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Each Every Day each and every day Inspired by Nature: creating a healthier, more sustainable future. Contents 93 4.4.1 Stakeholder engagement 3 1.0 About this report 94 4.4.2 Measuring our giving 3 1.1 Forward-looking statements 96 4.4.3 How we give 5 1.2 Reporting parameters and what’s new 102 4.4.4 Community investment marketing 7 1.3 Material issues 104 4.4.5 Employee and retiree programs 10 1.4 Stakeholder inclusiveness 12 1.5 Targets 15 1.6 Assurance 5.0 Business operations and 16 1.7 Global Reporting Initiative (GRI) guidelines ethics 107 Overview 108 5.1 Economic performance and impact 2.0 Sustainability at TELUS 18 109 5.1.1 Connecting with our investors 18 2.1 CEO message 111 5.1.2 Financial and operating highlights 19 2.2 Chief Sustainability Officer message 114 5.1.3 Supporting Canadians 21 2.3 Sustainability leadership 118 5.1.4 Innovation 22 2.4 United Nations Global Compact 122 5.2 Ethics 23 2.4.1 Human Rights 124 5.2.1 Privacy 25 2.4.2 Labour standards 125 5.2.2 Anti-bribery and corruption 28 2.4.3 Environment 126 5.3 Governance and disclosure 30 2.4.4 Anti-corruption 130 5.3.1 Transparency 31 2.5 Sustainability awards 134 5.4 Regulatory compliance 137 5.4.1 Broadcasting 3.0 Environmental stewardship 33 138 5.4.2 Anti-spam legislation Overview 139 5.4.3 International operations 35 3.1 Energy use and climate change 140 5.4.4 Aboriginal relations and stakeholder 36 3.1.1 Energy efficiency engagement 37 3.1.2 Energy consumption results 141 5.4.5 Political contributions 39 3.1.3 Greenhouse gas emissions results 142 5.5 Business continuity 42 3.1.4 Environmental leadership 45 3.1.5 Work Styles® 144 46 3.1.6 Green Teams and our Sustainability Council 6.0 Customer experience Overview 48 3.1.7 Species at risk 145 6.1 Network and systems reliability 49 3.2 Environmental management 147 6.2 Data security and privacy 53 3.2.1 Waste and recycling 148 6.3 Customers First 55 3.2.2 Water 150 6.4 Accessibility 151 6.5 Online safety 4.0 Employee and community investment 56 7.0 Product stewardship and Overview 153 58 4.1 Culture, Human Rights & Labour innovation Overview 59 4.1.1 Who we are 154 7.1 Sustainable supply chain 64 4.1.2 Diversity and inclusiveness 155 7.1.1 Environmental standards 67 4.1.3 Human Rights 156 7.1.2 Supply chain initiatives 69 4.1.4 Labour 157 7.1.3 Green supply chain 71 4.2 Employee experience 158 7.1.4 Supplier governance 75 4.2.1 Talent 159 7.1.5 Supplier Diversity Program 78 4.2.2 Development and learning 161 7.2 Product stewardship 81 4.2.3 Total rewards 162 7.3 Innovative products and services 84 4.2.4 Work Styles 85 4.3 Employee health, safety and wellness 89 4.3.1 Respectful workplace 8.0 Glossary 165 91 4.4 Community Investment 2 2014 TELUS Sustainability Report About this Report 1.1 Forward-looking statements This report contains forward-looking statements about expected events relating to our 2015 consolidated and segmented targets, 2015 normal course issuer bid, multi-year dividend growth and share purchase programs, and the performance of TELUS. By their nature, forward-looking statements do not refer to historical facts and require TELUS to make assumptions and predictions, and are subject to inherent risks. There is significant risk that the forward-looking statements will not prove to be accurate and there can be no assurances that TELUS will complete all purchases under the 2015 normal course issuer bid and maintain its multi-year dividend growth and share purchase programs. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors (such as regulatory developments, government decisions, competition, our earnings and free cash flow, our capital expenditures and spectrum licence purchases, and a change in our intent to purchase shares) could cause actual future performance and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified by the assumptions (including assumptions for 2015 targets, semi-annual dividend increases to 2016, and our ability to sustain and complete our multi-year share purchase program to 2016), qualifications and risk factors referred to in Management’s discussion and 3 2014 TELUS Sustainability Report analysis, starting on page 42 of our annual report, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements. All financial information is reported in Canadian dollars unless otherwise specified. Copyright © 2015 TELUS Corporation. All rights reserved. Certain products and services named in this report are trademarks. The symbols ™ and ® indicate those owned by TELUS Corporation or its subsidiaries. All other trademarks are the property of their respective owners. 4 2014 TELUS Sustainability Report 1.2 Reporting parameters and what’s new Every day, we embrace the universal principles of sustainability. Increasingly, stakeholders are considering our sustainability performance in their purchasing, employment, and investment decisions, which is why we continue to integrate sustainability considerations into our operations and strategies. Through our Sustainability Report, we aim to disclose our performance on material issues in a way that highlights the relationship between business success and sustainability considerations in our operations. As signatories to the United Nations Global Compact (UNGC), which asks companies to embrace universal principles, we also report our progress on human rights, labour, environment and anti-corruption. To continuously improve our sustainability reporting, each year we review: § How we construct and build our report § How we manage data and create content that matters § How we share our report, so that it is relevant, timely, accessible and understandable for stakeholders. For this report - for the first time - we have changed the name of our Corporate Social Responsibility (CSR) Report to our Sustainability Report, to better reflect our broader view of the issues that matter to our stakeholders and to us. Our report is web-based and is compatible for viewing with most mobile devices. Since 2013, we have placed a greater focus on sharing information in a visual way, complementing the text and highlighting key data points with easy to understand graphics. Based on stakeholder feedback, further emphasis has been put on website navigation and content readability, making the site easier to use. For this report - for the first time - we have changed the name of our Corporate Social Responsibility (CSR) Report to our Sustainability Report, to better reflect our broader view of the issues that matter to our stakeholders and to us. 5 2014 TELUS Sustainability Report Throughout our report, we highlight TELUS’ focus on what we are doing each and every day, to put customers first. We continue to include more information from our international operations and have increased the scope of our climate change disclosure. We declare our report in accordance with GRI-G4 guidelines and have asked Deloitte LLP to confirm our declaration. We use the following symbol to highlight information reviewed by Deloitte LLP, an Independent Registered Public Accounting Firm. In 2014, we continued to have all director-level report contributors provide a statement verifying the accuracy of the material provided. We believe this is a leading global practice in sustainability reporting and is done in addition to the executive review and sign-off process we have used for many years. Information contained in this report covers January 1 to December 31, 2014, unless otherwise stated. The material includes TELUS’ operations across Canada as well as TELUS International, unless otherwise stated. Also contained in this report are 2014 targets and results, and 2015 targets for key performance indicators in alignment with key focus areas. We are always seeking ways to improve our Sustainability Report and welcome your feedback and suggestions. Please send any questions or comments to [email protected] 6 2014 TELUS Sustainability Report 1.3 Material issues Inspired by nature: creating a healthier, more sustainable future. In the latter half of 2014, as part of our ongoing governance, and in response to stakeholder feedback, TELUS determined that a Fair Process review of our sustainability strategy was required to confirm our strategy: § Is integrated § Supports our overall business priorities and operations § Addresses stakeholder concerns. To support this effort, we facilitated a formal review in a phased approach to: § Understand our current state § Establish a baseline on our strategy and performance § Refresh our sustainability vision and strategic priorities. In phase one of this exercise, we applied a structured, evidence-based process to understand material issues and risks and validate key focus areas. This was followed by the development of a model to provide a framework for engagement and conducting a benchmarking exercise to define the sustainability performance landscape. We believe that streamlined sustainability reporting, focused on our strategy and performance with respect to material issues, better serves our stakeholders, increases employee engagement, spurs innovation, builds momentum for sustainability initiatives, fosters enhanced governance and increases accountability. This established a baseline for TELUS’ sustainability context and set the stage for engaging our Executive Leadership Team to gather their insight on our sustainability vision and desired future state of performance. This insight set the foundation for key stakeholders to refine and validate our vision statement, strategic priorities and roadmap.
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