TELUS SUSTAINABILITY-LINKED BOND FRAMEWORK JUNE 2021 TELUS Overview
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Sustainability-Linked Bond Framework June 2021 Contents TELUS Overview ..........................................................................................................................2 TELUS’ Sustainability Strategy ..............................................................................................2 Sustainability-Linked Bond Framework ........................................................................... 4 1. Selection of Key Performance Indicator .......................................................................4 2. Calibration of Sustainability Performance Target (SPT) ......................................5 3. Bond Characteristics ...............................................................................................................5 4. Reporting........................................................................................................................................6 5. Verification .....................................................................................................................................6 Pre-issuance ..................................................................................................................................................6 Post-issuance................................................................................................................................................6 Disclaimer ........................................................................................................................................7 Appendix I – SBTi assessment of SPT .............................................................................. 8 1 • TELUS SUSTAINABILITY-LINKED BOND FRAMEWORK JUNE 2021 TELUS Overview TELUS Corporation (TSX: T; NYSE: TU) (TELUS) is a dynamic, better. TELUS Health is Canada’s leader in digital health world-leading communications technology company with $16 technology, improving access to health and wellness services billion in annual revenue and 16 million customer connections and revolutionizing the flow of health information across the spanning wireless, data, IP, voice, television, entertainment, video continuum of care. TELUS Agriculture provides innovative digital and security. We leverage our global-leading technology and solutions throughout the agriculture value chain, supporting compassion to enable remarkable human outcomes. Our long- better food outcomes from improved agri-business data insights standing commitment to putting customers first fuels every and processes. TELUS International (Cda) Inc. (TSX and NYSE: aspect of our business, making us a distinct leader in customer TIXT) is a leading digital customer experience innovator that service excellence and loyalty. Over the past decade, TELUS has delivers next-generation AI and content management solutions been regularly recognized as having one of the fastest wireless for global brands across the sectors of technology, gaming, networks in the world, reinforcing our commitment to provide ecommerce/FinTech, communications/media, health care and Canadians with access to superior technology that connects us travel/hospitality. TELUS and TELUS International operate in to the people, resources and information that make our lives 25+ countries around the world. TELUS’ Sustainability Strategy Sustainability is embedded in our corporate strategy, values and absolute domestic Scope 1 and 2 greenhouse gas (GHG) culture and our sustainability performance provides us with emissions by 25 per cent by 2020 over 2010 levels – in 2020, we social, environmental and economic opportunity. We take action set new transformational targets to address climate change: on sustainability issues that are important to our stakeholders, • Achieve operational net carbon neutrality by 2030. have a significant impact on our company, and that we have an • Procure 100 per cent of our electricity requirements from opportunity to positively influence. renewable or low-emitting sources by 2025. • Reduce our energy intensity by 50 per cent over 2019 levels The objective of our sustainability strategy is to use our world- by 2030. leading technology to create meaningful change. In early 2021, we committed to the following transformational As a signatory to the United Nations Global Compact (UNGC), emission reduction targets that were approved by the Science we set goals that contribute to advancing progress toward the Based Targets initiative (SBTi)*, and SBTi determined that our United Nations Sustainable Development Goals (SDGs). The Scope 1 and 2 target is aligned with a rate of decarbonization SDGs are transformative global targets that are intended to consistent with keeping any global temperature increase to shape policy development, organizational strategy and 1.5°C compared to pre-industrial temperatures, in accordance stakeholder engagement through 2030. We report on these with the Paris Agreement: SDGs as well as our progress on human rights, labour, environment and anti-corruption issues through our UNGC Reduce absolute Scope 1 and 2 GHG emissions by 46 per Communication on Progress. We disclose climate-related 1 cent from 2019** levels by 2030. information in accordance with the recommendations of the Reduce absolute Scope 3 GHG emissions from business Task Force on Climate-related Financial Disclosures (TCFD), travel and employee commuting by 46 per cent within the which recommendations address the disclosure of the material 2 same timeframe. financial impacts of climate-related risks and opportunities to help stakeholders better understand how organizations are Reduce Scope 3 GHG emissions from purchased goods addressing climate change. 3 and services, capital goods, and use of sold products by 75 per cent per million dollars’ revenue within the same Having surpassed our previous climate-related targets in 2019 – timeframe. which were to reduce absolute energy use by 10 per cent and * See Appendix I for more detail on the external validation of our targets by SBTi. ** We chose 2019 as our base year as it provided the most recent full year of available GHG data when preparing our submission to the SBTi. In addition, we determined that 2020 results included atypical reductions in Scope 1 and 2 GHG emissions caused by impacts of the COVID-19 pandemic. 2 • TELUS SUSTAINABILITY-LINKED BOND FRAMEWORK JUNE 2021 We routinely conduct materiality assessments through a range of Supply chain sustainability: we believe in stakeholder engagement activities to inform our sustainability 5 aligning our supply chain practices with our strategy, validate priorities and identify emerging issues. The values (including by way of the TELUS Supplier insights gained from these materiality assessments help us to Code of Conduct) and we focus on putting our determine priorities that can have the greatest impact on our customers and communities first. business and are the most relevant across our value chain. The Privacy, transparency and regulatory priorities which we have established are as follows: 6 compliance: we believe that it is critical to earn Giving back to our communities: we believe and maintain our customers’ trust by protecting 1 that giving where we live helps to build stronger, their personal information through a privacy healthier communities and ensures that the management program (including through the most vulnerable among us don’t get left behind. implementation of the seven principles of Privacy by Design), maintaining publicly available Caring for our planet and enabling responsible privacy and security policies and corporate agriculture: we believe that by investing in 2 governance practices, and continuing to be an innovative technologies and sustainable advocate for positive regulatory changes, business practices, we are working to build a demonstrating compliance with legislation, and better future for the next generation. regulatory rules and requirements. Innovating in healthcare: we believe that by Our people and culture: we believe that our applying innovative technologies to improve 3 team members are the foundation of our access to healthcare, we are helping Canadians 7 business and drive our success by enabling a live healthier lives. diverse, safe, empowering and engaging culture Creating positive economic impact: we of collaboration and spirited teamwork. 4 believe in contributing to the development of sustainable communities and a digital and clean economy. 3 • TELUS SUSTAINABILITY-LINKED BOND FRAMEWORK JUNE 2021 Sustainability-Linked Bond Framework As we continue to build upon our robust sustainability strategy, which is aligned with the five core components of the and in recognizing the value of linking it to our funding, TELUS Sustainability-Linked Bond Principles published by the has chosen to create a Sustainability-Linked Bond Framework International Capital Markets Association (ICMA) in June 2020: 1. Selection of Key Performance Indicator KPI: Company-wide Scope 1 and 2 we have been investing in renewable energy in the form of Power greenhouse gas emissions reduction Purchase Agreements that enable the development of new solar and wind power facilities, adding clean energy to the electricity Rationale: grid and generating Renewable Energy Certificates (RECs) for One of the most significant challenges we face is building our our use. business and expanding our product and service solutions while also decreasing our environmental footprint. We recognize that This metric is measurable, quantifiable and externally verifiable. future deployment