Sustainability Report 2014 Table of Contents 4 Responsible Service

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Sustainability Report 2014 Table of Contents 4 Responsible Service SUSTAINABILITY REPORT 2014 TABLE OF CONTENTS 4 RESPONSIBLE SERVICE ................................................................................................... 81 4 1. Closing the digital divide . 82 4 .2 . Protection of our children in the digital age . 88 4 .3 . ICT for sustainability . 91 4 4. Innovation for sustainability . 92 4 .5 . Service availability . 97 4 6. Data protection . 99 4 7. Addressing legal and ethical aspects of content service providing . 101 4 .8 . Safe use of mobile phones, electromagnetic fields . 102 LETTER FROM THE CEO ........................................................................................................ 5 5. EMPLOYEES............................................................................................................. 105 5 1. Talent management . 107 ABOUT THE REPORT ........................................................................................................... 9 5 .2 . Occupational health and safety . 113 5 .3 . Human rights, equal opportunities . 117 OUR APPROACH . 11 5 4. Managing changes . 124 5 .5 . Involvement of our employees . 127 Sustainability approach . 12. Sustainability strategy . 12 6. SOCIAL ENGAGEMENT ................................................................................................... 133 Sustainability coordination . 15 6 1. Sponsorship . 134 Stakeholders . 19 6 .2 . Donations . 136 Materiality . 25 6 .3 . Our employees as corporate citizens . 141 Strategies and policies according to our sustainability approach . 27 7. CLIMATE AND ENVIRONMENTAL PROTECTION............................................................................. 143 ABOUT THE GROUP ........................................................................................................... 31 7 1. Climate protection and energy efficiency . 146 7 .2 . Resources management . 150 KEY OPERATING STATISTICS OF MAGYAR TELEKOM GROUP ..................................................................... 37 7 .3 . Emissions . .161 7 4. Environmental objectives, costs and compliance . 165 1. CORPORATE GOVERNANCE AND RISK MANAGEMENT....................................................................... 43 1 1. Corporate governance . 44 8. INVESTOR RELATIONS ................................................................................................... 167 1 .2 . Risk management . 51 1 .3 . Corporate compliance . 52 9. COOPERATION ..........................................................................................................169 1 4. Regulatory compliance . 54 9 1. Professional cooperation . 170 1 .5 . Political presence . 54 9 .2 . Cooperation in the field of environmental protection and society . 171 2. SUPPLIERS............................................................................................................... 55 ASSURANCE STATEMENT ....................................................................................................175 2 1. Suppliers’ relations . 56 2 .2 . Sustainability in the supply chain . 57 GRI CONTENT INDEX......................................................................................................... 177 2 .3 . Local procurement . 60 2 4. DELFIN Award to responsible companies . 61 COMPLIANCE WITH THE PRINCIPLES OF THE UN GLOBAL COMPACT ............................................................199 3. CUSTOMER RELATIONS ................................................................................................... 63 LIST OF ABBREVIATIONS ..................................................................................................... 201 3 1. Customer satisfaction . 64 3 .2 . Management of customer complaints . 71 IMPRESSUM................................................................................................................. 207 3 .3 . Informing our customers . 73 3 4. Involvement of our customers . 74 3 4 LETTER FROM THE CEO LETTER FROM THE CEO Under the partnership agreement we signed with the Hungarian government in February, our investment projects aim to ensure that high-speed broadband internet become accessible all over the country, as soon as possible . Dear Reader, further rollout the automation of our proces- ses . Anticipating the changes of customer As a result of our focused strategic efforts, demand, technological development and new Magyar Telekom successfully kept its leading business models, we deploy our new compe- positions on the Hungarian fixed-line, mobile, tences to obtain a leading role in providing internet and ICT markets in 2014 . Despite digital services to homes for the benefit of the uncertain macroeconomic and market both the consumer and our partners . conditions, our capability to retain customers strengthened, and we achieved major quan- In addition to spearheading innovation, we titative growth in this respect . We gradually are also a significant employer, as the Group improved our network and customer servicing employs more than 12 000 highly qualified potential, proactively exploiting different employees in Hungary, and more than partnership models . 100 000 people work for our vendors, including approximately 3000 Hungarian The changes of our external environment small and medium-sized businesses . increasingly urge us to adopt new approaches in how we pursue our business and serve our Intensive use of new technologies and ICT customers . We continue our transformation solutions contributes to the improvement of along our strategic foci towards becoming a people’s quality of life, efficiency of busines- diversified service provider . ses and the international competitiveness of Hungary’s economy . In that context, we feel It is our mid-term strategic goal to establish a responsible for ensuring digital literacy and more efficient, agile organization, to simplify safer internet use among as many people as our product and service portfolio, as well as to possible . 5 6 LETTER FROM THE CEO Accessibility of high-speed broadband inter- Magyar Telekom employees are active and Last September, Magyar Telekom won the most prestigious net is an important, but in itself not a sufficient interested not only when it comes to volunteer precondition to achieving digital equality, work, but in other areas of sustainability, as well . international recognition, so far, for its sustainability which is one of the main goals defined by the As part of the hello holnap! point collecting performance . Based on the sustainability-relevant assessment partnership agreement . Most internet users plan attached to sustainability activities, 2146 in Hungary use only basic features and have employees collected a total of 5495 points of their operations, Magyar Telekom won the third place reservations about online shopping, electro- through charitable team building exercises, among 108 telecommunication companies of the world nic transactions and other modern, but less internal knowledge sharing, use of TeleBike and known services . I find to be of key importance attending hello holnap! club events . in the report compiled by Oekom Research . According to that we increase awareness among consu- mers and cooperate with our partners with We strove to bring our sustainability initiatives the document, which also contains the ranked list of the the aim to achieve that the number of users closer to the everyday lives of our customers, world’s telecom companies, Magyar Telekom is on the third of such modern services in Hungary reach that is why we developed the hello holnap! and then exceed the average in the European mobile application . The app regularly gives place from the aspect of sustainability, following its mother Union . sustainability-related tasks to the user and company, Deutsche Telekom and BT Group . rewards him or her by points in return for the The spread of digitalization is the goal of tasks’ successful completion, which they can Telekom Okosdigitális Program (Telekom trade in for monetary donations to be made Smartdigital Program), in the framework of to NGOs on their behalf . By the application, which our employees volunteer to put to use we linked digitalization to social responsibility their expertise to actively promote digital and donations . I am extremely proud that after Regarding T-Systems, let me refer to another So, what does the future hold for us? In 2015, maturity, digital literacy, as well as safe and close to half a year, more than 3000 people major success . In 2014, T-Systems Hungary we embark upon a task that is totally new for conscious internet use by children . have downloaded the application . was responsible for 14 285 tons of CO2-emis- us, but is closely related to sustainability . As sion, including the emission generated by the ultimate step made towards establishing Volunteer work is not unfamiliar to employees By selecting T-Systems Hungary and its part- the total energy consumption of the data closer cooperation among units working of Magyar Telekom . As part of the Digital ner, Csepel as the winner of the BuBi tender, parks . The number is enormous . It equals to within the corporate Group, but so far at Bridge initiative, which had already been in BKK chose the bike rental solutions used in the emission of close to 7000 cars or 1000 different geographical locations, we will move place for 10 years in 2014, Telekom Okosdigi- our TeleBike system, which has been in place households in a year . T-Systems Hungary was to a new headquarters building in 2018 . In tális Program and other similar activities, 961 for years . In course of the project’s implemen- the first in Hungary to set the goal.
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