Augmented and virtual reality at OTE Group Telecommunications Museum

Sustainability Report 2018 Contents

About this Report 1. OTE Group 2. Responsible Business 3. Employees Message from the Chairman and CEO 1.1 Group Presentation 7 2.1 Stakeholder Dialogue 21 3.1 Human Resources Management 37 Report Profile 1.2 Sustainability Business Model 8 2.2 Enterprise Risk Management 23 3.2 Employment 38 1.3 Performance and Targets 11 2.3 Policies and Management of 24 3.3 Fair Employment Policy Framework and 39 1.4 SRI Indeces & Ratings 16 Regulatory and Compliance Equal Opportunities 1.5 Governance 17 2.4 Human Rights Management 27 3.4 Health and Safety 40 2.5 Responsible Purchasing and Supply 28 3.5 Employee Selection, Attracting and Chain Management Retaining Talented Employees 42 2.6 Security and Data Privacy 31 3.6 Employee Training and Skills Development 43 2.7 Business Continuity 33 3.7 Employee Communication, Engagement 44 2.8 Integrated Management System 34 and Satisfaction 2.9 Awards & Memberships 35

4. Customers 5. Society 6. Climate and Environment 4.1 Connectivity for All 47 5.1 Social Contribution 58 6.1 Environmental Strategy 68 4.2 Products and Services for Sustainability 49 5.2 Digital Skills for All 60 6.2 Energy and Climate Change 71 4.3 Safe and Responsible Use of Technology 52 5.3 Access to Digital Society 62 6.3 Circular Economy 75 4.4 Communication with Customers 53 5.4 Social Programs 64 6.4 Electromagnetic Fields 78 4.5 Customer Service and Satisfaction 55 5.5 Employee Volunteering 66 6.5 Other Environmental Aspects 79 About this Report About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Message from the Chairman and CEO

We live in volatile times, surrounded by change and Acting responsibly, in 2018 OTE Group enhanced its Sustainable growth remains at the core of OTE challenges. Digital technologies broaden human positive contribution to the economy, society and Group's strategy. In 2019, creating equal capabilities, at a pace that could not have been the environment, across all markets of operation. opportunities for access to the new digital age and imagined before. Artificial Intelligence, robotics, protecting the environment are higher than ever on nanoscience, the Internet of Things, are now part of We maintained a strong performance despite our agenda. our day-to-day regimen. Limitless knowledge and pressure from the environment and our competition. data are at our disposal at the touch of a screen. Our sound financials allowed us to continue When it comes to the environment, for the first investing in next-generation networks. With Fiber to time we aim at radically reducing single-use Τhe future will be thrilling- but this technological the Home and 5G as key priorities, we are building plastics in our facilities and stores. We want all our revolution also brings about a number of the path towards a new digital society while employees to become ambassadors for a new challenges to our doorstep. upgrading Greece’s technological infrastructure. lifestyle with less plastic. Facing the opportunities as well as the challenges As a global community, we are called to manage We developed new services and advanced digital of the new digital reality, we all have a voice and a pressing changes in the geopolitical, economic, and tools that make our customers’ lives easier and standpoint. It is our responsibility -as states, technological balancies, and the disruptions they help businesses grow. Through learning initiatives businesses, as citizens- to take action and through cause, such as humanitarian crises, the digital focused on STEM and educational robotics and technology to make this world a better place, for divide and climate change. others aimed at reducing digital illiteracy among today and for the future generations. senior citizens, we are contributing towards Especially in relation to current environmental providing people of all ages with access to the Michael Tsamaz issues, our planet is in jeopardy. Climate change benefits of digital technology. Chairman and CEO of OTE Group and marine pollution from plastic waste originate from human activity. No country, no company or We have intensified our contribution to society, citizen, regardless of their power, is sheltered from supporting vulnerable groups, notably children, the global environmental crisis. New generations through educational initiatives, assistance to local are more exposed to this threat as they will be associations, promotion of entrepreneurship, culture severely affected by the impact of pollution and and sports. climate change. Our people are the driving force behind our If we wish to bequeath to our children a world strategy. With passion, commitment, and better for everyone, we must all take action. We professionalism, everyone at OTE Group supports must devise ways to meet our needs without our vision for a better world. In 2018, we devised jeopardising the future of coming generations. educational programs and developed new working This is what sustainable development is all about. models promoting flexibility, digital skills and creativity, providing a modern, enjoyable work Sustainability is key to OTE Group's business environment. strategy. It guides the way we run our operations, from the products we develop for our customers to At the same time, we pursued our strategic our transparency in dealing with our stakeholders, environment efforts, aimed at improving energy from optimizing our financial performance to our efficiency, reducing direct and indirect greenhouse contribution to society and our initiatives to protect gas emissions, and recycling waste caused by the the environment. Group's activities.

Sustainability Report 2018 4 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Report Profile The index tables for each of these standards are Report Feedback provided in the Appendix. The 2018 OTE Group Sustainability Report The Report is published exclusively on-line, in In addition, the companies took into account: refers to the Group’s companies activities. electronic form. Any opinion and comments regarding the Sustainability Report are welcome. Please send • The vision and the Group’s strategy Report Scope and Boundary your feedback to the e-mail address: • The outcomes of the stakeholders dialogue otegroup.cr@ote.gr. • The most significant Sustainability issues that This Sustainability Report covers the period from resulted from the Materiality Analysis 1st January to 31st December, 2018 (unless • The stakeholders’ feedback for the 2017 otherwise stated) and is addressed to all OTE Sustainability Report for OTE Group companies. Group stakeholder groups. The Sustainability Report is subject to external This is the second OTE Group Sustainability Report, assurance, covering the Principles of Standard which presents consolidated data for the Group. AA1000 and specific performance indicators of Information has been collected from the following OTE Group companies (see Independent Assurance companies that contribute around 99% of OTE Report). Group revenues: Report Data • OTE, COSMOTE, GERMANOS, OTE Globe, OTEAcademy and COSMOTE e-Value (all with The data in the Report derive from the OTE Group’s headquarters in Greece), reporting systems and indicatively include: • Telekom Romania Communications and Telekom aggregated financial and personnel data, aggregated Romania Mobile Communications (with data on customer service and summary data on headquarters in Romania), regulatory actions. They also include environmental data that are calculated according to internationally On 16th January 2019, OTE announced the signing accepted methods, based on information provided of an agreement to sell its entire stake in Telekom by the Operational Divisions of the companies. The Albania. On 8th of May, OTE announced the collection and presentation of the data were undergone completion of the sale. As a result, its operations by following the definitions and parameters of the for the year 2018, have been treated as discontin- GRI guidelines, as well as internal guidelines. ued operations in the Annual Financial Report 2018 Further information on measurement techniques and the OTE Group Sustainability Report 2018. and methods for the assessment of data is included in the Report. Report Content Definition No major re-statement of information, provided in The content of the Report is defined according to earlier reports, has been included. the following principles, guidelines and directives: Compilation in Accordance with GRI • The Global Reporting Initiative’s Sustainability Guidelines Reporting Guidelines, GRI Standards • The AccountAbility AA1000 Principles on The 2018 Sustainability Report has been written in Inclusivity, Materiality, Responsiveness and accordance with the core option of GRI Standards. Impact Full information on the fulfillment of GRI Standards • The United Nation’s Global Compact Principles requirements is provided in the Global Reporting • The criteria of the Greek Sustainability Code Initiative Content Index.

Sustainability Report 2018 5

About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

1.1 Group Presentation ΟΤΕ ESTATE is active in the management and OTE SA commercialization of the OTE Group real estate. Greece OTE Group is the largest technology company in Greece. It offers the full range of OTEACADEMY provides innovative educational services, contributing to the development of human telecommunications services, from fixed-line and 100% resources. OTE Globe mobile telephony, broadband services, to pay Greece television and integrated ICT solutions. OTESAT_MARITEL is a leader in the provision of 100% 54% 100% satellite telecommunications services to the Greek OTEestate In addition to its core telecommunications activities, COSMOTE Telekom Greece the Group in Greece is also involved in maritime shipping industry and one of the faster growing Greece Romania communications, real-estate and professional providers of these services to the global shipping 94% OTESat-Maritel training. COSMOTE is the unified commercial brand market. Greece for all the products and services of the Group and Romania its key message is “a better world, for all”. Telekom 30% Other 99,97% Telekom Romania is a dynamic brand that provides Albania* In Romania, the Group operates in the *Asset held for sale a complete and innovative array of fixed and telecommunications market, where it offers mobile telecommunication services, specifically Fixed-line telephony fixed-line and mobile communications, as well as 70% Telekom customized for a large community base of customers. television services. Romania Mobile Mobile telephony It has been active in the Romanian market since Greece 2014, aſter the joint rebranding of Romtelecom and Other Operations COSMOTE Romania. OTE S.A. is the parent company of the OTE Group and the main fixed telephony operator in Greece. Approximately 10 million consolidated services in fixed and mobile telephony are provided to its It offers broadband, ICT services, fixed-line telephony, OTE Group Ownership 31.12.2018 television, data and leased lines. customers. COSMOTE S.A., a subsidiary of OTE, is the leading Telekom Romania’s innovative solutions open a mobile service provider in Greece. wide world of opportunities enabling its customers to share their best experiences. Its mission is to 4% EFKA (refers only to the OTE Group also established COSMOTE as the single enrich people’s lives by providing them with fixed transfer of 4% from the Hellenic State) commercial brand for all fixed, mobile, internet and and mobile integrated services, state-of-the-art 4G 2% Treasure Shares television products in the Greek market, so that all technologies and fiber optic connections. A new customers can enjoy an integrated communication entertainment experience has been introduced to 1% Hellenic State and entertainment world with ease, speed and the services’ users, allowing access to exclusive and simplicity. quality content and advanced interactive features on all devices. The Group’s branch network in Greece comprises of 299 GERMANOS and 133 COSMOTE stores. Details Telekom Romania is a trusted partner for companies, of all the products and services of the Group are providing them with complete communication and available on the COSMOTE website. ICT solutions. Its network connects people and devices in order to ensure a better, safer and simpler 48% Free Float 45% Deutsche Telekom OTEGLOBE operates as a provider of international future. wholesale telecommunications services. It offers a complete portfolio of services for transfer, voice, Telekom Romania is a brand associated with mobile and corporate services to other international Deutsche Telekom, one of the world’s leading providers and multinationals. integrated telecommunications companies.

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1.2 Sustainability Business Model Society OTE Group Sustainability Policy Contribution to the United Nations’ ΟΤΕ Group contributes to the development of digital OTE Group uses technology and its capabilities Sustainable Development Goals The Groups’ Sustainability Policy, determines to create a better world for all. At the same time, skills of people of all ages, providing equal access to it enhances its sustainable entrepreneurship, new technologies for all. It conducts various social the sustainability strategy and action plan OTE Group companies participate in the UN while, contributing to the economy, the society contribution and corporate volunteering initiatives, of OTE and its subsidiaries, taking into Global Compact, a United Nations’ initiative and the environment. aiming to support vulnerable social groups, children, account the existing social and economic on sustainable development. education, local communities, entrepreneurship, conditions, as well as the cultural priorities Sustainability is an integral component of OTE culture and sports. and challenges. In September 2015, United Nations adopted the 17 Sustainable Development Goals Group’s business strategy and its Sustainability Climate and Environment The Policy identifies responsibilities, tasks (SDGs). OTE Group has analyzed its impact Principles are integrated into its operation. and forms of cooperation between OTE’s The Group aims for financial growth in accordance in accordance with the SDGs throughout its business units and its subsidiaries, Responsible Business with environmental responsibility in all aspects of value chain and has identified 7 SDGS that regarding sustainability issues. its activities. Its environmental strategy focuses on it mostly contributes to. These priority SDGs OTE Group operates responsibly throughout its value addressing climate change and the continuous were linked to the Group’s sustainability chain, aiming to stand as an example. In this integration of the circular economy principles into strategic pillars and actions. OTE Group Code of Human Rights and framework, it applies and develops procedures, its activities. The Group sets targets on the Social Principles policies, tools, systems and mechanisms to manage development and provision of products and SDGs with Significant Contribution issues regarding risks and compliance, human rights, by OTE Group services, on minimizing the environmental impact The Code of Human Rights and Social Principles business continuity, security and data privacy, as of its activities, on allowing the enhancement of well as responsible procurement and supply chain. of the OTE Group defines the behavioral rules productivity and protection of the environment in in relation to human and social rights that all other sectors of the economy, and on informing and Employees Group employees, investors and suppliers raising awareness for its stakeholders. must abide by adhere to. It sets the rules on ΟΤΕ Group provides a sustainable, efficient and Business model matters such as the respect of diversity in technologically smarter workplace, which cultivates the workforce, the right to freedom of a growth mindset for its people, recognizes high OTE Group’s business model aims to create value association and collective bargaining, the performance and gives them equal opportunities to for its shareholders, its customers, the society, its prohibition of all kinds of forced labor as well grow. At the same time, OTE Group invests in digital employees and the environment. as health in the workforce. learning tools and focuses on digital skills development, while supporting cross functional To this end, the Group continuously improves its collaboration and communication. OTE Group's goal products and services, offers new job opportunities, is to be the employer of choice for this new digital cooperates with a large number of suppliers, pays era, both for its existing employees as well as for taxes to the state and contributes (financially and young talents. in kind) to society. In addition, it provides equal opportunities, facilitates access of vulnerable social Customers groups to the digital world and takes measures to reduce its environmental footprint. At the same The Group is the largest telecommunications provider time, its products and services help customers in the Greek market. It connects people, in a world reduce their environmental impact. of unlimited digital possibilities, aiming to increase everyone’s quality of life. In this context, it develops The Group’s efficient operation and high innovative products and services, which contribute competitiveness level lead to positive economic to sustainable development, with environmental results which allows the Group to reinvest in the and social benefits for all. business and to create more value for all its stakeholders in the short, medium and long-term.

Sustainability Report 2018 8 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Sunstailability Business Model

OTE Group Governance

Financial Capital Financial Capital € 178.4 mil. € 2,574.7 mil. € 713.9 mil. Use of financial resources for A better world for all. Dividend paid, taxes, € 171.1 mil. income tax total equity adjusted net debt achieving the best financial We contribute to the economy, the society and the EBITDA dividends paid paid performance Vision environment

Human Capital Human Capital 18,630 12,144 Information dissemination training and Technological Best Revenue Lead in Core High employees; skills engagement and € 563.7 mil. employeess* employees trained* development of employees, benefits to Superiority Customer Transforma- Business satisfaction levels employee wages and benefits employees Experience tion

Productive Capital Digitalization, Simplification and Cost Optimization Productive Capital € 6,699.9 mil. € 706.4 mil. Investment in networks and physical Products and services of high- quality € 3,798.7 mil. total assets adjusted CAPEX assets to improve and upgrade Strategy Pillars Growth Mindset and Culture fixed and mobile telephony, broadband total revenues services offered and paid TV service

Intellectual Capital Intellectual Capital Investment in research and Development and marketing € 800,000 Environment- 2,500,000 own capital in research projects* development of innovative products Customer Employees Society of innovative products and services active users monthly of OTE Group apps* Climate and services

Sustainability Responsible Business Natural Capital Natural Capital 351,938 t CO eq 693 GWh 75 GWh 2 17.1 t Use of natural resources including Reduction of GHG emissions, direct & indirect telephone devices electricity vehicle fleet energy, for operations increased energy efficiency waste GHG emissions and accessories consumption* consumption * management from energy recycled* 1. Customer delight and simplicity drive our action consumption* Respect and integrity guide our behavior Social Capital 2. Social Capital 7,233 1,4 mil. € 4 mil. In dialogue with the stakeholders, 3. Team together - Team apart Support of vulnerable social groups, 201 social employees’ participations in 4. Best place to perform and grow social beneficiaries of corporate responsibility support of society Guiding improved social contribution and contribution* Principles 5. I am a member of OTE Group - You can count on me initiatives the OTE Group initiatives* customer experience programs*

Inputs Value Creation Outputs

*Values covering OTE, COSMOTE, GERMANOS, OTE Globe, OTEAcademy, COSMOTE e-value, Telekom Romania Communications and Telekom Romania Mobile Communications.

Sustainability Report 2018 9 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Digital Transformation Employees Greece: Significant Data 2018 Romania: Significant Data 2018 OTE Group aspires to be the leading provider of Simplification and improvement of internal • COSMOTE One App and What’s up App • 100% increase in Telekom Mobile apps digital services in the countries it operates in and operations, the way it works, development of digital sales and service functionality has been users, with namely >200,000 users at the same time, to become a model company on skills and encouragement of creativity and enhanced and extended to all Fixed, Mobile, per calendar month a European level for the transition to the new innovation: FMC and TV services. digital era. • Digital tools accessible from any device, • 15% of the smartphone customers • active monthly Group mobile anywhere to facilitate work and >2,300,000 manage their accounts through To achieve this goal, OTE Group, through its Digital app users, ~65% of the smartphone collaboration online Telekom Mobile apps Transformation program, invests in enhancing the customers (from 1,500K active users in • Simplification, unification and automation of digital experience of its Customers, Employees and 2017). • 3 in 60 sales were carried out through Suppliers-Partners, who are now able to perform processes and functions electronic orders and the e-channel tasks in a simpler, faster and more efficient • Creation of unified workflows without 'digital • New electronic Bill digital and omni-channel manner, by utilizing modern digital capabilities. gaps' to reduce paper and bureaucracy at experience launched with interactive work capabilities and a user-friendly interface. • Digital skills and culture, growth and Customers • ~1,800,000 customers are receiving their innovation mindset The digital experience of customers bills electronically (from 1,500K in 2017), at the center: Partners / Suppliers thus saving 39 million printed paper sheets and reducing post office use. • “Everything we do for our customers, they Simplification of transactions with partners and • >12% uptake of electronic payments for should be able to do for themselves via our suppliers to save time and cost: the Group’s fixed, mobile and TV services digital touchpoints” taking place through the Group’s digital • Each customer has a Mobile app and • Simplification of procedures and reduction touch points. Digital ID to access and manage all his/her of transaction time accounts and services with OTE Group • Exchange of digital documents and receipts to • 14 million printed paper sheets were saved • Offer of unique experience through digital save time and cost due to paperless order capture at shops. and physical touchpoints (omnichannel) • Development of digital communication • ~ 5,000 employees, in a period of 2 • Personalized content, tailored to the needs channels and transactions with existing and months, have downloaded the new and wishes of customers future partners mynet.go mobile app, while over 900 • Provision of digital products and services employees use it on a daily basis. The app that change the form of communication, enables unified access to a variety of entertainment and work corporate systems through a simple mobile interface. Employees can access information and complete tasks “on-the-go” simply and quickly through their mobile phone. • >60% of network alarms handled by an autonomous network operations system - digitalization and automation of network operations through AI and predictive maintenance.

Sustainability Report 2018 10 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

1.3 Performance and Targets Romania remained relatively flat compared to the and in the medium term. Pursuant to the new propose to the Company’s Annual General previous year. shareholder remuneration policy, the extraordinary Assembly of Shareholders, held on 12 June 2019, Transparent performance information General Meeting of Shareholders held on the 15th the distribution of a dividend of € 0.46 per share In 2018, the Group’s adjusted EBITDA increased by enables OTE Group to communicate successes February 2018, approved the share buyback for up outstanding, up from € 0.35 per share distributed 1.7% to € 1,316.8 million. In Greece, adjusted to 10% of the Company’s total paid-up share last year. The corresponding dividend payout, i.e. and future expectations to investors and EBITDA increased by 4.0% reaching € 1,180.5 foster strategic decisions regarding expansion capital for a period of 24 months, beginning on the €220.8 million, is aligned with OTE’s Shareholder million. The adjusted EBITDA margin of 40.9% 15th of February 2018. In 2018, 8,890,960 own Remuneration policy. and efficient operation management. increased by 100 basis points compared to 2017. shares were acquired for the purpose of cancellation In Romania, adjusted EBITDA totaled to € 136.3 within the framework of the Share Repurchase 2018 Financial Performance million, exhibiting a decrease of 14.9%. Program. In addition, prior to the commencement The Group’s reported operating profit, before of the Share Repurchase Program, OTE held Why it matters… financial and investing activities stood at € 495.2 1,320,110 of its own shares. The extraordinary Revenue Contribution 2018 million, compared to € 396.7 million in 2017. The General Meeting of Shareholders, held on the 19th The financial performance of OTE Group is a of December 2018, approved the cancellation of increase in operating profit mainly reflects the 10% 9% Other key priority for management and its improved performance in adjusted EBITDA as well the aforementioned total own shares, i.e. shareholders. The Group provides informa- 10,211,070 shares. Mobile as the sharp drop in Depreciation and Amortization. Romania tion on the economic value generated by its 39% Aſter completion of publicity formalities, as per operation, and the value distributed so that Interest and related expenses stood at € 86.1 Fixed applicable legislation, on February 5, 2019 and the direct value added to the community million, exhibiting a decrease of 38.1%, mainly Greece following notification to the Corporate Actions and stakeholders is better understood. reflecting the lower outstanding debt and the improved borrowing rates. The Group’s income tax Committee of the Athens Exchange, the shares 14% expense stood at € 165.8 million in 2018, which were canceled and delisted from the Athens Fixed The total number of OTE Group employees as increased by 12.3% compared to 2017, depicting Exchange on February 19, 2019, the date on which Romania of the 31st December 2018 is 19,343. In 2018, the impact of the decreasing income tax rate in trading of the aforementioned shares on the OTE Group’s consolidated revenues totaled to Greece on the deferred tax assets of the Group. Athens Exchange has ceased. € 3,798.7 million, while its market capitalization 28% Mobile Greece stood at € 4.7 billion at the end of 2018. Profit for the year from continuing operations In addition, the Board of Directors of OTE will (attributable to owners of the parent company) On a country basis, total revenues in Greece stood at € 256.5 million in 2018, compared to increased by 1.5% to € 2,887.6 million, due to the € 169.3 million recorded in 2017. solid performance in both fixed broadband, which OTE Group Financial Performance (in mil €) benefited from the impressive uptake of fiber In 2018, Adjusted Free Cash Flow stood at € 344.7 services, as well as from mobile operations. million, displaying an increase of 273.9% compared In 2018, mobile service revenues in Greece were to 2017, reflecting increased profitability, lower down 1.6% reflecting the adoption of IFRS 15. interest and income taxes paid, as well as lower CAPEX.

Excluding this factor, mobile service revenues 3,796.9 3,798.7 34,7% posted an increase of 1.3%. Mobile service revenue In early 2018, OTE announced a medium-term growth was driven, for a second consecutive year, 34,1% by the increase in data services, and visitors’ Shareholder Remuneration Policy. Should the roaming. Revenues from wholesale business were economic environment remain stable, the Company also up in Greece, mainly reflecting higher interna- intends to distribute to its shareholders, through a tional transit. combination of dividend and share buyback, the

free cash flow it generates every year, aſter 1,316.8 In Romania, total revenues reached € 933.2 million incorporating consideration for spectrum acquisi- 1,295.1 in 2018, exhibiting a decrease of 4.0% compared tions and one-off items. The split between ordinary FY 2018 FY 2017 to 2017, reflecting the continuing pressure from dividends and share buybacks is targeted at Revenues (mil. €) Adjusted EBITA* (mil. €) Adjusted EBITA* margin (%) retail fixed services. Revenues from mobile in approximately 65% and 35%, respectively, in 2018 *Excluding the impact of costs related to voluntary leave schemes, other restructuring costs and non-recurring litigations

Sustainability Report 2018 11 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Direct economic value in 2018 (in millions €) where… € 1,029 million OTE Group 2018 Taxes and Insurance OTE Group OTE Contributions in Greece

…generated total revenues 3,798.7 1,582.6 operating costs* 2,067.1 697.8

employee wages and benefits 563.7 39% 247.5 Fixed Greece

…distributed dividends paid to 171.1 171.1 company's owners 178.4 85.1 income tax paid 4.0 1.8 social contribution …retained 814.4 379.3

*Excluding employee wages and benefits, Depreciation, Amortization and Impairments.

Key 2018 Financial and Market Figures1

OTE COSMOTE Other Activities Telekom Romania Telekom Romania in Greece Communications Mobile Communications Revenue € 1,582,6 mn € 1,117.6 mn € 855.3 mn € 579.5 mn € 473.0 mn EBITDA € 651.3 mn € 410.8 mn € 73.8 mn € 87.0 mn € 27.9 mn CAPEX investments € 171.4 mn € 26.1 mn € 46.4 mn € 46.4 mn (incl. Spectrum charges) € 345.8 mn Subscribers 2,650,995 7,905,021 2,141,526 4,630,606 fixed telephony mobile telephony voice3 mobile telephony

1,896,336 1,143,303 broadband connections, of which broadband subscribers2 531,334, fiber service2 1,443,032 541,907 TV subscribers COSMOTE TV subscribers  Key financial and market figures are presented for major OTE Group operations  Including VDSL, Vectoring & Super Vectoring  Including Fixed / Mobile convergence

Sustainability Report 2018 12 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Economic Impact Impact on Employment For every €1 originating from OTE Group’s For each employee hired within OTE Group Impact on GDP operational activity in Greece, € 2.7 are With the Group’s headquarters and majority of in Greece, 5.8 additional job positions are added to the country’s GDP. business activities residing in Greece, a country generated. OTE Group’s large capitalization and broad spectrum experiencing high unemployment rates, OTE Group is During 2012-2016, OTE Group’s investments of telecommunications services have a large impact proud to have a large impact on employment The largest overall impact of the Group's activity in amounted, on average, to € 417 million per annum. on the Greek economy. opportunities and the enhancement of local other sectors of the economy are observed in the This resulted in an increase of productivity of all communities’ economic prosperity. sectors of hotels and catering, trade, agriculture and other sectors of the economy, stemming from OTE OTE Group’s annual contribution to Greece’s GDP is consultancy services. € 5.7 billion, i.e. 3.2% of the GDP. More specifically Group’s investments on telecommunication In 2016, the Group’s total impact on employment in the total impact stemming from the Group’s infrastructure. Overall, the impact due to the Greece, taking into consideration the indirect and operation amounts to over € 4.8 billion. OTE Group is increase of productivity amounted to € 0.9 billion induced effects, amounted to 75 thousand job at the forefront of the telecommunications sector in per annum. positions, which corresponds to 1.9% of employment Greece, especially regarding the investment and in Greece. construction of telecommunication infrastructure. It is projected, that for the period 2018-2021, the Group’s activity will enhance the country’s GDP by an average of €1.05 billion per annum.

Impact on GDP Impact on Employment

Direct 1.8 Direct 13

Impact from Impact from Indirect 17.7 Operations Indirect 0.9 Operations

Induced 2.2 Induced 44.2 Types of Impact 75 Types of Impact Impact from Investments 0.9 Total Impact (Thousand job positions FTE )

Total Impact 5.7 0 10 20 30 40 50 60 70 80 (in bil. €. ) 0 654321 Direct Total number of Group employees in Greece. Indirect Total number of job positions created in the Group’s supply chain. Direct Impact generated from the Group’s operational activities. Induced Job positions created through the spending of the Groups employees' Indirect Impacts arising from the transactions across the Group’s supply chain. household income on other services and products such as entertainment, health care, etc. Induced Impact generated due to the spending of OTE Group employees’ household income on other services and products such as entertainment, health care, etc. Total impact Total number of job positions created through the Group's operations, expenditures and investments in Greece. Impact from Impact generated through the Group’s investments on telecommunication investments infrastructure Source: Foundation for Economic and Industrial Research, 2018. OTE Group’s contribution in the Greek Total impact Impact generated through the Group’s activities and investments in Greece economy. The economic analysis was conducted based on 2016 data.

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Contribution to the United Nations’ Sustainable Development Goals: Key 2018 figures

OTE Group companies participate in the UN Global Compact, a United Nations’ initiative on sustainable development. OTE Group has analyzed its impact to the SDGs throughout its value chain and has identified 7 SDGS that it mostly contributes to.

• 10,689 hours of occupational • 26,692 participations of • 59% of energy consumption • 1,839 integrity checks on health inspections employees in training programs ( 818.9 GWh) is covered by suppliers, consultants and • 4.39 hours of training on health • 14.22 hours of training per Guarantees of Origin partners and safety per OTE Group employee € 565,000 awarded • 16.9 GWh of energy conserved • 91% and 78% of OTE Group employee via scholarships programs for • 8.5 kt CO2 eq GHG emissions procurement from domestic • 1,921 hours of psychological university students avoided through energy conservation suppliers in Greece and Romania respectively support consulting services (Greece) • 5,144 students participated in educational robotics • € 2.2 million saved from energy conservation • 31% of the employees with position of • 1,300 employees in Greece participated in & STEM initiatives measures responsibility are women companies’ “Wellness Groups” • 208,446 beneficiaries from OTE Group’s social • 12% improvement of energy consumption per • 100% of employees, working within the 4 largest • 39,100 children are treated annually, by the contribution on education volume of data transferred OTE Group telecom companies, are covered by Trauma Centers created and equipped by OTE collective labor agreements Group in 2018 • 2,500 professionals participated in the “Grow your Business” program

• €2 billion investment plan until • 12% reduction in paper • 6% decrease of total GHG 2022, to offer even higher consumption per employee (↘) emissions ( 368,061 t CO2 eq) speeds and wider coverage in • 7,993 tons of waste generated • 1,469 kt CO2 eq of Scope 3 fixed and mobile telephony • 70 % of total waste generated, GHG emissions (Greece) is recycled, reused or incinerated • 5% improvement of OTE Group • >3 million households and businesses have • 170,000 of end of-life devices were refurbished emissions intensity (93 t CO2 eq/M€ ) access to very high speeds, up to 200Mbps (Greece) • 19% improvement of data traffic emissions (Greece) intensity ( 58 kg CO2 eq/TB ) • 98%/4G and 95%/4G+ population coverage in Greece • 1st 5G trial network in Greece launched by OTE Group, reaching live speeds of over 12 Gbps • € 800,000 given for self-financing of research projects

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2018 Goals 2019 Targets

OTE Group companies set goals to improve their operations, develop programs and actions in order OTE Group Employees OTE – COSMOTE: Enhance the participation to achieve them, monitor their progress, and of professionals and entrepreneurs in communicate their performance. OTE - COSMOTE: e-Bill penetration to 60% OTE Group: Create the future of work with programs for the development of their of customer base (2.34 mil customers) agile teams and lean structures small – medium enterprises and entrepreneurial skills for < 1,000 people. The strategic objectives are approved by the top OTE – COSMOTE: usage of mobile apps by OTE Group: Ensure that our employees are >1 million social beneficiaries management and are then distributed throughout 75% of the smartphone customers ready to meet the challenges of the digital OTE Group: annually (2019-2020) the Group, in the form of individual objectives for OTE – COSMOTE: 17% of e-payments for era by investing in upskilling and re-skilling OTE Group: >15,000 visitors at the OTE each organizational unit and activity. the Group’s services to take place through OTE Group: Develop a culture of continuous Group Telecommunications Museum the Group’s digital touchpoints growth In the 2017 Sustainability Report, 29 annual annually (2019-2020). targets were presented for OTE Group companies. The objectives were qualitative and quantitative, covering different functions, and were subsequently Responsible Business Customers • 1,829 integrity checks on Climate and the Environment implemented by the competent units. Of these suppliers, consultants and OTE Group: Further deployment of Risk OTE – COSMOTE: Empower Self Care objectives, 93% have been fully or partially OTE Group: Contribution to the achievement partners Appetite and Key Risk Indicators/ tolerance through AI. Increase number of self service achieved or are in progress of doing so, reflecting of the CO emissions reduction target set • 91% and 78% of OTE Group levels establishment. options and improve effectiveness of 2 the ongoing effort to improve the Group’s for 2020 at DT Group level (20% reduction procurement from domestic OTE Group: Successful pilot implementation transactions (% of transactions deflected in Sustainability performance. compared to 2008), by planning and suppliers in Greece and Romania respectively of IRMA (International Risk Management services without human intervention) • of the employees with position of implementing measures for energy 31% The companies’ performance per target is presented Application). through advanced dialogues using AI and responsibility are women conservation and CO emissions reduction. in the Appendix. OTE - COSMOTE - Germanos, COSMOTE natural language understanding (NLU). 2 • 100% of employees, working within the 4 largest ΟΤΕ-COSMOTE: Reduction of CO2 E-Value, OTE Globe, Telekom Romania, OTE – COSMOTE: Digitization, personalization OTE Group telecom companies, are covered by emissions (scope 1 and scope 2) by 20% Telekom Romania Mobile: “Compliance and simplification of processes and collective labor agreements compared to 2008 levels. Corporate Culture Survey” 2019 - analysis interactions with customers in all customer • 2,500 professionals participated in the “Grow OTE Group: Stabilization of electricity 7% 7% Not Achieved of results and opportunities identified. service areas, while building a common your Business” program consumption in the telecom network at In Progress OTE-COSMOTE-Telekom Romania: digital culture 2018 levels. Preparation for “External review” of CMS OTE – COSMOTE: Support growth and value ΟΤΕ-COSMOTE: Improvement of energy (Compliance, Procurement, Human development initiatives, via household / 3% performance of vehicles fleet by 5%. Resources, Sales, Communication). Review FMC (fixed/mobile convergence) approach, Achieved OTE Group: Recycling of 100% of hazardous of controls to verify proper implementation. VSE ((Very Small Enterprises) segment Partially and technical waste withdrawn. OTE Group: Human Rights trainings personalization and further built in B2B ΟΤΕ-COSMOTE: Minimization of plastic use (e-learning and classroom) and workshops customer service (Greece) by: to enhance involvement and understanding - Reducing the use of plastic bottles by for Human Rights issues. 50% compared to 2018 OTE Group: Enhance cyber-security incident Society - Reducing the use of disposable plastic 83% response capabilities by implementing a cups (offices and restaurants) by 100% Achieved Fully Security Orchestration and Automation OTE – COSMOTE: > 12,000 student - Abolishing the use of plastic bags in the platform. participations in STEM and Educational retail network by the end of 2019 OTE Group: Introduce a new zero-trust Robotics initiatives and train-the-trainers COSMOTE: Installation of 3 additional EMF architecture for flexible and secure network programs for >3,000 teachers, for the next measurement stations access. 2 years (2019-2020). OTE Group: Data privacy e-learning

Sustainability Report 2018 15 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

1.4 SRI Indices and Ratings

The OTE Group responds to sustainability / ESG / socially responsible investment (SRI) analysts’ questions and assessments.

OTE, since 2008, fulfills all requirements and is a In 2018, OTE maintained its ‘B-’ rating and kept its OTE has been reconfirmed for inclusion in the member of the FTSE4Good Index Series. OTE is one of status as a "Prime" company, a title awarded to Ethibel EXCELLENCE Investment Register and the nine companies in Greece, included in the companies-leaders of each sector by ISS-oekom selected for inclusion in the Ethibel PIONEER FTSE4Good Emerging Index. research, in recognition of OTE’s negotiable bonds register since February 2018. This selection by and shares qualify for responsible investment. Ethibel indicates that the company can be qualified as a sector leader in terms of corporate social responsibility.

OTE, as of December 2018, is the best performer in In 2018, following MSCI ESG Research’s Since 2010, OTE has been participating in the CDP the Vigeo Eiris Best Emerging Markets Performers assessment, OTE retained its ESG rating at ‘A’. on Climate Change by communicating the required ranking (the 100 most advanced companies in its information to its platform. In the 2018 evaluation, Emerging Markets universe). OTE achieved the highest OTE maintained its ‘B’ (Management) rating, putting score and remained the only Greek company that is a it above the average of all companies in the sector. member of this index.

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1.5 Governance The fundamental principles of OTE's Corporate The current evaluation and remuneration policy for Governance system relate mainly to: the executive members of the Board, as well as the OTE Group of Companies complies with the • Two-way communication between stakeholders decisions of the General Assembly regarding the provisions of the legislation in force on and the Company’s Management remuneration of non-executive members, and its Corporate Governance and adopts relevant • Transparency and control of Management Committees, are stated in the Corporate applicable international practices and • Assurance of operational effectiveness. Governance Statement. standards. More information is given in OTE “Corporate Committees Corporate Governance Governance” website and in the Annual Report of the Board of Directors (which is included in the The activity of the Board of Directors of OTE is OTE S.A. (hereinaſter “OTE” or the “Company”) is a Annual Financial Report). supported by: large capitalization company, listed on the Athens • the Audit Committee, and and London Stock Exchanges, and as such complies Board of Directors • the Compensation and Human Resources with current legislation on corporate governance, Committee incorporating regulations and compliance practices The Board of Directors (BoD) of OTE constitutes the into its operations. At the same time, aiming at top administrative body of the Company, without The Audit Committee is required to be formed by transparency, efficient administration and optimum prejudice to the General Assembly’s exclusive three (3) non-executive members from the Board operating performance, OTE complies with the powers under applicable legislation. Its duty is to of Directors. The majority of the members Hellenic Corporate Governance Code (HCG Code) for safeguard the general interests of the Company (including the Chairman) should be independent. Listed Companies and according to applicable and ensure its operational efficiency. legislation publishes its Corporate Governance The Compensation and Human Resources Statement, as a special section of the Annual The General Assembly of OTE's Shareholders is the Committee consists of at least three (3) Board Report of the Board of Directors to the General highest corporate body in terms of hierarchy and members, two (2) of which are required to be Meeting of Shareholders and justifies any possible elects the Board members, including the Independent non-executive members. On 31 December 2018 deviations in its operation from the principles of - Non Executive members, in accordance with the the Committee consisted of three (3) non-executive HCG Code (principle of "comply or explain"). Beyond requirements of legislation. members of the Bοard of Directors; the Commit- tee’s Chairman was also independent. legal requirements, OTE has also adopted a Please note that the General Assemblies of other Compliance Management System (CMS). OTE Group Companies, also elect their Board of OTE's Compensation and Human Resources Relevant obligations and practices are, in their Directors members. However, the necessity to Committee is, amongst other things, responsible for majority, incorporated in the Articles of Incorporation, designate the BoD members competencies as defining the principles of Corporate Social the Internal Regulation of Operations, the executive, non-executive and independent Responsibility policies. OTE Group Code of Conduct and other internal non-executive, is applicable only to OTE, due to the Regulations and Policies or best practices adopted fact that it is a Company with listed shares. In addition to the foregoing, the activity of OTE’s Board of Directors is supported by the OTE Group by the competent corporate bodies and apply to With respect to OTE Corporate Responsibility, the Compliance, Enterprise Risks and Corporate OTE’s operations. Chairman and CEO requests information from the Governance Committee, whose primary mission is Board of Directors and their opinions on Corporate to support, review and monitor the implementation Moreover, OTE has established the necessary Responsibility issues during the annual revision of of the Compliance and Risk Management Systems mechanisms to periodically update the aforementioned the strategic objectives. Regulations and Policies in order to ensure OTE’s (CMS and RMS) and the issues of Corporate Governance at OTE Group level. compliance with existing legislation and international The OTE Board of Directors, on 31 December 2018, best practices. was comprised of ten (10) members, 2 executive and 8 non-executive, of whom 2 were independent. Furthermore, out of the ten OTE Board of Directors Relevant Web Page members, eight were male and two female.

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Sustainability Governance OTE Board of Directors OTE Subsidiaries’ Boards of Directors The governance structure, which incorporates sustainability issues into core business processes, • Following OTE Board of Directors approval, approve the adoption is reflected in the OTE Group Sustainability Policy. Board of Directors Approves Group-wide sustainability policies, position pf Group-wide sustainability policies, positions, strategic-projects The OTE Board of Directors is responsible for the papers and significant strategic projects, as needed • Are responsible for measures to implement sustainability Group’s corporate responsibility performance and policies / strategy represents its interests in matters of sustainability and corporate responsibility. Supervision is entrusted Chairman and CEO Overseas OTE Group sustainability strategy and to the Chairman and CEO of the OTE Group. performance The Group’s subsidiaries are responsible for implementing the Group's standards, requirements and corporate responsibility objectives at a local Executive Director Corporate OTE Group Corporate Responsibility level. They collaborate with the business unit of the Communications OTE Group Managers’ Network* OTE Group Corporate Communications Executive Director and in particular with the Corporate Responsibility Department. The collaboration is a Executive Director Corporate Communications OTE Group • Disseminates Group-wide expertise on sustainability issues part of the OTE Group CR Managers Network of DT Executive Director • Facilitates communication between international Group. • Recommends Group-wide sustainability policies, assigns subsidiaries / business areas work and strategic actions etc. The Corporate Responsibility Department coordinates • Cooperates with the Chairman and CEO on sustainability the implementation of social and environmental issues and informs the BoD seeking guidance or approval, actions of the companies, through the operation of if applicable the Corporate Responsibility and Environmental • Formulates Group-wide sustainability strategy, policies Management Sections. In order to keep them guidelines and sustainability programs informed about trends and developments in corporate • Acts as the central interface between sustainability bodies responsibility matters, members of the Corporate and as the official representative of the OTE Group in all Responsibility Department participated, in 2018, in aspects of sustainability training sessions and seminars that pertained current and running corporate responsibility and Corporate Responsibility Department Fixed and Mobile (CRD) sustainability issues (e.g. training on the special • Develops sustainability strategy, policy and programs (in the needs of people with disabilities, regarding the form of strategic policies) upcoming legislation of 2020). • Prepares the decisions to be made by the Executive Director Corporate Communications OTE Group or Board of Directors • Coordinates and monitors implementation of sustainability policies, develops indicators and monitors progress towards target achievement *OTE Group Corporate Responsibility Managers’ Network participates in DT • Runs the OTE Group Corporate Responsibility Managers Network and Group Responsibility Managers Network supports the DT Group Corporate Responsibility Managers Network

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Interdivisional Sustainability Team Organization Structure OTE Group's Sustainability Team, consisting of more than 60 representatives from all business units, is responsible for the management of sustainability and corporate responsibility issues. The Head of the team is the Executive Director Corporate Communications OTE Group. Board of Directors OTE & COSMOTE Team Goals: • Further disseminate the principles and sustainabil- Management Systems ity actions to the different business units of the Chairman & CEO Steering Committee companies • Raise awareness and motivate employees • Collect information on corporate responsibility and sustainability performance Executive Director Corporate • Create a common corporate sustainability culture Communications OTE Group Sustainability Team and achieve the corporate goals for sustainable development.

Sustainability indices have been integrated in the Corporate Responsibility Department Fixed & Mobile Subsidiaries’ Corporate Responsibility self- assessment goals and the individual Representatives OTE & COSMOTE operational objectives of the members of the Business Unit of the Executive Director Corporate Communications OTE Group and the Sustainability Team. All members of the Sustainability Team have a “badge” assigned to their profile, which is displayed on the companies’ intranet. The “badge” Corporate Responsibility Environmental Management Environmental Management outlines their membership in the Sustainability Section Section Team OTE & COSMOTE Team, giving them recognition throughout the Group.

Corporate responsibility principles are taken into account in the annual performance evaluation process of all employees, as described in the Employee Selection, Attracting and Retaining Talented Employees section.

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2.1 Stakeholder Dialogue

OTE Group recognizes that its stakeholders Stakeholder Dialogue have a direct impact and influence on its sustainable development and is engaged with their representatives without exclusions Interaction with Stakeloders Surveys for stakeholders and Systematic dilogue and Participation in events and discrimination. in the companies’ operations, opinion makers in relation to meetings with NGOs related to Sustainability participation at defining the sustainability OTE Group has identified 9 primary stakeholder material issues groups as presented as follows: • Shareholders, Bondholders, Investors and Analysts • Customers and prospective customers • Business • Science, Research and Education • Media Issues & results • Employees, prospective employees and their representatives • Suppliers Shaping of: • NGOs and interest groups 1. Strategy • State / Government agencies OTE Group 2. Targets Sustainability Policy 3. Priorities As part of its sustainability management approach, 4. Programs the OTE Group has established strong communication channels with all stakeholders to actively engage with them, understand their expectations and help shape the Group’s Sustainability Policy. Through continuous Stakeholder dialogue, feedback from its stakeholders is acquired which enables the The Group took part in the 2nd “HIGGS Donors’ complete understanding and prioritization of the Speed-Dating Event”. During the event, 26 companies, ΑΑ1000 AccountAbility issues they raise. active in the field of corporate responsibility, got Principles Standard together with 84 NGOs from all over Greece. They In 2018, the Group participated in the 2nd discussed about potential collaboration opportunities OTE Group companies comply with the Stakeholder Panel, conducted by Global Sustain. that could be mutually beneficial and further principles of the "ΑΑ1000 AccountAbility The panel included several stakeholder groups such enhance companies’ social actions and corporate Principles" Standard, namely Inclusivity, as companies, state institutions, nonprofit responsibility strategy. Materiality, Responsiveness and Impact. organizations, media, etc. The OTE Group Responsibility Report 2017 was the main topic of Stakeholders’ feedback is also utilized as an input discussion and it was evaluated, as a mean of in the Group’s materiality analysis process, which communication of the Group with its stakeholders. subsequently assists the validation and improvement of the Group’s sustainability strategy.

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Materiality Analysis

OTE Group companies identify the most important issues of their sustainable development through a materiality analysis process carried out in accordance with the Group's Corporate Risk Management approach.

In 2017, the materiality of sustainability issues was determined through the participation of OTE Group's Senior Management and stakeholders. For the first time, this analysis was conducted for the entire Group rather than on a company level.

In addition, the compliance risk assessment process was integrated in the materiality analysis process. OTE Group has merged its sustainability, compliance and risk management procedures, developing a holistic approach, according to best practices.

To consolidate the data at a Group level, weighing and Social Issues to Stakenholders

financial, social and environmental factors were Significance of Economic, Environmental Ma teri used. The results were validated by the OTE Group ality thre Management and all available data were evaluated, shold to be used in the planning of the Group’s actions and strategy, while the most important issues were included in the Group's risk map.

The 2018 Sustainability Report refers to all 26 issues, with special focus on the 7 issues identified Significance of Economic, Environmental and Social Issues to OTE Group by Management and stakeholders as the most material. 1. Economic Performance 14. Products and services for sustainability More information is presented in the Appendix. 2. Governance and management 15. Research and innovation 3. Corporate compliance policies 16. Responsible competition 4. Employees’ compliance and grievance mechanisms 17. Responsible communication with customers 5. Human rights 18. Customer service and satisfaction 6. Business resilience 19. Digital inclusion 7. Data security and privacy 20. Support education on ICT 8. Safe and responsible use of technology 21. Managing impacts to society and the local community 9. Responsible procurement and supply chain management 22. Stakeholder engagement 10. Employment 23. Energy and climate change 11. Fair employment and equal opportunities 24. Circular economy 12. Employee health, safety and wellness 25. Electromagnetic fields (EMF) 13. Employee training and skills development 26. Other environmental aspects

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2.2 Enterprise Risk Management for all business units and Group subsidiaries. All • Incorporated the results of the individual risk corporate risk descriptions are kept centrally in the assessments of business units and subsidiaries Policies / Procedures Business activities are subject to uncertainty, due to Group Corporate Risk Register. into the OTE Group Corporate Risk Register, for Enterprise Risk Management internal and external factors that affect corporate aiming at a systematic analysis and structured objectives. By systematically tracking uncertainty, it Major achievements in 2018, include: monitoring of corporate risks. • Enterprise Risk and Insurance is possible to derive appropriate measures early on Management Policy OTE Group and reduce risks. For this reason, a functioning risk • Adoption of the “Risk Appetite Statement” by • Presented four (4) OTE Group Enterprise Risk • Risk Appetite Statement management system is a core element of the Board of Directors and by the affiliated Management Reports to the OTE Group GRC • Policy on Indemnification from Risk value-based corporate management, by supporting companies’ corporate bodies. OTE Group Committee for their review, evaluation and Insurance and Pension Programs efforts to secure corporate success in a sustainable Enterprise Risk Management Department is subsequent submission to the relevant corporate OTE Group way. The risk landscape includes, inter alia, in the process of defining, collecting and bodies, i.e. the OTE Audit Committee and the • Enterprise Risk Assessment Process compliance and legal risks. analyzing relevant data and establishing Key OTE Board of Directors. • Indemnification from All-risks Risk Indicators (and their thresholds / tolerance Insurance Program OTE Group has developed and implements a Risk levels), aiming to ensure compatibility with • Received approval by the OTE Audit Committee Management System (RMS), aiming to safeguard a corporate strategic performance indicators and of the self-assessment, regarding the linear business model and the Group’s future their related mapping in the Group Corporate implemented Risk and Insurance Management business success. The RMS supports Management Risk Register. System at OTE, COSMOTE, Telekom Romania in making strategic decisions by identifying, Communications and Telekom Romania Mobile evaluating, communicating and addressing • OTE and COSMOTE were successfully reattested Communications. corporate risks. The RMS, as implemented in the according to ISO 31000:2018 and Telekom OTE Group, is based on the COSO ERM model and Romania Communications and Telekom Romania • Completed a comprehensive ERM / Compliance the ISO 31000Standard on Risk Management. OTE, Mobile Communications according to training / awareness at shops. Deutsche Telekom COSMOTE, Telekom Romania Communications and ISO 31000:2009. EU Risk Culture (Core Beliefs/Goals) material / Telekom Romania Mobile Communications have leaflet is being distributed. been attested according to the above standard. • Performed quantitative risk analysis on business projects using statistical analysis (Monte Carlo The OTE Group Enterprise Risk Management simulation). Department monitors, facilitates and supports the implementation of effective risk governance practices. • Achieved alignment and harmonization of risk Relevant Web Page The responsibilities of risk managers include the terminology and methodology among Deutsche assessment and monitoring of the overall risk Telekom Group companies, within the framework portfolio status, as well as the monitoring of the of IRMA (International Risk Management Group Corporate Risk Management methodology Application) development, in which OTE has a leading role.

EARLY IDENTIFICATION ASSESSMENT MANAGEMENT COMMUNICATION CONTROL OF RISKS

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2.3 Policies and Management of Systems and attested according to e-learning programs). In November 2018, the selection of the target audience). Communications and Telekom Romania Mobile systems are monitored by the OTE Group GRC ISO 19600:2014 on Compliance Management 2nd Top Management Compliance Training - Combined digital communication campaign Communications. Committee, the Audit Committee and the Board of Regulatory Compliance System, for OTE, COSMOTE, Telekom Romania (TMCT) with external keynote speakers took regarding Anti-Corruption Day (9th of Directors. Communications and Telekom Romania Mobile place. 140 OTE Group managers participated in December) and Human Rights Day (10th of • CMS Assessments for all OTE Group companies, Additional information regarding compliance and Why it matters Communications. Moreover, in 2018 a Compliance this training which was focused on Speak Up December) with the key message: “A world via the new Deutsche Telekom CMS Tool, were Management System (CMS) Certification on issues. Moreover, customized workshops for senior without corruption is a better world for all” performed. risk management can be found in the Annual Financial Report 2018. Compliance of an organization with the Anti-Corruption (Assurance Standard 980) was managers were held, to familiarize themselves addressed to all OTE Group companies. obtained by OTE, COSMOTE and Telekom Romania with the upcoming compliance challenges The campaign consisted of respective letters by • Establishment and implementation Τhe Compliance Policies are included in the applicable regulations is an essential Compliance section of the corporate site. obligation for responsible operation. OTE Communications. regarding Speak Up. In addition, 1,700 new the CEOs, sent to all OTE Group employees and of CMS KPIs. Group Management and its stakeholders employees were trained in 2018, as part of the two articles for Anti-Corruption and on Human effectively require the Group to comply Major achievements in 2018 include: “Welcome on Board” program and “Customer Rights issues, uploaded on the companies’ • Annual Statements were signed by the Senior with laws and regulations and to bear zero Care induction” program, which include a specific intranets. Financial Officers regarding their compliance tolerance for corruption, blackmailing and • A Compliance Risk Assessment for all OTE module on Compliance issues. In 2018, there - International Fraud Awareness Week with the applicable Code of Ethics for Senior bribery. Group companies was conducted. Business units’ was a significant increase in the total number of Campaign information was posted on Intranet Financial Officers, aiming at honest and ethical representatives who participated in the employees trained (more than a 100% increase and communicated to subsidiaries in order to professional conduct. Assessment represented 100% of the operations. over 2017). highlight the importance of creating a Risks assessed included, amongst others: active fraud-preventive culture, that encourages the • A number of OTE Group Compliance Policies Compliance Management and passive corruption, violation of the • Group-wide Campaigns / internal use of the company’s communication channels were revised/amended. Procurement Policy, risk arising from OTE communications: to openly discuss concerns that are raised The OTE Group Corporate Responsibility Policy For OTE Group, the assurance of compliance is one business partners, embezzlement, theſt, fraud, - “Speak up” communication campaign in the workplace. was revised and renamed as OTE Group of the top priorities. Compliance reflects solid conflicts of interest, violation of anti-money addressed to OTE Group companies in Greece - Information on Compliance issues Sustainability Policy. The Policy sets out the commitment to the principles of integrity, transparency, laundering legislation, breaches of anti-trust, and Romania, during October-November 2018. addressed to employees and Management. strategy and the action plans for OTE and its justice, as well as of respect to the rules and principles misuse of personal data, etc. Management set the tone at the top for the (e.g. guidelines on giſts and invitations to affiliates, taking into consideration the social and which are essential to govern the operation of the campaign, which included communication to all events during holiday periods). financial circumstances, as well as the culture Group. In this respect, a Compliance Management • More than 5,000 Group employees employees, via relevant articles on the intranet priorities and challenges. System (CMS), that mainly focuses on prevention participated in the Compliance Training and the newsletter. Furthermore, two (2) • Successful re-attestation on re-certification Moreover, the following OTE Group Compliance measures, has been established. program (training seminars for anti-corruption, training workshops for OTE-COSMOTE on ISO 37001:2016 and ISO 19600:2014 for Policies were amended: introductory training for new entrants and Managers were held in Greece (risk-based OTE, COSMOTE, Telekom Romania - OTE Group Policy on Insider Trading (as a result The System addresses the compliance of all of updating the Internal Regulation of Operations employees and Management - with current legislation of OTE S.A.) and Internal Policies. - OTE Group Policy on Accepting and Granting of Benefits Any employee and/or third parties (customers, - OTE Group Donation Policy vendors, partners, etc.) may report (eponymously or Key Elements of Compliance Management System - OTE Group Sponsoring Policy anonymously) inappropriate conduct to Compliance - OTE Group Policy on Avoiding Corruption and channels and report any concern or complaint other Conflicts of Interest about potential violations of Company Policies or 1 Prevention of Misconduct and Compliance 2 Management of Compliance Violations legislation. with the Policies in Place • Presentation of four (4) OTE Group Compliance Reports to the OTE Group Regulations and Policies are regularly updated to Development of Misconduct and Compliance Detection of compliance violations Compliance, Enterprise Risks and Corporate ensure continued compliance with applicable legislation with the Policies in Place Investigation of compliance violations Governance Committee (GRC Committee) for the and best international practices. Training of employees Submission of proposals and corrective actions or Conduct of an annual Compliance RiskAssessment measures deemed necessary review, evaluation and subsequent submission to the competent corporate bodies. The CMS System has been certified according to Communication channels to enable employees to raise questions about the ISO 37001:2016 on Anti-Bribery Management implamentation of Policies The effectiveness and efficiency of the above

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2.3 Policies and Management of Systems and attested according to e-learning programs). In November 2018, the selection of the target audience). Communications and Telekom Romania Mobile systems are monitored by the OTE Group GRC ISO 19600:2014 on Compliance Management 2nd Top Management Compliance Training - Combined digital communication campaign Communications. Committee, the Audit Committee and the Board of Regulatory Compliance System, for OTE, COSMOTE, Telekom Romania (TMCT) with external keynote speakers took regarding Anti-Corruption Day (9th of Directors. Communications and Telekom Romania Mobile place. 140 OTE Group managers participated in December) and Human Rights Day (10th of • CMS Assessments for all OTE Group companies, Communications. Moreover, in 2018 a Compliance this training which was focused on Speak Up December) with the key message: “A world via the new Deutsche Telekom CMS Tool, were Additional information regarding compliance and Management System (CMS) Certification on issues. Moreover, customized workshops for senior without corruption is a better world for all” performed. risk management can be found in the Annual Anti-Corruption (Assurance Standard 980) was managers were held, to familiarize themselves addressed to all OTE Group companies. Financial Report 2018. obtained by OTE, COSMOTE and Telekom Romania with the upcoming compliance challenges The campaign consisted of respective letters by • Establishment and implementation Τhe Compliance Policies are included in the Communications. regarding Speak Up. In addition, 1,700 new the CEOs, sent to all OTE Group employees and of CMS KPIs. Compliance section of the corporate site. employees were trained in 2018, as part of the two articles for Anti-Corruption and on Human Major achievements in 2018 include: “Welcome on Board” program and “Customer Rights issues, uploaded on the companies’ • Annual Statements were signed by the Senior Care induction” program, which include a specific intranets. Financial Officers regarding their compliance • A Compliance Risk Assessment for all OTE module on Compliance issues. In 2018, there - International Fraud Awareness Week with the applicable Code of Ethics for Senior Relevant Web Page Group companies was conducted. Business units’ was a significant increase in the total number of Campaign information was posted on Intranet Financial Officers, aiming at honest and ethical representatives who participated in the employees trained (more than a 100% increase and communicated to subsidiaries in order to professional conduct. Assessment represented 100% of the operations. over 2017). highlight the importance of creating a Significant Data 2018 Risks assessed included, amongst others: active fraud-preventive culture, that encourages the • A number of OTE Group Compliance Policies Compliance Management and passive corruption, violation of the • Group-wide Campaigns / internal use of the company’s communication channels were revised/amended. Tip offs / Complaints recieved at the • With respect to fraud incidents and Procurement Policy, risk arising from OTE communications: to openly discuss concerns that are raised The OTE Group Corporate Responsibility Policy 3,901 relevant compliance communicartion For OTE Group, the assurance of compliance is one serious violations of the OTE Group business partners, embezzlement, theſt, fraud, - “Speak up” communication campaign in the workplace. was revised and renamed as OTE Group channels in 2018 of the top priorities. Compliance reflects solid Code of Conduct by employees: conflicts of interest, violation of anti-money addressed to OTE Group companies in Greece - Information on Compliance issues Sustainability Policy. The Policy sets out the commitment to the principles of integrity, transparency, -2 cases occurred, which resulted in the laundering legislation, breaches of anti-trust, and Romania, during October-November 2018. addressed to employees and Management. strategy and the action plans for OTE and its justice, as well as of respect to the rules and principles termination of contract of OTE Group misuse of personal data, etc. Management set the tone at the top for the (e.g. guidelines on giſts and invitations to affiliates, taking into consideration the social and which are essential to govern the operation of the employees, campaign, which included communication to all events during holiday periods). financial circumstances, as well as the culture Group. In this respect, a Compliance Management -1 case occurred, for which final • More than 5,000 Group employees employees, via relevant articles on the intranet priorities and challenges. System (CMS), that mainly focuses on prevention disciplinary sanctions were imposed by Tip offs / Complaints Customer complaints on participated in the Compliance Training and the newsletter. Furthermore, two (2) • Successful re-attestation on re-certification Moreover, the following OTE Group Compliance measures, has been established. the competent 1st and 2nd degree related to rules and technical/ program (training seminars for anti-corruption, training workshops for OTE-COSMOTE on ISO 37001:2016 and ISO 19600:2014 for Policies were amended: 107 3,794 disciplinary bodies. introductory training for new entrants and Managers were held in Greece (risk-based OTE, COSMOTE, Telekom Romania -OTE Group Policy on Insider Trading (as a result compliance policies commercial matters The System addresses the compliance of all • There were no incidents of corruption of updating the Internal Regulation of Operations employees and Management - with current legislation with respect to contracts with business of OTE S.A.) and Internal Policies. partners, that resulted in the -OTE Group Policy on Accepting and Granting termination of the contract or its of Benefits Any employee and/or third parties (customers, non-renewal. 59 41 7 -OTE Group Donation Policy vendors, partners, etc.) may report (eponymously or • 3 cases occurred concerning OTE Group -OTE Group Sponsoring Policy anonymously) inappropriate conduct to Compliance suppliers leading to their exclusion from - OTE Group Policy on Avoiding Corruption and Not Plausible Under channels and report any concern or complaint the 2018 tender procedures. other Conflicts of Interest plausible Investigation about potential violations of Company Policies or Management of Compliance Violations • There have been no court convictions legislation. for corruption issues against OTE Group • Presentation of four (4) OTE Group or its employees in relation to their Compliance Reports to the OTE Group Appropriate per case measures were adopted Regulations and Policies are regularly updated to professional activities. Compliance, Enterprise Risks and Corporate (Strict warning, removal from positions of ensure continued compliance with applicable legislation • No fine or non-pecuniary penalty (e.g. a Governance Committee (GRC Committee) for the responsibility, employment contract termination, and best international practices. recommendation) for corruption or review, evaluation and subsequent submission to submission of a Statement of Conflicts of interest, fraud violations (including tax fraud and the competent corporate bodies. establishment/omp;amentation of new controls or The CMS System has been certified according to manipulation of financial reporting) was revisions of exesting ones) ISO 37001:2016 on Anti-Bribery Management imposed on OTE Group companies. The effectiveness and efficiency of the above

Sustainability Report 2018 25 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Responsible Competition OTE according to relevant Hellenic Telecommunications and Post Commission’s (HTPC) decisions, issued at OTE Group promotes a truly responsible competition, the end of December 2016, OTE continues to have Regulatory Litigations 2018 in respect of consumer protection. It complies with Significant Market Power and is subject to regulatory the laws of free competition and applies transparent obligations in the wholesale local access market at Appeals in 2018 business practices. a fixed location (market 3a/ 2014) and the wholesale central access market at a fixed location for Telekom Telekom Romania OTE Group is firmly committed to comply with mass-market products (market 3b/2014). Although Actions OTE COSMOTE Romania Mobile Communications Communications national and European telecoms, audiovisual media the retail market for access to the fixed telephone services and content regulations in Greece and in network on a fixed location via PSTN, ISDN BRA, Number of fines 0 0 7 11 the countries where it has commercial activities. It managed by VoIP and ISDN PRA (market 1/2007) Number of appeals 0 0 0 2 is committed to cooperate with governments, has been deregulated and OTE does not have national agencies and authorities and other Significant Market Power, OTE's control of retail Number of non- 0 0 0 4 pecuniary penalties stakeholders, in order to formulate a regulatory prices by the HTPC is maintained, as a remedy in framework that fosters competition and, at the the context of the wholesale markets’ regulation. Cost of fines (€) 0 0 648,300 1,890,400 same time, contributes to the overall social welfare. OTE views that any ex-ante price control of its retail services should be withdrawn in order to refrain OTE Group has developed relevant internal policies from distorting market dynamics and competition Information about the evolution of previous important cases is included in the Annual Financial Report in order to inform employees about the importance in the retail markets. of compliance with competition rules and to systematically promote the appropriate Codes of In 2019, a new market analysis is expected for the The Group’s objective is the promotion of a fair Conduct. The OTE Group Policy on Anti-Trust Law, wholesale local access market at a fixed location regulatory environment which ensures a level-playing established in 2013, sets out the framework of (market 3a/ 2014) and the wholesale central field and regulatory predictability for investments, operation for OTE Group companies and employees access market at a fixed location for mass-market as well as the creation of a positive environment regarding their compliance with the relevant legislation products (market 3b/2014). In addition, the HTPC and the establishment of trusting relationships. The on the regulation of anti-competitive conduct. Decision following a public consultation for wholesale Group's positions on electronic communications at high-quality access provided at a fixed location national and EU level, as well as its commercial, Regulatory Framework market (market 4/2014) is expected to be issued. financial and regulatory strategy, are communicated to stakeholders. For OTE Group, the provision of electronic Detailed information on the regulatory frameworks communications networks and services is subject to in Romania is presented in Telekom Romania’s The Chief Legal and Regulatory Affairs Officer of national laws and regulations, in all countries of its Corporate Responsibility Report. OTE Group is responsible for shaping the strategy operation. Accordingly, the provision of OTE’s pay for ensuring a fair regulatory environment. TV services under the name COSMOTE TV is regulated by the National Council for Radio and Television and Contribution, Formulation and Operation of a Responsible Market OTE and Telekom Romania Communications are is subject to national and EU laws and legislation. registered in the EU Transparency Register and thus In Greece, OTE is subject to the national legislation The new telecommunication technologies are have committed to comply with the Transparency as well as the European regulation and the European critical for future economic growth, social welfare Register Code of Conduct. competition legislation. and sustainability. In this framework, OTE Group plays an important role in sector-specific and The most important relevant participations of OTE More specifically, OTE, following a 2016 auction, multi-stakeholder forums, associations and initiatives, Group companies in 2018 are presented in the has been assigned as the universal service provider at national and EU level, in order to enhance Appendix. related to the provision of directory enquiry responsible competition, self-regulation and services, directories and public payphones in Greece cooperation on social welfare. until 31st of January 2021.

Sustainability Report 2018 26 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

2.4 Human Rights Management Commitment for the Protection concerned improper behavior (harassment and of Human Rights mobbing) by a shop’s manager towards most of the The OTE Group recognizes the importance of shop’s employees. Following a relevant investigation Raising Awareness, Mechanism for human rights issues. In 2018, the Group adopted by the OTE Group Compliance Office, the complaint Training, Cooperation Handling Queries/ the Code of Human Rights and Social Principles, 6 1 2 with Stakeholders and Comlaint/Tip-offs was found to be partly plausible, but respective as a result of the revision and renaming of the Networks measures are yet to be determined. However, with ΟΤΕ Group Social Charter. the initiation of the investigation, the shop’s manager was transferred to another COSMOTE Shop, as a In the Code of Human Rights and Social Principles, Approach to measure for improving the workplace conditions. OTE Group recognizes its responsibility to respect Handling Human internationally recognized human and social rights. Rights Issues In the Compliance Training material (see section Policies and Management of Regulatory Compliance), OTE Group's integrated approach to managing a section regarding human rights and the Group’s human rights is based on the United Nations Principles Monitoring and Risk Analysis and Impact approach (e.g. communication channels and the and Guidelines for Business and Human Rights and Communicating 5 4 3 Assessment Regarding principles of the Code of Human Rights and Social is aligned with the approach of the Deutsche Telekom Human Rights Issues Principles) has been included. It is estimated that Group. approximately 27,5 training hours were devoted to Integration of Human classroom trainings regarding the Code of Human Also, the OTE Group Code of Conduct includes basic Rights Issues into the Companies’ Operation Rights and Social Principles and human rights rules of conduct, principles and values, such as issues, during 2018. equality, respect for diversity, trust, credibility, integrity, morality, transparency, personal responsibility. In 2018, OTE Group in line with its approach, human rights issues. Any human rights inquiries or On the International Human Rights Day (10th of These rules establish a model of operation and lead strengthened its efforts, by developing and complaints/tip-offs are addressed to the existing December), the Chairman and CEO of OTE Group, in to the adoption of a common "Corporate Culture". implementing a Human Rights’ Action Plan, which Compliance communication channels. For any other an internal message addressed to all employees, included the following tasks: issues related to the Code, the [email protected] The Group respects the right to freedom of expression referred to the outstanding commitment that OTE channel is also available. In the same direction, the and the confidentiality of data, while it operates in Group employees are showing towards the Code of • A Human Rights Risk Form was incorporated in OTE Group Sustainability Policy makes reference to accordance with the legal framework currently in Human Rights and Social Principles, the OTE Group the OTE Group Enterprise Risk Management the human rights issues and their managing, force (see section Security and Data Privacy). Code of Conduct and the Compliance Management Report, presented and approved by the OTE Audit according to the provisions of the Code of Human Policies. Particular attention is paid to the rights of its Committee. Rights and Social Principles. employees, freedom of association and collective There were no convictions of OTE Group by the bargaining, diversity and equal opportunities (see • A human rights risk and impact analysis, which In 2018, 1,448 OTE Group employees’ queries were judiciary for discrimination in the workplace, nor section Fair Employment Policy Framework and incorporates the respective risk areas and risk received through the "Ask Me" process, including, was there a financial or non-pecuniary (e.g. Equal Opportunities). The Group declares that it is in scenarios, was initiated for OTE Group companies but not limited to, sponsorship / donation approvals recommendation) penalty imposed on human favor of banning all forms of forced labor and in the fourth quarter of 2018 and will be as well as on conflicts of interest, secondary rights issues. strives to abolish child labor. completed in 2019. employment, accepting/offering benefits, and OTE Group Supplier Code of Conduct. None of the In order to protect human rights, even beyond the • Statements on compliance with the provisions of questions were related to discrimination issues. limits of its own operation, OTE Group asks its the Code of Human Rights and Social Principles Relevant Web Page suppliers to respect and safeguard human rights, were requested and collected from all OTE Group It is worth mentioning that three (3) significant integrates human rights requirements into companies. investment agreements/contracts, which included a contracts with suppliers and participates in the CFSI human rights clause, were concluded during 2018. initiative (Conflict-Free Sourcing Initiative), through The Executive Director Compliance, Enterprise Risk Deutsche Telekom, to prevent the use of conflict Management and Insurance OTE Group has been In addition, 111 complaints were filed via "Tell Me" minerals. designated as the Officer responsible for managing channels by employees of OTE Group. One (1) tip-off

Sustainability Report 2018 27 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

2.5 Responsible Purchasing and Supply Chain Supplier Selection Integrity Check and Compliance Supply Chain Management The development and maintenance of avalue- Specific criteria related to corporate responsibility Business Assessment of potential added supply chain for the Group, with economic, and sustainability can be added to each procurement suppliers OTE Group believes that the diffusion of key environmental and socially responsible methods notice, in accordance with the specifications values and standards in the supply chain is and practices, in line with the Group's vision, is a required and defined by the business unit that • 1,839 integrity checks of continuous challenge. initiates the procurement process. All potential an important feature of responsible business suppliers, consultants and partners suppliers are required to declare that they explicitly conduct. were carried out OTE Group Companies has lists of suppliers (Vendor agree with the OTE Group Supplier Code of Conduct , Register), renewed in the context of the development which reflects the intention of the OTE Group Procurement Policy • 100% of potential suppliers of a sustainable supply chain. For instance, in 2018, companies to collaborate with socially and for any purchase exceeding The OTE Group companies carry out their procurement the list consisted of 1,267 suppliers for OTE, 664 environmentally responsible suppliers. This € 50,000 were reviewed and practices according to the OTE Group Procurement for COSMOTE, 162 for GERMANOS, 800 suppliers intention of the Group is reinforced by the OTE checked, unless they had been Policy, which sets out all the terms and regulations for Telekom Romania Communications and 317 for Group Code of Human Rights and Social Principles. checked within the last 2 years under which commissions are made. The main Telekom Romania Mobile Communications (some objectives of the Procurement Policy are: vendors are common for OTE, COSMOTE, The contract, which contractors sign, includes • 100% of potential consultants • Optimization of value added in terms of cost, GERMANOS and have been counted separately for special clauses on health and safety issues, were checked, regardless of the quality and time each company). The lists include both multinational anti-corruption, security and confidentiality. fee value • Ensuring transparency and local companies for the purchase of materials In addition, signing the contract also obliges the • Compliance with Deutsche Telekom's and equipment or for the provision / lease of contractors to comply with the OTE Group Supplier International Procurement Policy services. Code of Conduct.

The Procurement Policy does not distinguish Each list of suppliers comprises many different between local and non-local suppliers. However, it is categories / types of hardware or services supplies. common practice for the Group Companies to Indicative categories of suppliers are contractors, support domestic suppliers. licensees, consultancy providers, telecoms and service companies, and IT hardware / soſtware OTE Group Companies aim to reimburse their development companies. suppliers, as defined in their procurement contracts, in due time. For 2018, the payment time ranged from 30 to 120 days, depending on the type and value of the procurement.

Percentage of Procurement from Domestic Suppliers

• Greece: 91%

• Romania: 78%

Sustainability Report 2018 28 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Supplier’s Management Lifecycle • Procurement conducted according to OTE Group Procurement Policy • Assessment of overall major vendor performance based on cross functional criteria set / • Suppliers comply with the Supplier Codes of Conduct (clause in contracts) KPIs by OTE Group Management • Evaluation of new vendors / proposals (supplier’s selection criteria including Integrity Check) • Self-assessment of the major vendors’ CR performance through a self-assessment • Incorporation into the suppliers’ contracts of clauses on health and safety, anti-corruption, sustainability performance questionnaire security policy and confidentiality • Major vendors sign the Supplier Codes of Conduct Acceptance Declaration

Selection Evaluation

DT’s Suppliers’ Assessment results

Development Classification

• Specify plans to work on the improvement of weak vendors • Classification of Supplier’s based on quantitative assessment results • Monitoring of actions and results • Presentation of assessment results to OTE Group Management • Communication to Group of excluded vendors

Sustainability Report 2018 29 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Supplier Evaluation The suppliers that are evaluated are asked to For low-rated suppliers, Management decides plausibility by specifically trained persons who are complete a self-assessment questionnaire on their whether they should remain on the Group’s list of obligated to confidentiality. The active suppliers of the OTE Group are evaluated performance regarding sustainability issues. This eligible suppliers, whether they need to show on a yearly basis. Suppliers are selected based on questionnaire aims to promote awareness of social improvement in their performance (in which case Finally, the OTE Group Supplier Code of Conduct, as the purchase orders issued within 12 months. More and corporate responsibility to suppliers, giving some remedial action plans need to be agreed with revised in 2017, sets the framework for social, specifically, in 2018, the selection of suppliers for them the opportunity to present information about the suppliers), or for the collaboration with the environmental and compliance audits. OTE Group evaluation was based on all orders issued between their management systems and practices. The Group to cease (whereupon the relevant Directorates and/or its authorized representative are entitled to 1/10/2016 - 30/9/2017, on behalf of OTE, COSMOTE, questionnaire includes questions related to corporate of the Group are informed). conduct monitoring activities on the supplier and its GERMANOS, Rural North, Rural South, Germanos responsibility, sustainable development, employment, subcontractors to effectively evaluate the supplier’s Telecom Romania, e-Value SA, e-Value Ltd, e-Value human rights, environment, health and safety, In addition, OTE Group Companies take into account and subcontractors’ actual conformity with the International, Telekom Albania, Telekom Romania quality and business continuity. Questions refer to the results of Deutsche Telekom's assessments and Code’s Principles. This includes the right for OTE Communications, Telekom Romania Mobile the suppliers’ performance, as well as their suppliers’ audits for each joint vendor. In the event that DT Group and/or its authorized representative to Communications, Telemobil and Sunlight Romania. and sub-contractors’ performance. realizes that a supplier does not comply with DT perform audits, including on-site inspections and Group policy and international standards and carry out questionnaires and/or interviews with OTE Group’s supplier evaluation included: interrupts transactions with him/her, OTE Group selected employees at supplier’s premises, • all suppliers with orders of more than Classification and Development of Suppliers companies are informed and they in turn, remove construction sites and/or other locations where € 2 million (for all the companies that supplier from the list of their eligible suppliers. work is performed on behalf of the supplier. The mentioned above), The ratings of suppliers by the OTE Group companies’ supplier acknowledges that OTE Group has the right • all suppliers providing important types of supply operational units involved in the process, as well as It should be noted that OTE Group has established to request and receive further information (e.g. (i.e. products and services that have a significant the self-assessment questionnaires completed by different communication channels (e.g. Tell me! through the OTE Group evaluation systems/ effect on the products and services provided to the suppliers, feed the Supplier's Vendor Evaluation whistleblower portal, regular post, telephone, EcoVadis/self-assessments), if deemed necessary. customers) worth over € 500,000, System to produce a quantitative performance e-mail) to enable anyone to submit information Upon request from OTE Group, the supplier shall • all suppliers of products/services related to score for each supplier. The performance of each concerning possible violations of legal obligations inform OTE Group of the measures adopted to the Group Consolidated Management System, vendor on corporate responsibility and sustainability or internal policies and regulations. It is also possible ensure compliance with the Principles. Any and issues corresponds to 10% of the total score. The to file a report anonymously via the Electronic non-conformity with the Principles shall be notified • certain suppliers who did not meet the above results of the ranking are presented to the Group's Compliance Form. Any information provided is to OTE Group and a dedicated improvement plan criteria but were proposed for evaluation by OTE Management. treated as strictly confidential and is checked for has to be filed to be implemented in due course. Group Managers.

Supplier Evaluation for 2018 for the 4 Largest OTE Group Companies Relevant Web Page

Number of Suppliers Evaluated Annual Procurement Value* Evaluated %

96%

89% 85%

128 78% 128 100 * Includes high value supplies, product and service supplies 76 that affect the end products / services provided to

44 customers, as well as high risk products as defined internally. Supplies from affiliates, dealers’ commissions, OTE COSMOTE Telekom Romania Telekom Romania interconnection, roaming supplies, and sponsorships-dona- tions are excluded). Communications Mobile Communications

Sustainability Report 2018 30 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

2.6 Security and Data Privacy Privacy and Security Assessment (PSA) procedure cyber-attack defense exercises. • provisioning of subscribers’ personal data improving the physical security standards of 10 allows OTE to review the security of its systems in • Implementation of email sandbox solution in Greece: Significant Data 2018 from 11,183 telephone numbers, additional branches. each step of the development process, covering the order for e-mails, addressed to OTE Group, to be • provisioning of subscriber personal information • Performed registration and mapping of existing Why it matters GDPR requirements for Data Privacy Impact checked for zero-day threats. • 40 security and privacy system audits from 1,187 IP addresses. security systems using the new Tablet App in 50 Assessment. • Expansion of the Data Leakage Prevention were completed and 13 system risk premises in Greece. Data is a key element of OTE Group System in franchise shops. assessments on the PSA portal were These requests are forwarded to the ADAE, who • Piloted physical access to OTE HQs using QR In addition, data protection notices were developed operation. The security and privacy of • Further expansion of the Identity Management executed in order to determine includes them in its Annual Activity Report. codes. Evaluated further pilot programs and for the Group services and more that 400 data personal data is a major requirement System (Greece). compliance with corporate policies and selected the Bluetooth enabled method for protection agreements were signed with partners. demanded by customers and a primary • Re-certification of the Information Security security procedures. In Romania, the legal basis for lawful interception deployment at premises in Greece. Management System in OTE, COSMOTE, Telekom and traffic data provisioning activities consists of concern of the companies of the OTE Awareness activities regarding GDPR were • >400 Commissioned Data Processing Romania Communications and Telekom Romania Law 14/1992 on the organization of the Romanian Group. performed for the Management and first-line Agreements (CDPAs) have been signed Mobile Communications (in accordance with Intelligence Agency, Law 51/1991 on National employees in shops and customer service. 5,500 with Processors ISO 27001). Security, Decision 338/2010 of the President of employees participated in 46 face-to-face trainings • 350GB of log files per day were • Revision of Security Policy. ANCOM (i.e. Romanian regulatory body in information and e-learning courses. collected and 10,000 events per sec are Data Security and Privacy in in the Security Incident and technology and communications industry), Law Monitoring and auditing processes are in place to logged Moreover, OTE Group customers can be informed 508/2004 on the organization of DIICOT (department Data Protection and Security are of utmost ensure compliance with the security framework and Event Management platform about the ΟΤΕ Group Data Privacy Policy through • 149,624 (~100%) authorized user under the Public Ministry in charge with investigating importance for OTE Group. Ensuring data protection BCRP. For instance, in OTE and COSMOTE, user the cases of organized crime and terrorism), the the corporate webpage and may exercise their accesses were audited in data processing is more than just an obligation to comply with legal access rights are regularly reviewed and certified Criminal Procedural Code and Law 235/2015 rights through a dedicated channel. From the systems. and regulatory requirements and heavily reflects on and access to communications data is systematically modifying the Law 506/2004 on processing 25/05/2018 until the end of the year, OTE and • Establishment of security requirements the quality of the Group services. audited. personal data and the protection of private life in COSMOTE handled approximately 900 for the implementation of 78 new the field of electronic communication. All OTE Group companies have adopted the Binding GDPR - related requests. Timely response to security incidents is also paramount systems or services and completion of Corporate Rules on Privacy (BCRP). These Rules for OTE Group. A Security and Privacy Hotline was security testing to verify the secure In addition, consent management processes were contain the key requirements for the processing of introduced, to support employees reporting any implementation. revised and implemented in CRM systems, as well the personal data of OTE Group subscribers and security and privacy related incidents to the Security as portal and mobile applications. employees, in accordance with applicable Greek Operations Center that operates all year round, and European legislation and ensure a high level of 24 hours a day, 7 days a week. Also, pseudonymization was implemented for data Physical Security protection for personal data. that are processed in Big Data infrastructure. provided that they present the required legal orders. In 2018, OTE and COSMOTE investigated 20 Detailed information on surveillance measures are Indicative actions that were implemented in 2018 In May 2018, the General Data Protection customer requests, regarding confidentiality of Aiming at continuous improvement on the level of available in the transparency report. are the following: Regulation (GDPR) was introduced to all member communications / security customer data, and 31 information security and data protection, OTE Group • Continued the interventions in Physical Security, nations of the European Union. requests from the Hellenic Authority for companies have launched a series of information In Greece, the legal basis for processing these Electronic and Structural Improvement in 30 OTE security actions and projects, such as: Communications Security and Privacy (ADAE). In In this framework, OTE Group has thoroughly requests of lawful interception and data provisioning premises. • Encryption on critical databases. none of these cases any suspect finding was prepared for the new set of rules of GDPR. Prior to is Article 19 of the Greek Constitution • Managed the tender regarding the • Implementation of logging mechanisms in critical detected. the enforcement of the regulation, OTE Group had (Law 3115/2003 on the Establishment of ADAE, state-of-the-art Physical Security systems at the applications. high level of security mechanisms already in Moreover, OTE and COSMOTE handled 17 complaints Presidential Decree 47/2005 on the Procedures, new COSMOTE TV building. • Expansion of Database Activity Monitoring in operation, which were supervised by a Data from the Hellenic Data Protection Authority. Technical and Organizational Guarantees for the • Deployed the video verification project in 10 critical databases. Evaluation of automated Protection Officer. Moreover, OTE Group appointed confidentiality of communications, Law 2225/1994 additional Base Stations resulting in a total of 28 analytics tools. 150 employees to assist in the implementation of In 2018, Telekom Romania companies received and Law 3917/2011). Base Stations in Greece • Implementation of Mobile Device Management the GDPR rules. more than 200 requests, regarding data privacy • Carried out a tender procedure and signed new Platforms. issues. Specifically, in 2018, the Companies (OTE and 3-years Frame Agreements for Guarding Approximately 110 systems were reviewed using • Deployment of a Privileged Account Management COSMOTE) processed requests for: Services, resulting in optimization of operations the PSA process (Privacy and Security Assessment) (PAM) tool covering the entire OTE/COSMOTE IT Under the terms and conditions set forth in the • lawful interception on 5,682 telephone lines, and a yearly budget reduction of € 300,000. and documentation was adjusted, as required. The infrastructure. existing legislation, the companies process privacy • provisioning of external communication data • Continued the interventions in OTE Group's • Participation in national and international waiving requests, to the judicial and police authorities, on 14,773 telephone numbers, privately-owned branches in Greece, by

Sustainability Report 2018 31 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Privacy and Security Assessment (PSA) procedure cyber-attack defense exercises. • provisioning of subscribers’ personal data improving the physical security standards of 10 Awareness and Training 2.6 Security and Data Privacy allows OTE to review the security of its systems in • Implementation of email sandbox solution in from 11,183 telephone numbers, additional branches. Romania: Significant Data 2018 each step of the development process, covering the order for e-mails, addressed to OTE Group, to be • provisioning of subscriber personal information • Performed registration and mapping of existing In 2018, awareness and training programs were GDPR requirements for Data Privacy Impact checked for zero-day threats. from 1,187 IP addresses. security systems using the new Tablet App in 50 • 5 physical security incidents were carried out on Information Security, Data Privacy Assessment. • Expansion of the Data Leakage Prevention premises in Greece. recorded and managed. and Physical Security areas, and included: System in franchise shops. These requests are forwarded to the ADAE, who • Piloted physical access to OTE HQs using QR • 3,200 access control cards and 600 • Briefing regarding Physical Security, Information In addition, data protection notices were developed • Further expansion of the Identity Management includes them in its Annual Activity Report. codes. Evaluated further pilot programs and corporate badges were issued. Security and Data Protection during the for the Group services and more that 400 data System (Greece). selected the Bluetooth enabled method for • 3,074 access requests from which 122 introductory training of all newly recruite protection agreements were signed with partners. • Re-certification of the Information Security In Romania, the legal basis for lawful interception deployment at premises in Greece. access visitors to headquarters were employees. Management System in OTE, COSMOTE, Telekom and traffic data provisioning activities consists of managed by Security Dispatch. • GDPR Awareness trainings delivered to OTE Awareness activities regarding GDPR were Romania Communications and Telekom Romania Law 14/1992 on the organization of the Romanian • 60 physical security risk Group companies performed for the Management and first-line Mobile Communications (in accordance with Intelligence Agency, Law 51/1991 on National assessments were carried out. • Special security awareness campaign titled employees in shops and customer service. 5,500 Greece: Significant Data 2018 ISO 27001). Security, Decision 338/2010 of the President of • 54 security system upgrades were "Think - Check - Share" addressed to the employees participated in 46 face-to-face trainings carried out (52 for Telekom Mobile- employees. This project dealt with Security • Revision of Security Policy. ANCOM (i.e. Romanian regulatory body in information • 775 physical security incidents, and e-learning courses. video surveillance, anti-burglary, access issues such as: Data Security and Privacy technology and communications industry), Law of which 235 were characterized Monitoring and auditing processes are in place to control- and 2 for Telekom Fixed- - Physical Security issues Moreover, OTE Group customers can be informed 508/2004 on the organization of DIICOT (department as serious, were recorded and Data Protection and Security are of utmost ensure compliance with the security framework and Inergen fire extinguishing system only). - Data Privacy and Information Security about the ΟΤΕ Group Data Privacy Policy through under the Public Ministry in charge with investigating managed. importance for OTE Group. Ensuring data protection BCRP. For instance, in OTE and COSMOTE, user • Performed 51 physical security the corporate webpage and may exercise their the cases of organized crime and terrorism), the • 3,480 access control cards is more than just an obligation to comply with legal access rights are regularly reviewed and certified inspection on-site visits. Two electronic surveys related to Information rights through a dedicated channel. From the Criminal Procedural Code and Law 235/2015 were issued. and regulatory requirements and heavily reflects on and access to communications data is systematically Security and Business Continuity issues were 25/05/2018 until the end of the year, OTE and modifying the Law 506/2004 on processing • 2,915 requests for access rights the quality of the Group services. audited. addressed to a sample of employees to improve COSMOTE handled approximately 900 personal data and the protection of private life in were processed and 640 the field of electronic communication. OTE Group’s security practices. All OTE Group companies have adopted the Binding GDPR - related requests. Timely response to security incidents is also paramount accesscontrol failures were resolved. Corporate Rules on Privacy (BCRP). These Rules for OTE Group. A Security and Privacy Hotline was • 784 access cards to technical In addition, consent management processes were contain the key requirements for the processing of introduced, to support employees reporting any subcontractors were administered. revised and implemented in CRM systems, as well Relevant Web Page the personal data of OTE Group subscribers and security and privacy related incidents to the Security • 199 requests for access rights as portal and mobile applications. employees, in accordance with applicable Greek Operations Center that operates all year round, and keys for outdoor cabins were issued. and European legislation and ensure a high level of Also, pseudonymization was implemented for data 24 hours a day, 7 days a week. Physical Security • 595 alarms and 1,330 preventive protection for personal data. that are processed in Big Data infrastructure. provided that they present the required legal orders. In 2018, OTE and COSMOTE investigated 20 checks in outdoor connection Detailed information on surveillance measures are Indicative actions that were implemented in 2018 In May 2018, the General Data Protection customer requests, regarding confidentiality of cabinets and cabins, and 30 Aiming at continuous improvement on the level of available in the transparency report. are the following: Regulation (GDPR) was introduced to all member communications / security customer data, and 31 events-personal protection were information security and data protection, OTE Group • Continued the interventions in Physical Security, nations of the European Union. requests from the Hellenic Authority for managed. companies have launched a series of information In Greece, the legal basis for processing these Electronic and Structural Improvement in 30 OTE Communications Security and Privacy (ADAE). In • 2,370 checks of guarding stations security actions and projects, such as: requests of lawful interception and data provisioning premises. In this framework, OTE Group has thoroughly none of these cases any suspect finding was and buildings, 120 preventive • Encryption on critical databases. is Article 19 of the Greek Constitution • Managed the tender regarding the prepared for the new set of rules of GDPR. Prior to detected. checks for the detection of • Implementation of logging mechanisms in critical (Law 3115/2003 on the Establishment of ADAE, state-of-the-art Physical Security systems at the the enforcement of the regulation, OTE Group had explosives and 80 checks on applications. Presidential Decree 47/2005 on the Procedures, new COSMOTE TV building. high level of security mechanisms already in Moreover, OTE and COSMOTE handled 17 complaints subcontractors’ technical works • Expansion of Database Activity Monitoring in Technical and Organizational Guarantees for the • Deployed the video verification project in 10 operation, which were supervised by a Data from the Hellenic Data Protection Authority. were conducted. critical databases. Evaluation of automated confidentiality of communications, Law 2225/1994 additional Base Stations resulting in a total of 28 Protection Officer. Moreover, OTE Group appointed • 82 inspections in Group stores analytics tools. In 2018, Telekom Romania companies received and Law 3917/2011). Base Stations in Greece 150 employees to assist in the implementation of nationwide, 334 checks of premises • Implementation of Mobile Device Management more than 200 requests, regarding data privacy • Carried out a tender procedure and signed new the GDPR rules. for privacy assurance, 137 retrievals Platforms. issues. Specifically, in 2018, the Companies (OTE and 3-years Frame Agreements for Guarding of stores’ Closed Circuit TV of video Approximately 110 systems were reviewed using • Deployment of a Privileged Account Management COSMOTE) processed requests for: Services, resulting in optimization of operations surveillance recordings (CCTV) and the PSA process (Privacy and Security Assessment) (PAM) tool covering the entire OTE/COSMOTE IT Under the terms and conditions set forth in the • lawful interception on 5,682 telephone lines, and a yearly budget reduction of € 300,000. studies of physical safety in 58 and documentation was adjusted, as required. The infrastructure. existing legislation, the companies process privacy • provisioning of external communication data • Continued the interventions in OTE Group's stores were completed. • Participation in national and international waiving requests, to the judicial and police authorities, on 14,773 telephone numbers, privately-owned branches in Greece, by

Sustainability Report 2018 32 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

2.7 Business Continuity at Deutsche Telekom Group level. • Administration of multiple types of targeted OTE Group Situation Center training to teams with a business continuity Why it matters management (BCM) role. In 2018, through the OTE Group official • New approach of BCM involvement in Buildings point of reporting business continuity OTE Group customers require from the (Digital Desktop Exercises performed in the most incidents: Group to provide uninterrupted high- crowded buildings, new evacuation plans • 50 events of business continuity quality products and services. OTE Group developed for OTE HQs, Paiania, etc) were evaluated, strives for high caliber Customer Experi- • Implementation of risk assessment studies • 20 potential and minor events, ence and invests in the development of in critical services and buildings. which could affect the business mechanisms for the timely recognition • Successful event management and business continuity, were investigated, and treatment of situations that affect or continuity reporting for early prevention. • 9 outbound notifications were are likely to affect the business continuity • Collaboration with the General Secretariat sent to the Deutsche Telekom’s of the critical processes of the Group. for Civil Protection. Situation Center (providing safe travel instructions), Business continuity is considered critical and • 180 SMS notifications were sent OTE Group, in order to ensure the uninterrupted therefore relevant actions and initiatives are internally to targeted groups provision of quality products and services, aims to planned and implemented covering all Group (providing info about incidents). achieve maximum degree of resilience and ability companies. to cope with adverse and extraordinary circumstances. Awareness and Training

In 2018, OTE successfully completed the annual In 2018, awareness and training programs were Relevant Web Page audit of the OTE and COSMOTE Business Continuity carried out on Business Continuity areas and Management System according to ISO 22301:2012 included: requirements. • Briefing regarding Business Continuity during Major achievements in 2018 include: the introductory training of all newly recruited • Development of new / update existing Business employees. Continuity Plans (BCP for Shops, Customer • Special security awareness campaign titled Services Activities, Authorities’ Requests and BCP "Think - Check - Share" addressed to the in case of unavailability of Parnitha and Avlonas employees. This project dealt with Security Warehouses). issues, including Business Continuity. • Development of new / update existing Disaster Recovery Plans to reflect existing and new technologies. • Collaboration with Greek State Authorities to offer a civilian alarming system – Cell Broadcast utilizing COSMOTE Cellular network. • Implementation of all Business Continuity and Disaster Recovery Plans. • Expansion of Disaster Recovery assets to include additional mobile resources • Participation in business continuity exercises

Sustainability Report 2018 33 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

2.8 Integrated Management System processes and the service environment control delivered to ICT customers, in the context of Data Hosting Services and IT Service Desk Services. OTE Group continuously tracks, evaluates and optimizes the Integrated Management System In addition, the COSMOTE Environmental procedures, based on the Enhanced Telecom Electromagnetic Fields Measurement Laboratory is ENVIRONMENTAL Operations Map (e-TOM). certified according to ISO 17025:2005. ENERGY MANAGEMENT SYSTEM MANAGEMENT SYSTEM The Corporate Process Model and its systematic COSMOTE has authorized approval from the Greek ISO 50001 ISO 14001 documentation for assessment and improvement, Defense Ministry according to Regulation of form the basis of the Integrated Management Industrial Safety, “Government Gazette Β 336 - System (IMS) implemented in OTE Group. The 16.03.2005”. Integrated Management System comprised OCCUPATIONAL HEALTH & SAFETY certifications for: Finally, OTE and COSMOTE have been attested RISK MANAGEMENT SYSTEM MANAGEMENT SYSTEM • Integrated Management System according to the Principles and Guidelines for Good ISO 31000 OHSAS 18001 (according to PAS99:2012) Distribution Practice of Medical Devices (Decision • Quality Management No. 1348/04 of the Greek Ministry for Health and (according to ISO 9001:2015) Welfare). • Environmental Management PAS99 Integrated Management System (according ISO 14001:2015) The certified Management Systems for the largest • Occupational Health & Safety companies of the OTE Group, are presented in the (according to OHSAS 18001:2007) Appendix. ANTI - BRIBERY MANAGEMENT INFORMATION SECURITY • Information Security OTE Group SYSTEM MANAGEMENT SYSTEM (according to ISO 27001:2013) The Group's executives are systematically informed ISO 37001 ISO 27001 • Business Continuity Management by the Management Systems’ representatives ISO 9001:2015 Quality Management System (according to ISO 22301:2012) about the IMS’ actions, objectives and programs. • IT Service Management (according to ISO 20000-1:2011) Existing certifications and their respective expansion • Energy Management confirm OTE Group's continuous efforts to implement (according to ISO 50001:2011) international standards and practices. BUSINESS CONTINUITY • Risk Management ISO 22301 (according to ISO 31000:2009) • Anti-bribery Management (according to ISO 37001:2016) Relevant Web Page • Compliance Management COMPLIANCE MANAGEMENT SYSTEM INFORMATION TECHNOLOGY - (according to ISO 19600:2014) ISO 19600 SERVICE MANAGEMENT SYSTEM ISO 20000-1 The Integrated Management System of OTE and COSMOTE also includes certifications in accordance with ISAE 3402 (SOC 1) TYPE II and ISAE 3000 (SOC 2) TYPE II "Assurance Reports on Controls at a Service Organization" of the International Auditing and Assurance Standards Board by international auditing company. The certifications relate to the proper design and the efficient operation of the

Sustainability Report 2018 34 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

2.9 Awards and Memberships Environment, OTE Group received an award in the “Process Award” category for the "Terminal Equipment Refurbishment and Reuse Awards Program". Memberships

In 2018, OTE Group companies received a number OTE Group companies actively participate in of highly esteemed awards and distinctions for • Hellenic Responsible Business Awards, organized by Boussias Communications: OTE associations and are informed about the trends and their sustainability performance, some of which are developments on Corporate Responsibility and presented in this section. Group received the Gold Award in the “Built Environment -”Green’ Buildings” category for the Sustainability issues. In 2018, OTE Group companies maintained their voluntary participation, In Greece: “Cosmote e-Value Kerameikos Office Building”, as a "Green" building constructed in an through their membership in a number of strategically • Bravo Sustainability Awards 2018: OTE Group important national and international bodies. received an award for its “Materiality Analysis”, environmentally responsible approach. The project was managed by OTE ESTATE. in the category "Bravo Governance". More information is presented in the Appendix. • Environmental Awareness Awards ECOPOLIS • Business IT Excellence Awards 2018, organized 2018: OTE Group received two awards: by Boussias Communications: OTE Group - in the “Annual Program for the Environment” received four Awards: category, for "Circular Economy – the OTE - Gold in the “Special Applications for Companies Group Approach: Natural Resources and Waste in Branches/Banks” category, for “V-Banking: Management Program", and Digitalizing Customer Relations, powered by - in the “Environmental Research Project” Cosmote”, category, for "Virtual Microgrids for Smart - Gold in the “Redesigning Procedures & Services Energy Networks" (VIMSEN). of Public Administration” category, for “Digital Service Notification and Fire-Fighting”, • Environmental Awards 2018, organized - Gold in the “Digital Transformation / Business by Boussias Communications: OTE Group and ICT strategy connection” category, for the received two Gold Awards: “COSMOTE Digital Office”, and - in the “Circular Economy – Symbiosis Network” - Bronze in the “Solution Providers / Soſtware category, for the “Terminal Equipment Packages” category, for “e-Fuel Management”. Refurbishment and Reuse Program”, and - in the “Sustainable Business” category, for the “Sustainable Development Strategy of the OTE In Romania: Group”. • Gold CSR Index 2018: Telekom Romania and five other companies were the only ones out of • Awards for the Environment, organized by the several hundred analyzed in the CSR Index 2018 Greek Association of Environmental Protection study to have scored over 90 points out of 98 in Companies: transparency and involvement in the - In the Greek Awards for the Environment, sustainability field. This positions the company COSMOTE received an award in the in the Gold category. “Environmental Awareness” category for the educational program “Ctrl Shiſt Save the • Today's Leader who inspires Tomorrow's Climate! Information and Communication Generation: The sustainability team won the Technologies, our Allies in Climate Protection". trophy for Leadership in Parent-School - In the European Business Awards for the Communication 2017 for the "Electronic Catalog" project.

Sustainability Report 2018 35 3 Employees About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.1 Human Resources Management are able to develop their own professional paths. was well balanced at company level. This process This is achieved with employees getting in touch was benchmarked against similar models of other OTE Group provides a sustainable work with different groups of people, being exposed to IT and Telecom companies across Europe. In addition, environment that encourages employee different requirements, practices, tools and a series of JFM workshops took place in order to development, recognizes their high environments, by developing new skills and by inform, involve and engage all Directors and Senior performance and promotes collaboration, gaining valuable experience for the future. Managers, and receive their feedback and insights. The company wide JFM roll-out will take place in innovation and a growth mindset for its the first quartile of 2019. people. Operational Framework The principal framework of OTE Group’s Policy on Also, in the beginning of 2018, the organizational In an era of constant changes, where digitization Employee Relations, advocates principles such as module within the Human Resources Management plays a key role in the workplace, the role of HR in respect for human rights, fair labor, abatement of System (SmartHR) was successfully launched and OTE Group is fully aligned with the company’s discrimination, equal treatment for men and is currently in full use. The new integrated system strategic objectives. women, and combating child or forced labor. contributes to the implementation of organizational changes within the Group, provides consolidated By fully aligning with these objectives, in 2018, OTE The scope of responsibilities and duties framework reports and facilitates day-to-day operations. As a Group developed new human resources (HR) digital of the Group's Chief Human Resources Officer result, the SmarHR contributed to the increase of tools and systems (smartHR, HRDigiflow, Digifile) Business Unit comprises: employees’ and managers’ satisfaction and leveraged and re-designed internal processes. As a result, • HR Competency Centers (Development Centers, the cultural shiſt towards the principles of trust, data consistency, speed, simplicity, flexibility and policies, systems and procedures), empowerment and autonomy. effectiveness of HR-related tasks are ensured. • HR Business Partners (contact point between Moreover, the majority of HR related tasks and human resources and all other business units), OTE Group re-designs its organiztional structure approval flows was made accessible through a • HR Business Partner Operations (unit safeguarding model, so as to be able to respond faster and more mobile application, which improved employee compliance, labor law and legal regulations), efficiently to its customers’ ever-changing needs. All experience and further reduced bureaucratic • HR Shared Services (unit dealing with HR's necessary actions are taken towards a leaner procedures, approval time and use of paper. operations such as employees’ and employment structure, with fewer management roles at all data updates). levels. Thus, the dual career ladder concept (expert At the same time, OTE Group set the basis for vs. manager) of the new Job Family Model has been virtual collaboration between teams. Virtual The Chief Human Resources Officer, who is responsible introduced and implemented, where appropriate, collaboration tools, digital learning platforms and for the overall management of HR issues, is a and the Middle Management Framework, which other custom-made programs, for digital skills member of the Management Team of OTE Group. provides the guiding principles for the organizational development, were introduced, to enhance digital structure development and redesign, was initiated literacy of all employees (Digital Heroes, Digilab in 2018. etc). Organizational Transformation and Effectiveness Moreover, the Group fosters a growth attitude for During 2018, the new Job Family Model (JFM) and its employees, by investing in employees’ lifelong the unique roles identified and allocated in the Job Award learning capabilities and encouraging them to Family levels were further tested. To ensure validity acquire new skills and experiences. In that context, and accuracy, the tests were realized in cooperation OTE Group received a Gold award in the during 2018, OTE Group developed Job Rotation with Line Management representatives in cross category “Most Innovative use of Technol- Programs by encouraging employees who had functional workshops. At the same time, the first ogy in HR” of the HR Αwards 2018, for the already gained experience in their current role and phase of allocating employees to roles was completed Digital HR - A Smarter Workplace For You demonstrated their potential and willingness to in collaboration with Management executives. grow, to take up new roles or participate in new Several review cycles were conducted, both within projects. Through these rotation programs, employees and across functions, to ensure that the allocation

Sustainability Report 2018 37 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.2 Employment

On December 31st 2018, OTE Group employees Significant Data for 2018 Internships Greece: Significant Data 2018 numbered 18,630*. 18,630 Greece 12,419 98% of OTE Group employees were employed on employed at OTE Group 578 employees indeterminate term contracts. 98% university and technical school students 99% with dependent employment on indetermi- completed an Internship at OTE Group in with dependent employment on Women constitute 40% of the Group’s employees. nate term contracts 2018 indeterminate term contracts OTE and Telekom Romania Communications 72% > 2,500 39% employ a large number of technical personnel between 31 and 50 years old young men and women selected OTE women (6,068 employees), the vast majority of whom are 2% Group Internship programs in the period 76% men. with disabilities 2014-2018 between 31 and 50 years old

Having always as a priority to improve its employee 67% 175 in Greece Romania recruitments experience, OTE Group remodels and enhances the operation of the OTE Group Employees Service 35% 44 505 Center, “MyHR”, which was launched in 2015. MyHR fieldwork staff (mainly technical) students completed an Internship at departures manages queries on issues and processes regarding 11% Telekom Romania in 2018 human resources, while its services are regularly in positions of responsibility updated and enhanced to provide prompt and Romania: Significant Data 2018 quality service to all employees. 6,211 In 2018, MyHR received more than 97,000 Departures employees requests from approximately 7,500 employees. The Recruitments 1,459 94% most recurrent requests that MyHR dealt with, were with dependent employment on employees leaves of absences and updates of employees’ 967 indeterminate term contracts family status. MyHR Center was evaluated, 70% employees receiving a high satisfaction rate of 8.3/10. through voluntary exit schemes 43% 47% women 19% women In 2018, voluntary exit programs with financial above 50 years old 63% 58% between 31 and 50 years old incentives were implemented in Greece and Romania, below 30 years old aiming at further rationalization of human resources 792 and the respective labor cost, as well as at the 15% recruitments employed internally within OTE Group creation of a flexible and efficient organization. In a 954 difficult macroeconomic environment 282 employees departures in Greece and 743 employees in Romania, accepted the incentives offered by the socially responsible program and leſt the Group. Relevant Web Page Aside from financial incentives, the companies provided to the employees who leſt the Group personalized support throughout the process, Group * OTE Group HR activities presented in this Chapter refer to OTE, COSMOTE. GERMANOS, OTE Globe, OTE Academy, private health insurance and preferential offers on COSMOTE e-value, Telekom Romania Communications and Telekom Romania Mobile Communications employees. products and services of the Group.

Sustainability Report 2018 38 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.3 Fair Employment Policy In 2018, there were two strikes (lasting one day OTE Group respects the importance of avoiding collective labor agreements, at € 770.10, which is 29% each) by OTE Group employees, regarding general unlawful gender discrimination. In 2010, OTE Group higher than the national minimum wage in Greece. Framework and Equal Opportunities claims of Greek employees due to the financial was among the first companies to issue a quota on The additional severance payment, aſter the conclusion situation of the country. the employment of women in management positions. The OTE Group Fair Employment Policy is based The quota focused on the Group aiming that at of the latest Collective Labor Agreement (CLA), is granted to OTE employees under the same terms on the respect of human rights, in accordance Combating Discrimination, Equal least 30% of the upper and middle OTE managerial and conditions (based on the years of service and the with the following: positions would be held by women by the end of Opportunities and Diversity hiring date) without discrimination based on gender. • The national regulatory frameworks in countries 2015. OTE Group is proud to state that the target The Code of Conduct and OTE Group Code of of operation and the EU has been achieved. Human Rights and Social Principles constitute the Parental Leave for Childcare and Family • The United Nations Global Compact framework guide for the behavior of all OTE Group Furthermore, in 2010, OTE Group, OME – OTE (OTE’s Protection • The OTE Group Code of Conduct employees. They connect the Group’s respect largest Union) and UNI (Union Network International) • The OTE Group Policy on Employee Relations OTE Group companies provide pregnancy, maternity towards laws and regulations, together with specific signed a global agreement for the prohibition of • The OTE Group Code of Human Rights and Social and parental leave to care for children that are commitments relating to ethical behavior. discrimination on grounds of gender, race, religion, above the minimum leave set by law. Principles political opinion, etc. Combination of the two, together with the five Parental leave, which is considered and paid as Companies’ induction programs for new employees Guiding Principles, underpins the Group's success. In that direction, local and international Human working time, is provided to working mothers or include a separate section on Compliance issues, on Priority in formulation of all OTE Group’s Human Resources executives (from OTE and DT Group) have fathers, immediately aſter the end of maternity leave. the Code of Ethics, Sustainable Development, as Resources policies is meritocracy, transparency and set up working groups to promote a culture of well as on internal policies of the Group. non-discrimination. These values govern all decisions inclusive transformation that embraces diversity, In Greece, aſter the enactment of a relevant law, and actions related to issues, such as hiring, wages, accelerates innovation and empowers trust and high use of child care leave has been extended to male Freedom of Association and Collective employee growth and development and contract performance. These communities have been employees, under the same conditions, regardless Labor Agreements maturity. established for the exchange of ideas and best of the type of activity performed by their spouse practices, among the countries - members of the DT (e.g. self-employed, unemployed). In March 2018, two new two-year collective labor Promotion of diversity and the harmonious synthesis Group. Moreover, OTE and COSMOTE employees who have agreements of OTE and COSMOTE employees, were of different skills, talents and experience of children with a disability of 67% or more receive signed with similar terms, valid from 1 January employees, for both men and women, add extra In 2018, the Chief Human Resources Officer additional days from those provided for by law (a 2018 until 31 December 2019. value to the Group; thereby ensuring its OTE Group participated in the “Game developmental perspective, while respecting the Changer in Women of Influence” total of 12 days), for the monitoring of the Similarly, a two-year collective labor agreement of society in which it operates. conference. Women’s empowerment in the performance of children. The days are granted to Telekom Romania Communications was signed in mothers and fathers without discrimination based OTE complies with the Hellenic Corporate Governance new digital era and the valuable women’s February 2017, valid until 1 March 2020, and a on gender. (HCG) Code, which states that “the board should be inherent skills for technology field were two-year collective labor agreement of Telekom diversified as to gender and include a diversity of highlighted, among others. Romania Mobile Communications employees was skills, views, competences, knowledge, qualifications 428 women and signed in April 2018, valid until 1 March 2020. and experience, relevant to the business objectives Non-discriminatory Compensation 301 men employed in OTE Group made All signed Agreements safeguard the employees’ of the company. Within such context, the company OTE Group ensures that there is no gender use of parental leave for childcare job positions in the event of financial or technical should pursue the optimum diversity, including discrimination in compensation policies. The 52 women and reasons and regulate payroll issues, leaves, benefits, gender balance, in the composition of its board and remuneration ratio between men and women gains 5 men employed in OTE Group made use compensation, employees working hours and senior executive team.” is 1-to-1. of parental leave without pay health and safety issues. In OTE Group companies, the salary of employees is 31% determined by their level of education, years of Additional Days of Sick Leave in Case of of the employees with position of 100% employment and the level of the position they hold. responsibility are women Serious Diseases of employees, working within the 4 largest The minimum (basic) salary is adjusted according to OTE Group telecom companies, are covered 20% the salary category the employee belongs to. In the latest Collective Labor Agreement of OTE and by collective labor agreements of OTE Group Management Team COSMOTE, it is stated that in case of serious members (out of 15 members) are women Indicatively, the minimum (basic) salary for secondary diseases, employees are entitled to 60 working education graduates is set by the applicable days (instead of 30 days) of paid sick leave.

Sustainability Report 2018 39 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.4 Health and Safety The “NEXT TO YOU” 24/7 helpline, assisted by Health and Safety Committees are composed of Health and Safety Performance psychologists, was developed for all those in need elected representatives of employees. According to For OTE Group, Health and Safety issues are of daily support, in, or outside the workplace. current legislation and taking into account issues OTE Group monitors its performance in order to considered vital for a successful and sustainable and procedures related to the promotion of Health identify areas for improvement, to record its progress future and have a direct impact on employees’ Health and Safety Policy and Safety at workplace, several meetings were and to implement health and safety best practices satisfaction, well-being, quality of work and held in 2018, at regular intervals, with Management’s based on European and International standards. corporate culture. OTE Group Health and Safety Policy aims to assure representatives. The Health and Safety Unit is all operational units of the Group with the following responsible for overseeing and providing advice on In 2018, Health supervision and Safety inspections In that direction, OTE Group companies act actions: issues related to employees' physical and mental of employees remained at high level as in previous proactively to ensure a safe and healthy work health. Moreover, it ensures the creation and years, surpassing the number of inspections environment and adopt new practices in prevention • Compliance with legal and regulatory requirements maintenance of a safe workplace environment. mandated by law. In 2018, there were non-fatal of mental and physical health. In this framework, • Prevention and assessment of occupational risk work accidents. legislation, respective management systems • Audits and inspections for compliance with safety standards and international best practices have measures at first line workplace 22,887 hours of training in health and Regarding preventing workplace accidents at field, been taken into account. • Provision and implementation of medical screening, safety (Greece) emphasis was given to the training program for health and mental support services and first aid 4.39 hours of training in health and increasing employees’ awareness against falling The annual communicational program of Health support safety per OTE Group employee from a portable ladder (over 1,800 field technicians and Safety actions, "Live Better", focuses on a • Management and investigation of workplace trained in the use of personal accident prevention holistic prevention and health promotion approach, 1,921 hours of psychological support accidents and incidents consulting services (Greece) equipment). based on the Group’s vision. In 2018, OTE Group • Expansion of the international Health Management designed and implemented actions aimed at and Safety standard, OHSAS 18001 and employees’ prevention, education and enhancement transition in OHSAS 45001 Awards of their awareness, while cultivating a Health and • Simplification, alignment, and digitization of 15,369 hours of technical inspections Safety culture and lifestyle. OTE received the: internal processes hours of occupation health 10,689 • Systematic training and awareness of employees inspections By promoting mental and physical health on Health and Safety issues with personal “Healthy & Safe Workplace” Gold improvement and work-life balance, OTE Group involvement and responsibility 103 employee injuries Award in the activities at work aims at optimizing its performance on core indicators • Creation of Emergency Incident Response groups establishments category of absentee rate and overall employee satisfaction. with regular evacuation drills • Operation management and implementation of “Health & Safety Culture” Gold Award Critical parameters of Health and Safety issues at hygiene standards model (HACCP) on employees’ in the activities for building Health and work, such as mental / physical well-being and dining areas Safety Corporate Culture category work - life balance, are evaluated by employees, • Management of Blood Donation Bank of OTE These awards establish OTE Group as a through the Employee Satisfaction Survey. Moreover, Group pioneer in implementing best practices to additional internal surveys (via questionnaires) • Consultation between Management and employees, balance work and personal life through the were used to assess employees’ satisfaction on through 62 regional Health and Safety promotion of physical and mental health. Health and Safety issues. These applied to the Committees. participants in wellness activities and the employees using food services in restaurants/canteens, in central premises.

It should be noted that OTE Group remains focused on empowering and supporting both employees and members of their families, by adopting Employee Assistance Programs.

Sustainability Report 2018 40 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Awareness and Prevention Briefings on Health issues In 2018, emphasis was particularly given to Health and Safety issues related to prevention and “Live better…" is a long-term health and safety program that includes a series of actions, updated on a yearly basis. The aim of the program awareness of employees, while training programs is to promote mental, physical health and wellness of employees at all levels of business, regardless of the field of their activity. Aside from on that direction were carried out. The annual health, wellness and safety actions, the program is aligned with the corporate vision, “create a better world for all”. In 2018, over 3,500 awareness action plan was based on the review of employees benefited from actions outlined below: Health and Safety KPIs and performance results. The selection of the programs was mostly based • Roadshow in retail stores nationwide. Employees of first line support (salesmen) had the opportunity to carry out medical tests and received on: helpful advice from OTE health expert team and psychologists on topics such work-life balance. • the feedback from the monitoring and inspection • Over 1,300 employees participated in “Wellness Groups”, which consisted of: activities performed by the occupational health - Sessions with dieticians and health advisors at 14 cities nationwide physicians and safety technicians, - Mild physical exercise in central premises • the analysis of workplace accidents factors and • First Aid training programs for employees in 6 premises where an AED (semi automatic defibrillator) was placed the evaluation of the incidents, • Health checkup tests for skeletal health and vascular system in 4 premises • the modulation of new Health and Safety culture • Ophthalmological test with the use of Vision test medical equipment in 9 premises. The results of the tests were evaluated from an focusing on wellness. occupational physician, aiming towards the early diagnosis of visual problems. • Daily Health Event for Breast Cancer Prevention, Diagnosis and Treatment by resenting early diagnosis methods and holistic psychological The aim was for employees to receive information approach. for ensuring their compliance with the Health and Safety standards at work. The information provided, In 2018, the participation of employees in Health and Safety actions was registered through an e-booking tool. The tool serves employees in allows them to adopt best practices on Health and real-time, autonomously, instantly and flexibly. Safety issues that can be applied with precaution in their everyday life. Briefings on Safety issues Briefings on Psychological Support Consulting Services In 2018, over 3,500 employees attended Safety training programs: • A new 24/7 helpline, called “NEXT TO YOU”, • Safety-at-work program to prevent falling from a portable ladder (concerns field was developed to empower employees technicians and Personal Protective Equipment -PPE- use through Advanced and their families, in their everyday life. Certification in TelecommunicationsTechnologies program). Calls to this helpline are free of charge • Safety-at-work program for electrical installations and equipment low and and can be made 24/7, all year round. medium voltage. The anonymity of the user and the • Height Fall Protection training program for the approach of telecommunication confidentiality of information are assured. towers under adverse weather conditions. Moreover, through the helpline, employees • “Using Personal Protective Equipment, work safely” training program. and their families have quick, easy and • Incident response teams training and fire safety. reliable access to an extensive database • Safety at work- workplace accident prevention (concerns PPE use). of specialized social organizations • On-site safe driving training for field technicians in a specially designed driving nationwide. area. • Over 360 employees had the opportunity • Safety at work for infrastructure development projects at field (concerns support to receive helpful advices and counseling technicians who monitor the progress of these projects through S.T.E.P program - from psychologists in order to apply School for Technical Projects). proactive methods on their daily work life environment.

Sustainability Report 2018 41 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.5 Employee Selection, Attracting dedicated digital platform was developed, where all interview and final selection. The process is The Group’s external talent program is entitled employees can refer to for relevant information and supplemented by an assessment exam, which, if “COSMOTE Graduate Trainee Program”. The and Retaining Talented Employees training material. required, takes place in collaboration with an program targets talented young university graduates, external consultant. In 2018, 141 positions were who have ambition, passion and are willing to OTE Group's approach to human resource New employees with management responsibility internally filled with OTE Group employees. develop their career within OTE. The program’s 1st development is based on the Guiding Principle undergo specific training on how to evaluate their cycle was completed in 2017. Since then, the 10 As of 2017, employees have access to the corporate "Best place to perform and grow”. teams and create individual development plans. In Graduate Trainees have been placed in job roles digital job search platform ”HR-Suite”, where they 2018, 71 newly appointed managers attended the within key business functions. Performance management, recruitment, selection relevant Performance Management training. can apply for positions within OTE Group and of suitable candidates for the right positions, retention explore international career opportunities within Another talent program, addressed to employees and talent management form OTE Group's profile In Romania, the Performance Management System Deutsche Telecom Group. HR-Suite is based on a within the GERMANOS Franchise Retail Stores as a modern and attractive employer. was enhanced by integrating a 360° Feedback cloud system which combines and interconnects Network, is “G-Talent Review”. The program aims at process, focusing on collaboration and communication. different HR products in one HR IT System. identifying a “pool” of high potential talents within Performance Management In 2018, 67,164 feedback forms were completed. the retail network, who have the drive and ambition The new staff recruitment process involves interviews to join OTE Group in a job role, which matches their and corresponding assessment activities with input Performance management is a fundamental tool, Top Management Performance profile and preferences. The program’s 3rd cycle from external consultants where necessary. In 2017, not only for identifying the work output and Evaluation started in June 2018 and a total of 20 employees 826 employees were hired by OTE Group companies. contribution of employees and executives, but also are now part of a “talent pool” for future job vacancies for initiating and supporting the creation of solid In 2018, the multidimensional, holistic and It is worth mentioning that more than 6,000 within OTE Group. individual development plans. transparent evaluation system for the executives of candidates sent their CV at OTE Group’s database, Moreover, in 2018, as part of the Deutsche Telekom OTE Group companies, “Performance Dialogue”, expressing their interest to join the Group. An annual performance evaluation of employees on was applied for the fourth consecutive year. Group talent management initiatives, a total of 157 all hierarchical levels is conducted. OTE Group’s In 2018, the Group actively participated in more employees in Greece and Romania from OTE Group performance management system reflects the The system includes evaluation by superiors, than 18 career events and job fairs organized by successfully joined the “Global Talent Pool” high-performance culture that the companies self-assessment and feedback from peers and public and private educational institutions, thus program’s 2nd cycle. The program aims at cultivate. The system reinforces the need for excellence team members. The evaluation results are considered enhancing its employer of choice profile and identifying high performance and high potential in customer experience and adopts the OTE Group for actions on management succession and attracting new candidates. OTE Group invests in employees throughout DT Group, who are Guiding and Leadership Principles. individual career development. building strong relationships with the University internationally mobile and would potentially be community, in Greece and abroad, to attract scarce willing to re-locate (either to undertake a short In 2018, the Performance Management System Employee Performance Evaluation resources with specialized knowhow. project or job exchange, or take on a new role). was redesigned and simplified. Specifically, in 2018 During the 12 months of each cycle’s duration, common performance management evaluation 100% Talent Management talents get the opportunity to create a wide elements for all were adopted, by introducing OTE, COSMOTE, GERMANOS and COSMOTE international network of professional contacts, individual targets to all employees. Moreover, e-Values employees OTE Group systematically invests in identifying and participate in contemporary learning / training competency evaluation was simplified by maintaining developing young talents. In this context, the Group initiatives and get one-to-one career consulting. the Guiding Principles for all and the Leadership Employee Selection has designed contemporary talent management Principles for those employees who have programs, each addressed to a different audience. management responsibility. The aim of OTE Group is to select the most suitable The Group’s internal talent program for young candidates for each position. Selection is based on Adhering to sustainability principles, such as the employees is entitled “you.grow”. Τhe program’s 1st transparent and merit-based criteria. The Group treatment of employees with respect and integrity, cycle was completed in 2017, during which, the 9 Award aims to be the employer of first choice and offer all is part of the annual performance elements being employees selected took a 16-month job rotational, candidates a positive experience, regardless of the evaluated. developmental “journey”. Aſterwards, all the OTE Group received the Silver award in the outcome. participants took on job roles consistent with their category “Talent & Performance To ensure common understanding and enable The recruitment process for internal positions qualifications, their personal preferences and the Management” of the HR Αwards 2018, for evaluators and employees being evaluated, a involves internal announcement of job openings, company’s needs. the creation of Development centers.

Sustainability Report 2018 42 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.6 Employee Training and Skills 2018 Representative Training Programs in Greece Development

WhyWhy it matters…it matters… ACT2 – Advanced Certification in Keep On ACHieving (K.O.Ach) Digital and blended learning Telecommunications Technologies This 3-day custom Leadership Skills Training OTE Group invests in alternative training Employee training and skills development of It is an ongoing education and skills’ for Technology Team Leaders aims to methods with emphasis on digital learning. OTE Group employees is a prerequisite for the development program in Telecommunications promote a mindset of change and growth. It OTE, COSMOTE and GERMANOS employees sustainable development of the Group. OTE Technologies addressed to field technicians is conducted in a blended learning method are offered the opportunity to develop their Group aims to excel as a working environment and telecommunications engineers. In 2018, that combines face to face, online training Business, Office and IT skills via platforms and where everybody is able to perform at their 52 employees attended the program. and on the job practice. It took place in 4 cities have access into digital eBooks. At the same full capacity and develop professionally. Height Fall Protection program on a and a total of 151 team leaders were trained. time, English and German language learning ladder/pole took place in 42 cities all over Correspondingly, 19 Technology Section is supported via online, interactive and In accordance with the needs of the Group and Greece and 1,689 technicians in total were managers were trained in coaching skills in self-study programs (Global English Program technology’s prospects, programs that upgrade its trained. order to sustain the Mind growth of Team and Global German Program). emploees‘ existing skills (Upskilling) and teach new Leaders. ~200 trainees attended blended courses in ones (Reskilling) are being designed and ACT2 for Non Techs subject areas such as Project Management, implemented. Moreover, leadership skills Its aim is to familiarize employees with the Leadership Programs YouLead / Exelixis Data Mining and Machine Learning and other development tools are provided to executives with fixed and mobile network in a simulation In 2018, the leadership programs for empowering ICT training programs. team management responsibility. environment. In 2018, 117 employees young executives with team management All required actions for the design, implementation enrolled. responsibility were resumed. Additionally, the and evaluation of employee training programs are leadership capacity development programs Digital Heroes described in the "Managing Human Resource Simplicity for experienced frontline executives were The program started in March 2018, with Training" process, which is available to all The program was designed to address the continued. approximately 300 “heroes” that share thoughts employees through the corporate intranet. complexity of the companies’ daily operation The Group's leadership programs Exelixis 1 and experiences on issues related to digitalization. and put in practice the principle "my priority is and 2 based on the corporate values of the Besides in-classroom training courses, OTE Group, as A kickoff event was organized to make them the customer's enthusiasm, make things Group and characterized by a dynamic, familiar with notions like Internet of Things and the largest technology company in Greece, striving simple in my everyday life". The program, experiential and participatory learning process to enhance digital and life-long learning, provided its which combines theory and practice, continued Artificial Intelligence. Moreover, a “Collaboration were completed in 2018. In total, 1,033 employees access to digital learning platforms, in 2018, with the participation of 81 tools” training was designed to familiarize them employees. middle managers participated. offering them a wide range of training modules. with the knowledge and use of new digital tools.

It is remarkable that in the last 3 years B2B Power Performance: METEXELI ΧIS (2016-2018), the insertion of the digital platforms Expertise-Solutions- Simplicity In 2018, this new Leadership Program was and the new HR Suite Learning functionality, Under the B2B Power Performance training designed and implemented in order to make operating in Greece, have notably increased the umbrella, this program aims to train sales OTE Leaders aware of the corporate culture 236 OTE Group employees in Greece and digital learning hours by about 39%. employees in off-the-shelf products and and change mindset. The program prepares Romania were certified in classes of customized ICT solutions for business leaders to become “digital’’ and able to lead certification by equipment providers such as hours of training 269,831* customers. In 2018, the Module Security virtually. In 2018, 62 employees participated Cisco, Alcatel, ΗP, PMI, CISA, HUAWEI 64% of ΟΤΕ Group employees were trained course was designed and successfully in the training, which is expected to be (67% of total male employees and 60% of implemented with the training of 199 participants. resumed in 2019. female employees) The B2B Power Performance training is Relevant Web Page 26,692 participations in training programs expected to be resumed in 2019. 14.22 training hours per OTE Group employee

* These training hours were recorded by the HR Departments of the companies.

Sustainability Report 2018 43 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

3.7 Employee Communication, Representative Programs for Employee Commitment, Engagement and Change Management Engagement and Satisfaction

Growth mindset culture, cross functional The Growth Lab “Welcome on board” for newly hired COSMOTE Awards collaboration and open communication, shape In 2018, all employees had the opportunity to employees COSMOTE Awards were designed and the culture of OTE Group. take part in an eight-week massive online The induction program for new OTE Group implemented for the first time in 2018. The open course (MOOC) program. During the employees in Greece, which started in 2016, aim was to highlight the contribution of the Employee Engagement program, the employees who participated continues with a new design and a five-day employees to critical corporate projects that worked in cross – country teams and duration. It is an experiential training for are fully aligned with OTE Group’s strategy. The aim of OTE Group companies is to employ transformed their own innovative ideas into familiarization with technology and customer According to the procedure of the program, all dedicated personnel and attract the best candidates. actual prototypes. The LAB-platform offered a experience (ACT2 for non-Techs, VC2X), as employees had the opportunity to present the For this purpose: flexible learning environment, where everyone well as visits to frontline operations (retail most important project that they worked on, • Employees are systematically informed on could browse through all content resources on network, call centers, field). This gives the during the previous year. All projects could be strategic, technological, and commercial issues, their own, access videos in the digital library, opportunity to new employees to understand submitted for evaluation in one of the through the use of the internal communication’s comment on creative submissions of their specific corporate functions and the daily following categories: Technology & IT available resources and via regular meetings peers, or participate in inspiring discussions in routines of their colleagues. In 2018, more Leadership, Driving Growth, People & within the units. the online forum - anytime, anywhere and on than 90 employees of OTE, COSMOTE and Collaboration, Customer Experience, Digital & • Programs and workshops are planned and any device. More than 1,600 OTE Group GERMANOS attended the program. Innovation, Cost Efficiency and Sustainability. implemented in an experiential and interactive employees in Greece and Romania In total, 104 projects were submitted and way. participated in this growth learning journey. evaluated by members of the management • All members of the Management Team meet team. Eight of these projects stood out and annually to disseminate the corporate strategy were awarded at the annual Management and corporate objectives. “Syntonizomaste” - “To be tuned” 1st Internal COSMOTE HACKATHON Team Meeting ceremony, with a €5,000 prize • Actions are being implemented to enable An experiential workshop for the diffusion of The aim of the 1st Internal COSMOTE each. adherence to corporate behavior and leadership strategy, corporate objectives, and the support of HACKATHON was to infuse a startup mentality principles in the daily companies’ operation. changes. Employees collaborate in groups and within the company, strengthen cross-company • Regular employee surveys are carried out to discuss about creative issues on strategy and and cross-functional collaboration, and be a assess the degree of job satisfaction and to be effective cooperation in their units. In 2018, mindset-changing experience for project teams used as diagnostic tools to maintain the so as to 714 employees of OTE, COSMOTE and and participants. This engagement initiative strengths and identify areas for improvement GERMANOS participated in the program. pursues an inclusive "Everyone is an Expert" actions. approach and adopts a format of open innovation. The competition also permitted participation without the need for coding and therefore allowed the creative process to Award overcome a common constraint for most of the teams due to the scarcity of IT experts. OTE Group received the Bronze award in Collaboration was developed in-house across the category “Best Team Building Program silos using a Digital Collaboration platform to of the HR Αwards 2018, for the facilitate an agile approach with the company’s “Syntonizomaste” program own resources. The project participation was expanded to 12 companies within OTE Group of Companies. More than 1,200 employees registered at the Hackathon mini site and from those 589 registered for the competition, submitting 131 project ideas.

Sustainability Report 2018 44 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Internal Communications Employee survey is a dynamic reliable diagnostic Greece: Significant Data 2018 Romania: Significant Data 2018 tool, which identifies possible improvement actions OTE Group aims to maintain transparent and and changes and helps the units design their future interactive communication with its employees, The main objectives were the strategy • 50 issues of weekly newsletters were plans. It evolves to reflect elements of the strategy utilizing a range of communication platforms. cascade, the brand enhancement and the sent to more than 6,300 employees. and the objectives of OTE Group, as well as trends The aim is to promote knowledge, teamwork, employee engagement. The tools and • > 600 articles were communicated that dominate the external environment. It is participation, and a two-way communication platforms utilized were: • 43 internal campaigns and other support utilized to determine and analyze trends regarding channel. activities for the employees were cultural and strategic topics. • OTE Group Newsletter realized. Α weekly newsletter, with 92% average open The survey results are announced on corporate rate among OTE-COSMOTE employees. During intranets and discussed extensively in meetings 2018, 48 editions were sent out and over 240 held at the level of organizational units across the Indicative Internal Communications corporate news items were covered. Employee Satisfaction company, encouraging dialogue and feedback. Campaigns and Employee Engagement • mynet.gο Programs The first mobile application for The OTE Group employee satisfaction surveys have The high level of participation in the survey produces OTE-COSMOTE-GERMANOS employees was been established as part of its workplace culture. reliable results and generates an open dialogue for • “1st Internal COSMOTE Hackathon”, officially launched in October 2018. mynet.go Recognizing the benefits of the surveys, the “Pulse” all employee levels. a digitalization and innovation competition aims to simplify employees’ workday, acting Survey is conducted two times a year, while the for employees. as a mobile gateway, which integrates Employee Satisfaction Survey every two years. The feedback culture of OTE Group is also • Motivational campaigns to participate in corporate info and applications/services. demonstrated by the employees’ participation in corporate volunteering actions and Around 5,000 employees downloaded the app Participation numbers remain high throughout the other surveys, such as the Compliance Based companies' social initiatives, such as the in just two months and more than 900 use it Group. In 2018, in Greece, 75% of the employees Corporate Culture Survey and the Employee Athens Classical Marathon, the Blood on a daily basis. participated in June’s Pulse Survey and 79% in Commuting Survey, which were conducted in 2018. donation program (see the section on • Intranet – “mynet” November’s Pulse Survey. In Romania, 80% of the Employee Volunteering). The unified Intranet portal for all OTE, employees participated in the November and June’s • Customer Care Program “The Grand COSMOTE and GERMANOS employees. One Pulse Survey. Cosmotel room 2018’’ for the Group’s Call out of three employees visit the intranet on a Center employees. daily basis and 100% of employees visit it at The high participation displays the strong interest • “Cosmoplay’’ Program for all the employees least once a month. 65 news items are of employees to engage and express their views on in the Greek Retail Network. published on a monthly basis. important issues which affect their working • Special Educational Robotics Day for • Campaigns and below the line environment. employees’ children. activations • Awareness campaign about employee 24 full scale campaigns and more than 8 Digitization, Innovation, Engagement and People satisfaction surveys. below the line activations across Greece were Development are some of the survey areas reflecting • Campaign for COSMOTE Awards internal implemented. the Group’s vision and giving the direction for contest. • Engagement programs changes that will be launched in the future working • Awareness campaigns about compliance 4 different engagement programs were environment. The latest surveys showed that OTE issues. designed, coordinated and implemented: 2 Group invests in digital human resources tools, as • BCM and Information Security Campaigns, programs targeted front-line employees well as empowers and supports employees to aimed at increasing awareness for Telekom (7,300 employees) and 2 the entire workforce. participate in DT’s Growth Mindset initiatives. Romania’s employees regarding security of The average satisfaction rate was over 85%. their work • Corporate events Over 23 cross-group (DT), cross-company or functional corporate meetings were designed and organized for over 2,250 participants.

Sustainability Report 2018 45 4 Customers About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

4.1 Connectivity for All Greece Romania Greece The Group contributes to achieving the 2020 As a result of its extensive investments, OTE Group At the end of 2018, Telekom Romania’s network households and Digital Agenda targets by investing in the currently holds the largest fiber optic network in coverage reached 93% of the population. Telekom > 3 mil. businesses with access to internet upgrade and expansion of its telecommunications Greece. COSMOTE Fiber expands over 43,000 km in Romania modernized its radio access network and speeds up to 200 Mbps infrastructure. route length, enabling more than 3 million continued to make investments in order to adjust to households and businesses to enjoy internet the requirements of 5G technology implementation. > 43,000 km fiber optic network OTE Group has the ability, expertise and financial speeds of up to 200Mbps and advanced broadband The company constantly optimizes its network to route length basis to continue to support Greece’s transition to services via fiber optics. In 2018, OTE initiated the ensure that quality services are delivered to the new digital era. roll out of its Fiber-to-the-Home (FTTH) network, customers > 98% population coverage offering internet speeds of up to 1Gbps. by 4G network OTE Group heavily invests in New Generation According to independent audit company P3, Networks by creating infrastructure which will boost OTE Group, as part of its mobile telephony services, Telekom Romania achieved its own record P3 score > 95% population coverage the Greek economy and foster higher growth constantly develops its networks to cover the whole in 2018. Following specific tests, Telekom Romania by 4G+ network potential. It is the largest investor in new technologies country, including the most remote areas. Its scored 852 points (85.2%), out of 1000, for its and infrastructure in Greece, having invested over 3G network covers approximately 99% of Greece’s mobile network, positioning the company in the € 2 bn over the past six years. Looking ahead population, while COSMOTE 4G and 4G+ LTE very good mobile network range. Award / Certification Advanced technology networks are by far the towards the Gigabit Society, OTE has deployed a COSMOTE network has received for the € 2 bn investment plan, which will run until 2022 No1 in Greece in terms of population coverage, The FTTH deployment was continued in 2018. 5th consecutive year the “Best in Test” and which is set towards offering higher data exceeding 98% and 95% respectively. Telekom Romania continued to replace copper certification for data and voice services, speeds and larger coverage in fixed-line and mobile wires with fiber optics and expand its FTTH by the internationally recognized P3 telephony. OTE Group is also committed to make sound coverage. 172,000 households were added to Communications Company investment for the development of 5th generation Telekom’s FTTH network in 2018, resulting in 2.7 Even though there is wide availability of broadband mobile networks. In 2018, the Group launched the million households being connected with fiber optic The COSMOTE network has been services for fixed and mobile telephony covering first 5G pilot network in Greece, reaching live connection at the end of the year. awarded by Ookla as the fastest Mobile Internet* network in Greece almost 100% of households in Greece and 90% in speeds of over 12 Gbps, 60 times faster than current 4G speeds. The trial took place in the Romania, only 69% and 67% of households use * Population coverage refers to Outdoor the services respectively. The use of broadband Municipality of Zografou, a suburb of Athens, where Coverage. services in Greece through mobile telephony is at the company is developing a 5G pilot network. low levels, with only 59% of citizens subscribing to these services. In comparison with Romania where Furthermore, in 2018, the first COSMOTE Romania 82% of citizens using mobile broadband (source: Fiber-To-The-Home connection was activated in population coverage European Commission, DESI 2018 data for Greece Palaio Faliro. Fixed internet speeds of up to 1Gbps 86% by 3G network and Romania). were achieved during a live demonstration of the program, highlighting the unlimited capabilities of 93% population coverage fiber optics. by 4G network

Sustainability Report 2018 47 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Affordable Prices for All they can renew their COSMOTE program with either Moreover, free minutes and MB were offered on a discount in mobile phones purchase or an up to The Group provides products and services at different national bank holidays throughout the year. 30% reduction in their contract’s fixed cost, as well prices aiming to make them affordable for as receive free minutes and megabytes on national everyone and tailored to their needs. Additionally, new affordable combo packages were bank holidays throughout the year. offered to What’s Up youth prepaid brand subscribers OTE Group, through its brands, offers packages at that included voice minutes, MB and SMS and In 2018, COSMOTE also launched the renewed competitive prices to residential and business dedicated packages with abundant MBs for Social roaming service COSMOTE Travel Pass, enabling customers, fulfilling their communication needs, by and Chat apps orstreaming use, at a very attractive subscribers to use their national tariff plan abroad providing a wide range of options in terms of price. in more than 100 countries all over the world at a internet speeds, voice calls and additional ICT low daily cost. services which maximize its customers’ experience. At the same time COSMOTE One - the COSMOTE loyalty scheme for subscribers who combine at In response to the needs of small and medium Greece least one fixed line and one mobile line - extended businesses for solutions which will help them its eligibility criteria to reach out to more Fixed evolve and grow in an efficient and cost-effective Residential customers can acquire FTTH at a basic Mobile Convergence (FMC) Greek households. manner, COSMOTE offers two new services. rate plan by using the Government’s subsidy (SFBB COSMOTE Office Assistant which provides remote Coupon). For business customers, the COSMOTE Business and flexible secretarial support, and COSMOTE One program has been relaunched with new Click and Site through which users can turn their New fixed programs with enriched voice calls to all features, enabling businesses to operate more Facebook page into a website with just one click at national mobiles and most popular fixed and efficiently and cost-effectively. The program a low cost. mobile international destinations have been includes communication solutions for each one of commercially launched, at more competitive prices, the businesses’ employees, including extremely fast Romania offering high Internet speeds. Internet speeds via the largest fiber optic network in Greece (COSMOTE Fiber), as well as advanced In 2018, Telekom Romania continued to simplify its The service COSMOTE Home Speed Booster was Private Branch Exchange (PBX) services, security products and services portfolio for residential and enhanced with unlimited data usage providing fast services for both fixed and mobile devices, and business customers through its #Netliberare (B2C) and reliable Internet connections, with speeds of up cloud services. and #BusinessLiber (B2B) campaigns. The minimum to 100Mbps, through fixed and mobile network contractual period, valid for business customers, convergence to customers living in areas where the The Business Cloud and Applications platform was also eliminated for residential customers. At COSMOTE Fiber network is still under development. provides businesses with direct and easy access to the end of 2018, Telekom Romania reached cloud applications that meet their operational 200,000 customers for the B2B Freedom portfolio. COSMOTE Double Play subscribers have the ability, needs (such as Cloud Servers, Office 365, ERP etc.), via COSMOTE My WiFi service, to get free Wi-Fi reducing their operating costs. In 2018, a free trial access in more than 600,000 spots in Greece and period of one or two months was offered for those in more than 21 million spots worldwide (in services. cooperation with Fon). In 2018, COSMOTE introduced a new simplified Business Mobile portfolio focusing on offering In 2018, COSMOTE introduced a new simplified increased value to its business customers. New portfolio for mobile voice and mobile Internet plans innovative and affordable mobile voice and internet focusing on offering increased value for customers. add-ons were offered to customers, which could be Subscribers can choose whether they like to have a adjusted according to their current needs. Business COSMOTE program, with a discount in mobile subscribers can choose between five different rate phones purchase or a reduction in their contract’s plans to determine which one best suits their fixed cost. Cost reductions can reach up to 30%. business needs. Similar to residential customers,

Sustainability Report 2018 48 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

4.2 Products and Services Smart Cities Business Cloud and Applications Digital Transformation Projects for the Private Sector for Sustainability The “smart cities” portfolio was enriched in +45%1 annual revenues 2018, including solutions such as Smart Cloud services for businesses, in order to Eurobank has developed the innovative Parking, Smart Traffic Management, Smart OTE Group offers integrated and innovative improve their operations and flexibility, and v-Banking service; an advanced form of Street Lighting, Smart Waste Management, technology solutions to enhance business and to reduce their operating costs. teleconference, unique at European level, sustainable development. Air Quality Monitoring, Smart Water based on COSMOTE telecom solutions. Management and Electric Vehicle Charges. • COSMOTE Business Cloud Servers Through this service, Eurobank's business clients are able to have specialized Through products and services, customers make In the Municipality of Rhodes a new • Office 365 the most out of the benefits of using broadband • COSMOTE Business Cloud Storage and Email counselors via high-resolution video calls, 12-year PPP project was implemented, without the need of visiting a bank branch. services to improve their operation, environmental which will include the installation of 35,000 • Specialized Cloud Business Applications performance and prosperity. smart lighting devices, 120 smart parking COSMOTE state-of-the-art IT and meters, 6 public Wi-Fi hotspots and a smart telecommunication solutions were installed in Specifically, in 2018, COSMOTE's business IT city platform. Fleet Management Fraport Greece’s 14 regional airports. This solutions were enriched to meet business IT needs included the installation of a private cloud in and to increase their competitiveness in a In the Municipality of Saronikos a new +9%2 annual revenues its data center, the deployment of a sustainable way. 12-year PPP project was implemented, +10%3 customers COSMOTE IP VPN service and the creation of which will include the installation 16,000 a private radio network. Their purpose is to smart lighting devices/bulbs, 100 smart Fleet tracking and management, to ensure assure uninterrupted and secure waste management bins, 150 smart parking "green" and safe driving, as well as reduce communication between airports, more meters, 8 public Wi-Fi hotspots, 8 traffic operating costs, through the use of efficient business operations and optimal management points and a smart city machine-to-machine communication. passenger service. platform. The project is expected to induce • Driving Performance Coca-Cola Hellenic Bottling Company’s need some long-lasting environmental and for IT support services in 19 countries was financial benefits for the municipality. • COSMOTE e-Track • e-Fuel Management met thanks to its new collaboration with OTE Group. OTE Group developed new combined University of Thrace deployed a pilot multilingual IT Service Desk services, project using the new Narrow-Band Internet capitalizing on the know-how and of Things (NB-IoT) network for Air Quality specialization of its subsidiary, COSMOTE Management, Smart Fuel Tank e-value for Contact Center Services. management for heating, and Water Quality Accordingly, two operating centers were Management. created exclusively for Coca-Cola HBC’s In Sibiu, Romania, a contactless payment needs. This service will allow the technical system was installed on Tursib’s local support team to administer and coordinate transport system. Any holder of a distant support and resolution activities for contactless bank card can use this system, Coca-Cola HBC’s enterprise information regardless of whether the issuing bank is in systems across the 19 countries, right at the Romania or abroad, to pay for their trip. The first contact. 1 Refers to Total COSMOTE Public Cloud (SaaS, IaaS infrastructure implemented by Telekom and PaaS) revenues in Greece compared to 2017 Romania consists of POS printers for issuing figures. tickets and 3G communication equipment. In 2 Refers to fleet management revenues in Greece short, it is precisely the type of facility that compared to 2017 figures. can be integrated in a Smart City concept 3 Refers to customers using the fleet management service in Greece compared to 2017. and project.

Sustainability Report 2018 49 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

e-Energy Information Security e-culture e-Tourism

Solutions for better energy management Services for the increasing needs of With this application, visitors can directly Services aimed to upgrade the operation of consumption by businesses, to reduce their businesses’ security while they are using the and quickly obtain an e-ticket for admission tourist enterprises. They are used in hotel operating costs and build an "environmentally Internet. to archaeological sites, museums and energy management, infrastructure responsible" profile. • COSMOTE Business e-Secure monuments in Greece, without waiting at management and maintenance of • Mobile Device Management the ticket office. The application allows the information systems and digital signage, as • Energy Management • COSMOTE Mobile Security purchase of single-use tickets or combined value added services to guests, • Anti DDos admission tickets for use in several sites teleconferencing services, etc. Moreover, and museums, where provided. Visitors can during 2018, the COSMOTE Business Mobile Smart grids use the e-ticket to visit the following sites: Tourism was launched allowing hotel owners to pay their employees’ mobile connection Grids which utilize machine to machine Development of Electronic • In Attica: The Acropolis, Slopes of the monthly fee only for the 4 or 8 months their (M2M) communications to collect and Applications Acropolis, Olympeion, Kerameikos, hotel operates. process information (e.g. energy behavior of Ancient Agora, Roman Agora, Hadrian’s Development and improvement of suppliers-consumers) in an automated way. Library, Lykeion Aristotelous applications, digital self-care functionalities Their aim is to improve energy and economic • In Peloponnese: Archaeological area and and on-line services, which contribute to efficiency, reliability and sustainable Museum of Ancient Messina efficient resource management and the production and distribution of electricity. OTE • In Crete: Knossos, Archaeological reduction of paper consumption. Group has installed and activated 115,000 Museum of Heraklion. IoT connections for the Hellenic Electricity Examples of digital functionalities and Distribution Network Operator (HEDNO). applications are My COSMOTE App and My COSMOTE Web, e-invoice, e-payment, online submission of telecommunication providers’ COSMOTE Office Assistant requests ”Υour business.gr” and “Check for technical issue”. New service providing remote and flexible secretarial support, that manages customer calls and appointments, based on personalized rules. This innovative service helps professionals to manage their time more efficiently and focus on activities that are a top priority for their business. A cost - effective low entry package allows the business to manage a large volume of simultaneous calls, broaden service hours, and receive instant and regular notifications.

Sustainability Report 2018 50 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Research and Innovation Indicative Projects in 2018 with Notable Results or Innovative Targets 2009-2018 To consolidate its technological superiority, OTE 5G-XHaul delivered a converged optical and wireless different vertical markets (e.g. smart cities, smart network solution able to flexibly connect Small Cells to transportation, e-health, training, entertainment, and Group systematically promotes research and • Participation in > 60 research programs the core network. The main achievement was the final media). The two projects will develop/upgrade legacy innovation, with multiple benefits for society, and very successful demonstration that took place in 4G/4G+ testbeds in Europe (France, Spain, Italy, customers and employees. • Cooperation with > 800 partners / organizations such as enterprises, a realistic 5G network environment (the city of Bristol Greece, Cyprus, Germany, and the UK) and provide in June 2018), showcasing the various technological solutions for heterogeneous access, advanced The Group actively participates in research projects, university and research centers in achievements of the project. The technoeconomic tool, spectrum management, MEC, NFV/SDN, open APIs, NR finances internal activities (such as developing tools Greece and other European countries developed by COSMOTE, received very positive and NG core, site-interworking, and multi-site / applications / products and test infrastructures), assessments and is considered a stepping stone /domain/technology slicing/orchestration, etc. evaluates new technologies and equipment, toward technoeconomic analysis of future research 5G-MOBIX aims at executing and evaluating collaborates with educational institutions, etc. and 5G network implementations. advanced Cooperative, Connected and Automated CREDENTIAL delivered innovative cloud-based Mobility (CCAM) trials along x-border and urban Based on research and innovation projects Relevant Web Page services for storing, managing and sharing digital corridors in different EU countries, as well as China approved by the end of 2018, OTE Group has identity information and other highly critical personal and Korea under all conditions relating to road traffic, received a total of approximately € 3.3 million in data with a higher level of security than existing network coverage, and service demand. It employs 5G external funding for the period 2017-2018, while it solutions by deploying advanced novel cryptographic core technological innovations and takes local legal, has secured funding of about € 3.4 million for next technologies and improved strong authentication business and social aspects into account. years (without considering new projects to come). mechanisms. 5G-DRIVE aims to validate interoperability between PRIVACY FLAG developed a set of user-friendly tools EU and China 5G networks through extensive joint to give protection for the data of citizens/ individuals trials on eMBB and V2X services to be conducted in 2018 and companies when accessing smartphone eight cities across the EU (Finland, Italy, and the UK) • Participation in 26 research projects in total (Co) funded by the European Commission, regarding applications, websites, and the Internet of Things in and China. At the same time, innovation will be smart cities based on an innovative methodology promoted in technology domains such as network programs/initiatives, like the Horizon 2020 Research Program and 5G-PPP (5G Infrastructure Public known as the Universal Privacy Risk Area Assessment slicing, network virtualization, NR, 5G transport Private Partnership). Methodology (UPRAAM). The project was included in network, and edge computing. • Participation in 15 out of the 47 total approved EU funded 5G-PPP research projects, 4 in Phase I, 7 the EU success stories. LIFE-SAFE CROSSING aims at implementing actions in Phase II, 4 in Phase III (having co-ordination roles in 3 in total); thus contributing actively in CloudPerfect delivered an architectural approach and to reduce the impact of roadkills on some priority shaping and evaluation of future 5G technologies, infrastructures and services and novel business processes for: (a) Cloud providers to enhance the species in four European countries: Marsican brown models in various vertical markets. stability and performance of their infrastructures, bear and wolf (Italy), Iberian lynx (Spain), Brown bear through efficient resources allocation in multi-cloud (Greece and Romania). In Greece the barrier effect and • 23 research projects aim at Sustainable Development with benefits to society and the environment. environments, and (b) Cloud adopters to minimize roadkills at Egnatia Highway and national roads are time in Cloud provider selection, resources procure- estimated to affect ~30% of the local bear sub-popu- • More than € 800,000 self-financing of research projects. ment and applications deployment, by having access lation leading to mortality of a considerable number to benchmarking data, as well as monitor their SLA of specimen. maintenance. UNIQORN aims at providing the enabling highly Research Projects Subject matter – Projects Targets 5G-EVE & 5GENESIS aim to support the smooth integrated and yet cost-effective photonic technology 5G-ESSENCE, 5G-PICTURE, MATILDA, 5G-PHOS, Protection of the environment with continuous transition to 5G networks/services by establishing to accommodate quantum communications to be 5G-MEDIA, SLICENET, BLUESPACE, 5G-XHaul, reduction of energy consumption. open, evolving and distributed experimentation evaluated in lab and field, while also bringing facilities across Europe for validation of the associated improvements in terms of robustness and 5G-EVE, 5GENESIS, 5G-MOBIX, 5G-DRIVE KPIs with an end-to-end approach in controlled reproducibility. CLOUDPERFECT Innovative applications with benefits to set-ups and at large-scale events for a range of society (transportation – public transport, All 5G-PPP projects, BigO, i-PROGNOSIS, i_HeERO, public safety, privacy protection, health – CREDENTIAL, PRIVACY FLAG, RESISTO, VICINITY, health care, nutrition, technology etc.) YAKSHA, UNIQORN, LIFE - SAFE CROSSING

Sustainability Report 2018 51 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

4.3 Safe and Responsible Use set time limits, activate Geo Location. Parents “School of Cool” with short e-learning courses to Crime Unit. In 2018, approximately 450 work 4.4 Communication with Customers campaigns’ communication content and modify it current economic conditions, provide cost control, can manage their children’s activity in all type of educate parents on children’s digital attitudes. shops were organized with the participation of in line with the Code. as a response to the increased customer needs for of Technology devices (mobile, tablet, laptop, PC) through The site’s content is developed in collaboration 50,000 children, parents and teachers. spending regulation. In order to meet its customers’ their computer. with specialized partners and institutions, such as OTE Group communicates with its customers Customers’ Rights needs, OTE Group has: the Greek Safer Internet Center and the Hellenic • COSMOTE and with responsibility and sincerity. Why it matters The Smile of the Child: • Developed apps to enable better account • This service focuses Association for the Study of Internet Addiction GERMANOS supported, the 1st Information COSMOTE Total Security: Customers can communicate with Customer handling. The apps inform customers through Safe and responsible use of technology on the protection of the user’s computer, smart Disorder. Education and Technology Mobile Laboratory, Responsible Marketing Service via phone, application platforms, e-mail or messages and provide detailed description of has been identified as “material” by OTE phone and tablet. It includes Anti-Virus, “ODYSSEAS”, which is an initiative introduced by social media, or they can visit an OTE Group store their bills. Group’s stakeholders. OTE Group is not Anti-Spam, Firewall, Banking Protection, Browsing • Informative Meetings for Safe Internet the organization “The Smile of the Child” and OTE Group conforms to the applicable laws and and request information about their rights, according limited to delivering top quality products Protection, and Parental Controls, which provide operates under the auspices of the Ministry of regulations regarding communication and advertising. Navigation at the OTE Group to the service they use (fixed, mobile, COSMOTE TV • Provided cost control services (e.g. COSMOTE and services, but goes on to inform safety while surfing the Internet. This service can Telecommunications Museum: Since 2010, Education, Research and Religious Affairs. etc.). Information is available on the service contract The Group companies review all promotional My Internet, "Balance Check" service, Real time customers and the public about the safe be accessed regardless of whether the user is educational programs have been carried out for Through this initiative, students, parents and and general terms are provided in printed form or material prior to its release to ensure that the check for prepaid subscribers’ balance, Cost use of technology. connected to the Internet or not. Also, COSMOTE the safe use of the Internet at the OTE Group teachers are informed about major issues, such they are sent to customers via e-mail. Additionally, contact material abides with applicable laws. They Control Service 1515, USSD 1, USSD 2, IVR, Bill Mobile Security, is another service that offers Telecommunications Museum. In the period as the safe use of the internet. In 2018, through the companies’ official websites, existing also ensure that the promotional material is protection, etc.) browsing protection to smartphones when surfing September 2017 - August 2018, over 235 interactive interventions were implemented, and prospect customers can be informed about the suitable, impartial, genuine and respects diversity. Safe Use of the Internet online via Wi-Fi or on COSMOTE’s network and middle school students participated in the through "The Smile of the Child”, providing Terms of Use of all services and about their rights, to enable customers to manage their funds and secures phones against malware, viruses, and Museum’s monthly meetings on the safe use prevention services to 6,415 students. The Group has developed programs and actions to In Greece, companies follow the Code of Responsible at any point in time. Each page, for each service, expenditures. provide information and raise awareness about the phishing attempts. Personal data cannot be of the Internet. Marketing by the Committee of Communication contains, among others, the application forms, as hacked and online purchases and transactions Participation in Self-regulatory safe use of the Internet by children. Control (CCC). They implement the Greek Code of well as the terms and conditions. • Developed numerous services (e.g. Multimedia can be carried out safely. • In 2018, COSMOTE supported Initiatives Surfing Safely: Conduct for advertising and communication, in line Information Service (MIS) Billing Update, COS Products and Services for Safe Use the development of this educational program with the CCC guidelines. In 2018, regarding Transparency in Pricing MOTE Mobile Split Bill etc.) to prevent its • , for students and parents, which is based on OTE Group companies participated in the “ICT Parental Control Services from COSMOTE TV non-compliance with the Code, the CCC issued, at customers from being overcharged. OTE Group provides a range of products and Coalition for the Safer Use of Connected Devices for broadband and satellite service subscribers. a cartoon exhibition. The program was organized first and appellate level, 0 decisions involving OTE OTE Group, in accordance with the current regulatory services specifically designed for children that can With these services, subscribers can set their by the Hellenic Association for the Study of and Online Services by Children and Young People framework, is committed to address its pricing and 1 involving COSMOTE, where some amendments • Introduced a new innovative e-bill that is simple, be used by them in a safe and controlled manner. preferred parental control level and restrict Internet Addiction Disorder and EDUCARTOON – in the EU” through Deutsche Telekom. issues in a concise, simple and transparent manner, to the advertising messages were required. comprehensive and easy to use. The new e-bill access to specific programs based on the degree Cartoon in education. The exhibition was held in 2 At the same time, OTE Group companies have as well as to provide a high level of service to its • COSMOTE Family solutions: Since 2018, customers. platform makes use of new technologies, offering of suitability. Additionally, subscribers can restrict municipalities of Attica and was attended by undertaken self-regulatory initiatives at European COSMOTE offers a series of products and It should be noted that in 2018, the Hellenic Data customers greater transparency and better access to the Television channels of their choice. more than 260 students. and national level, as mentioned in the Appendix. services for parents to facilitate the safe Protection Authority issued Decisions No 62/2018 In Greece, OTE's product pricing and / or services understanding of bill charges. and 63/2018 for OTE and COSMOTE respectively, navigation of their children in the digital world. Informing the Public Mobile Phone and Road Safety are regulated by the Hellenic Telecommunications - COSMOTE Mobile rate plans: Prepaid and • Telekom Romania safe use instructive material imposing to each an administrative fine of and Post Commission. In Romania, Telekom Romania’s postpaid rate plans with data limits. This new for all age groups. The company provides COSMOTE, in the context of its commitment to € 150,000 regarding the implementation of article • e-parenting.gr: A consulting microsite, created product pricing and / or services are regulated by option allows parents to adapt the volume of content related to the safe use of its services. contribute to people’s safety, supports actions to 11 Law 3471/2006 on unsolicited marketing to support parents’ efforts to offer their children the National Authority for Management and data that their children can consume during a The classification of content offered by 3rd inform the public and raise awareness about the communications. the possibilities of the digital world with safety. Regulation in Communications (ANCOM). month. parties is based on the Romanian law. Content responsible use of mobile phones while driving. The microsite contains webinars, articles, events that is specifically addressed to adults is In 2018, the Greek General Secretariat for Consumers - COSMOTE Family Safety application: Specifically, in 2018, COSMOTE was a member of The transparency of pricing policies includes the and tools about children’s online safety, as well available upon request and is formulated based did not impose any fines on OTE and COSMOTE An advanced parental control application that the Road Safety Institute "Panos Mylonas" and its disclosure of billing information within the set as the first virtual internet school for parents on parental control tools. regarding communication, marketing and enables the safe navigation of children on the alliance on Safety and Culture on the Road "Roads advertising issues. timeframes defined by the regulatory framework. Internet and on social media. COSMOTE Family in the Future". Also, for yet another year, COSMOTE • Additional information on the safe use of Pricing information is available on the webpages of Safety application allows parents to monitor the supported the "Iaveris" School of Road Behavior, e-parenting.gr internet is presented on Telekom Romania’s In Romania, the companies follow the Romanian the companies, through their customer service time children spend online and on which enhancing its awareness actions on road behavior. activities, control which mobile applications website. Advertising Council (RAC) Code of Conduct for centers and brochures. • 54,000 visitors advertising and communication. In 2018, RAC their children can use and the time they spend • 8 Lessons of School of Cool Collaboration with Recognized Bodies: on each, apply Web Filtering restricting children issued 3 complaints for advertising campaigns, Customers are also informed about billing details • 4 educational events supported by where the Code’s instructions were not adhered. and any abrupt changes through their accounts. to only visit certain website categories, activate COSMOTE • Cyber Crime Unit: For the 7th consecutive year, anti-cyberbullying alert if their child has been COSMOTE supported nationwide workshops on RAC suggested Telekom Romania to review the Moreover, the various solutions, in view of the verbally abused or spoken bad on social media, safe Internet navigation, organized by the Cyber

Sustainability Report 2018 52 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

4.3 Safe and Responsible Use set time limits, activate Geo Location. Parents “School of Cool” with short e-learning courses to Crime Unit. In 2018, approximately 450 work 4.4 Communication with Customers campaigns’ communication content and modify it current economic conditions, provide cost control, can manage their children’s activity in all type of educate parents on children’s digital attitudes. shops were organized with the participation of in line with the Code. as a response to the increased customer needs for of Technology devices (mobile, tablet, laptop, PC) through The site’s content is developed in collaboration 50,000 children, parents and teachers. spending regulation. In order to meet its customers’ their computer. with specialized partners and institutions, such as OTE Group communicates with its customers Customers’ Rights needs, OTE Group has: the Greek Safer Internet Center and the Hellenic • COSMOTE and with responsibility and sincerity. The Smile of the Child: • Developed apps to enable better account • This service focuses Association for the Study of Internet Addiction GERMANOS supported, the 1st Information COSMOTE Total Security: Customers can communicate with Customer handling. The apps inform customers through on the protection of the user’s computer, smart Disorder. Education and Technology Mobile Laboratory, Responsible Marketing Service via phone, application platforms, e-mail or messages and provide detailed description of phone and tablet. It includes Anti-Virus, “ODYSSEAS”, which is an initiative introduced by social media, or they can visit an OTE Group store their bills. Anti-Spam, Firewall, Banking Protection, Browsing • Informative Meetings for Safe Internet the organization “The Smile of the Child” and OTE Group conforms to the applicable laws and and request information about their rights, according Protection, and Parental Controls, which provide operates under the auspices of the Ministry of regulations regarding communication and advertising. Navigation at the OTE Group to the service they use (fixed, mobile, COSMOTE TV • Provided cost control services (e.g. COSMOTE safety while surfing the Internet. This service can Telecommunications Museum: Since 2010, Education, Research and Religious Affairs. etc.). Information is available on the service contract The Group companies review all promotional My Internet, "Balance Check" service, Real time be accessed regardless of whether the user is educational programs have been carried out for Through this initiative, students, parents and and general terms are provided in printed form or material prior to its release to ensure that the check for prepaid subscribers’ balance, Cost connected to the Internet or not. Also, COSMOTE the safe use of the Internet at the OTE Group teachers are informed about major issues, such they are sent to customers via e-mail. Additionally, contact material abides with applicable laws. They Control Service 1515, USSD 1, USSD 2, IVR, Bill Mobile Security, is another service that offers Telecommunications Museum. In the period as the safe use of the internet. In 2018, through the companies’ official websites, existing also ensure that the promotional material is protection, etc.) browsing protection to smartphones when surfing September 2017 - August 2018, over 235 interactive interventions were implemented, and prospect customers can be informed about the suitable, impartial, genuine and respects diversity. Safe Use of the Internet online via Wi-Fi or on COSMOTE’s network and middle school students participated in the through "The Smile of the Child”, providing Terms of Use of all services and about their rights, to enable customers to manage their funds and secures phones against malware, viruses, and Museum’s monthly meetings on the safe use prevention services to 6,415 students. The Group has developed programs and actions to In Greece, companies follow the Code of Responsible at any point in time. Each page, for each service, expenditures. provide information and raise awareness about the phishing attempts. Personal data cannot be of the Internet. Marketing by the Committee of Communication contains, among others, the application forms, as hacked and online purchases and transactions Participation in Self-regulatory safe use of the Internet by children. Control (CCC). They implement the Greek Code of well as the terms and conditions. • Developed numerous services (e.g. Multimedia can be carried out safely. • In 2018, COSMOTE supported Initiatives Surfing Safely: Conduct for advertising and communication, in line Information Service (MIS) Billing Update, COS Products and Services for Safe Use the development of this educational program with the CCC guidelines. In 2018, regarding Transparency in Pricing MOTE Mobile Split Bill etc.) to prevent its • , for students and parents, which is based on OTE Group companies participated in the “ICT Parental Control Services from COSMOTE TV non-compliance with the Code, the CCC issued, at customers from being overcharged. OTE Group provides a range of products and Coalition for the Safer Use of Connected Devices for broadband and satellite service subscribers. a cartoon exhibition. The program was organized first and appellate level, 0 decisions involving OTE OTE Group, in accordance with the current regulatory services specifically designed for children that can With these services, subscribers can set their by the Hellenic Association for the Study of and Online Services by Children and Young People framework, is committed to address its pricing and 1 involving COSMOTE, where some amendments • Introduced a new innovative e-bill that is simple, be used by them in a safe and controlled manner. preferred parental control level and restrict Internet Addiction Disorder and EDUCARTOON – in the EU” through Deutsche Telekom. issues in a concise, simple and transparent manner, to the advertising messages were required. comprehensive and easy to use. The new e-bill access to specific programs based on the degree Cartoon in education. The exhibition was held in 2 At the same time, OTE Group companies have as well as to provide a high level of service to its • COSMOTE Family solutions: Since 2018, customers. platform makes use of new technologies, offering of suitability. Additionally, subscribers can restrict municipalities of Attica and was attended by undertaken self-regulatory initiatives at European COSMOTE offers a series of products and It should be noted that in 2018, the Hellenic Data customers greater transparency and better access to the Television channels of their choice. more than 260 students. and national level, as mentioned in the Appendix. services for parents to facilitate the safe Protection Authority issued Decisions No 62/2018 In Greece, OTE's product pricing and / or services understanding of bill charges. and 63/2018 for OTE and COSMOTE respectively, navigation of their children in the digital world. Informing the Public Mobile Phone and Road Safety are regulated by the Hellenic Telecommunications - COSMOTE Mobile rate plans: Prepaid and • Telekom Romania safe use instructive material imposing to each an administrative fine of and Post Commission. In Romania, Telekom Romania’s postpaid rate plans with data limits. This new for all age groups. The company provides COSMOTE, in the context of its commitment to € 150,000 regarding the implementation of article • e-parenting.gr: A consulting microsite, created product pricing and / or services are regulated by option allows parents to adapt the volume of content related to the safe use of its services. contribute to people’s safety, supports actions to 11 Law 3471/2006 on unsolicited marketing to support parents’ efforts to offer their children the National Authority for Management and data that their children can consume during a The classification of content offered by 3rd inform the public and raise awareness about the communications. the possibilities of the digital world with safety. Regulation in Communications (ANCOM). month. parties is based on the Romanian law. Content responsible use of mobile phones while driving. The microsite contains webinars, articles, events that is specifically addressed to adults is In 2018, the Greek General Secretariat for Consumers - COSMOTE Family Safety application: Specifically, in 2018, COSMOTE was a member of The transparency of pricing policies includes the and tools about children’s online safety, as well available upon request and is formulated based did not impose any fines on OTE and COSMOTE An advanced parental control application that the Road Safety Institute "Panos Mylonas" and its disclosure of billing information within the set as the first virtual internet school for parents on parental control tools. regarding communication, marketing and enables the safe navigation of children on the alliance on Safety and Culture on the Road "Roads advertising issues. timeframes defined by the regulatory framework. Internet and on social media. COSMOTE Family in the Future". Also, for yet another year, COSMOTE • Additional information on the safe use of Pricing information is available on the webpages of Safety application allows parents to monitor the supported the "Iaveris" School of Road Behavior, internet is presented on Telekom Romania’s In Romania, the companies follow the Romanian the companies, through their customer service time children spend online and on which enhancing its awareness actions on road behavior. activities, control which mobile applications website. Advertising Council (RAC) Code of Conduct for centers and brochures. advertising and communication. In 2018, RAC their children can use and the time they spend Collaboration with Recognized Bodies: on each, apply Web Filtering restricting children issued 3 complaints for advertising campaigns, Customers are also informed about billing details to only visit certain website categories, activate • Cyber Crime Unit: For the 7th consecutive year, where the Code’s instructions were not adhered. and any abrupt changes through their accounts. anti-cyberbullying alert if their child has been COSMOTE supported nationwide workshops on RAC suggested Telekom Romania to review the Moreover, the various solutions, in view of the verbally abused or spoken bad on social media, safe Internet navigation, organized by the Cyber

Sustainability Report 2018 53 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

The products include a detailed installation manual Safe, Branded Customer Products Compliance with in their packaging. Manuals, for the safe use and international and Labeling OTE Group believes that it is of particular importance installation of COSMOTE and Telekom Romania’s European Regulations to supply safe products that comply with the equipment, are also made available on COSMOTE’s applicable Directives and Regulations. It does not website in Greek and English and in Telekom distribute products or services to the market that Romania’s website in Romanian, respectively. Mobile telephony devices RED, RoHS, ICNIRP CE, WEEE, packaging are subject to prohibitions or that have been (Greece and Romania) material recycling prohibited from stakeholders’ (customers, consumer Suppliers are obligated to attach the required association, local society, etc.) actions. certification of their products and pay compensation COSMOTE equipment RED, EMC, LVD, RoHS, CE, WEEE, packaging for any damages, due to non-compliance with for ADSL/VDSL Ecodesign material recycling The equipment that is sold in the Group's retail European and national legislation. services and TV stores, carries the statutory CE labeling (mandatory in the EU) and complies with national and the In 2018, no financial penalties were imposed on applicable EU regulations (in Greece and Romania), OTE Group companies (i.e. OTE, COSMOTE, Telekom such as the Presidential Decree 98/2017 Romania Communications, Telekom Romania (harmonization of Greek legislation to the Radio Mobile Communications) for a non-compliance case Equipment Directive 2014/53/EU (RED)) – in Greece, for any of the above issues. the Waste Electrical and Electronic Equipment (WEEE) Directive 2012/19/EU, the Restriction of Hazardous Substances (RoHS) Directive 2011/65/EU, the EU packaging and packaging waste legislation. In addition, COSMOTE equipment for ADSL / VDSL and TV services complies with the eco-design requirements of the Directive 2009/125/EC (Ecodesign).

Mobile phones comply with the International Commission on Non-Ionizing Radiation Protection (ICNIRP) regulations and EU Recommendation 1999/519/EC on the restraint of public exposure to electromagnetic fields (0 Hz to 300 GHz).

For mobile telephony devices, OTE Group requests from its suppliers Specific Absorption Rate (SAR) data. The data are available to its customers inside product packages and upon request at the Group’s retail network.

The equipment is also checked for the efficient use of the spectrum allocated to terrestrial radio communications and for the avoidance of harmful interferences, in accordance with the RED and Directives 2014/30 / EU (EMC) (or its predecessor 2004/108/EC) and 2014/35 / EU (LVD) for fixed telephony terminal equipment.

Sustainability Report 2018 54 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

 4.5 Customer Service and allows the capturing of customers’ views and Romania: Highlights 2018 OTE Group, throughout 2018, has efficiently same stands for customer onsite support, since Program Customer Satisfaction Index, compared needs near their request, as well as the periodic managed, with its integrated service experience, to there were more than 1,200 visits per month (a to last year, showcasing its consistent and Satisfaction administration of market surveys. • Gradual simplification of fixed and serve customer inquiries related to fixed, mobile 77% increase compared to 2017) performed by ever-growing strong customer satisfaction.Overall • The “COSMOTE DEALS for YOU” program that mobile offers, leading to improved and TV services, through existing and new actions, the COSMOTE@Your Service team. OTE Group customers are satisfied with their Why it matters provides exclusive privileges and offers, leading customer experience including: experience in call centers, stores and the website. to the enhancement of customers’ loyalty. The • Improved customer satisfaction at the increase of the program’s partnerships resulted • Right first-time processes that allow the In a current fast-paced environment, end of 2018, up 7 pp vs. Q3 2018 in the increase of the frequency that COSMOTE immediate resolution of a request as the best-in-class customer experience is • P3 certified Telekom Romania mobile customers chose to take advantage of its offers. customer service representatives are empowered important to the long term success of an network as a 1st League One • The “Fault To Repair” and “Order To Bill” to respond to customers’ various needs, avoiding organization. The goal is that customers • Improved B2B customer experience programs that improve the experience of the redirection of customers to different receive value not only from products and customers by resolving technical issues or any through deployment of optimization and specialized experts. services, but also from their entire issues stemming from ordering requests for digitalization of segments in customer • Real time complaint management where the customer experience with the company. products and services. journey customer service representatives can provide recovery options directly. OTE Group’s primary aim is to offer a differentiated Handling of Complaints and Requests • Implementation of advanced segmented customer experience simple and effortless, via Greece: Highlights 2018 strategies and effective communication processes that allow constant optimization, since COSMOTE Customer Service offers an advanced- methods aiming at long-term commitment and technology and customer needs change. • Implemented an omni-channel customer digital customer experience and develops advanced collaboration. service by adopting unified processes in innovative solutions, namely: Regardless of how customers choose to be served, • Personalized service for FMC customers Customer Surveys -either by skilled agents in Customer Service and all touchpoints (stores, call center). providing a seamless and unified experience • A number of new useful functionalities shops or via self-service applications and websites, • Video call via portal: Customer Service through a dedicated team. In 2018, OTE Group conducted several customer were added to COSMOTE’s applications the Group works on optimizing the processes to personalizes its contacts through a video call • On-going training workshops for all customer surveys to measure customer satisfaction and leading to an increase in the number of offer seamless experiences, functionality. The service is also available for sign service employees. loyalty and thus capture customers’ opinions on customers, using the Group’s reducing serving time and repeated contacts. language speakers. • Digital e-care growth (+80% chat, their relationship with the Group’s companies, the applications, as well as in customer • COSMOTE UFixIt: Customer service experts, messenger etc.). companies’ products and services, as well as their satisfaction, based on users’ rating in In 2018, OTE Group focused its effort towards resolve issues by obtaining access to the overall experience via touchpoints (i.e. call center, app stores. expanding its digital solutions, simplifying and customers’ camera and guide end users OTE Group strives to handle and resolve its • Employment of new virtual hold facilities stores and the website). fastening customer request fulfilment, collecting a step-by-step through problem resolution and customers’ complaints in an ever more effective in customer service lines (13818 and Indicatively, in 2018, OTE Group companies broad view of customer insights and using them in do-it-yourself installations. manner, aiming at handling at least 70% of 13888) reducing customers’ waiting time. maintained high scores on the TRI*M Loyalty customer journey design. • Chat via portal and Mobile App for instant complaints within 2 days. In 2018, in Greece, • Deployment of the new innovative Index, showcasing strong customer loyalty. and interactive communication. around 68% of complaints were solved within 2 COSMOTE e-bill. The new bill format is Additionally, the companies scored high on the Examples of different actions taken are: • New Mob App functionalities: Customers can days, compared to 62% in 2017, increased for both simple, transparent, easy to use and question "How would you evaluate the company as • The “Digital Transformation” program that be informed about the status of their technical COSMOTE fixed and mobile customers. More raises customers’ awareness with to: whether the company makes me feel like I am in enhances customers’ digital experience (see request and activate alternatives that enable specifically, 66% of COSMOTE fixed customers’ enhanced features such as personalized good hands?", since the majority of customers section Sustainability Business Model). them to communicate free of charge for the complaints and 71% of COSMOTE mobile customers’ messages. complaints were resolved within 2 days. More time responded "Excellent, Very Good or Good". • The “Customer Experience Program” that • Installment of self-payment kiosks in 50 period their line is at fault. was required for the resolution of COSMOTE fixed fosters employees’ customer-centric culture shops to facilitate the payment of bills • COSMOTE@YourService: Customer service OTE Group collects real-time feedback on customer customers complaints that were related to IP through the actions of Customer Experience and prepaid top-up via credit/debit card, experts provide solutions to all household and experience using the NG ICCA Program2. Following transformation. Ambassadors. Customer Experience reducing waiting time. business needs, covering a wider range of the customers contact with the Group’s touch services (i.e. Smarthome) and reaching nation points (i.e. call center, stores and technical service), Ambassadors have been actively participating in • Installment of a video call feature in In 2018, OTE and COSMOTE enhanced their ability wide coverage. questions on the employees’ quality attributes (e.g. the product development process, since April COSMOTE owned stores in order to for proactive service. In total, more than 400,000 • Customers can place their order employee knowledge) and the touch points’ overall 2018, ensuring that final experiences meet facilitate communication with customers Selfie care: customers were contacted proactively in order to be online, instantly and paperless, while service (e.g. waiting time), are put forward. In 2018, customer expectations. with hearing problems, via the use of informed on the benefits of IP transformation and • The program that authentication is performed by uploading a selfie. OTE Group in Greece scored higher in the NG ICCA “Voice of The Customer” sign language. get help on connecting their new equipment. The

Sustainability Report 2018 55 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

4.5 Customer Service and allows the capturing of customers’ views and OTE Group, throughout 2018, has efficiently same stands for customer onsite support, since Program Customer Satisfaction Index, compared needs near their request, as well as the periodic managed, with its integrated service experience, to there were more than 1,200 visits per month (a to last year, showcasing its consistent and 2018 Customer Survey Results3 Satisfaction administration of market surveys. serve customer inquiries related to fixed, mobile 77% increase compared to 2017) performed by ever-growing strong customer satisfaction.Overall • The “COSMOTE DEALS for YOU” program that and TV services, through existing and new actions, the COSMOTE@Your Service team. OTE Group customers are satisfied with their How would you rate the company’s performance overal? provides exclusive privileges and offers, leading including: experience in call centers, stores and the website. Customers who responded Excellent, Very Good or Good to the enhancement of customers’ loyalty. The • Right first-time processes that allow the OTE Group continuously works to simplify increase of the program’s partnerships resulted Awards Greece in the increase of the frequency that COSMOTE immediate resolution of a request as the processes and reduce the effort needed by customer service representatives are empowered its customers in every customer contact. 86% customers chose to take advantage of its offers. • COSMOTE earned, for the 3rd consecutive to respond to customers’ various needs, avoiding Customer satisfaction and loyalty are Romania • The “Fault To Repair” and “Order To Bill” year, the prestigious award, addressed to programs that improve the experience of the redirection of customers to different regularly monitored through outbound calls, large organizations, of “The best Customer 82% customers by resolving technical issues or any specialized experts. where customer feedback is retrieved, to Service center” by the Hellenic Institute issues stemming from ordering requests for • Real time complaint management where the improve the Group’s processes and services. of Customer Service. products and services. customer service representatives can provide Selected customer satisfaction survey How would you evaluate the company as to: recovery options directly. results are associated with managers' wether the company makes me feel I am in good hands? • COSMOTE received national and OTE Group’s primary aim is to offer a differentiated • Implementation of advanced segmented variable salary components, as they are Customers who responded Excellent, Very Good or Good Handling of Complaints and Requests international recognition for its Customer customer experience simple and effortless, via strategies and effective communication taken into consideration during their Experience Ambassadors Program, by with processes that allow constant optimization, since COSMOTE Customer Service offers an advanced- methods aiming at long-term commitment and performance assessments. Greece the Gold Award in Greek HR Awards technology and customer needs change. digital customer experience and develops advanced collaboration. 2018 (Best Engagement Strategy category) 81% Regardless of how customers choose to be served, innovative solutions, namely: • Personalized service for FMC customers Customer Surveys and was amongst the finalists in the Romania -either by skilled agents in Customer Service and providing a seamless and unified experience International Customer Experience Awards 78% shops or via self-service applications and websites, • Video call via portal: Customer Service through a dedicated team. In 2018, OTE Group conducted several customer (Business Change category). the Group works on optimizing the processes to personalizes its contacts through a video call • On-going training workshops for all customer surveys to measure customer satisfaction and offer seamless experiences, functionality. The service is also available for sign service employees. loyalty and thus capture customers’ opinions on • COSMOTE received international  TRI*M Loyalty Survey, designed at an international level, measures and monitors reducing serving time and repeated contacts. language speakers. • Digital e-care growth (+80% chat, their relationship with the Group’s companies, the customer loyalty across countries with DT’s presence. recognition for its “Quality Assurance • COSMOTE UFixIt: Customer service experts, messenger etc.). companies’ products and services, as well as their  NG ICCA Program, designed at an international level, monitors and improves the Group’s Program in Customer Service”. The In 2018, OTE Group focused its effort towards resolve issues by obtaining access to the business processes by monitoring and measuring customers’ perceptions. The program’s overall experience via touchpoints (i.e. call center, program received nominations in the final expanding its digital solutions, simplifying and customers’ camera and guide end users OTE Group strives to handle and resolve its stores and the website). questionnaire consists of maximum 4 questions that are assessed at a scale of 1-5. round of the International Customer Questions are answered on the phone via Dual-Tone Multi-Frequency Interactive Voice fastening customer request fulfilment, collecting a step-by-step through problem resolution and customers’ complaints in an ever more effective Indicatively, in 2018, OTE Group companies Experience Awards in the categories Response (DTMF IVR) replies. broad view of customer insights and using them in do-it-yourself installations. manner, aiming at handling at least 70% of maintained high scores on the TRI*M Loyalty “Customer Centric Culture” and “Customer  Results from TRI*M Loyalty Survey 2018, Evaluation of overall performance & evaluation customer journey design. • Chat via portal and Mobile App for instant complaints within 2 days. In 2018, in Greece, Index, showcasing strong customer loyalty. Insight and Feedback”. of driver feeling in goοd hands and interactive communication. around 68% of complaints were solved within 2 Additionally, the companies scored high on the Examples of different actions taken are: • New Mob App functionalities: Customers can days, compared to 62% in 2017, increased for both question "How would you evaluate the company as • The “Digital Transformation” program that be informed about the status of their technical COSMOTE fixed and mobile customers. More to: whether the company makes me feel like I am in enhances customers’ digital experience (see request and activate alternatives that enable specifically, 66% of COSMOTE fixed customers’ good hands?", since the majority of customers section Sustainability Business Model). them to communicate free of charge for the complaints and 71% of COSMOTE mobile customers’ responded "Excellent, Very Good or Good". • The “Customer Experience Program” that period their line is at fault. complaints were resolved within 2 days. More time fosters employees’ customer-centric culture • COSMOTE@YourService: Customer service was required for the resolution of COSMOTE fixed OTE Group collects real-time feedback on customer through the actions of Customer Experience experts provide solutions to all household and customers complaints that were related to IP experience using the NG ICCA Program2. Following Ambassadors. Customer Experience business needs, covering a wider range of transformation. the customers contact with the Group’s touch services (i.e. Smarthome) and reaching nation points (i.e. call center, stores and technical service), Ambassadors have been actively participating in In 2018, OTE and COSMOTE enhanced their ability wide coverage. questions on the employees’ quality attributes (e.g. the product development process, since April for proactive service. In total, more than 400,000 • Customers can place their order employee knowledge) and the touch points’ overall 2018, ensuring that final experiences meet Selfie care: customers were contacted proactively in order to be online, instantly and paperless, while service (e.g. waiting time), are put forward. In 2018, customer expectations. informed on the benefits of IP transformation and • The program that authentication is performed by uploading a selfie. OTE Group in Greece scored higher in the NG ICCA “Voice of The Customer” get help on connecting their new equipment. The

Sustainability Report 2018 56 5 Society

ROBOGIRL: the first fiction movie for educational robotics by COSMOTE About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

5.1 Social Contribution result from its activity. In this context, the companies analyze and assess OTE Group’s Social Contribution OTE Group Telecommunications OTE Group contributes to a better world for all, the local communities’ needs and implement Focus Areas Museum: Champion Museum for 2018 through technology. specific sponsorship programs, which include in Greece financial help to local organizations, sports clubs, The Group aims to make technology accessible to cultural events, etc. Children The OTE Group Telecommunications all, so as to reduce the digital divide and gain equal Museum was selected as the Honored access to the opportunities of the digital era. Its • Entrepreneurship Museum for 2018 in Greece by the vision is to offer technological capabilities to all, Recognizing the needs of modern enterprises, Hellenic Committee of the International overcome inequalities and obstacles, so that OTE Group offers the most effective and integrated Vulnerable Social Groups Council of Museums (ICOM) on the everyone can benefit from today's opportunities communication and technology solutions. It occasion of the International Museum and build a better future. develops and offers specialized services for small Day on 18 May. Under the slogan for this and medium businesses and promotes relative Education year's International Day Social contribution programs and initiatives which are initiatives and conferences. "Hyperconnected Museums: New developed and supported by OTE Group, focus on: Approaches, New Publics", the • Developing digital skills for all • Culture Telecommunications Museum has scheduled • Access to the digital society for all OTE Group aims to promote and sustain the Local Communities a series of events and educational • Social programs countries’ cultural heritage through the use of programs for children, families, and the • Corporate volunteering technology and the support of cultural institutions elderly hosted at the museum's renovated and initiatives. premises. Visitors to the museum use Areas of contribution: Entrepreneurship new augmented and virtual reality tools • Sports integrated in the renovated Permanent • Children and Vulnerable Social Groups OTE Group, actively supports athletics and major Exhibition Hall of the museum to interact The Group constantly supports children in need sport events, sponsors sports clubs and institutions Culture with the museum’s collections and gain a and vulnerable social groups. It contributes as well as encourages its employees to participate unique and positive experience to share towards the work of non-profit organizations and in sporting activities and cultivate a competitive aſter their encounter. The institutions, providing them financial support, free athletic spirit. telecommunication products and services (which Sports Telecommunications Museum provides are important for their operation), as well as informal education, implements through voluntary corporate actions. educational programs, and organizes events that reflect its outreach policy and • Education dynamic relationship with society. Education and development of technological Telekom Romania Foundation skills is essential for all ages. OTE Group invests in young people and contributes to a better Telekom Romania Foundation is a future, through technology and innovation and by non-profit organization, which supports offering grants. different groups of people in special situations, social causes, children with • Local communities serious diseases and talented young OTE Group aims to improve the living conditions people and answers to humanitarian and sustainability of the local communities in calls in case of natural disasters. which it operates. The Group's approach is twofold; Moreover, it acts as the link between on the one hand, it tries to meet the demands of Telekom Romania and the communities local communities and on the other, it carries as in which it operates. its main responsibility, the protection of local communities from any negative impact that may

Sustainability Report 2018 58 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Management and Oversight of Social Contribution Programs € 4 mil. ΟΤΕ Group total social OTE Group Social Contribution contribution To achieve optimal management for all of its social programs and initiatives, OTE Group systematically € 5.7 mil. total social investment 11% Local Communities develops internal mechanisms and processes (including the cost for the implementa- aimed for social contribution. Indicatively: tion of actions and voluntary participation of employees during working hours) • The Chairman and CEO, as well as the Senior 11% Sports Management, oversee the goals and strategy of > 1.4 mil. beneficiaries 25% Children the major social activities and are systematically informed about the social programs implemented. 1% Culture • The Chairman and CEO approves all social sponsorships and donations, following their review and approval by the Executive Director of 9% Compliance, Enterprise Risk Management and Enterpreneurship Insurance OTE Group (in Greece) or the Compliance Manager (in Romania) Revenue Contribution

• There is systematic dialogue with stakeholders. 11% New social initiatives are proposed aſter taking Vulnerable into consideration the needs of interested parties, 21% Social Groups while data are collected to measure the In-kind programs’ impact on society. contribution 33% Education The evaluation of OTE Group’s social contribution is based on the measurement model for inputs, outputs and impacts of the London Benchmarking Group. This model is in line and compatible with international indicators and initiatives for sustainable development, such as the Dow Jones Sustainability Index (DJSI), the guidelines of the Global Reporting Initiative guidelines (GRI) and the Social Return on Investment methodology (SROI) for measuring social return on investment. 79% Financial contribution

It is a continuous goal of OTE Group to quantify, where possible, the results of these programs in order to evaluate and review its social contribution for the future.

Sustainability Report 2018 59 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

5.2 Digital Skills for All Digital Educational Programs in the Telekom Scholarships for STEM 2nd Innovation Marathon OTE Group embraces the shiſt towards a Digital OTE Group Telecommunications Museum Society; a society that adopts and integrates 5 scholarships, each worth almost The Central Union of Municipalities of information and communication technologies, 9th consecutive year of operation € 4,000 a year, were granted to young Greece held the 2nd Innovation Marathon offering more opportunities and easing people’s people with outstanding academic results “City Challenge crowdhackathon #smartcity2. everyday life. >13,000 people visited the Museum, in by Telekom Romania in 2018. The event featured innovative applications order to attend guided tours and educational that aimed at solving problems that local The Group strives to help people of all ages to programs, between September 2017 and The 9th edition of the “Telekom Scholarships” authorities face and support the local and welcome and embrace this transformation by August 2018. program was directed toward first-year national development through new university students interested in the field of technologies. facilitating the cultivation of their digital skills, as The Museum offers a series of educational well as entrepreneurship and innovation. science, technology, engineering and and family programs regarding telecommunications. The 3 finalists of the marathon were a telecommunications, robotics, safer internet, blockchain application that eliminates technology and science such as “a telephone > 110 young people studying at leading bureaucracy, an energy saving application COSMOTE Hackathon line acquires life, electric power and Universities in Romania have received enabling the optimization of energy communicates” and “Introduction to support. 12 teams, which worked consumption in buildings with the use of Educational Robotics”. > 28 hours in a specially designed area at artificial intelligence, and a waste OTE Academy, reached the final phase of management application focusing on the the 2nd COSMOTE Hackathon. sorting of waste source with the use of artificial intelligence. The aim was to promote talented people who specialize in programming, design, Coder Dojo in Romania >90 specialized mentors from local communication, and entrepreneurship and #GrowYourBusiness authorities, business and the academic 450 children participated in CoderDojo give them the opportunity to showcase community, supported the 77 finalist teams #GrowYourBusiness is the umbrella under programming and robotics workshops. The their ideas. as they worked on their solutions. COSMOTE which COSMOTE supports the growth of workshops are divided into themes and also provided know-how on "smart cities" A wearable kinetic stabilizer device, a 3D very small, small and mid-sized enterprises skills levels (beginners and advanced). The technologies. Specialized executives took design application in the VR and AR in the digital era. children are guided by 22 volunteer part in local workshops open to the public. environment, and a "smart" solution for mentors with a background in >2,500 professionals attended digital detecting forest fires were the three programming. seminars (live presentations and via live winning ideas. streaming), organized in 10 Greek cities. The participating teams were supported The objective of the seminars was for the by 20 specialized mentors from business participants to learn about the new trends and the academic community. Moreover, of the digital era and familiarize participants had the opportunity to get in themselves with social media and enhance touch with important scientists and their professional digital skillset. entrepreneurs from Greece. The trainings are available online through a series of 12 educational videos.

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Educational Robotics and STEM Initiatives in Greece Social Impact – Program for the Development of the Digital Skills of Older People

COSMOTE has been realizing a relevant program since 2012, to promote lifelong learning, improve quality of life, and contribute to the development of technological skills of elderly people. The participants learn how to Highlights 2018 use a tablet, navigate the Internet, enter the "world" of social media, and use applications to make their everyday lives easier (notes, calendar, notifications, webcam, maps, etc). ~4,500 children’s participations In 2018, 5 educational centers operated in Athens and Thessaloniki. In the last 7 years, more than 11,000 people have participated in the program. ~ 1,140 participating teams OTE Group, since the initiation of the program, in 2012, has been monitoring and measuring the socio-economic impact of this program. Each year, at the end of the program, an ex-post evaluation question- ~ 370 schools’ participations naire is distributed to the participants, allowing them to disseminate their experience. OTE Group utilizes the results of the questionnaires to quantify the program’s socio economic impact.

> 1,500 teachers were trained The figures below depicts the program’s 2018 “results chain’ and demonstrate how the Group’s activity translates into socio-economic impact by providing specific metrics.

> 3.8 mil views of ROBOGIRL movie on YouTube Input • Pan-Hellenic Educational Robotics Competition for primary, junior high and high school students: 6,174 hours delivers by OTE Group employees and instructors for the implementation of the program The competition started in October 2017, with the announcement of the categories and themes. It ran for the 4th consecutive year and included 5 months of intensive training and organizational efforts that Activity led to the 13 preliminary competitions being held across Greece and the Finals in Athens. Following the completion of the competition, the scientific committee transforms the projects into integrated educational 238 training courses were carried out for the development of theparticipant’s digital skills. Participants were taught how to use a tablet, navigate the internet, use computer applications and scenarios, for the training of the next teams. became accustomed with the world of social media • National WRO Competition 2018: The students tried to provide solutions for critical global issues, such as sustainable food production and food security with the aim of achieving the United Nations' SDG 2 of Output "Zero Hunger" by using their robotics structures. The winning teams participated in the 14th World Robot 3,825 people participated in the program Olympiad WRO 2018 held in Thailand, in November, under the theme "Food Matters". • CodeAthon: A new initiative aiming to encourage young students 8 to 16 years old to take up coding, by Outcome forming a team and completing an unfinished electronic game, within 4 hours. It was organized in the 64% of the participants* believe that the knowledge enable them to improve the way they are informed. framework of the Europe Code Week 2018 in October and was held in 4 Greek cities. The projects of the 63% of the participants* stated that the program will contribute to the facilitation of their participating teams were uploaded on an open platform to help other children learn about coding. communication with others.

• ROBOGIRL movie: The 1st Greek Fiction Movie about Educational Robotics, representing the experience Impact of children with Robotics. It is a family comedy about the power of teamwork and the capability of stated that they acquired valuable knowledge about the digital world. children to implement even the most incredible ideas. ROBOGIRL premiered on the COSMOTE YouTube 82% of the participants* channel and was aired on COSMOTE TV in December 2018. 64% of the participants* stated that they gained more confidence in using new technologies. • “Introduction to Educational Robotics” sessions: Τhe sessions, addressed to 7-12 years old children, were held at the OTE Group Telecommunications Museum. In these sessions children constructed a robotic model and set it in operation in real time, using “Scratch” code. *the statistical figures stem from the feedback provided by 2,323 participants who filled out the ex-post evaluation questionnaire.

Sustainability Report 2018 61 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

5.3 Access to Digital Society Free Broadband Connection to Residents Help Lines Facilitation of Communication in OTE Group provides ICT products, services of Remote Islands in Greece Emergency Situations OTE continued to provide telecommunications and discounts, in order to facilitate and 47 remote Greek islands residents were improve people’s everyday life. infrastructure and financial support for the It is a priority for COSMOTE to support its offered 10GB of mobile internet at a cost of operation of hotlines that provide support to subscribers in emergency situations by € 10 / month. The cost of the initiative is vulnerable groups, and especially children in facilitating their needs for open communication. fully funded by the Ministry of Digital Policy, need. Indicatively, the Group supports the This includes applying temporary initiatives Specialized Telecommunications Products, Telecommunications and Media. Services & Offers operation of the following help lines: such as offering free calls and internet data, postponing the barring processes of all € 2,086,468 discounts to the elderly and to • SOS 1056, ‘The Smile of the Child’ services -mobile, fixed and TV- due to people with disabilities, in fixed telephony (21 years of support), 271,996 calls unpaid bills, covering the fixing costs of services, in Greece • European Hotline 116000 for missing damaged internet and TV equipment as well children, ‘The Smile of the Child’ 11 as covering the cost of telephony, internet People with Disabilities years of support), 12,487 calls and TV services for 2 months to customers 12,993 people received discounts on fixed Bringing Fast Internet to Remote Areas • European Helpline for Children 116111, whose houses have been damaged. In telephony and internet services, in Greece in Romania ‘The Smile of the Child’, 7,296 calls 2018, emergency support was provided to Mobile telephony offer is specially adjusted • 11525 Advice Helpline ‘Together for subscribers in Greece due to fires in Kineta to increased communication needs of people Telekom Romania continued the implementation Children‘ (9 years of support), 5,028 calls of Attica, University of Crete in Heraklion with hearing loss in Romania. The offer of the RoNet; a project aimed at covering and the earthquake in Zante. combines plenty of usage (GB, SMS, Video “white areas” with broadband services and call mins) and personalized customer within which Telekom Romania is upgrading Telecommunication Services to the service. the broadband network. According to the Residents of Eastern and Western Attica project, RoNet must cover 650 localities in Unemployed and Pensioners Romania with broadband connectivity. During the wildfires in Eastern and Western COSMOTE, since 2010, has been supporting Attica in July 2018, OTE Group acted unemployed people and pensioners, by promptly to meet the subsequent needs of providing a discount on their monthly fee on Teimplici.ro those affected by the fires. their mobile telephony service. Teimplici.ro was launched in 2014 and A large number of OTE Group's technicians Students focuses on identifying communities’ needs, and technical teams worked intensively, in What’s Up Student offers (mobile offers, double implementing new information technologies order to restore the damage caused as play, mobile internet), fully cover the needs of making improvements in the fields of soon as possible. The Group immediately PC Donation Program students, with innovative and exceptionally education, health, environment, innovation, responded to requests for telecommunication development, and social protection. The aim infrastructures and services. competitive services. 170 refurbished computers were offered to NGOs and schools in Greece. is to identify partners that are promoting The program was implemented for the beneficial applications of ICT technologies in Romanian communities. 13th year. European Emergency Number 112 operated by OTE in Greece

Received 1,695,202 calls, of which 73,114 were re-directed to the emergency numbers 100, 199, 166, 108, 197 and 1056.

Sustainability Report 2018 62 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Free Wi Fi in Archaeological Sites Antikythira island: Support for the COSMOTE History Channel Information on Telecommunication Issues Operation of the Climate Change In collaboration with the Ministry of Culture Observatory operated by the National The most popular documentary channel on For the 15th consecutive year, training and Sports, COSMOTE provided free Wi-FI to seminars and informative meetings were the archaeological sites of: Observatory of Athens the COSMOTE TV platform, promoting Greek conducted, for mobile telecommunications, • Thessaloniki Archaeological Museum culture and civilization. OTE Group has provided its facilities in electromagnetic fields, and on the role of • National Archaeological Museum 3 years of operation. telecommunications in the modern era. • Rhodes Archaeological Museum Antikythira to the National Observatory of 85 original documentaries or documentary These seminars are aimed for secondary 2nd Phase Athens. The facilities allowed the Observatory Expansion and improvement of internet to house its scientific instruments as well as series (own productions and co-productions). education students, associations, local communities and municipalities. coverage in the archaeological sites of: cover its electricity and telecommunication >1,000 documentaries of prominent Greek • Byzantine Museum in Thessaloniki needs. and foreign artists > 400 employees and 200 students in cities throughout Greece attended these • Knossos Furthermore, OTE Group sponsorship, aimed The content consists mainly of: sessions and meetings. • Heraklion Archaeological Museum at offering telecommunication equipment to • Spinaloga • Documentaries from foreign media the "Observatory of Geosciences and companies and channels, like BBC, National Climatic Change of Antikythera" (PAGGAIA) Geographic, Arte, A&E, Deutsche Welle, TVF, of the National Observatory of Athens, etc., dedicated to Greece. enabled the recording of parameters of • Documentaries from cultural institutions particular significance for the climate of the and other Greek foundations, independent wider region and the Mediterranean. Greek producers, etc. Correctional Facilities and NGO for Children Keros island: Telecommunication Support The "Observatory of Geosciences and for Archaeological Excavations The channel continues to collaborate with 31,000 prepaid telephone cards with total Climatic Change of Antikythera" will be fully various organizations and institutions, such value of > € 124,000 were donated. The excavation in Keros island is a research operational in the following years according as the War Museum, and the American project conducted by the British School at to the international standards of the Global School of Classical Studies, for the preservation, Athens and carried out under the permission of Meteorological Observation System (GAW / digitization and airing of rare film archives the Ministry of Culture and Sport. For the WMO) and the PANACEA (PanHellenic and videos of historical value. purposes of the project, pioneering methods Infrastructure for Atmospheric Composition for recording and analyzing excavation data and Climate Change). The Observatory will The Group’s vision for the COSMOTE were employed. All data is recorded digitally, gradually install the advanced scientific HISTORY Channel is to be the place for through a new iOS application called iDig. The equipment of CEPOL to make it an integrated entertainment and education for all. new excavations brought to light a multitude research center within the framework and of imposing and heavily dense structures. The standards of the respective European scale of these structures proved that Keros super-station (e.g. Hyper-channels of the was one of the most important locations in the Research Infrastructure ACTRIS, ICOS, EPOS). Aegean during the Early Bronze Age (3rd millennium BC). COSMOTE supports the excavations by covering the telecommunication needs of the archaeologists. Since 2016, the excavators of Keros have been using a fully-digitized workflow system, in the excavation field and in the workshops. The system works with the innovative iDig application and is applied for the first time in Greece for the purposes of a prehistoric excavation.

Sustainability Report 2018 63 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

5.4 Social Programs COSMOTE 2018 Scholarship Program Distribution Center for the Areas Affected Donations by Telekom Romania OTE Group implements and supports a spectrum by the Wildfires in Attica Foundation for Individual Cases of programs and actions, in order to meet € 545,000 were awarded to 36 first year In 2018, the Telekom Foundation made 15 society’s core needs. university students with financial and social OTE Group provided supplies, goods and donations to children and adults suffering dofficulties. Additionally, equipment to those in need. from severe illnesses. telecommunications products and services The Group allocated a central building that and COSMOTE TV were provided for free Support of Organizations for Children served as a distribution center for food and At the “Brasov International Marathon”, the Telekom Romania Foundation chose to supplies in one of the affected areas. The > € 5.5 million has been awarded to 658 support asocial cause by donating the ~ € 500,000 was donated to 19 charitable need for blood was addressed by offering univeristy students, in the 17 years of the registration fees collected at the events and organizations who provide care for children supplies from the Group's Blood Bank program the funds from an online fundraising platform. in Greece through the Voluntary Blood Donation (€ 9,200 in total) to a blogger and a famous ~ 1,000 OTE Group employees participated Program. in the internal voting process, where runner in Brasov, who were diagnosed with employees voted for 3 organizations, they Moreover, the Group acted promptly to severe cancer, to undergo urgent surgery. wanted the Group to support meet the subsequent needs by securing The Foundation also chose to donate the have been offered to communication services from the very first ~ € 8 million 58 NGOs, proceeds from “The biggest sports hour” in the last moment, included in the Access to Digital 19 years. events organized by Telekom Romania City of Athens Reception and Solidarity Society section. Centre (COARSC) (€ 5,200) to help a 3-year-old girl, in Birmingham, UK, who needed an intestinal For the 6th consecutive year, COSMOTE transplant. donated € 60,000 to cover the everyday needs of 200 families facing financial Trauma Centers for Children issues.

In 2018, OTE Group along with the Support of Children in need and Vulnerable The COARSC is a public organization, which Social Groups by Telekom Romania non-profit organization "Pediatric Trauma supports vulnerable social groups, by Care", contributed to the renovation and contributing to the resolution of issues that • 150 children and young people from purchase of equipment for the Trauma lead to poverty and social isolation. E.G.A.L. day centers received support from Centers of the following 3 hospitals: Telekom Romania, during Christmas. • the Attikon University Hospital Specifically, they received a hot meal daily, • the General Hospital of Rethymno, and assistance with homework and life skills • the General Hospital St. George, in development sessions, to improve their Chania. attendance, grades and overall performance at school. > € 600,000 have been allocated for the purchase of medical equipment, supporting • 2 polyclinics of the Regina Maria CMU 13 hospital units for children nationwide, Foundation, in partnership with Telekom over the last 6 years. Romania, offered free medical services at a very low cost, to patients without any income or on a low income.

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Supporting Education and Counseling Local Communities’ Actions Telekom Skating Arena 4th Brasov International Marathon

The Telekom Romania Foundation organized OTE Group supported approximately 90 The Telekom Skating Arena is operated by In May 2018, Telekom Romania organized an entrepreneurial skills course for 12 programmes, for local communities in the Ion Tiriac Foundation. Telekom Romania the Brasov International Marathon as part people, in line with its accreditation as a Greece, with the aim to improve the living supported the creation of the only existing of the “Sport is Good” campaign. The provider of entrepreneurial training conditions of inhabitants that live in the rink in the Bucharest Ilfov district at the Marathon was accredited and supervised sessions. countryside and sustain the viability of the time, with the aim of engaging children and by the Association of International local cultural identity. young people with sports and at the same Marathons (AIMS). The Foundation also developed a professional time support local sports teams. counseling program for >100 pupils with • > 3,700 national and international outstanding school performance who come runners of all ages competed in the from disadvantaged families. The initiative marathon (+26% more than in 2017) was part of the program “I want to attend • 160 runners from 32 countries 9th grade”. This is an initiative to prevent participated (11 more than in 2017): high-school students from dropping out in Sport Teams including from the USA, Canada, Italy, The “Biggest Sports Hour” 2018 Dolj, Valcea, Iasi, and Ialomita. It was Germany, Spain, United Kingdom, developed by World Vision Romania in 19 teams, clubs and events of a variety of Hungary, Bulgaria, Greece, Cyprus, the During July and August 2018, Telekom 2007. The program consists of monthly sports were supported in Greece. Financial Netherlands, Turkey, France, Poland, Romania, in partnership with SmartAtletic, scholarships, educational and networking support was provided to football, basketball Ireland, Russia, Chile, and Republic of organized the 8th edition of the “The activities, and summer camps, in order to and volleyball teams as well as water Moldova. Biggest Sports Hour” sports event in Ploiesti, encourage, motivate and create opportunities sports and gymnastics clubs, swimming Brasov and Iasi. for children from low-income families who academies, field races, etc. have the capability to attend high school. Telekom Romania continued to finance the > 56,000 outdoor sports and health Romanian National Football Team as their enthusiasts and their supporters attended main sponsor. This initiative underpins the event. Telekom’s strategic commercial direction of 134 national and international instructors offering customers top sports content and coordinated the event experiences, and Deutsche Telekom’s International sponsorship strategy. In addition to the new locations of Ploiesti and Iasi, this year's edition brought new classes and sporting activities, including Les Mills Body Pump, Functional Training, Les Mills Grit, Fight Klub Khai Bo, Kangoo Jumps marathon, Basketball, and Capoeira. BTL Medical Equipment Romania provided medical tests, rehabilitation and aesthetics sessions at the event, for more than 1,500 people and Red Cross Romania provided 146 first aid courses.

Sustainability Report 2018 65 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

5.5 Employee Volunteering > 7,200 Employees’ Participation in Marathons Collaboration with Red Cross Romania OTE Group motivates its employees to act as employee participations in social volunteers, by providing the appropriate resources, contribution initiatives Greece At the beginning of the year, Telekom to achieve the best possible outcome for the > 2,700 OTE Group invited employees to take part Romania Foundation collaborated with Red society. blood units collected from OTE Group and run for ‘a good cause’ in the Authentic Cross Romania to help vulnerable people employees Athens Marathon, the International Marathon from the Olt County. One of the highlights of this year’s volunteer “Alexander the Great” and the Thessaloniki activities was the collection of 47 Night Half Marathon. 2.4 tons of non-perishable food and 100 NGOs for children and social vulnerable essentials for the relief of people affected by the > 1,200 employees competed in the 3 containers with hot meals were delivered groups were supported through employees’ Wildfires in Attica. Moreover, the Group holds an marathons, resulting in the donation of: to 50 families with more than 3 children, participations in social initiatives annual Blood Donation Program, a Christmas • € 15,000 to the NGO “Pediatric Trauma single elderly people, or disabled people in Charity Bazaar and it encourages its employees to Care”, for the equipment of the hospital’s the villages of Corbu, Burduleşti, Ciureşti, participate in Marathons for good causes. Trauma Centre for children, located in Buzeşti, and Milcoveni in Corbu. Organizing and Participating in Charity Northern Greece. The support, development and promotion of Bazaars • € 2,000 to the NGO “Alma Zois”, for the Beneficiaries were identified by members of corporate volunteering programs and social support of women with breast cancer. the local town hall, based on individuals’ In 2018, OTE Group organized charitable contribution activities, give the employees the • € 1,000 to the “Syzoi”, for the support of social need. Each beneficiary received 24 kg Christmas bazaars in Greece, with the opportunity to actively express their solidarity parents of children with impaired vision of non-perishable food and 2 hot meal participation of supporting towards society. 13 NGOs and other disabilities. packages delivered to their homes. children, aiming at raising funds for their cause. Romania The aid was delivered by volunteers from employees contributed. > 2,500 In May 2018, Telekom Romania organized the Telekom Romania Foundation, with the was raised. > € 23,000 the Brasov International Marathon, as part help of the Red Cross. For yet another year, employees responded of the “Sport is Good” campaign. 130 to the call "Be a volunteer" and participated runners from Telekom Romania in charitable events and bazaars organized participated and comprised the “The largest by NGOs. The aim of the events and the running team. bazaars was to raise money to support children in need. Specifically, employees helped in the organization of the charity Blood Donation Program bazaars of ‘MDA Hellas’ and ‘Friends of the Child’. The Blood Donation Program of OTE Group in Greece has been running for more than 41 years and has since become a part of the Group’s culture. In 2018, a total of Collecting Essentials for the Relief of the 2,770 units of blood were collected from People affected by the Wildfires in Attica OTE Group employees. 540 units were made available to meet the needs of OTE Group employees responded immediately employees and their families, while the to the call to collect essentials (food and remaining 1,679 were given to cover social medicines) for the fire victims and their needs throughout Greece. families, as well as for stray animals. In addition, 75 units of blood were collected More than 200 boxes of essentials were from Telekom Romania. donated to the towns of Rafina, Marathon and Megara.

Sustainability Report 2018 66 6 Climate and Environment About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

6.1 Environmental Strategy 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread The OTE Group realizes fully that, though low, there Environmental Strategy OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. are environmental impacts associated with global environmental problem the impacts of which amounted to 818.9 GWh, with electricity Information and Communication Technologies (ICT) affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were activities. At the same time, ICT products and range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products services offer a number of opportunities for planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main supporting sustainable development in many information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of activities and sectors. opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. Products ans (a) the monitoring of energy consumption Reduce own Raise stakeholders’ Services that enable environmental environmental (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of environmental and other gas emissions in accordance with footprint awareness protection data transferred which increased by 16% and the the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates of energy conservation measures have also affected energy consumption. Direct (scope 1) and indirect (scope 2) GHG At the same time, the efficiency of energy use in emissions from energy consumption in 2018, OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease compared to 2017).

Other indirect GHG emissions Energy and Electromagnetic Circular OTE Group has extended the scope of its emissions Climate Change fields Economy inventory, in order to quantify the major indirect emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

Sustainability Report 2018 68

Prioritization Greece, in 2018). The overall economic effect (benefit) of the measures implemented on the OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. energy consumption and the associated emissions: A detailed list of the measures implemented in (a) Energy conservation in 2018 is presented in the Appendix -Environmental • Telecom networks, aiming at the transition to Performance Data - Energy. a more energy efficient network. • Buildings, data centers and stores, with emphasis on the proper use and the efficient operation of the equipment installed. • Road transportation, focusing on the renewal of the vehicle fleet but also on the monitoring and control of transportation activity. (b) Covering electricity demand, directly or indirectly, by Renewable Energy Sources (RES). (c) Further development and marketing of products and services that enable environmental protection and contribute to the economic development of OTE Group.

Design and Implementation of Measures Energy Conservation In 2018, energy efficiency projects implemented at OTE Group level resulted in an energy conservation of 16.9 GWh (2.1% of OTE Group energy consumption in 2018). 90% of these savings are achieved in telecom networks (47% in mobile and 43% in fixed telecom network), while the rest 10% concerns buildings (electricity, district heating and fuels) and electricity generators. Savings in operational costs are estimated at € 2.2 million.

The total effect of energy conservation measures implemented in ΟΤΕ Group companies in Greece since 2008 (base year for the DT Group for climate change strategy but also for the annual GHG emissions reduction target for OTE and COSMOTE), is estimated at 113.8 GWh (electricity 103.5 GWh; diesel 10.3 GWh). The avoided GHG emissions associated with the energy conservation achieved is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

In this context, the objectives of the Environmental Aiming at effective environmental management 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of Strategy of OTE Group are: along the entire value chain, all telecom companies Setting ambitious targets for GHG emissions) generated from the widespread of OTE Group implement, in the context of the OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. • The minimization of the environmental impacts Integrated Management System, Environmental Minimizing the use of plastics global environmental problem the impacts of which amounted to 818.9 GWh, with electricity from its activities. Management Systems (EMS) certified according to (Greece) by: affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were • The development and provision of products and ISO 14001 standard. The systems share similar range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products services that enable environmental protection structure, approach and policy, in which the • Reducing the use of plastic bottles by planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main and increases in productivity in other sectors of commitment of OTE Group companies to 50% (2019) and by 75% (2020) information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of economic activity. environmental protection is stated. compared to 2018; opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). • The raising of its stakeholders’ awareness on • Reducing the use of disposable on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared acting more responsibly on the issue of Utilizing the framework of the Environmental plastic cups (offices and restaurants) recommendations, can be found in the latest to 2017, mainly due to the increase of energy environmental protection. Management System, OTE Group companies by 100% (2019) response of OTE to CDP. consumption in the telecom network. More specifically, analyze all activities, products and services with • Abolishing the use of plastic bags in telecom network electricity consumption in Greece To achieve these objectives OTE Group: In this context, a comprehensive program has been reference to applicable legislative requirements and the retail network by the end of increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: their impact on the environment (energy 2019. and 9.5% for COSMOTE) and by 0.7% in Romania. • Implements energy conservation measures. (a) the monitoring of energy consumption • Strives to increase the utilization of Renewable consumption, emissions, waste, electromagnetic (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of Energy Sources. radiation, etc.) and try to improve environmental GHG emissions reduction. OTE group and other gas emissions in accordance with data transferred which increased by 16% and the • Integrates the principles of circular economy performance. In this, the companies set goals, aligns with the revised DT group-wide the GHG Protocol, number of active broadband and TV subscribers into its activities by addressing reuse and specify appropriate key quantitative performance targets for the post 2020 period that (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), recycling across their value chain, and by indicators (KPIs) and take cost-effective actions. aim at: results of the emission inventory, has contributed to the increase at Group level. It is expanding the lifetime and overall utilization (d) the implementation of measures for the noted that in Greece fiber service subscribers of the equipment provided to customers. With a view to ensure adequate control of risks • covering 100% of DT Group reduction of energy consumption and the increased by 50% compared to 2017. The • Develops specialized ICT products and services associated with environmental impacts from electricity consumption with electricity associated GHG emissions. expansion / modernization of the telecom network that meet their customers’ needs while energy consumption, the scope of the Integrated generated from renewable energy together with changes in the implementation rates contributing to environmental protection. Management System in Greece was expanded, in sources by 2021; of energy conservation measures have also • Ensures that the levels of electromagnetic fields 2016, with the development and certification of the • a 90% reduction of scope 1 and Energy Management System according to the ISO scope 2 GHG emissions and affected energy consumption. of base stations comply with the public exposure Direct (scope 1) and indirect (scope 2) GHG safety limits. 50001 standard. Initially, the System was • a 25% reduction of the most At the same time, the efficiency of energy use in emissions from energy consumption in 2018, • Conforms with the eco-design requirements implemented in a limited number of critical important scope 3 emissions OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower applicable to the equipment provided. installations. Gradually it was expanded and in (purchased goods and services, consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. • Secures high ratings by international 2018 it was implemented in 9 building complexes capital goods, and product lifecycle) improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were sustainability and SRI analysts, and participate in (including technology and office buildings, data per customer by 2030, compared centers, call centers, and the head office of the OTE value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease national and international award events that with 2017 (base year). compared to 2017). evaluate good practices. Group) and 12 mobile base stations. Results are encouraging since energy savings exceed 4% for the buildings and 15% for mobile base stations. Other indirect GHG emissions The strategic aim of OTE Group, is to further enrich OTE Group has extended the scope of its emissions its portfolio with facilities certified according to ISO inventory, in order to quantify the major indirect 50001 (Greece). emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

Sustainability Report 2018 69

Prioritization Greece, in 2018). The overall economic effect (benefit) of the measures implemented on the OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. energy consumption and the associated emissions: A detailed list of the measures implemented in (a) Energy conservation in 2018 is presented in the Appendix -Environmental • Telecom networks, aiming at the transition to Performance Data - Energy. a more energy efficient network. • Buildings, data centers and stores, with emphasis on the proper use and the efficient operation of the equipment installed. • Road transportation, focusing on the renewal of the vehicle fleet but also on the monitoring and control of transportation activity. (b) Covering electricity demand, directly or indirectly, by Renewable Energy Sources (RES). (c) Further development and marketing of products and services that enable environmental protection and contribute to the economic development of OTE Group.

Design and Implementation of Measures Energy Conservation In 2018, energy efficiency projects implemented at OTE Group level resulted in an energy conservation of 16.9 GWh (2.1% of OTE Group energy consumption in 2018). 90% of these savings are achieved in telecom networks (47% in mobile and 43% in fixed telecom network), while the rest 10% concerns buildings (electricity, district heating and fuels) and electricity generators. Savings in operational costs are estimated at € 2.2 million.

The total effect of energy conservation measures implemented in ΟΤΕ Group companies in Greece since 2008 (base year for the DT Group for climate change strategy but also for the annual GHG emissions reduction target for OTE and COSMOTE), is estimated at 113.8 GWh (electricity 103.5 GWh; diesel 10.3 GWh). The avoided GHG emissions associated with the energy conservation achieved is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Governance of Management Systems To manage risks and opportunities a number of 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of policies – measures – actions are in place that Raising Environmental Awareness GHG emissions) generated from the widespread The Chairman of the Board of Directors and CEO include, among others, the Business continuity OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. oversees corporate responsibility strategy and management system, revenues transformation COSMOTE along with the MEDITERRANEAN SOS Network (MedSOS) implemented a pioneering global environmental problem the impacts of which amounted to 818.9 GWh, with electricity performance, including environment. The Board of towards ICT solutions, the suppliers’ code of educational program entitled “Ctrl Shiſt Save the Climate – Information and Communication affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were Directors approves Group-wide corporate conduct, energy conservation measures targeting Technologies as Allies in Climate Protection”. range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products responsibility policies, position papers and all activities, waste management practices planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main significant strategic projects, as needed. following circular economy principles and The program’s objective is to educate and train young people in Primary and Secondary Education information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of participation in the Code of Conduct for Broadband and educators on the ways in which Information and Communication Technologies (ICTs) could opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). In the framework of the Integrated Management Equipment. contribute to energy saving, climate change mitigation, and adaptation. on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared System in place, high level Management Systems recommendations, can be found in the latest to 2017, mainly due to the increase of energy Steering Committees have been established in each During the academic year 2017 - 2018, more than 1,500 students participated in the program. response of OTE to CDP. consumption in the telecom network. More specifically, country. These committees are, among others, telecom network electricity consumption in Greece responsible for the annual review of the system. In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. Environmental Management Representatives / (a) the monitoring of energy consumption Coordinators are appointed by Decisions of the CEO (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of in each country (e.g. the Executive Director and other gas emissions in accordance with data transferred which increased by 16% and the Corporate Communications, OTE Group for the EMS the GHG Protocol, number of active broadband and TV subscribers of OTE and COSMOTE in Greece). (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is Environmental Risk Assessment (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The OTE Group has updated (in 2017 for OTE, associated GHG emissions. expansion / modernization of the telecom network COSMOTE, GERMANOS and COSMOTE e-Value in together with changes in the implementation rates Greece and in 2018 for Telekom Romania of energy conservation measures have also Communications and Telekom Romania Mobile affected energy consumption. Communications in Romania) its environmental risk Direct (scope 1) and indirect (scope 2) GHG assessment. The scope of the analysis (following a At the same time, the efficiency of energy use in emissions from energy consumption in 2018, life-cycle perspective) was to identify risks and OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower opportunities associated with the activities of the consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. companies and manage them effectively. To ensure improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were consistency among all types of enterprise risks and value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease opportunities evaluated, the OTE Group Enterprise compared to 2017). Risk Management methodology was applied. Other indirect GHG emissions Electricity consumption, GHG emissions and waste OTE Group has extended the scope of its emissions management (especially hazardous) along the Relevant Web Page inventory, in order to quantify the major indirect value chain, as well as EMF have been recognized emissions (scope 3) associated with its operations as significant environmental issues. In addition, and to get a better understanding of its emissions climate change impacts were highly ranked as risk profile. This information has been used in the and opportunity factors. context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

Sustainability Report 2018 70

Prioritization Greece, in 2018). The overall economic effect (benefit) of the measures implemented on the OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. energy consumption and the associated emissions: A detailed list of the measures implemented in (a) Energy conservation in 2018 is presented in the Appendix -Environmental • Telecom networks, aiming at the transition to Performance Data - Energy. a more energy efficient network. • Buildings, data centers and stores, with emphasis on the proper use and the efficient operation of the equipment installed. • Road transportation, focusing on the renewal of the vehicle fleet but also on the monitoring and control of transportation activity. (b) Covering electricity demand, directly or indirectly, by Renewable Energy Sources (RES). (c) Further development and marketing of products and services that enable environmental protection and contribute to the economic development of OTE Group.

Design and Implementation of Measures Energy Conservation In 2018, energy efficiency projects implemented at OTE Group level resulted in an energy conservation of 16.9 GWh (2.1% of OTE Group energy consumption in 2018). 90% of these savings are achieved in telecom networks (47% in mobile and 43% in fixed telecom network), while the rest 10% concerns buildings (electricity, district heating and fuels) and electricity generators. Savings in operational costs are estimated at € 2.2 million.

The total effect of energy conservation measures implemented in ΟΤΕ Group companies in Greece since 2008 (base year for the DT Group for climate change strategy but also for the annual GHG emissions reduction target for OTE and COSMOTE), is estimated at 113.8 GWh (electricity 103.5 GWh; diesel 10.3 GWh). The avoided GHG emissions associated with the energy conservation achieved is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 OTE Group Energy Consumption - per country 2016-2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared 2018 557 262 recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, 2017 533 271 telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption 2016 509 281 (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of and other gas emissions in accordance with data transferred which increased by 16% and the 0 100 200 300 400 500 600 700 800 900 the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the Energy Consumption (GWh) that grew by 1.8% (all figures are at Group level), Greece Romania results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network OTE Group Energy Consumption - per activity 2016-2018 In addition, OTE Group companies participate in the together with changes in the implementation rates of energy conservation measures have also 2% climate change strategy of DT Group, in the context Electricity 9% Road affected energy consumption. transportation of which a reduction target of 20% for the DT generators Direct (scope 1) and indirect (scope 2) GHG 4% Group’s CO2 emissions by 2020 (compared to emissions from energy consumption in 2018, At the same time, the efficiency of energy use in Space heating 2008) has been set. In 2018, the definition of new amounted to 351,939 t CO eq, that is 6.2% lower OTE Group telecom companies (i.e. total energy (fuels and 2 Group-wide (DT) targets for the period beyond 41% Electricity than 2017 emissions. Total GHG emissions (i.e. 2020 was examined. The revised group-wide consumption per volume of data transferred) district heating) for fixed telecom network improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were targets include: covering 100% of DT Group value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease electricity consumption with electricity generated compared to 2017). from renewable energy sources by 2021, a 90% 12% reduction of scope 1 and scope 2 emissions and a Electricity in buildings 818.9 GWh Other indirect GHG emissions 25% reduction of the most important scope 3 OTE Group has extended the scope of its emissions emissions (purchased goods and services, capital inventory, in order to quantify the major indirect goods, and product lifecycle) per customer by emissions (scope 3) associated with its operations 2030, compared with 2017. and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of 32% Electricity for mobile telecom network the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

Sustainability Report 2018 71

Prioritization Greece, in 2018). The overall economic effect (benefit) of the measures implemented on the OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. energy consumption and the associated emissions: A detailed list of the measures implemented in (a) Energy conservation in 2018 is presented in the Appendix -Environmental • Telecom networks, aiming at the transition to Performance Data - Energy. a more energy efficient network. • Buildings, data centers and stores, with emphasis on the proper use and the efficient operation of the equipment installed. • Road transportation, focusing on the renewal of the vehicle fleet but also on the monitoring and control of transportation activity. (b) Covering electricity demand, directly or indirectly, by Renewable Energy Sources (RES). (c) Further development and marketing of products and services that enable environmental protection and contribute to the economic development of OTE Group.

Design and Implementation of Measures Energy Conservation In 2018, energy efficiency projects implemented at OTE Group level resulted in an energy conservation of 16.9 GWh (2.1% of OTE Group energy consumption in 2018). 90% of these savings are achieved in telecom networks (47% in mobile and 43% in fixed telecom network), while the rest 10% concerns buildings (electricity, district heating and fuels) and electricity generators. Savings in operational costs are estimated at € 2.2 million.

The total effect of energy conservation measures implemented in ΟΤΕ Group companies in Greece since 2008 (base year for the DT Group for climate change strategy but also for the annual GHG emissions reduction target for OTE and COSMOTE), is estimated at 113.8 GWh (electricity 103.5 GWh; diesel 10.3 GWh). The avoided GHG emissions associated with the energy conservation achieved is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

6.2 Energy and Climate Change Energy Consumption Monitoring GHG Emissions from Energy Total GHG Emissions of OTE Group chain and maximizing the net benefit (in terms of per country (2018) GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity 400 affect its operation and stakeholders, and the whole 29.7 For 2018, indirect (scope 3) GHG emissions were consumption accounting for 85% of total 350 22.6% Romania range of economic activities as well as life on the 31.0 estimated at 1,469 kt CO2 eq. The use of products consumption. In line with the distribution of eq)

2 29.1 planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts 300 and services sold by customers represent the main 368.1 source of scope 3 GHG emissions (about 61% of information concerning climate change risks and for 68% of total energy consumption and Romania 250 opportunities identified, following TCFD (Task force accounts for the rest 32%. 344.1 total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared 200 322.8 368 kt Scope 3 GHG emissions avoided are estimated at recommendations, can be found in the latest to 2017, mainly due to the increase of energy 150 CO₂ eq 7,400 t CO eq (Greece). This estimation takes into response of OTE to CDP. consumption in the telecom network. More specifically, 2 account paper recycling, reduction of paper, use telecom network electricity consumption in Greece 100 In this context, a comprehensive program has been teleconferences for internal operational needs and the

increased by 6.3% compared to 2017 (4.2% for OTE GHG emissions (kt CO 50 impact of the refurbishment of end devices. formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption 0 (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of 2016FY 2018 2017 2018 77.4% Greece Indirect (Scope 3) GHG emissions and other gas emissions in accordance with data transferred which increased by 16% and the Scope 2 (location - based) Scope 1 (from Energy) of OTE Group, 2018 the GHG Protocol, number of active broadband and TV subscribers 1.Total GHG emissions include f-gases fugitive (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), 1. Direct and indirect GHG emissions from energy consumption of OTE and COSMOTE decreased by 18%, compared to 2008 emissions 2. To ensure harmonized reposting among DT Group companies, Global Warming Potential (GWP) values used, are those results of the emission inventory, has contributed to the increase at Group level. It is 2.Global Warming Potential values used, are those included in the 5th Assessment Repost (AR) of IPCC. Past values (originally estimated with AR4 GWP values) have been recalculated. 9% Other 16% Purchased (d) the implementation of measures for the noted that in Greece fiber service subscribers included in the 5th Assessment Report of IPCC categories goods and services reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates Scope 1 GHG emissions GHG Emissions Calcualation of energy conservation measures have also from Energy (2018) 15% 14% affected energy consumption. Direct and indirect GHG emissions from Energy Downstream 1,469 kt Capital Direct (scope 1) and indirect (scope 2) GHG leased Scope 2 GHG emissions CO₂ eq goods emissions from energy consumption in 2018, assets At the same time, the efficiency of energy use in 17% Buildings (2018) OTE Group telecom companies (i.e. total energy 17% Network amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. 15% Buildings including f-gases fugitive emissions) were improved by 12% compared to 2017, reaching a 37% Mobile estimated at 368,061 t CO eq (a 6% decrease 46% Use of sold products value of 134 kWh/TB in 2018. Network 2 compared to 2017). 1. GHG emission estimates for solid waste disposal and use of sold products may be considered as indicative of the Other indirect GHG emissions expected emissions during the lifetime of the waste disposed and the products sold respectively OTE Group has extended the scope of its emissions 2.“Other categories” include Fuel- and energy-related inventory, in order to quantify the major indirect activities, business travel, waste generated in operations, emissions (scope 3) associated with its operations employee commuting, upstream / downstream transportation & distribution and the End of life treatment of sold products and to get a better understanding of its emissions 3. GHG emissions from electricity consumption are not 66% Vehicles profile. This information has been used in the included in the category “Fuel- and energy-related activities”. context of the ISO 14001 EMS for prioritizing 48% Fixed Network environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

Sustainability Report 2018 72

Prioritization Greece, in 2018). The overall economic effect (benefit) of the measures implemented on the OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. energy consumption and the associated emissions: A detailed list of the measures implemented in (a) Energy conservation in 2018 is presented in the Appendix -Environmental • Telecom networks, aiming at the transition to Performance Data - Energy. a more energy efficient network. • Buildings, data centers and stores, with emphasis on the proper use and the efficient operation of the equipment installed. • Road transportation, focusing on the renewal of the vehicle fleet but also on the monitoring and control of transportation activity. (b) Covering electricity demand, directly or indirectly, by Renewable Energy Sources (RES). (c) Further development and marketing of products and services that enable environmental protection and contribute to the economic development of OTE Group.

Design and Implementation of Measures Energy Conservation In 2018, energy efficiency projects implemented at OTE Group level resulted in an energy conservation of 16.9 GWh (2.1% of OTE Group energy consumption in 2018). 90% of these savings are achieved in telecom networks (47% in mobile and 43% in fixed telecom network), while the rest 10% concerns buildings (electricity, district heating and fuels) and electricity generators. Savings in operational costs are estimated at € 2.2 million.

The total effect of energy conservation measures implemented in ΟΤΕ Group companies in Greece since 2008 (base year for the DT Group for climate change strategy but also for the annual GHG emissions reduction target for OTE and COSMOTE), is estimated at 113.8 GWh (electricity 103.5 GWh; diesel 10.3 GWh). The avoided GHG emissions associated with the energy conservation achieved is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of and other gas emissions in accordance with data transferred which increased by 16% and the the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates of energy conservation measures have also affected energy consumption. Direct (scope 1) and indirect (scope 2) GHG At the same time, the efficiency of energy use in emissions from energy consumption in 2018, OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease compared to 2017).

Other indirect GHG emissions OTE Group has extended the scope of its emissions inventory, in order to quantify the major indirect emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Prioritization Greece, in 2018). The overall economic effect (benefit) of the measures implemented on the Energy and GHG Emissions Intensities OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. energy consumption and the associated emissions: A detailed list of the measures implemented in OTE Group (a) Energy conservation in 2018 is presented in the Appendix -Environmental • Telecom networks, aiming at the transition to Performance Data - Energy. Data traffic intensity - Emissions 58 a more energy efficient network. 71 (kg CO₂ eq/TB) 94 • Buildings, data centers and stores, with emphasis on the proper use and the efficient Energy Conservation and GHG Emissions Avoided 134 operation of the equipment installed. Data traffic intensity - Energy 153 Energy Efficiency Projects - OTE Group 2018 185 • Road transportation, focusing on the renewal (kWh/TB) of the vehicle fleet but also on the monitoring 9% and control of transportation activity. 93 Electricity generators GHG emissions intensity 97 (t CO₂ eq/M€) 102 (b) Covering electricity demand, directly or 1% indirectly, by Renewable Energy Sources (RES). Electricity Energy intensity 182 Buildings 173 (c) Further development and marketing of 43% (MWh/M€) 166 products and services that enable environmental Energy Electricity - Fixed Conservation protection and contribute to the economic 0 50 100 150 200 development of OTE Group. 16.9 GWh 2018 2017 2016 Design and Implementation of Measures 47% OTE and COSMOTE Energy Conservation Electricity - Mobile 100 In 2018, energy efficiency projects implemented at GHG emissions intensity 103 OTE Group level resulted in an energy conservation (t CO₂ eq/M€) 111 of 16.9 GWh (2.1% of OTE Group energy Details on the Effects of Energy Conservation Measures (Greece) consumption in 2018). 90% of these savings are Energy intensity 181 167 achieved in telecom networks (47% in mobile and 120 158

(MWh/M€) COSMOTE 43% in fixed telecom network), while the rest 10% 100 concerns buildings (electricity, district heating and 98 GHG emissions intensity 106 118 fuels) and electricity generators. Savings in 113.8 80 (t CO₂ eq/M€) operational costs are estimated at € 2.2 million. 94.8 60 Energy intensity OTE 174 The total effect of energy conservation measures 75.4 169 40 (MWh/M€) 166 implemented in ΟΤΕ Group companies in Greece 57.0 53.0

since 2008 (base year for the DT Group for climate 20 47.8 0 50 100 150 200 change strategy but also for the annual GHG 0 emissions reduction target for OTE and COSMOTE), 2016 2017 2018 2018 2017 2016 is estimated at 113.8 GWh (electricity 103.5 GWh; diesel 10.3 GWh). The avoided GHG emissions Energy Conservation (GWh) Avoided GHG Emissions (kt CO₂ eq) Energy intensity: Total electricity consumption per revenues associated with the energy conservation achieved GHG emissions intensity: GHG emissions from Energy per revenues Global Warming Potential (GWP) values used, are those included in the Data tra c intensity - Energy: Total energy per data transferred is about 57,000 t CO2 eq (about 21% of scope 1 5th Assessment Report (AR) of IPCC. Past values (originally estimated Data tra c intensity - Emissions: Scope 1 & 2 GHG emissions from Energy per and 2 GHG emissions from Energy of OTE Group in data transferred with AR4 GWP values) have been recalculated. Global Warming Potential (GWP) values used, are those included in the 5th Assessment Report (AR) of IPCC. Past values (originally estimated with AR4 GWP values) have been recalculated

Sustainability Report 2018 73 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of and other gas emissions in accordance with data transferred which increased by 16% and the the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates of energy conservation measures have also affected energy consumption. Direct (scope 1) and indirect (scope 2) GHG At the same time, the efficiency of energy use in emissions from energy consumption in 2018, OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease compared to 2017).

Other indirect GHG emissions OTE Group has extended the scope of its emissions inventory, in order to quantify the major indirect emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Prioritization Greece, in 2018). The overall economic effect Renewable Energy Sources Products and services that contribute to • The monitoring and management of energy consumption. Smart Home Service (benefit) of the measures implemented on the • OTE Group (Greece) has secured, for the 8th Climate Change mitigation OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. • The monitoring and management of vehicle energy consumption and the associated emissions: consecutive year, from PPC S.A., one of its OTE Group supports in practice the A detailed list of the measures implemented in Holding the increase in the global average fleets and driving behavior/performance. (a) Energy conservation in electricity providers for 2018, Guarantees of transition of current urban infrastructures 2018 is presented in the Appendix -Environmental temperature to well below 2°C (Paris Agreement, • The smooth and efficient operation of hotels and • Telecom networks, aiming at the transition to Origin (GOs), assuring that for the total electricity into new, Smart City structures. Via Performance Data - Energy. December 2015), requires substantial emission hospital units (energy equipment, IT systems, a more energy efficient network. consumption from PPC S.A., an equivalent innovative technologies Internet of Things reductions at global level, that will reach 40%-70% services offered to customers etc.). • Buildings, data centers and stores, with amount of energy has been produced from (IoT), it proposes solutions on a wide range by 2050 compared to the 2010 emissions. A global • The development of smart electricity grids emphasis on the proper use and the efficient Renewable Energy Sources. of issues related to cities operation (from warming of 1.5°C would require not only greater (transmission and distribution) that will facilitate operation of the equipment installed. car parking and street lighting to energy, The GOs secured cover more than 98% of the but also faster emission reductions. In this the large-scale penetration of RES electricity. • Road transportation, focusing on the renewal waste and water management, and air 2018 electricity consumption of OTE Group in framework, exploiting the available ICT potential, • The restriction of business travels by using the of the vehicle fleet but also on the monitoring quality monitoring). Through there Greece. estimated at 12 Gt CO eq in 2030, according to advanced telepresence infrastructure available and control of transportation activity. 2 technologies, real-time, transparent the SMARTer 2030 study of GeSI, becomes (tele-/video-conference) Taking these GOs into account, the effective information becomes available to the (b) Covering electricity demand, directly or imperative. scope 2 emissions (market-based) at Group level More information on the energy consumption and users to assist them in taking better indirectly, by Renewable Energy Sources (RES). the associated GHG emissions of ΟΤΕ Group are are reduced to 94,182 t CO2 eq. OTE Group is fully aware of the ICT enabling role in decisions. (c) Further development and marketing of tackling climate change and the opportunities this provided in the Appendix- Environmental • RES electricity generation (autonomous photovoltaic products and services that enable environmental role offers for its further development, and is Performance Data - Energy and specifically for OTE In 2018, OTE Group launched in Greece a and small wind turbines systems in 18 base protection and contribute to the economic therefore developing products and services that and COSMOTE. see here. new service targeting individual home stations and 2 roof-top photovoltaic systems of development of OTE Group. address this potential (for more information see operation, the COSMOTE Smart Home 222 kWp installed capacity) in 2018 amounted sections Products and Services for Sustainability). service. The service aims to make a house to about 600 MWh (Greece). Design and Implementation of Measures In this: more functional, more comfortable and safer by allowing the users to control, (a) (broadband & mobile Energy Conservation Reduction of emissions during use of Broadband services among others, the lighting, the plugs, the broadband) contribute to the reduction of Supporting Research Activities / products sold temperature and the motion in the room, In 2018, energy efficiency projects implemented at transportation needs, to substitution of Initiatives via a single app, from everywhere. OTE Group level resulted in an energy conservation OTE voluntarily participates (since September emissions-intensive products, processes, etc. of 16.9 GWh (2.1% of OTE Group energy 2010) in an initiative established by the European (dematerialization), and to the development of The OTE Group supports the Research consumption in 2018). 90% of these savings are Commission for maximizing energy efficiency of e-commerce and e-governance. Project "PANhellenic GEophysical achieved in telecom networks (47% in mobile and broadband equipment ("Code of Conduct on Energy observatory of Antikythera (PANGEA)", a (b) ICT services developed by OTE Group, in 43% in fixed telecom network), while the rest 10% Consumption of Broadband Equipment", BB CoC) flagship initiative of the National collaboration with specialized companies and concerns buildings (electricity, district heating and both on the customer and the network side. Observatory of Athens. PANGEA’s based on Cloud and M2M (Machine to Machine) fuels) and electricity generators. Savings in Signatories of the BB CoC agree to make all objectives relate to climate change and its technologies allow for: operational costs are estimated at € 2.2 million. reasonable efforts to achieve the power targets set impact on severe weather and natural

(targets are subject to consultations between disasters in Greece and the Eastern • The utilization of fully customized The total effect of energy conservation measures signatories every two years), for at least 90% of Mediterranean. The island of Antikythera computational resources without requiring implemented in ΟΤΕ Group companies in Greece the new-model items introduced to the market. in southwest Greece will be the National investments in IT infrastructure. since 2008 (base year for the DT Group for climate Hub for continuous monitoring of Essential change strategy but also for the annual GHG Climate Variables (ECVs). The OTE Group emissions reduction target for OTE and COSMOTE), has provided telecommunication is estimated at 113.8 GWh (electricity 103.5 GWh; equipment and services, as well as its facilities on Antikythera island to house This would enable COSMOTE Smart Home customers diesel 10.3 GWh). The avoided GHG emissions to monitor, control and potentially reduce their energy scientific instruments and research associated with the energy conservation achieved consumption and expenditures. infrastructure. is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in

Sustainability Report 2018 74 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of and other gas emissions in accordance with data transferred which increased by 16% and the the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates of energy conservation measures have also affected energy consumption. Direct (scope 1) and indirect (scope 2) GHG At the same time, the efficiency of energy use in emissions from energy consumption in 2018, OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease compared to 2017).

Other indirect GHG emissions OTE Group has extended the scope of its emissions inventory, in order to quantify the major indirect emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Prioritization Greece, in 2018). The overall economic effect 6.3 Circular Economy With respect to materials use in offices, in 2018: The OTE Groups' Approach for Circular Economy (benefit) of the measures implemented on the • Paper consumption amounted to 337 t (about OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. 18 kg per employee) showing a 14% decrease energy consumption and the associated emissions: OTE Group recognizes the scarcity of natural A detailed list of the measures implemented in resources and considers a more efficient use of compared to 2017. (a) Energy conservation in Purchase of goods sales 2018 is presented in the Appendix -Environmental • All bills sent to customers in Greece are printed and services OTE Group • Telecom networks, aiming at the transition to these resources a priority for sustainable Performance Data - Energy. development. To achieve this, principles of circular on FSC certified paper. a more energy efficient network. • The utilization of IT applications in the context of • Buildings, data centers and stores, with economy are integrated in its operations across its value chain by: the broader digital transformation program of emphasis on the proper use and the efficient OTE Group, resulted in 390 t of paper savings operation of the equipment installed. (Greece). • Setting eco-design technical specifications for inable reso • , focusing on the renewal sta urc Road transportation su es the products provided (see section Responsible • Paper, cardboard and plastic are the main d m n a of the vehicle fleet but also on the monitoring a n packaging materials used. Plastic consumption n a Marketing) and contractual terms covering g g i e and control of transportation activity. s m has been significantly reduced (about 95% since e d sustainability issues (see section Responsible e o

n

c t (b) Covering electricity demand, directly or Purchasing and Supply Chain Management) 2016), while the increase observed in paper and E Suppliers Reduced Recycle/Reuse Proper Customers cardboard consumption (partially attributed to Materials Materials Material indirectly, by Renewable Energy Sources (RES). • Applying the principle "Reduce – Reuse – Recycle" Used Disposal the plastic reduction) need to be addressed. (c) Further development and marketing of for its activities. • The use of refilled cartridges accounted for about products and services that enable environmental • Expanding the lifetime and overall utilization of the equipment provided to customers, and 55% of total consumption at Group level. Rational and efficient protection and contribute to the economic use of natural resourses development of OTE Group. facilitating the recycling of their discarded by utilizing COSMOTE equipment. Since telecommunications operations have no services specific need for water use, OTE Group Monitoring of materials used Design and Implementation of Measures • Developing products and services that contribute to the rational and efficient use of natural companies consume water (acquired solely from Energy Conservation resources and the reduction of waste generated public water companies which are responsible (see section Products and Services for not only for water supply but also for the In 2018, energy efficiency projects implemented at Sustainability) and sustainable uptake of water from the available OTE Group level resulted in an energy conservation • Informing and encouraging citizens to adopt water resource systems) exclusively for of 16.9 GWh (2.1% of OTE Group energy recycling practices. employees’ hygiene, plant irrigation and office / Recycling Customer equipment take back consumption in 2018). 90% of these savings are stores cleaning. Thus, water sources are not and recycling achieved in telecom networks (47% in mobile and Materials and Natural Resources significantly affected by OTE Group activities. 43% in fixed telecom network), while the rest 10% concerns buildings (electricity, district heating and Management Water consumption, in 2018, amounted to fuels) and electricity generators. Savings in Aiming at the efficient use of materials and natural 297,647 m (about 16.8 m per employee), operational costs are estimated at € 2.2 million. resources that are necessary for the provision of showing a decrease of 1% compared to 2017. ICT services (OTE Group companies are not actually Wastewater generated from OTE Group operations The total effect of energy conservation measures manufacturing any products themselves), OTE refers to domestic wastewater, which is directed to implemented in ΟΤΕ Group companies in Greece Group procurement processes incorporate the available wastewater networks and is then since 2008 (base year for the DT Group for climate sustainability criteria to its suppliers (see section treated according to area–specific processes in the change strategy but also for the annual GHG Responsible Purchasing and Supply Chain municipal wastewater facilities. In Greece, there are emissions reduction target for OTE and COSMOTE), Management). Internally, natural resources three cases in main buildings and warehouses is estimated at 113.8 GWh (electricity 103.5 GWh; conservation is addressed through the efficient where the companies operate wastewater diesel 10.3 GWh). The avoided GHG emissions operation and maintenance of the telecom network, treatment plants that handle about 14,400 m3 of associated with the energy conservation achieved the digitization of internal processes and the wastewater, of which 90% is reused for irrigation is about 57,000 t CO eq (about 21% of scope 1 2 development of waste management practices that purposes. No planned or unplanned water and 2 GHG emissions from Energy of OTE Group in contribute to the increase of materials recovery and discharges to the environment as well as no the decrease of waste disposed. significant spills occurred during 2018.

Sustainability Report 2018 75 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of and other gas emissions in accordance with data transferred which increased by 16% and the the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates of energy conservation measures have also affected energy consumption. Direct (scope 1) and indirect (scope 2) GHG At the same time, the efficiency of energy use in emissions from energy consumption in 2018, OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease compared to 2017).

Other indirect GHG emissions OTE Group has extended the scope of its emissions inventory, in order to quantify the major indirect emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Prioritization Greece, in 2018). The overall economic effect Waste Management Refurbishment of End Devices (benefit) of the measures implemented on the Waste Management 2018 OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. Solid waste generated by the OTE Group activities With a view to expand the lifetime and overall energy consumption and the associated emissions: A detailed list of the measures implemented in derive from the development, maintenance and utilization of the equipment provided to customers (a) Energy conservation in 2018 is presented in the Appendix -Environmental operation of the telecom networks and equipment, (a key target under the circular economy) but also • Telecom networks, aiming at the transition to Performance Data - Energy. from offices and stores operation as well as from to ensure the proper end-of-life management of a more energy efficient network. the management of the corporate vehicle fleet. In end devices, a project that concerns the • Buildings, data centers and stores, with addition, products sold / leased at the end of their 7,993 t of waste were generated from the OTE Group activities, refurbishment or retrofitting of end devices has emphasis on the proper use and the efficient lifetime represent another, indirect, source of solid of which 70% are recycled, reused or incinerated. been developed (Greece). These include ADSL, operation of the equipment installed. waste (downstream). VDSL, VoIP modems, etc., and TV decoders • Road transportation, focusing on the renewal (Satellite & IP). of the vehicle fleet but also on the monitoring Aiming at the effective management of waste End devices received from customer premises, and control of transportation activity. generated, an extensive network of collection, 1,182 3,648 489 2,657 17 collected through OTE Group retail network, or monitoring, storage and management/recycling, (b) Covering electricity demand, directly or Hazardous Technical Paper Residual Other returned by customers at the end of their contract which covers all activities nationwide, has been indirectly, by Renewable Energy Sources (RES). (in line with the contractual terms that include developed. In this context, OTE Group companies lease options at no cost for end devices) are among (c) Further development and marketing of work with certified / authorized companies to the sources of equipment to be refurbished. products and services that enable environmental ensure (a) the proper management of waste protection and contribute to the economic generated (including cross-border transportation) Equipment entered the refurbishment plant development of OTE Group. and (b) the recovery of the materials contained (e.g. undergo detailed control checks, are repaired if copper, iron and steel, etc.) and the conservation of necessary, and put back in the market fully Design and Implementation of Measures natural resources. Recycle/Reuse/Incineration Disposal operational and in compliance with environmental legislation. Discarded equipment are forwarded for Energy Conservation OTE Group has set up a take-back scheme (for recycling through the authorized entities, with In 2018, energy efficiency projects implemented at phones and accessories, tablets, home batteries 70% 30% which the OTE Group cooperates. OTE Group level resulted in an energy conservation and ink cartridges) through its retail network in the of 16.9 GWh (2.1% of OTE Group energy countries it operates to facilitate the recycling of OTE was the first, and still is the only company in consumption in 2018). 90% of these savings are products sold / leased at the end of their useful Greece, to employ refurbishment processes for end devices. Following the completion of a major achieved in telecom networks (47% in mobile and lifetime. In 2018, about 17 t of customers’ phones Hazardous: Waste that according to legislation require specific treatment (e.g. 43% in fixed telecom network), while the rest 10% were collected and forwarded for recycling. stationary engine batteries lubricants, telephone poles impregnated with creosote oil) investment especially for the refurbishment concerns buildings (electricity, district heating and process the unit has been successfully relocated fuels) and electricity generators. Savings in Existing recycling programs in 2018 covered 70% Technical: Materials and equipment used for the provision of telecom services (e.g. and upgraded its operations. In 2018, about operational costs are estimated at € 2.2 million. of waste generated at OTE Group level. cables. metals, etc.) and products that make use of the telecom services 170,000 end devices (ADSL & VDSL modems, TV provided (e.g. phones and related accessories, portable decoders) were refurbished. For the period The total effect of energy conservation measures More information on the quantities of waste batteries, etc) 2012 – 2018 526,784 end devices were implemented in ΟΤΕ Group companies in Greece generated/recycled is provided in the Appendix- refurbished while more than 105,000 pieces have Residual: Typical municipal solid waste from buildings, packaging materials and been recycled, through this route. The operation of since 2008 (base year for the DT Group for climate Environmental Performance Data-Waste and waste related to office operation (e.g. ink cartidges) change strategy but also for the annual GHG specifically for OTE and COSMOTE see here. the unit resulted in a total cost reduction of about € 26 million (2012 – 2018). Avoided emissions are emissions reduction target for OTE and COSMOTE), Other: Waste streams not included in the above-mentioned categories (e.g. end of is estimated at 113.8 GWh (electricity 103.5 GWh; life vehicles) estimated at about 5,000 t CO2 eq for 2018 (about diesel 10.3 GWh). The avoided GHG emissions 2.5% of OTE Group scope 3 emissions in Greece associated with the energy conservation achieved from the category Purchased goods and Services) and 15,000 t CO2 eq for the period 2012 – 2018. is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in The operation of the unit has a positive impact on natural resources conservation through the reuse of metals included in the refurbished end devices.

Sustainability Report 2018 76 6.2 Energy and Climate Change Energy Consumption Monitoring chain and maximizing the net benefit (in terms of GHG emissions) generated from the widespread OTE Group recognizes that climate change is a Total energy consumption of OTE Group in 2018 adoption of ICT products and services. global environmental problem the impacts of which amounted to 818.9 GWh, with electricity affect its operation and stakeholders, and the whole consumption accounting for 85% of total For 2018, indirect (scope 3) GHG emissions were range of economic activities as well as life on the consumption. In line with the distribution of estimated at 1,469 kt CO2 eq. The use of products planet (see Annual Financial Report 2018). Detailed revenues per country of operation, Greece accounts and services sold by customers represent the main information concerning climate change risks and for 68% of total energy consumption and Romania source of scope 3 GHG emissions (about 61% of opportunities identified, following TCFD (Task force accounts for the rest 32%. total scope 3 emissions). on Climate-related Financial Disclosures) Energy consumption increased by 1.9% compared recommendations, can be found in the latest to 2017, mainly due to the increase of energy response of OTE to CDP. consumption in the telecom network. More specifically, telecom network electricity consumption in Greece In this context, a comprehensive program has been increased by 6.3% compared to 2017 (4.2% for OTE formulated and implemented that includes: and 9.5% for COSMOTE) and by 0.7% in Romania. (a) the monitoring of energy consumption (b) the calculation of greenhouse gas (GHG) The increased activity, as depicted in the volume of and other gas emissions in accordance with data transferred which increased by 16% and the the GHG Protocol, number of active broadband and TV subscribers (c) the identification of priorities, based on the that grew by 1.8% (all figures are at Group level), results of the emission inventory, has contributed to the increase at Group level. It is (d) the implementation of measures for the noted that in Greece fiber service subscribers reduction of energy consumption and the increased by 50% compared to 2017. The associated GHG emissions. expansion / modernization of the telecom network together with changes in the implementation rates of energy conservation measures have also affected energy consumption. Direct (scope 1) and indirect (scope 2) GHG At the same time, the efficiency of energy use in emissions from energy consumption in 2018, OTE Group telecom companies (i.e. total energy amounted to 351,939 t CO2 eq, that is 6.2% lower consumption per volume of data transferred) than 2017 emissions. Total GHG emissions (i.e. improved by 12% compared to 2017, reaching a including f-gases fugitive emissions) were value of 134 kWh/TB in 2018. estimated at 368,061 t CO2 eq (a 6% decrease compared to 2017).

Other indirect GHG emissions OTE Group has extended the scope of its emissions inventory, in order to quantify the major indirect emissions (scope 3) associated with its operations and to get a better understanding of its emissions profile. This information has been used in the context of the ISO 14001 EMS for prioritizing environmental aspects across the value chain of the Group and is utilized in identifying measures to reduce the footprint of its activities across its value

About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

Prioritization Greece, in 2018). The overall economic effect Environmental Impact- Refurbishment of End Devices (benefit) of the measures implemented on the OTE Group has set the following priorities for reducing operational cost is estimated at € 14 million. • About 700,000 devices have been energy consumption and the associated emissions: A detailed list of the measures implemented in processed since 2012 (a) Energy conservation in 2018 is presented in the Appendix -Environmental • 26 employees (end 2018) • Telecom networks, aiming at the transition to Performance Data - Energy. Input a more energy efficient network. • Buildings, data centers and stores, with emphasis on the proper use and the efficient operation of the equipment installed. • Road transportation, focusing on the renewal Refurbishment Unit of the vehicle fleet but also on the monitoring Control, repair, put back to market or recycle and control of transportation activity. Activity (b) Covering electricity demand, directly or indirectly, by Renewable Energy Sources (RES). (c) Further development and marketing of products and services that enable environmental protection and contribute to the economic development of OTE Group. For the period 2012-2018: Design and Implementation of Measures Output · Μore than 526,000 devices have been refurbished · 100,000 have been recycled Energy Conservation Refurbished Units In 2018, energy efficiency projects implemented at OTE Group level resulted in an energy conservation of 16.9 GWh (2.1% of OTE Group energy 180,000 consumption in 2018). 90% of these savings are 160,000 achieved in telecom networks (47% in mobile and 140,000 43% in fixed telecom network), while the rest 10% Cost reduction of € 26 million (2012-2018) concerns buildings (electricity, district heating and Outcome 120,000 fuels) and electricity generators. Savings in 100,000 operational costs are estimated at € 2.2 million. 80,000 60,000 The total effect of energy conservation measures implemented in ΟΤΕ Group companies in Greece 40,000 since 2008 (base year for the DT Group for climate 20,000 change strategy but also for the annual GHG 0 emissions reduction target for OTE and COSMOTE), GHG emissions reduction is estimated at 113.8 GWh (electricity 103.5 GWh; Impact 2012 2013 2014 2015 2016 2017 2018 • 5,000 t (2018) and diesel 10.3 GWh). The avoided GHG emissions associated with the energy conservation achieved • 15,000 t (2012 - 2018) Modem - Router TV decoder is about 57,000 t CO2 eq (about 21% of scope 1 and 2 GHG emissions from Energy of OTE Group in

Sustainability Report 2018 77 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

6.4 Electromagnetic Fields Activities in Romania Information Activities in 2018 Applying the Precautionary Principle OTE Group has adopted and implements an EMF In 2018, there were 30 EMF measurements → 200 leaflets “Pedion 24 – Continuous policy in which its commitment to performed by ANCOM (National Authority for → The levels of electromagnetic fields, in all Measurements of Electromagnetic • apply the precautionary principle for the whole Management and Regulation in Communications) Base Stations, comply with the suggested Radiation Program” and “How mobile range of the products and services provided on Telekom Romania sites at the request of limits of the World Health Organisation telephony works” were distributed • contribute to public protection through actions external stakeholders. Public exposure safety limits, and the International Commission on through the OTE Group retail aiming to increase transparency, awareness, as set by the Order of the Minister of Public Health Non-Ionizing Radiation Protection (ICNIRP), network and in the context of the participation and scientific knowledge, is set out. no. 1193/2006, were not found to be exceeded in as well as with the latest national limits points of free public access. information dissemination activities which are only 60–70% of the ICNIRP Activities in Greece carried out. limits, in all points with free public access. Through fixed monitoring sensors installed in urban COSMOTE supports the “Pedion24” program of centers, ANCOM makes measurement results → 200 students and 400 employees → For every wireless telecommunication continuous electromagnetic fields measurements, available to the public in real time. In addition, were informed. station and mobile Base Station, a radio the results of which are readily accessible to the ANCOM performs measurements with mobile emission study and an electromagnetic public at the program’s website, and operates the equipment which are also publicly available. background study (in some cases) is COSMOTE Environmental Electromagnetic Fields More about EMF Continuous monitoring in Romania conducted, for an area of up to a radius Measurement Laboratory (accredited according to can be found here. of 50 meters and 300 meters EN ISO / IEC 17025). In 2018, the scope of the respectively to ensure that all stations laboratory accreditation expanded to cover operate within legal limits. The amount measurements regarding 5G services. spent on programs and studies concerning EMF Measurements in Greece EMF in 2018 was € 360,000. In 2018, in addition to the measurements made in the context of the “Pedion24” program and by the → All products placed in the retail network COSMOTE laboratory (20 measurements), 15 more 300 bear all necessary labels foreseen by measurements were conducted by independent national and EU legislation while all institutions (Universities, Greek Atomic Energy mobile phones sold operate within 250 237 245 232 236 Commission) at COSMOTE’s request. Public 218 appropriate electromagnetic field safety exposure safety limits were not found to be limits (see section Communication with exceeded in points of free public access, while the 200 Customers). measurements made by the Greek Atomic Energy Commission (to a sample of at least 20% of the 150 base stations operating in urban areas each year) led to the same result. 100 71 To improve outreach, an e–mail address for questions regarding electromagnetic fields 50 46 40 31 information is available (emfi[email protected]). 20 0 0 0 0 0 0 2014 2015 2016 2017 2018

Measurement Measurement in Ad Hoc measurements Stations (number) excess of the limit (%) (number)

• 8 new EMF measurement stations in the context of “Pedion24” program in 2018 • 65.6 million EMF measurements since the beginning of the “Pedion24” program • 20 measurements conducted by the COSMOTE EMF measurement laboratory in 2018 • Public exposure safety limits were not fount to be exceeded in points of free public access

Sustainability Report 2018 78 About this Report OTE Group Responsible Business Employees Customers Society Climate and Environment

6.5 Other Environmental Aspects Biodiversity protected species, etc.) is available on the relevant website of the European Commission (NATURA OTE Group is aware of the high value of 2000 sites) and the RAMSAR convention. Ozone biodiversity in the countries it operates and OTE Group companies implement all appropriate recognizes the close relationship between All installations operating in NATURA sites are fully procedures for the management for biodiversity, sustainable development and human licensed by regulatory authorities in Greece ozone-depleting substances used as refrigerants well–being. At the same time, the provision of high (Hellenic Telecommunications and Posts and in line with regulations and national legislation quality telecommunication services everywhere and Committee) and Romania (National Authority for in force. These procedures include replacement of at any time necessitates the operation of a Management and Regulation in Communications). legacy equipment or replacement of the refrigerant geographically extensive network of All buildings / installations / telecom lines that are in legacy equipment. Fire suppression systems telecommunication installations (base stations and currently in use and / or installed by OTE Group are already use suppressants with zero ozone depleting wireless communication stations) including, also registered and relevant information is potential (ODP). inevitably, in NATURA 2000 sites, RAMSAR and available. other protected areas. The quantity of hydrofluorocarbons (HFC) replenished for 2018 was about 9 t of refrigerants, In Greece, there were, in 2018, 499 COSMOTE base Number of OTE and COSMOTE installations in which is equivalent to GHG emissions of about 16 stations and 219 OTE base stations installed in 191 Natura Sites per Administrative Region in Greece kt CO2 eq (decreased by about 2% compared to and 117 Natura sites respectively, covering areas 2017). These emissions account for about 4.6% of of 2.495 and 30.35 hectares, respectively. In the GHG emissions from energy use (both scope 1 Romania there were 32 installations (31 base and scope 2). With a view to repair any potential stations and 1 building) in Natura sites, covering an leakages, monitoring and maintenance programs area of 1.7 hectares (2018). More information on Sterea Ellada are in place. the protected areas (e.g. location, maps, area, Peloponnese Southern Aegean Quantities of Refrigerants Replenished Crete Central Macedonia

2016 2017 2018 Ionian Islands Thessalia R407C (kg) 4,091.16 4,367.94 4,629.63 R410A (kg) 1,321.58 1,340.95 1,095.90 Epirus R134a (kg) 38.55 60.00 408.00 Western Macedonia R417A (kg) 2,191.20 2,436.75 2,080.20 Western Greece R422 (kg) 79.00 121.00 91.35 Northern Aegean R427a (kg) 668.00 605.00 649.00 Attica Notes  To maintain consistency with GHG emissions estimates from energy use Global Warming Potential GWP( ) values applied are those included East Macedonia & Thrace in the 5th Assessment Report of IPCC  During the period 2015-2018 about 2,300 kg of R22 (from replacement of refrigerant or change of equipment) have been replaced 0 10 20 30 40 50 60 70 80 90

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Sustainability Report 2018 79 Hellenic Telecommunications Organisation S.A. 99, Kifissias Ave., 15124 Maroussi, Athens, Greece cosmote.gr