just think…

BCE Inc. 1000, rue de La Gauchetière Ouest Bureau 3700 Montréal (Québec) H3B 4Y7 www.bce.ca

Communications Email: [email protected] Tel: 1 888 932-6666 Fax: 514 870-4385

BELL CANADA ENTERPRISES CORPORATE RESPONSIBILITY 2004 REPORT HIGHLIGHTS Canada’s communications leader Canada’s largest communications company, BCE Inc. (Bell Canada Enterprises) employs 62,000 people and enables 27 million customer connections. Through these connections, we offer a broader range of services than anyone else in Canada, including wireline and wireless communications services, Internet access, data and video services. From our roots in Central Canada we have expanded to the farthest reaches of the country, operating in Atlantic, western and northern Canada, connecting people in thousands of cities, towns and remote communities. This year Bell Canada celebrates its 125th anniversary as a nation builder. When 17.5% minimum the country was still young, Bell pioneered Cover printed on FSC-certified Domtar Opaque – Plainfield®, a paper in telecommunications in Canada, building which at least 17.5% of the fibre comes from well-managed forests, as independently a telephone infrastructure that brought certified by SmartWood according to the rules of the Forest Stewardship Council. distant communities closer together. It FSC-certified Domtar Opaque – Plainfield stimulated commerce, enabled political and also contains 20% post-consumer waste paper SW-COC-681. social unity. Today, our fibre-optic, wireline, wireless and satellite infrastructure is among Interior printed on Rolland Enviro 100, a paper the world’s most advanced and a key driver made from 100% post-consumer recycled fibre of productivity growth in Canada. and de-inked through a chlorine-free process. This report was printed with vegetable-based As Canada’s leading communications ink and is recyclable. This document was printed by company, we have a responsibility to all Transcontinental – Litho Acme, stakeholders, including customers, employees, SW-COC-952. FSC Trademark © 1996 shareholders – indeed, to all Canadians – to Forest Stewardship Council A.C. be a good corporate citizen – economically, environmentally and socially. This report is Cette publication est disponible en français. about how we fulfill that responsibility… Design: www.ardoise.com investment (page 4) green (page 8) solutions (page 12) employees (page 16) community (page 20)

For BCE’s Comprehensive 2004 Corporate Responsibility Report, visit www.bce.ca/en/responsibility A Message From Michael J. Sabia Connecting people and helping to build their communities has been the goal of Bell Canada since our company was founded 125 years ago. This is the core of our business and the foundation of our social citizenship.

As Canada’s leading communications Governance is about having a Code recognition and Voice over IP to company, we know people expect of Business Conduct with teeth. One wireless broadband. the best of Bell. Especially those that reflects our own moral compass. And we continue to extend the who work for Bell. Our commitment And management systems that network’s reach and capacity. Our to stronger communities begins advance our economic, environmental goal: to provide high-speed services with our people. They apply the and social performance. Because what to 85% of residences in the Québec highest professional standards to we do – and how we do it – makes us City-Windsor corridor by 2008. their jobs. And a deep commitment who we are. The result: more Canadians with to community involvement. Our performance in these areas access to services that stimulate We provide technologies that help has been recognized. In a study by local economies and enable people create and share knowledge and GovernanceMetrics International, to be connected. wealth. Our actions touch customers, BCE was one of just three Canadian Beyond that, we continue to work to investors, employees, suppliers and companies to score a perfect 10 for deliver the benefits of communica- communities across the country. governance in 2004. And one of only tions services – including high-speed Literally, tens of millions of 34 among 3,220 worldwide. It is the – to rural, remote and Northern Canadians. Creating meaningful third straight year we have earned regions of Canada. For example, jobs. Spurring investment. Driving that mark. video conferencing is available for innovation that enables Canadians Supporting economic telemedicine in isolated communities to connect. To expand their growth of Baffin Island. Telesat launched own horizons. Innovation is a second critical ele- the Anik F2 satelllite last year to Connecting communities shapes ment in strengthening communities. provide high-speed Internet access every decision we make. Not only As we turn ideas into new products across the country. In Ontario, we are what we do, but how we do it. and services, we create benefits for taking land-based broadband service And how well we do it. customers. Richer connections to to 10 First Nations communities in Responsible governance people, information and entertain- the Fort Frances area. And through drives everything ment. Better solutions, enabling microwave, fibre optics and satel- lite, our subsidiary Northwestel is Living up to that responsibility starts businesses to be more productive, making high-speed service available with governance: the way we conduct more competitive. to more than 90% of the homes in business, the ethical standards to In 2004, we increased the number the Northwest Territories. which we adhere. of innovation centres we operate to 10. These state-of-the-art think tanks develop breakthrough applica- tions in everything from voice Protecting the Managing change Similarly, our own people are deeply We intend to make a meaningful environment We also recognize our obligation to involved in their communities. difference by focusing on two areas: Our responsibility extends to reduc- our own community of employees. Despite the challenges of 2004, the One, initiatives that strengthen the ing our impact on the environment. The evolving industry, especially the generosity of spirit demonstrated economic and social foundations In 2004 we sustained our industry emergence of Internet Protocol, chal- for generations by Bell employees of communities. Because stronger leadership. We collected more than lenges us to transform our business continues to be exceptional. The communities make for a stronger, 50,000 wireless phones, plus batteries model radically. In 2004, this con- willingness of our people to support more competitive country. and accessories, for reuse or recycling. tributed to the decision to reduce our campaigns such as United Way / Two, programs for the next gen- Since its launch, this program has workforce by approximately 10%. Centraide set records once again. eration of Canadians. The children diverted more than 37 metric tons A difficult decision. However, They volunteered hundreds of and youth who will lead us in the of material from landfill sites, the as part of our commitment to a thousands of hours to local groups, 21st century. equivalent of approximately 21 cars. workplace that is respectful of from minor sports to women’s The Québec government recognized employees, we made every effort to shelters. These are critical initiatives. We are also committing to increase our corporate recycling efforts with minimize the impact through an By acting locally, we strengthen our annual budget for community an award for reducing landfill waste unprecedented voluntary departure the neighbourhoods, schools, investment from $19 million in 2005 by more than 70 percent annually. program, extensive retraining and hospitals and small businesses to $26 million in 2007. And we donated 1,500 refurbished career counselling. where opportunity is born. wireless phones to the 2nd Stage Community need meets As well, Bell employees drove our Bell people have consistently dem- Program, for use by women leaving corporate know-how response to the Asian tsunami in onstrated a spirit of service since the shelters to start a new life. Beyond the impact of our business a campaign that raised almost a company’s inception 125 years ago. Hydrogen fuel cells, wind turbines and operations, however, is our million dollars for the relief fund. Through world wars and economic and solar panels reduced our depend- commitment – as a company and as To become even more effective depressions, through natural and ence on fossil fuels by as much as individual employees – to be engaged citizens, early in 2005 we launched man-made disasters, they have given 95 percent in some locations. Satellite in the communities we serve. Connected to Communities – a new generously of themselves… and still and cellular monitoring of our fleet do. Every day. Corporations are members of a larger approach to our social investment is reducing fuel consumption and society. And with that citizenship that matches community needs with Every day we connect communities. cutting greenhouse gas emissions comes the responsibility to do more Bell’s resources. Fundamentally, In hundreds, thousands of ways. annually by 3,800 metric tons – than produce goods, services and Connected to Communities is about Because that’s what our people are approximately 10% of our overall returns. The responsibility to use using our national reach and our dedicated to. fleet output. We’re also working with the capabilities of the company – its unique capabilities in technology, So as a company – as a citizen of our industry to promote teleconferencing, resources, people and know-how – to partnering and innovation to help communities – our path is clear. teleworking and other solutions help communities build the capacity more individuals make a real con- After all, just think of what’s still to that can reduce energy-intensive to adapt to a changing world. nection with their communities. It’s be done. business travel. about being not just a benefactor, It is simply the right thing to do. but a partner. An engaged player, a bridge. Cutting across traditional boundaries. Finding solutions. MICHAEL J. SABIA President and CEO BCE Inc. think… investment Our responsibility: ensure that our actions have a positive economic impact through investments in innovation, people and infrastructure. Shareholders expect this. So do employees, customers and a host of others. They appreciate that everything we do has economic consequences beyond our immediate stakeholders. National consequences for today and tomorrow. We accept that responsibility.

Learn more about BCE’s economic impact. For a summary of facts and figures, see page 30. 4 For a complete report, visit www.bce.ca/en/responsibility/economy “With broadband now available to my home, we have many more choices about how we access information and entertainment… and how we’re able to do it more economically. I couldn’t believe I was getting TV over my phone line — and I was still able to use my phone! Plus, with Bell providing the service, I know it’s reliable.”

— Gerald Slater, Condo TV Customer think… investment

Broadband: more bandwidth brings big benefits

In 2004, Gerald Slater and Our FTTN architecture uses a thousands of other Bell customers combination of new fibre optic in Toronto, Ottawa and Montréal lines and existing copper wire. got a glimpse of the future. They This hybrid approach makes were among the first to use Bell’s the investment far more cost- VDSL technology, a very high- effective, so Canadians can benefit speed digital subscriber line that sooner. How much sooner? By delivers a rich array of services the end of 2008, 85% of urban including TV. It’s the first step households in the “corridor” — or in Bell’s plan to offer more band- 4.3 million in total — will have width to more people than ever access to Bell broadband through before. Next step? Fibre-to-the- FTTN or VDSL. The $1.2 billion node (FTTN) will deliver blazing infrastructure investment is once fast speeds — a 600% increase by again giving Bell customers a 2006, and more than 1,200% in direct line to the future. some new homes — FTTN will give customers in the Québec City to Windsor corridor IPTV (Internet Protocol Television), HDTV (High Definition Television), video-on-demand, digital music and more… all 6 delivered over their phone lines! Innovation: Small business: the real underground economy new centre creates advanced IP services

New ideas drive the economy. The lab is just one example of If you’re a small business owner, Our Saint John initiative is one It’s how communities become how Bell invests to enhance it sometimes feels as if you have of ten strategically located Bell more competitive and the future. But then, Bell has to wait years before you can ben- innovation centres across Canada. prosperous. Take miners in always been at the innovation efit from the same technology that By investing in innovation, Abitibi-Temiscamingue, edge — installing its first public larger companies enjoy. That’s one we’re doing our part to create Québec. Our Télébec Mobilité phone in 1881 and pioneering reason why Bell and Aliant, our knowledge and spur the country’s Underground Communications packet-switched data service in Atlantic Canada partner, founded economic growth. Experts esti- Laboratory, in association with 1977. Today, we still lead the the Small-Medium Business mate that 70% of Canada’s recent the Université du Québec, way with the transition to IP Innovation Centre in Saint John, productivity growth is directly has invested $1.6 million to networks and services and this New Brunswick. This centre is linked to innovation. bring wireless services deep year’s planned launch of EVDO a place where next-generation underground. And not just (Evolution, Data Optimized), IP-based services are created for voice, but also data and image North America’s most advanced small business ventures. Services transmission, so mine managers wireless network. such as point-to-point video, can improve operations and integration with e-mail, click-to- safety. Ideas like this strengthen call, find-me-follow-me, instant Abitibi-Temiscamingue’s local messaging and multimedia across economy… and will ultimately the enterprise. Definitely exciting. improve service and increase data And certainly advanced, given speed six-fold for all Canadians that these services are usually who ride the subway or work and restricted to enterprise customers. shop below ground. think… green Our environmental responsibility: do everything in our power to leave a cleaner world for the next generation. BCE’s environmental impact is shrinking year by year even as our business is growing. The BCE “footprint” will never disappear altogether. But by monitoring the amount of fuel we use, and by recycling and reusing, we’ve emerged as a North American industry leader.

Learn more about BCE’s environmental impact. For a summary of facts and figures, see page 32. 8 For a complete report, visit www.bce.ca/en/responsibility/environment “Having a cell phone makes a huge difference in the lives of women in shelters. Bell’s cell phone recycling program is fantastic because it meets a real need for many of these women who are living in poverty and don’t have disposable income for a cellular phone. The fact that it is also good for the environment is a big added bonus.”

— Rhonda Roffey, Executive Director Women’s Habitat, Toronto think… green

Recycling: cell phones provide privacy, security, independence Bell Mobility’s “Recycle, Reuse, In addition, we donated Redial” program isn’t just divert- 1,498 units in 2004 to the ing tons of serviceable phones 2nd Stage Program, which sup- from landfill. It’s giving women ports women leaving shelters to seeking shelter from abusive start a new life. With the phones relationships a way to connect came unlimited local airtime, with others safely and privately. call display and 911 access. Launched in 2003, the program collects used mobile phones, Apart from its work with women’s refurbishes them to “nearly new,” shelters, “Recycle, Reuse, Redial” and donates them to 150 women’s also collects batteries and shelters. We’ve given away other cell-phone accessories at 6,500 phones since the start of Bell World / Espace Bell stores. the program. And the impact? Since the program’s launch, 37 metric tons of material have been diverted from landfill. In 2004 alone, we recycled 50,699 mobile phones. It’s estimated that more than 15 million used mobile phones in Canada are 96% recyclable… so we’ve really got our work cut 10 out for us. Reducing: Rethinking: driving down greenhouse gas emissions how northern winds push down emissions and costs When Canada signed the Kyoto In addition, TelePods are used to Our remote communications At Ossokmanuan, between protocol, BCE jumped on board locate any vehicle, monitor air bag towers are, well… remote. Labrador City and Goose Bay, with fresh ideas to reduce its deployments and speed assistance Without access to the electricity we’ve reduced fuel costs by 95%. greenhouse gas emissions. One of to an employee in an emergency grid, for decades we’ve had to And there’s so much wind power these initiatives is the TelePod,™ situation. This is why we plan to truck or fly in diesel fuel to generated, the surplus often which we’ve installed on Lingham install the system in 1,000 more power their generators. Now supplements heat in the equip- Muthiah’s Bell vehicle, and on Bell vehicles in 2005, as well as there’s a better way: using ment building. We’re burning 4,350 others. Using a satellite on 300 mobile generators. combined wind and solar power, just a small amount of diesel and cellular interface developed this leading Canadian initiative to power lights, maintenance by Bell, TelePods monitor and Other efforts to avert climate promises to make our northern and diagnostics. transmit engine diagnostics, change include real estate outposts nearly 100% energy idling time and excessive RPM. energy reduction initiatives, our self-sufficient. This initiative is saving thou- Data that’s useful in making our Everyday Kyoto employee aware- sands of dollars in fuel for the vehicles run cleaner. ness program, telework, flexSpace, At Grande-Baleine, Québec, site generators and fuel transport. energy efficient hybrid vehicles, of an old Hudson’s Bay trading More important, it’s also remov- It’s estimated that TelePods and our free bicycle program. post, two 10-metre, 7.5 kilowatt ing tons of greenhouse gases could reduce Bell’s fuel consump- wind turbines are picking up the from Canadian skies — 50 tons tion costs and air emissions by * TelePod is a trademark of Bell Canada load once carried by generators. from Québec skies alone. And approximately 10% — the equiva- it’s just a start. We plan to install lent of 3,800 people meeting the wind turbines and solar panels “One Tonne Challenge”annually. in 30 sites across the great white north in coming years. think… solutions Our responsibility to customers: provide access to safe, reliable and innovative services at a fair price. We strive to make every “customer experience” superior and cost effective. To ensure our network continues to deliver the nation’s most advanced voice, video and data services — even, and especially, in an emergency. And to keep on innovating.

Learn more about BCE’s responsibility to customers. For a summary of facts and figures, see page 40. 12 For a complete report, visit www.bce.ca/en/responsibility/people/customers “Telesurgery is the way of the future for surgery in Canada, and could become the standard of care. Communication between surgeons from one part of the country to another using telesurgery may occur as often as teleconferencing does today. It’s nice to be involved in the pioneering stages of this exciting technology.”

— Dr. Patrick Luke CSTAR (Canadian Surgical Technologies & Advanced Robotics) think… solutions

Telesurgery: a surgeon can be in two places at once Someday soon, a surgeon might sustain our health care system. save a life in Whitehorse and And also allows telementoring, remove a tumour in Nunavut which enables experienced in a single day… without ever surgeons to guide colleagues in an leaving London. operating room halfway across the country… or around the world. Pioneered at CSTAR (Canadian Surgical Technologies & As London Health Sciences Advanced Robotics), located at Centre’s technology partner, London Health Sciences Centre, Bell’s surgical grade network and robotic telesurgery is emerging satellite technology are making as one way to bridge Canada’s all this possible. And since Bell vast distances. It brings top recognizes that telesurgery has medical talent to patients national and global promise, anywhere in Canada. Introduces we’re also continuing to support efficiencies that could help to the research initiative with a total donation commitment of $800,000 over six years.

14 Rural access: Broadband: bringing service where no phone levelling the playing field has gone before Town and city dwellers take SIP customers include residential With the installation of Industry Canada and the local their phones for granted. But not and business property owners broadband in Fort Frances and First Nations Advisory Services Canadians who live and work in where the cost of bringing service surrounding area, residents of group. Now local people can remote regions. They know that amounts to less than $25,000, ten First Nations communities further diversify their economy a phone can mean life or death. It and where the customer helps to in northwestern Ontario are now and develop their tourism can bring economic opportunity, defray the cost up to a maximum accessing online banking and industry. A few short months after education and information. of $1,000. At year-end 2004, other services in just milliseconds. the introduction of broadband, all but 3,000 households in the Fort Frances Chamber of We installed Canada’s first phones Bell’s territory qualified. By the Bell Canada played a part in Commerce is ramping up its busi- 125 years ago. Today, our Service program’s end in 2006, Bell will shrinking the distance from ness attraction efforts. Ultimately, Improvement Plan (SIP) is still have provided basic phone service, Fort Frances to the rest of residents should benefit from bringing the first phones to the or upgraded radio-telephone, or the world. Selected as lead improved business opportunities, most isolated homes and busi- fixed wireless service, to nearly vendor for the communities’ dependable access to online learn- nesses of Ontario and Québec. 18,000 customers in some “Broadband for Rural and ing and health services, as well as 2,800 remote communities. Northern Development” project, entertainment, networking and Bell contributed $1.56 million security applications. toward the $2.7 million cost, with the balance covered by think… employees Our responsibility: respect employees and provide a workplace that’s safe, fair and satisfying. We support life-long learning, along with training that helps our people reskill and adapt to a competitive, fast-paced and changing world. We also regularly engage them in decision-making that affects our evolving business and workplace. After all, job satisfaction and balance improve productivity, which has everything to do with our shared success.

Learn more about BCE’s responsibility to employees. For a summary of facts and figures, see page 42. 16 For a complete report, visit www.bce.ca/en/responsibility/people/employees “Employee knowledge and experience are important to keep within a company. Programs like Bell People First recognize this and help build back your morale and confidence when there’s a restructuring.”

— Alexis Rodney Bell Canada Resource Associate think… employees

Bell People First: keeping it in the family

In the business we’re in, tech- BPF encourages hiring, nologies evolve almost daily and transferring, promoting and competition is fierce. This means developing Bell employees that sometimes, unavoidably, FIRST, before we look outside we’re forced to restructure work the family. In 2004, BPF helped to stay competitive. This doesn’t to reassign 860 employees like mean, however, that an affected Alexis Rodney. We also invested employee’s career at Bell is neces- $1.3 million to retrain them and sarily over. Take Alexis Rodney, help launch brand new careers. whose nine years as a Cost Analyst at Bell might have come to an end. She applied to Bell People First (BPF), and was supported every step of the way, with help on her resumé, with her job search skills and with interview preparation. One month and 12 interviews later, she landed a new job at Bell — actually a pro- motion — as a Resource Associate. 18 flexSpace: Ask employees: redefining “office” are you not satisfied, satisfied, or very satisfied? At BCE, the innovative impulse Bell has been offering flexible Angel Ivanchuk never misses a So how does Angel Ivanchuk is making us rethink everything, work options since the 1980s. chance to speak her mind. After know she’s being heard? Survey including the daily commute and Why? Because we believe that all, this Bell West employee results are always shared. Discus- rigid work schedule. Our new a balanced work and home life knows that People to People, BCE’s sions follow. And practical ideas and better way to organize the boosts morale and productivity. annual employee survey, is the from front-line employees — who workday is called flexSpace. By the time flexSpace is fully best way of being heard. often know best! — are imple- implemented in 2007, we expect mented. For example, Angel According to Kitchener’s 10,000 signed-up employees. Every year, we invite our and her workmates have helped Dan Magwood, who participated Bell spent $249 million on leases employees to fill out a confidential simplify and improve customer in the pilot project, it works in 2004. If one-quarter of Ontario questionnaire. People to People service in the West by suggest- like this: a participating Bell and Québec employees choose asks if the employee feels valued. ing a single source of “how to” employee can choose to work at flexSpace, the annual savings will Is the company well managed? information for two distinct home, at a nearby flexSpace busi- add up to $19 million. Better yet, How is their immediate leader customer-contact departments. ness centre, or both. Dan books a we’ll have a workplace environ- performing? And what about job The team has also found ways to flexSpace office and meeting room ment that’s more suited to today’s satisfaction — or dissatisfaction? ramp up efficiency with eastern when he needs it. The shorter changing needs and more satisfy- All in all, the questions take about colleagues, so there’s less duplica- commute saves time and reduces ing to employees. 20 minutes to answer online. tion and misinformation. stress. It lowers greenhouse gas emissions. And Bell saves on costly real estate rental. think… community Our responsibility: help build strong, healthy and vibrant communities. Our “Connected to Communities” program supports projects that strengthen local economies and social foundations, with a focus on children and youth. Healthy, connected communities go hand in hand with economic expansion, creativity and innovation. That’s why we’re increasing our community investment commitment from $18 million in 2004 to $26 million in 2007.

Learn more about BCE’s commitment to communities. For a summary of facts and figures, see page 46. 20 For a complete report, visit www.bce.ca/en/responsibility/people/community “I look at the Internet as both a classroom and a playground. The only problem is, sexual predators are on the loose, and they’re targeting our kids. As a police officer, my sworn duty is to protect the community from these criminals. As a parent, I’m just glad I’m not alone. Through Cybertip.ca, Canadians are giving us information that’s putting more of these predators behind bars.”

— Sergeant Steve J. Colwell RCMP Officer and parent think… community

Responsibility: a safer Internet

The sexual exploitation of kids Network to ensure kids get the on the Internet has reached best from the Internet — without alarming proportions. What’s exposure to the worst. The to be done? As Canada’s leading program’s multimedia campaign Internet service provider, Bell offers safety tips for parents and has a responsibility to act. That’s their kids. why we’re working with police, industry and interest groups to And most recently, we donated find solutions. One initiative is $500,000 to launch the Bell Cybertip.ca. With support from Cyber Abuse Research Project at Bell, we’re helping to make this the University of Toronto. The Manitoba initiative national. first of its kind, the project targets Founded to fight child pornogra- the sexual exploitation, bullying phy, Cybertip.ca has already shut and stalking of children and down 493 web sites and led to youth, and will build a web site ten arrests. where organizations, educators and researchers can share data Be Web Aware is another and action plans. kid-friendly national program. Bell is working with Microsoft Canada and the Media Awareness 22 Volunteering: Economic development: it runs in the family how some companies now shop for “goods” Over the past decade, Jean-Paul At BCE, we encourage voluntar- Where does a prominent Vancouver’s portal has already Brault and daughter Nathalie ism and employee-giving… with Vancouver law firm buy office led to 75 hires… with more on have raised tens of thousands of some inspiring results. Over the supplies? From a Vancouver the way. The concept received a dollars for the Mira Foundation, past year, employees volunteered supplier listed on the Social boost from the Bell Community a Québec charity that provides more than 275,000 hours — Purchasing Portal. It’s a busi- Economic Development Fund, free guide dogs to the visually valued at more than $4 million ness portal with a difference. with a grant to support its impaired. According to Nathalie, based on Statistics Canada’s Every company listed has an replication elsewhere in Canada. a Bell employee, “We have been average hourly wage data. We opportunity to hire staff through So far, similar portals have been fortunate in life and we decided recognize volunteerism with Fast Track to Employment, which set up in Toronto and Winnipeg, to share our good fortune with corporate donations to the causes opens doors to hard-to-employ with Calgary and Surrey soon to others.” Nathalie says she gets a our people support. In 2004, individuals. For the law firm, launch. The fund, administered kick from volunteering with dad, this generated another $836,000 buying through the portal is an by the Carleton University- whom she describes as a “role in charitable grants. We gave act of corporate social respon- based Community Economic model.” Actually, Jean-Paul is a an additional $290,000 to sport sibility. Their dollars reduce Development Technical Assistance role model in more ways than one. groups in 168 communities across unemployment, poverty and Program (CEDTAP), is designed He worked at Bell for 40 years. Canada, recognizing the volunteer drug addiction in Downtown to encourage community eco- efforts of 469 employees. Eastside and East Vancouver. nomic development with a social And all they’re doing is buying purpose. The Social Purchasing products and services they’d Portal is an innovative application purchase anyway. generating tremendous social impact at the local level. facts and

figures Report profile 26 Recognition 27 Governance 28 Think investment: Economy 30 Direct impact 30 Indirect impact 31 Think green: Environment 32 Introduction 32 Consumption 33 Emissions 34 Land & infrastructure 36 Residual materials 38 Incidents 39 Think people Think solutions: Customers 40 Think employees 42 Employment & practices 42 Health & safety 43 Diversity 44 Training & development 45 Think community 46 Suppliers 48 Report Profile This print report is a summary of BCE’s Comprehensive 2004 Corporate Responsibility Report, available on our web site at www.bce.ca/en/responsibility.

Boundaries Global Reporting SOCIO-ECONOMIC DATA The activities discussed in this report Initiative Some of the data in this report is cover the period from January 1, We prepared this report using taken from our 2004 annual report. 2004 to December 31, 2004. Unless Global Reporting Initiative (GRI) Most data was collected from and otherwise stated, data is valid as at guidelines. Specifically, we selected verified by approximately 50 sources December 31, 2004. subjects on the basis of general GRI within the organization. We took great care to ensure that all data BCE Inc. is Canada’s largest com- content guidelines as well as the GRI telecommunications sector presented in this report are as accurate munications company. It consists of as possible. many businesses, including subsid- supplement. Our web report includes iaries and joint ventures. Our primary a GRI content index to help readers Key performance focus is Bell Canada, which is Canada’s access report content using the GRI leading provider of wireline and wire- structure and to help with compari- indicators less communication services, Internet sons to other reporting organizations. In keeping with GRI guidelines, we access, data services and video services To access our GRI content index, visit have identified some key performance to residential and business customers. www.bce.ca/en/responsibility/gri indicators. These are highlighted with Bell Canada represents the largest colour and appear mostly in the mar- component of our business. Our other Data collection gins of the “Facts and Figures” section BCE businesses include our media, Information for this report was of this report. We added another step satellite and IT (information technol- supplied by various BCE groups and to the process of ensuring the reli- ogy) companies as well as BCE’s collected by two groups within Bell ability of key performance data. KPI corporate office. Canada. The Environmental Services data was reviewed and approved by an team collected all environmental data internal audit team. The knowledge Unless otherwise specified, the data while our Community Investment from this exercise will serve us well in this report covers one of three prin- team collected all socio-economic as we prepare for external, third party cipal groups: BCE Inc., Bell Canada data. In both cases, data was reviewed verification in future reports. (excluding Aliant) or Bell Canada by subject matter experts and BCE’s Consolidated (including Aliant). in-house law department. Data reliability BCE All data was reviewed by internal Information on Inc. includes ENVIRONMENTAL DATA subject matter experts. In addition, consolidated data for all BCE com- The process of collecting and verify- key performance indicators were panies. The Bell Canada grouping ing environmental data has been reviewed and approved by an generally covers our wireline and refined since Bell published its first internal audit team. Finally, data wireless communications services, environmental report in 1991. As for some indicators was collected, Internet access, data services and the company moved toward a more calculated and generated by repu- DTH (Direct-to-Home) satellite systematic approach to identifying table external firms. This includes television services to residential and and addressing environmental issues, our Employee Value Index and business customers. In some cases, we established reporting mechanisms Customer Value Index. we were not able to collect data for to obtain yearly results. For the very minor portions of Bell Canada. 2004 report, the Environmental (See Safe harbour notice on page 27.) Because these minor portions of the Services group reviewed all of the data business represent a small fraction of it collected. As indicted in the text, our overall operations, we believe the we differentiate between exact figures Bell Canada data is representative of and approximations or estimates in our impact. Bell Canada Consolidated our environmental reporting. covers all Bell Canada holdings including Aliant.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – GRI index > www.bce.ca/en/responsibility/gri 26 BCE’s Comprehensive 2004 Corporate Responsibility Report – Auditor’s Letter > www.bce.ca/en/responsibility/reportprofile/datareliability Recognition BCE’s reputation is determined in part by what people say about us. This is a partial list of the recognition we have received for our overall Corporate Responsibility initiatives. A sampling of awards received for our efforts in specific areas like the environment, human resources management and community involvement is included on the following pages.

ROB Magazine community and society, corporate practices. The survey is sponsored by BCE ranked number two for overall governance, customers, employees, KPMG and conducted by Ipsos-Reid. corporate responsibility and number environment, and human rights. one for environmental responsibility FTSE4Good Global Index among Canadian telecommunications Canada’s most BCE Inc. is listed on the FTSE4Good companies. Jantzi Research, The Globe respected corporations Global Index. FTSE4Good is an index and Mail’s Report on Business (ROB) In this annual survey of Canada’s for socially responsible investment magazine and GlobeScan teamed top CEOs, BCE maintained the (SRI) set up by FTSE, the world’s up to conduct this second annual number two spot for corporate social leading global index providers. ranking of social and environmental responsibility (CSR) among Canadian Independently defined and researched, performance of major companies in companies. The CSR category covers FTSE4Good sets objective global Canada. Companies were scored and activities such as charitable giving, standards for SRI. All FTSE4Good- ranked based on indicators across employee volunteerism, sponsorships, listed companies must qualify and six categories: community involvement, corporate adhere to the standards. governance and ethical business

Additional information and resources For additional recognition information, please see “Recognition” on the following pages or visit > www.bce.ca/en/responsibility/awards

Safe harbour notice Certain statements made in this Corporate service-specific networks to a single IP-based Canadian Radio-television and Telecom- Responsibility Annual Report are forward- network; our ability to implement our munications Commission (CRTC) affecting looking statements and are subject to strategies and plans in order to produce the our ability to compete effectively, including, important risks, uncertainties and assump- expected benefits and growth prospects; more specifically, decisions concerning the tions. The results or events predicted in these general economic and market conditions regulation of VoIP services; our ability to statements may differ materially from actual and the level of consumer confidence and manage effectively labour relations, negotiate results or events. Certain of the risk factors spending, and the demand for, and prices of, satisfactory labour agreements, including new which could cause results or events to differ our products and services; the intensity of agreements replacing expired labour agree- materially from current expectations are competitive activity from both traditional ments, while avoiding work stoppages, and discussed in the next paragraph. The forward- and new competitors, Canadian or foreign, maintain service to customers and minimize looking statements made in this Corporate including cross-platform competition, which disruptions during strikes and other work Responsibility Annual Report do not reflect is increasing following the introduction of stoppages; events affecting the functionality the potential impact of any non-recurring new technologies such as Voice over Internet of our networks or of the networks of other or other special items or of any dispositions, Protocol (VoIP) which have reduced barriers telecommunications carriers on which we monetizations, mergers, acquisitions, other to entry that existed in the industry, and rely to provide our services; our ability to business combinations or other transactions its resulting impact on the ability to retain improve and upgrade, on a timely basis, our that may be announced or that may occur existing, and attract new, customers, and on various IT systems and software; our ability after May 2, 2005. The forward-looking pricing strategies and financial results; the to implement the significant changes in statements contained in this Corporate ability to improve productivity and contain processes, in how we approach our markets, Responsibility Annual Report represent the capital intensity while maintaining quality of and in products and services, required by our expectations of BCE Inc. and its subsidiaries services; the ability to anticipate, and respond strategic direction; and our ability to retain (collectively “BCE”) as of May 2, 2005 and, to, changes in technology, industry standards major customers. accordingly, are subject to change after such and client needs and migrate to and deploy For additional information with respect date. However, BCE disclaims any intention new technologies, including VoIP, and offer to certain of these and other factors, please and assumes no obligation to update or revise new products and services rapidly and achieve refer to BCE Inc.’s Annual Information Form any forward-looking statements, whether as market acceptance thereof; the availability for the year ended December 31, 2004 (avail- a result of new information, future events and cost of capital required to implement our able on BCE Inc.’s site at www.bce.ca) filed or otherwise. financing plans and fund capital and other by BCE Inc. with the U.S. Securities and expenditures; our ability to find suitable Other factors that could cause results or Exchange Commission, under Form 40-F companies to acquire or to partner with; the events to differ materially from current (available on EDGAR at www.sec.gov), and impact of pending or future litigation and expectations include, among other things: with the Canadian securities commissions of adverse changes in laws or regulations, our ability to complete within our targeted (available on SEDAR at www.sedar.com). including tax laws, or in how they are inter- timeframe, and the impact on our financial preted, or of adverse regulatory initiatives results of, the migration of our multiple or proceedings, including decisions by the Governance > Structure We believe that good corporate governance practices directly create and maintain shareholder value. We are committed to protecting the interests of all stakeholders and are guided by this commitment in managing Corporate Responsibility issues.

General governance The MRCC oversees the Corpora- The CGC addresses questions such structure tions’ health and safety policies and as size and composition to ensure practices. BCE’s Chief Talent Officer that the board and its committees BCE has a board of directors composed of 16 members as well is responsible for implementing continue to benefit from the range of as four committees, responsible for these policies. skills, expertise and experience needed to function effectively. The CGC is corporate oversight and strategies. The CGC is responsible for oversight also responsible for succession plan- All members of the board of Bell of the Corporations’ community ning and for nominees for election. Canada are also members of the BCE investment policy. The Executive board.* The board regularly reviews Vice-President, Communications & its structure, practices and composi- Corporate Marketing, oversees the Executive compensation tion. It also initiates changes to implementation of this policy. link to corporate improve effectiveness. responsibility Shareholder BCE’s executive compensation is Board committees communications not directly linked to environmental BCE and Bell Canada have BCE shareholders can provide feed- or social performance. However, four board committees. The back in a number of ways including it is linked to business objectives, responsibilities of the Corporate our Annual General Meeting, the which include attainment of CVI Governance Committee (CGC), shareholder proposal process described (Customer Value Index) and EVI Audit Committee, Management in our proxy circular, and our toll-free (Employee Value Index). For details, Resources and Compensation shareholder inquiries line. Share- review the BCE 2005 management Committee (MRCC), and Pension holders may also communicate with proxy circular. Fund Committee are described at the board by contacting the www.bce.ca/en/governance. Corporate Secretary’s Office at Board independence and [email protected] alignment with standards Oversight of corporate or (514) 786-3891. In 2004, BCE and Bell adopted responsibility standards of independence for their Responsibility for overseeing Delegation of authority directors, which are consistent with economic, environmental and social The responsibilities of the board the TSX guidelines and NYSE rules. risk is divided among the Audit and of the President and Chief Consult BCE’s website for details. Committee, the MRCC and the Executive Officer are set out in BCE’s CGC. Responsibility for oversight, schedule of authorities and in the Recognition implementation and audit of CR Bell policy on authorizations. These Every year, the Institute of Corporate (Corporate Responsibility) policies documents also list the type and Directors (ICD) recognizes four also rests with these committees. dollar-amount limits of transactions directors who have been nominated The Audit Committee reviews, that management may carry out by their peers and have distinguished reports and, where appropriate, pro- without prior approval from the themselves by bringing sound vides recommendations to the board board. Any corporate action that is governance leadership to Canadian of directors on the Corporations’ risk not specifically authorized or that boardrooms. BCE Chairman, management and environmental exceeds the dollar-limits of authority Richard J. Currie, was honoured under these schedules requires prior risks. The BCE board also approves as a 2004 ICD Fellow. approval from the board. the BCE environmental policy and GovernanceMetrics International: environmental management system. BCE is one of 34 companies globally The mandate to review this policy Expertise of board * This information is accurate as of and one of only three Canadian May 2, 2005. Director Thomas Kierans and report on its application by the members companies awarded a perfect score of will not stand for re-election as a board subsidiaries has been assigned to the Directors are chosen for their ability 10 in GMI’s global corporate govern- member. After our annual meeting on Audit Committee of the Board. to contribute to the broad range of May 25, 2005, the BCE board and the ance study of 3,220 companies around Bell Canada board will each be comprised issues that the board must manage. the world released in March 2005. of 15 directors.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Governance section > www.bce.ca/en/responsibility/governance Board members, Committees and Charters > www.bce.ca/en/governance/boardmembers/directors BCE Notice of annual meeting and Proxy circular > www.bce.ca/en/investors/financials/annualreports/bce 28 BCE Director Independence Standards > www.bce.ca/en/governance/independencestandards Governance > Policies, systems & standards Managing our business responsibly requires a solid governance structure as well as policies, systems and other tools that ensure understanding, consistency and adherence throughout the organization.

Managing ethics and Bell Canada’s Environmental Manage- > Environmental Charter for North business conduct ment System (EMS) is aligned with American Telecommunications: a set of We promote an environment that ISO14001 guidelines. It is essentially sustainability principles developed fosters ethical conduct and is intoler- an integrated management tool and adopted by leading North ant of any breaches. The conduct of that identifies potential problems or American telecom companies. opportunities, reduces risks, ensures directors, officers and employees of > Imagine Canada: an organization continuous improvement through most BCE companies is governed that encourages Canadian corpora- a rigorous feedback process, and by an over-arching Code of Business tions to donate at least one percent controls costs. Moreover, through Conduct (see the Code in full at of their pre-tax profits to charity. www.bce.ca/en/governance/ on-going legal monitoring, which is codeofconduct) which sets out an integral part of the system, Bell Affiliations and advocacy our various guidelines and prin- exercises due diligence in managing environmental issues. BCE promotes its views through ciples based on our values, and memberships in industry and busi- applicable laws and regulations. Socio-economic policies ness associations as well as advocacy It includes topics such as conflicts organizations. Some of the more of interest, use of company assets, and management system prominent affiliations that help confidentiality, workplace issues, Socio-economic issues are governed govern our conduct include: and the environment. and managed through a series of policies. Some of the subjects > Canadian Business for Social Bell Canada employees must review covered in BCE or Bell Canada Responsibility: a non-profit, business- and sign their code annually. BCE and policies include: disclosure, customer led, national membership organiza- Bell Canada require their principal privacy, fair information practices, tion of Canadian companies that have and senior financial officers to sign a anti-competitive behaviour, occu- made a commitment to operate in a supplementary code of ethics. pational health and safety, corporate socially, environmentally and finan- Environmental policies security, emergency management, cially responsible manner. and management system and workplace issues. > Global e-Sustainability Initiative (co-chair): a collective international BCE’s environmental issues are Bell Canada’s Ethics program is voice for Information and Com- governed by a single, over-arching managed centrally by an Ethics and munications Technology (ICT) service policy that was approved by the Policy Management Group. Policies providers and suppliers which per- Board of Directors and adopted in are applied and managed by indi- forms research on how the industry November 2004. The policy sets out vidual business and functional units. can reduce its sustainability impacts principles of environmental protec- Policy breaches result in disciplinary and help societies tackle some of the tion that all subsidiaries are expected action, up to and including dismissal. sustainable development challenges to adhere to. The mandate to review In certain instances, they may also our world is facing. this policy and report on its applica- result in civil or criminal prosecution. tion by the subsidiaries has been > Conference Board of Canada: assigned to the Audit Committee Standards an independent organization that of the Board. BCE subscribes to a variety of builds leadership capacity for a better voluntary guidelines, standards and Canada by creating and sharing Our main subsidiary, Bell Canada, codes of practice. Some of the more insights on economic trends, has an environmental policy which prominent ones include: public policy and organizational was originally adopted in 1993, performance. Bell Canada co-chairs updated in 1998 and last reviewed > Global Reporting Initiative: the Board’s Business Network in 2003. The Bell policy is regularly a multi-stakeholder international for Sustainability. reviewed by the Environmental initiative with a mission to develop Issues Network (EIN), a committee and disseminate globally applicable composed of company Officers. sustainability reporting guidelines.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Governance section > www.bce.ca/en/responsibility/governance Global Reporting Initiative > www.globalreporting.org Imagine Canada > www.imaginecanada.ca Canadian Business for Social Responsibility > www.cbsr.ca Global-e Sustainability Initiative > www.gesi.org The Conference Board of Canada > www.conferenceboard.ca Economy > Direct impact BCE’s actions impact the economic circumstances of our various stakeholders. We measure our impact on shareholders using traditional profitability indicators. We use other monetary flow indicators to gain insight into our impact on the economic status of other constituents.

Shareholders Customers Future issues and risks EPS (Earnings per share) Net Sales* The risks associated with the on- $ Bell BCE going profitability and stability of 2004 1.65 $ millions Canada Consolidated BCE and its subsidiaries are outlined 2003 1.90 2004 16,692 19,193 in BCE’s Annual Information Form 2002 2.66 2003 16,463 18,737 (www.bce.ca/en/investors/finan- 2002 16,849 18,900 cials/annualreports/bce/) for the year

*Operating revenues also include inter-segment revenues which are not included in this table. ended December 31, 2004 under the headings “About Forward-Looking Statements” and “Risks that Could Suppliers Employees Affect Our Business.” Risks covered Cost of all goods, materials and Total Payroll and include economic and market services purchased (BCE) Benefits (BCE) conditions, increasing competition, $ millions $ millions productivity and capital intensity 2004 11,629 2004 4,150 expectations, technological change, 2003 11,327 2003 3,635 liquidity, acquisitions, regulatory 2002 11,516 2002 3,627 matters, network events, revenue concentration, and others. Providers of capital Goals Distributions to providers of capital BCE FINANCIAL $ millions 2004 2003 2002 > For forward-looking information Interest paid on debt 1,005 1,105 1,120 on revenue and subscriber growth, Cash dividends consult our guidance at www.bce. on preferred shares 85 61 43 ca/en/investors/financials/outlook Cash dividends on common shares 1,108 1,029 999 COMMUNITY INVESTMENT > Increase Bell Canada’s community investment to $26 million in 2007. Increase / decrease in retained earnings at end of period 2004 413 2003 605 2002 (6,929)

Public sector Income taxes paid Bell Canada donations and (net of refunds) community sponsorships* $ millions $ millions 2004 216 2004 18.1** 2003 (24) 2003 15.9 2002 1,284 2002 11.3

* For a detailed breakdown, see “Community.” ** BCE corporate office donated an additional $845,000 to registered charities in 2004.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Economy section > www.bce.ca/en/responsibility/economy/directimpact 30 BCE financial quarterly and annual reports > www.bce.ca/en/investors/financials/annualreports/bce Economy > Indirect impact BCE’s investments in reliable and innovative communications technology have an indirect but important financial impact on Canadian communities. By bringing robust, secure and advanced communications solutions to consumers and businesses, we help promote Canada’s global competitiveness and economic well-being.

Business innovation: Programs & practices In 2004, a subsidiary of Telesat Our objective is to ultimately deliver Research & Development INVESTING IN INFRASTRUCTURE launched Anik F2, the world’s largest up to 26 Mbps to 85% of urban $ millions BCE is committed to making commercial communications satellite households in the Québec City to BCE investments to expand and update and the first to fully commercialize Windsor corridor, or approximately 2004 1,484 our networks and to meet customer the Ka frequency band. This is a 4.3 million households by 2008. 2003 1,524 demand for new services. breakthrough in satellite communica- By the end of 2005, we expect 2002 971 tions technology as it enables the to reach 1.1 million households NETWORKS delivery of cost-effective, two-way with FTTN which we expect will Bell Canada’s wireline networks Bell Canada Consolidated broadband services. ultimately enable next-generation transport voice, data and Internet services such as IPTV (Internet 2004 1,451 RELIABILITY AND SECURITY traffic nationally. Our local access Protocol Television). 2003 1,490 network consists of 12.9 million Our robust, self-healing network is 2002 888 local telephone lines and our national available 99.999% of the time. This EVDO wireless networks carry voice and represents five minutes of down time We intend to deploy EVDO (Evolu- data. We provide satellite and VDSL over an entire year. When a fault tion, Data Optimized network) in Investments in (very high-speed digital subscriber occurs, it’s automatically detected and major urban centres across Canada infrastructure: line) delivery of video services. Our quickly resolved. Bell takes great care in 2005 and 2006. This will enable extensive fibre-optic network enables to protect all of its networks from wireless broadband speeds six times BCE Capital expenditures us to deliver advanced solutions to fraud and other security threats. faster than today’s technology and ultimately up to 2.4 Mbps. $ millions business customers in most cities of INVESTING IN INNOVATION 2004 3,364 British Columbia, Alberta, Ontario, Innovation is a way of life at Bell. IP TELEPHONY 2003 3,167 Québec, and the Atlantic provinces. Over the past year, we opened We plan to introduce IP (Internet 2002 3,709 We introduced Voice over IP (VoIP) 10 innovation centres to incubate Protocol) telephony to consumers telephony to consumers in certain and rapidly develop new ideas based in 2005. Bell Canada University Research* cities in the first quarter of 2005. on IP technology. And with more $ millions In 2004, we began the rollout than 200 active patents and patent Recognition 2004 8.4 of broadband technology that is applications to our name, most of our The 2004 Frost & Sullivan Regional 2003 5.4 expected to ultimately bring next- innovations lead to real products and Satellite operator award was bestowed 2002 6.5 generation services to approximately services that help customers connect upon Telesat for its strategy and 4.3 million households in the Québec in new and better ways. product innovation, which have * Numbers re-stated to include City to Windsor corridor by 2008. given the company a competitive Innovation Fund which was previously UNIVERSITY RESEARCH reported separately. Our 2004 rollout included FTTN Our commitment to innovation advantage over both regional and (fibre-to-the-node) to 376 neighbour- extends beyond our own walls to global operators. hoods and agreements to bring universities. We also created Bell Business innovation: VDSL to 335 MDUs (multiple- University Labs, a unique partnership Research & Development dwelling units). where universities and industry work $ millions Bell was the first Canadian company together to innovate. BCE to announce plans to deploy the third 2005 1,528 generation (3G) of wireless mobile Goals 2006 1,528 communications which will offer FTTN broadband speeds up to six times Our plan over the next three to four Bell Canada Consolidated faster than the speeds that exist today years is to make a significant invest- 2005 1,492 and ultimately up to 2.4 Mbps. ment to expand the reach and amount 2006 1,492 of bandwidth available to customers.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Economy Section > www.bce.ca/en/responsibility/economy/indirectimpact BCE Innovation page > www.bce.ca/en/community/innovation BCE: A History of Innovation > www.bce.ca/en/company/history Environment > Introduction At Bell Canada, environmental protection has been integral to doing business for the past 15 years. Our environmental programs are focused on minimizing our impact on the environment, reflecting an unwavering commitment to sustainability and the protection of our planet.

At a glance 62,000 employees, 7,500 vehicles, The programs successfully enable 3,600 properties, and 13,500 metric us to: Vehicles 7,573 tons of residual materials generated > understand our overall consump- Poles in use 1.5M in one year… the size of a small com- tion and reduce our demand on the Wire & cable 160M km munity, Bell leaves an unavoidable earth’s scarce resources; footprint on the environment through Manholes 65,000 > be proactive in reducing our air its operational activities. Storage tanks 2,483 emissions, effluents and waste; and Real estate The Bell community is spread over > minimize the impact of our corpo- properties 3,600+ thousands of kilometres and has a rate footprint on the environment. population density of approximately one person per hectare. In connecting The programs are anchored by a Canadians from coast to coast we strong environmental policy and recognize that our wired, wireless comprehensive environmental and satellite network infrastructure management system and are being also has an inescapable impact on implemented across all Bell divisions the environment. where applicable. Water is used by employees for personal needs or to cool buildings; energy provides light and heat for our r en offices, to operate telecom equipment ate erg and to run our vehicles. Materials w y from computers to pop cans are used,

recycled or discarded on a daily basis. m

a Both inside the company and out, d t e n we strive to minimize this impact Prevent r a i

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year after year. a

l s This section reports on Bell’s Protect performance in key and emerging environmental programs that have Conserve been implemented in the company. a a i r r o fl fauna

Whether they are related to our network operations, the products or services we deliver to our customers or the community, our environmental initiatives aim to reduce our air emissions, consumption and waste while protecting water quality, flora and fauna.

Additional information and resources 32 BCE’s Comprehensive 2004 Corporate Responsibility Report – Environment section > www.bce.ca/en/responsibility/environment Environment > Consumption At Bell, reducing our consumption of energy, water and materials is not only a means to generate cost savings but also a way to help protect natural resources and reduce the burden on our over-worked environment.

Energy Each year, we make strides to shrink > The introduction of the flexSpace Reduction efforts are not tracked our footprint, from the energy we program to reduce office space and or measured at a corporate level. Network & real estate use for our network and workplace employee travel. Two sites were We are currently able to report on M kWh to the consumption of goods and the adapted to accommodate the program our total paper consumption and the 2004 878.6 generation of waste. and five more will be converted by quantity of packaging materials used 2003 878.3 spring 2005. For these seven sites, for our consumer market. Full details 2002* 814.3 Programs & practices flexSpace is expected to bring annual can be found in the Web version ENERGY reductions in energy consumption of of this report. We use energy to power our telecom- approximately 502,000 kWh. Water munications equipment, operate > The installation of motion sensors Goals ENERGY M Litres buildings and run our vehicles. In in offices, optimization of heating and 2004 772 support of Canada’s Kyoto Protocol cooling systems, the improvement of > Install renewable energy systems 2003 852 objectives, we strive to increase our roofing insulation and other energy such as wind turbines and solar panels use of renewable energy, such as wind saving initiatives in our network in remote company locations. and solar, while minimizing our con- and buildings. > Pursue field trials of hydrogen sumption of non-renewable resources. Materials > The use of eight hybrid vehicles fuel cells. Energy-saving initiatives in that run on gasoline and electricity. > Participate in government energy- Paper 2004 included: TM saving incentive programs. Metric tons > A field trial to study the use of > The installation of 3,850 TelePod 2004 5,686 hydrogen fuel cells to power our systems in company vehicles that are > Acquire two additional hybrid expected to reduce fuel consumption 2003 5,636 telecommunications equipment. The vehicles and install TelePod systems by approximately 10%. 2002* 4,707 initiative was conducted in partner- in 1,000 additional vehicles. ship with the Hydrogen Village WATER WATER * Excludes consumption data from some project of the Greater Toronto Area. Water is used by employees for subsidiaries. See Web report for detailed > Improve monitoring of our water explanation. > The installation of wind turbines drinking and sanitary purposes and consumption in order to reduce usage. and solar panels at four remote is used at some locations to cool MATERIALS northern sites where energy was pre- the air in buildings. Although our > Roll out new, simpler customer bill. viously provided by diesel generators. water consumption is relatively These hybrid systems will result in a low, we recognize the importance > Develop a reduction plan for reduction of 9,000 litres of diesel or a of responsible water usage. product packaging. saving of approximately 90,960 kWh MATERIALS per year and site – enough energy to We rigorously apply Reduce and heat 45 households. Reuse principles to improve our consumption. Although we currently do not quantify our material require- ments, we have many processes in place that directly reduce the amount of new materials required for business.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Environment section > www.bce.ca/en/responsibility/environment/consumption Environment > Emissions Air emissions are rigorously managed and minimized through a combination of close monitoring and innovative initiatives. We support national programs that address climate change and the protection of the ozone layer and we act to reduce our noise emissions and the release of contaminants into the water.

CO2e emissions relative In the course of our operations, we Programs & practices We send recovered Halon 1301 from to energy consumption require the use of equipment such OZONE DEPLETING SUBSTANCES fire protection systems to an approved g/kWh as air conditioning and fire extin- Ozone Depleting Substances (ODS), external agency for reuse by author- 2004 202 guishing systems that often contain such as Chlorofluorocarbons (CFCs) ized companies, as per regulations. Ozone Depleting Substances (ODS) 2003 197 and Halon, deplete the stratospheric We replace portable fire extinguishers like Chlorofluorocarbons (CFCs) 2002 n/a ozone layer that protects the that contain Halon 1211 with water, and Halon. earth from ultraviolet rays (UVB). CO2 or dry chemical extinguishers. Our sizeable network and operations Ultimately, UVB rays are harmful to the environment, and prolonged GREENHOUSE GASES Vehicle fleet CO2e also require a robust consumption Even though our emissions represent emissions relative to of energy that directly and indi- exposure can have a detrimental only 0.02% of the total CO e emit- mileage rectly results in the production of effect on health. CFCs are found in 2 refrigeration and air conditioning ted in Canada, we recognize the g/km greenhouse gases. importance of every contribution 2004 469 systems and were once used as an Noise, which can be an environmental active agent in aerosols. Halon is used in preventing climate change. 2003 465 pollutant, may come from equipment in some portable and engineered fire We document our greenhouse gas 2002 n/a such as stand-by generators, air condi- extinguishing systems. emissions and report these annually to tioners and cooling fans. the government. We also implement a n/a = Not available Our objective is to replace all systems range of programs aimed at reducing Lastly, Bell’s 65,000 manholes, most and products that contain ODS with both direct and indirect emissions. of which are not watertight, often environmentally-friendly substitutes accumulate run-off such as road water and to minimize their release into In 2004, we launched Everyday and sediment that is sometimes the atmosphere. Measures include the Kyoto to engage employees in contaminated. use of only CFC-free aerosols and the the global effort, in partnership replacement or conversion of chillers with Environment Canada and containing CFCs. Québec-based Nature-Action. The comprehensive educational program We use best practices to recover raises employee awareness of the refrigerants contained in building issues surrounding global warming or vehicle air conditioning systems and of what employees could do to and ensure employees or suppliers reduce emissions. Program elements are trained and licensed to operate included face-to-face and online refrigeration equipment. training, a web-based video, posters, Since 1989, we have reduced our use articles and web conferences. of Halon 1301 by 65%. Very Early If the commitments of the Warning Fire Detection systems at 1,300 people who pledged online to key central offices are being tested act are upheld, Bell employees will to replace Halon. When combined reduce harmful CO2e emissions by with a power-down function, they more than 1,300 metric tons in 2005. are expected to provide effective fire protection.

34 Greenhouse gases E-solutions such as teleworking, tele- NOISE Goals conferencing and videoconferencing We are committed to minimize OZONE DEPLETING SUBSTANCES

CO2e emissions are also contributing favourably to the noise from our equipment that poses > Develop a Halon 1301 phase Metric tons reduction of greenhouse gas emissions a nuisance. out plan. 2004 227,427 through reduced travel. We have noise guidelines for the GREENHOUSE GASES 2003 233,336 Our employees conducted more than installation of new network equip- > Continue to raise employee 272,000 teleconferences in 2004, ment that specify the maximum noise awareness through the Everyday CO2e annual reduction each averaging 42 minutes and four level at property limits and ways to Kyoto program. Metric tons participants per conference. Based reduce noise levels when required. Wind turbines 50 on a McGill University study of the > Conduct an anti-idling awareness Other techniques to reduce noise, Energy efficiency 380 energy and air emissions saved by campaign for employees who use such as the use of variable speed flexSpace 140 teleconferencing, and conservative company vehicles. cooling fans and sound enclosures, Hybrid vehicles 18 assumptions about the travel required were tested on existing cabinets, NOISE to attend face-to-face meetings, TelePod 3,800 huts and vaults. In 2004, six air- > Continue to reduce noise from we estimate that these conferences Teleworking 6,000 conditioning units and one back-up equipment located in quiet areas, saved 142,000 tons of CO e in 2004. Teleconferencing 142,000 2 generator were modified to reduce such as residential neighbourhoods. Benefits on a greater scale were also Employee initiatives 1,300 noise emissions. We also reduced realized from the 2.73 million tele- MANHOLES the noise emitted from one back-up conferences held by our customers > Continue to install new covers generator by improving the efficiency in 2004. where contamination is an issue. of the muffler. Some 15,052 Bell employees were MANHOLES equipped to telework, potentially Manholes house network components avoiding 25 million km/year in work such as cables and splice closures. commute and reducing approximately We strive to prevent the release of 6,000 metric tons of CO e a year from 2 contaminated manhole effluents into the atmosphere. storm or sanitary sewers. We have a Our “zero emissions” initiative variety of measures in support of this currently provides 23 free bicycles goal, including best practice pumping and helmets at six different sites for procedures, training, the use of non- employee personal use. Bicycles were metallic ladders and cable supports in taken out on more than 600 occasions the manholes to prevent or reduce the between April and November 2004. release of metals into the water, and the installation of new manhole covers Various programs to increase the without holes. In 2004, 808 of these use of renewable energy and reduce covers, which limit the infiltration of energy consumption are described in water and sediment, were installed the Energy section of this summary. in Bell territory on new manholes or where contamination was an issue.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Environment section > www.bce.ca/en/responsibility/environment/emissions Environment > Land & infrastructure We recognize that our telecommunications network and operations may have an impact on the environment. Strong environmental programs are enabling us to prevent or minimize the impact, and to act responsibly to address any unforeseen situation.

Petroleum Our network extends over a vast Programs & practices When we remove or replace storage product equipment territory that crosses many intercon- SITE ASSESSMENTS tanks, we clean up and restore all nected ecosystems. As a result, our We conduct environmental site assess- surrounding soil that may have been Ratio aboveground/ network planning, construction, ments to assess the environmental contaminated by petroleum product underground tanks maintenance, operating and mod- conditions of a property. Assessments spills and leaks. ernization activities may have an 2004 84% allow us to exercise due diligence in We conduct annual inspections and impact on the environment and on 2003 73% dealing with contaminated sites or maintenance of hydraulic hoists and human activity. 2002 49% property transactions. oil/water separators and plan upgrades Our past and current activities, Each time a site’s condition requires as required. Installation of overfill protection as well as those of former property intervention we proceed with VEGETATION and spill containment for owners, may have lead to soil and remediation to minimize soil and In 2002 and ahead of legislation, we underground storage tanks water contamination at certain groundwater contamination. We rely implemented a vegetation manage- 2004 16 company sites. on leading-edge remediation technol- ment policy under which we stopped 2003 12 ogy and our network to monitor using pesticides on our properties 2002 11 the activity. for aesthetic reasons. Weeds and By improving the environmental other vegetation are controlled management of our assets, we have using organic lawn care, alternative Site assessments reduced the annual number of reme- landscaping and site naturalization. diation projects in recent years. The practice promotes biodiversity as Assessments and well as water and energy conservation. characterizations PETROLEUM PRODUCT EQUIPMENT Prior approval from our Environmen- 2004** 53 We have a number of programs to tal Services group must be obtained 2003* 204 prevent leaks and accidental spills of if pesticides have to be used on 2002 33 petroleum products. Underground a property. tanks are replaced by state-of-the-art aboveground tanks wherever possible We continue to provide training to Remediations or replaced with new double-walled, Bell Relay Service managers on the 2004 18 non-corrosive fibreglass tanks ecological management of vegetation. 2003 24 equipped with high-tech monitoring As part of our on-going partnership 2002 35 and alarm systems. with Québec-based Nature-Action, we are developing a long-term * Includes assessments conducted All storage tanks are inspected annu- vegetation management plan for at Bell Nordiq, Bell West and ally and preventative maintenance is BCE Nexxia Corp. newly integrated into all company properties. Bell’s environmental management system. completed as required. In addition, INTERNAL ENVIRONMENTAL ** Assessments conducted at 360networks. our databases are verified and updated every month, fuel inventories are rig- EVALUATIONS (IEE) orously controlled and leak tests are IEEs are one tool to help us protect performed. We schedule compliance sensitive, natural areas and minimize audits annually for high risk tanks, our environmental impact. They are followed by upgrade and moderniza- integrated into our current practices tion programs when necessary. and operating procedures of our wireline and wireless networks.

36 Vegetation The training of employees and con- Finally, we participate in a Québec Goals tractors on important environmental government program to bury SITE ASSESSMENTS Alternative landscaping sites requirements is key to the program. network cable at tourism, cultural > Pursue required remediation 2004 51 An environmental training guide and or heritage sites. 174 municipalities activities in 2005. 2003 22 procedures outline the preventative have shown interest in this program and mitigation measures for net- and 33 projects have so far been PETROLEUM PRODUCT EQUIPMENT work development, construction announced by the Québec Ministry > Install automatic overfill protection on 20 aboveground storage tanks Internal environmental and removal. of Natural Resources. We initiated four heritage protection projects in larger than 2,500 litres. evaluations in 2004 Environmental assessments, impact 2004 and completed five others for a studies, and fish habitat site inspec- > Replace 21 underground tanks total investment of $1.2 million. Cable burying projects tions are other tools we use to with aboveground tanks. initiated 4 minimize potential environmental POLES VEGETATION Cable burying projects impacts and to obtain regulatory Our objectives are to optimize the > Continue to apply new ecological completed 5 approval to conduct our work. number of pole storage yards, mini- landscaping methods at the 51 sites mize the risk of contamination by WORKING WITH COMMUNITIES currently under the program and add avoiding the use of treated wood poles Bell also pursues initiatives aimed two new sites. in environmentally sensitive areas and Poles at improving the streetscapes in minimize the number of poles sent INTERNAL ENVIRONMENTAL Metric tons our communities by taking care to to landfill. EVALUATIONS Total poles recovered develop and install outside plant > Continue participation in the 2004 1,188 equipment that minimizes the visual We have has been proactive in the buried network cable program. 2003 980 impact of our network infrastructure. above areas through initiatives that 2002 1,181 Our Municipal Liaison group has include standardizing the use of POLES developed community design steel and non-treated cedar poles > Upgrade 7 pole storage yards Poles recycled guidelines to optimize the design and in environmentally sensitive areas in Ontario to meet the latest SOP criteria. 2004 60% location of equipment, and minimize and striking a product stewardship 2003 51% the impact of construction and main- agreement with our pole supplier that > Implement a new pole recovery 2002 62% tenance activities. Bell Mobility also imposes strict requirements on how process that will reduce waste to pays particular attention to the visual poles are treated and repatriated at landfill by increasing pole reuse, Poles safely disposed impact of its antennas and towers. the end of their useful life. We also recycling and energy recovery. 2004 40% In consideration of aesthetics, it may actively participate in the Govern- 2003 49% paint its antennas and towers or ment of Canada’s Strategic Option camouflage them on buildings. These Process (SOP) aimed at developing 2002 38% types of initiatives have helped build and implementing best management positive relationships with customers, practices for treated wood. developers, and municipalities. Our 2004 initiatives included reduc- ing pole storage yards from 52 to 44 and reaching an agreement with our pole supplier to recycle more poles into lumber.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Environment section > www.bce.ca/en/responsibility/environment/land Environment > Residual materials Bell’s various resource and waste minimization initiatives demonstrate that social, environmental and economic goals are not mutually exclusive.

Landfill diversion rate Through strict adherence to reuse Almost 257 metric tons of materials We help protect the environment and recycle principles, the residual from our vehicle fleet from used tires and contribute to a good social cause 2004 70% materials we generate – such as paper, to engine oil were sent to recyclers through our continued support of the 2003 68% cardboard, metals, plastics, wood, in 2004. Waste minimization efforts Québec-based Centre de formation en 2002 70% etc. – are responsibly managed. Every included the recycling of waste entreprise et récupération (CFER), a year, we send less material to landfill, anti-freeze directly at some locations training school that provides useful save costs and reduce our consump- and the use of a new biotechnology, manual skills to young people who Take-back of used tion of valuable resources. water-based solution to replace the do not have a high school education. use of cleaning solvents. The diversity of work provides customer telephone sets Hazardous Materials must be and cellular phones students with excellent training for stored, transported, treated and NON-HAZARDOUS mainstream employment. disposed of in an appropriate way Over 50,700 old cellular phones 2004 8.5% to protect the environment and (15.2 metric tons) were collected Our Zero WasteTM program reduces 2003 n/a human health. These materials are in 2004 under our Recycle, Reuse, non-hazardous materials generated in 2002 n/a collected and managed according to Redial program which reduces waste our administrative offices and network legal requirements and best in-class to landfill by recycling old phones maintenance centres. We recycled a n/a = Not available management practices. and reusing them through resale and total of 1,094 metric tons of paper, refurbishment. We donated some cardboard, bottles and cans in 2004. 1,540 cellular phones to more than Residual materials Programs & practices Printer toner cartridges have been 150 women’s shelters and 1,498 units diverted from landfill HAZARDOUS collected for years and generate a cost Our program is designed to prevent, to the 2nd Stage Program that sup- Metric tons reduction of 30% to 50% through control or reduce the release of ports women who leave the shelters Network operations our use of refurbished cartridges. hazardous materials into the environ- to start a new life. A donation of 2004 5,469 We used 12,194 refurbished units ment. Residual materials are either $200,000 from resale revenues 2003 5,060 in 2004. returned to inventory or the manufac- was made to the Hospital for Sick 2002 5,740 turer, reused within our operations, Children in Toronto. Goals recycled or safely eliminated. Central office batteries Approximately 2.6 metric tons of bat- HAZARDOUS 2004 1,465 In 2004, we diverted 2,052 metric teries and 5.2 metric tons of chargers > Replace six solvent-based cleaning 2003 960 tons of hazardous residual materials and other cell phone accessories were machines with the new water-based 2002 998 from landfill. also collected and recycled under the technology. program last year. Hazardous materials Our Centralized Collection Process NON-HAZARDOUS Materials from Bell’s network are 2004 330 now includes 273 participating sites > Increase the visibility of our collected from our work centres and 2003 192 and in 2004 collected 330 metric tons Reduce, Reuse, Redial program in central offices and reused, sold or 2002 165 of materials. Bell World stores. recycled. Residual materials, such Central office batteries are sent as copper cables, steel hardware and Vehicle fleet directly to recyclers. The higher Recognition 2004 257 lead sleeves are sent to recyclers for Bell was presented with the prestig- quantity of batteries collected in secondary markets and equipment 2003 286 ious Phénix environmental award by 2004 was the result of a large number in good operating condition is sold 2002 246 the Québec government in May 2004 of expired twenty-year-old batteries for reuse. The total rate of network being replaced. for our efforts in reducing waste to Telephones, cell phones residual material diverted from landfill by more than 70% annually. and accessories landfill reached 79.5% in 2004. 2004 168 2003 170 2002 180

Administrative 2004 1,094 2003 831 2002 856

Additional information and resources 38 BCE’s Comprehensive 2004 Corporate Responsibility Report – Environment section > www.bce.ca/en/responsibility/environment/residualmaterials Environment > Incidents From a minor event such as the spill of a litre of oil to a full-blown emergency involving a fire of hazardous materials, we continuously strive to prevent incidents from occurring.

Reported incidents* When an environmental incident Finally, incidents are analyzed Goals Number happens, the company must comply in order to identify root causes, > Continue to train employees and 2004 417 with provincial, federal and munici- potential trends, and to develop diligently manage environmental 2003 286 pal laws that require it to be reported or adapt preventative measures. incidents. to authorities and, if necessary, to 2002 134 In 2004, 417 environmental be remediated. > Assess equipment and maintenance incidents, such as complaints, ODS * The growing number of participants in the procedures to identify root causes of incident reporting program as well as the Programs & practices (Ozone Depleting Substances) leaks, ODS leaks and preventive measures. systematic reporting of ODS since 2002 has oil spills or fires were reported led to an increase in the total number of Our Incident Management Program by employees or the public. The reported incidents. trains employees on their roles significant increase in the number of and responsibilities in the handling reported incidents is mainly attribut- and reporting of environment- able to the systematic reporting of related incidents. ODS leaks from cooling systems Following strict procedures, they which we began in June 2002, and to must promptly report all incidents the growing number of participants to the company’s Environmental in the incident management program. Services group, which can respond In all cases, we advised the appropri- on a 24-hour basis. The group ate government authorities of the determines the best plan of action and incidents and began remediation also reports incidents to appropriate when required. government authorities. Response kits and instructions have been distributed to all work centres and central offices and are stored in vehicles equipped with hydraulic systems.

2004 Environmental Incidents

Notice of infraction 2

Public concerns 20

Hydrocarbon spills 34

Corrosive liquid spills 9

Other spills and releases 17

ODS releases 335

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Environment section > www.bce.ca/en/responsibility/environment/incidents Customers Loyal, satisfied customers are the soul of any enterprise, especially in the competitive and rapidly evolving telecommunications industry. Which is why we strive to offer products and services that are easy and intuitive to use, and provide customer interactions as straightforward and hassle-free as possible. We are also committed to providing secure, barrier-free access to our products and services and to extending our service reach.

Bell Canada Customer Programs & practices SPECIAL NEEDS CUSTOMERS Bell Canada has contributed * Value Index (CVI) GALILEO Services for customers with $700,000 over three years. Cybertip.ca % This is a company-wide program to disabilities include a Special Needs will allow concerned Canadians to 2004 78.8 simplify and enhance the customer Centre, Bell Relay Service, alternate actively engage in the fight against 2003 80.6 experience. In the Consumer segment, formats of bills and bill inserts, free Internet sexual predators who 2002 80.0 Galileo aims to unify the customer automatic directory assistance call threaten the safety of children. completion, and operator assistance experience across all product lines INTERNET SECURITY * The CVI number represents the number of for local and long-distance calls. In and eliminate the costs of complexity Online safety and security are impor- respondents who gave a score of 7 or more addition, we support barrier-free on a 10-point scale. associated with multiple systems tant concerns for Canadian Internet access in our Bell World-Espace Bell and processes. service providers. We take action on a stores and offer Mandarin and number of fronts to protect customers In the Business segment, Galileo aims Cantonese language services through from intrusions and to ensure they Customer connections to deliver to customers a streamlined Bell Mobility’s call centre. millions service offer based on IP, thereby derive the full benefit from their 2004 26.6 eliminating the costs of multiple data RESPECT FOR PRIVACY Internet experience. The Bell Code of Fair Information 2003 25.6 networks and related processes. > Be Web Aware – a national, bilin- Practices and Customer Privacy Policy 2002 24.7 gual, public education program on Our goal is to face customers as one spell out the rights of customers Internet safety that directs parents to company, offering a single point of regarding the collection, use and a comprehensive website of informa- contact and one source for all of our disclosure of their personal informa- tion and tools. customers’ communications – at tion in compliance with Canada’s > SPAM – Bell is represented on home, at work, on the go. private sector privacy law, the Canada’s SPAM Task Force that Personal Information Protection and CUSTOMER SATISFACTION is implementing a nation-wide Electronic Documents Act. We have also Each year, we capture feedback from action plan to reduce and control developed the Bell Code of Conduct approximately 120,000 customers in the amount of unsolicited mail that for Electronic Commerce to ensure that our Consumer and Business Markets finds its way into user mail boxes. customers’ interactions with us over and translate it into our Customer Bell’s own anti-spam activities will the Internet are secure and private. Value Index (CVI). A new measure- include proactive customer education ment system, the “Customer Loyalty Each year, we ensure that our and communication, network-based Measurement” (CLM) will replace employees review and sign a Code measures as well as PC, wireless and CVI in 2005. of Business Conduct that requires e-mail measures. SERVICE IMPROVEMENT PLAN the safeguarding and proper use of > Stop Spam Here – a recently In September 2002, Bell launched personal information. We also place launched public awareness campaign a Service Improvement Plan (SIP) strict controls on the protection and supported by Bell Canada that to provide basic local telephone use of personal information within includes a website of excellent tips service to customers in remote areas our systems and web sites and ensure for fighting spam and staying safe on of Ontario and Québec at a fraction that our employees are trained to the Internet. of what it would otherwise cost. respect customer privacy at all times. > Customer e-mail policy – Bell Canada explains how to block FIGHTING ONLINE CHILD To date, we have invested $64 mil- fraudulent messages and practices EXPLOITATION lion in capital and expect to continue such as “phishing” in which Internet We have greatly enhanced our to make additional investments. users are deceived into disclosing their collaboration with industry, law When the SIP is completed, we credit card or banking information. enforcement, the government and estimate that it will have provided > Web tools – Bell Sympatico offers with established non-governmental the opportunity to obtain basic security features such as parental organizations to battle the online phone service or upgraded radio- controls and pop-up blockers to victimization of children. telephone and fixed wireless phone help parents remain vigilant against services to almost 18,000 customers One such collaborative effort was Internet abuse. in approximately 2,800 rural and the launch of Cybertip.ca, Canada’s remote areas and communities across national tip-line for reporting 40 Ontario and Québec. online child exploitation to which Special needs customers CUSTOMER HEALTH AND SAFETY CUSTOMER VALUE INDEX the range of 7-10, where 1 represents in 2004 Cell phones and health Despite reaching some major “not satisfied” and 10 represents The safety and security of our custom- customer experience milestones in “very satisfied”. ers is a top priority. Mobile phone 2004, Bell fell short of meeting its Registered Special Needs Free Automatic Directory Assistance manufacturers test their products to 2004 CVI target of 80.7% due to Ontario 436,508 Call Completion (ADACC) ensure they meet Health Canada’s service issues. In 2005 we are very Québec 353,508 Effective June 3, 2004, Bell Canada Safety Code 6 radio frequency (RF) clearly focused on providing our Total 790,016 customers with special needs who are emission guidelines, among the customers superior product and unable to use the directory due to an most stringent in the world. All our service experiences. Number of TDD* users among impairment were exempt from paying cellular sites and tower antennas are registered customers PROPOSAL TO EXTEND DSL TO RURAL ADACC charges. also tested and frequently found to Ontario 2,793 AND REMOTE AREAS be hundreds of times lower than the Québec 2,011 In 2004, Bell filed a proposal with the Goals RF emission standard. Total 4,804 Canadian Radio-television and Tele- CUSTOMER EXPERIENCE Responsible Driving communications Commission (CRTC) > Launch redesigned Bell.ca site to * Telecommunications Device for the Deaf. In collaboration with the wireless to extend its Digital Subscriber Line increase online sales. industry and its partners, we are com- (DSL) high-speed Internet access > Serve customers more effectively in mitted to helping motorists use their service to many unserved rural and order to dispatch fewer trucks so as to cellular phones safely and responsibly. remote communities in Ontario and eliminate rework. We continue to promote responsible Québec. The three-year initiative, if > Continue to aggressively market our driving in our customer commu- approved, would deliver the benefits traditional products and services using nications and through a variety of of broadband service – including innovative marketing techniques. products and services, including greater access to educational, business > Rollout of new simpler bill. hands-free devices and voice dialling and health care opportunities – > Increase adoption of self-serve either through the handset or as a to as many as 200,000 additional services and web-based interfaces by network feature. home and business lines in over Enterprise customers. 1,100 communities. Performance CUSTOMER LOYALTY MEASUREMENT CALL CENTRE WAIT TIMES > Bell Aggregated 2005 target 2004 CUSTOMER The CRTC requires that 80% of 80.9% (short-term loyalty measures) EXPERIENCE MILESTONES calls to Bell Canada’s Consumer > Bell Aggregated 2005 target > 431,000 customers on bundles – Contact Centres be answered within 82.5% (long-term loyalty measures) a combination of wireless, Internet 20 seconds. In 2004, 81.2% of calls and video services in one offer to 310-BELL in Ontario and 81.9% EXTENSION OF DSL > 30% reduction in SMB provision- of those to 310-BELL in Québec were Secure a favourable CRTC ruling on ing time answered within 20 seconds. Bell’s proposal to extend DSL to rural > Initiatives to simplify processes, and remote areas. improve service and lower costs SPECIAL NEEDS CUSTOMERS > Migrated key billing system Bell Relay Service customer satisfaction > 48-hour installation for ExpressVu The year-to-date December 2004 > 80% one call resolution in 310-BELL results of our monthly survey of > Improved in-store selling time customer satisfaction with Bell Relay by 30% Service shows that, on a corporate basis, 96.6% of the company’s voice customers and 90.9% of data custom- ers rate the overall quality of BRS in

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – People section > www.bce.ca/en/responsibility/people/customers/customersatisfaction www.bce.ca/en/responsibility/people/customers/productaccess www.bce.ca/en/responsibility/people/customers/productresponsibility Employees > Employment & practices We want to be known as a good place to work. A company that offers competitive pay and benefits as well as a progressive workplace where knowledge, growth and ethical conduct are fostered. Our human resources practices are focused on supporting employees, during the time they work for us and even in the event they leave.

Employee Value Index Programs & practices The centres offer shared workstations Issues and risks At the end of 2004, we had or offices and are fully equipped with > The pay equity case between Bell Bell Canada 62,000 employees in the BCE family Voice Over IP technology and other and the Communications, Energy 2004 63% of companies. Bell Canada, with office amenities. and Paperworkers’ (CEP) Union 2003 65% the largest number of unionized DEPARTURE PROGRAMS remains before the courts. Bell’s 2002 69% employees, successfully negotiated Bell takes all steps necessary to settlement offer to the CEP in 2002 a four-year collective agreement address change constructively and was not presented to the membership BCE (all companies) with the Communications, Energy minimize any impact of downsizing by union leaders. Bell continues to 2004 63% and Paperworkers’ Union (CEP), on employees by means such as remain open to discussions with the 2003 63% representing technicians, without voluntary leaves and the Bell People CEP on the issue. any work disruption. 2002 66% First program which promotes filling Goals PAY AND BENEFITS vacancies with qualified internal Best in class As one of the country’s largest candidates before hiring externally. > Successful renewal in 2005 of 2004 83% the collective agreement between employers, we continued to offer one AVERAGE TURNOVER 2003 81% of the most competitive salary and Bell Canada and the Canadian Bell Canada had a turnover rate of Telecommunications Employees’ 2002 83% benefits packages in the industry, approximately 13% in 2003 and 19% including a flexible benefits program, Association (CTEA), representing in 2004. The 2004 rate was substan- clerical employees. stock plan, disability programs, tially increased due to the elimination Departure programs group RRSP, and employee discounts of approximately 5,000 positions. > Work redesign as a result of changes on communications products and generated by the move to IP. 2004* services. In response to changing Performance employee needs and preferences, > 5,000 positions eliminated EMPLOYEE SATISFACTION Recognition we introduced a new more flexible > 860 additional employees The hard decision to eliminate posi- > Career Edge Host award for the pension arrangement effective redeployed tions at Bell Canada lowered morale largest hiring of student interns in January 1, 2005, that gave employees > $1.3M invested in retraining and was reflected in its Employee a company – 58 in 2004. more choice and control over their Value Index (EVI), a key measure > Bell People First recognized * pension investments. 2003 of employee satisfaction. In 2004, as a best recruiting practice by > 1,700 positions eliminated We also continued to promote EVI decreased to 63% from 65% in The Corporate Leadership Council, > 549 additional employees programs that help our people 2003. We did not meet our target of a U.S.-based organization. redeployed strike a healthy balance between 66%. The key findings were that we > $1M invested in retraining work and life. Some of these include must continue to improve customer > Bell People First received a a flexible leave program that allows focus and better communicate the 2005 Optimas award under the “Managing Change” category from 2002 employees to pursue a number company’s direction. We will work U.S.-based Workforce Management. > n/a of activities including education, hard to improve these areas in the community service and political coming months. work, and Wellness Checkpoint, a n/a = Not available. Of the over 15,000 Bell employees * For Bell Canada (excluding Aliant). web tool to help employees assess who were equipped to telework in lifestyle and well-being. In addition, 2004, all of the approved or perma- a pilot project of flexSpace got off nent teleworkers and the majority of Teleworking arrangements the ground, offering employees the occasional teleworkers had high-speed opportunity to trade-in their offices service. This allowed employees to be 2004 15,052 for the convenience of working from much more productive while working * any number of flexSpace Centres. 2003 14,325 away from the office. 2002 15,533

* This number has been revised from the 2003 report.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – People section > 42 www.bce.ca/en/responsibility/people/employees/employment www.bce.ca/en/responsibility/people/employees/workplacepractices Employees > Health & safety We are committed to ensuring the health and safety of employees across all BCE operations. Bell Canada has made a specific commitment to promote a healthy lifestyle among its employees by providing a health and well-being program in the workplace. The information below applies to Bell Canada.

Lost-time injury rates* Programs & practices WORKPLACE INSPECTION PROGRAM Performance MANAGEMENT Local Health and Safety Committee 2004 LOST-TIME INJURY RATES Frequency 0.83 Bell Canada has a formal Health and members inspect our workplaces (See margin) Severity 27.84 Safety policy and training program. regularly and record and track defi- Days per case 33.47 We track health and wellness data ciencies, if any. Our program meets Future issues & risks as well as occupational accidents and the recent modifications made to the Confined space entry is a key * Frequency, severity and duration for on-duty diseases. Bell has a large number of Canada Labour Code Part II. accidents and occupational diseases. Health and Safety risk factor because local Health & Safety Committees Frequency = (number of LWC / EQE) × 100 EMPLOYEE ASSISTANCE PROGRAM of Bell Canada’s 65,000 manholes. for local issues and corporate Health Severity = (number of days lost / EQE) × 100 Bell’s Employee Assistance Program We mitigate this with regular risk and Safety Committees for company- LWC = Lost Work Cases: the number of (EAP) is a free, confidential, voluntary assessments, mandatory training, new on-duty accident and occupational wide issues. short-term counselling service, refresher courses, and access to site- disease cases. This excludes relapses. MEASURES FOR FIELD PERSONNEL available to all employees and family specific information. EQE = Equivalent Employees: the members, 24 hours a day, 7 days a equivalent number of full time employees. Over the years, Bell has implemented On any given day, Bell has more than specific practices to ensure the health week. The program offers support 6,700 company vehicles on the road. and safety of field personnel involved to employees dealing with stress, We have processes and procedures in Health and safety training* in the installation, operation, and grief, addictions, marital problems or place to address the safety of employ- emotional difficulties. It also provides $ maintenance of masts, base stations, ees who drive company vehicles. financial planning, legal consultation, 2004 358,000 laying of cables, and other work related duties. These include: formal childcare and eldercare information Protection from falls is another risk 2003 274,000 risk assessments, written practices, services and other services. factor which we address through 2002 250,000 control measures, personal protective training, procedures work, methods, OFFICE ERGONOMICS and fall protection devices. * Direct investment by Bell Canada equipment, training and verification With more than 75% of our employ- wireline group in development of health as well as supervision. ees working regularly at a computer & safety training material. Includes Goals workstation, ergonomic issues are a development costs only, not roll-out and We also have policies and procedures > Maintain best in class rates for attendance costs. top priority. In 2004, Bell standard- in place to manage industry-related absenteeism and accidents health and safety issues including ized its furniture ergonomics, and working at heights, electric shock, launched internal training and aware- > Continue to reinforce mitigation * Direct Cost of all absences exposure to electromagnetic fields ness initiatives on the subject. of identified risks and gaps

EMF TM ( s) and radio frequency fields, WELLNESS CHECKPOINT > In 2005, Bell will develop and 2004 4.38% of payroll and exposure to hazardous chemicals. & BALANCING ACT implement an internal program These include: risk assessment These online educational tools to meet the requirements of the * Cost of all absences as a percentage of procedures, written practices, control payroll for incidental, STD, LTD, and were developed by Bell to help proposed federal prevention program Workers Comp. Incidental Absence measures, personal protective equip- employees assess and monitor their legislation. We will continue to deal includes sickness and off-duty accidents ment, training and validation as well with absences of seven consecutive well-being. They provide helpful with any gaps as they are identified. calendar days or less. STD (Short Term as supervision. hints and resources on how to Disability) includes sickness and off-duty improve health and wellness and accidents with absences greater than seven ACCIDENT PREVENTION PROCESS consecutive calendar days. LTD (Long This process is designed to ensure stress-management skills. Term Disability) occurs after short term all our employees have the necessary disability expires provided that the person HEALTH AND SAFETY TRAINING is totally disabled. training and supervision to work Bell offers and tracks courses on a safely. Bell actively monitors and number of Health and Safety issues. records health and safety training, as well as supervision and observation of work practices.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – People section > www.bce.ca/en/responsibility/people/employees www.bce.ca/en/responsibility/people/employees/healthsafety Employees > Diversity Our workplace policies and programs seek to create an open, honest, respectful workplace, where people’s differences make all the difference. We value the contributions of all employees in making Bell a good place to work.

Bell Canada* 2004 Programs & practices Performance > Bell Canada was represented at the workforce composition DIVERSITY / EMPLOYMENT EQUITY SENIOR MANAGEMENT following recruiting events in 2004: Group WC (%) EA (%) Our belief is that having a diverse Approximately 13.3% of people – Abilities (Richmond Hill, Women 48.5 40.4 workforce that is representative of our promoted to or within senior man- Ontario) Men 51.5 59.7 customers makes good business sense, agement positions in Bell Canada’s – Jobs, Vision, Success (Toronto, PWD 1.5 3.3 enabling us to gain better insight wireline business in 2004 were Ontario) Aboriginals 0.6 0.7 into our customers and for them to women, compared to 45% in 2003. – University of Alberta (Edmonton, conduct business with us. A diverse Alberta) MVM 8.3 17.2 In 2004 and 2003, two out of fifteen workforce, in which culture, ethnic- directors on BCE’s Board of Directors * Includes wireline business only ity, gender, age, religion, disability, Future issues and risks were women compared to two out of WC = workforce composition sexual orientation, education and Prevailing business conditions have thirteen in 2002. EA = external availability experience are valued, also enables us had an effect on our ability to influ- PWD = persons with disabilities MVM = members of visible minorities to develop more meaningful working DIVERSITY INITIATIVES ence quantitative EE results through relationships with each other. > EE targets were embedded in external hiring. The net growth in Bell Canada’s and Bell Mobility’s Bell’s workforce over the last few Our diversity policies encompass 2005 Business Plan. years has been minimal. In 2004, Senior managers human rights, reasonable accom- > Bell Canada launched an EE web for example, there was a net increase modation, respect in the workplace, application that will enable better of only 218 employees over 2003. Women discrimination, harassment, sexual diversity-related information gather- Employees who left under Bell’s 2004 25.0% harassment and workplace violence. ing (e.g., religions, ethnicity and departure program are not included 2003 22.5% Employment Equity (EE) is an impor- nature of disabilities) and will help in this figure. 2002 22.5% tant aspect of Bell’s diversity strategy. business unit leaders monitor and Focusing on the four designated track their EE progress. Goals Aboriginal peoples groups under the federal Employment > Bell Canada continued work > Hiring targets in growth areas at 2004 0.8% Equity Act – women, visible minori- with the Canadian Human Rights Bell Canada and Bell Mobility. 2003 0.0% ties, aboriginal peoples and persons Commission on a routine compliance > 80% employee participation in the 2002 0.0% with disabilities – Bell complies with audit to identify and address EE employment equity self-identification EE requirements aimed at removing issues, the findings of which will be questionnaire. Persons with disabilities employment-related barriers in addressed by Bell’s EE plan in the > 50% of managers with staff to 2004 3.3% recruiting, retaining and promoting 2005-2008 period. attend diversity training throughout 2003 1.7% members of the designated groups. > Bell Canada continued to promote Bell Canada. 2002 0.8% diversity in the company through A variety of programs are in place various activities, including the to further advance the goals of Members of visible minorities creation of a multi-cultural calendar employment equity and diversity 2004 3.3% and document on religions in Canada across Bell Canada, including a dedi- which were posted on its EE website. 2003 1.7% cated diversity intranet site to raise > We partnered with the following 2002 3.3% employee awareness. organizations in 2004 to increase recruitment of designated groups and improve our diversity profile: – L’Étape and Agence montréalaise pour l’emploi (AMPE) in Montréal; and – Career Bridge and disABILITY Employment Services in Toronto.

Additional information and resources 44 BCE’s Comprehensive 2004 Corporate Responsibility Report – People section > www.bce.ca/en/responsibility/people/employees/diversity Employees > Training & development Life-long learning is a way of life at BCE. Our award-winning training and development programs are supported by the latest technology and encourage employees to play a proactive role in planning and managing their careers at Bell and afterward.

Training program Programs & practices growing@bell: A Web-based career > We expanded leadership training % of registrations in 2004 ONGOING LEARNING management tutorial. by achieving higher enrolments in our Leadership in Action and % Career Development Centre: a central, Mentor Match is our online Leadership Essentials programs. General Business Skills 29 bilingual facility for online learning mentoring program that matches > 3,674 employees moved across Telecom/Technology 38 and career development. Available protégés to an appropriate mentor business units to embrace new Computer Skills 14 anywhere, anytime, the service offers in the organization. Health & Safety 3 one-stop access to several BCE challenges. Over 2,300 promotions Project Management 4 e-learning portals and programs, ENVIRONMENTAL TRAINING took place. Other Courses 12 such as Click & Learn. Specialized environmental training is provided by our Environmental Goals Click & Learn: offers more than Services Group to employees in opera- > Continue to emphasize the acquisi- 400 online learning solutions for tions groups either face-to-face or via tion of IP skills across the company. employee development. an online application. Our objective > Increase face-to-face environ- Virtual Leadership Centre is an is to train new employees within their mental training to approximately innovative portal to help employees first six months on the job. 500 employees and provide online identify best-in-class practices and environmental training to approxi- become self-sufficient continuous Performance mately 1,600 employees. learners. It focuses on such things > In 2004, we invested more than > Continue to offer formal train- as change management, innovation, $32.5 million in training and ing on change management to coaching, and executive development. development, up from $27.8 million Bell Canada leaders. Since its launch in 2003, the portal in 2003, with a primary focus on > Maintain current leading-edge has received over 700,000 hits by Internet Protocol (IP) training. career planning programs and add over 20,000 employees. > 787 employees received special- new ones. ized environmental training. Bell > Continued emphasis on building CONTINUED EMPLOYABILITY implemented a new web-based envi- leadership capacity through targeted Bell People First is our program to ronmental training tool that allows programs for executives, front-line fill vacancies with qualified internal employees to customize training and mid- to senior-level leaders. candidates before hiring externally, according to their job requirements > Intensify communication and thereby supporting professional or regulatory obligations. leadership coaching for targeted growth and development through > We launched an Internet Protocol executives and next generation talent. career mobility. (IP) training series to help reskill our Expand Mentor Match, our online jobs@bell: A self-serve career portal workforce to better respond to the mentoring program. housed on Bell’s intranet and acces- requirements of an IP world. sible to employees across Bell Canada. > 41% of Bell Canada course content Recognition Employees can search for jobs, was delivered online. Bell’s Virtual Leadership Centre apply directly online and use online > 11,925 Bell Canada employees won a Brandon Hall Gold Award résumé creation and interview registered for a total of 35,363 online for excellence in learning for a coaching tools. courses through Click & Learn. second consecutive year, a North American award recognizing out- standing learning throughout the Training program e-learning industry. % of registrations in 2004 Bell People First was recognized as a best recruiting practice by the Classroom 57% Corporate Leadership Council, a U.S.-based organization. Online 41%

Other (virtual classes, books) 2%

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – People section > www.bce.ca/en/responsibility/people/employees/development Community > Investments We believe that strong, healthy, connected communities accelerate innovation and growth. That’s why we focus our investments on initiatives that encourage community economic development and programs that benefit children and youth. And why we support aboriginal communities through sponsorships and improved access to telecommunications services. Our employees believe this, too. We encourage their generosity, in many cases matching contributions and supporting volunteer work with recognition grants and other programs.

Bell Canada employee Programs & practices > Imagine Canada which encourages Subsidiary Northwestel has partnered giving and fundraising for “CONNECTED TO COMMUNITIES” more Canadian companies to play an with Coral Harbour and Cape Dorset United Way / Centraide During 2004, we set out to revise active role in the community and to in Nunavut, Fort McPherson and $ millions our community investment policy donate a minimum of 1% of their Deline in the Northwest Territories 2004 0.9* with a goal to narrow our focus and pre-tax profits to charity. and Wonowon in northern B.C. to bring Sympatico dial-up service 2003 1.2 deepen our commitment. The result YOUTH to these communities. Through a 2002 0.6 is our board-approved “Connected to We support youth enrichment, partnership with Smith’s Landing Communities” (C2C) social invest- children’s hospitals and cyber-safety * Employees of BCE corporate office and First Nation, Northwestel is ment program. The program’s goal through select programs that make BCE Corporate Services gave an additional is to focus on projects that encourage investing in the infrastructure $153,000 in 2004. a difference in the lives of children. economic development and the needed to serve the community of strengthening of social foundations Through partnerships with Fort Fitzgerald, Alberta. organizations such as Kids Help at the community level, with an In 2004, we partnered with Industry Bell Canada employee Phone, True Sport Foundation, emphasis on initiatives that benefit Canada’s broadband pilot project and retiree giving to Junior Achievement, Allô Prof children and youth. (BRAND program) to bring high- charities other than and Computers for Schools, we speed Sympatico service to six Yukon United Way / Centraide Through C2C, our approach to com- help Canadian children overcome communities. We also partnered with munity investments goes beyond just difficulties, build self-esteem, play, BRAND and Pwi-di-goo-zing Ne-yaa- Donations being a benefactor. We see ourselves learn and grow in new ways. zhing Advisory Services to help deliver $ millions as a partner, cutting through silos Our cyber-safety investments address broadband service to 10 First Nation 2004 1.5 and across traditional boundaries the alarming increase in the amount communities in the Fort Frances area 2003 1.3 to find solutions. of sexual exploitation of kids on of northwestern Ontario. 2002 1.0 COMMUNITY ECONOMIC the Internet. We’re working with Through Télébec and NorthernTel, DEVELOPMENT police, industry, government and Bell Canada subsidiary Bell Nordiq Volunteer work We seek partners who share our interest groups to find solutions. The Group Inc. serves a host of regional in thousands of hours values, track their results, and have initiatives we support help educate communities in Québec and Northern 2004 227 a positive impact on communities. children and parents, and promote Ontario. Communities in this vast 2003 218 Examples include: information sharing in order to shut territory are connected to the world 2002 277 down offensive sites and help put > The Bell Community Economic via an advanced telecommunications sexual predators behind bars. Development Fund: our $1 million network. Representatives from commitment was matched by the ABORIGINAL PEOPLES the various communities in its J.W. McConnell Family foundation Our support for aboriginal com- territory — notably the Cree nation — and Carleton University’s CEDTAP munities includes an innovative are regularly consulted to determine (Community Economic Development partnership with the First Nations what they need in terms of commu- Technical Assistance Program) to Buying Group, participation on nications solutions. foster community economic develop- the Conference Board of Canada This has led to many community ment in up to 100 communities in Aboriginal Relations Committee, development projects. For instance, Alberta, British Columbia, Ontario leveraging the federal government new cellular networks now connect and Québec. Broadband Rural and Northern the communities of Waswanipi, Mis- Development (BRAND) program to > Altruvest Charitable Services and tissini, and Nemaska and Télébec will build broadband capacity in northern its BoardMatch program which offers be connecting Ouje-Bougoumou and First Nations communities and a performance improvement solutions Chisasibi in spring 2005. In addition, variety of youth-focused sport and to prospective board members and high-speed Internet services are now cultural sponsorships. charities at little or no cost. available through Télébec services in We work closely with aboriginal Mistissini and Eastmain. In spring communities in Bell Canada’s markets 2005, we will also connect Nemaska, to help improve access to telecom- Waskaganish, and Waswanipi. 46 munications services. Through sponsorships and other that provide direct financial support That’s why we’re increasing our com- funding, we support a variety of to the community-based sports munity investment commitment from aboriginal initiatives focused on groups with which they are involved. $18 million in 2004 to $26 million economic development, youth, in 2007. MEASURING SUCCESS health and culture. To help ensure that our investments Bell has joined eleven other leading ENGAGED EMPLOYEES are fruitful, we establish measurable Canadian companies in rising to We encourage employees and retirees targets and closely monitor results. the Leadership Challenge. Together, to participate in the sustainable devel- We ask our program partners to we have committed to supporting opment of their communities. We provide interim reports on impact, Imagine Canada and working to match employee and retiree contribu- reach, relevance and overall success. increase the contribution of business tions of $100 to $3,000 to United Our Community Investment group to community building in Canada. Way and to eligible Canadian post- regularly reports to Bell Canada’s secondary educational institutions. Corporate Governance committee Recognition Through our volunteer grant pro- on the performance of the company’s > 2004 Imagine New Spirit of gram, we provide funding to eligible community investments. Community Partnership Award – organizations that our employees and recognizing the community benefits retirees support through volunteer Goals that ensue as a result of partnership work. Our Community Sport Volun- Strong, connected communities between private sector and registered teer Grant Program recognizes the go hand in hand with economic charitable organizations. Bell sports-focused volunteer work of our expansion, creativity and innovation. partnered with Altruvest to support employees and retirees through grants their BoardMatch program that helps voluntary boards find qualified board members. Bell Canada donations and community sponsorships > Burlington Mayor’s Community $ millions Service Award – in recognition of our Sector 2004 2003 2002** overall contribution to the city. Youth and Education 7.6**** 5.2 1.6 United Way / Centraide 1.6 1.5 1.4 > Oakville Chamber of Commerce Cor- Community Development*** 0.9 4.0 4.6 porate Community Citizen of the Year Health 3.6 1.8 1.2 Award – for a company with over Employee programs 50 employees in recognition of our (company portion only) 1.7 1.4 1.4 ongoing support of the community. Other 2.7 2.0 1.1 > United Way Thanks a Million Total 18.1* 15.9 11.3 Award – for organizations that

* BCE corporate office donated an additional $845,000 to registered charities in 2004. contribute over $1 million annually ** Some 2002 numbers were not previously reported. to United Way / Centraide across *** 2004 definition of community development is narrower than 2003 and 2002, reflecting changes made by Imagine Canada. Canada through combined corporate, **** Includes $2.8 million in-kind contribution to Computers for Schools program. employee and retiree giving.

Additional information and resources BCE’s Comprehensive 2004 Corporate Responsibility Report – Community investments section > www.bce.ca/en/responsibility/people/community/investments Bell community investments > www.bell.ca/community Bell employee involvement > www.bell.ca/employeegiving Community investments of BCE subsidiaries other than Bell Canada Northwestel > www.nwtel.ca/community and www.nwtel.ca/community/commInvest.jsp Aliant > www.aliant.ca/english/about/aic.shtml Télébec > www.telebec.com Imagine Canada > www.imaginecanada.ca Bell Nordiq > www.bellnordiq.ca Suppliers Bell Canada has an obligation to its stakeholders to obtain the maximum value for each dollar spent. We seek quality products and services through mutually beneficial and ethical relationships with suppliers who respect the environment and demonstrate integrity in the market place.

In 2004: Programs & practices articulated vision of environmental > Some 30 Bell supply chain manag- Bell spent $4.7 billion on SUPPLIER SOURCING consciousness and protection. ers in 2004 attended Everyday Kyoto lunch-and-learn sessions in Toronto goods and services and had As a general rule, a qualified supplier Bell’s Procurement group identifies and Montréal. 4,452 active suppliers: must have a sound business reputa- green-friendly suppliers through tion in the market place and a proven the regular use of its environmental > Since 1997, a total of 502 repre- > 2,295 in Ontario record of good quality and service to questionnaire. All new suppliers are sentatives from 62 supplier companies > 1,265 in Québec support Bell’s requirements. Other asked to complete the questionnaire have received training on Bell’s > 523 in the rest of Canada key attributes which a Bell supplier prior to contract negotiations and environmental evaluation program > 369 in other countries must possess include: survey results are put into a database. and on the diligent management > meet established quality When necessary, on-site audits are of hazardous and non-hazardous certification criteria conducted of key suppliers to verify residual materials. their responses. > ability to transact business > Environmental questionnaires were electronically Bell uses an environmental risk returned by all 25 new suppliers to > capacity to hold and manage evaluation tool for Bell suppliers Bell. We ensured that environmental inventory offsite who provide services related to the considerations were part of contract transportation, handling, recycling negotiations. Survey results for > willingness to engage in or elimination of residual materials. 200 suppliers or their divisions are continuous improvement now included in our database. We TRAINING strive to have questionnaire informa- > demonstrate environmental We provide training for suppliers tion updated every three years. responsibility and our supply chain managers on We perform a Supplier Quality Bell’s environmental evaluation > The GeSI Supply Chain Working Management (SQM) audit as part of program and on the diligent manage- Group established a framework and the selection process. When more ment of hazardous and non-hazardous collected information about corporate than one proposal meets all of Bell’s residual materials. responsibility tools currently used by various companies. criteria and when all other things are GESI SUPPLY CHAIN WORKING GROUP equal, suppliers who contribute to the Bell is part of the Supply Chain > On-site audits were conducted of Canadian economy through research Working Group of the Global three key suppliers and one environ- and development and/or manufactur- e-Sustainability Initiative (GeSI), mental risk evaluation was conducted ing will be given preference. a voluntary industry initiative in in 2004. Once the contract is awarded, ongo- partnership with the United Nations ing supplier performance is monitored Environment Program and the Goals through the Bell Canada Supplier International Telecommunications > Continue to ensure that all Performance Management Program Union. The working group will new Bell suppliers complete an (SPMP). Suppliers are awarded a score develop information tools, practices, environmental questionnaire and in key measurement indicators, such or systems to assist each member that environmental considerations as the use of electronic commerce and company’s supply chain to deal are part of contract negotiations. on-time delivery. effectively with corporate social responsibility issues. > Pursue our work with the GeSI Sourcing and the Supply Chain Working Group to Performance build a supplier self-assessment ques- environment tionnaire that addresses CSR issues. In support of the company’s > In 2004, our procurement environmental policy, we require organization continued to negotiate that suppliers demonstrate strong significant cost reductions in the environmental stewardship in the acquisition of goods and services performance of their operations, while ensuring that we continued to products and services and have an deal with suppliers who respected the environment.

Additional information and resources 48 BCE’s Comprehensive 2004 Corporate Responsibility Report – People section > www.bce.ca/en/responsibility/people/suppliers Canada’s communications leader Canada’s largest communications company, BCE Inc. (Bell Canada Enterprises) employs 62,000 people and enables 27 million customer connections. Through these connections, we offer a broader range of services than anyone else in Canada, including wireline and wireless communications services, Internet access, data and video services. From our roots in Central Canada we have expanded to the farthest reaches of the country, operating in Atlantic, western and northern Canada, connecting people in thousands of cities, towns and remote communities. This year Bell Canada celebrates its 125th anniversary as a nation builder. When 17.5% minimum the country was still young, Bell pioneered Cover printed on FSC-certified Domtar Opaque – Plainfield®, a paper in telecommunications in Canada, building which at least 17.5% of the fibre comes from well-managed forests, as independently a telephone infrastructure that brought certified by SmartWood according to the rules of the Forest Stewardship Council. distant communities closer together. It FSC-certified Domtar Opaque – Plainfield stimulated commerce, enabled political and also contains 20% post-consumer waste paper SW-COC-681. social unity. Today, our fibre-optic, wireline, wireless and satellite infrastructure is among Interior printed on Rolland Enviro 100, a paper the world’s most advanced and a key driver made from 100% post-consumer recycled fibre of productivity growth in Canada. and de-inked through a chlorine-free process. This report was printed with vegetable-based As Canada’s leading communications ink and is recyclable. This document was printed by company, we have a responsibility to all Transcontinental – Litho Acme, stakeholders, including customers, employees, SW-COC-952. FSC Trademark © 1996 shareholders – indeed, to all Canadians – to Forest Stewardship Council A.C. be a good corporate citizen – economically, environmentally and socially. This report is Cette publication est disponible en français. about how we fulfill that responsibility… Design: www.ardoise.com just think…

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BELL CANADA ENTERPRISES CORPORATE RESPONSIBILITY 2004 REPORT HIGHLIGHTS