Building the future 2017 Corporate Responsibility Report We don't wait for the future. We build it. Table of contents
Strategy V Team Building Building the future 5 President’s letter together 31 How we work 6 Verizon's CSR priorities 32 Sharing our success 8 Economic impact 33 Diversity & inclusion 37 Veterans | Working with labor unions 38 Employee growth & development 39 Health & wellness 4 30 40 Safety | Pay & family benefits
Humanability Supply Chain Building Building abilities 10 Humanability partnerships 42 Our global supply chain | Supplier Code of Conduct 11 Verizon Innovative Learning 43 Supplier performance | Conflict minerals 14 Disaster response 44 Supplier diversity 9 41
Product Responsibility Governance Building Building security 16 Privacy accountability 46 Code of Conduct 17 Safety 47 Anti-corruption | Stakeholder engagement 18 Accessibiltiy 48 Governance 49 Risk management | Human rights 15 45
Environment Building 20 Energy GRI sustainability 22 Energy & emissions index 24 Efficient mobility 25 Renewable energy | Environmentally efficient stores & facilities 26 Managing waste 19 28 Green Team 50 29 Water Note: this report does not include data associated with our Oath subsidiary unless otherwise noted. Building the future Strategy 4 2017 Corporate Responsibility Report Building the future
At its core, our business And every hour, we are diligent economy. We are helping to connects people with each in safeguarding our customers’ provide underserved middle other and the world around privacy and data security. We school students with the skills them. Our technology powers manage our supply chain needed to put them on the path connections that enable people, responsibly to ensure our busi- to success in an increasingly businesses and society to do ness is not adversely impacting technology-dependent econ- amazing, groundbreaking the environment or societal omy, with a goal to reach 6 million things. That is an awesome values of communities around students by 2023. power, and not something we the globe, and we are working take lightly. It’s why we’re com- to reduce greenhouse gas emis- Lately, the notion of corporate mitted to using our technology sions. In fact, our 2022 goal is for purpose has been a hot topic and our assets to help build our networks and solutions to of discussion. But at Verizon, a brighter future. save more than twice the amount we have never wavered – we of emissions that our operations are committed to sharing our For example, our smart create and by 2025, our goal is success with the world around community and intelligent traf- to reduce the carbon intensity us to make it better. I invite you fic solutions help people use of our operations (a measure to learn about the many actions resources more efficiently, of the overall carbon we emit we took in 2017 in pursuit of our making cities cleaner and more divided by the data carried by mission to deliver the promise livable. And, we’re creating inno- our networks) by 50 percent of the digital age. vative solutions to make the from the 2016 baseline. food supply chain safer, to make healthcare more accessible Through our community and to harness the power of investment, we are addressing 5G to turn innovative ideas a very important societal into reality. These growing challenge outlined in the United Rose Stuckey Kirk areas of our business are Nations Sustainable Develop- President’s letter delivering increasing value ment Goal #4. Our society is on Chief Corporate Responsibility to our shareholders while mak- the cusp of the Fourth Industrial Officer & President, ing a significant contribution Revolution. As many as 77 per- Verizon Foundation “We’re committed to using our technology to society. cent of U.S. jobs in the year 2020 and our assets to help build a brighter future." will require technology skills, Every day, we provide according to experts. But millions meaningful work and benefits, of students lack access to tech- including a diverse and inclu- nology and tech education in sive work environment, to more today’s schools, setting them than 155,000 employees. up to be left behind in the digital
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Verizon's CSR priorities Guided by our Credo and rigorous stakeholder engagement
To establish our corporate responsibility priorities we started with our Credo, the set of principles that defines who we are and what our customers value. One of these principles is: We focus outward on the customer, not inward. With this in mind, in 2017 we partnered with Business TRANSFORMATIVE for Social Responsibility (BSR), the global sustainability nonprofit, to Issues that could significantly engage our stakeholders in the process of identifying and prioritizing change the impact of our business. those environmental, social and governance (ESG) issues most relevant • Privacy, data security & freedom of expression to our business. We interviewed customers, investors, employees, • Technology solutions to social issues nonprofits and policymakers. We also considered how ESG issues • Community investment impacted Verizon’s operations, technology and innovation. The findings, depicted in the graphic to the right, inform our strategy and reporting.
STRATEGIC Issues that may represent risk or opportunity for the business. • Employees • Climate change • Corporate governance Verizon's CSR
priorities FUNDAMENTAL Issues managed as part of responsible business practices. • Supply chain standards • Appropriate use of digital technology • Content standards & user controls
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Defining our purpose
Guided by our Credo and Sustainability goals: the stakeholder feedback we received, we identified • By 2020, 75 percent of two of the United Nations suppliers assessed will be Sustainable Development compliant with Verizon's Goals (SDGs) where our tech- overall CSR standards. nology and resources can make a unique contribution. • By 2022, Verizon’s net- The first is SDG 4, helping to works and connected provide under-resourced solutions will save more youth relevant skills for good than double the amount of jobs and entrepreneurship. global emissions that our The second is SDG 8, decou- operations create. pling economic growth from emissions and promoting • By 2025, we will reduce our resource efficiency. carbon intensity (a measure of the overall carbon we emit As part of our strategy, we divided by the terabytes of set goals that demonstrate data carried by our networks) how we are contributing to by 50 percent over the the achievement of each of 2016 baseline. these SDGs: • By 2030, we will plant 2 million Education goal: By 2023, Verizon trees in communities around will help provide 6 million stu- the world, including 250,000 dents with the skills required in areas impacted by the 2017 to put them on the path to hurricane season. success in an increasingly tech-dependent job market. See page 31 for more informa- tion about Our Credo.
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Economic impact
(dollars in billions):
Capital Cash paid for Purchases from investment income taxes* diverse suppliers
4.8 5.0 17.8 17.1 17.2 12.6 4.25
8.4 7.4
2015 2016 2017 2015 2016 2017 2015 2016 2017
*Net of amounts refunded
Pension and Cash dividends paid other retirement to shareowners benefit payments
9.5 3.0 8.5 9.3 2.3 2.3
2015 2016 2017 2015 2016 2017
8 2017 Corporate Responsibility Report Building abilities Humanability 9 2017 Corporate Responsibility Report Building abilities
Humanability Helping humans do more
At Verizon, we have one mission: to give humans the ability to do more in this world. We call it Humanability, and it’s why we’re partnering with visionaries from just about every industry you can imagine, to enable humans to do more than they ever thought possible. Using technology and data to turn innovative ideas into reality.
How can a scalpel in one state How can asphalt help save How can a sensor the size of a help save a patient in another? the environment? nickel help stop food poisoning?
Verizon is racing to build the first and Verizon’s intelligent network of sensors Verizon’s advanced network gives people most powerful Intelligent Edge Network, and cameras will give cities the ability to the ability to securely track and measure which one day will give physicians the study and analyze the flow of traffic and everything from temperature changes to ability to perform a number of functions – relay that information to operations centers, humidity and location in real-time. We’re from remote diagnostics to precision who will then use it to make communities developing new tracking devices that robotic surgery – from thousands of miles safer, smarter and greener. All while cutting will ensure foods, and even medications, away and with precise control. carbon dioxide emissions and commute won’t be compromised – keeping people time for thousands of drivers. and the global food chain safer.
View video View video View video
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Verizon Innovative Learning Giving millions of kids a brighter future
The documentary Without a Net: The digital divide in America (digitaldivide.com) encourages others to join us in our mission to help close the digital divide.
By 2023, our goal is to help access and innovative learning In 2017, almost 128,000 students provide 6 million middle school programs to under-resourced participated in our Verizon students with the skills to put schools and students across Innovative Learning initiative. them on the path to success in America. We build programs an increasingly tech-dependent from the ground up, using Our employees – the V Team – job market. We have set this Verizon’s technology to provide play an important role in our target because today, millions tech-infused curricula that are work. In 2017, nearly 1,400 of underserved students lack hands-on and immersive. These V Teamers served as STEM access to technology in the programs transform middle mentors. Learn more about classroom and at home. Without schools with digital technology, the V Team at verizon.com/ help, they will be left behind in immerse minority boys and rural about/careers. the digital economy. In 2017, girls in tech and entrepreneurship we launched a documentary education, and train high school and a national movement that students to put design thinking spotlights the crisis. principles to use in solving real- world business and societal To reach our goal, our Verizon challenges. And we are diligent Innovative Learning initiative in measuring the impact of delivers free technology, free our programs.
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2017 Program Impact: National Education Initiatives
More than 1 million students have participated in our education programs since 2012. Here are the highlights from four of our most impactful programs: schools, design thinking, rural girls and minority boys. To learn more about the Verizon Innovative Learning programs, visit verizon.com/inspires.
Verizon Innovative Learning schools (VILs) program We launched our schools program with Digital Promise in eight schools in 2014. During the school year that began in 2017, there were: 73 43,683 2,538 78% participating participating participating of students are eligible to receive schools students teachers free or reduced-cost lunch
2017 results* Teachers saw improvements Student attitudes improved
75% said that VILs 62% said using 47% felt more 48% believed that enhanced tablets made confident in having the tech- student their instruction school when nology makes engagement more effective they use their science more technology interesting 49% said that VILs 63% said VILs helped 49% felt school 40% believed that improved their them reach goals was more fun having the tech- interactions they already set nology makes with students for their class- math more room and for their interesting teaching
*This includes 18,324 students and 1,317 teachers in the 45 schools that were active during the 2016-2017 school year.
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2017 Program Impact: National Education Initiatives (continued)
Design thinking program
94% 87% 85% were more improved increased interested in their problem- their STEM STEM subjects solving skills proficiency Minority boys program 91% increased ability in science Rural girls program 90% increased ability 86% were more aware of the variety of in math STEM careers
76% learned problem-solving skills 86% increased ability in English/language arts 68% wanted to own a business someday
Learn more at Verizon.com/inspires.
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Disaster response Helping to rebuild communities
In 2017, Verizon and its employees rushed to the aid of customers who were victims of hurricanes, wildfires and floods. Our employees proved to be as powerful and resilient as our network, and their efforts helped millions of people impacted by these disasters get back on their feet. In total, Verizon donated $75 million to disaster recovery and community projects throughout the U.S., including Puerto Rico, with $16.1 million supporting recovery efforts from Hurricanes Harvey, Maria and Irma, the California wildfires and other disasters.
More than 2,000 employees from Verizon’s call centers served as volunteers, taking donations for the Hand in Hand telethon to benefit survivors of Hurricanes Harvey and Irma.
Verizon committed $10 million to support Hurricane Harvey relief efforts and more than $6 million for Hurricanes Maria and Irma, the California wildfires and other disasters.
14 2017 Corporate Responsibility Report Building security Product responsibility 15 2017 Corporate Responsibility Report Building security
Privacy Providing transparency and choice
We’re a company that transforms and take appropriate steps To learn more about Verizon’s privacy policies, read a how people, businesses and to continue to provide our message from our Chief Privacy Officer, Karen Zacharia, things connect with one another, customers with strong and here: http://www.verizon.com/about/privacy/privacy- and we understand that the meaningful privacy and security officer-message. Our full Privacy Policy is available here: success of our products and protections. http://www.verizon.com/about/privacy/full-privacy-policy services depends on customers' trusting that their privacy is protected and their choices Government requests are respected. Verizon was the first in the Our goal is to provide clear and telecom industry to issue a transparent communication Transparency Report that about the information we collect provides detail on subpoenas, and how we use it. We are also court orders and other official committed to providing our cus- requests for information. Report tomers with choices. Protecting updates are issued every six the privacy and security of months. To learn more about customer information is a how we handle government responsibility we take seriously. requests for customer infor- mation, both in the U.S. and As we bring new products and internationally, please see our services to market or expand most recent reports here: our offerings through acquisi- http://www.verizon.com/about/ tions, we examine the relevant portal/transparency-report/. privacy and security questions,
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Our Content Policy for Verizon leader Mobicip, that help Verizon is a member, is networks ensures that content children make positive dedicated to giving youth is age-rated, conforms to choices everywhere and families knowledge recognized third-party content- they browse. and resources that provide rating systems, when available, a safe and rewarding wire- and is consistent with industry • FamilyBase, a tool that helps less experience. best practices. with parenting in the digital –– Family Safeguards and world by allowing parents to Controls is a website We meet our customers’ need monitor their child's device that lets customers follow, to manage their individual activity, set limits on usage, share and participate in access to content by providing block inappropriate apps the ongoing conversation them with an array of content- and websites and set age- about digital safety management tools, including: appropriate content filters. and security.
• Fios TV parental controls, • Verizon Internet Security which go beyond rating- Suite, which helps protect Radio frequency emissions based filters and allow computers, personal infor- parents to block content mation and children from a Verizon provides information by age group, control the wide array of online threats, on radio frequency emissions display of certain program- including hacking and in several locations: at ming and information on identity theft. verizonwireless.com; on a the on-screen guide, and printed insert in the box of every even block specific channels • Additional online resources new or refurbished cell phone or categories. –– The Family Online Safety that directs customers to our Institute (FOSI), an inter- website; and in all Verizon retail • My Fios app, that enables national nonprofit of stores, where a sign is posted parents to control how much which Verizon is an advi- advising that such information Safety time their kids spend online sory committee member, is available on request. through per-device internet is dedicated to making the Instilling the confidence usage limits, and lets parents online world safer for kids set daily or weekly time limits and families through to use technology safely on any connected device. enlightened public policy, industry best practices and responsibly • Enhanced content-filtering and FOSI’s Good Digital tools for smartphones, tab- Parenting initiative. lets and computers, offered –– Growing Wireless, an through a partnership with initiative of industry asso- content-filtering-technology ciation CTIA, of which
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Verizon has a longstanding Verizon’s Center for Customers commitment to equal access with Disabilities serves wireline to our products and services, customers and offers direct including for customers in American Sign Language ser- rural areas and customers vices. The Verizon Wireless with disabilities, so that every- National Accessibility Customer one can access the benefits Service Center supports of technology and can fully customers who need additional participate in the digital world. assistance to meet their wire- less needs.
Universal design principles Rural access For 30 years we have adopted Universal Design Principles that Our LTE in Rural America (LRA) commit our company to provid- program is a collaborative part- ing products and services that nership with rural carriers to can be used and enjoyed by the accelerate the deployment broadest range of customers, of rural wireless broadband including youth, individuals with services. disabilities and seniors. At the end of 2017, our 22 LRA Fios TV offers accessibility partners continue to provide features for our visually impaired LTE service in their rural areas customers, including: via a growing network of over 1,350 active sites. The leases • Text-to-Speech functionality for the 22 participants cover Accessibility for the Fios TV on-screen nearly 2.9 million people in guide. 17 states and more than 226,000 square miles. The LRA program • Descriptive Video Services, continues to be an important which, when available from the part of providing high-speed video programming provider, data to rural communities. provide a narrative description of key visual elements within In addition to the LRA program, a broadcast. starting in 2018, Verizon will deploy high-speed broadband to more than 15,500 rural loca- tions in upstate New York.
18 2017 Corporate Responsibility Report Building sustainability Environment 19 2017 Corporate Responsibility Report Building sustainability
Energy-efficient solutions More solutions to reduce greenhouse gas emissions
One of the most important ways that we help humans do more is to enable them to be more resource-efficient. Our connected solutions help our customers save energy and reduce their carbon emissions. We work with the Carbon Trust, a respected nonprofit, to measure the yearly
reduction in CO2 equivalent (CO2e) emissions our customers are achieving through the use of our products and services. In 2017, our solutions enabled the avoidance of a minimum of 7.7 million
metric tons of CO2e. The emissions avoided represent approximately 138 percent of emissions associated with our operations (Scope 1 and 2).
EMISSIONS BUSINESS PRODUCTION TRANSPORTATION BUILDINGS POWER GRIDS HEALTHCARE SOURCE TRAVEL OF GOODS
Smart meters & Verizon Smart building Remote patient Telecommuting Telematics demand response Dematerialization solution management monitoring units
U.S. businesses, U.S. utilities, U.S.-based U.S.-based Patients, medical U.S.- based User city & state businesses customers drivers professionals customers governments & customers
Reduction in kWh of Reduction in energy (reduced Reduction in miles Reduction production of Reduction in miles Reduction in miles transmission and driven (gallons of in kilowatt physical products Measurement driven (gallons of driven (gallons of distribution losses, gas not used) and hours (kWh) of (including gas not used) gas not used) lowered peak demand number of days energy used newspapers, CDs, and enhanced energy in hospital DVDs, etc.) efficiency)
CO e avoided 2 3,893,080 1,257,379 2,698 1,734,219 121,215 702,053 (metric tons)
Our solutions enabled the elimination of 7.7 million metric tons of CO2e emissions, equivalent to removing 1.6 million cars from the road for one year.
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Meaningful progress continues
Verizon’s partner, IPS Group, is a leader in smart parking meters in cities across the U.S. In 2017, enabled by Verizon connectivity, IPS' meters reduced the number of miles driven to find available parking, avoiding By 2022, Verizon’s networks
and connected solutions will 34,192 save more than metric tons of CO2e emissions. 2X the amount of global emissions that our operations create.
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Energy & emissions Reducing our environmental impact
Throughout Verizon’s operations we have adopted strategies to minimize our environmental impact and drive greater efficiency. More than 93 percent of Verizon’s emissions come from the electricity we use to power our networks.
In 2017, we implemented several initiatives to increase energy efficiency in our larger wireless core data centers and made progress in lowering energy usage at these facilities. We also continued to invest in improving the overall energy efficiency of our facilities with numerous initiatives that included mechanical and whole-building control systems, LED lighting, HVACs and chillers, high-efficiency motors, economizers, cable dehydrators and high-efficiency uninterruptible power supplies.
2016 emissions profile (CO2e metric tons)* Our emissions by scope (CO2e metric tons)
4.3% 2.3% % Change 2014 2015 2016 2015-2016 Electricity and other indirect sources Scope 1 487,082 445,704 372,496 -16.42% 5,259,727 Scope 2 5,452,013 5,529,153 5,259,727 -4.87% Vehicle fuels 241,942 Tot al 5,939,095 5,974,857 5,632,222 -5.73% Building and other fuels Scope 1 & 2 130,554 Scope 3* 43,987 43,333 91,365 +111%
* Exclusively business travel. 93.4% *We are currently undergoing independent external assurance of our 2017 Scope 1 – All direct sources of emissions owned or controlled by Verizon, GHG emissions and carbon intensity. We will report our results later this year. with the main categories being fuel to power our fleet, heat our buildings and power our back-up generators. Scope 2 – Indirect emissions sources generated off-site, but purchased by Verizon received an A- on CDP’s Verizon. The main category is electricity to power our networks and data 2017 evaluation and is ranked in CDP’s centers, plus a small amount of steam and heat purchased to heat our buildings. Leadership scoring band. This is Scope 3 – Emissions from corporate business travel (air and rail) based on DISCLOSURE INSIGHT ACTION recognition that Verizon is a leader travel reservations. among the companies that voluntarily disclose their environmental impacts.
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Having exceeded our 2020 goal We are currently undergoing four years early, in 2016 we set a independent external assurance new carbon intensity reduction of our full-year 2017 Scope 1, 2 target (the carbon our business and 3 (exclusively business emits divided by the terabytes travel) GHG emissions and of data we transport over our carbon intensity. Later this year, networks). The new 2025 goal we will report our 2017 results is a 50 percent reduction from in our CDP Climate Change our 2016 baseline. Response and on our website. For more information, please Our success to date in reducing refer to our GHG Emissions carbon intensity has been made Reporting Standards. possible by copper-to-fiber migrations, investments in green energy, building improve- ments and changes in our fleet operations. We are pursuing 2025 Goal: opportunities for continued, sustained progress and will 50% continue to measure and dis- reduction close our performance against in carbon intensity Carbon intensity the 2025 carbon intensity goal. from our 2016 baseline
Our results are independently assured. We commissioned independent external assur- ance of our Scope 1, 2 and 3 (exclusively business travel) greenhouse gas (GHG) emis- sions and carbon intensity for 2016 and reported the results in our 2017 CDP Climate Change Response (CDP.net) and on our corporate site.
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Efficient mobility
Using electric vehicles (EV) for commuting reduces employees’ emissions and carbon footprint, so we’re expanding our capacity for EV charging at Verizon facilities. Electric vehicle charging 2017 Progress: 2020 Goal: 49 75 Verizon locations with Verizon locations to EV charging stations offer EV charging
Reducing unnecessary trips to customer locations saves time, Our fleet fuel consumption (1,000 gallons) costs and fuel. That's why we've implemented sophisticated customer self-installation, self- diagnostic and online trouble- shooting tools, which help to reduce the number of service visits required by our technicians. These tools contribute to greater efficiency for usage of our fleet and its fuel consumption. Also, 32,080 25,513 23,919 in 2017, we added 234 hybrid 2015 2016 2017 vans to our fleet in New York to further improve our fuel efficiency in the future.
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Renewable energy
Over the past six years, Verizon In 2017, we made initial progress has made it a priority to deploy toward our 2025 goal by install- more green energy resources ing 30KW of solar energy at – such as solar and fuel cell one of our European facilities 2017 Status: 2025 Goal: technology – into our facilities. in Luxembourg. 20MW Add 24MW We’ve set a goal to add an addi- of green energy more green energy in our tional 24MW of green energy in In 2018, we will continue to work operations – doubling our our operations by 2025. toward our 2025 goal. current capacity
Environmentally efficient stores & facilities
We’re focused on applying best of economizers, which bring Committed to pursuing practices to improve the efficiency outside air into the HVAC system ENERGY STAR certification for of our facilities, including data when it is cooler outside than 354 total LEED-certified buildings 100% centers, which are especially in, thereby decreasing energy of eligible buildings energy-intensive. By implement- use. In 2017, we installed 5,654 ing better cooling technologies new economizers, bringing our at our Colorado Springs data total deployed to approximately
center, we achieved a significant 33,000 units. These systems 254 5th ENERGY STAR®-certified consecutive year named as an improvement in Power Utilization have produced estimated reduc- buildings, including retail stores, ENERGY STAR Partner of the Effectiveness (PUE), reducing tions in electrical consumption of offices and distribution centers Year, maintaining our Sustained PUE to 1.28 in 2017. Across our 214 million kilowatt hours and Excellence recognition facilities, we make extensive use CO2e of 148,000 metric tons.
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Managing waste
Verizon is dedicated to a standard of environmental stewardship that meets or exceeds legal requirements.
Paper waste We are committed to the Over the past three years, sustainable sourcing and Verizon Wireless has reduced use of paper, as detailed the amount of printed materials Goal: 2017 Progress: for customer orders by 49 per- in our Paper Sourcing and At least Use policy. cent. For 2017, this represents 70% avoiding using approximately 50% In 2017, we exceeded 354 tons of paper or about of our paper annually this goal with 70 percent 7,000 trees. includes 10 percent (19 percent more than post-consumer waste 2016) of our sourced paper (PCW) content.* including at least 10 percent PCW content. *This excludes billing segments that are not able to print on recycled-content paper due to machinery issues.
2017 recycling results Recycling Internal Community There’s a big opportunity to 76.9 million 741,731 reduce the number of cell phones, pounds of network pounds of e-waste set-top boxes and other elec- equipment and office collected at 49 recycling tronic devices that end up in materials recycled rallies in 2017 – enough landfills by reusing or recycling in 2017 to offset 1,131 metric tons of CO e emissions them. We refurbish and redistrib- 2 V Team and Community: ute Fios set-top boxes and recycle Current goal is to recycle: Verizon-owned equipment, 49% 3.2 million 4 million including network equipment, reduction in the use of pounds of e-waste pounds by 2020 batteries and other supplies. plastic model phones collected at community Verizon Internal: Also, we hold public recycling for marketing purposes and employee recycling Current goal is to recycle rallies to collect e-waste in the since 2015 – equivalent to rallies between 2009 communities we serve. eliminating approximately and 2017 120 million 150 tons of plastic pounds of Verizon assets between 2017 and 2020 26 2017 Corporate Responsibility Report Building sustainability
Verizon internal recycling initiatives
Batteries and telecom materials
Our practices for recycling batteries exceed regulatory mandates. Verizon sends materials from U.S. operations for recycling to approved facilities in the U.S. or Canada. These facilities are audited at least every five years. In addition, we require suppliers to send their used batteries to approved recycling facilities that meet Verizon’s Environmental, Health and Safety Standards.
In 2017, we recycled approximately 77 million pounds of telecommunications equipment, batteries, paper, cardboard and other items.
2017 recycled materials (in lbs.)
Municipal recycling 38,243,200 Telecom equipment 30,401,462 Customer Lead acid batteries 7,703,466 devices International Telecom In 2017, our customers returned Equipment* 454,099 millions of devices for recycling. Paper/cardboard 85,595 100% Other batteries 59,297 of devices returned were repurposed, reused or recycled. Grand total 2017 76,947,119 100% *Note: International Telecom Equipment is new data of accessories were also available in 2017. repurposed, reused or recycled.
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Green Team Grassroots environmental stewardship
Verizon’s Green Team is a global, voluntary, grassroots employee effort dedicated to environmental stewardship through events like community recycling, gardening and educational seminars.
2020 Goal: 20% 24,920 35 251 of employees on 2017 Green Team countries and territories Green Team the Green Team membership with Verizon Green Team events held in 2017 members in 2017
Verizon advances Partnering with organizations like the Arbor Day Foundation, NFL sustainability we sponsored the planting of In 2013, Verizon became the first-ever sustainability more than 82,000 trees in 2017, partner for the NFL Super Bowl. In 2017 our exceeding our goal of 60,000. involvement included support for recycling rallies Our goal for 2018 is to sponsor held in Houston and Minneapolis (host cities of the planting of 100,000 trees, the 2017 and 2018 Super Bowls) which, together, at least 50,000 of which will be collected more than 53,000 pounds of recyclable in areas impacted by the 2017 electronics. Other Verizon-led NFL partnerships hurricanes. In addition, by 2030 included 21 tree planting events to support we plan to plant 2 million trees urban forestry initiatives and reforestation in communities around the projects, and three pollinator events at zoos world, including 250,000 in and community gardens. areas impacted by the 2017 hurricane season.
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Water
Water is one of our most Our 2016 water consumption precious – and threatened – was independently assured. environmental resources. We Water consumption for 2017 are doing our part by setting is currently being assured. conservation goals and imple- menting processes to reduce In 2017, Verizon received 181 our water consumption. notices regarding compliance with state and local environ- Results: mental regulations. Most of the Our 2016 water usage reflects notices were for record keeping a reduction of or other minor issues, and we are taking steps to address these
203.2 million notices and prevent them from gallons against our 2014 baseline, meeting our 7 percent reduction occurring in the future. goal 4 years early
2025 Goal: 5% reduction (vs. 2016 baseline)
29 2017 Corporate Responsibility Report Building together V Team 30 2017 Corporate Responsibility Report Building together
How we work Our Credo
As we prepare the V Team to continue to innovate in the digital age, everything starts with our Credo. It provides an aspirational foundation and defines who we are and how we work, along with our core values of integrity, respect, performance excellence and accountability.
focus outward on the customer, not inward.
embrace diversity and personal development. How We Work Created from employee opinion survey research and employee keep our commitments to each other and our customers. focus groups, this statement reflects how V Teamers sum up the value of working at Verizon. respect and trust one another. The V Team, on working at Verizon: The work I do listen to and value another’s view regardless every day changes the way people live, work and play. of title or level. I thrive on challenges and have opportunities to grow. believe integrity is at the core of who we are. I am inspired because my work matters. I am part of We a winning team and collaborate with the best and are committed to doing the right thing and follow brightest. The pay and benefits are awesome, and sound business practices. they help me reach my personal, professional and financial goals. are good corporate citizens and share our success with the community. We are Verizon: proud history, bold future.
run to a crisis, not away.
Learn more at: http://www.verizon.com/about/our-company
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Sharing our success Supporting neighbors, building community
Across the communities we Employee giving 181,262 serve, Verizon employees are and volunteerism volunteer hours by Verizon employees engaged in supporting neigh- in support of nonprofits bors and building community As part of our culture and the capacity, and give generously of employee experience, V Teamers their time, talent and financial are committed to building the $8,596,675 donated by Verizon employees resources. Collectively, their communities where they work to schools and nonprofits positive impact is vast, and and live by volunteering their time Verizon encourages our and giving generously. employees’ passion to $9,210,117 serve others. • Through our Matching Gifts donated through Verizon’s Matching Program, V Teamers donated Gifts program – supporting employees’ millions of dollars in 2017 with donations of time and money to schools and charitable organizations corporate matching gifts of up to $1,000 for their personal charitable donations and up to $5,000 for donations to eligible • Nearly 25,000 V Teamers across organizations and agencies work- educational institutions. 35 countries and territories ing to curb domestic violence. belong to the Verizon Green • Team members who volunteer Team, our grassroots collective In 2017 Verizon: at least 50 hours at a nonprofit of volunteers dedicated to during a calendar year can environmental stewardship. • Collected 579,605 phones and generate a $750 donation from converted them into resources Verizon to that organization. to support survivors. Since the HopeLine: Addressing the program’s inception we have • Through our Verizon Innovative challenge of domestic violence collected more than 13.2 million Learning initiative, we’re giving phones. students the skills to succeed in Verizon established the HopeLine an increasingly tech-dependent program in 2001 to help prevent • Donated 11,351 mobile phones job market. In 2017, nearly 1,400 domestic violence and support with voice and text-messaging V Teamers shared their time and its survivors. service for use by survivors. expertise by serving as science, technology, engineering and Through this initiative, we collected • Gave $7.6 million in cash grants math (STEM) mentors. and sold used mobile devices to to nonprofits that support provide cash grants to domestic violence prevention.
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Diversity & inclusion Creating a great experience for all employees
The center of what we do is to Verizon’s commitment to We continue to invest in the We promote diversity and connect people and cultures diversity and inclusion encom- growth of women and people encourage the contribution across the world. We under- passes the principle that all of color on the V Team. Among of diverse business partners stand that we cannot fulfill employees should be compen- our most successful initiatives: to our success in our Short- that role without a strong and sated equitably for similar work Term Incentive Plan, which enduring commitment to the and should have an equal • A 12-month mentorship includes a 5 percent diversity diversity and inclusion that opportunity to contribute and program that matches and sustainability metric relating reflects our world. One of our advance in the workplace. senior executives and to the percentage of minority foremost objectives as an women V Team members and female employees based organization is to create a In January of 2017, Verizon with the goal of advancing in the U.S., our overall supplier collaborative, inclusive and published its Pay Equity leadership skills and spending directed to minority- diverse environment – within Commitment where it commit- development. and female-owned firms, and Verizon, with our customers, ted to identify and promote best reductions in carbon intensity. and among our business part- practices in compensation, • Competitive Advantage, a ners and suppliers. We believe hiring, promotion and career six-month program support- Verizon is a sponsor of Women this commitment is essential to development; to develop strate- ing managers who are people in Technology and Entrepre- the success of our business. gies to reduce unconscious bias; of color, fosters leadership neurship in NY (WiTNY). We and to make hiring, promotion and development and networking partner on a number of initia- Our Equal Employment compensation decisions that with senior leaders. tives, including the "winternship" Opportunity Policy implements promote pay equity. In October program – two-week internships our commitment to diversity 2017, Verizon removed from its • We launched in 2016, and are for college freshmen and sopho- and inclusion. employment applications around expanding in 2018, required mores during their winter break. the globe all questions seeking workshops for our leadership In January 2017, Verizon was the current or past salary information team to explore unconscious first company to partner with of applicants for employment. bias and how to mitigate its WiTNY to pilot the initiative. We impact to create a more had five winterns who all came inclusive workplace. back for internships with Verizon in the summer of 2017. As a result of the pilot, in 2018 WiTNY plans to expand the program to include more than 40 companies and 170 students.
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Verizon employees as of 12/31/17*
Profile
TOTAL % OF 2015 ETHNIC GROUP WORKFORCE (2017) TOTAL WORKFORCE U.S. LABOR FORCE
American Indian/Alaskan Native 620 0.5% 0.7% Asian 12,007 8.6% 5.4% Native Hawaiian/Pacific Islander 429 0.3% 0.2% Black/African-American 26,472 19.0% 11.4% Hispanic/Latino 14,490 10.4% 15.8% Two or more races 3,136 2.3% 2.2% White 81,922 58.9% 64.4% Total U.S. 139,076 89.5% – International 16,324 10.5% – Total worldwide 155,400 100.0% –
Employee profile as of 12/31/17 by gender
U.S. International Total Verizon Percentage of Percentage of Percentage of total workforce (2017) 2017 U.S labor force total workforce (2017) total workforce (2017)
34.5% 47.1% 30.2% 34.1%
65.5% 52.9% 69.8% 65.9%
Ethnic minorities represent Women represent 26.9% 29.7% of the total U.S. senior of U.S. senior management base management (vice (vice president and above) president and above)
* These data points are inclusive of Oath.
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Recognition and recruiting partnerships
Verizon continues to earn • Top Companies for Execu- Building stronger In 2017 Verizon launched numerous awards for our tive Women. For the 10th relationships AdFellows, an eight-month success in building a diverse year, the National Associa- marketing fellowship in which and inclusive culture. tion of Female Executives Verizon is a sponsor of numerous participants rotate through Among them: named Verizon to its annual diversity organizations and Verizon and our agency partners list of Top Companies for partners with their local chapters to gain both client and agency • 100% score, Disability Executive Women. located on college campuses experience. The project’s objec- Equality Index. For the where we recruit new talent. Our tive is to improve diversity within second consecutive year • Hispanic Association on partnerships include The Anita the marketing profession, and is we earned a 100% rating on Corporate Responsibility Borg Institute and the Grace focused specifically on African- the Disability Equality Index (HACR) provided Verizon Hopper Celebration of Women American and Hispanic talent. (DEI), demonstrating the with a maximum rating in Computing event, Corporate The initiative launched with 19 value of our diverse and for 2017. Partner Council for the Society of participants and will expand to inclusive experiences for Women Engineers, Corporate 30 in 2018. Our goal is to offer employees, customers • Black Enterprise named Affiliate for the National Society positions to 90 percent of those and suppliers. Verizon to its 2017 Top 50 of Black Engineers, Industrial who successfully complete the Companies for Diversity Partner Council for the Society fellowship, to be hired either by • 100% rating in the 2018 list. The publication has of Hispanic Professional Engi- Verizon or our agency partners. Corporate Equality Index recognized Verizon for neers, Great Minds in STEM’s (CEI), a survey conducted four consecutive years. Hispanic Engineering National by the Human Rights Cam- Achievement Award Conference, paign Foundation, earning Learn more at: The U.S. Business Leadership Verizon the distinction of http://www.verizon.com/ Network and the National Busi- being one of the Best Places about/our-company/ ness Disability Council. to Work for LGBTQ equality. awards-recognition. Verizon has scored 85 points or better in 12 of the years we've participated.
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Empowering employees, strengthening our culture
We pride ourselves on being a leader in diversity and inclusion, and engaging and empowering our employees and executives are important contributors to that success. Our global Employee Resource Groups (ERGs) serve as ambassadors of diversity and inclusion by providing members with opportunities to celebrate their common ties, as well as to network, find and/or act as mentors, learn new skills, impact the business and give back to the community.
Verizon sponsors nine ERGs:
• Asian-Pacific Employees for Excellence • Black Resource Association of Verizon Employees • Disabilities Issues Awareness Leaders • Gay, Lesbian, Bisexual and Transgender Employees of Verizon and Their Allies • Hispanic Support Organization • Native American People of Verizon • South Asian Professionals Inspiring Corporate Excellence • Veterans Advisory Board of Verizon • Women’s Association of Verizon Employees
We want every member of the V Team to bring their best selves and feel included at work every day. So in addition to engaging thousands of V Teamers through our ERGs, we strengthened our best practices for a diverse and inclusive culture in 2017 by expanding the unconscious bias training initially launched for our entire senior management team. Live workshops and virtual training were launched and will cover all levels of the organization in 2018. As we continue to learn about and discuss the impact of unconscious bias, we will explore opportunities to ensure our policies, practices and systems evolve to reflect that learning. 36 2017 Corporate Responsibility Report Building together
Veterans Enhancing a veteran-friendly workplace
In 2017, we hired 1,038 veterans. In 2017, Verizon was named by U.S. Veterans Magazine We also engage and support (USVM) to its list of the nation’s Best of the Best Top military spouses with career Veteran-Friendly Companies, and was also named a guidance by connecting them Top-10 Military Friendly company for our commitment to a military-spouse recruiter. to tapping into military talent. We’re proud to have more than 9,500 veterans serving our customers. Our military leave their family members and policy allows our service mem- financial needs are cared for. bers to continue serving their country. When V Teamers are Learn more at: http://www. called up to active duty, we verizon.com/about/careers/ bridge the gap between military military pay and Verizon pay to ensure
Working with labor unions
We have a long history of Verizon continues to meet changing technology and com- continue to provide our team providing good jobs and work- regularly with national and petition are having on our cus- members with competitive ing with the Communications local union leaders to discuss tomers, our team members and wages and valuable benefits Workers of America and the key business topics, including the company. that rate among the best in International Brotherhood of safety, benefits, customer ser- our industry. Electrical Workers – the two main vice, plans to improve operational In keeping with Verizon’s history unions that represent about processes, our business per- of providing high-quality service 35,200 of our team members. formance, and the impacts that and good jobs, our agreements
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Employee growth & development Investing in V Team success
Our culture of learning helps V Teamers grow, advance and reach their full professional and career potential.
Learning & development Tuition assistance V Team members/Verizon funding In 2017, we invested $239.8 million 22,585 19,803 19,388 in learning and members and members and members and development initiatives for our employees $94.1 million $82.1 million $77.0 million in 2015 in 2016 in 2017
V Teamers completed Team members are provided up to 5.5 million $8,000 hours of training in 2017 annually through our Global Tuition Assistance Program to fund higher-education studies for enhancing their careers at Verizon.
Employees have access to more than V Team training
18.1 thousand Average annual hours of training per team member learning experiences.
50.7 40.3 35.3 2015 2016 2017
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Health & wellness Comprehensive approach, positive outcomes
We believe health, wellness • We promote a healthy and safety are fundamental V Team through a compre- to success, and provide hensive range of on-site ser- comprehensive resources vices delivered as part of our that help V Teamers and their “Be Well, Work Well” pro- families succeed in life. grams. For example, in 2017:
–– More than 6,000 employ- Mental health ees received a free health screening for cholesterol, • Our Employee Assistance blood sugar, blood pres- Program (EAP) is available sure and body mass index. Be Well, Work Well to V Teamers and their –– More than 14,000 employ- Programs families 24x7x365. ees received flu shots. In 2017, –– 637 women age 40+ took In 2017, nearly 56,000 memberships at thousands we covered nearly • Our Resilience Toolbox advantage of the on-site employees used the portal. of gyms nationwide. provides resources that mammography screenings. 600,000 managers and V Teamers • Almost 32,000 team During 2017, our centers had: beneficiaries, investing almost can use to support a team- members logged in to their –– Nearly 14,000 members $2.8 billion mate who may be struggling Fitness personalized “My Health –– 7,575 fitness, wellness to deliver healthcare benefits with challenges at work Vault” to check their Health and community-focused and services alone. or home. • Verizon employees have Assessment score, Health events access to a wide range Screening results and Life- –– 51,000 personal/group of health and wellness style Incentive Tracker to training sessions Healthcare resources at any time keep abreast of their health –– Onsite Run/Walk events through the WellConnect status, all in one place. with 4,395 participants • Our benefits package portal. This portal hub main- –– Additional local runs with provides access to high- tains information on preven- • V Teamers use our 37 Health 3,273 participants quality, affordable healthcare tive care, tobacco cessation, and Wellness Centers to coverage that includes medi- physical activity, nutrition, participate in fitness and cal, dental and vision care mobile tools, wearable wellness activities, plus they along with disability and devices and much more. have access to discounted insurance programs.
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Safety Smart At work, at home and on the road Aware Focused BEEquipped Our culture of safety begins with best practices and working injuries and illnesses rate was our Be Safe principles – Be Smart, safely with evolving technology 1.30 per 100 employees, well Aware, Focused and Equipped. such as small cells. Training below the Bureau of Labor The information emphasizes topics included aerial lift safety, Statistics telecommunications keeping V Teamers safe at work, lead awareness and exposure, industry average of 2.0. at home and while on the road. pole removal and equipment We created 15 new courses transfer, pole climbing and radio during 2017 to educate about frequency. Our occupational
Pay & family benefits Caring for V Teamers and their families
Our competitive pay and valuable • Under our Paid Time Off • Our parental leave policy • Additional benefits include benefits provide security for policy, V Teamers receive allows moms and dads to emergency backup childcare V Team families. up to eight paid company take paid leave to bond with and eldercare service; the holidays, up to six paid per- their newborn or adopted Bright Horizons Special sonal days and, depending child. The program was Needs program for parents Pay and time off on years of service, two to enhanced to provide eligible with special needs children; • Our pay and benefits pack- five weeks of paid vacation. employees up to eight and the myStrength stress- age provides a competitive weeks of paid leave, at reduction tool, offered as base pay, incentives, a profit- 100 percent of base pay. part of our comprehensive sharing award and an indus- Family assistance Mothers of newborns can Employee Assistance try-leading 401(k) savings • More than 7,000 V Teamers take as much as three Program. plan that matches 6 percent are regularly leveraging months of paid time off. of eligible pay. our alternative work pro- grams, such as Flex-Time, Compressed Work Weeks and Telework.
40 2017 Corporate Responsibility Report Building partnerships Supply chain 41 2017 Corporate Responsibility Report Building partnerships
Our global supply chain
Our global supply chain includes over $50 billion in goods and services procured around the world. These goods include handsets, accessories and network equipment to support our global infrastructure. The vice president who leads supply chain operations also serves as Verizon Chief Sustainability Officer and Chairman of the Global e-Sustainability Initiative (GeSI).
Supplier Code of Conduct
Our suppliers align with our Verizon reserves the right to Supplier Code of Conduct, review or audit our suppliers’ which means acting with integrity, compliance with the Supplier obeying all applicable health, Code. We also incorporate safety and environmental laws, ongoing compliance into our and protecting confidential and business relationships and proprietary information. procurement decisions.
Our Supplier Code of V Teamers are trained about Conduct also: social and environmental supply chain issues, including • forbids the use of child supplier assessment, through labor, forced labor and initiatives such as green bag discrimination; sessions, monthly Green Insider newsletters, and on-site recruit- • protects employees’ rights ing and engagement events. to freedom of association and collective bargaining, as Our complete Supplier Code permitted by local laws; and is available here: http://www. verizon.com/about/sites/ • describes how suppliers default/files/Verizon-Supplier- should work with us on Code-of-Conduct.pdf. compliance and enforce- ment issues.
42 2017 Corporate Responsibility Report Building partnerships Supplier performance Assessing our partners’ compliance
We use a third-party platform current program. Both Verizon bolsters Verizon’s CSR program Verizon wants to do business from EcoVadis to assess our and the supplier benefit from by going beyond what suppliers with companies that prioritize suppliers' corporate responsibil- this program. pledge in their policies, to inves- health, safety and environmental ity performance. Since 2013, we tigate their actual performance stewardship. To that end, we have invited 405 key suppliers to Verizon has committed that 75 on-site. JAC has completed 366 partner with the third-party the platform. EcoVadis’ assess- percent of suppliers assessed on-site supplier audits since its assessment firm, Avetta, to ment approach focuses on four will be compliant with the overall inception in 2010, and 89 of them screen our relevant contractors’ key areas: environment, fair labor EcoVadis assessment, consisting were completed in 2017. safety and environmental perfor- practices, ethics/fair business of the four combined categories, mance. Avetta reviews injury practices, and supply chain. by 2020. Verizon joined the group in 2013 rates, environmental health and as the first U.S.-based member safety violations, fines, corrective EcoVadis combines supplier Verizon is a member of the Joint and serves on both the Leader- actions and other metrics, and questionnaire input with its own Audit Cooperation (JAC), an ship Assembly and Operational compares the data to industry research based on public sources association of telecom opera- Board. Other members include benchmarks. When weaknesses to benchmark suppliers on their tors that collaboratively audits AT&T, Deutsche Telekom, Orange, are identified, Verizon works corporate responsibility perfor- suppliers common to JAC Telecom Italia, Proximus, KPN, with contractors to review root mance. When weaknesses are members and looks for opportu- Rogers, Swisscom, Telefónica, causes and corrective action identified, Verizon works with the nities to improve CSR across the Telenor, TeliaSonera, and plans. More than 2,000 contrac- supplier to create a corrective Information and Communications Vodafone. tors have registered in Avetta. action plan and improve their Technology industry. JAC
Conflict minerals
We encourage our partners Conflict Minerals Statement to take steps to ensure that contains more information on their products do not include our approach to this issue and materials that either directly is available here: or indirectly finance or benefit http://www.verizon.com/about/ armed groups in the Democratic sites/default/files/Verizon- Republic of the Congo (or in Conflict-Mineral-Statement.pdf any adjoining country). Our
43 2017 Corporate Responsibility Report Building partnerships
We believe doing business We’re proud to have earned with diverse suppliers creates numerous supplier diversity a multiplier effect. Diverse and inclusion awards. In 2017, suppliers deliver value to us these recognitions included: by providing innovative goods, services and solutions that • Corporate 101: America’s help make a difference to our Most Admired Corporations customers, and they deliver for Supplier Diversity, value to the economy by awarded by Minority Business contributing to our diverse News USA communities. • For the 12th consecutive year, In 2017, we purchased more recognized by the Women’s than $5 billion in goods and Business Enterprise National services from diverse suppliers, Council as one of the Top including businesses owned Corporations of the Year for by minorities, women, veterans, supporting women-owned LGBTQ and people with disabil- businesses ities. This brings our total spend with diverse suppliers to nearly • Included in the United States $26 billion in the past five years. Hispanic Chamber of Supplier diversity Commerce’s Million Dollar Verizon is a charter member Club and recognized for Our total spend with diverse suppliers is of the Billion Dollar Roundtable, doing business with Hispanic- nearly $26 billion over the past five years. a coalition of 27 companies owned business enterprises that each spends more than $1 billion every year with • Named by Professional diverse suppliers. Woman’s Magazine and U.S. Veterans Magazine You can read more about our for having one of the top supplier diversity program supplier diversity programs here: http://www.verizon.com/ about/our-company/ supplier-diversity/.
44 2017 Corporate Responsibility Report Building accountability Governance 45 2017 Corporate Responsibility Report Building accountability
As our Credo states: We believe their work. The Code outlines to integrity, including: integrity is at the core of who ethical and legal expectations • The VZ Compliance we are. This belief governs in a number of areas, including: Guideline, available 24 hours every aspect of how we run our a day at 844-VZGUIDE or • Maintaining an inclusive, fair business, from how our Board 844-894-8433 in the U.S. and healthy work environment of Directors operates to our and at (+) 800-0-624-0007 engagement with stakeholders. • Maintaining integrity and outside the U.S., online at fairness in the workplace www.verizonguideline.com; and via email at vzguide@ • Protecting Verizon’s assets Integrity verizon.com; and reputation We monitor conflicts of interest • Maintaining integrity and • Our Security Control Center, and require Verizon Code of fairness in the marketplace operated by our global secu- Conduct training to safeguard rity organization, which team the integrity of our business. We also continue to share members can reach 24 hours additional compliance and a day at 800-997-3287 in the We maintain a comprehensive ethics-related communications U.S. and at 972-615-4343 ethics and compliance program with V Teamers, including train- outside the U.S. to report or that’s built on our Verizon Code of ing on privacy and information inquire about issues ranging Conduct and includes ongoing security for all employees. from international cyberse- educational communications, curity to legal compliance; mandatory training and readily Verizon’s leadership team and accessible tools. The Verizon Supply Chain Services organi- • Our Reporting/Inquiry Code of Conduct defines how zation are required to regularly Channel for accounting we work. It establishes a set of complete a Conflict-of-Interest matters, managed by guidelines aligned with the Questionnaire. All of the Verizon our Internal Audit group, principles in our Verizon Credo leadership team, as well as tar- which can be reached at and our Core Values of Integrity, geted populations in the supply accountingcomplaints@ Code of Conduct Respect, Performance Excel- chain, wireless indirect channel, verizon.com (or through lence and Accountability. The wireless retail sales, and wire- the VZ Compliance Code helps V Teamers make less network organizations, Guideline); and sound job-related decisions that received a Conflict-of-Interest strengthen our culture of integrity. Questionnaire in 2017. • Our Environmental and Safety Hotline, for reporting Compliance with the Code and All V Teamers are encouraged to emergencies, arranging for applicable laws and regulations raise questions, report concerns waste disposal or getting is expected wherever V Team- and acquire any additional needed on-site help from the com- ers conduct business on behalf information about our ethics pany’s environmental and of Verizon. All employees must standards. V Teamers are pro- safety specialists, available complete required Code train- vided with a suite of resources to at 800-386-9639 (both in ing and apply its principles in help them fulfill our commitment and outside of the U.S.).
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Anti-corruption
V Teamers in relevant Our training, which incorporates legal approval before giving Verizon enforces a operational roles receive practical examples, helps anything of value to a public zero-tolerance policy anti-corruption training and employees understand and official. We supplement our for unethical business communications that clearly comply with various anti-bribery general compliance training practices, including articulate our expectations, laws, including the U.K. Bribery with targeted communications bribery or corruption core principles and zero toler- Act and the U.S. Foreign and in-person instruction on ance for corrupt activities or Corrupt Practices Act. We an as-needed basis. of any kind. unethical business practices. instruct employees to seek
Stakeholder engagement Accessing diverse perspectives
Our long-standing Consumer We strive to make it easy for our • A semiannual Political Advisory Board (CAB), com- stakeholders to understand Contributions Report, posed of diverse leading our positions and progress on disclosing all of Verizon’s business and public-interest issues that matter to them. As PAC contributions, corpo- advocates, provides us with such, we publish: rate political contributions an unfiltered view of relevant and independent expendi- technology, consumer, busi- • A semiannual Transparency tures; and ness and social issues at Report, listing all the law- twice-yearly meetings. CAB enforcement requests for • The Verizon Broadband members’ perspectives and customer information that Commitment, which outlines advice play a role in the devel- we received in the U.S. and our commitment to an open opment of many important other countries in which internet that provides con- Verizon policy and business we do business as of the sumers with competitive decisions. publication date; broadband choices and internet access – when, where and how they want it.
47 2017 Corporate Responsibility Report Building accountability
Verizon is governed by a members, with the exception 58% 12-member Board of Directors, of our Chairman and CEO, are of the Board and each member stands for independent directors, and is made up of women election annually. Verizon’s Ms. M. Frances Keeth serves as or minorities. business affairs are conducted our lead Independent Director. by management, under the direction and supervision of the Our Board members reflect a Board of Directors. The Board, wide range of viewpoints, back- The Verizon Leadership Council and each committee of the grounds and expertise. Diversity manages corporate responsibil- Board, has complete access is a core attribute of a well- ity activities across the company to management. At least once functioning Board, and ours – establishing benchmarks and a year, the Board conducts is highly diverse: seven of 12 goals, assigning and enforcing a strategic planning session members, or 58 percent, are accountability, and tracking with management, and reviews women or minorities. outcomes of corporate respon- succession planning and sibility initiatives. The Council is management development. made up of senior executives Corporate responsibility from various operating units and Our Board is committed to the governance staff groups, and is chaired by highest standards of corporate Chairman and Chief Executive governance because it believes The Board’s Corporate Officer Lowell McAdam. that an effective board will posi- Governance and Policy Governance tively influence shareholder Committee reviews Verizon’s Learn more at http://www. value, enhance Verizon’s position and engagement on verizon.com/about/investors/ reputation and create value important public policy issues corporate-governance. for all our stakeholders. There that may affect our business are four standing committees: and reputation, including politi- Audit, Corporate Governance cal contributions, lobbying and Policy, Finance, and activities and corporate social Human Resources. All Board responsibility.
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Risk management
Environmental, social and governance issues are among the many risks that we measure and manage as part of our risk management process. We track risks ranging from concerns over sustainable operations to those related to privacy and the use of data in the information economy.
The Board’s Audit Committee assesses Verizon’s significant business risks, including those related to data privacy and cybersecurity, and oversees Verizon’s compliance processes and programs.
Human rights
Our Human Rights Statement articulates our respect for the broad principles outlined in the United Nations Universal Declaration of Human Rights.
Our Supplier Code of Conduct mandates that our business partners and suppliers conduct their operations in an ethically responsible manner and in compliance with applicable law.
49 2017 Corporate Responsibility Report GRI index
50 2017 Corporate Responsibility Report GRI Index
Disclosure Number Disclosure Title 2018 Response GRI 102: General Disclosures Organizational profile 102-1 Name of the organization Verizon Communications Inc. 102-2 Activities, brands, products, and services Verizon 2017 10-K, pages 3-16 Our Company 102-3 Location of headquarters Our Corporate Headquarters are located in New York, New York, while our Operational Headquarters are located in Basking Ridge, New Jersey. 102-4 Location of operations We Are Global. 102-5 Ownership and legal form Verizon Communications Inc. is a publicly held holding company, listed on the New York Stock Exchange (NYSE: VZ) and NASDAQ exchange (VZ). 102-6 Markets served Countries served 102-7 Scale of the organization Who we are 102-8 Information on employees and other workers Building together (V-Team) – Diversity & inclusion 102-9 Supply chain Building partnerships (Supply Chain) 102-10 Significant changes to the organization and its supply chain There have been no changes to organization or supply chain during 2017. 102-11 Precautionary principle or approach Verizon 2017 10-K, pages 18-20 102-12 External initiatives CDP 102-13 Membership of associations Global e-Sustainability Initiative (GeSI) Joint Audit Cooperation Family Online Safety Institute (FOSI) Strategy 102-14 Statement from senior decision-maker Verizon 2017 Annual Report, page 4 Ethics and integrity 102-16 Values, principles, standards, and norms of behavior Code of Conduct Governance 102-18 Governance structure Governance Stakeholder engagement 102-40 List of stakeholder groups Stakeholder engagement 102-41 Collective bargaining agreements Verizon 2017 10-K, page 16 102-42 Identifying and selecting stakeholders Stakeholder engagement 102-43 Approach to stakeholder engagement Stakeholder engagement Priorities 102-44 Key topics and concerns raised Stakeholder engagement Priorities
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Reporting practice 102-45 Entities included in the consolidated financial statements Verizon 2017 10-K, pages 3-16 102-46 Defining report content and topic Boundaries Priorities 102-47 List of material topics Priorities 102-48 Restatements of information N/A 102-49 Changes in reporting There have been no changes in reporting during 2017. 102-50 Reporting period January 1, 2017 – December 31, 2017 102-51 Date of most recent report 2016 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report [email protected] 102-54 Claims of reporting in accordance with the GRI Standards Core 102-55 GRI content index GRI Standards Content Index begins on page 50 of this report. 102-56 External assurance Data presented in Verizon’s 2017 Corporate Responsibility Report are subject to internal reviews and, for selected content, external reviews. Ernst & Young provided independent external assurance on our 2016 Scope 1, 2 and 3 (exclusively corporate travel) greenhouse gas emissions and water consumption. The assurance reports can be accessed in the Environment section of this report. GRI 203: Indirect Economic Impacts 103-1 Explanation of the material topic and its Boundary Building abilities (Humanability) 103-2 The management approach and its components Building abilities (Humanability) 103-3 Evaluation of the management approach Building abilities (Humanability) 203-1 Infrastructure investments and services supported What We Do Community investment Building abilities (Humanability) GRI 301: Materials 103-1 Explanation of the material topic and its Boundary Managing waste Paper Sourcing and Use Policy 103-2 The management approach and its components Managing waste Paper Sourcing and Use Policy 103-3 Evaluation of the management approach Managing waste Paper Sourcing and Use Policy 301-3 Reclaimed products and their packaging materials Managing waste
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GRI 302: Energy 103-1 Explanation of the material topic and its Boundary Energy-efficient solutions Energy & emissions Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 103-2 The management approach and its components Energy-efficient solutions Energy & emissions Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 103-3 Evaluation of the management approach Energy-efficient solutions Energy & emissions Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 302-1 Energy consumption within the organization Energy-efficient solutions Energy & emissions Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 302-2 Energy consumption outside of the organization Energy-efficient solutions Energy & emissions Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 302-3 Energy intensity 2017 CDP Response, Climate Change 302-4 Reduction of energy consumption Energy-efficient solutions Energy & emissions Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change
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GRI 305: Emissions 103-1 Explanation of the material topic and its Boundary Energy-efficient solutions Energy & emissions Carbon intensity Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 103-2 The management approach and its components Energy-efficient solutions Energy & emissions Carbon intensity Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 103-3 Evaluation of the management approach Energy-efficient solutions Energy & emissions Carbon intensity Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change 305-1 Direct (Scope 1) GHG emissions Energy & emissions 2017 CDP Response, Climate Change 305-2 Energy indirect (Scope 2) GHG emissions Energy & emissions 2017 CDP Response, Climate Change 305-3 Other indirect (Scope 3) GHG emissions Energy & emissions 2017 CDP Response, Climate Change 305-4 GHG emissions intensity Carbon intensity 2017 CDP Response, Climate Change 305-5 Reduction of GHG emissions Energy-efficient solutions Energy & emissions Carbon intensity Efficient mobility Renewable energy Environmentally efficient stores & facilities 2017 CDP Response, Climate Change
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GRI 306: Effluents and Waste 103-1 Explanation of the material topic and its Boundary Managing waste Paper Sourcing and Use Policy 103-2 The management approach and its components Managing waste Paper Sourcing and Use Policy 103-3 Evaluation of the management approach Managing waste Paper Sourcing and Use Policy 306-2 Waste by type and disposal method Managing waste GRI 308: Supplier Environmental Assessment 103-1 Explanation of the material topic and its Boundary Building partnerships (Supply chain) 103-2 The management approach and its components Building partnerships (Supply chain) 103-3 Evaluation of the management approach Building partnerships (Supply chain) 308-1 New suppliers that were screened using environmental criteria Supplier Code of Conduct GRI 401: Employment 103-1 Explanation of the material topic and its Boundary Building together (V Team) 103-2 The management approach and its components Building together (V Team) 103-3 Evaluation of the management approach Building together (V Team) 401-2 Benefits provided to full-time employees that are not provided to Employee growth & development temporary or part-time employees Health & wellness Pay & family benefits GRI 404: Training and Education 103-1 Explanation of the material topic and its Boundary Building together (V Team) 103-2 The management approach and its components Building together (V Team) 103-3 Evaluation of the management approach Building together (V Team) 404-1 Average hours of training per year per employee Employee growth & development GRI 405: Diversity and Equal Opportunity 103-1 Explanation of the material topic and its Boundary Building together (V Team) 103-2 The management approach and its components Building together (V Team) 103-3 Evaluation of the management approach Building together (V Team) 405-1 Diversity of governance bodies and employees Diversity & inclusion 2017 Verizon Proxy Statement, page 5 405-2 Ratio of basic salary and remuneration of women to men Diversity & inclusion
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GRI 413: Local Communities 103-1 Explanation of the material topic and its Boundary Building abilities (Humanability) 103-2 The management approach and its components Building abilities (Humanability) 103-3 Evaluation of the management approach Building abilities (Humanability) 413-1 Operations with local community engagement, impact Building abilities (Humanability) assessments, and development programs GRI 414: Supplier Social Assessment 103-1 Explanation of the material topic and its Boundary Building partnerships (Supply chain) 103-2 The management approach and its components Building partnerships (Supply chain) 103-3 Evaluation of the management approach Building partnerships (Supply chain) 414-1 New suppliers that were screened using social criteria Supplier Code of Conduct GRI 415: Public Policy 103-1 Explanation of the material topic and its Boundary 2017 Political Contributions Report 103-2 The management approach and its components 2017 Political Contributions Report 103-3 Evaluation of the management approach 2017 Political Contributions Report 415-1 Political contributions 2017 Political Contributions Report GRI 418: Customer Privacy 103-1 Explanation of the material topic and its Boundary Product responsibility Transparency Report Privacy Policy 103-2 The management approach and its components Product responsibility Transparency Report Privacy Policy 103-3 Evaluation of the management approach Product responsibility Transparency Report Privacy Policy 418-1 Substantiated complaints concerning breaches of customer Privacy Policy privacy and losses of customer data Transparency Report GRI 419: Socioeconomic Compliance 103-1 Explanation of the material topic and its Boundary Product responsibility Privacy Policy 103-2 The management approach and its components Product responsibility Privacy Policy 103-3 Evaluation of the management approach Product responsibility Privacy Policy 419-1 Non-compliance with laws and regulations in the social Verizon 2017 10-K, page 21, Note 15: Commitments and Contingencies and economic area
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