a business level and an their skills and develop plans for the future. advanced work while also increasing the overall individual level to see what development is effectiveness of our management teams. For example, real-life case studies based on BT Regular monthly meetings and annual experience are used by our Diversity Coach appropriate and to assess the value to our development reviews help employees and business. BT Kaleidoscope trainers in training workshops across our their managers communicate directly on business where applicable. 4. Give our employees opportunities to career development. BT Kaleidoscope is a network for our gay, develop their capabilities and prospects for In the UK, our NewStart initiative provides lesbian, bisexual and transgender employees. Learning & development employment so they can deal confidently a comprehensive toolkit to enable our About 7% of the UK population is lesbian, gay, We seek to encourage and provide with organisational and commercial change. employees to plan and address career bisexual or transgender. Launched in 2002, opportunities for personal growth and 5. Offer a broad range of solutions including changes constructively. the network offers community support to its professional development. work-based activity, formal and informal membership and provides BT with insight learning, encouraging the use of group-wide Investors in People and knowledge about a potentially Here we present our approach to learning and learning solutions through the BT Academy significant market. development: During the 2003 financial year, BT successfully and taking account of individual achieved re-accreditation as an Investor in BT Kaleidoscope held its first annual conference • Principles and commitment learning styles. People (IiP). IiP is a standard of good practice during the 2004 financial year. • Career development for training and development devised by UK • Investors in people 6. Provide an appropriate induction BT sponsored the London Pride in the Park leading business and employee organisations. • Education programme for all new employees and those festival in August 2003, as well as regional We remain one of the largest companies to pass • Career-life plan. who are changing jobs to make sure they Mardi Gras events. can be effective in their new work as soon as this challenging outcomes-based test. possible. The Assessment Network (TAN) evaluated about 7. Provide a range of support and information 600 BT people from across all lines of business
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• A striking improvement between this and the work and at residential schools run at CWU Health & safety • Occupational road risk management previous reassessment, in the alignment of Education centres. One of our business principles is to care • Our partnership with the BT Unions on strategic goals and targets to measurable The BT Masters programme provides work- for the health and safety of people across all improving safety. activities undertaken by individuals and based development for BT people, leading BT’s operations and products. We have made groups. Considering the degree of strategic to a Master of Science (MSc) degree in a specific commitment to promoting a Guiding principles change, the complex activities of BT, the telecommunications after healthy lifestyle by providing a health and geographical spread and the flexible working wellbeing programme. BT’s Health and Safety Guiding conditions, acknowledged as ‘an extraordinary 20 months of part-time study. We support, accomplishment’ through the use of technology, studying for This is why we made our Significant Incident Principles professional qualifications from bodies such as Rate a non-financial key performance indicator, • Webchats and webcasts direct from the the Chartered Institute of Management with a strategic target of a 25% reduction in This policy acknowledges the commercial most senior managers to all levels of Accountants (CIMA). incidents by March 2005. The indicator records advantages and the humanitarian necessity the organisation The BT Academy helps people acquire skills incidences of injuries, diseases and danger of robust and effective health and safety • Knowledge-gathering exercises such as our useful to their job. It also helps them take occurrences. It is a good measure of our success performance. annual employee survey, Strategic Action in promoting health and safety. advantage of future career opportunities Health and safety performance is a key indicator Meetings and ‘Back to the Floor’ initiative in an industry where the skills required We reached the target two years early and at of our success in managing the business. • Performance-management process including change rapidly. that point doubled the reduction to be achieved Implementing the policy effectively will yield one-to-ones, annual development and We believe that people at the start of their by the 2005. We have done the same for our financial and social benefits which will performance reviews and management careers will increasingly want to work in targets on reduction in sick absence due to contribute to our vision of being the most by objectives companies that commit to the long-term workplace accidents (down 33% since 2001) and successful worldwide communications group. reduction in occupational ill health cases (down • Depth and breadth of technical training development of their employees. 36% since 2001). Achieving the aims of the policy will be the • Well-established culture of training Career-life plan The revised targets are challenging. We will responsibility of line management. and development. We are committed to creating an environment seek to achieve them by ensuring a The Group Chief Executive accepts overall Education where change can be anticipated and dealt commitment to zero avoidable accidents responsibility for Safety Performance within BT. with constructively. throughout the company. We continue to focus The Chief Executive Officer of each line of BT Academy is a web-based corporate learning on a number of major health and safety risks: business will be responsible for safety We use two main tools to implement our long- portal that provides BT UK employees with performance within their sphere of control. standing policy of expanding our people’s skills • Driving an extensive range of learning programmes Implementation of the policy will be carried out and capabilities: New Start and Achieve the and facilities. • Fire and incidents on BT property by line managers. Balance initiatives. More than 70% of our people have accessed • International travel health the BT Academy Learning System in the 2004 NewStart enables employees to consider Everyone within BT must contribute and feel • Call centre health financial year, leading to over 415,000 and plan ahead for their career. It provides a able to contribute if we are to succeed. transactions for courses. comprehensive toolkit and the framework • Injuries while working on the network Everyone within BT has a responsibility to necessary to help employees and managers The Academy is a key part of our commitment • Work-related stress. ensure they take reasonable care of their own discuss these issues. to lifelong learning. It uses the latest technology These priorities illustrate the scope of our health and safety and the safety of others. It is NewStart offers a number of services: to deliver instructor-led and e-learning to all BT approach to health and safety: it is not just essential that managers and their people seek people via our intranet. BT Academy is one of • Professional career counselling about avoiding accidents– we consider it very to work in ways where safe behaviour is seen as the largest corporate learning management important to protect our employees’ physical normal and unsafe acts are not acceptable. No • One-to-one coaching systems in Europe. and mental health too. one will be disadvantaged as a result of raising health and safety concerns or adopting Accredited programmes leading to professional • Online advertised vacancies See the Data and targets section of our online reasonable safe practices. Mechanisms will be and post-graduate qualifications are available • On-the-job development through job report for health and safety performance data – established to ensure that all employees and through the Academy. For example, we have shadowing and agency secondments. on rate of absence, sick absence due to their representative bodies can fully contribute R QUA L R QU A L T E I T an internet-based Computer Science degree T E I T Y Y I S I S G A G A accidents and ill-health referrals. E S E S
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We will strive to achieve excellence in our and measuring its performance against the they lead balanced lives. Employee Assistance Programme. This includes standards set in the annual plan women with post-natal depression. health and safety performance wherever We do this through job design, resourcing we work. • Maintain a comprehensive inventory of (making sure jobs are done by people with the Formal support for people with work-related Internationally accepted best practice will be physical, chemical and psychosocial hazards right competences), training and development, or private problems is also offered through the and people management. We provide support Employee Assistance programme (EAP) – a adopted as a group-wide minimum level of • Carry out formal risk assessment and profiling to employees affected by stress caused by confidential service that is available online or performance. Assessments of risk will form an of all hazards within the inventory, and ensure pressure in their private lives. via the 24-hour helpline. Line Managers can get integral part of the operational management that a system is in place to implement support from the Employee Assistant process. Risks will be reduced to a level which is competent task-based risk checks Our strategy is in three phases: primary, Management Team (EAM) – a confidential as low as is reasonably achievable. secondary and tertiary. • Put systems in place to ensure that managers, service available online or via the helpline. Competent specialist support and clear employees, contractors and customers receive Primary – Reducing stress at source through appropriate advice on relevant hazards that workplace and job design technical information will be readily available Occupational road risk management have not been eliminated and the potential to all who need it. We use a number of tools to identify, manage BT operates a fleet of about 32,600 vehicles in risks from them and, where possible, eliminate the causes of the UK. This means there is a significant risk of Appropriate levels of specialist support will be • Ensure risk awareness training and risk work-related stress. To do this, we provide our injuries to our people and the general public available to managers so that uncertainty about management systems are in place to employees and their managers with from road accidents. legal or technical aspects of health, safety and successfully implement risk control measures comprehensive guidance on the causes of stress welfare issues will not hinder performance. We are developing a groundbreaking approach and how to avoid problems, at the personal and Health and safety solutions will be developed by • Ensure that arrangements are in place for the to the management of occupational road risk. organisational level. those who work with the risks. Guidance on safe health surveillance of those identified by risk Drivers are individually assessed and the factors working practices will be presented in an easily assessment as requiring it We launched the Dealing with Stress internal contributing to higher risk of accident are website during the 2004 financial year. This understood style using a format accessible to • Arrange for sufficient competent support in identified. Drivers are then offered tailored includes BT’s stress management-related everyone who needs the information. the areas of safety, health and hygiene support to minimise those risks. In the 2004 resources and access to specialist teams. financial year, around 25,000 BT drivers took • Ensure compliance with the reporting We expect our partners and others who work Secondary – Identifying early signs of stress and part in our Starting Point programme. The requirements laid down by the BT health and with us to share our aspirations in the area of supporting individuals initiative was commended by the UK-based safety champion health and safety performance. national road safety charity, BRAKE. STREAM, BT’s Stress Assessment and • Ensure the safety champion has the The health and safety performance of Management tool, provides us with responsibility to undertake an adequate Working with our Partners in the BT Unions contractors will represent a key criterion used in organisational stress profiles and reports. It independent audit of the management of the selection process. Wherever contractors helps us identify work pressures that cause In the 2004 financial year, we made a new health and safety, commit to an action plan to seek to work for BT, their health and safety stress and recommends control measures that agreement with the Communication Workers deal with recommendations and have the policy and performance must equal or better the employees and their manager can use. STREAM Union and Connect on the role of safety completion of actions verified standards achieved within BT. also provides BT with essential (but anonymous) representatives. The agreement formalises the • Communicate health and safety strategy, management information on the mental arrangements for the training of safety planning and performance to all employees wellbeing of our employees. representatives and establishes a framework to and others involved, and involve them in the promote co-operation between BT managers Implementation Tertiary – Assisting established cases cope continuous improvement process. and the employee representative bodies. This and recover. These processes and structures support the partnership enables us to deal with health and implementation of our Health and Safety Work can play an important part in recovery safety issues in a non-political and non- Guiding Principles. from mental health problems. confrontational manner. This ultimately helps us Stress management improve the protection of our people. We consider it very important that managers Each of BT’s lines of business will: We are committed to help BT people recognise and colleagues keep in touch with individuals and deal effectively with everyday pressure and • Appoint a health and safety champion who is during stress-related absences because it work-related stress. a direct report of the line of business CEO . helps minimise the problems of isolation and
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• with objectives, targets and responsibilities • In the 2004 financial year, as part of BT’s Total A A A1000 AS People feel stressed when they cannot cope with A1000 AS Health Management (THM), we introduced a Information and • Prepare an annual health and safety report pressure in their lives – at work and at home. Information and Offices worldwide new initiative. Absence Case Advisors send data on this page demonstrating the work done towards We are committed to ensure that unreasonable data on this page © British Telecommunications plc 2004 has been verified has been verified letters of support to people who are absent with Registered office: 81 Newgate Street, London EC1A 7AJ meeting its health and safety commitment demands are not made on our people and that Registered in England No. 1800000 by Lloyd’s Register by Lloyd’s Register a stress-related illness on behalf of BT’s Quality Assurance Ltd. Quality Assurance Ltd. Design by Red Letter Design BT and the environment
BT Social and Environmental report BT and the environment
Telecommunications is perceived as an Our main environmental impacts in the UK are: Our Environmental Policy • Include environmental issues in discussions with the BT unions and in BT training environmentally friendly technology. • Benefits Our Environmental Policy establishes our targets programmes; encourage all BT people to But as one of the UK’s largest • Emissions to air in sustainable environmental improvement and implement sound environmental practices. companies – and biggest energy • Fuel, energy and water compels us to measure and monitor our consumers – we have an inevitable • Local impacts performance regularly. As a minimum, we will monitor progress and • Procurement publish details of our environmental impact on the environment. We communicate the Group’s environmental • Product stewardship performance in our Social and Environment objectives, action plans and achievements • Transport report, on an annual basis. because we want to help every BT person We have a duty to manage this and to • Waste report on our performance – as we have understand and implement the policy in their For more information, see our full We used to have a separate impact category daily work. Environmental Policy in the Environment section done since 1992. for environmental risk, to ensure that a special of our online report. effort was put into reducing the major risks Policy extract Here we explain: from fuel storage and hazardous telephone Environmental prosecutions BT is committed to preventing pollution and • Our Environment management system exchange materials. These risks have been minimised and we have integrated them into minimising the impact of its operations on the BT recognises that it has clear legal obligations • Our Environmental Policy the other categories. environment by means of a programme of for the management of its environmental continuous improvement. In particular BT and programmes. • Environmental prosecutions (none in Our decision to classify our environmental its wholly owned subsidiaries will: the 2004 financial year). impacts by category, each with an ‘owner’ During the 2004 financial year, there have been (rather than by location), has proved sound. • Meet all relevant legislative and other no environmental prosecutions in the UK. Environmental management Since 1999, BT has undergone radical structural requirements, and where appropriate exceed system (EMS) changes, but we have retained the ISO 14001 or supplement these by setting our own exacting standards Our experience shows that good environmental certification for all UK operations. management saves money and improves BT Openworld and BT Global Services are not • Seek to reduce consumption of materials in business efficiency. BT’s environmental currently certified. But we have completed an our operations, reuse rather than dispose of management system complies with ISO 14001, initial health, safety and environmental impact whenever possible, and promote recycling and an international standard for the certification of identification assessment of all our BT Global the use of recycled materials environmental management systems. These are Services’ operations. This has helped us develop • Design energy efficiency into new services, three of its key requirements: systems to collect environmental performance buildings and products and manage energy • The organisation shall identify and assess the data from our international operations so that wisely in all operations we can incrementally include them in our significance of the impact its activities can • Reduce wherever practicable the level of environmental reporting. have on the environment. These impacts are harmful emissions described as environmental aspects We are establishing an EMS that covers all BT • Market products that are safe to use, Global Services’ activities in every country of • Objectives and targets designed to reduce the make efficient use of resources, and use operation. We are running a pilot project in organisation’s environmental impact shall be resources that can be reused, recycled or Ireland (ESAT BT) to produce an EMS that is established and a programme for achieving disposed of safely these objectives and targets shall be in place effective, robust and transferable to all countries, cultures and activities. We are hoping • Work with our suppliers to minimise the • The company’s Environmental Policy must to integrate BT Openworld into the EMS early in impact of their operations on the environment contain a commitment to continuous the next financial year. through a quality purchasing policy improvement, prevention of pollution and compliance with relevant environmental Once our international EMS is in place, • Site our buildings, structures and operational legislation, regulations and other we will seek to obtain the ISO 14001 plant so that we minimise visual, noise and requirements. certification and/or registration with the Eco- other impacts on the local environment Management and Audit Scheme (EMAS), where QUA QU A E R L I E R L I • Support through our community programme T T T T Y Y I S I S G A ISO 14001 certification helps keep us focused G A E S appropriate. EMAS is an EU voluntary initiative E S R S R S
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BT Social and Environmental report | BT and the environment 1
Fuel, energy and water
We are one of the UK’s biggest energy electricity used by our offices. Total contractors help us jointly to maximise our Rooftop wind turbines consumption was 2,074GWh compared with environmental performance. In the financial users. Here we describe how we We support turbine specialist, Wind Dam, in its 2,106GWh in the 2003 financial year. We are year 2004, BT won a Liveable City award in the manage our fuel and energy use. development and deployment of rooftop vertical working hard to improve our network growth contribution to air quality and climate change wind turbines. This innovative system is not as forecasting and to accurately assess the impact category. The judges acknowledged BT’s This section covers: popular as traditional horizontal wind turbines of broadband on energy demand. commitment to lessen the impact of its that use propellers. The outer blades of the • Energy consumption operations on air quality, by reducing its carbon We are continuing to reduce our use of heating Wind Dam turbine follow the prevailing wind dioxide emissions worldwide. Our initiatives in • Energy initiatives fuel (gas and oil) with improvements shown and guide the energy towards the inner blades. this area include research on the use of urban • Energy benchmarking and surveys when the data is corrected to take into account It is discreet and ideal for use on rooftops. wind turbines, government lobbying on global weather conditions throughout the year. Gas • Energy management warming and moving to low emission and In the 2004 financial year, we made a strategic consumption continues to rise because of oil to renewable energy sources. alliance with Wind Dam, commissioning the • Premises energy (offices and buildings) gas heating conversions. company to build and test two 2.5kW turbines • Process energy (networks) in Cornwall, UK. Energy initiatives Renewable energy • Fuel tanks We are committed to meet and, where possible If successful, this turbine could be used in cities, Here are some of the ways we try to improve exceed, the UK Government’s sustainability where it would be less visible and noisy than • Water use. our energy efficiency. targets to buy renewable energy. We work with traditional wind propellers. our suppliers to increase capacity and we are Energy consumption Plant replacement investigating housing our own renewable Powering major UK sites from wind We continuously monitor energy consumption, We look at the whole life of our plant when we generation systems, such as wind turbines, Three large wind turbines, according to the using one of the UK’s largest computer-based assess its cost, including its energy efficiency, at suitable sites. Carbon Trust, would be sufficient to power one monitoring and targeting systems. This has which influences the cost of running the Using renewable energy has major of our large satellite communications sites in been significantly expanded, using data machinery. Buying more efficient equipment environmental benefits, including reductions in: the UK. We are in negotiations with the collected at half-hour intervals from over helps save energy and can reduce demand for authorities to install the turbines there and at a 6,000 sites. cooling, cutting the cost of the plant over its • Air emissions redundant radio transmission site in the UK whole life. Further cost savings can be made by Our investment in new electricity meters – • Greenhouse gas emissions, particularly West Country. replacing refrigerant-based cooling (air these monitor consumption every half-hour – CO2, SO2 and NOxs Both sites would become tourist attractions has helped us identity wastage earlier rather conditioning) with automated fresh-air cooling • Particulates that contribute to and provide an opportunity to demonstrate than relying on a monthly bill. systems (which also reduce the use of refrigerant gases, such as HCFCs and HFCs). breathing problems. the benefits of renewable energy while Energy consumption for BT’s network and celebrating the history of radio and satellite Taken together, the use of new green and low- estate during the financial year 2004 was Heating, ventilation and air conditioning communications. CO2 electricity delivers a reduction in CO2 2,624GWh. This is made up of: (HVAC) investment emissions of 187,000 tonnes a year compared Photovoltaics and biofuels • 1,711GWh electricity (approximately) to run We continue to improve our equipment. For with electricity generated from fossil fuels. our networks Using sunlight to power small telephone example, we are installing: In the 2004 financial year, we participated in a exchanges holds great promise but the cost of • 363GWh electricity (approximately) used at number of initiatives to promote the use of • Liquid pressure amplification (LPA) pumps in photovoltaics is prohibitively expensive. our office premises renewable energy. Special efforts were made to the air conditioning chillers of central Nevertheless, in the 2005 financial year we will develop new technologies using wind energy. • 550GWh (gas and oil use) for all our sites. refrigeration plants. This further improves investigate the feasibility of new systems, their efficiency and has cut costs by up to For data on emissions, see the Data and targets including those that combine the use of solar 32% a year The Carbon Trust partnership section of our online report. energy and wind. We created a partnership with the UK’s Carbon • Building management systems that We will also explore the use of fuels made from Trust to investigate the suitability of using BT Trends in energy use integrate heating and cooling, further plants (biofuels) to replace the diesel used in our buildings to house wind turbines for trials in the eliminating waste. emergency generators. Biofuels are considered Investment in energy management has enabled 2005 financial year. The Carbon Trust has listed R QUA L R QU A L T E I T T E I T to be carbon neutral because the plants store as Y Y I S I S A us to halt the increase in electricity A G G E S E S the 250 windiest sites, including microwave R S R S
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BT Social and Environmental report | BT and the environment 2 Fuel, energy and water continued
Energy benchmarking and surveys Energy management In the financial year 2004, premises energy A specialist company visited 1,391 sites, tested consumption decreased by 3.8%, compared 1,168 tanks, passed 714 (61%) and provided Our contracted facilities management team Our energy management programme helps us with the previous year. In the same period, detailed recommendations for remedial action. continues to conduct energy surveys at poorly maintain our: degree-day corrected heating energy was down Over 324 remedial sites were identified, 157 of performing sites, to minimise energy and • Energy efficiency accreditation (with the UK by 1.3%, the equivalent of 3,428KWh per which resulted in the decommissioning of the water consumption. Web-based electricity National Energy Foundation) degree-day. Average degree-days for the year existing tank and replacement with a new reports, updated every half-hour, have were 0.18% higher than in the previous year. internal tank. The remainder required either helped our building facilities supplier to focus • Fuel storage tank environmental testing and pipe-work repairs or other minor works. The further on waste. This has been supported by remedial works programme For more, see the Data and targets section of testing programme has also identified 91 tanks energy surveys from BT within our network our online report. • ISO 14001 certification. that no longer pose a risk to the environment. buildings, and surveys carried out by specialist consultants as part of the government A key objective has been to consolidate our Process energy energy management and plant replacement Incident reporting Actionenergy programme. Process energy includes all the electricity strategy, and build on the delivery mechanisms Even with good controls, spills happen. To to power more than 6,300 transmission within our supply chain in property, facilities reduce the number and severity of these Home working stations, satellite earth stations and telephone management and energy supply. incidents, it is important that they are BT continued its home-working programme. exchanges that support our voice, data and investigated promptly, lessons are learned and This enables many of our people to travel less Throughout the financial year 2004, we internet networks. continued to invest in energy efficiency and any changes are made quickly. BT classifies and allows us to close some of our older, less We generate electricity on site using our own embedding it in our business. This integrated environmental incidents as: efficient offices. generators. This is done to provide extra approach makes it more difficult to isolate the • Serious – where the spill has entered, or is electricity at peak times and during supply cost savings we make through energy likely to enter, either the drainage system or Contract and supply strategy failures. In the financial year 2004, we efficiency initiatives. topsoil Like many UK organisations, we have found generated 21GWh of electricity. Our most significant achievement in the • Significant – where the spill covers a wide that imprecise electricity bills have hampered We still expect to see an increase in the financial year 2004 was the continued roll-out of area but is confined to a hard standing area our energy efficiency programmes because demand for energy to power our fast-expanding half-hour metering, now installed at over 6,000 only and there is no evidence of entry into the poor data makes it difficult to judge progress. networks but are working hard to improve sites. This means 95% of all our electrical drainage system or topsoil We are tackling this problem at a supplier, our network growth forecasting and to energy is remotely metered every half hour, industry and regulatory level and have seen a accurately assess the impact of broadband • Local – where a minor spill is contained within which allows us to identify and eliminate waste slow improvement. on energy demand. a very small area. energy more effectively. We no longer have to Eliminating waste rely on imprecise billing. For significant and serious incidents, a specialist Fuel tanks contractor cleans up. In addition, our energy management team is Energy targets help us to cut waste. They cover: We have several thousand fuel storage tanks, still working effectively in partnership with the For serious incidents in the UK, the Environment many below ground. The fuel is used for heating • Purchase of green/renewable energy owners of the BT estate. This will help us speed Agency (EA) or the Scottish Environment and to supply standby diesel generators used to • Process energy (networks) up our energy efficiency improvements. Protection Agency (SEPA) are also informed. • Premises energy (offices and buildings) power the network during a power failure. If See the Data and targets section of our spilled, the fuel poses a threat to drinking water • Metered water use Investigation process • Bio-fuel investigation. online report. supplies, particularly in sensitive areas close to water abstraction points. This is a highly The BT Wholesale Power Technology Support In the financial year 2004, BT Wholesale Premises energy regulated issue. team now investigates fuel-related serious invested £657,000 in its energy conservation environmental incidents. The team’s Premises energy includes all the electricity, oil Testing, repair and decommissioning of fuel programme. This has resulted in savings of investigative skills, technical understanding and and gas required for more than 1,000 offices, tanks are a vital part of BT’s programme to over 14GWh. legal/regulatory awareness are helping to warehouses and depots. reduce the risk of pollution from fuel storage. Our three-year investment programme in improve our performance in this area. As we rationalise and refurbish our premises, Four years ago, we began a programme to test electricity metering and action plan to improve In the financial year 2003, we established a our overall energy use is decreasing. Although it all our fuel tanks. At the end of the financial the quality of electricity data has significantly new process that required details of incidents QUA QU A E R L I is a fact that air conditioning increases energy E R L I T T T T year 2004, we had spent £11 million on the Y Y I S increased data accuracy to over 97%. This data I S G A G A E S E S to be recorded on a database. 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BT Social and Environmental report | BT and the environment 3 Fuel, energy and water continued Waste
Of these, four were classified as serious, three Water use We produced around 107,303 tonnes of Types of waste as significant and one as local. Additionally, one We use water mainly for catering, washing and waste in the 2004 financial year. Of We generate different types of waste. case was investigated where conditions found toilets. All our sites have water meters. this, we recycled 27,626 tonnes and on site required remedial work to avoid any • Category 1 – does not present a danger of potential incident occurring in the future. A concerted effort to reduce our water sent 79,677 tonnes to landfill (11.35% environmental pollution, such as paper consumption (leak detection, underground pipe less than last year). The approximate known quantity of diesel fuel • Category 2 – not toxic or hazardous in replacement and water-saving devices) has led lost as a result of these incidents was 507 litres. unmodified form, but which has the potential to a reduction in consumption of 3.15%, (from To retain our ISO 14001 certification we to become so if not treated properly on 2.1 million cubic metres in 2002–03 to 2.04 Site questionnaires must run an efficient and effective disposal, such as cable million cubic metres in 2003–04). The year waste management system. We are A comprehensive site questionnaire has been 2003–04 has been very dry, causing a larger • Category 3 – inherently toxic or hazardous developed to improve our detailed number of underground water leaks from tenants in much of our property and our and requires the most careful handling at understanding of the environmental risks fractured supply pipes. building facilities are managed by a all stages of the disposal process, such as associated with each of our facilities. It covers contractor. We work in partnership with diesel oil. We are now close to the economic benchmark information such as drainage plans, the for optimising water efficiency in most of our them to ensure effective waste proximity of the fuel delivery points to drains, The BT Waste Forum buildings. Despite this we will continue to target management. and whether the site has oil interceptors that metered water use. We have a waste forum – made up of key are regularly maintained. people across BT. Its role is to: For more information, see the Data and targets Here we describe: We completed questionnaires for all of our sites section of our online report. • Set and monitor waste environmental targets in 2002 and have an ongoing programme • The type of waste generated whereby assessments are completed annually on • The BT Waste Forum • Review contractors’ environmental performance our behalf by BT’s contracted facilities • Performance against key waste targets management supplier, Monteray. • Ensure we comply with all environmental • Working with our property partners. legislation Oil recovery For further details, see the Data and targets • Manage our packaging obligations In the financial year 2004, over two million litres section of our online report. of oil have been removed from tanks that have • Promote and communicate environmental been decommissioned as a result of our fuel initiatives and awareness tank integrity testing programme or conversions • Consider any new ideas on waste from oil to gas-fired heating systems. management. Of this, 30,000 litres have been reused for heating purposes at other BT sites, and 620,000 litres have been reused in replacement generator tanks. Where it has not been possible to reuse internally within BT, other external reuse options have been considered. As a result, 1.34 million litres of recovered oil have been sent for reuse in the manufacture of road surface material. As a last resort, we disposed of 33,500 litres as controlled waste so that the fuel tank decommissioning programme would not be delayed. For more, see the Data and targets section of our online report. R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A E S E S
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BT Social and Environmental report | BT and the environment 4 Waste continued Transport
Performance against key waste targets We run a fleet of 32,633 vehicles, • Vehicle pools, which provide services for those people who cover few miles Target by March 2004 Achievement Comment managed under contract by our subsidiary, BT Fleet. • Utilising pools of larger or specialist Increase the amount of items No Unfortunately, because we vehicles to help reduce the number of these recycled (recorded in tonnes) successfully reduced the We use our considerable purchasing vehicle types. by 10%, measured against the overall amount of waste we March 2003 outturn figure generated – down by 10,000 power to ensure we achieve the best In the financial year 2005 we will: possible value for money and lowest tonnes this year – we did not • Reduce our commercial fleet by meet this target. However, as costs for the full life of our vehicles. BT 2,000 vehicles reduction is a preferred option Fleet is responsible for the management • Test potential fuel savings from a new to recycling, we are very of our transport environmental impacts. pleased with this outcome. speed limiter function on vans, and get This is part of BT’s UK certified ISO driver feedback Introduce improved disposal Yes After trials at four UK sites, 14001 environmental management • Participate in the UK Transport Energy Best routes and processes for users at nominated sites have system (EMS). Practice programme. It provides vehicle spoil/rubble from BT field agreed to provide dedicated operators with free specialist advice on fleet operations using BT skips for this waste. Here we discuss: efficiency (eg, fuel management, fleet engineering sites • How we operate our commercial mileage, driver training) and helps develop Develop new disposal and Yes A new procedure to recycle vehicle fleet action plans to improve. recycling routes and processes fluorescent tubes (about 1,200 See further details in the Data and targets for site-level fluorescent tubes • Our company car policy a year) will be used throughout section of our online report. in line with current regulations BT from 1 April 2004. • The use of alternative fuels and fuel Review all information Yes A new computer-based efficiency devices Company car policy communication channels on training module was • Noise suppression efforts Our company car policy supports the key waste management and introduced in November 2003, objectives of the UK Government’s emissions- recycling for BT people, • Electric vehicle trials available to all BT people. This based company car taxation initiative. It offers including the introduction of – plus environmental briefings • Awards. the following benefits: new computer-based training and a new 108-strong courses, improvement to dedicated team at site level – Commercial vehicle fleet • Increased allowance to employees who opt existing training programmes will increase local awareness. out of company car ownership and communications to In the financial year 2004, our commercial fleet has reduced by 4%, with a corresponding • Improved tax efficiencies for employees who enhance environmental opt for lower-emission cars awareness reduction in fuel consumption of 4%. See full details in the Data and targets section of our • Improved advice and communications to online report. company car drivers, encouraging users to For further details, see the Data and targets We achieved our target to use smaller vans and choose lower-emission cars. section of our online report. to remove 832 (actual achievement was 878) vans from the commercial fleet. These Reducing fuel consumption Working with our property partners improvements were achieved because of a The UK’s new tax regime – it no longer rewards Over 6,700 of our buildings are owned by number of initiatives and policies, such as: high mileage – has helped us to reduce mileage. Telereal and our facilities management is carried • Engineering productivity targets and systems, We penalise company car drivers with cars that out by Monteray. We work closely with them in which improved vehicle routing to eliminate return less than 23 miles per gallon with a partnership to ensure that our waste is properly unnecessary travel £20 per month surcharge. managed, ensuring our continued certification • Operational policies, optimising vehicle use Since April 2001, when our new car policy was R QUA to the ISO 14001 environmental management R QU A L L T E I T T E I T Y Y I S I S G A G A E S E S introduced, the company car fleet size has
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BT Social and Environmental report | BT and the environment 5 Transport continued
Online ordering • Introduced sound-deadening panels behind The Th!nk electric car will continue to be rigorously tested in London every day. Our company car ordering system for car drivers the engine is completely web-based, with links to all the • Revised the hydraulic valve component to Awards vehicle manufacturers and to all new vehicles’ reduce noise. fuel consumption and CO2 emission data. In the 2004 financial year, BT received two Despite increased power demands, we have Information to help drivers minimise their London Liveable City Awards, which recognise reduced noise to a level where operators no impact on the environment is included. This and promote sustainable business. longer have to wear ear defenders. enables drivers to make fully informed choices BT won the award in the Air Quality and when buying cars and supports the UK We specify that all vehicles fitted with Climate Change category. The judges Government’s aim to encourage the use of hydraulic systems return to tick over when not recognised our efforts to reduce the impact lower-emission cars. powering the system. This reduces fuel usage of our worldwide operations on air quality and and exhaust fumes, and keeps operating noise cut our CO2 emissions. Alternative fuels to a minimum. We were also ‘highly commended’ in the Traffic Our fleet is mainly medium and large vans – Reduction and Transport Management category nearly all diesel powered. There are alternative Electric vehicle trials for our innovative conferencing technologies fuels, but each has its drawbacks: BT is taking part in the TH!NK@bout London and flexible home-working initiatives. The award mobility project, originally launched and • We could replace diesel with petrol vehicles, recognised the significant reduction in the supported by motor manufacturer Ford. but this would reduce fuel economy because amount of travel by BT people, including in and This project helps businesses and environmental petrol vehicles are less efficient than diesel around the congested area of London. The groups in London join forces with local, regional equivalents judges also praised our efforts to encourage and central governments to introduce electric business customers to reduce the environmental • Liquid Petroleum Gas (LPG) is the cleanest- vehicles to the city’s streets. impact of their transport activities. burning fossil fuel, but supplies are limited. Phase 1 began in August 2001 when London Furthermore the additional space needed for Mayor Ken Livingstone presented BT Fleet LPG tanks on the vehicles would mean with the keys to a new electric vehicle for the replacing existing vehicles with larger, less company to use around the capital. Phase 2 fuel-efficient models began on 9 April 2003 when BT Fleet was again • Vehicles using both LPG and petrol (duel fuel) presented with a Th!nk car to use in London for are being assessed as we await clarity from 18 months. the UK Government on fuel duty. The silent, zero-emission electric car provided Further details are available in the Data and by TH!NK@bout London will again be used by targets section of our online report. a network planning team for light delivery work and site visits in and around the capital. The Fuel efficiency devices electric car, which replaces a Ford Fiesta van, Tests on a fuel economy device found it is fitted with telemetry systems to check produced average fuel savings of 12% and performance. The data is sent directly to Ford reductions in diesel smoke emissions of 36%. for analysis. But it risked damaging the fuel injection system Like phase 1, phase 2 of the project was and the device was rejected. heavily over-subscribed and BT was one of 15 companies chosen to participate. This is Noise suppression because we were considered an environmentally We have worked hard to develop specifications aware, high-quality and innovative organisation that minimise noise for our operators and those that reflects the diversity of transport users R QUA L R QU A L T E I T T E I T S Y in London. S Y I I G A G A E S in the vicinity of our specialist cabling vehicles. E S R S R S
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BT Social and Environmental report | BT and the environment 6 Emissions to air
Emissions to air are gases released Ozone depletion and refrigerants We also recently introduced a newly designed type of fan (the EC-motored fan) that brings into the environment, such as car Wherever possible, we use fresh air to cool our considerable energy savings compared to the exhaust fumes. This is a highly telecommunications equipment. But on warm usual fan. regulated area because some emissions days we have to use air conditioning. We are are harmful and others, such as carbon working to improve electronic equipment so We continue to monitor available refrigerants that it needs less cooling. that comply with the requirements of the dioxide from our vehicles, contribute to European Union 2000/2037 Regulation on the We report on our ozone-depleting emissions – climate change. use of ozone-depleting substances. Where as defined by the Montreal Protocol – in possible, we will use ozone-friendly HFC accordance with the requirements of the Global We closely monitor our air emissions. refrigerants in new and existing plants. Reporting Initiative (GRI) Sustainability Here we explain our: Reporting Guidelines. For further details, see the Data and targets section of our online report. • Action on climate change In the 2004 financial year, installed volumes of refrigerant gas increased by 1,078 kg and gas • Ozone depletion and refrigerants. Product design emissions by 21 kg. This is because we have, for Action on climate change the first time, included office buildings in our Through our active participation in the reporting. These buildings are managed by our European Telecommunications Standards Since August 2000 we have been reporting on facilities contractor Monteray. Institute (ETSI), we continue to explore our impact on global warming, using the UK opportunities to improve the energy/cooling We control the net amount of refrigerants Government guidelines. These recommend that efficiency of the equipment we purchase. We try purchased (the quantity purchased minus the the impact is measured in equivalent tonnes of to influence the design of future communication quantity returned or recycled) so that it is no CO2. We have achieved: equipment to ensure that standard cooling higher than 4% of the total refrigerants held. • A 62% reduction in CO2 emissions since 1991 practices can be applied. The end-of-year total was 2.9%. because of improved energy efficiency One of these initiatives addresses the problem For further details and a CFC-11 equivalent • A 38% reduction in CO2 emissions since 1992 of increasing heat dissipation out of emissions chart, see the Data and targets because of improvements to transport. communication equipment racks and cabinets. section of our online report. BT has been instrumental in the process of This is equivalent to an annual saving of almost updating the current ETSI standards and in the 1.2 million tonnes of CO2. Fresh air cooling proposal to include a thermal management Our emissions savings already exceed the UK Where possible, our communications equipment standard for equipment installations. Government’s target to reduce greenhouse complies with the requirements of the European gases emissions by 20%, by 2010 (from a 1990 Telecommunications Standards Institute. This baseline). This goes beyond the Kyoto Protocol means we can make full use of fresh air cooling target of a 12.5% reduction by 2010. – with its inherent lower energy and maintenance costs – for about 70% of the year. For more on the CO2 Model and a CO2 equivalent emissions chart, see the Data and targets section of our online report. Refrigeration cooling Our key environmental concern here is to prevent the accidental release of refrigerant gas. All cooling units purchased since February 2000 use an ozone-friendly, chlorine-free refrigerant gas, R407C. All refrigeration units are hermetically sealed.
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BT Social and Environmental report | BT and the environment 7 Procurement and the environment • Suppliers In the financial year 2004, we hosted a training In the 2004 financial year, BT spent those suppliers who do not have the procedures programme to help BT suppliers implement environmental management systems compatible over £8.2 billion on products and needed to manage the environmental risks of the product or service we buy. with the ISO14001 management systems services. Our purchases range from standard. Seven BT suppliers took part in the telephone exchange equipment and 2. Managing the environmental impacts of four-day course, partly funded by the European vehicles to accommodation, fuel and electrical or electronic equipment (EEE). Union. Participants committed to spend We have a pre-contract product stewardship energy, stationery, office machinery and 120 hours on project implementation in online questionnaire (GS19), which is mandatory their companies. postal services. for all potential EEE suppliers. This provides information on materials used and compliance Monitoring and Driving Improvements In the UK, this makes us one of the with forthcoming environmental legislation. – Performance at a glance largest purchasers, with an The information is assessed and sent to our environmental influence that extends buyers and product managers so that they can The Table below provides key data concerning make informed decisions. BT’s monitoring and driving environmental well beyond that of our own staff and improvements with suppliers workplaces. In recognition of this, 3. Auditing Waste Management Suppliers. All our waste contractors must provide a and to comply with the ISO14001 Implementation of GS13 Environmental Impact Process In Yr 2002/03 In Yr 2003/04 statement on their waste disposal procedures. standard, we identified Procurement as We assess this for legal and environmental Number of new BT contracts 879 1,199 one of eight company activities that compliance. Contractors are audited by us GS13 requirement included in new BT contracts 879 1,199 affect the environment. (using an external specialist) every year. Audit reports are sent to the relevant BT buyer and GS13 risk assessment questionnaires requested by BT progress on any required improvements to be completed by supplier* 70 568 Environmental objective monitored by the auditor. GS13 supplier risk assessment questionnaires completed 43 410 Our environmental objective in procurement is to seek to influence the environmental Training Number of questionnaires where continuous improvement performance of our suppliers and contractors was required 18 129 • Buyers through our purchasing policy. Number of questionnaires where continuous improvement In the financial year 2004, three training We have set specific objectives to ensure was being driven 7 131 workshops were held, primarily to brief BT’s appropriate supplier environmental data is overseas buyers on their environmental Number of contracts where continuous improvement completed 0 33 collected. After evaluating our suppliers’ responsibilities. A total of 47 buyers attended environmental impacts, we encourage poor *One supplier questionnaire response may cover multiple these training sessions. A further 3 conference performers to improve. contracts if for the same environment risk category calls were held with overseas buyers who were We have adopted a risk-based approach unable to attend a face to face event, to go over In the financial year 2004, we have also focusing attention on improvements in the the same training material attended by 30 assessed 233 Product Stewardship areas where the greatest impact can be made. buyers. This training was in addition to training Questionnaires (GS19) and audited conducted in the financial year 2003, when 11 33 waste contractors. Methodology training seminars were held and attended by 182 of BT’s buyers. Other environmental initiatives • Paper and stationery. We are investigating The implementation of our procurement the possibility of increasing the use of environment objective has three main strands: Two seminars on continuous improvement were In the 2004 financial year, we made a recycled content in paper and stationery used also held to give buyers extra guidance. commitment to the Mayor of London’s Green 1. Assess suppliers’ general environmental in the UK. Procurement Code. This promotes demand for policies and procedures. We do this with our In 2003 we assessed the effectiveness of the QUA QU A E R L E R L recycled products in London. We are exploring Carpet. We have identified that we currently I I • T T T T Y Y I S I S G A buyer training by conducting a soft audit of G A E S environmental impact online questionnaire E S
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BT Social and Environmental report | BT and the environment 8 Product stewardship
Why product stewardship is Why we have to manage our products so important How product stewardship supports Our world runs on electronic products. sustainability The drive to make these better, faster Product stewardship reduces the environmental and cheaper is good for customers and impacts of products, particularly electrical and business, but it creates waste. electronic equipment. The approach considers the entire life-cycle When we buy products for our own impacts of a product and its packaging by: business or for resale, we place • Minimising the actual amount of demands on the Earth’s resources. material used For example, we may not mine minerals • Reducing or eliminating the use of ourselves but through our supply chain toxic materials we inevitably support the extraction • Minimising the energy used in sourcing, of minerals. The products and services processing, manufacturing and transport we sell inevitably lead to consumption • Extending product life by incorporating and waste. ‘future-proofing’ into product design to maintain/enhance functionality This is why we share responsibility for: This will be achieved by setting targets for Find out how BT is preparing to adapt to the • Enhancing durability. collection, treatment, recycling and recovery of new legislation in A Guide to the marketing, • Reducing the use of hazardous We do not make products ourselves (those that waste EEE. The directives embrace the concept product development and manufacturing materials in the manufacture of of extended producer responsibility, requiring actions you need to take, which you can view at: our products bear our name, such as telephones, are made by others) but we use electrical equipment in manufacturers to finance the cost of taking back www.envirowise.gov.uk/. The guide was • Minimising the energy consumed our own network and in our customers’ equipment at the end of its life. produced by Envirowise in support of the UK Government initiatives on the WEEE and RoHS during their life premises (eg, routers, servers, modems, The directives ban the use of hazardous directives. Envirowise is a UK Government- telephones). materials, including lead-based solders, • Enabling their reuse, recycling and funded programme, helping companies to mercury, cadmium and brominated plastics. safe disposal. Product stewardship – the height of the comply with the directives. indicator shows environmental benefit, eg, These materials will have to be treated before Product stewardship is a set of principles landfilling, which will significantly reduce reuse has a greater benefit than remanufacture. Contributing to legislation designed to reduce the environmental impact of pollution and their potential to enter the food a product (or service) throughout its life. Legislative drivers chain and potentially affect human health. BT continues to contribute to legislative We welcome this groundbreaking legislation developments by working with industry bodies, Practising product stewardship brings benefits Electrical and electronic equipment (EEE) waste because it supports our desire to contribute such as the UK Industry Council for Electronic to the environment and to business. For is growing three times as fast as municipal to a more sustainable society. Equipment Recycling (ICER). ICER provides example, designing products to use the waste in the European Union. It makes up 4% of forums for discussion with trade associations minimum resources during manufacture, use A more demanding directive, called Energy- municipal waste today and this proportion will and gives feedback to the UK Government. and disposal can reduce costs and grow by up to 28% every five years. using Products (EuP), was published in August environmental impacts. Refurbishing used 2003. It proposes that any new EuP must have As an active member of ICER (www.icer.org.uk), products for reuse can increase revenues and Two EU directives address the problem: Waste its environmental impact assessed using life- we work closely with manufacturers and reduce landfill. Electrical and Electronic Equipment (WEEE) and cycle analysis and will have to follow eco-design recyclers with similar responsibilities on ways to the Restriction of the use of certain Hazardous principles, before it can carry the CE mark and solve issues such as how the various targets will Here we report on the legislative and business Substances (RoHS). be sold in the EU. The CE mark will apply to all be met, data provision and how to organise initiatives that are driving product stewardship. Both directives aim to minimise the use of EuP and will define minimum safety and waste collection. R QUA L R QU A L T E I T T E I T Y Y I S I S A A environmental standards. G G E S hazardous materials in electrical and electronic E S R S R S
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BT Social and Environmental report | BT and the environment 9 Product stewardship continued
Product stewardship in action Improving what we do European suppliers. We are recording and Framework for Eco-design of Energy Using monitoring the data on materials in products. Products directive. Carefully setting our targets each year helps us This will help us comply with the law and will Broadband and home energy use improve. In the 2004 financial year, we worked The projections revealed that the ICT waste enable environmentally responsible disposal closely with our buyers, product specifiers and stream in Europe is likely to be larger than Following a study completed in the financial options to be considered at end of life. year 2002, which assessed the energy used in suppliers to improve the way we gather initially anticipated. See e-living initiative our broadband-enabled exchanges, this year we information on the products that we buy. This (www.eurescom.de/e-living) for more Training looked at the energy consumption of equipment helps us comply with new legislation and make information and the draft report. used to connect to broadband in the home. better buying decisions. We are planning to organise a series of training seminars for BT buyers in the near future. Our Sustainability through producer responsibility The findings emphasised the need to make In the financial year 2005, we will continue procurement department is checking to see if environmental decisions based on fact, not with this important work and we have set We are working with the Green Alliance, a UK- the correct procedures are followed. assumption. For example, we found that older another target to make sure that our process based environment organisation, on the computers use up to half as much energy as is effective. Our Computer-Based Training package (CBT), Sustainability through Producer Responsibility used in our first product stewardship awareness project. This is a collaboration between new models with higher specifications. EEE suppliers invited to tender are asked to programme, is still available to BT people. It is business, government and non-governmental Furthermore, applications that use the graphics complete an online questionnaire, GS19, which especially relevant to buyers and suppliers of organisations. Its objective is to examine the card extensively, such as online gaming, asks about material content and other electrical and electronic equipment. potential impact of producer responsibility consume considerably more energy than environmental characteristics of their products. downloading and viewing files or working programmes on the use of resources. It also on a document. We work with our suppliers to ensure they Reuse seeks to develop a set of widely agreed complete the questionnaires with all the guidelines to design and implement producer Among the key findings are: We are working to ensure that we reuse as information necessary. Since November 2002, responsibility initiatives in the UK. much equipment as possible. This reduces costs • Users could reduce their energy consumption we have assessed 227 GS19 responses from and wastage by maximising the life of our For more information, visit the Green Alliance (and contribution to carbon dioxide emissions) 95 separate suppliers. We requested additional equipment. We use a database that lists switch website: www.green-alliance.org.uk/. by using computers with energy-saving information for 25 of the completed equipment available for reuse and allows it to be features and making sure they are set questionnaires. To find out more about the UK Government reserved and tracked until it is delivered. guidelines on sustainability, see DEFRA up correctly This information is needed to ensure that BT (http://www.defra.gov.uk/environment/sustaina Home computer and related equipment could meets its obligations under EU law, intended to • Our partnerships ble/index.htm). contribute up to 60% of the emissions when encourage suppliers to design products that doing nothing (standby mode) have less environmental impact, increase e-Living – Life in a Digital Europe recovery and recycling, and reduce hazardous Environmental standards • While the impacts of broadband energy used materials in new equipment. We worked with the EU’s e-living – We are working with a world-renowned by consumers on climate change are Life in a Digital Europe initiative, a partnership environmental standards organisation to significant when compared with BT’s annual The questionnaire asks if products contain of nine organisations which aims to generate produce the first worldwide environmental and CO2-equivalent emissions, its overall materials described in the RoHS directive and if quantitative data on the environmental ergonomic standard for telephones. contribution is very small – less than 0.1% of suppliers have programmes to phase out: impact of information and communications the UK’s total yearly emissions • Lead technology (ICT). Achievements • Home users could cancel their increased • Mercury ICT usage and the environment is one of five Our achievements in the 2004 financial emissions by reducing their car trips by • Cadmium areas under investigation in the e-Living year were: between 100 and 1,000 kilometres a year. • Hexavalent chromium research programme. We evaluated the direct • PBB brominated flame retardant environmental impacts of the use of ICT 1. Setting up a database of all the hazardous • PBDE brominated flame retardant. equipment by: materials (as required under the WEEE Directive) for all telephones made since 1970 Now that we have completed our product • Gathering data on the contribution of ICT stewardship target to monitor the effectiveness equipment on waste, including hazardous 2. Training over 80% of BT buyers in the of the GS19 process, it was decided to not only materials and emissions of greenhouse gases principles of product stewardship redesign it but also to tailor it to fit in with other through energy use QUA QU A E R L I E R L I 3. Providing BT’s response to the first and T T T T Y Y I S I S G A G A E S Generic Standards. E S
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BT Social and Environmental report | BT and the environment 10 Product stewardship continued Local impacts
4. Incorporating our innovative product The impact of our activities, such Visual amenity assessment process (GS19) into our as the visual intrusion of telephone The UK Government defines visual amenity as procurement policy as a mandatory wires or the disruption caused by ‘the preservation of a view or prospect available to requirement construction work, affects people’s a member of the local community from a public 5. Improving our core network installation immediate surroundings. location which is designated as protected’. requirements to include product stewardship It can be difficult to strike the right balance principles The infrastructure supporting our 28 million when installing equipment. For example, 6. Completing a second study on broadband customer lines in the UK includes around four replacing overhead wires with buried services – reporting on end-user equipment, million telegraph poles, millions of manhole underground cables has both benefits and and its energy impact and equivalent covers, thousands of roadside cabinets, drawbacks. Underground cables may have less CO2 emissions. 24 tunnels running under cities and hundreds visual impact, but burying wires consumes much of radio stations. Our network is expanding more energy and materials. Plans and changing as technology progresses. We are conscious that this has a potential Our telephone poles are made from timber In the financial year 2005, we will carry out impact on the environment – on the grown in sustainably-managed forests and can environmental impact assessments on a number countryside, on skylines and cityscapes be regarded as a renewable resource. of our products. This will help establish where – and concerns all our stakeholders. Underground installation requires plastic improvements can be made at the design and ducting, concrete and metal manhole covers, manufacturing stage and minimise the Our approach to local impact is embedded in which are made from non-renewable sources. products’ use of energy and material resources. our network planning rules and procurement policies. We have established channels to help We work with our customers and the authorities A major objective is to ensure that using the customers communicate with us about these to achieve a balance between visual impact, GS19 questionnaire becomes a common activity issues. We support the four principal elements cost and the use of resources. within our procurement system. set out in the UK Government’s sustainable We also recognise the unique value of the UK’s Our awareness training of BT buyers and development agenda: national parks, their breathtaking scenery, rare the procurement department will raise the • Social progress which recognises the wildlife and cultural heritage providing a haven profile of product stewardship and help reduce needs of everyone for quiet enjoyment for all. BT is a founding the associated environmental and business member of the Corporate Forum for National risks to BT. • Effective protection of the environment Parks (www.cnp.org.uk/corporateforum) and is We will support the phase-out of lead solder, • Prudent use of natural resources committed to work with the Council for National hexavalent chromium, brominated flame- Parks ( www.cnp.org.uk) to help them meet • Maintenance of high and stable levels of their objectives. retardants and all the other materials economic growth and employment. covered in the RoHS directive (we ended the use of cadmium as a pigment in all Here we discuss: Street furniture telephones in 1989). • Visual amenity Our roadside cabinets are sometimes vandalised We will continue to contribute to the dialogue • Street furniture with fly posters and graffiti. We are working with on the EuP directive within the stakeholder • Street works many local authorities and community groups to group co-ordinated by the UK Government. • Wires and cables improve streetscapes and find commercially • Radio masts viable solutions to the problem. • Biodiversity The UK law on antisocial behaviour has been • Biodiversity action changed and will be fully in force in our financial • Environmental management year 2005. We will report on how it affects our • Campaigning and public debate work in improving streetscapes. • Environmental complaints
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BT Social and Environmental report | BT and the environment 11 Local impacts continued
network. Our agreement with the House • Enables future generations to meet Campaigning and public debate • Goonhilly Downs SSSI Builders Federation ensures a co-ordinated on- their needs. One of our satellite communications centres, We work with others to ensure that we site approach by all service providers. which is 171 acres in area and a component of We have an impact on biodiversity through our implement our policy and stimulate debate and the Lizard Special Area of Conservation, is use of natural resources, energy and transport. learning about biodiversity. Wires and cables located on Goonhilly Downs, designated a Site These impacts are covered by our We published Variety and Values to advance the of Special Scientific Interest (SSSI) for its rare Complaints about our wires and cables range environmental policy and environmental discussion of global cultural and biodiversity lowland heath habitat. We have an agreed site from the visual intrusion in the landscape to the management systems. For more information, issues. (See Original Thinking on our Better management statement with English Nature noise and mess created by birds sitting on wires. see the BT and the environment section of our World website.) (EN) to maintain and improve the site’s In the 2003 financial year, we began a major online report. We take every opportunity to We commissioned Forum for the Future, a UK- biodiversity. We received the English Nature initiative to follow up on reports of overhead promote and encourage biodiversity. based sustainable development charity, to study SSSI Award for Outstanding Achievement for wires and cables at the incorrect height. the impact of the telecommunications sector on the site management statement and follow-up Remedial work continues. Biodiversity action biodiversity and best-practice business work plan in 1997. Examples from the work Protecting biodiversity is integral to our When installing new telephone poles or approaches to manage biodiversity. The studies plan are in the Earthwatch booklet Case environmental management system. This replacing old ones, we consider environmental showed that nearly all major companies manage Studies in Business and Biodiversity. This is ensures that all our activities, from procurement impacts, such as tree roots and hedgerows. This some of their biodiversity impacts in broader available as a PDF from: www.earthwatch.org/ to waste management, take biodiversity into is particularly important in areas of outstanding environmental, social or sustainability europe/publications/bandbcasestudies. account. We also campaign for the protection of natural beauty, on listed buildings and in other management strategies without drawing these • Madley Environmental the environment and participate in the public protected areas. together under the biodiversity umbrella. Education Centre (MESC) debate on biodiversity. The MESC is a UK-based facility for Radio masts We work with UK schools to promote Environmental management biodiversity. In the 2004 financial year, we environmental educational studies. (See Radio communication remains an important sponsored GLOBE UK (www.globe.org.uk/), www.wetlands-study-centre.co.uk/ for more part of our network, particularly in rough Here are some examples of our actions to which is part of an international environmental information.) The centre, which is part of 218 terrain, such as the Scottish Highlands. We have conserve biodiversity: education project that encourages pupils to acres of land owned by BT, has made available 11 acres of wetland, woodland and meadows around 300 radio stations in the UK. • Our procurement policy specifies that we only explore and measure their local areas, and where children and adults can study or just buy telephone poles from sustainably- report their findings on the internet. Radio masts can impair the beauty of the enjoy the wildlife. MESC is supported by the managed forests landscape. We are experimenting with the use The initiative links students and scientists in 104 Environment Agency (EA), Hereford Council of satellite communications, but radio masts will • We continue to phase out the use of volatile countries as they exchange and collect data and BT. We manage the land’s wildlife and have to be used for some time. organic solvent paints and use water-based about their environment and enter it on the provide technical facilities, purpose-built, We continue to share space on radio masts alternatives on our radio towers in areas high GLOBE database. innovative classrooms and a lecture and towers with many other radio operators. in biodiversity Classroom activities encourage the scientific auditorium on the site. This prevents unnecessary structures and • We have a comprehensive recycling gathering of data, which can be compared over • Adastral Park minimises the number of antennas. We are programme for BT and our customers, time, between schools and between countries. Adastral Park is a 99-acre site in the Suffolk also working with other service providers to preventing nearly 28,000 tonnes of waste a The data serves as a basis for discussions on Coast and Heaths Natural Area. The BT site at use existing street equipment – lamp posts, year ending up in landfills (26% of our total how we can change our lifestyles to promote Adastral Park shows that development can telephone kiosks and telegraph poles – when waste). Operational plants, cable, batteries, sustainable development. contribute to local socio-economic stability installing local mobile telephone networks in oil, mobile phones, paper, toner cartridges without loss of biodiversity if good cities and towns. and telephone directories are all recycled Environmental complaints environmental management practices are adopted. To ensure we optimise biodiversity Biodiversity • Many of our new office buildings and The number of environmental complaints telephone exchanges use fresh air rather received represents less than 1% of the total at Adastral Park, we have partnered with Biodiversity is the variety of life on Earth and is than refrigerated cooling, to minimise the complaints received by BT (based on our data English Nature on their Lifescapes initiative. protected by UK law. Its conservation is a key use of ozone-depleting gases. Many buildings for 2002). However, we continue to review our This aims to achieve landscape-scale changes test of sustainable development, because have bird and bat boxes to encourage data collection to decide how best to identify to support wildlife through habitat re-
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BT Social and Environmental report | BT and the environment 12 Benefits Payphones
The use of Information and Our 98,000 payphones are a highly The use of vehicles used to maintain payphones Communications technology (ICT) not visible part of our operations. Every year is closely monitored and we look for ways to reduce trips, which saves fuel and reduces only benefits business but also the about 18 million people – 37% of the emissions and congestion. people doing business and the UK population – use them. environment. ICT can support social and Payphones and the community We are committed to good economic development by transforming We operate about 73,000 public payphones and environmental practice and our communication and access to 25,000 phones located on private land, such as information and is part of BT’s approach payphone business, BT Payphones, was train stations. the first in BT to gain certification to the to sustainability. For more information, We maintain about 15,000 traditional red see the Sustainability section of our ISO 14001 environmental management boxes, including kiosks recognised for their online Social and Environmental report. system (in May 1999). historical value, even though this costs more than using modern boxes. Here we explain how we deal with the The use of our products and services enables We are very aware of the importance of us to improve the work–life balance of our main environmental issues of payphones in society and we are committed to people and to reduce our consumption of payphones: safeguard them. Payphones help raise local finite materials. • Siting of kiosks amenity standards by promoting social We identify some of the key sustainability inclusion, particularly in poor areas. • Materials purchase and maintenance impacts of ICT, using quantified examples from Payphones are also critical to community safety our own experience. These include: • Payphones and the community – 8.4% of genuine emergency calls are made • The economic, environmental and social • Cleanliness, vandalism and security. from payphones (based on 2001 data) – and impacts of phone and video-conferencing. increase the sense of security. • The social and travel implications of more Siting With local authorities and the police, we are flexible workstyles. We discuss the pros and When we site a payphone we always consider investigating the possibility of siting closed- cons of teleworking as identified by the SusTel the environmental impact it will have on its circuit television cameras in or on the roofs of BT Pilot Report and the SusTel UK Survey. surroundings. We often work with local kiosks. This could help reduce street crime. authorities to ensure that a wide range of • The social and environmental impact of Cleanliness, vandalism and security e-Business, such as paper-free billing. options are considered. We adhere to the highest standards of For further information, see the ICT Because of the popularity of mobile cellular maintenance and cleanliness. A dedicated BT sustainability impacts section of our online telephones, we are reducing unneeded team oversees the contractors who clean the report. For more on work–life balance, see the kiosks in the UK, in consultation with local payphone network. Employees section of the report. authorities and parish councils. This helps reduce street clutter. Our customer satisfaction research shows that dirty and vandalised phones, as can be Materials purchase and maintenance expected, deter customers. We spend about All our suppliers must demonstrate their £24 million annually on maintaining and commitment to our efforts to mitigate cleaning payphones. environmental impacts. For example, we agree The frequency of cleaning depends on usage recovery and refurbishment contracts with our and need – it ranges from four times a week to main suppliers. Payphone spares and housings once a month. Our National Contracts Office must be refurbished and reused wherever monitors the special requests made by possible. Where this is not possible, secure customers or local authorities for cleaning. R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A disposal routes are established with the relevant E S E S
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BT Social and Environmental report | BT and the environment 12
The value of cleaners’ contracts depends on the quality of their work. We motivate cleaners by recognising their work with excellence awards.
Fly-posting We funded trials on ways to discourage fly-posting (illegal advertising), in co-operation with UK local authorities. Fly-posters tend to avoid sticking their advertisements over well-designed kiosk advertisements. In areas badly affected by fly-posting, we are investigating the use of a special anti-stick coating, but the cost could be disproportionate to the benefits. We prosecute fly-posters where possible. If you witness fly-posting, please phone BT Payphones Security on 0800 169 4058. BT Payphones operates its own security team, helped by a 24/7 Crime and Support Unit. The unit provides crime monitoring/reporting service (on payphones and street crime in general) and administrative support to the police. Every year there are between 1,500 and 2,000 arrests for payphone crime offences.
Prostitute cards BT led the campaign to criminalise the act of placing prostitute cards in payphone kiosks. Our dedicated security team works with police and local authorities to log and share the telephone numbers on the cards for enforcement action. We are the only operator willing to bar offenders’ telephone numbers.
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BT Social and Environmental report Suppliers
• Human Rights in the supply chain – how we how to work in partnership. This benefits BT and The individual category winners were: also helps suppliers when they compete for non- apply our Sourcing with Human Dignity Quality: A Novo UK Limited standards in our supply chain BT work. For example, one of our partners is We buy products and services – such as exploring several new business opportunities Innovation: Motorola Inc Diversity – how we promote diversity in our • after an evaluation identified potential growth IT equipment, cables, software, design supply chain Value: Computer Sciences areas for them. and disposal services – from thousands Corporation Procurement and the environment – how we • We share learning and expertise in quality, the of suppliers worldwide. In the 2004 promote environmental good practice in all Customer delight: Spirent environment, diversity and ethical trading. financial year we spent over £8.2 billion our purchasing activities. Communications on procurement. Payment Commitment to Selection social responsibility: Belden At every stage of our dealings with suppliers – BT’s policy is to use its purchasing power BT operates a fair procurement process – Communications from selection and consultation, to recognition fairly and to pay promptly and as agreed. BT has administering our tendering and contracting Division and payment – we are committed to a variety of payment terms with its suppliers. procedures in good faith. Breaking the mould: Yahoo! Inc behave according to the principles of fair The terms for payments for purchases under Our supplier selection process seeks to ensure and ethical trading. major contracts are settled when agreeing Further information on the suppliers awards is that high safety, environmental and social In April 2004, we provided our suppliers with the other terms negotiated with the available at http://www.selling2bt.com/ standards are met. We value the diversity of our the opportunity to give their views on how well individual suppliers. initiatives/IiE/default.asp suppliers. They do not have to be existing BT lives up to these commitments and principles customers of BT. It is BT policy to make payments for other Corporate social responsibility via a confidential and on-line supplier purchases within 30 working days of the invoice Our Purchasing Principles provide a framework stakeholder survey. date, provided that the relevant invoice is We are committed to be socially responsible and to ensure that we act in an ethically and A total of 213 suppliers responded, with presented to the company in a timely fashion to minimise our impact on the environment. commercially responsible way in our dealings. 94% stating that they had a good working and is complete. Adhering to these principles is an integral part We promote our principles and values when relationship with BT. of our procurement process. For further BT’s payment terms are printed on the working with others. Our corporate social In the 2004 financial year, BT was the information, see: www.selling2bt.com/working/ company’s standard purchase order forms or, responsibility (CSR) programmes seek to apply overall winner of the UK Chartered Institute purchasing/default.asplink. where appropriate, specified in individual human rights and environmental good practice of Purchasing and Supply’s Supply contracts agreed with the supplier. within our supply chain. Authority to form a contract is restricted to our Management Awards. authorised procurement professionals, trained The ratio, expressed in days, between the Scope The award recognised our efforts in applying to world-class standards and who apply BT’s amounts invoiced to the company by its ethical procurement principles. The judges said: Purchasing Principles. suppliers in the 2004 financial year and the Since 30 April 2004, our CSR supply chain “Where other organisations use fine words, this amounts owed to its trade creditors at the programmes are applied by BT Group’s entire In the UK, where they exist, BT plays its part in one has taken real action…[BT] demonstrated end of the year was 35 days. purchasing operations. Prior to this date they a number of Government and commercially- excellence in purchasing and supply were only applied by BT UK purchasing teams. sponsored initiatives designed to enhance small management.” Supplier awards suppliers’ awareness of total quality. This will Governance & resource Here we discuss key aspects of our relationship help them compete more effectively in the The exceptional standard of submission to our with suppliers: global market. Investing in Excellence supplier awards in the BT’s Chief Procurement Officer, who reports to 2004 financial year underlines the importance a BT Board member, has ultimate responsibility • Selection – how we choose our suppliers Development we attach to the awards. for these CSR supply chain programmes. • Development – how we work in partnership Award categories, which reflect our key Our buyers – supported by a procurement with our suppliers We use a range of tools to assess and develop our suppliers. These range from basic desktop strategic objectives, were: CSR manager, product stewardship experts • Payment – our commitment to pay our and product managers – implement evaluations to sophisticated supplier capability 1. Quality suppliers promptly and as agreed the programmes. assessments and partnership evaluation 2. Innovation • Supplier Awards – our Investing in Excellence processes (PEM). 3. Value Since April 2004, CSR has been incorporated as supplier awards A PEM evaluation is only undertaken where both 4. Customer delight a key measure in BT’s procurement’s “scorecard” and buyers’ objectives. This acts as QUA E R L 5. Commitment to social responsibility T I T parties agree that it will be mutually beneficial. Y I S G A • Corporate Social Responsibility – our E S
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BT Social and Environmental report | Suppliers 1 Suppliers continued
Awards for CSR GeSI Supply Chain CSR Working Group Human rights in the supply chain Methodology In the 2004 financial year, BT was the overall BT is a member of the Global eSustainability For all new BT contracts, suppliers are asked to winner of the Chartered Institute Initiative (GeSI), supported by the United Working conditions sign a clause committing them to complete a of Purchasers and Suppliers (CIPS) Supply Nations Environment Programme (UNEP) and Society expects us to buy and use products that risk-assessment questionnaire (GS18) on Management Awards. the International Telecommunication Union are manufactured under working conditions request. See www.secure.selling2bt.bt.com/ This was received for (ITU). GeSI promotes the use of technology to consistent with international guidelines. ext/html/gs18/ for further details. The clause converting ethical foster sustainable development. Chief among these are the UN’s Universal also permits us to carry out on-site audits and procurement commits the supplier to work with us to achieve In the 2004 financial year, GeSI established a Declaration of Human Rights (UNDHR) and the principles into our SWHD standards. CSR Supply Chain Working Group. International Labour Organisation (ILO) practice. BT also conventions. Further information on these can The questionnaire establishes the level of risk received the Best The group aims to develop or improve tools, be found at: www.unhchr.ch/udhr/index.htm associated with the supplier. If the contract is Contribution to management practices, processes and systems and www.ilo.org/public/english/standards/ identified as high or medium risk, we follow up Corporate to help member companies deal with CSR issues norm/whatare/fundam/. to find out more information and determine Responsibility award. in the supply chain. It seeks to promote efficient what further action is needed CSR supply chain management by helping to Through our supply chain initiative Sourcing The judges said: “Where other organisations use eliminate duplication within the Information and with Human Dignity (SWHD), we seek to ensure In some cases, an on-site assessment will be fine words, this one has taken real action”. Communications Technology (ICT) industry. that the working conditions in our supply chain agreed with the supplier. This may involve an We also encourage and recognise our suppliers meet internationally accepted standards. audit of the supplier’s own facilities or that The Group has commissioned a study to identify with our Commitment to Social Responsibility of a subcontractor. what would be considered best practice in We need the collaboration and support of all our Award. This is one of six award categories in CSR supply chain management for an ICT suppliers. Since the launch of the initiative in The audits include interviews of the workers. our annual Supplier Investing in Excellence company. This will be used as a benchmark. 2001, we have worked with an increasing Where possible, BT will ask appropriate NGOs, Awards (IiE). The findings, expected in the 2005 financial number of buyers and suppliers to pursue this. independent assessors or academics to carry out year, will help decide priorities in the group’s the interviews. Case study: future work plans. Our Supply Chain Policy Belden Communications wins BT IiE 2003 Another initiative is to develop a self- Our SWHD initiative specifies the minimum GS18 Commitment to Social Responsibility Award. assessment questionnaire to help suppliers standards we ask our suppliers to achieve in the Audit Tool Belden Communications, the manufacturer of Premises Walk Round assess their own environment and labour following areas: Management Interviews metallic cables, was recognised for its (incl. Facilities provided (incl. HR, Payroll, standard risks, while raising their awareness of for workers) & Production) commitment to social responsibility and • Child labour the issues. The group plans to consult key environmental management. • Cruel, harsh and inhumane treatment Worker Interviews Assessment Report Documentation non-governmental organisations (NGOs), (conducted by local (Via BT Audit Tool) Reviews worker interviewer) Belden was praised for its efficient use of trade unions and suppliers on the development • Forced labour copper, saving hundreds of tonnes a year of of the questionnaire. Discuss observations • Discrimination with Supplier the scarce resource. Belden has also had a BT/Supplier agree improvement formal environmental management system Future Plans • Freedom of association & collective plan where appropriate since 1996 and has long held the ISO14001 bargaining In the future, we plan to: standard certification. BT monitors supplier’s • Health & Safety implementation of • Amalgamate the existing supply chain CSR improvement plan When the company started working in China, it processes. Where feasible, we will seek to • Wages pro-actively assessed the labour standards of create a single, cohesive and efficient process Interviewers always speak the language of the prospective suppliers. Belden carried out on-site • Working hours for BT’s buyers and suppliers. workers and, where possible, will be of the same audits and developed improvements plans • Regular employment entitlements gender. The safety of the workers is of utmost before awarding new contracts. • Set up an NGO/Trade Union Advisory Panel. This will give panel members an opportunity Find out more on Sourcing With Human Dignity importance and we protect their anonymity Belden’s policy on labour conditions is based on to contribute to BT’s future supply chain CSR at: www.selling2bt.com/html/working/ when feeding back findings to the management. international conventions and is in line with BT’s strategy. It will hold a one-day session every humandignity/gs18.asp. Where shortfalls against the GS18 standard are R QUA L R QU A L E I T own GS18 Sourcing with Human Dignity E I T T T Y Y I S I S G A G A E S six months. E S identified, an action plan is agreed with the R S R S
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BT Social and Environmental report | Suppliers 2 Suppliers continued
Training Training assessors Monitoring and improvements During the 2004 financial year, we organised a The table below provides key data concerning Buyers’ awareness training two-day specialist assessors’ course for BT’s monitoring of Sourcing with Human It is critical that our buyers have the awareness, procurement and internal audit professionals. Dignity and improvements achieved. knowledge and skills required for the successful This was conducted by an external agency that implementation of SWHD standard. In 2003 we specialises in SA8000 auditor training. This Implementation of GS18 Sourcing with provides the knowledge and skills required to organised half-day SWHD training courses for Human Dignity Labour standard 2003 FY 2004 FY buyers. These were attended by 176 buyers. conduct on-site assessments using the SWHD This training continued to be a key focus during standard. Attendees must pass a test at the end Number of new BT Contracts 879 1,199 the 2004 financial year. of the course. GS18 requirement included in new BT contracts 879 1,199 In the 2004 financial year, we launched a Twelve BT people and one person from a GS18 risk-assessment questionnaires requested by Computer Based Training (CBT) package to supplier attended the course. This brings the BT to be completed by supplier* 37 391 enable all BT buyers to undergo SWHD training. total number of BT employees trained to The CBT is mandatory for all those who have conduct SWHD assessments to 21. GS18 risk-assessment questionnaire completed 31 242 not taken the half-day course and includes the We encourage our assessors to conduct on-site Number of questionnaire responses where further action was required 15 67 completion of an on-line assessment. The CBT assessments in our supply chain, initially with Number of questionnaire responses where further action ws being conducted / 74 introduces our buyers to the rationale behind the assistance of an experienced BT lead the SWHD initiative, its key features and their assessor. Nine have already participated in one Number where required further action was completed / 20 role in ensuring its successful implementation. or more assessments and four have become Number of inital GS18 on-site assessments conducted on high risk contracts 7 9 At the end of the 2004 financial year, 270 approved lead assessors for BT. buyers had completed either the CBT or the Number of suppliers identified as falling short of half-day training session. Suppliers GS18 standard following assessment 7 9 In addition, we held three supply chain CSR The GeSI CSR Supply Chain Working Group Number of GS18 on-site reassessments conducted 7 4 training workshops attended by 47 buyers plans to develop a self-assessment/awareness Number of suppliers who, following reassessment, during the 2004 financial year. These were raising tool to help guide our suppliers in the have reached the GS18 standard 0 0 primarily organised for BT’s buyers abroad. implementation of labour standards codes. Buyers must undertake the CBT course before Contracts cancelled due to serious shortfalls persisting against GS18 standard 1 0 We seek to raise suppliers’ awareness during attending the workshops, where they then have *one supplier questionnaire response may cover multiple contracts if for the same on-site assessments. We start these with a pre- the opportunity to raise questions. procurement requirement meeting designed to help suppliers understand why SWHD standards are important to us. We /= Data not entered onto the central database that year explain what we will be looking for during the assessment. We often bring the suppliers’ health and safety officer with us on the premises tour, so that they understand any health and safety issues the assessment discovers. When we assess a supplier’s subcontractor, we often take someone from the supplier with us. This helps suppliers understand the risks and how these can be managed in their supply chain.
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BT Social and Environmental report | Suppliers 3 Suppliers continued
2004 assessments In the 2004 financial year, a further seven Diversity Environmental objective re-assessments were made to facilities where In the 2004 financial year, we completed Our environmental objective in procurement is improvement plans had already been put in 13 on-site assessments to find out how well The business case to seek to influence the environmental place. The visits assessed the level of our suppliers met our SWHD standard. performance of our suppliers and contractors improvement in the way suppliers meet Because our customers are so diverse, the issue through our purchasing policy. Of the 13 assessments conducted (in China, our standards. of diversity is commercially important to us and India, Sri Lanka, Turkey and the UK) nine were built into our business objectives. For example, We have set specific objectives to ensure in our largest market, the UK, about 51% of the of facilities not previously assessed. The Case study appropriate supplier environmental data is assessments were done in those areas where people are female, 7.7% from ethnic minorities, collected. After evaluating our suppliers’ In one case, a subcontractor was found, upon there was a high risk of suppliers falling short of and 18% have a disability. We must understand environmental impacts, we encourage poor re-assessment, to persistently allow serious our standard – they should not be taken as a and align ourselves with our customers if we are performers to improve. shortfalls of the SWHD standard, including representative sample of our supply chain. to provide a truly world-class service. excessive and forced overtime and intimidation We have adopted a risk-based approach To gain the full benefits and competitive Our assessments use the following of workers. The contractor falsified records to focusing attention on improvements in the advantage of diversity it must be reflected scoring system: try and hide this from the auditors. As a result, areas where the greatest impact can be made. throughout our operations, including our • Improvement required – progress is we stopped placing orders with that company. supply chain. Methodology needed on at least 51% of the aspects in This is the first and only case where we have that category. stopped trading with a supplier because of non- Supplier diversity programme The implementation of our procurement compliance with our SWHD standard. All other environment objective has three main strands: • Some improvement required – progress Through our supplier diversity programme we is needed on at least one aspect in suppliers have been collaborative and open and 1. Assess suppliers’ general environmental continuously try to improve their performance. have worked with Minority Business Enterprises that category. to help encourage a diverse supply chain. policies and procedures. We do this with our environmental impact online questionnaire The graph below shows the findings. See Future Plans in the Corporate social responsibility section above. The success of BT’s supplier diversity (GS13). The supplier must complete this after We sent the assessment reports to the suppliers programme has influenced other companies to agreeing a mandatory pre-contract award and discussed our observations with them. We do the same. This has resulted in the formation commitment to work towards continuous have either agreed improvement plans (and are of the European Supplier Diversity Group which improvement, if required. In this way we can monitoring progress), or are still to agree plans has launched a two-year project to introduce identify and drive continuous improvement with following the most recent assessments. supplier diversity into Europe. The group those suppliers who do not have the procedures consists of 10 major companies and two needed to manage the environmental risks of Not all the shortfalls represent major labour public bodies. rights abuses. For example, some improvement the product or service we buy. required in the living wages category does not Our supplier diversity programme is therefore 2. Managing the environmental impacts of necessarily mean that the supplier is paying on hold and will be revised with the aim of being electrical or electronic equipment (EEE). below the minimum or living wage. It may consistent with the rest of the Group’s We have a pre-contract product stewardship simply be that insufficient information about recommendations. online questionnaire (GS19), which is mandatory wages is provided in the employment contract. for all potential EEE suppliers. This provides Procurement and the environment information on materials used and compliance GS18 Sourcing with Human Dignity In the 2004 financial year, BT spent over £8.2 with forthcoming environmental legislation. The Assessment Findings billion on products and services. Our purchases information is assessed and sent to our buyers April 2003/2004 (Conducted on suppliers operating in identified risk areas) range from telephone exchange equipment and and product managers so that they can make Employment is freely chosen informed decisions. 9 vehicles to accommodation, fuel and energy, Freedom of association and Collective Bargaining 2 5 2 stationery, office machinery and postal services. 3. Auditing Waste Management Suppliers. Working conditions are safe and healthy 9 In the UK, this makes us one of the largest All our waste contractors must provide a statement on their waste disposal procedures. Child Labour 3 7 6 purchasers, with an environmental influence that extends well beyond that of our own staff We assess this for legal and environmental Living Wages 3 7 6 R QUA L R QU A L E I T E I T compliance. Contractors are audited by us T T Y Y I S I S and workplaces. In recognition of this, and to G A G A E S E S R S Hours of Work R S
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BT Social and Environmental report | Suppliers 4 Training Monitoring and Driving Improvements – Performance at a glance • Buyers The Table below provides key data concerning In the financial year 2004, three training BT’s monitoring and driving environmental workshops were held, primarily to brief BT’s improvements with suppliers overseas buyers on their environmental responsibilities. A total of 47 buyers attended In the financial year 2004, we have also these training sessions. A further 3 conference assessed 233 Product Stewardship calls were held with overseas buyers who were Questionnaires (GS19) and audited 33 waste unable to attend a face to face event, to go over contractors. the same training material attended by 30 buyers. This training was in addition to Other environmental initiatives training conducted in the financial year 2003, In the 2004 financial year, we made a when 11 training seminars were held and commitment to the Mayor of London’s Green attended by 182 of BT’s buyers. Procurement Code. This promotes demand for Two seminars on continuous improvement were recycled products in London. We are exploring also held to give buyers extra guidance. ways to buy more products made from recycled materials, such as: In 2003 we assessed the effectiveness of the buyer training by conducting a soft audit of • Aggregates. This is crushed rock used to their implementation of the environment repair roads after laying underground cables. processes. Key aspects were then reinforced • Paper and stationery. We are investigating the through environment presentations at their possibility of increasing the use of recycled team meetings. This assessment is being content in paper and stationery used in the re-conducted in 2004. UK. • Suppliers • Carpet. We have identified that we currently In the financial year 2004, we hosted a training don’t use carpet with recycled content and are programme to help BT suppliers implement exploring this possibility. environmental management systems compatible See also: Future Plans in Corporate social with the ISO14001 management systems responsibility section of this document. standard. Seven BT suppliers took part in the four-day course, partly funded by the European Union. Participants committed to spend 120 hours on project implementation in their companies.
Implementation of GS13 Environmental Impact Process In Yr 2002/03 In Yr 2003/04 Number of new BT Contracts 879 1,199 GS13 requirement included in new BT contracts 879 1,199 GS13 risk assessment questionnaires requested by BT to be completed by supplier* 70 568 GS13 supplier risk assessment questionnaire completed 43 410
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BT Social and Environmental report CSR for investors
Investors are increasingly interested in Our business case Climate change could lead to more extreme and unpredictable weather events. We need to build the social and environmental dimension Our business case for CSR demonstrates how a robust network that stands up against this of business performance and how it good CSR performance helps implement key new challenge. relates to the business strategy. aspects of the BT strategy: • Keep a relentless focus on improving Ratings The key issue for investors is the customer satisfaction. Specialist CSR ratings agencies provide rankings business case for sustainable CSR is critical to optimising customer based on the information available on a development and Corporate Social satisfaction. For example, we estimate that company’s social, ethical and environmental Responsibility (CSR): how social, BT’s CSR performance accounts for over 25% policies and practices. of the Image and Reputation driver of customer environmental and ethical risks and The ratings are based on the premise that a satisfaction. Further statistical analysis shows opportunities are managed to preserve company’s management of these aspects will that a 1% improvement in the public’s and grow shareholder value. have a significant bearing on its ability to perception of our CSR activities means a preserve and grow long-term shareholder value. 0.1% increase in our retail customer Common approaches satisfaction figures. The main ratings are as follows: There are few enterprise-specific, quantitative Increasingly, we have to address social and • BT has been ranked as the world’s number business cases for CSR. environmental matters when bidding for new one telecommunications company in the contracts – nearly £900 million in the 2004 Dow Jones Sustainability Indexes for three Social and environmental performance reports financial year. years running. are often backward looking (investors are more interested in future prospects) and unfocused • Motivate our people and live the values. • BT is top of the telecommunications sector in (investors want information presented in terms the Business in the Community Corporate Working conditions, and our relationship with of business strategy and growth). Responsibility Index (Business in the our employees, are crucial to the success of our Community is an independent business-led business. A proactive approach to, for example, charity based in the UK) and ranked 11 in the BT's approach flexible working, diversity, and learning and top 100 UK companies who took part in the development improves employee satisfaction We want to present investors with a forward- 2004 index. looking, quantitative business case for CSR and and helps improve customer satisfaction. • The German independent ratings agency, sustainable development. Our business case • Lead the world in network-based OEKOM research AG, has ranked BT attempts to set out how good CSR performance information and communications technology second out of 24 in its analysis of is critical to the delivery of the BT strategy. (ICT) solutions. corporate responsibility in the Our 2003 financial year sustainability Long-term sustainability trends create new telecommunications sector. performance presentation to city analysts, market opportunities. For example, the use of • BT is included in the UK, European and World hosted by HSBC in July 2003, is available on our teleconferencing and flexible working reduce the FTSE4Good Indices. Shares and Performance website at: need to travel and provide more flexible www.btplc.com./Investorcentre/. In addition, lifestyles. Another example is the sale of online • Storebrand (a Norwegian social investment BT's response to the Association of British environmental management systems. fund index) rated us best in class for our social Insurers' disclosure guidelines covering social, and environmental performance. environmental and ethical risks and • Achieve competitive advantage through cost opportunities is provided in the Annual Report leadership. and Accounts. Our environmental programme, which includes energy efficiency initiatives and fuel savings, The future has saved BT more than £600 million over It is crucial to show our investors how ten years. R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A E S E S R S sustainable development and CSR strategies R S
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BT Social and Environmental report Economics
BT is one of the largest Suppliers Geography Income and employment telecommunications companies • Total spend with suppliers: approximately The geographical breakdown of BT’s turnover is: £800 million. See more detail on operating Indirect impact in the world and a significant • UK £17,190 million (93%) economic force in its own right. costs on pages 34 of the 2004 Annual Report Indirect economic impacts arise from the and Form 20-F. • Europe (excluding UK) £1,124 million (6%) income and employment created in businesses Here we discuss some of our • Total capital expenditure: £2,673 million. • Americas £151 million (1%) that supply goods and services to BT. direct and indirect economic impacts, See more detail on expenditure on page 34 of • Asia and Pacific £54 million (<1%) Our expenditure in the UK injects over highlighting their social and the 2004 Annual Report and Form 20-F. £2.6 billion into the UK economy. • BT’s share of the UK residential fixed-voice environmental consequences. This supports the employment of almost Employees call market, as measured by volume of fixed- 135,600 people: to-fixed voice minutes is 70% compared with • BT employs 99,600 people, including 91,600 Direct impacts an estimated 73% last financial year. in the UK and 8,300 abroad. Indirect income and employment BT’s direct economic impacts can be measured • BT’s share of the business sector fixed-voice created in BT suppliers • Total expenditure on employees: call market is 42%, compared to 45% for the with traditional financial indicators, such as Income £ million Employment turnover, dividends and taxes paid. Wages and salaries £3,672 million 2003 financial year. From capital Social security costs £316 million These measures can be used to demonstrate Profit and re-investment expenditure 918.7 47,600 how our economic performance affects each Pension costs £404 million stakeholder group. • Profit retained was £685 million. From revenue Employee share ownership £20 million expenditure 1,697.4 87,950 The figures here measure the financial flows • Return before goodwill amortisation and between BT and our key stakeholders – Total £4,412 million exceptional items on the average capital Total 2,616.1 135,550 customers, suppliers, employees, and employed was 15.3%, compared to 15.7% Source: DTZ Pieda Consulting. shareholders and creditors – as well as Shareholders and creditors for the 2003 financial year. Based on the following 2003 financial year governments. We also provide a geographical • Total dividend paid to shareholders: figures for BT: breakdown of BT’s markets. Indirect impacts £732 million. • Total Supplier Expenditure: £3.7 billion All data relate to our activities during the 2004 BT’s indirect economic impacts are: • Net debt reduced from £9.6 billion to • Total Capital Investment: £2 billion financial year. £8.4 billion. • Income and employment
Customers • Total interest payable on continuing activities: • Growth and productivity Induced impact £941 million. BT turnover of £18,519 million, • Regional development Further indirect (or ‘induced’) impact is created • Total amount falling due to creditors within when incomes created directly and indirectly by distributed as follows: • Knowledge economy. one year is £8,548 million. BT are spent in the economy. People employed BT Retail: £12,630 million directly and indirectly will spend part of their More details on page 83 of the 2004 Annual incomes within the economy – for example on BT Wholesale: £ 3,445 million Report and Form 20-F. food, clothing and entertainment – which BT Global Services: £2,410 million represents an extra source of employment. Governments Other: £34 million The DTZ Pieda Consulting report estimates • Total taxes paid to governments was Total turnover is boosted to £18,914 million these induced impacts to be £3.4 billion of £539 million, comprising £568 million on the when our share of associates’ and joint income and 173,780 employees. profit before taxation, goodwill amortisation ventures’ turnover (£395 million) is added. and exceptional items, offset by tax relief of Find more details in the BT profit and loss £29 million on certain exceptional charges. account on page 24 of the 2004 Annual Report • Non-UK taxation: £174 million. and Form 20-F. R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A E S E S
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BT Social and Environmental report | Economics 1 Economics continued
Total impact Growth and productivity contribution of investment in ICT capital to GDP factors, such as the regulatory environment, growth in the UK was under 0.3% in 1990 – the availability of skills and organisational The total economic impact of BT in terms of One of our main indirect economic impacts is 1995, and over 0.5% between 1995 – 2001. change, affect the ability of firms to seize the income generation and employment is on economic growth and the productivity of benefits of ICT. calculated by adding the direct, indirect and individual enterprises, industrial sectors and the ICT and productivity induced impacts: wider economy. The OECD concludes that it is too early to tell Some characteristics of ICT – such as increased for certain how the role of ICT growth and The character of these impacts can be best Total Income and Employment bandwidth and processing power and the productivity performance will develop in the first understood using data for the UK Information Impact of BT in the UK plummeting cost of communications – enable decade of the 21st century. But some general and Communications Technology (ICT) sector. organisations and economies to become more trends are emerging to suggest that ICT will Income (£ billion) Employment There are two main types of impact: efficient and productive. continue to drive growth. Direct 2.974 122,423 • The ICT sector – its size and technological The evidence for this is strongest in companies For example, the OECD cites evidence that Indirect 2.616 135,550 progress – has a direct impact on national- where ICT is used to innovate in response to those sectors that have invested most in ICT – level growth and productivity figures. client demand, customise services, expand such as financial services, health, retail, Induced 3.354 173,780 product ranges and lower costs in procurement, business services, wholesale trade – have • The use of ICT by companies to improve their Total 8.944 431,753 production, selling and distribution. experienced more rapid growth in productivity own efficiency and productivity has a than those that have not. ICT is more Source: DTZ Pieda Consulting, February 2004 significant impact on national-level growth For example, the UK Broadband Stakeholder appropriate for some sectors than others and is and productivity. Group highlighted that direct internet bookings The table shows that BT’s activities generate not suited to all business models – agriculture, to airline carriers, combined with ticketless income of £8.9 billion and support the mining, manufacturing, construction have ICT sector travel arrangements, reduced an average employment of 431,753 people throughout benefited less from the ICT revolution. cost of sale from around £9 per ticket to less the British economy – almost 1.7% of all jobs Information available from the UK Office of than £0.20. This is supported by the OECD’s figures for the in the UK. National Statistics enables an assessment of the contribution of various sectors to aggregate impact of ICT activity on the UK economy. Many economists use this type of example to productivity growth in the UK between 1996 Notes argue that ICT has increased productivity and The rapid growth in both ICT production and and 2001: global competition while holding down inflation, • These figures take account of ‘leakages’ of investment was an important contributor to UK allowing higher economic growth without the • ICT manufacturing 0.1%. expenditure from the local economy in the economic growth and productivity growth need to check inflationary pressures with higher form of non-UK purchases, savings and throughout the1990s. • ICT producing services (for example, interest rates. national taxes. They are calculated using telecommunications) 0.2%. In 2001 (most recent data available), the ‘input-output’ tables showing the flows of Statistical evidence for ICT increasing contribution of ICT to UK Gross Value Added • ICT using services (e.g. financial services, expenditure between sectors of the economy productivity across the economy has been hard (GVA) was £63.5 billion of a total of retail, etc) 0.8%. and allow the impact of a given level of to identify. As Diane Coyle and Danny Quah £880.9 billion – 7.2%. expenditure on income and employment to argue in Getting the Measure of the New The OECD concludes that there is a range be calculated. Indirect impacts are not The contribution of the telecommunications Economy, a report from the Work Foundation’s of factors that contribute to productivity. restricted to the ‘first round’ effect of portion of the ICT sector grew from around iSociety project, top-line productivity figures Countries and sectors that have invested purchases by BT. Suppliers to BT will purchase £12.5 billion in 1992 to around £21 billion often show little of this impact. Coyle and more in ICT in the 1990s have often also some of their inputs from other suppliers in in 2001. Quah call this the ‘productivity paradox’: seen the largest increase in productivity growth the UK and so on. in the 1990s. GVA for the ICT sector grew by 109.8% one can see the evidence of the computer revolution everywhere apart from in the • The study is based on BT employing between 1992–2001, compared with growth of productivity figures. Regional development 122,423 people in the UK, either directly by GVA for the whole economy of 61.2 % over the BT or as contractors. same period. Coyle and Quah argue that it will take time, Against a backdrop of potentially enhanced economic growth, many countries and regions This money has been distributed to various indeed decades, for ICT to filter through into are increasingly looking to the productivity stakeholders: the whole economy. We are only beginning to see the wholesale restructuring of business, benefits of ICT to improve their • Employees (67.3%; £42.8 billion) – highly industrial and organisational models made competitiveness. R QUA L R QU A L T E I T T E I T Y Y I S I S G A labour-intensive G A E S E S possible by the diffusion of ICT. R S R S
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BT Social and Environmental report | Economics 2 Economics continued
The UK Government set these targets for 2005: Migrations?’, an independent study A digitally literate workforce commissioned by BT exploring the social and • Everyone in the UK to have internet access. There is growing concern in Europe, which we economic impacts of offshoring through the lens share, about the gap between supply and • All Government services to be online. of corporate social responsibility. The paper demand for information technology covers issues such as protectionism and • The most extensive and competitive professionals. broadband market in the G7 group international trade, job creation and the impact This is why we: of countries. of call centres on local economies. • Work with the European Union to improve the In turn, the UK Regional Development Knowledge economy supply of ICT professionals. Agencies see e-business as key to economic development. The South West Regional We are living in a knowledge economy, in • Encourage women and ethnic minorities into Development Agency has worked in partnership which value is as much a function of ideas, ICT careers. with BT to spread broadband to remote rural creativity and imagination as it is of traditional • Promote ways that ICT can enable more areas with considerable success. A total of capital investment. flexible working patterns, bringing excluded 14,500 broadband connections were set Critical to the development of the knowledge people into employment. up in 20 months, bringing the uptake of economy is the roll-out of ADSL broadband broadband in Cornwall to 7%, a full 2% higher technology. Broadband means a high-speed But the challenge is wider than simply meeting than other similar rural areas. The project has connection to the internet that is always on. the demand for information technology delivered 1,200 jobs and a £20 million boost to It is called broadband because it has a much professionals. Digital literacy is becoming an regional GDP. larger capacity to send and receive data than increasingly essential element of basic a standard telephone connection. employability. Globalisation Broadband will bring its own specific economic For this reason, we have launched a digital The growth in communications technology has impacts, which are expected to be most marked inclusion campaign – Everybody Online – to also enabled previously undreamed-of business, in the Small and Medium-sized Enterprise (SME) support the UK Government’s aim to give all personal and cultural connections between sector – as in most cases small businesses citizens online access by 2005 and demonstrate billions of people. cannot afford dedicated leased lines into the how communications can help improve society. The 1999 United Nations Human Development internet, making broadband the only option for The campaign aims to increase access to Report took globalisation as its main theme and high-speed internet access. communications technology in underprivileged focused on the potential of the internet for More information about the social, economic areas and to deepen the understanding of the human development as well as exclusion. and environmental impacts of broadband are causes and effects of the digital divide and how they may be addressed nationally. The report recognised not just the potential of available in the Sustainability and Digital the internet to drive efficiency improvements, inclusion sections of our online Social and Further details are available in the Digital but also its potential to foster major advances in Environmental report. inclusion section of our online report. health and education, to empower small As the largest capacity telecommunications businesses and organisations, and to provide network in the UK we have an important part remote communities and poorer countries with to play in enabling the knowledge economy. easy and cheap access to information. This economy is leading to rising demand Crucially, however, the report also recognised for advanced data, mobile, broadband and that these advantages are not automatically internet services. Consequently we are building going to be delivered to those who need them a new national network, capable of meeting most. For this reason, digital inclusion has been customers’ needs now and in the future. selected as one of the main sections of this site. We are refocusing our investment away from One particular trend made possible by improved today’s technology in order to spend more on future technologies. R QUA L communications technology is ‘offshoring’ R QU A L T E I T T E I T Y Y I S I S G A G A E S E S
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BT Social and Environmental report Human rights
We base all our relevant BT policies performance against the Global Compact Supply and use chains But we believe that, ultimately, developments principles – see our online Global Compact in ICT will have a beneficial impact on human and procedures on the principles set Our impact on human rights has two aspects: report index. rights. BT will continue to play a key part in out in the United Nations Universal BT products and services • The supply chain – the working conditions the debate. Declaration of Human Rights, under which the products and services which sets “a common standard The best way to implement our commitment purchased by BT are produced Privacy to human dignity is to enhance the positive of achievement for all peoples and The use chain – the effect of the use of our Article 12 of the Universal Declaration of impact our products and services can have on • all nations”. products and services (after they have been Human Rights states: human rights. sold) on human rights. “No one shall be subjected to arbitrary interference We are committed to protect and Freedom of expression is a fundamental human with his privacy, family, home or correspondence, right, and a critical means to promote human enhance the human dignity of every Supply chain nor attacks upon his honour and reputation.” rights in general. Greater access to information BT employee and everyone who has It is our aspiration that the working conditions and communications technology (ICT) can While privacy is not a new challenge, in our supply chain meet the standards of the dealings with BT. be a source of openness in otherwise closed developments in ICT have given rise to some Universal Declaration of Human Rights and the societies. ICT provides an extremely fast, new dilemmas. Here we describe our approach to the efficient and safe way to disseminate International Labour Organisation Conventions. human rights issues, under these information and can be invaluable to See more at Human rights in the supply chain in Protecting online customers organisations dedicated to promoting the Suppliers section of our online Social and headings: We have to balance giving a tailored customer human rights. Environmental report. • Principles service with protecting customer privacy. However, we recognise that worldwide respect Use chain For example, if BT customers in the UK wish to • BT products and services for human dignity is more than just a click away. use our website to manage their account, check • Supply and use chains The main concern here is the misuse of our Like many of the rights enshrined in the products and services, for example using the their bill and buy various products or services, • Privacy Universal Declaration of Human Rights, new internet for crime. Our ‘Hot Topics’ Abuse of they have to register first – which involves technological advances bring new challenges to, • Freedom of expression. the Internet and Virtual Vice cover these issues the disclosure of certain personal information. and interpretations of, free expression. and are available as download PDFs from the We have a specific privacy policy covering Principles An example is the misuse of the internet by Hot Topics section of our online report. We will this situation. criminals. We address this major concern in two continue to carefully monitor and address these BT also has a detailed Acceptable Use Policy We use the Universal Declaration of Human of our independently written ‘Hot Topics’: concerns where possible. that shows how we protect the privacy of our Rights (www.unhchr.ch/udhr/index.htm) to online customers. This is balanced with our ensure all our policies enhance human dignity. • Written by Solitaire Townsend of independent Other use chain issues are privacy and freedom expectations of customers’ behaviour towards But new challenges and opportunities arise consultancy Futerra, Abuse of the Internet of expression, both of which are discussed later each other when using our services. all the time, and we can’t rely on policy alone considers issues around the extreme abuse in this document. to make sure we address human rights of the internet. This is available as a The Modern Communications and Quality of Customers’ preferences can be tracked online issues properly. download PDF from the Hot Topics section Life ‘Hot Topic’ addresses the question of to offer personalised services and special of our online report. offers. But customers may choose to opt out All our employees have access to the Universal whether communications technology has made of this service. Declaration on our intranet, and an outline of • Written by James Wilsdon and Paul Miller of life better or worse. You can download a PDF UK think-tank Demos, Virtual Vice examines version from the Hot Topics section of our our approach is included in the guidance Protecting all customers document accompanying our Statement of BT's approach to issues of concern such as online report. Business Practice. hacking, copyright infringement and spam. On the positive side, communications We know that privacy is very important to This is available as a download PDF from the all our customers, not just those online. We are in contact with many expert groups and technology offers new opportunities for Hot Topics section of our online report. BT complies with, and is registered under, the information sources that can help us implement education, learning and development – issues Data Protection Act in the UK, and we take all our commitment to human dignity and improve We hope that the economic potential of e- that are examined in more detail in the Digital reasonable care to prevent any unauthorised our procedures if necessary. commerce and the increased transparency inclusion section of our online report. access to personal data. R QUA L brought about by new technologies will have an R QU A L T E I T T E I T These are complex issues. With so many Y Y I S I S G A G A E S For example, we are a signatory to the UN’s E S
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BT Social and Environmental report | Human rights 1
Human rights continued
Customers are also able to screen out most Protecting children • Written by James Wilsdon and Paul Miller of direct marketing calls by registering with the UK UK think-tank Demos, Virtual Vice examines A key challenge is to balance the right to Telephone Preference Service BT's approach to issues of concern such as freedom of expression with the need to protect (www.tpsonline.org.uk). British hacking, copyright infringement and spam. children online. Telecommunications plc (BT) operates under a A download PDF is available from the Hot licence granted by the Secretary of State for BT is a board member of the Internet Content Topics section of our online report. Trade and Industry, under section 7 of the UK Rating Association (ICRA), (www.icra.org), an As the issues develop and technology advances Telecommunications Act. This means we only international organisation that aims to protect we will update this part of our report with our use personal details for the reason that they children from potentially harmful material and most recent activities to combat misuse of the were entrusted to us and don’t pass them on to protect free speech on the internet. internet while protecting freedom of expression. other parts of the business. The ICRA asks web authors to give details of Sometimes personal details do have to be what is and is not present on their site. From disclosed – for example, in the prevention or this, the organisation generates a content label detection of a criminal offence. (a short piece of computer code) which the author adds to the site. It enables users, BT employees especially parents of young children, to set their internet browser to accept or reject access to We have several policies and codes relating to certain types of content. The key point for the use of BT telephones, email and the freedom of expression is that ICRA does not internet by BT staff. itself rate internet content – the content All staff have been made aware that email and providers do so if they wish to participate. internet access may be monitored and that Our own programme, BT Safe Surf, certain types of message and use of the internet (www.btsafersurfing.com) gives detailed are considered inappropriate while at work and information for parents and provides user- using our system. This is common business friendly training for children. practice, and BT does allow reasonable use of personal email. Content provision Freedom of expression BT acts on complaints about content hosted on our servers. We sit on the funding council Article 19 of the Universal Declaration of of the UK Internet Watch Foundation, Human Rights (www.unhchr.ch/udhr/index.htm) (www.iwf.org.uk), which notifies us of illegal states: content stored on our servers and webspace. “Everyone has the right to freedom of opinion and We have contributed to the work of the expression; this right includes freedom to hold Independent Committee for the Supervision of opinions without interference and to seek, receive Standards of Telephone Information Services and impart information and ideas through any (ICSTIS), (www.ictsis.org.uk). Part of ICSTIS’ media and regardless of frontiers.” remit involves registering certain types of phone Freedom of expression is a fundamental human services in the UK, such as dating services, right and a critical means of promoting human betting, fundraising and services of a sexual rights in general. nature. This safeguards the right to freedom of But technological advances bring new expression while ensuring protection of users, challenges to the right to freedom of expression legality and quality. and new interpretations of it. We have published two ‘Hot Topics’ that
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BT Social and Environmental report Stakeholder dialogue
We have important relationships with a Stakeholder engagement Leadership Panel Stakeholder influence range of stakeholders. While no formal We engage with our stakeholders in different The Leadership Panel is an external advisory It is important to be clear about what BT is process has been used to identify ways. Here are some examples. group of experts renowned for excelling in trying to achieve with each stakeholder group stakeholders, over time it has become their field. The panel has six members: and to deepen our understanding of what they Customers expect from us. clear that six groups are particularly • Jonathon Porritt, Chair of the Panel and crucial to the success of our business: • Consumer Liaison Panels Director of Forum for the Future, a UK This is why our Statement of Business Practice sustainable development think-tank sets out the specific aspirations and • Surveys of customers on quality of service and • Customers commitments that apply in our relations with future expectations • Mark Goyder, Director, Centre for Tomorrow’s our customers, employees, shareholders, • Employees Company, a UK think-tank • Telecommunications Advisory Committees. partners, suppliers and communities. • Suppliers • Rob Lake, Head of SRI Engagement BT’s performance against these specific Employees and Corporate Governance, Henderson • Shareholders principles, aspirations and commitments can be Global Investors • Partners • Our annual employee survey found via our site index based on the Statement • Elizabeth Laville, Director of Utopies, a of Business Practice. • Relationships with trade unions • Community. Paris-based sustainability consultancy It is difficult to make direct links between a • European Consultative Works Council. • Yve Newbold, independent advisor specific consultation exercise and a particular company decision. Our Statement of Business Practice, The Way Suppliers • Jorgen Randers, Professor, the Norwegian We Work, sets out the aspirations and School of Management, Oslo. But we try to show, in the various sections of commitments which apply in our relationship • Our annual supplier satisfaction survey The purpose of the panel is to encourage our report, how specific stakeholder groups do with each stakeholder group. • Ethical trading forums with key suppliers and innovation and leadership on sustainable influence BT’s policy, strategy and practice. For industry colleagues. The more positive and mutually beneficial these development and corporate social responsibility example, we show: relationships are, the more successful our in BT. It meets four times a year and provides • How our Consumer Liaison Panels have Shareholders business will be. independent guidance and expert advice. helped shape our Next Generation Contact The Investors section of our report was Here we discuss: Its responsibility covers key areas of CSR Centre strategy for call centres developed following close consultation with strategy and performance, including policy, • How BT managers work with their teams to • The various ways we engage with the different analysts specifically interested in the social and performance measures, targets, future analyse the results of the annual employee stakeholder groups environmental performance of companies. objectives, governance, stakeholder survey and carry out action plans • Our Leadership Panel BT always values feedback from shareholders relationships and external communications. • How ethical trading forums set up with our and aims to inform investors of the issues we • Stakeholder influence The panel provides an annual independent suppliers are leading to an industry-wide face. More details can be found in Services comment for inclusion in our report. approach to promote human rights through • Online debates for Shareholders. the supply chain You can also provide feedback on our social and environmental performance by e-mailing us at Partners • How regular communication with socially responsible investment analysts led to further [email protected]. A description of our relationship with joint disclosure about the links between CSR and ventures and wholly owned subsidiaries on the BT strategy social and environmental issues is given in the Statement of Business Practice section • How stakeholder dialogue was used in of our report. the selection of non-financial key performance indicators Community • How stakeholder dialogue led to us to choose Recent surveys of our stakeholders tell us that education and better communications as key
R QUA L R QU A L themes of our social investment programmes. E I education should be a top priority for our social E I T T T T Y Y I S I S G A G A E S E S
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BT Social and Environmental report | Stakeholder dialogue 1 Stakeholders dialogue continued
Influencing the BT Better Other content World website When defining the content of each section of Stakeholder consultation has significant bearing this site, we consider carefully the results of on the content of this site. consultation activities. For example, the Investors section was developed following close Hot Topics consultation with analysts specifically interested in the social and environmental performance of Using selection criteria approved by our companies. The Customers and Employees Advisory Panel, we analyse various opinion polls, sections cover issues that we know to be of company stakeholder consultations and press concern to these groups, such as services for coverage to identify issues of concern to BT and customers with special needs and our call centre society. As a result, ‘Good Migrations?’, ‘Abuse reorganisation programme. of the Internet’ and ‘the Digital Divide’ were included among our Hot Topics. In June 2003, the remit provided to our verifiers was extended to include assurance against the Previous Hot Topics selected in this way AA1000 Assurance Standard. included Modern Communications and Quality of Life, E-Business and the Environment, and The underlying basis of this standard is Mobile Phones and Health. inclusivity. It requires our report to reflect the concerns of stakeholders, both in its content Indicators and in terms of demonstrating BT’s response to these concerns. In June 2003, we established a small number of non-financial key performance More details on how we have applied AA1000 indicators to provide an overview of BT's Assurance Standard are found in the About the social and environmental performance. Report section of our website. It followed a consultation exercise involving report users, such as investors, customers and employees, and outside experts, such as the BT Leadership Panel. In deciding what other indicators to use in the report, we chose to follow the 2002 Global Reporting Initiative (GRI) Guidelines. As a multi- stakeholder initiative, these guidelines provide the most comprehensive and independent insight into the interests and concerns of our stakeholders. We also follow the pilot version of the Global Reporting Initiative Telecommunications Sector Supplement.
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BT Social and Environmental report Sustainability
The concept of sustainable for a description of our CSR governance • Tools should be developed to evaluate the economic networks needed to bring sustainable development has increasingly come to framework and the recent introduction of our environmental and social impacts of ICT use development to emerging economies. CSR health checks. represent a new kind of world, where • CT should be integrated into the mainstream The use of BT’s own products and services economic growth delivers a more just However, sustainability is not just about of sustainable development. enables us to reduce our consumption of finite and inclusive society, at the same time having the right systems, checks and balances materials and to improve the work-life balance in place. BT aspires to lead by example, and this Information and Communications Technology of our people. as preserving the natural environment section considers the practical steps we are (ICT) and sustainability Here we identify some of the key sustainability and the world’s non-renewable taking to raise awareness of and participation impacts of ICT, using quantified examples from in sustainability. ICT brings many potential benefits to society. resources for future generations. our own experience. These are: In its submission to the World Summit on The successful realisation of sustainable A sustainability vision Sustainable Development the Global e- • The impact of phone and video-conferencing on travel development requires a degree of Information and Communications Technology Sustainability Initiative highlighted how: international consensus and a great deal (ICT) drives productivity and economic growth. • ICT provides the infrastructure of the • The social and travel implications of more of multi-institutional support. For this growth to make a direct contribution to knowledge economy and can enable other flexible work-styles sustainable development it must be managed in sectors to move towards sustainability • The impact of e-Business. No individual country, business or other the right way. If not, it will lead to further inequalities and greater consumption. • Low penetration of ICT in less-developed For more information on work-life balance, see organisation can become sustainable on economies inhibits the achievement of the Employees section of our online report. its own. But it can become more The following are recommendations to sustainable social and economic governments developed by the Global sustainable than it was, and it can make development goals Conferencing e-Sustainability Initiative (GeSI) for the a valuable contribution to make the World Summit for Sustainable Development • The internet enhances the capability of those Conferencing by video, phone or the web is world more sustainable. (WSSD) and World Summit for the Information with access in the fields of education and more time and cost-efficient than meeting in Society (WSIS): health, as well as providing new opportunities person. It improves the quality of life for those Here we discuss: for economic activity and democratic who travel frequently. It’s also a major benefit • Markets should be open to new technologies participation for BT’s 7,900 plus home-based workers and a • BT’s approach and new approaches • All sectors can improve the impact of their growing number of so-called agile workers, • A sustainability vision • Governments should aim for harmonisation of operations, reducing their use of resources those who occasionally work from home. • ICT sustainability impacts standards and stable regulatory frameworks through smart energy management, more BT Conferencing provides all BT’s internal • Public-private partnerships should be efficient transport, transport substitution, phone, video and e-conference facilities, • Sustainable Development in dematerialisation, electronic commerce and as well as providing conferencing solutions Broadband Britain encouraged to develop infrastructure and applications in areas where the market needs substitution of services for products. for customers. • BT raising awareness on sustainable support, eg, environmental protection development (climate mitigation, resource efficiency, ICT sustainability impacts Impacts of conferencing • BT working in partnership. monitoring and information gathering) and “ICT is a wonderful tool for creating value, creating We conduct regular surveys to assess poverty eradication an inspired work environment and an opportunity the economic, social and environmental BT’s approach • Countries at all stages of economic for people to develop themselves.” performance of our phone conferencing development should recognise ICT as an services. In our online Social and Environmental report Ben Verwaayen, BT CEO, 2002 integral component of sustainable we identify and quantify our social, economic In the financial year 2003, a representative development strategies, not merely as a Communications technology not only benefits and environmental impacts and set targets sample of BT employees was surveyed about valuable industry in its own right business, but the people doing business. ICT is to improve. changing the way business is done, especially their use of conferencing. The response group • Relevant international and regional is broadly representative of BT in terms of We use the term corporate social responsibility through the internet and wireless technologies. institutions should develop a strategy for the business unit and age, but includes a higher (CSR) more often than sustainable development The technologies provide the possibility of use of ICT for sustainable development and as productivity gains similar to those of the proportion of managers and women. R QUA L and consider CSR to be the voluntary actions a R QU A L T E I T T E I T Y Y I S I S G A G A E S an effective instrument to help us achieve the E S R S R S industrial revolution.
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BT Social and Environmental report | Sustainability 1 Sustainability continued
Impacts of telephone conferencing: survey results who felt teleworking had a negative effect on • New regulations requiring employers to prove their lives. that particular jobs are not suitable for flexible Economic Environmental Social Paradoxically, although people work longer working (and therefore teleworking). • Conferencing is reducing • Reduces travel by at least • Conferencing creates hours, they also feel their quality of life has The main UK surveys were carried out with BT’s travel costs 91 miles a year for car users personal benefits for BT been enhanced. This is because less commuting the UK airports company, BAA, and BT. The and 94 miles for train users people. Three quarters of frees time for work and private life and also • 66% of the respondents said two companies, along with four other respondents said greatly reduces stress. Also, teleworking conferencing was essential • Frees up road space and organisations – Acre (a small non-governmental conferencing improved the enables people to multi-task. They can, for to their job, and over 80% seats on public transport at organisation), Bradford Council, East Midlands quality of their lives. Only example, do domestic jobs during work breaks. believed it had improved the busiest times of day Electricity and Word Association (a small 2% disagreed This gives them more quality time at evenings their performance. (almost half of the avoided internet company) – were also the subject of trips would have taken place and weekends. case studies for the project. One respondent’s comment at that time) • summed up most people’s SusTel UK Here we summarise the main findings of the survey in four categories: • Alleviates congestion in view of teleconferencing: The SusTel UK report summarises the UK results London (about a third of the • Personal and social benefits "Travelling less = more time at of the SusTel survey, a European Commission avoided meetings would • Downsides of telework home = balance of home/work research project on the social, economic and have been in the capital) • Key economic benefits priorities = less stress = better environmental consequences of telework. 2 • Travel reduction. • Reduces harmful CO performance." emissions. It is estimated In the autumn of 2002, the SusTel team that each conference call For more information on conducted 30 case studies and a total of six Personal and social benefits saves a minimum 22.05 kg teleconferencing with BT, surveys, one each in Denmark, Germany, • The vast majority of respondents felt that they of CO2 and that all see BT Conferencing Italy and the Netherlands and two in the had had a good quality of life in the previous conference calls save at (www.conferencing.bt.com). United Kingdom. 12 months, and that teleworking was having least 20,060 tonnes of CO2 SusTel, in collaboration with BT and other a positive effect a year. companies in Europe, has developed the Most respondents felt that they had a good Telework-Sustainability Assessment Tool (SAT). • work-life balance and that teleworking had This provides a simple way to assess and positive impacts on partners, children and Flexible work-styles SusTel BT Pilot Report improve the sustainability of telework adult dependants Technology enables flexible working The report summarises an online survey, programmes in organisations. solutions that suit the needs of individuals carried out in October 2002, of staff registered Most respondents felt that teleworking had a The SAT provides: • and businesses, giving people the freedom to with Workabout, BT’s official teleworking positive influence on career development, work while away from the office, with all the programme. Answers were received from • A quick means of understanding and although a minority (15.5%) of BT resources they need to do their jobs effectively. 1,874 people, a response rate of 36.5%. assessing the economic, environmental respondents disagreed. and social impacts of actual or proposed We have supported and sponsored the For the full data, see the SusTel Pilot Report in teleworking initiatives Teleworking downsides development of work-style choices for our the Reports section of our online Social and people for a number of years. More than 7,900 Environmental report. • Information and ideas on how to improve • Many respondents felt their working hours had BT people are full-time home-based workers, in areas such as resource consumption increased, sometimes by more than 11 hours The main findings of the survey are: experiencing personal benefits while reducing or transport a week the environmental impact of their commute. • The majority of respondents felt that they had • Links showing how teleworking impacts on Respondents felt isolated from work a better life using teleworking than if they • Here we discuss the pros and cons of more than one aspect of an organisation, for colleagues and, to a lesser extent, from non- commuted to an office. Many reported an teleworking as identified by two linked studies: example, reducing commuting can greatly work contacts – something which did not increased contribution to domestic and reduce stress and improve work-life balance. matter to most respondents but did for a large • An internal BT survey, which acted as a community activities, while a small number minority of BT staff pilot for believed that they would be unable to do their SAT will also help organisations use teleworking
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• Nearly half of the BT respondents who e-Business (e-BT) Customer solutions Paperless payments felt that their performance had improved Increased use of electronic transactions in BT Customers can pay their bills by direct debit believed that teleworking had made a has clear environmental benefits. Online Directory without completing any paperwork. This can be major contribution set up on the phone or on our website. Each Since the financial year 2000, we have been BT’s online directory enquiries provide paperless sign-up saves us mailing one paper • Three of the six case study companies showed transforming BT into e-BT, by reducing the telephone numbers. Users are entitled to ten direct debit instruction, one leaflet explaining major reductions in office space requirements. number of paper-based transactions and free searches a day and can search by name, payment options and one return envelope – as Word Association, a small internet company, trading more electronically. This has reduced town or the initial letters of the post code. well as the original envelope. gave up its central office entirely to become a the use of paper, ink and other stationery ’virtual’ organisation, saving £10,000 a year – the use of copier paper during this period has eBilling For more information on residential & business • Three of the six companies found that fallen by 42%. BT produces millions of bills every year, using billing, see http://www.bt.com. teleworking reduced absenteeism and job millions of sheets of paper. We are developing turnover. Almost three quarters of both BT Paper consumption ways to use our technology to reduce the Sustainable Development in and BAA respondents reported that they Our billing and telephone directories operations amount of paper we use and to improve Broadband Britain worked when illness or travel disruption would customer service. account for most of our print and paper use. This year we asked Forum for the Future have prevented them from going to an office. The use of paper in phone books has risen by (www.forumforthefuture.org.uk) to look at 30%, compared with the 2003 financial year. Business online paper-free bill broadband from a wide perspective, that of Travel reduction This is because the books, which are reprinted The advantages of online paper-free billing are: sustainable development. Taking social, The survey confirmed previous findings that every year and delivered to every UK household, economic and environmental concerns together, • It saves paper teleworking reduces commuting travel. SusTel now include a classified advertising section. to ask how the roll-out of broadband internet went further by offsetting the extra journeys But we have reduced the use of paper • Itemised call details can be sorted and access will affect the UK’s ability to deliver a people make as a result of working from home-. elsewhere. Compared with the 2003 analysed by customers better quality of life and a better environment This showed that: for all in the future. financial year: • Online VAT statement, supported by Customs • Non-work-related journeys resulted in mean • Copier paper down by 187 tonnes (13%) and Excise, can be printed The roll-out of broadband is a strategic priority additional weekly travel of 60 miles at BT and for BT and therefore has a significant impact on • Customers can download billing data to 16 miles for BAA staff • Office paper supplies (e.g. forms) down by our contribution to sustainable development in their PC. 100 tonnes (45%) the UK. However, set against weekly commuting • In the 2004 financial year, BT ran a pilot with savings of 253 miles at BT and 61 miles at Increased use of email and e-business is often The report concludes: the Woodland Trust, the UK’s leading woodland BAA , teleworking still results in considerable believed to lead to increased local printing and conservation charity, to encourage business Large positive economic impacts are expected travel reductions. greater use of office paper and other consumables. This is not the case in BT. Since customers to use paper-free billing. from the roll-out of broadband by: Teleworking saved large amounts of time at the 2000 financial year, internal printing has For every small business that signed up for • Enabling more efficient business BT with 64.7% of BT respondents saving six or decreased by 42% and the use of paper forms eBilling, BT bought a native sapling, to be processes – most marked in the small more hours a week, and 22.9% saving 11 or by 70%. planted by children as part of the charity’s business (SME) sector more hours per week. school’s planting programme. When our billing and phone book activities are • Stimulating economic growth – through Conclusions included, there has been an overall increase in The response to this offer exceeded our productivity gains and access to the paper use of 10% compared with the 2003 expectations and resulted in the planting of global market. Teleworking in the UK appears to bring net financial year. nearly 2,000 native trees by the Woodland The internet is expected to have a significant economic, environmental and social benefits for Trust. Lessons from the pilot have been fed into impact on society, and the arrival of broadband organisations and the people who work there. our plans for enhanced payment options in the accentuates and slightly modifies that by: There are some downsides, such as increased 2005 financial year. working hours and some concerns about career • Allowing more efficient delivery of We are running a similar project with Future development. educational, health and other public services Forests, a UK company promoting tree planting More information and full data are available as a QUA QU A E R L E R L Offering the opportunity to enhance and I I • T T T T to offset carbon dioxide emissions, whereby BT Y Y I S I S G A G A E S E S R S download PDF of the UK SusTel Summary R S
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However, the environmental effects of • Enlightened Values (2002) offers a practical Partnerships The future broadband are more mixed. business case for accountability and We often work with external partners to deliver “Advanced telecommunications services are one of stakeholder engagement Reductions in travel by teleworkers and more BT-branded projects and programmes. the few achievements of our consumer society that effective use of office accommodation are • Adding Values (2001) provides an insight into could be accessible to, and used by every person We get many invitations to participate as a offset by: why and how to account for a company’s on earth without exceeding sustainable limits on partner in activities co-ordinated by external economic performance and effects resource-use and environmental impact.” • The increase in energy consumption by BT agencies. We select those where we have • Possible changes in consumer behaviour • Variety and Values (2000) gives a review of something to offer and gain, especially through Peter Johnston of the Information Society globalisation and its linked effects on cultural mutual learning and the exchange of ideas. Directorate of the European Commission • Waste associated with consumer demand for and bio-diversity loss ICT products. Particularly relevant would be our: To achieve this goal, we need: • Changing Values (1999) considers the role of • Support for the United Nations Global • Networks powered by energy derived from A PDF download of the full report is available in business in a sustainable society. the Sustainability section of our online report. Compact, an international commitment to renewable sources All of these papers are available as download principles on human rights, labour and civil • Equipment and cables made from non-oil PDFs in the Original Thinking section of our society Web-based environmental derived plastics (probably coming from Better World website. management software • Support for the Global Reporting Initiative in agricultural products) its development of sustainability reporting In partnership with Entropy International, a Participation • Polymeric conductors to be used in place guidelines management systems and software company, of metals We often participate in discussions on the role we have developed a web-based environmental • Inputs to multilateral dialogues via the Global of business in sustainable development and • Fibre-optical switches and computers (as glass management solution. e-Sustainability Initiative (GeSI), an ICT sector sponsor events and conferences on the subject. is derived from a plentiful supply of sand, initiative promoting technology that fosters The software is fully integrated with a BT fibre-optic components could reduce the need We are members of a number of organisations sustainable development, and the European managed application enabling it to be web for metals and conventional semiconductor that attempt to influence public policy on Telecommunications Network Operators based with full operational security and external materials). matters connected with corporate social (ETNO) hosting. The solution can be used by anyone in responsibility (CSR) and sustainable Our services can also help to build a more any location with web access. • Work with the UK Centre for Economic and development, such as: productive and inclusive society with Environmental Development (UK CEED), an Designed to ensure full compliance with ISO improved democratic participation, more • CSR Europe (www.csreurope.org) independent charitable organisation aiming to 14001, EMAS, ISO 9001 and OHSAS 18001, efficient provision of health and education raise environmental standards through Envoy covers environmental, quality, and health • Forum for the Future services, unlimited access to other people research and policy development, and and safety (EQS) management and monitoring. (www.forumforthefuture.org.uk) and to knowledge. SustainIT. • Green Alliance (www.green-alliance.org.uk) Raising Awareness • Business for Social Responsibility We want to understand our impact and (www.bsr.org) stimulate debate on sustainable development and corporate responsibility. To do this, we • Global e-Sustainability Initiative need to consult and talk to people, and promote (www.gesi.org) awareness and dialogue on the issues. We respond to formal consultations such as the UK Government sustainability strategy and the Publications EU green paper on CSR. We produce a series of occasional papers BT is keen for the Government to make changes designed to address the complex inter- to the legal and fiscal frameworks, which will relationships between companies and society. enable business to survive and flourish from The papers, which aim to stimulate debate sustainable business practice. For more rather than provide definitive answers, include: QUA information, see Public policy in the Business QU A R L R L T E I T T E I T Y Y I S I S G A G A E S E S
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BT Social and Environmental report BT and Digital inclusion
Access to information and New approaches This is expected to enhance the productivity organisational networking.’ of business and regions and the economy as communications technology can We are developing new marketing approaches ‘Broadband has helped to overcome social a whole. Other benefits include better improve people’s lives and open doors to ensure we spread the benefits of broadband barriers between users and had a very education (from the provision of online as widely as possible. For example, a pioneering significant or significant impact on the to education, jobs, entertainment and curriculum materials) and decreased congestion project, called ADSL Exchange Activate, is community – although the forms this takes personal contacts. But many people do (from more teleworking). designed to bring broadband to small varies between organisations’ not yet have the opportunity or the communities. It relies on sponsors – parish necessary skills to use the technology. Education This report is available as a PDF download in councils, town councils and regional bodies – our online report. to promote demand. Broadband has the potential to distribute We want everyone to participate in high-quality curriculum materials to all pupils. Sustainable Development in Broadband By 2005, BT will have invested around BT’s LearningStream 8 and LearningStream Britain, Forum for the Future March 2004. the digital revolution. Here we discuss £22 million in setting up a total of 35 public 34 services have been designed specifically This report is available as a download PDF in the how we promote digital inclusion in private partnerships across the UK to bring for education. They can be used by schools, Sustainability section of our online Social and three ways: broadband to areas where exchanges had not colleges and public learning centres to Environmental report. been enabled. • Provide greater access to create online learning communities and share ‘Broadband internet access provides the communications technology In Cornwall, UK, a European Union funded resources. They can help to build learning opportunity to enhance and multiply social ties, – Connectivity partnership project, ACTNOW, offers communities by linking schools, colleges, though in some cases may also contribute to subsidised packages to small businesses. libraries, learning centres and Citizens social isolation. • Encourage communication and its Further information is available at: Advice Bureaux. use for social and economic benefit www.actnowcornwall.co.uk Fast, always-on internet access makes a wide – Content In the financial year 2004, we launched a trial range of applications more user-friendly and Our 1,200 internet kiosks (advanced payphones) of Broadband Central – a new online broadband more likely to be successfully employed. Reports • Help groups and individuals use offer telephone services, internet access, email community aimed at bringing broadband list areas from education and health to technology – Capability. and text messaging. We plan to have a total of users together to share their experience of democratic participation and agriculture as See our short case studies at the end of 20,000 kiosks by 2007. using broadband. areas that are likely to benefit.’ this document for examples of our work to We are developing wireless networks in public For more information, visit Broadband Central promote inclusion. places that will enable people to use their at: www.ecademy.com/broadbandcentral and Content portable computers to access the internet. Our BT Education at: www.bt.com/education. While the amount of information on the internet Connectivity network of Openzone access points – currently is vast, there is still a great need for content If people are to benefit from the internet they more than 2,000 – are available at airports, Contributing to the public debate that brings benefits to communities, small hotels, railway stations and fast-food outlets. need to be connected to it. We provide a range We are active members of the Broadband businesses and individuals. This is why we work of different connections, from home dial-up Stakeholder Group (BSG), the UK Government’s with others to promote new content (see Driving demand lines to internet kiosks and high-speed multi-sector advisory group on broadband. examples in the case studies section of this broadband. See the BT Retail website for our We hope that the purchasing power of the Although the BSG has largely focused on the document). These are some of the organisations products and services. public sector could drive demand even faster. extension of broadband coverage and we have helped: competition, it now sees a need to accelerate Broadband, which provides a fast ‘always-on’ For example, the UK Government’s plans to • Charities – We have teamed up with ik.com, demand and create compelling commercial and connection to the internet via a conventional provide schools and doctors’ surgeries with a business providing specialist internet public service content. telephone line, is the most significant technical broadband would benefit the whole community. solutions, to make free, simple-to-build advance for consumers and small businesses. websites available to UK charities and A Government project called Broadband Its availability promotes social inclusion. Reports community groups (see our charities website Aggregation aims to combine the purchasing Connected Community Organisations – Can leaflet for more information). This is an Telephone exchanges have to be upgraded to power of government departments to make it They Help to Overcome the Digital Divide?, extension of our existing work with UK provide broadband. Because of the cost, this is more affordable for service providers to supply SustainIT, December 2003 schools. Four thousand schools have already being done gradually in the UK, often working broadband to smaller communities. This created some excellent new sites, developed with partners in government and regional initiative will accelerate delivery of broadband ‘Broadband use by community organisations QUA QU A E R L I E R L I and maintained by pupils and teachers. T T T T Y Y I S I S G A G A E S development agencies. E S R S infrastructure to help more UK communities and R S can help to overcome the digital divide, as well
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information on the history of For more information, visit the BT learning communities in the UK on the multiple 3,400 winners have benefited, from inner-city telecommunications Centre at: www.btopenworld.com/ deprivation index. farms to disabled dance groups. (For more information, visit Connected Earth thelearningcentre and see our case study on Project officers have been appointed in each Also see how BT is involved with children to help at: www.connectedearth.org) grandparents and computers at the end of location, with four key tasks: promote digital inclusion in the case studies at this document. • Leeds Learning Network – Formed by BT and the end of this document. • Local audit – to identify key local issues, to Leeds City Council in the UK to connect • BT Resource Bank – resources for teachers, map availability of local public access points; schools, libraries and museums throughout parents and children on communication skills, and training providers and potential partners Case studies Leeds on a single network, the project offers including animated tutorials, quizzes and the whole community an invaluable classroom activities. For more information, • Local action plan – to establish a steering Online access to mountain rescue information educational resource. visit the Resource Bank at: group and design a locally-owned action plan A Scottish mountain rescue team is one of more www.btplc.com/ict/index.cfm. using ICT to address key local issues • NHSnet with Cable & Wireless – We work than 1,000 voluntary organisations that have with the UK National Health Service to supply • Delivery – to facilitate activities to improve Recognising good practice taken up our offer with web-builder ik.com to a world-class secure intranet. Introduced in awareness of ICT and to demonstrate the make free, easy-to-build websites for UK 1995, this multi-media resource is We sponsor SustainIT’s eWell-Being Awards benefits of being online charities and community groups. transforming the way health professionals (see www.sustainit.org/ewell- • Monitoring – to capture data, case studies, “We had been considering creating a website for a work. It enables the delivery of electronic being/ewb_awards.htm), which recognise the examples of good practice, feedback and good couple of years but no-one had the time or healthcare and more efficient administration. effective use of information communications follow-ups. expertise to do it,” says Stuart Ballantyne, technology to bring environmental, economic • Tate Online – We sponsor the UK’s leading secretary of the Trossachs Search and Rescue and social benefits. In the 2004 financial year, Everybodyonline has modern art museum’s virtual gallery, the UK’s been running taster sessions where project Team in Scotland. “Thanks to BT and ik.com we most visited arts website. The site is powered We support the Information and officers equipped with wireless laptops visit now have our own website and although it's in its by BT, which provides technical support, Communications Technology (ICT) in Practice places where people meet, such as community infancy we are receiving positive feedback from hosting and online broadcasting. Awards, organised by the British Educational centres, retirement homes and church halls. other organisations and the public. We found (For more information, visit Tate online at: Communications and Technology Agency People are encouraged to try out the technology creating the site very easy and editing is simple too www.tate.org.uk.) (BECTA). The Awards identify and promote best and explore the opportunities provided online. – ideal for voluntary groups such as us.” practice in ICT and education. • TimeBank – TimeBank is a UK-based national The sessions have proved popular and some voluntary campaign raising the awareness of early participants now confidently shop and Children teach their grandparents how to surf giving time through voluntary work. The Capability bank online. the net website site matches volunteers’ time and We have launched a digital inclusion campaign See our case study about Margaret’s The Grandparents to School event held at St skills to the needs of local organisations. to demonstrate how communications can help experience at the Welbeck Green Bungalows’ Stephen Churchtown primary school Cornwall, • UK National Council for Voluntary improve society, and to support the UK taster session. UK in February 2004 attracted 100 Government’s aim to give all citizens online grandparents to learn about computers and the Organisations – The Council’s website “The real value of the Everybodyonline project is its provides a comprehensive online resource for access by 2005. internet. All classes in the school had a half-hour use of ICT as a tool for engaging with a community slot in the IT suite with their grandparents and voluntary organisations. A key element of the campaign is the and helping the most disadvantaged acquire skills Everybodyonline programme, supported by BT. many of the children proved to be experts at BT Education provides content aimed at which may lead to new life opportunities.” helping their relatives surf the net. teachers, parents and children. This includes: The project is run by Citizens Online John Fisher, Chief Executive of Citizens Online. (www.citizenonline.org.uk), a UK-based charity “Our feet didn’t touch the ground until the • BT Learning Centre – This is an online promoting the use of Information and For more information, visit Everybodyonline at: grandparents and grandchildren stopped for learning subscription service for home users, Communications Technology (ICT) for all www.everybodyonline.org.uk and see our case lunch,” said Ann Tomkins, a project officer tailor-made for specific age groups. This members of the community. studies. with EverybodyOnline, a project run by UK service provides pupils with the same or charity Citizens Online with the support of BT. similar content to that available in schools to Working with local governments, communities Free PCs and connection for community and service providers, EverybodyOnline aims to Working with local governments and service help give them a step up the educational groups and charities providers, the project aims to ensure that those ladder. We have also been working with ensure that those people disadvantaged by location, lack of skills, or economic factors do BT Community Connections is an awards people disadvantaged by location, skills or QUA QU A E R L I leading UK education content providers E R L I T T T T Y Y I S I S economic factors do not miss out on the G A G A E S E S programme aimed at connecting community R S not miss out on the benefits of new technology. R S
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Children help promote digital inclusion Keeping young people off the streets Margaret Temple is one of 41 residents aged between 60 and 90 at the Welbeck Green A new BT-sponsored child-friendly website, Young people in Audley & Bignall End, UK, Bungalows housing complex, near Newcastle on called Internet Rangers, is part of a campaign complained that they had nowhere interesting Tyne, UK. The residents have been regularly launched in 2004 to help young people get their to go to keep them off the streets. This is why visited by an Everybodyonline project officer families online. For further information, please Youth4Audley was set up in 2003 and since May 2003 and provided with internet visit: www.internetrangers.co.uk. immediately developed a project using art, access from laptop computers and mobile media and information technology. Showing Our research found that children – particularly telephones. Margaret has learned how to use extreme resourcefulness a venue was found, young teenagers – are the most effective spur Microsoft Word, send emails and search the personal computer applied for (and gained from to encourage reluctant parents or grandparents internet for information. BT) and funding found from a charity and local onto the internet. Nearly a third of parents and government. Working with Everybodyonline Margaret is a lay preacher and previously used a grandparents – 32% – have been taught or (supported by BT) and others, the young people typewriter to produce her sermons. She is encouraged to surf the internet by a child aged met with many of the elderly residents to find planning to buy a laptop computer and printer. between 13 and 16 years. out what the area had been like in their youth. She has also decided to take more training to It’s not just teenagers who are helping to bridge They then built up a digital library of stories and further improve her IT skills. the digital divide – nearly one in five parents photos, past and present. and grandparents have either learned a new skill In March 2004 Youth4Audley presented a multi- or been educated via the web following online media show celebrating Audley and its people help from a child aged between five and eight. and bringing together old and young in the Sophie (11) and Chloe Davies (9), from Neath in communities. South Wales, have been budding Internet Rangers since Christmas 2000 when they got Bullying Online wins award their first computer. The girls use the internet A comprehensive online information service for mainly for homework and emailing friends, but anyone affected by bullying, called Bullying last year persuaded their grandmother, Pat (70), Online, won the digital inclusion category in the to try using the internet. 2003 EWell-Being Awards, sponsored by BT. Sophie says: “Grandma needed quite a lot of Bullying Online is a registered charity helping persuading as she didn’t think she’d be able to use parents and pupils deal with school bullying. the internet. She also said that there wasn’t In four years 325,000 people have visited the anything she’d want to see on the net but Chloe site and the volunteer team has responded and I found a site with lots of pictures of Neath in to more than 16,000 emails, some from the old days and one on how to be a gardener. I confused teenagers desperate for some think we helped change her mind.” reassurance and others from anxious parents After a few lessons with the girls, Pat searching out advice. enrolled on a computer class at her local There is guidance on every aspect of bullying, community centre. from racial abuse to text harassment on a Pat says: “I had the opportunity of doing a mobile phone, letters for parents to copy out if number of different classes but the girls had they are unsure of how to approach their child’s already shown me the basics of how to use the school, help for bullies and their parents, and computer so I decided to give it a try. Once I got tips from children who have overcome bullying. over the fear factor and put the idea of being too old to learn out of my mind I was fine. The course Giving community groups the opportunity to was really interesting and of course I had Sophie acquire new ICT skills
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BT Social and Environmental report Employees and opinions of BT. A total of 213 suppliers responded, with 94% stating that they had a People continue to feel committed and satisfied Data and targets good working relationship with BT. We will with working for BT. undertake this survey every year and we intend In this section you will find: • Customer dissatisfaction down 22% The People Satisfaction Index (measuring the to create a supplier relationship index that overall satisfaction of people with their working averages responses from a range of questions. • BT’s 11 non-financial key • Broadband now available to more than 85% of life in BT) has increased from 67% to 71%, performance indicators (KPIs) all UK homes and businesses, up from 67% exceeding our target of 69%. Community for a quick overview of our social and • People Satisfaction Index increased from 67% During the 2005 financial year, we will be We have made the commitment to provide a environmental performance to 71% introducing a new Employee Engagement Index, minimum of 1% of our UK pre-tax profits to • Our social and environmental • Increase in the percentage of ethnic minority reflecting our commitment to keep people activities in support of society, either through performance data employees from 8.6% to 8.9% and disabled engaged with their colleagues, work and direct funding or through support in kind. This customers. There will be a strong link between year we provided £5.6 million to activities in • Our social and environmental employees from 2.0% to 2.1%, though the this, the BT strategy and our values. direct support of society, plus £12.4 million in performance targets, including our percentage of women declined from 23.6% further funding and support in kind. progress against the targets set in to 22.7% We are aiming to increase the percentage of previous financial years. • Global Warming CO2 emissions now 42% women employees to 25% and disabled Environment lower than 1996 employees to 2.5%, while not falling below Key performance indicators 8% ethnic minority employees. Telecommunications is seen as an environmentally • Waste to landfill down 10,201 tonnes to friendly technology. But the sheer scale and reach We have selected 11 non-financial key 79,677 tonnes, and percentage of total waste The past year has shown a small increase in the of our business create a sizeable environmental performance indicators (KPIs) to provide recycled up from 24% to 26% percentage of ethnic minority employees in BT footprint. For example, BT is one of the largest a quick overview of BT’s social and (8.9% from 8.6%) and also disabled employees • Health & Safety significant incident rate down consumers of industrial and commercial electricity environmental performance. (2.1% from 2.0%). However, while 32.8% of all from 113 to 87 per 10,000 full-time employees new recruits were women, the representation of in the UK. The KPIs have been used to establish a set • Percentage of suppliers stating they have a women in BT as a whole has fallen from 23.6% BT’s global warming CO2 emissions are now of strategic social and environmental targets good working relationship with BT is 94% to 22.7%. This suggests that retention rather 42% less than the level they were at in 1996. to drive performance improvement across than recruitment is the barrier to progress. This compares favourably with the UK the business. • Ethical trading risk assessment questionnaires Government’s own target for CO2 reduction of completed by 242 suppliers and 13 on-site Providing a safe place to work and promoting a You can view our performance data and targets 20% below 1990 levels by 2010. assessments undertaken healthy lifestyle are critical to our employee summary for all our KPIs here, with further relationships and we are seeing some excellent We are expecting the roll out of broadband to information and commentary below. • Awareness of our Statement of Business progress in these areas. Our significant incident increase our electricity use – though investment Practice in the UK up 1% to 84% All other performance figures are available in rate (the reported number of injuries, diseases and in energy efficiency enabled us to reduce overall the social and environmental data section • Direct community investment of £5.6 million plus dangerous occurrences) was down from 113 to 87 consumption by 1.5% during the 2004 financial of this document. £12.4 million in further funding and support in kind. per 10,000 full time employees in the UK this year. year. We have set a target to cap our 2010 CO2 Below is a summary of our performance in the On the back of this success, we have now emissions at 25% below those of 1996. Key performance indicator selection KPIs during the 2004 financial year. More doubled our target, which is to achieve a 50% Also important is the disposal of our waste. This The primary reference point in the identification detailed information can be found by following reduction in incidents by 2005 from 2001 levels. year we have increased the percentage of the of KPIs was BT’s Statement of Business Practice. the links to the relevant sections. total waste we recycle from 24% to 26% and This sets out our business principles together Suppliers reduced our waste going to landfill from 89,878 Customers with the specific aspirations and commitments It is vitally important that our suppliers provide to 79,677 tonnes. that apply in our stakeholder relationships. Reducing customer dissatisfaction by 25% a year working conditions consistent with international Integrity From here specific indicators were selected over the 3 years to the 2005 financial year is a key guidelines such as the UN’s Universal following consultation with investors, customers target in our drive to deliver the highest levels of Declaration of Human Rights. In today’s world, integrity and fulfilling our customer satisfaction. Across the whole group in and employees, together with outside experts We continued to roll out our ethical trading promises are increasingly critical. Our Statement the 2004 financial year, we achieved a 22% such as the BT Leadership Panel. programme to those places where we believe of Business Practice, The Way We Work, is a key reduction in customer dissatisfaction, with the document, setting out the principles that apply The final set of KPIs includes at least one the risk of falling short of our Sourcing with principal lines of business all reducing customer to BT people all over the world. indicator for each of our four important Human Dignity standard is at its highest. dissatisfaction levels during the year. This follows QUA QU A E R L I stakeholder groups (customers, employees, E R L I In 2003, awareness of these principles in the UK T T T T Y Y I S I S A A Ethical trading risk assessment questionnaires G a 37% reduction in the 2003 financial year. G E S E S
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Non Financial Key Performance Indicators
Category Indicator 2004 2003 2002 Target 2005
Customers Customer Dissatisfaction 22% reduction 37% reduction Not Available Reduce customer dissatisfaction by – a measure of the overall success of 25% a year over the 3 years to the BT’s relationship with its customers 2005 financial year
Employees People Satisfaction Index 71% 67% 67% * See note below – a measure of the overall success of BT’s relationship with employees
Diversity 22.7% Women 23.8% Women 23.9% Women 25% Women – a measure of the diversity of the BT workforce (21% of senior) (20% of senior) 7.7% Ethnic Minority > 8% Ethnic Minority 8.9% Ethnic Minority 8.2% Ethnic Minority 2.0% Disabled 2.5% Disabled (7.6% of senior) (7% of senior) 2.1% Disabled 2.0% Disabled
Significant Incident Rate 87 per 10,000 full time employees 113 per 10,000 full time employees 126 per 10,000 full time employees 50% reduction in incidents from 2001 – a measure of BT’s success in health (UK only) (UK only) (UK only) by March 2005 (74) and safety
Suppliers Supplier Relationships 94% Not Available Not Available Identify areas for improvement – a measure of the overall success of BT’s relationship with suppliers
Ethical Trading 242 risk assessment 31 risk assessment Not Available Evidence of action in high/ medium – a measure of the application of BT’s questionnaires completed questionnaires completed risk areas supply chain human rights standard
Community Community contribution £18m in funding and support in kind £26.1m in funding and support in kind £26.0m in funding and support in kind Maintain minimum of 1% pre-tax profit – a measure of investment in society
Environment Global Warming CO2 emissions 42% below 1996 level 40% below 1996 level 36% below 1996 level Cap 2010 CO2 emissions at 25% below – a measure of BT’s climate change impact 0.93 million tonnes 0.96 million tonnes 1.03 million tonnes 1996 levels 50 tonnes per £1m 51 tonnes per £1m 56 tonnes per £1m
Waste to landfill and recycling 79,677 tonnes to landfill (74%) 89,878 tonnes to landfill (76%) 90,900 tonnes to landfill (79%) We will increase the amount of items recycled – a measure of BT’s resource use impacts 27,626 tonnes recycled (26%) 27,809 tonnes recycled (24%) 24,099 tonnes recycled (21%) by 5% (recorded in tonnes)
Digital Inclusion UK Addressable Broadband Market More than 85% UK households 67% UK households Not Available Broadband available to exchanges serving – a measure of the geographical reach over 99% of UK homes and businesses by of broadband summer 2005
Integrity Awareness of BT Statement of 84% (UK only) 83% (UK only) 76% (UK only) Introduce new integrity index Business Practice – a measure of our success in promoting integrity
*A new “Employee Engagement Index” is being introduced. Results and a new target will be available during the 2005 financial year.
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BT Social and Environmental report | Data and targets 2 Social and environmental data This sub-section only contains trended and analysed data. Other one-off quantified data is included and explained within the various sections of our report.
Fuel, energy and water Waste
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BT Social and Environmental report | Data and targets 3
Waste Type (tonnes) Year 2000 Year 2001 Year 2002 Year 2003 Year 2004 Waste Type (tonnes) Year 2000 Year 2001 Year 2002 Year 2003 Year 2004 Metals Batteries Steel 11,692 2,570 514 1,014 715 Ni-cad rechargeable batteries 6 8 20 16 34 Copper 3,771 660 77 116 64 Exchanged lead acid batteries 6,203 4,281 3,483 2,632 3,408 Aluminium 775 132 52 72 133 Vehicle Lead Acid Batteries 50 26 47 61 35 Gold 0.50 0.40 0.01 0.01 0.02 Total 6,259 4,315 3,550 2,708 3,477 Silver 4.00 0.30 0.04 0.03 0.02 Transport related waste Platinum 0.10 0.00 0.00 0.00 0.00 Lubricating oil 270 209 202 246 241 Palladium 0.20 0.02 0.00 0.00 0.00 Oil filters 38 52 28 90 71 Iron 1213 853.3 1410.7 Antifreeze/water mixture 10 8 6 21 8 Total 16,243 3,362 1,856 2,056 2,323 Brake fluid 3 2 1 1 1 Cable Mixed fuel 26 18 15 3 2 Subsea cable 812 Nil Nil Nil 0 Oil contaminated waste 12 7 8 12 12 Switchboard cable 656 931 817 685 559 Paint solvent/thinners 0.5 0.5 0.02 0.23 0.68 Mixed cable 1,291 1,227 1,284 965 577 Tyres 437 545 496 404 485 Aerial Self Total 797 842 755 777 822 Supporting cable 938 932 744 874 806 Other Polythene covered cable 438 800 663 790 765 Misc Electrical Equipment 823 1,441 Lead covered cable 673 471 697 235 259 Telephone directories 615 442 616 359 268 Optical fibre cable 1,108 1,198 1,204 746 474 Telegraph Poles 1,173 3,852 3,926 6,551 5,103 Blown fibre cable 203 395 346 138 204 Computing Equipment 180 104 832 443 755 Total 6,119 5,954 5,756 4,434 3,645 Clothing 4 2 3 3 2 Telephone exchange equipment Catering Oil 80 44 Miscellaneous equipment 1,264 935 1,007 823 537 Other (eg wood, glass, etc) 25 General iron & steel 1,513 1,293 1,004 1,202 912 Catering Equipment 19 Payphone equipment 886 136 172 223 38 Total 1,972 4,400 5,377 7,436 7,658 Telephones 674 580 516 431 464 Total waste recycled 23,582 21,739 24,099 27,809 27,626 PCB/PCN Capacitors 112 1.5 0.1 0.0 0.0 General Waste 103,853 117,196 90,900 89,878 79,677 Total 4,449 2,945 2,700 2,679 1,952 Total weight for Office & Packaging waste all categories 127,435 142,297 114,999 117,688 107,303 Office Paper 2,635 2,116 1,818 6264.2 1379.0 waste recycled (as % of total waste) 29% 18% 21% 24% 26% Cardboard 1,277 1,050 2,286 1366.1 6288.2 Plastics 37 30.5 Nil 14.3 33.9 £s Year 2000 Year 2001 Year 2002 Year 2003 Year 2004 Toner Cartridge 25 39 43 50.0 15.5 Total income £9.6 million £4.0 million £4.2 million £4.26 million £3.9 million Silica desiccant 13 34 8.4 10.0 5.2 QU QU Total expenditure £7.0 million £7.0 million £8.1 million £8.29 million £9.9 million R A L R A L T E I T T E I T Y Y I S I S G A G A E S E S
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BT Social and Environmental report | Data and targets 4
Data and targets continued
Waste continued Transport
Distance Travelled by Commercial Fleet, Company Cars & Private vehicles on BT Business
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BT Social and Environmental report | Data and targets 5
Data and targets continued
Transport continued Emmissions to air
Transport emissions by Commercial Fleet, Company Cars & Private vehicles on BT Business
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BT Social and Environmental report | Data and targets 6 Data and targets continued
Benefits Employment
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BT Social and Environmental report | Data and targets 7 Data and targets continued
Health and safety Targets Performance against targets We have established a set of targets to improve Our 2003 Social and Environmental report our social and environmental performance. included 47 targets. Of these, 33 were completed, 4 remain on target, 1 is delayed, 8 Details of all our targets are given below. have failed and 1 has been abandoned. We also provide interim updates on progress against our targets on a quarterly basis We have introduced 39 new targets this year (with the exception of quarter one) on the and progress on these, as well as our 5 ongoing Better World website. targets, will be tracked on a quarterly basis. Those social and environmental targets which have been identified as particularly important feature in key performance indicators. NB: interim target updates (where indicated) ARE NOT verified by LRQA. LRQA verifies progress against targets on an annual basis only.
Business Principles Target start end date date Description Update Target status
April March We will develop a new, The first progress update for New 2004 2005 index-based indicator to this target will be available on measure our effectiveness the site in November 2004. at implementing BT’s Statement of Business Practice (The Way We Work).
April March We will publish an An independent report on Completed 2003 2004 independently written Hot ‘Mis-use of the Internet’ Topic on internet issues was written by James Wilsdon associated with matters and Paul Miller of Demos. that many people consider Completed in June 2003, to be morally outrageous. the report examined BT’s approach to internet activities of concern such as hacking, copyright infringement and spam.
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BT Social and Environmental report | Data and targets 8 Business Principles continued Community continued
Target Target start end start end date date Description Update Target status date date Description Update Target status
April March Indicators on the Actions taken include: On target April March 554,000 direct 776,523 engagements Completed 2003 2005 awareness of BT’s identified a lead manager; 2003 2004 engagements with the UK achieved. Statement of Business identified all wholly-owned community will have been Practice will be extended activities; plans agreed to made by BT’s UK based to incorporate BT’s communicate and build community programmes. wholly owned international awareness. activities. April March The BT Education 37,000 young people engaged Completed 2003 2004 Programme will visit and 332 schools visited. April March We will bring the Better The site index was upgraded in Completed 325 schools and engage 2003 2004 World site into line with line with the new telecom a minimum of 30,000 the Global Reporting supplement, as part of our young people. Initiative Guidelines 2004 annual review. Telecommunications April July The BT Education The final figures at Completed sector supplement. 2001 2003 programme will reach two 31/07/2003 were 9,213 school million children and young visits and 2.3m young people people in 9,000 schools. involved in the programme. Community
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start end Customers date date Description Update Target status Target April March We will provide a minimum The first progress update for New 2004 2005 of 1% of our 2003 financial this target will be available on start end year UK pre-tax profits to the site in November 2004. date date Description Update Target status activities in support of April Sept We will make Broadband The first progress update for New society, either through 2004 2005 available to exchanges this target will be available on direct funding or through serving over 99% of UK the site in November 2004. support in kind. homes and businesses. April March BT will donate one per cent Total contribution was 1.6% of Completed 2003 2004 of BTGroup pre-tax profits, turnover. April March We will reduce the number The first progress update for New made up of one half per 2004 2005 of dissatisfied customers this target will be available on cent direct funding in line by 25% over 3 years the site in November 2004. with its Per Cent club (2002–2005) according commitment and one half to a revenue-weighted per cent contribution in calculation. kind as measured by the London Benchmarking April March We will reduce the Achieved a 22% reduction. Failed Group model. 2003 2004 number of dissatisfied Since the 2002 financial year, customers by 25% we have reduced customer April March 25% of BT people will be We failed to meet the target Failed according to a revenue- dissatisfaction at the rate of 2003 2004 involved in BT’s community because of the number of BT weighted calculation. 29% a year. Our principal lines programmes. employees who were of business all reduced
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BT Social and Environmental report | Data and targets 9 Customers continued Employees continued
Target Target start end start end date date Description Update Target status date date Description Update Target status
April June We will make broadband Available to over 85% of UK Completed April March We will understand and The first progress update for New 2003 2003 available to 80% of Homes and businesses. 2004 2005 address the barriers to this target will be available on UK Homes. greater ethnic minority the site in November 2004. representation amongst BT’s senior management. Employees April March Within the UK, we will The first progress update for New Target 2004 2005 achieve a 70 per cent this target will be available on start end reduction in the number of the site in November 2004. date date Description Update Target status sick absence days lost as a result of accidents at work. April March We will introduce new The first progress update for New 2004 2005 country-specific diversity this target will be available on April March We will undertake health The first progress update for New training in BT’s non-UK the site in November 2004. 2004 2005 checks on the equality and this target will be available on operations where culturally diversity practices of BT the site in November 2004. and legally possible. outside the UK
April March Within the UK, we will The first progress update for New April March We will understand and The first progress update for New 2004 2005 achieve a 50 per cent this target will be available on 2004 2005 address the barriers to this target will be available on reduction in incidences the site in November 2004. greater female the site in November 2004. of ill health meriting representation amongst referral to occupational BT’s senior management. health which are possibly attributable to work activity. April March We will achieve a People Achieved 71%. Completed 2003 2004 Satisfaction Index of 69%.
April March Within the UK, we will The first progress update for New 2004 2005 achieve a 50 per cent this target will be available on April March We will hold the 8.9% of BT people are from Completed reduction in the number the site in November 2004. 2003 2004 percentage of BT people ethnic minorities. of Significant Incidents that are from ethnic resulting in the minorities to at least 8%. requirement to send a report to the Enforcing April March We will increase the 23% of BT people are women. Failed Authorities. 2003 2004 percentage of BT people We failed to meet the target that are women to 25%. because of people taking April March We will increase the The first progress update for New voluntary redundancy. 2004 2005 percentage of BT people this target will be available on that are women to 25%. the site in November 2004. April March We will increase the 2.1% of people directly Failed 2001 2002 number of people with a employed by BT have a April March We will hold the The first progress update for New disability, directly disability. We failed to meet 2004 2005 percentage of BT people this target will be available on employed by BT, to 2.5 per the target because of the that are from ethnic the site in November 2004. cent of the workforce. impact of people taking R QUA L R QU A L T E I T T E I T Y Y I S I S A A voluntary redundancy. G G E S E S
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BT Social and Environmental report | Data and targets 10 Employees continued Environment – Fuel, energy and water continued
Target Target start end start end date date Description Update Target status date date Description Update Target status
April March We will achieve a 25 per As we achieved this target two Completed April March We will reduce metered The first progress update for New 2001 2005 cent reduction in years ahead of schedule 2004 2005 Water used BT in Premises this target will be available on incidences of ill health (36.7% reduction achieved at by 2% from 2003/4 the site in November 2004. meriting referral to December 2003), we have set out-turn. occupational health which a new target of 50% reduction are possibly attributable to from the baseline year 2000/1, April March We will reduce the energy The first progress update for New work activity within the UK. by the end of 2004/5. 2004 2005 consumption required to in this target will be available on wet heated building by i.e. the site in November 2004. gas and oil by 3% weather April March We will achieve a 25 per As we achieved this target two Completed corrected from the 2001 2005 cent reduction in the years ahead of schedule 2003/04 outturn. (N.B. number of Significant (40.4% reduction achieved at excludes network electrical Incidents resulting in the December 2003), we have set consumption) requirement to send a a new target of 50% reduction report to the Enforcing from the baseline year 2000/1, April March Through implementation The first progress update for New Authorities within the UK. by the end of 2004/5. 2004 2005 of energy efficiency this target will be available on measures, we will reduce the site in November 2004. April March We will achieve a 25 per As we achieved this target two Completed our electrical consumption 2001 2005 cent reduction in the years ahead of schedule by 10GWh within the BT number of sick absence (33.4% reduction achieved at Wholesale estate. days lost as a result of December 2003), we have set accidents at work within a new target of 70% reduction April March We will reduce the energy The first progress update for New the UK. from the baseline year 2000/1, 2004 2005 consumption required to this target will be available on by the end of 2004/5. run its Premises i.e. all gas, the site in November 2004. oil and electricity, by 3% from the 2003/04 outturn. (N.B. excludes network Environment – Fuel, energy and water electrical consumption) Target April March One hundred locations The first progress update for New start end 2004 2005 where the operational this target will be available on date date Description Update Target status underground storage the site in November 2004. facilities have been April March We will investigate the The first progress update for New identified by the 2004 2005 suitablitity for embedded this target will be available on ‘Environ’ action plan as wind generation across the the site in November 2004. presenting the highest BT operational estate (6000 environmental risk will be Sites). The top 4 suitable decommissioned and the sites (as identified by the facilities upgraded. joint audit process with the Carbon Trust) will be developed to full business April March We will Integrity Test fuel The first progress update for New case with appropriate 2004 2005 tanks at 611 BT sites. The this target will be available on technology identified. main focus will be on the site in November 2004. buried fuel tanks that were
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BT Social and Environmental report | Data and targets 11 Environment – Fuel, energy and water continued Environment – Waste
Target Target start end start end date date Description Update Target status date date Description Update Target status
April March We will complete risk Achieved. Completed April March We will review the drainage The first progress update for New 2003 2004 assessments on all buried 2004 2005 infrastructure of polestacks this target will be available on fuel tanks. to determine the preferred the site in November 2004. cost effective drainage April March BT will Reduce metered Achieved 3.15%. Completed solution to ensure 2003 2004 Water used BT in Premises environmental compliance by 3% from 2002/3 and arrange a trial to prove out-turn. the effectiveness of the recommended solution. April March We will visit another 1224 Specialist tank testers visited Completed 2003 2004 BT sites and will carry out a 1,391 sites. April March We will increase the The first progress update for New comprehensive integrity 2004 2005 amount of items recycled this target will be available on test on the fuel tanks at by 5% (recorded in tonnes) the site in November 2004. these sites. This will and measured against the complete the tank-testing March 2004 outturn figure. programme, which began in 2000. April March We will review all Achieved through a number of Completed 2003 2004 communication channels awareness initiatives. April Sept We will assess our above All 84 Network Sites with Completed for information to BT 2003 2003 ground fuel tanks. Any not above ground fuel tanks were people on waste complying with the oil visited. 39 fuel tanks passed management and recycling storage regulations, at and 45 failed. Action has including introduction of significant risk locations, ensured all tanks meet the new new computer based will be upgraded to meet guidelines. training courses, the new guidelines. improvement to existing training delivery and April June BT will reduce the energy Achieved 1.33%. Efficiency Failed communications to 2003 2003 consumption of wet heated initiatives did not deliver the enhance environmental buildings (i.e. gas and oil) expected savings. New targets awareness. by 3%, weather corrected have been set. from the 2002/03 outturn. April March We will increase the We only managed a 2.12% Failed (N.B. excludes electrical 2003 2004 amount of items recycled reduction. This was because of consumption) (recorded in tonnes) by our success in reducing the 10%, measured against the overall amount of waste by April March BT will reduce the energy Achieved 3.5% reduction. Completed March 2003 outturn figure. over 10,000 tonnes. This 2003 2004 consumption required to meant that we recycled less. run its Premises i.e. all gas, oil and electricity, by 3% April March We will introduce improved Dedicated open-top skips will Completed from the 2002/03 outturn. 2003 2004 disposal routes and be provided at relevant sites (N.B. excludes network processess for spoil/rubble for the disposal of spoil/rubble electrical consumption) from BT Field Operations generated by BT during the using BT Telephone installation/replacement of
QUA QU A E R L I E R L I Engineering Centre sites. telegraph poles. T T T T S Y April Sept We will eliminate all Confident that target will be On Target S Y I I G A G A E S E S
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BT Social and Environmental report | Data and targets 12 Environment – Waste continued Environment – Transport continued
Target Target start end start end date date Description Update Target status date date Description Update Target status
April March We will develop new Our facilities manager, Completed April March We will consider and We will consider LPG dual fuel Completed 2003 2004 disposal and recycling Monteray, will dispose of 2003 2004 recommend, if appropriate, cars for business drivers once routes and processes at tubes in line with the new dual fuel (LPG) vehicle our vehicle reallocation exercise site level for fluorescent landfill regulations and types for BT’s business is complete. For the commercial tubes in line with current recycling requirements that need Company Car Fleet fleet, we have reported on regulations. take effect in late 2004. and alternative fuelled fleet alternative fuelled vehicles for A disposal facility, provided vehicles for operating in London and the projected fuel and managed by Monteray, cities in order to reduce savings for a LPG dual fuel vans will be available at 56 major vehicle emissions and gain in the London charging zone. sites across the UK. exemptions from We await news on Government congestion charges. tax incentives and do not intend to alter our fuel policy for either Environment – Transport car or commercial fleets at this time. Target start end date date Description Update Target status Environment – Emissions to Air
April March We will develop a pilot to The first progress update for New Target 2004 2005 assess the fuel economy this target will be available on start end from enabling the Speed the site in November 2004. date date Description Update Target status Limiter function (limiting maximum speed to 70mph) April March We will control the amount The first progress update for New on a sample of medium 2004 2005 of net refrigerant (quantity this target will be available on size commercial vehicles. purchased minus quantity the site in November 2004. returned for disposal/ April March We will reduce our The first progress update for New recycling) purchased by our 2004 2005 commercial fleet by this target will be available on operational network to no 2000 vehicles. the site in November 2004. more than four per cent of the total refrigerant held. April March We will assess BT’s The strategic review led to a Completed April March We will reduce our carbon Reduced CO2 emissions by On target 2003 2004 Transport Strategy decision to remove 832 2003 2010 dioxide emissions 42%, compared with 1996. (Networkbuild & Customer vehicles from the commercial (measured in tonnes CO2 Service) in order to fleet and to downsizing the equivalent) to 25% below estimate the influence it rest to smaller more fuel- 1996 levels. will have on the fuel efficient vehicles. This, and consumption of the other measures, has led to a commercial vehicle fleet, 4% reduction in fuel April March We will reduce the amount On schedule to achieve target. On target recommend improvements consumption, compared with 2003 2005 of CFC/HCFC installed, as a if necessary and target fuel the previous year. Fuel percentage of the reductions, as appropriate. economy initiatives continue. Operational Networks Estate installed/stock of CFC/HCFC,
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BT Social and Environmental report | Data and targets 13 Environment – Emissions to Air continued Environment – Product Stewardship
Target Target start end start end date date Description Update Target status date date Description Update Target status
April March We will control the amount The total was 2.9%. This, for Completed April March we will publish its roadmap The first progress update for New 2003 2004 of net refrigerant (quantity the first time, includes 2004 2005 of compliance to the RoHS this target will be available on purchased minus quantity refrigerants lost by our Directive. the site in November 2004. returned for disposal/ facilities contractor (see recycling) purchased by our Environment section). April March We will assess lead free and The first progress update for New operational network to no 2004 2005 potentially RoHS compliant this target will be available on more than four per cent of products ahead of the 2006 the site in November 2004. the total refrigerant held. deadline set in the Directive.
April March BT will have monitored the The GS19 process was Completed Environment – Procurement 2003 2004 application within the evaluated and we have company of GS19, the implemented a number of Target Product Stewardship changes which will increase start end Generic Standard designed data capture and application date date Description Update Target status to reduce BT’s by both buyers and suppliers. environmental liability and April March There will be evidence that The first progress update for New will have produced proposals 2004 2005 continuous environmental this target will be available on to improve its effectiveness. improvement is being the site in November 2004. driven within 3 months April June BT will have evaluated Final report published 1 July Completed with any supplier identified 2003 2003 alternative pole materials 2003. We concluded that as requiring this, following to ensure compliance to hollow steel poles are best. their ‘environmental risk Marketing & Use Directive Instructions given to all assessment’. 76/769/EEC (Creosote). engineering staff (ES memo 25/2003) that from 1st June April March All BT buying units inside All buyers from BT Global Completed 2003, creosoted poles must 2003 2004 and outside of the UK will Services (the only buyers not not be installed in school or have received trained on previously trained) have now public playgrounds. We will how to use the GS13 been trained in the use of continue using poles preserved Environmental Impact Risk GS13 (the environmental with creosote that meet the Assessment Process. procurement standard). requirements of Marketing and use Directive (Creosote) in all April March There will be evidence that Of the 61 suppliers identified Completed other areas. 2003 2004 continuous environmental as high or medium risk after improvement is being submitting their GS18 April March BT will have assessed 10 Achieved. Completed driven with all suppliers questionnaire, 11 have yet 2003 2004 electrical or electronic identified as requiring to take part in a conference products procured from a improvements as a result call to assess the risks. Unit variety of suppliers and of the GS13 Risk and buyer representatives produce proposals by which Assessment Process. have been asked to arrange their environmental impact a suitable date to discuss can be reduced. the risks. April March BT will assess the whole life Assessed the life costs of Completed 2003 2004 costs of 5 products exiting fluorescent tubes, cables, and
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BT Social and Environmental report | Data and targets 14 Environment – Local Impacts Environment – General
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April March We will develop a suitable The first progress update for New April March We will have collected Data are being collected from Delayed 2004 2005 database to ensure all this target will be available on 2003 2004 international data on BT’s all our global operations. The Local Impact related the site in November 2004. key environmental impacts, delay is because of accuracy customer complaints/ energy use, transport, checks preceding external enquiries received outside waste and emissions to air, verification and publication. If the normal Customer for BT’s wholly owned possible, we will report on this Complaint Handling international activities. in our 6-monthly review. process, are suitably logged, owned and dealt with in a timely manner to minimise customer Suppliers dissatisfaction. Target April March We will enter into The first progress update for New start end 2004 2005 constructive dialogue with this target will be available on date date Description Update Target status representatives of the the site in November 2004. Council for National Parks April March There will be evidence that The first progress update for New (CNP), to develop a better 2004 2005 action within three months this target will be available on understanding of has been conducted with the site in November 2004. communal targets and all contracts identified as objectives. high or medium risk following a GS18 Sourcing with Human Dignity risk April March We will set up a new The first progress update for New assessment. 2004 2005 forum, attended by this target will be available on appropriate and suitably the site in November 2004. April March We will have analysed The first progress update for New knowledgeable members, 2004 2005 responses to our supplier this target will be available on to discuss, resolve and relationship survey and the site in November 2004. promote issues relating to identified areas for Local Impacts in order to improvement. raise visibility both within and outside BT. April March We will establish a trade The first progress update for New 2004 2005 union and NGO group to this target will be available on provide advice on BT’s the site in November 2004. Environment – Benefits supply chain human rights activities. Target start end April March There will be evidence that Achieved target. Completed date date Description Update Target status 2003 2004 action has been conducted with all contracts identified April March We will sponsor, on an £21,500 given in sponsorship Completed as high or medium risk in 2001 2004 annual basis, the UK this year. terms of GS18 Sourcing GLOBE new sustainable with Human Dignity. development biodiversity
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BT Social and Environmental report | Data and targets 15 Suppliers continued Stakeholder Dialogue continued
Target Target start end start end date date Description Update Target status date date Description Update Target status
April Dec We will expand the Supplier The formation of the European Abandoned April March The percentages of We failed to meet this target Failed 2001 2003 Diversity Programme to Supplier Diversity Project – BT 2003 2004 stakeholders agreeing with but increased stakeholder include 25 businesses is a member – affects our the statement that ‘BT perception in two of the three owned by people with programme. This project will takes its responsibilities to polls. MORI survey of All disabilities and 15 determine the framework for society and the community Adults: target 55%, achieved businesses owned by all member companies. We very seriously or seriously’ 52%, Opinion Leader Survey: women. have abandoned the target will be as follows: MORI target 40%, achieved 55%, and revised our strategy to survey of All Adults 55%; BT Employee Survey: target conform to the project’s aims. Opinion Leader Survey 85%, achieved 85% 40%; BT Employee Survey 85% Stakeholder Dialogue
Target Sustainability start end date date Description Update Target status Target start end April March The percentage of BT The first progress update for New date date Description Update Target status 2004 2005 employees agreeing with this target will be available on the statement that ‘BT the site in November 2004. April Dec We will complete an Analysis by Forum for the Completed takes its responsibilities to 2002 2002 analysis of how broadband Future (an independent society and the community technologies contribute to sustainability organisation) very seriously or seriously’ UK national social, completed in January 2004. will be 88%, up from 85%. environmental and Note: while the initial economic priorities. completion date was 2002, April March The percentage agreeing The first progress update for New it was revised last year. The 2004 2005 with the statement that ‘BT this target will be available on target has been met. takes its responsibilities to the site in November 2004. society and the community very seriously or seriously’ Digital Inclusion in a UK Opinion Leader Target Survey will be 58%, up from 55%. start end date date Description Update Target status
April March The percentage of all UK The first progress update for New April March We will publish the results The first progress update for New 2004 2005 Adults participating in the this target will be available on 2004 2005 of our EverybodyOnline this target will be available on MORI survey who agree the site in November 2004. (information and the site in November 2004. with the statement that communications ‘BT takes its technology and community responsibilities to society development) projects with and the community very UK-charity campaign group seriously or seriously’ will Citizens Online. reach 55%, up from 52%.
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Design by Red Letter Design About the report
BT Social and Environmental report About the report
Our Social and Environmental report is Chairman’s development. part of our Better World website, which introduction The Dow Jones Sustainability Indexes rank is updated regularly. Our purpose is to companies for their success in achieving this improve communications challenge – so I was delighted when we were The report covers all externally verified for our customers. ranked as the best telecommunications content (as indicated by a symbol at the Our ambition is for our company for the third year running. I am proud of this achievement and thank all the bottom of the page) and our customers to benefit fully from increased motivated people across the whole of BT who independently written ‘Hot Topics’. connectivity. Our vision can be summarised made it happen. by the phrase – The report is complemented by other content The index recognises the approach we Connecting your world. Completely. on our Better World website – latest news, our have taken to a whole range of issues – Occasional Papers, studies and reports, and our BT's social responsibility is about doing this everything from business principles to business game. in a way that is caring and responsible, customer service, and from work-life helping as many people as possible. Our goal balance of BT people to ethical supply We only publish our social and environmental is to help everyone benefit from improved chain management. It reflects our ambition to performance online because the innovative use communications and to spread the benefits of create shareholder value by meeting the of information technology offers possibilities to our technology as widely as we can. expectations of all our stakeholders. communicate more effectively and to engage in a two-way dialogue. The internet is a critical For example, we are determined to spread the I’m happy to report that we have won a number tool to help promote greater transparency and benefits of broadband as widely as possible. of prestigious awards in recognition of our accountability in business. Our aim is to connect every UK community, efforts to be socially responsible – the Queen’s even remote or rural ones, by 2005. Award for Sustainable Development, the 2003 Here you will find our: Best European Corporate Pension Fund Award Setting up public-private partnerships across the • Chairman’s introduction and the UK Chartered Institute of Purchasing UK will bring broadband to areas where • Chief Executive’s introduction and Supply's Award for Supply Management. exchanges have not yet been enabled. And We also explain our reporting methodology and existing partnerships – such as ActNow in Our objective now as we transform our company approach in: Cornwall – show what can be achieved through for the years ahead is to maintain and improve this level of performance. • Triple Bottom Line reporting broadband. This project has already delivered • Scope of the Report 1,200 jobs and a £20 million boost to regional • Key Performance Indicators gross domestic product. Our digital inclusion • Assurance project Everybodyonline is finding ways in which • Standards more deprived communities can also benefit. • Navigation. The UK Government has made a commitment Sir Christopher Bland Our Summary and highlights document provides to connect all primary and secondary schools to the internet using a broadband connection by Chairman an overview of our Social and Environmental 13 May 2004 report. It can be downloaded as a PDF file or 2006. We are delivering educational services you can order a printed version (email: such as online learning packages and interactive [email protected]). applications which will enhance the learning experience. BT volunteers are helping schools take advantage of these opportunities. Our Corporate Social Responsibility programme – described in the Better World website – is vital to encourage our customers to buy from us, investors to put their trust in us and the best R QUA L R QU A L T E I T T E I T Y Y I S I S G A G A E S E S
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BT Social and Environmental report | About the report 1 About the Report continued
Chief Executive’s message Our performance Triple Bottom Line reporting stakeholders. They want to see how we put our values into practice, and how our products Our non-financial performance underpins the This concept of ‘triple bottom line’ or Our values and services can help contribute towards achievement of our financial goals, which is why ‘sustainability reporting’ has become a common sustainable development. A year ago we we publish 11 non-financial key performance feature of large companies. We believe it established five indicators and ten strategic targets. provides an invaluable holistic view of the The flexibility of the internet also enables us to show the various links between social, new values to capture Our headline target is to reduce the number company, making connections between aspects environmental and economic dimensions of the essence of what of dissatisfied customers by 25% a year over the of performance previously evaluated separately sustainability. This is achieved by using links BT people need to do three years to the 2005 financial year. and aiding our transition to a more joined-up and what they need to approach to the management of social, between the various sections and by stand for: We are committed to connect all UK environmental and economic issues. opportunities to navigate the site according to communities to broadband by 2005 – but also different indexes, such as the Nine Principles of We also believe that companies have a Trustworthy – we do what we say we will to cap our CO2 emissions at no more than the UN Global Compact or the Global Reporting responsibility to disclose the social and Helpful – we work as one team 25% below 1996 levels by 2010. We have Initiative (GRI) Guidelines. Inspiring – we create new possibilities made excellent progress on health and safety in environmental performance information that their stakeholders – customers, employees, Straightforward – we make things clear recent years and have doubled our target for a Scope of the Report reduction in incidents to 50% of 2001 levels shareholders, suppliers and partners – need to Heart – we believe in what we do This report covers all of BT’s main social, by 2005. make informed decisions. economic and environmental performance Only by living these values can we transform our Our approach has been recognised by a number areas for the 2004 financial year (ending company for the challenges ahead. Transparency of external bodies. We were pleased to be joint 31 March 2004). This year we had to manage some hot social winners of the 2001 Association of Chartered And only by living these values can we fulfil The report covers all externally verified content issues – not least the opening of two new call Certified Accountants (ACCA) Sustainability our commitment to leadership in Corporate (as indicated by a symbol at the bottom of centres in India. Transparency in dealing with Reporting Award. We were also commended for Social Responsibility. the page) and our independently written controversial issues is paramount. We will never the 2002 awards and shortlisted for the 2003 ‘Hot Topics’. Being trustworthy means acting with integrity, satisfy everyone, so openness is key. awards. We won the ACCA award for the best keeping our promises and implementing our web-based sustainability report in the 2002 and The report is part of our Better World website, You can read more about our performance business principles. 2003 awards. which is updated regularly and also contains and our approach to these controversial archived content. The Better World website also Being helpful means listening to the issues throughout our Better World website, The future includes latest news, Occasional Papers, our needs of our stakeholders and meeting which contains the BT Social and business game and other studies and reports – their expectations. Environmental report. The concept of triple bottom line reporting suggests that there are three separate none of these is part of the Social and Being inspiring means embracing new ideas that The report has been prepared in accordance and distinct bottom lines – each of Environmental report. contribute to sustainable development. with the 2002 Global Reporting Initiative equivalent standing. Guidelines and is independently verified. It Being straightforward means being clear and Geographical coverage represents a balanced and reasonable We believe that, in the context of sustainable honest in our communications. In the 2004 financial year, BT’s UK operations presentation of our economic, environmental development, it’s impossible to consider the accounted for approximately 93% of BT’s And heart is believing in what we do – being and social performance. It also sets out our economic dimension in isolation from the social turnover and 92% of our 99,900 employees. passionate about the power of communications progress in implementing the United Nations or the environmental, and vice versa. to bring friends, families and colleagues Global Compact Principles. We think the time has come for organisations to Wherever possible we cover all BT’s wholly- together in the creation of a better world. stop compartmentalising these three aspects of owned activities in the UK and internationally. business and find new ways of reporting their The sections on Employees, Suppliers, Business Our business case total contribution to a more sustainable society. Principles, Customers and Community are predominantly international in scope. We hear a lot about how preserving and This is what we try to achieve in our Social and enhancing a reputation for being socially Environmental report. Where data is not available or relates only to responsible can improve customer satisfaction Ben Verwaayen activities in a particular country, we try to be For example, we include a series of articles on QUA QU A E R L I and increase revenue. E R L I T Chief Executive T T T clear about precisely what is covered. You will Y Y I S I S G A G A E S E S
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BT Social and Environmental report | About the report 2 About the Report continued
Environmental scope Key Performance Indicators • Directional – we know when we are (LRQA) have been contracted by BT to assure getting better the report against this standard and are Although BT’s environment policy covers the There is a huge amount of information in our supported in their work by BT’s Internal entire BT Group, the scope of the environment Social and Environmental report. We have Actionable – are sufficiently in our control to • Audit Department. section is in line with our ISO 14001 established a set of key performance indicators effect change. certification and covers our UK operations only. (KPIs) to help you understand what both our A Leadership Panel was also recruited to ensure We recognise the final indicators are far from We do not currently cover the environmental stakeholders and we consider to be the most that difficult or uncomfortable issues are not perfect. While there was general consensus on performance of our overseas operations, joint important issues. Our KPIs condense complex neglected. The Panel was selected on the basis the spheres of measurement – integrity, ventures or subsidiary activities. issues into 11 key measures of non-financial of their independence of thought, experience community, customers (including digital divide), performance which have been used to enable a and insight – as well as their knowledge of However, we are now collecting data on BT’s employees (including health and safety), strategic approach to target setting. corporate accountability. key environmental impacts – energy use, environment and suppliers – it was often transport, waste and emissions to air – for some The indicators were derived from a consultation difficult to identify a single indicator that The Leadership Panel statement sets out their of BT’s most significant international activities. exercise involving report users such as investors, reflected all the intricacies and manifestations perspective on the Social and Environmental customers and employees, together with of these broad areas. This reflects the report and was last updated in May 2004 it is We expect to be in a position to publish this outside experts such as the BT Leadership difficulties in measuring the non-financial available in our online report under Assurance. performance information by March 2005. Panel. The indicators are: performance of companies. In addition to their overall assurance role, LRQA Business practice 1. Customer Dissatisfaction During the 2004 financial year, we attempted to ensure that we don’t provide unreliable data or develop a measure of digital inclusion that goes make claims that we can't back up. This Data relating to our Statement of Business 2. Addressable Broadband Market beyond just broadband. But we were unable to includes identifying and assessing the data Practice in the 2004 financial year covers our 3. People Satisfaction Index achieve this in a manner that met the gathering systems and validating data samples. UK operations only. But we have set the target requirements of a good indicator. that, by March 2005, indicators on the 4. Percentage of Women, Ethnic Minorities The work of LRQA is complemented by the awareness of BT’s Statement of Business and Disabled Employees In the 2005 financial year, the People role of BT's Internal Audit department, which undertakes substantial work to validate Practice will be extended to BT’s wholly-owned 5. Health and Safety Significant Incident Rate Satisfaction Index will be replaced by an international activities. Employee Engagement Index, which will reflect data and information. LRQA rely heavily on 6. Supplier Relationships the BT values, strategy and our commitment to the work of BT Internal Audit in forming Financial, regulatory and corporate governance keep people engaged with their colleagues, their conclusions. information is predominantly located in the 7. Ethical Trading work and customers. Annual Report & Accounts, while background 8. Greenhouse Gas Emissions The LRQA Statement outlines the way in which information about BT is set out in the Corporate We will also be developing and introducing a they undertake the assurance, together with Information section of the BT website. 9. Total Waste (including recycling rate) supplier relationship index, and an index-based their recommendations on how future reports 10. Awareness of BT's Statement of measure to provide information on our might be improved. Diversity Business Practice performance across a range of corporate Further technical details are available on how we governance issues. Existing data is based on ‘self-declaration’. 11. Community Contribution determine our critical aspects, indicators and However, collecting data on diversity for our targets in line with the AA1000 Assurance The KPIs complement the comprehensive set of Assurance international operations is more difficult than in Standard principles of materiality, completeness social and environmental performance figures in the UK. We will be investigating this further This report has been assured against the and responsiveness. the Data and targets section of our online during the 2005 financial year. AA1000 Assurance Standard. This stipulates report, where our latest performance The information contained in the Social and that three specific principles must be met: Environmental report – and its presentation – Global Reporting Initiative information and a more detailed explanation for each KPI are found. We will publish the latest • Materiality: the report must include is the responsibility of BT. This report has been prepared in accordance figures every year and make appropriate information about our sustainability The Leadership Panel and LRQA statements are with the 2002 Global Reporting Initiative (GRI) adjustments to them if circumstances change. performance to help readers make informed available in our online report under Assurance. Sustainability Reporting Guidelines. We have judgements, decisions and actions The KPIs create BT’s sustainability dashboard. also used the GRI Pilot Telecommunications This gives an at-a-glance view of the company's • Completeness: the report must include all Sector Supplement in preparing this report. Full performance. To achieve this, we had to identify material aspects Materiality R QUA L R QU A L T E I T T E I T Y Y I S details are found in the GRI Index section of our I S G A G A E S E S
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inclusive fashion and makes explicit reference to completeness. Our considerations for inclusion Prosecutions and Standards In addition, the report coverage extends beyond our legal obligations and mechanisms of of information at this second level of materiality the direct operational impacts of BT to include We have made sure that all compliance and regulatory compliance. have not led us to alter our selected key our supply chain and various considerations prosecution information relating to equality and performance indicators. of the sustainability impacts of our products From this we define seven material categories of diversity, environment, employee relations and and services. non-financial performance: Global Reporting Initiative regulatory affairs have been included in the • Business practice report and that reference has been made to Responsiveness The term ‘in accordance with’ has a specific • Community critical international sustainability standards. meaning in the GRI context and our assurance It’s important that we not only listen to the • Customers providers have ensured that we meet these views of our stakeholders but also reflect our • Employees ‘Hot Topics’ requirements. In essence it means that we meet response to those views in our policies, • Environment Finally, the users of our reports have told us that the GRI reporting principles – similar in many operations and objectives. • Suppliers the traditional, triple bottom line reporting ways to the AA1000 AS principles – and that we • Digital inclusion constructs described above still do not tell the That’s not to say that all our stakeholders include all GRI core indicators. The latter are whole story. They provide comparable measures always agree with each other on our priorities of These categories then guided us towards a set important as they were developed through a of performance, but don’t describe how the resource allocation. Even single stakeholders of key (or material) performance indicators stakeholder inclusive process and are designed company applies its values when dealing with can offer paradoxical and conflicting views – for (KPIs) which were selected following extensive to be “relevant to most reporting organisations difficult and often controversial issues. example, often expecting the lowest possible consultation, both inside and outside BT. and of interest to most stakeholders”. prices and the highest possible levels of non- Each KPI is accompanied by a strategic (or This is why we include in our report a series of We also use the GRI Telecommunications profitable service for the wider good. material) target. ‘Hot Topics’ that have, over time, covered Sector Supplement. As we say in Enlightened Values: These material categories, indicators and matters such as abuse of the internet, mobiles targets – described in more detail in the Data Peer Review and health, and BT in India. ‘Hot Topics’ are “As all groups of stakeholders rarely reach a and targets section of our online report – cover selected by our Leadership Panel and, by their consensus, a company must select the appropriate Once a year we undertake a review of the most significant and strategic components very nature, are dynamic. balance point and make, and be seen to make, sustainability reports published by other of BT’s sustainability performance: responsible decisions. telecommunications companies to identify any Completeness Seven material categories content gaps in BT’s sustainability reporting. Corporate social responsibility is then about being The report will be complete provided that all This is achieved by comparing the key or held to account for those decisions in an open and Eleven material key performance indicators material issues have been captured. material categories presented in peer reports transparent way.” Eleven related material strategic targets with BT’s KPIs and overall sustainability This requires two criteria to be met: The section on Stakeholder dialogue in our report content. To ensure that the remainder of the report 1. The process for determining materiality has online report describes our overall approach to incorporates all other important information Ten competitors and related ICT companies are been inclusive and is, in its own right, informed decision-making and at various that our stakeholders may require to make selected covering a variety of geographical complete. junctures of the report we describe how such informed decisions about our company we: areas, including those companies known to have engagement has influenced our policies, targets 2. The reporting boundaries have not been performed best in the field of sustainability and indicators. • Construct the report in accordance with the drawn so as to create an exclusion of any reporting. All the identified key categories tend Global Reporting Initiative (GRI) guidelines material issues. We believe our long history of publicly disclosed to be covered in some detail in BT’s report. sustainability targets demonstrates our • Use the GRI guidelines Telecommunications However, and as one might expect, there is not The first criterion is covered in the section on Sector Supplement commitment to allocate the necessary levels of an exact match between the key aspects used Materiality in this document. resource to improve our performance and the • Have undertaken a review of sustainability by our peers and our own KPIs. The second criterion is dependent on the external recognition we have achieved for our reports from peer companies As a result of the review undertaken in April completeness of the reporting boundaries as actions is further evidence of this. For example, • Have reviewed relevant prosecutions and 2003 we are now making more complete described in the Scope of the report section. we have been awarded the Queen’s Award for international sustainability standards disclosures on training and development and To check this we have reviewed the scope to Enterprise in the sustainable development BT's marketing activities. ensure that: category and are consistently at the top end of • Publish ‘Hot Topics’ on specific issues important rankings such as the Dow Jones of concern. Our April 2004 peer review confirmed this • All BT’s main operating divisions are included R QUA L R QU A L E I T E I T Sustainability Index. T T Y Y I S I S G A G A E S E S
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BT Social and Environmental report | About the report 4 About the Report continued
Standards Global e-Sustainability Initiative ISO 14001 with representation from business. BT’s Group Managing Director led the task force. There are many different guidelines, The Global e-Sustainability Initiative is a Our environmental management system standards and codes of practice that companies voluntary industry initiative in partnership with covering BT Wholesale, BT Retail, BT’s support Navigation are encouraged to sign up to. In this section the United Nations Environment Programme services and BT Group has been certified to this we describe BT’s approach to some of the and the International Telecommunications international environmental management We provide four separate indexes: most prominent. Union. BT chairs the initiative and continues to system standard. In addition, BT Payphones also • Alphabetical support its goals and actions, which includes our has an environmental management system AA1000 AS industry submission to the 2002 Johannesburg certified to ISO 14001. • Global Reporting Initiative (GRI) Guidelines – World Summit on Sustainable Development and to read the report in accordance with the GRI The AA1000 Assurance Standard provides a We are in the process of extending our the development of Global Reporting Initiative structure and to aid comparability with other systematic approach to ensuring that public environmental management system to our most telecommunications sector-specific guidelines. reporting organisations. sustainability reporting adheres to particular significant international operations. For more reporting standards and guidelines. information, see the BT and the environment • tatement of Business Practice, The Way We Global Reporting Initiative section of our online report. Work – to identify performance against our This Social and Environmental report is assured The Global Reporting Initiative (GRI) is a multi- business principles, aspirations and specific against AA1000 Assurance Standard. stakeholder international undertaking whose Making a Corporate Commitment commitments. mission is to develop and disseminate globally ETNO Environmental Charter BT supports the UK Government’s Making a • Nine principles of the United Nations Global applicable sustainability reporting guidelines. Corporate Commitment Campaign for targeted Compact. BT led the team at the European It is for voluntary use by organisations environmental improvement. The targets we Telecommunications Network Operators’ reporting on the economic, environmental and These can be found in the report index section have agreed with the Government have been Association (ETNO) that created its social dimensions of their activities, products of the online report. fully integrated into our environmental Environmental Charter. With 25 signatories, and services. management system. companies whose turnover exceeds 197 billion Our online Social and Environmental report Euros have now signed the charter. ETNO has been prepared in accordance with the OECD Guidelines for Multinational (www.etno.be) produces an environmental 2002 Global Reporting Initiative (GRI) report every two years to summarise Enterprises Sustainability Reporting Guidelines. An Index the environmental progress made by based on the GRI Guidelines is provided to Although it is primarily the responsibility of Charter signatories. help you read the report using the GRI governments belonging to the Organisation for Economic Co-operation and Development Guidelines for Telework in Europe structure and to aid comparability with other reporting organisations. (OECD) to demonstrate compliance with their Welcomed by the European Commission, these guidelines, BT is supportive of the basic BT was industry co-chair during the multi- guidelines have been signed by BT and its trade principles, which are covered in this report. stakeholder process to establish the new unions. The guidelines stress that telework telecommunications supplement to the GRI constitutes a form of work organisation whose Universal Declaration of Human Guidelines. This site has now been updated in increasing use is a clear sign of a trend towards Rights (UDHR) line with these guidelines. a more flexible and mobile workplace. The UDHR applies to all member states of the Under the guidelines, teleworkers are granted Investors in People United Nations. While there are numerous other equal treatment with employees working in conventions and codes from the UN and others, Investors in People (IiP) is a quality standard traditional office environments, with equal the UDHR stands as the iconic definition of for effective investment in the training and access to training and career opportunities. human rights. BT has assessed its relevant development of people to achieve business policies and procedures to ensure a consistency Global Compact goals. BT gained corporate accreditation for all with the UDHR. More details are available in the its UK activities in October 1998, and has since Human rights section of our online report. BT is a supporter of the UN Secretary General’s been successfully reassessed on four occasions. Global Compact initiative. The activities During the 2004 financial year BT successfully Winning with Integrity R QUA L R QU A L T E I T T E I T Y Y I S described in this report are intended to I S G A G A E S E S R S achieved re-accreditation as an Investor in R S U U
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