SUSTAINABILITY REPORT RELACOM GROUP 2017 About Relacom

CEO Message: About Relacom

Relacom is a leading technology services provider offering companies can feel confident that our deliveries will strategic solutions to the telecommunications, power and strengthen their businesses. IoT markets. Over the years, Relacom has become the On Track for the Future preferred partner of leading global telecommunications and The IoT market and related services are expected to expand power companies as well as of national retail and logistics considerably as a result of increasing digitalization. We enterprises. define IoT as a network of physical objects and solutions with Relacom’s internal operations have long involved a One of our priority areas is health and safety. In fact, we embedded technology for communicating and sensing, or strong focus on sustainability in all parts of our business. have decided that health and safety should be a standing Within the telecom business area, Relacom’s main objective interacting with, their internal states or the external environ­ In concrete terms, this means that we have developed a item on the agenda at all board and management meetings. in planning, building and maintaining wired and wireless ment. They offer smart and efficient solutions for consumers, holistic view that includes not only environmental and social It should also be one of the key metrics for monitoring our networks and delivering state-of-the-art fibre rollouts is to businesses, society and Relacom alike. responsibility, but also corporate governance, working activities in all of the countries in which we operate. Our provide high-quality and cost-efficient networks that operate conditions and ethics. Moreover, we also want to be goal is to increase awareness of health and safety issues with minimal interruption. Our customers can feel confident Relacom can create value for system and application transparent­ about the work we do by reporting on our throughout the organization and to minimize both sick leave in their ability to meet their own customers’ needs when they providers and users by providing the following services: efforts. With that in mind, this year’s sustainability report is and the risk of occupational injuries. use Relacom’s solutions. Relacom has considerable professional rollout, installation, maintenance, break & fix, the seventh such report to be published by Relacom. We experience in providing end-customer interaction that upgrade, operation, on-site support and end-of-life and published our first report back in 2011. Relacom also has a number of initiatives in place in connec­ increases customer satisfaction and strengthens loyalty to recycling support. We also aim to develop business models tion with environmental sustainability. For example, we their operator. Our presence in four countries and strong based on managing data on IoT platforms. are currently renewing virtually our entire vehicle fleet in relationships with leaders in the field make Relacom a key Sweden. This upgrade will be completed in the first half of provider of network services for pan-Nordic customers. Relacom’s target customers in IoT are application vendors, 2018, making 95 per cent of our fleet compliant with the operators, developers, importers and application users latest Euro 6 standard’s emissions requirements. In addition, The power business area’s fast-growing market necessitates with a suitable size/volume. We also focus on cases where we only buy green electricity for use in our rented premises major investments in power and energy infrastructure. As an technology, application, business environment, or use- wherever possible. alternative to establishing in-house resources, several power case knowledge and understanding comprise competitive companies and network owners utilize service providers advantages for Relacom. Our growing customer base is Relacom is also working to certify its operations in line with to manage non-core business and processes. Thanks to clear evidence of our ability to package our experience into ISO standards In 2017 our Denmark division also achieved Relacom’s strong construction operations and renowned competitive, transnational services that offer commercial certification according to ISO 9001, ISO 14001 and OHSAS production management and efficiency models, power value to our customers. 18001. In both Denmark and Finland, Relacom also received EcoVadis’ prestigious award for our CSR work.

Our 2016 sustainability report had the theme “We Aim for the Future”. Naturally, the same is true of this year’s report and I am both happy and proud to state that we are on track to meet that aim. We support UN Global Compact

That said, we don’t plan to rest on our laurels. There is As of 2012, Relacom is a UNGC signatory.

always more work to be done! Company Name This commitment entails working in Relacom Group (Relacom Management AB) accordance with the UN’s ten fundamental

Veronica Ezeyza-Alvear Countries of Operation principles for responsible business. The President & CEO Sweden, Norway, Finland and Denmark Global Compact includes: Principles for Number of employees human rights, labour conditions, ~ 2,700 environment and anti-corruption.

Location of Headquarters Content: Solna, Sweden We also submit a report annually, entitled

Revenue ‘Communication on Progress’, which 2 CEO Message 17 Relacom Norway ~ 3.6 Billion SEK summarises our commitment to the 3 About Relacom 21 Relacom Denmark Global Compact’s ten principles. 5 Sustainability Management 24 Relacom Finland For further financial information please see the Did you know? 7 Materiality Analysis 29 About This Report annual report for Relacom Management AB. 10 The Relacom Way 30 GRI Cross Reference Index 12 Relacom Sweden 9

2 3 About Relacom

Organization Technical Consultancy Services – We offer special­ Company guidelines, targets and visions are decided jointly ized technical consulting for site acquisition, network at the group level. The Group includes Relacom Sweden, planning, implementation, operation and integration, as Relacom Finland, Relacom Norway, Relacom Denmark well as procurement process consulting. and Orbion Consulting. Relacom Group’s CEO is Veronica Ezeyza-Alvear. Corporate Governance Sustainability Relacom Management AB is Relacom Group’s parent Relacom is active in four business areas and supplies the company and is owned by Nordea Bank and DNB Bank. following products and services: The company’s shareholder meeting is the Group’s primary legal decision-making body. Decisions made by the shareholders are converted into directions, frameworks and Management Telecom – Working together with our customers, we targets by the board of directors and communicated to the ensure that the Nordic countries are connected to fibre Group’s management team. and copper, 3G, 4G and the future 5G networks, both Relacom has a group-level code of conduct and anti- A brief Summary of our Code of Conduct: indoors and outdoors. The Group’s management team is responsible for guiding the corruption policy that applies in each country where we Relacom strives to create sustainable advantages for its company to meet the targets set by the board of directors ac­ operate. In 2016, we integrated sustainability goals with customers, employees, suppliers, the environment and the IoT – We take part in network design, construction, main­ cording to the directions given and within the set frameworks. our business goals. We follow up on and evaluate our community. tenance and fault repair for both today’s and to­morrow’s Below this executive level, the Group is managed by manage­ progress in connection with these goals on a monthly needs. This includes smart metering, meter value ment committees and along solid reporting lines. To ensure basis. Where our goals have not been achieved, an Relacom most often represents its business-to-business manage­ment and smart grid solutions. responsible decision-making, Relacom has developed what action plan is presented to get us back on track. customers when meeting end-customers. As such, our con­ is known as our Group Authorization Matrix. This document duct is critical to our customers’ success. Power – We are a part of today’s and tomorrow’s net­ defines levels of authority for key positions regarding the These reviews aim to promote the joint development of work design, construction, maintenance and fault repair. right of attestation and the right to make decisions on behalf our sustainability efforts for the countries involved. We Smart metering, meter value management and smart of the company. have performed a SWOT analysis on our material issues Relacom obeys the laws and regulations of each country grid solutions. and have identified which of these we need to follow up in our business activities. on and prioritize during 2018. Relacom respects human rights and our growth is Relacom also requires that effective systems for managing based on a sustainable and responsible approach in quality, environmental issues and the working environment which our employees play a key role. Relacom aims are in place in every country where we operate. to be the benchmark in our industry and to offer an attractive working environment that draws new em- Sustainability Goals & indicators 2017: ployees.

CEO That our customers are satisfied Relacom strives to employ a long-term environmental - CES (Customer Effort Score) strategy that minimizes our negative environmental That we develop the competence of our project leaders impact and to follow the precautionary principle. Support & CFO - Certified project leaders Group Functions That our employees are engaged and motivated Relacom strives to establish long-term relationships - Shorter periods of sick leave with suppliers and to achieve sustainable advantages That we have a safe working environment through cooperation. Sweden Norway Denmark Finland - Accidents resulting in sick leave - Accidents not resulting in sick leave We are committed to preventing corruption in all its - Number of incidents forms and do not tolerate it in our own operations, nor in Telecom those with whom we do business. We are achieving our goals related to shorter periods of sick leave. 2017 has been a foundation year for developing relevant IoT Compliance KPIs for accidents resulting in sick leave/not resulting in In 2017, no instances of non-compliance and no significant sick leave. We will continue to develop our customer findings were noted regarding laws and regulations. Neither Power satisfaction system during 2018 and also intend to carry were any grievances reported regarding the environment, out a customer survey during the year. In addition, each social matters, or our products and services. national company will undertake activities to improve Orbion incident-reporting. Anti-corruption Relacom’s management group has drawn up a policy that In summary, our code of conduct means that Relacom is com­ applies to all Group companies and employees. In turn, mitted to working in harmony with the UN’s ten basic principles country representatives are responsible for informing CUSTOMERS National, regional and transnational for responsible enterprise. Each year, we prepare a report organization staff about the content of the policy and entitled Communication on Progress that summarizes how for ensuring that it is followed. Country representatives Relacom is supporting and working in harmony with Global inform and help employees understand how they are Compact and its principles. expected to act in all manner of situations when inter­ acting with our customers. Whenever a new staff member

4 5 Sustainability Management is employed, they are informed about this policy and our whistle-blower function.

In 2017, several of our customers performed external CSR audits and evaluated our performance. No cases of Purpose, Values, Vision Code of Conduct, non-compliance regarding anti-corruption were found and Anticorruption Materiality Analysis we will continue to educate and inform our employees Business model about our code of conduct and whistle-blower function Policy during 2018. Our Stakeholders Holding an active dialogue with our stakeholders is Supply Chain an important part of our sustainability efforts and is Relacom engages a number of suppliers. To ensure that necessary to understanding their needs and expecta­ each of them lives up to both our values and those of our tions. This approach supports development and forms customers, we have chosen to work with a handful of large Management the basis for this report. Since Relacom’s operations distributors based in the Nordic region. We have consciously System affect, and are affected by, a large number of different chosen companies that are based in the countries in which Environment, Quality stakeholders, good and open dialogue is important for we operate. and Work developing and strengthening long-term relationships. Environment Our employees meet stakeholders daily in various Relacom’s contractors are screened through a qualification forums and the majority of our stakeholder relations process that imposes requirements on their environmental are established through our meeting and communica­ and health and safety work and on their business ethics. Our tions channels. We meet with customers and contrac­ code of conduct is part of each country office’s supplier policy. Our Sustainability framework. tors on a daily basis. Customer surveys, employee satisfaction surveys, annual general meetings, proxy meetings, supplier meetings, trade fairs, industry meetings and meetings with employer organizations are conducted throughout the year. Collaborative projects conducted with public employment services and upper secondary schools are further examples of instances when we meet and communicate with our stakeholders.

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Materiality Analysis Relacom conducted a materiality analysis in 2017 in accordance with the guidelines found in GRI G4 to identify which issues our internal and external stake­ holders consider important. Stakeholders such as customers and employees contributed to this analysis. Both stakeholders and Relacom management an­ swered a survey regarding which issues they consider relevant

On the next page (left) is a summary of the result of the survey, summarising how important the stakehold­ ers and the Relacom management believes that the different aspects are.

Also on next page (right) is a diagram showing how much Relacom can impact the various actors in the value chain regarding the most important aspects.

6 7 Materiality Analysis

Employment conditions, such as salaries and other forms of remuneration and benefits.

Promotion of physical and mental health at work and prevention of occupational injuries.

Competence development and personal development at work.

Work to promote diversity and equal treatment, and reduce discrimination.

Respect for freedom of association and collective negotiations.

Contractor / supplier control regarding environment, work environment and human rights.

Control of the development of earnings, liquidity and balance sheet Process for dealing with suspected irregularities.

Measures to minimize the risk of corruption. Process for handling customer complaints and complaints.

Anti-cartel and other anti-competitive activities. Follow-up and measures to increase customer satisfaction.

Knowledge of – and compliance with – current and future legislation related to the industry. Local community involvement – environmentally and socially.

Sustainable choice and sustainable use of materials. Responsible and transparent political engagement and support.

Sustainable choice and sustainable use of chemicals. Certification of services for communicating sustainability performance.

Energy efficiency and use of renewable energy in the activities of the services provided. Correct, factual, relevant, impartial and comprehensible information about the activities.

Consideration of the habitat for animals and plants. Protection of personal data and integrity.

8 9 The Relacom Way Our Markets

12-16 Relacom Sweden

17-20 Relacom Norway

21-23 Relacom Denmark

24-28 Relacom Finland

NORW AY SWEDEN

FINLAND

Everything we do starts with people, whether we con­ ability to work cross-border and with a flexible and sult, plan, build or maintain networks and equipment. non-bureaucratic mind-set. The impression Relacom leaves on the community is influenced by how we run our operations. This includes Core Values – Reliable & Competent how efficient our processes are and how we manage Relacom is a reliable partner. Every day, we must our production and create tools to meet our customers’ make sure that our customers experience high quality and stakeholders’ requirements and expectations. in the services we provide. Becoming and remaining reliable is an on-going process. Relacom’s vision is to be the preferred service DENMARK partner within technical infrastructure in the Nordic Relacom employs competent people. We have both region. technical expertise and years of experience working with a variety of systems. These qualities help us Our mission is to offer flawless operation and com­ take a proactive approach and fulfil our commitments. mercial value in our customers’ networks. We are present both on a personal level and in a geographical sense. Realizing our vision and mission requires talented people who are service-minded and who have the

10 11 Relacom Sweden

executives work with employees, safety officers, our occupa­ customers and input from managers based on professional tional health strategist and others to achieve effective and development interviews held with staff. By taking this approach, satisfactory solutions. Not only are we required to comply we give our employees better opportunities to develop and also with Swedish work environment legislation, but our customer strengthen Relacom’s collective expertise at the same time. agreements also contain clear health and safety rules for us While all personnel were offered the chance to sign up for an Relacom Sweden to follow. We did not note any deviations from these commit­ interview, only 57 per cent accepted. ments during 2017. The same opportunities for professional development must Relacom Sweden is a nationwide technology services tive bargaining agreements Central Telecom Agreement for Relacom received two routine visits from the Swedish Work be available to all staff, regardless of whether they are provider. We provide services to Sweden’s telecommunica­ civil servants and the Power Contract for workers. Local Environment Authority during 2017, which did not result in technicians, managers, or administrative staff. Relacom tions (fibre and mobile solutions), power and IoT markets. agreements specific to Relacom AB are regulated through any injunctions regarding measures. In addition, one of our also offers professional development programmes to our The company employs around 430 technicians and project supplementary collective agreements. customers, Telia Company AB, conducted a CSR review this employees. specialists throughout the country. past autumn that found only four discrepancies in total in the areas of occupational health and safety, anti-corruption Competence TABLE 1. TOTAL NUMBER AND RATES OF NEW and supply chain compliance. We also began implementing The annual professional development interviews that man­ CEO EMPLOYEES HIRES AND EMPLOYEE TURNOVER the international standard OHSAS 18001 during the year. Its agers hold with their employees are the primary tool in the BY AGE AND GENDER implementation will be completed in 2018. company’s competence development process. The overall Support & G4-LA1 a CFO purpose of the process is always to ensure employee devel­ Group Functions 2017 <30 31–50 >51 Total A Preventive Work Environment opment, high-quality service for our customers and Relacom’s Women 7 3 1 11 Relacom aims to be top of its class when it comes to employee preparedness for future challenges. It is also important to give Men 39 25 11 75 safety and commitment. A safe and pleasant work environment employees and managers an opportunity to review workplace allows our employees to develop and to deliver high-quality well-being and to note whether anything needs to be changed Telekom IoT Power Total 46 28 12 86 service to our customers. Relacom always prioritizes our or reinforced. employees’ and customers’ health and safety. We strive to TABLE 2. STAFF MOBILITY [%] achieve our vision of zero accidents. The foundation for The professional development interview also serves an G4-LA1 b achieving this goal is following legislation and rules. important function in connection with Relacom’s efforts to 2017 2016* 2015* maintain a healthy work environment. It allows managers Total staff turnover 17,6 -34 -42 Health and safety considerations are included in all collective to ensure that employees have the skills needed in the work CUSTOMERS bargaining agreements and supplementary contracts are environment on a running basis and that there are no problems National, regional and transnational * The organisational changes made involved redundancies. agreed upon with various labour organizations on an on-going in employees’ day-to-day working life. basis. Relacom’s Central Protection Committee meets to Relacom keeps pace with current legislation concerning Relacom has a standing agreement with a healthcare pro­ discuss work environment-related issues such as accidents, the natural and work environments. Relacom employees vider. Statistics on absence due to illness are monitored on incidents and changes within the organization every three can access copies of relevant documents via a web-based a regular basis and compiled for review at a group meeting months. These meetings focus on measures for reducing compliance tool provided by RSM&CO. We follow up our each month. The figures are discussed by Relacom’s sick leave and injuries based on the available statistics in activities annually through written self-evaluations that com­ various management and collaboration groups, at the three main reporting categories: accidents that result in sick pare our work with the register of laws in effect. Compliance executive and management level and in the Central leave, accidents that do not result in sick leave, and incidents is also monitored for recurring internal audits. Protection Committee. (near misses). We compile these data in a database based on reports filed by managers. Relacom aims to maintain the highest standards of qual­ The aim of this monitoring is to reduce absences due to ity, honesty, transparency and accountability at all times. illness and to minimize employees’ risk of suffering ill health TABLE 3. ACCIDENTS AND SICK LEAVE STATISTICS We therefore support and protect employees who report or accidents. The Central Protection Committee follows up G4-LA 6 a suspicions about wrongdoing. A whistle-blower function is reported incidents in order to enact preventive measures. available to all employees via Relacom’s intranet. Protection rounds to monitor the physical and psychosocial 2017 2016 2015 work environments as well as the quality of personal protec­ Injuries* 6 4 7 An employee who suspects unlawful activity or bribery and tive equipment are also conducted on an on-going basis. Work-related accidents 0 0 0 who feels unable to talk to their manager about their suspi­ resulting in death cions, or feels unsure of whether a case is being handled Systematic Efforts to Improve Our Work Environment Days lost due to work-related 10 11 339 properly, can use the whistle-blower function. The function A sound working environment aids business development, accidents provides a risk-free way for employees to report suspicions encourages physical and psychological well-being, helps Sick leave as a percentage of total 2.7 3.2 3.9 of irregularities, misconduct, or crime. Information provid­ motivate employees and encourages their personal develop­ work time** ed by employees via the whistle-blower function will be ment. Relacom systematically improves its work environ­ treated as confidential. You do not need to identify yourself, ment through regular surveys, improvement measures and *Injuries include work-related accidents that led to sick leave although, obviously, it makes things easier for us if we can by following up the status of our operations. This helps us **Average for the entire year contact you to provide help and feedback. prevent illness and accidents in the workplace and creates a better working environment for everyone. Professional Development Work Environment We identify needs within the organization and create training Relacom is a member of the employers’ associations Work environment considerations include the physical, opportunities that meet them. In part, the range of training Almega and Energiföretagens Arbetsgivarförening. Our technical and psychosocial conditions that are important offered is determined by Relacom’s overarching strategies terms of employment are governed primarily by the collec­ for creating a sound working environment. Managers and as stated in our business plan, requirements imposed by our

12 13 Relacom Sweden

Environmental Work Relacom’s qualification process for contractors also includes feedback being provided to the customer via area managers Waste hierarchy within the organisation Our environmental work aims to find solutions that are both accepting a code of conduct. The code is based on inter­ in our production unit. good for the environment and that benefit our customers national agreements regarding human rights, employment Reduse: Lower amount of waste produced and employees. Energy, climate, work in sensitive areas, relationships, corruption, the external environment and Follow-up & Measures for Increasing Customer Satisfaction chemicals and waste are focus areas within our environ­ sustainable development. All Relacom suppliers must like­ We believe that dialogue with our customers is the corner­ mental work. We haven’t had any injunctions for fines or Reuse: Use materials repeatedly wise comply with these same requirements, so that they are stone for developing our business. sanctions for environmental crimes in 2017. aware of our expectations. Recycle: Use materials to make new products One example that supports our approach is a project in which Climate Customers Relations we developed the concept of “robust fibre” together with oper­ Minskat våra Our environmental work aims to find solutions that are both Recover: Recover energy from waste To create and maintain a world-class business, a compa­ ators, contractors and Sweden’s National Post and Telecom good for the environment and that benefit our customers ny must understand and satisfy its customers’ needs and Agency (PTS). flygresorThe project included the following aims: and employees. Energy, climate, work in sensitive areas, expectations. Relacom focuses on establishing a close Landfill:Safe disposal of waste chemicals and waste are all focus areas. Relacom did not dialogue with its customers and suppliers through recurring Increase knowledge about fibre plants and how to build receive any injunctions, fines, or sanction fees for environ­ meetings in which needs and expectations are identified. them. mental misdemeanours in 2017. Our customers expect Relacom to actively pursue quality Describe and claim an acceptable level of space for a Our ambition is to ensure that all waste from our own assurance and sustainability, including reducing our environ­ robust fibre plant. Energy Efficient Services operations is recycled as quickly as possible. All our mental impact, ensuring a safe workplace and being socially Ensure that industry stakeholders apply the results. Energy use in the form of electricity, heating and cooling places of business have collection stations for waste. responsible. Our customers also expect the same of our Define industry-wide concepts and terminology. is one of our most critical environmental issues. It is still We have also implemented procedures for proper waste suppliers and contractors, and we monitor our collaborators’ Lay the foundation for certification procedures where difficult to pinpoint the exact amount of energy used at handling and transportation for locations where we carry compliance with their requirements. Supplier follow-ups by competence will be ensured by contractors and their our smaller, rented offices, where electricity and heating out assignments other than our offices. our customers increased in 2017, both in the form of field staff. are included in the leasing fee. Our real estate division is visits to our project sites and document audits. We welcome responsible for establishing procedures for reporting on Waste Minimization Well-established in Our Company this and appreciate that customers verify and confirm our Relacom holds the no. 4 business certification under the and following up energy use together with our property Our IT help desk manages the company’s hardware, tele­ sustainability efforts. robust fibre initiative and is also certified in inspection, training owners. phone entry system, alarms and IT technology aids. Our and fibre technology. goal is to minimize electronic waste by recycling everything Relacom has not identified any instances of non-compliance Relacom is working to develop energy-efficient products and that can be reused. For example, our technical department with laws or regulations concerning the provision and use of Another successful example of leveraging dialogue is found in services. As a starting point, we have installed a number of has a repair unit that fixes products and replaces parts so our products and services. our cooperation with our largest customer, in which we use Net systems with electric charging posts for vehicles. This is a that devices can continue to be used. Our waste manage­ Promoter Score (NPS) as a tool to monitor how they rate their business area that is set to grow significantly in 2018. We ment programme follows the waste hierarchy, with a focus on Relacom is very well aware of the importance of our customers’ suppliers. Our customer provides feedback to our suppliers can also install solar panels and intelligent indoor solutions for minimizing waste to an increasing extent through purchasing secrecy. We have therefore implemented procedures to ensure on how they networked and how the end-customers rated the connected devices that positively affect power consumption. controls and the reuse of purchased products. that customer data is handled safely. Our efforts resulted in no collaboration regarding the construction and deployment of public reports of lost customer data in 2017. mobile networks, indoor coverage and no-place communications Waste Cooperation with Suppliers platforms. Relacom AB holds a top ranking in all of these areas, Both waste minimization and responsible waste manage­ Carefully considered purchases allow Relacom both to Process for Handling Customer Complaints providing proof that our processes work and that both our attitude ment are vital for reducing our environmental impact and reduce environmental impact and to lower actual purchase Customer complaints registered within a predefined period and expertise meet their expectations. At our peak, we achieved a ensuring sustainable development. Waste management costs. Relations with our suppliers are characterized by are analyzed and