We connect for good BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent tech and human rights environmental challenges and accountable

The connections we make We connect for good by: are helping solve the world’s 9 Building better biggest challenges, such as cyber digital lives security, the global pandemic and climate change. 19 Championing responsible tech Our purpose is as simple as it is ambitious: we connect for good. & human rights There are no limits to what people can do when they connect. And as technology changes our world, connections are becoming even more important to everyday life. 24 Tackling climate

Look out for these throughout the report: change and

Reference to another document or another page in the report environmental BT Group 2021 plc Annual Report Reference to further reading online challenges

Within this report references to the Annual Visit our online annual Report, Appendix and BT policies and review and see how we’re standards are hyperlinked. These can be connecting for good. We connect 34 Being transparent found at the following locations: for good BT Group plc

bt.com/annualreview Annual Report 2021

Annual Report 2021

Annual Report: bt.com/annualreport BT Group plc and accountable for good  Appendix: bt.com/sustainabilityreport We connect Policies and standards: bt.com/ourpolicies

2 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Message from our Chairman and Chief Executive

Over the past year, we’ve witnessed major upheaval as the world battled to keep the Covid-19 pandemic at bay. Working and learning from home fast became the new normal for Jan du Plessis Philip Jansen Leena Nair Chairman Chief Executive Chair of the Digital Impact & millions of people across the UK, Sustainability Committee and virtual contact became a Despite the challenges posed by the pandemic, We’re championing calls to put in place the lifeline for vulnerable people BT did not stand still. We’ve continued to invest infrastructure needed to make all-electric fleets It’s great to see BT’s new strategy and facing prolonged isolation. in high-speed networks to connect the UK to the a reality. This year, we launched the UK Electric purpose putting digital impact and future – and to equip more people with the skills Fleets Coalition with The Climate Group, and 29 sustainability at the heart of everything they need to get the most out of the digital world. organisations have joined so far with a combined Never before has connectivity been so integral fleet of half a million vehicles, helping drive the EV the business does, and linking annual Our Skills for Tomorrow programme offers free to so much of our lives. Our BT colleagues have fleet debate in the UK. Carbon-reducing solutions bonuses to progress in this area. During training and resources for anyone who wants to worked tirelessly to keep people connected contributed towards around 25% of our revenues what has been a difficult year for so many, improve their digital skills. Children, teachers, throughout the Covid-19 crisis and many have this year and we’re fostering further innovation to it’s been encouraging to see BT step up to families, vulnerable people, jobseekers and been given key worker status. We want to take this help customers cut their carbon footprint. This small business owners are among the more the challenge to help our colleagues, our opportunity to thank each and every one of them shows continued evidence of BT leading from than 10m people we’ve reached since 2014/15. communities, the country and the for their hard work and dedication. the front on climate. economy. Meeting its goal to reach 10m Increased demand for digital skills during As we look to the future, we remain fully people with digital skills support five years Colleagues across the business will help us lockdowns – and our push to offer even wider committed to supporting the UN’s Global deliver our ambition to be the world’s most support with initiatives like Top Tips on Tech – early is a testament to the company’s Compact and Sustainable Development Goals. trusted connector of people, devices and has enabled us to meet our 10m goal five years genuine commitment in this space. Our new responsible tech principles will guide us machines by 2030, and we’ve set a clear early. However, we’re not stopping there; we aim to consistently develop, use, buy and sell strategy to get there. to increase our reach to 25m people, with help technology in a way that benefits people and to improve their digital skills by the end of minimises harms as we connect for good. Our commitment to digital impact and March 2026. sustainability (DI&S) is intrinsic to this strategy With a legacy of innovation, a leading stance on We’re determined to help the country build back and to BT’s purpose: we connect for good. sustainability and an influential position for good, better after Covid-19, and we’re driving progress During the last year, we’ve underlined the BT is leading the way to a bright, sustainable on the road to net zero for our business and for the strategic role of DI&S in delivering future growth future. by linking some of our annual bonus to goals on UK. Our operations are now powered by 100% digital skills and carbon reduction. renewable electricity.

3 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our strategic Purpose Why we exist Our strategy framework We connect for good

2030 Ambition We Who we must become Strategy How we’ll grow To be the world’s most value for all our trusted connector of people, stakeholders connect devices and machines Values What will guide us for good. Personal, simple, brilliant

1 2 3

Our 2030 ambition is to be the Build the strongest Create standout Lead the way to a world’s most trusted connector foundations customer experiences bright, sustainable future of people, devices and machines. Our ambition is only as strong as the We’ll relentlessly focus on creating standout We want to be a trusted partner and build We’ll get there by building the foundations we’re built on. That’s why we’ll customer experiences by connecting more deeper connections with our stakeholders. strongest foundations, creating continue to strengthen them by building: people and moving from products to tailored We aim to be a responsible and sustainable solutions our customers can rely on. business leader by bringing value to all of our standout customer experiences – the best converged networks – we’re stakeholders and delivering returns to our investing in fibre, 5G, edge and core, and We’ll put our customers’ needs first, act with and leading the way to a bright, investors over the long term. extended access so our customers can transparency, and protect their security, data sustainable future. do more and preferences. And we’ll strive to catch any We’ll incubate tech-driven growth engines issues before they impact customers to create that support great outcomes for our – a simpler, more dynamic BT – we’ll simplify a flawless experience. customers, country and company now and our processes and products, and modernise That’s how we’ll grow and deliver in the future. And we’ll be a visible leader in our technology to become more efficient value for all our stakeholders. creating solutions to shared challenges. so we’re easier to deal with and work for That’s where our DI&S strategy comes in. – a culture where people can be their best – we’ll give colleagues the opportunity to learn and grow, offer clear career paths to attract and hang on to the best diverse talent, keep people safe and well, and make BT a brilliant place to work.

4 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Being a responsible business Our progress underpins all three pillars of our strategic framework. We report Build the strongest Create standout Lead the way to a bright, 1 2 3 progress on each pillar in our foundations customer experiences sustainable future Annual Report, which includes an overview of DI&S, as – Nearly 10% of our UK colleagues1 – Our customer care teams receive Our DI&S strategy (see next page) focuses well as in-depth content on declared they are from a Black, Asian specific training to support our 1.4m on where we can make the biggest other material topics such as or minority ethnic background. vulnerable customers. difference to a bright, sustainable future. network rollout and customer – This year, we increased our focus on – Our national network of Home Tech experience performance. race equality, particularly around Experts are specially trained on a wide – Over 10m people reached, with help to addressing issues of systemic racism range of issues, including helping improve their digital skills. and instances of prejudice across our vulnerable customers and where See our Annual Report 2021 for more business. access to technology is needed. See page 9 for more on Building better on the progress of pillars 1 and 2. digital lives. – We launched our Ethnicity Rapid – We also offer a range of information Action Plan, and made significant and advice, for example through – Strengthened human rights progress in the areas where we our Including You website which is governance and due diligence could make the biggest immediate specifically designed for those with processes. differences. additional needs. – We’re proud to be Lifetime Visionary – We also supported vulnerable See page 19 for more on Championing Partners of Race Equality Matters. customers throughout the pandemic responsible tech & human rights. (see page 7 of this report). 1 Includes colleagues who had not disclosed, or had responded – 57% reduction in carbon intensity Andy Wales ‘prefer not to say’ in respect of their ethnicity pursuant to our Director of Digital Impact self-declaration campaign. since 2016/17. & Sustainability See our Including You website, our DI&S business briefing and our Annual Report See page 24 for more on Tackling See our Annual Report 2021 for more 2021 for more details. climate change & environmental details on diversity and inclusion. challenges.

Delivering social and economic value In 2020/21, we invested £18m of cash, time The social value we deliver through our Leading the way to a bright, sustainable volunteered and other in-kind contributions in DI&S strategy complements the wider economic programmes designed to accelerate progress future is a key pillar of our Group strategy value our business creates. Our latest Economic under our DI&S strategy. That’s 0.63% of the Impact Report found that in 2019/20 we added and why our digital impact and previous year’s adjusted profit before tax and £24bn in value to the UK economy and supported sustainability work plays such a crucial role we’ve invested an average of 0.89% over the 300,000 jobs through direct employment, our for BT. We’re taking a leadership position last five years. This fell below our aim to invest spending with contractors and suppliers, and on climate change, the digital skills divide, 1% each year, primarily as a result of reduced spending by our colleagues. and responsible tech and human rights – levels of volunteering during the pandemic. all while supporting future growth. We remain committed to the target.

5 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our DI&S strategy

We’re leading the way… …to a bright, sustainable …and our business… …while …and the UK future for our stakeholders… contributing to the Government’s UN’s Global Goals… ambitions

– We’ve reached 10.1m people in the UK with Building digital skills helps us: 4.3 & 4.4 The UK Government’s Building better help to improve their digital skills since Digital Strategy includes 2014/15 – Grow by enabling more people to use and giving everyone access to digital lives get more from our services the digital skills they need – Our Top Tips on Tech campaign alone 5b reached 5.7m this year, and as part of our – Build and enhance our reputation with Skills for Tomorrow programme, helped us all stakeholders Our ambition: reach our 10m target five years early Reach 25m people in the UK with – Develop the tech-savvy talent we need now 9.1 & 9c help to improve their digital skills – We’ve now extended that target; we aim and in the future to reach 25m people by end of March 2026 by end of March 2026 – Expand colleagues’ horizons through volunteering Championing – Our new responsible tech strategy and Taking a responsible 8.7 The UK Government principles aim to ensure we meet our approach to tech helps us: is committed to world- ambition every time leading online safety responsible tech measures that support – We’re tackling big issues like modern – Support commercial growth and innovation 10.2 innovation and a thriving and human rights slavery, privacy and free expression through by differentiating existing solutions digital economy partnerships like Tech Against Trafficking – Take a lead in future growth areas like and the Global Network Initiative connected homes, smart cities, healthcare 16.10 – We check for human rights risks in our tech and security Our ambition: supply chain, mapping suppliers right down – Build trust and protect our reputation Develop, use, buy and sell technology to tier 4 for branded products as a responsible business in a way that benefits people and minimises harm – Reassure stakeholders that we’re using tech to connect for good

– We’re now using 100% renewable Leading efforts to tackle 12.5 & 12.7 The UK Government’s Tackling climate change 2 electricity worldwide climate change helps us: target is to achieve net zero emissions by 2050 and environmental – We’ve reduced the carbon intensity of our – Get ahead of demands for climate action operations by 57% and cut supplier 13a challenges emissions by 19% since 2016/17 from investors, customers and others – We aim to transition most of our fleet to – Grow our business through existing and Our ambition: electric vehicles by 2030 and drive wider emerging carbon-reducing solutions Adopt a sector-leading approach to action through advocacy and partnerships, – Attract and retain people who want to work climate action, with a target to become like the UK Electric Fleets Coalition for a business that champions sustainability a net zero carbon emissions business 1 – We’re taking action to assess and mitigate by 2045 climate risks to our operations

1 Scopes 1 and 2 plus supply chain greenhouse gases. 2 99.9% of the global electricity BT consumes is from renewable sources. The remaining 0.1% represents where markets don’t allow due to non-availability of renewable electricity.

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Supporting the national effort We’ve also upgraded network capacity for Boosting online confidence Supporting key NHS sites and enterprise customers, and the nation through We’ve supported the Government throughout expanded user support as companies made Lockdown has been particularly hard on young the crisis. We sent around 43m SMS alerts from the shift to virtual working. learners, older and vulnerable people, jobseekers Covid-19 Gov.uk asking people to stay at home . We and many small businesses. We’re helping to boosted connectivity for NHS Trusts around We’ve changed our charges and introduced free improve their confidence through our Skills for The past year has underlined the country. And we helped get temporary services to support people who are struggling to Tomorrow programme. Nightingale hospitals and vaccination centres pay during the pandemic. We’ve lifted caps on just how critical the UK’s digital We’ve taken our Barefoot lessons online to keep up and running. home broadband plans so every customer has infrastructure is to national life. unlimited data and we’ve capped monthly call school kids learning at home and our Lockdown Between lockdowns and social At the Government’s request, we provided charges at £5 for landline-only customers. Learning support package offered connectivity limited anonymised network data, such as general Connecting to the NHS Online and the NHS for families, carers and children who need help to distancing, we’re all living more mobility patterns to support national public health Covid-19 app don’t count towards mobile data access the virtual classroom. We partnered with and more of our lives online. With efforts (see page 23). We also stepped in with allowances. We’ve also provided over 3,000 NHS charities to offer free internet access and over 30m customers , BT has had funding to assist the National Emergencies Trust’s staff with free unlimited data on EE. distribute 1,000 laptops to older people and huge and complex effort to distribute essential vulnerable families. We ramped up support for a big hand in helping people stay relief across the UK. Our Life Lines project has enabled patients in jobseekers to help them stand out from the crowd. safe, connected, working and intensive care units to see and speak to their loved And our Small Business Support Scheme is ones through more than 65,000 virtual visits via helping small businesses boost their connectivity, learning throughout. Lord Dannatt video-enabled tablets in 180 NHS hospitals. Chairman, National cash flow and confidence. Emergencies Trust For more on how we’re helping people stay safe Keeping our colleagues safe See page 10 for more on Skills for Tomorrow and and connected through the pandemic, see how we’re building better digital lives. Since we launched the National our website. From network engineers to 999 operators and contact centre teams, thousands of our colleagues Emergencies Trust Coronavirus Appeal, are designated essential workers. Over 50,000 key we’ve been astonished and inspired by the workers continued to work from BT buildings, response. With the generous support, like shops or out in the field during the pandemic. that from our friends at BT, we are able to Our colleagues’ safety is our first priority. We’ve continue to ensure our most vulnerable put Covid-19 management measures in place to communities are cared for and supported. enable our operational, customer and field teams to keep working safely in line with UK Government guidelines and legislation. Colleagues can access Keeping people connected Covid-19 guidance and support services through Demand for our broadband and mobile services a wellbeing website that’s regularly updated by has surged. We’ve kept our networks running our chief medical officer. Those who need to effectively throughout, monitoring performance self-isolate stay on full pay. around the clock. Our engineers are on standby if At the start of the pandemic, we made a we need to increase capacity. And we work closely commitment to no job losses as a direct result with over 700 critical suppliers to ensure we get of Covid-19 and placing no one on furlough. what we need when we need it. Shop-based BT and EE retail colleagues could not continue their normal roles in-store so we reassigned them to help keep customers connected.

7 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our pandemic Lucy Baker Pete Martin Karen Smith Enterprise service field- Enterprise emergency heroes recognised technology director based co-ordinator authority and government with MBEs relationship manager Everyone at BT has played a vital role in keeping people connected through the Covid-19 crisis. Eight colleagues were awarded Arranged rapid delivery of 4G-enabled tablets for Built a full fibre network in the Lincolnshire village Worked tirelessly with the Department of Health, ICU patients at Guy’s and St Thomas’ Hospital in of Sudbrook where residents were struggling to Home Office, National Police Chiefs Council and MBEs in this year’s Queen’s London as part of the national Life Lines project to work from home due to slow speeds. 130 emergency control rooms to help process up Birthday Honours – for keep isolated patients connected with their families. to 108,000 emergency 999 calls a day. outstanding services to the NHS and telecommunications industry Ian Hammond Gemma Towers John Hayday during the pandemic. Enterprise senior Enterprise mobile Security and business manager, client services product specialist continuity director

Led a team that got Nightingale field hospitals Led delivery of over 1,000 app-loaded tablets to Prepared BT’s emergency response team to around the UK connected in record time as Covid- over 60% of UK intensive care units, letting respond to the pandemic, liaising with the 19 cases surged in the spring. patients see and speak to loved ones via video as Government on how we can help keep vital part of the Life Lines project. services running.

Scott McPartlin Reza Rahnama Openreach network Director of core engineer voice services

Camped out on the remote Scottish island of Coll Was honoured for services to the telecoms for three days to reconnect a vulnerable customer industry, describing the achievement as the result after a lightning strike. of a huge amount of teamwork.

8 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We’re helping millions of people make the most of life in the digital world. With tech as the enabler, people Building can stay connected, gain confidence and unlock their potential through our Skills for Tomorrow programme. better digital Our progress Over 10m 468,000 people reached since jobseekers reached through lives. 2014/15, including: our Stand Out Skills campaign Over 5.7m 278,000 people reached with help through small business owners and their our Top Tips on Tech campaign employees directly engaged CEO, Consumer with ITV 10m goal Over 3m achieved five years early, and teachers and schoolchildren we’ve now extended that target reached with Barefoot lessons to reach 25m people by end of March 2026 357,000 people reached through our online This year has shown how critical the internet is campaign supporting families in helping everyone make the most of their lives. The connectivity that BT and EE networks provide has never been more important. Through our Skills In this section for Tomorrow programme, we’re also working hard to ensure everyone has the skills they need 10 Helping people make 15 Getting jobseekers in their home and work lives to benefit from the the most of life ready for work opportunities that technology opens up. We remain 11 Preparing children to 16 Supporting small businesses absolutely committed to using our scale and reach succeed in a digital world in the digital economy to tackle the digital divide and support the UK’s economic recovery. 12 Helping families build 17 Boosting digital skills digital confidence around the world 13 Tackling the digital divide 18 Partnering with charities

9 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Sharing Skills for Tomorrow Creating positive impact for Helping people the UK, the world and our business Shaping the digital future Our Skills for Tomorrow (SfT) make the most of life This year, in addition to our Top Tips on Tech We’re supporting wider efforts to bridge programme is for everyone. It the digital divide through insights from our More and more of our home campaign, we reached 1.5m more people across offers access to free advice, the country through our SfT programmes with research – highlighted in relevant parts of and work lives are spent online. training and support to help help to improve their digital skills as we stepped this report – and industry coalitions like Covid-19 has accelerated this up our efforts to meet increased needs during FutureDotNow (futuredotnow.uk). people make the most of life in the Covid-19. We’ve reached more than 10m people trend and, for many, it’s become This year, we provided expert input to the since 2014/15, meeting our target five years early. 1 digital world at home and at work. UK Government through the Department the new normal. Over half (53% ) And we’re not stopping there. We’re now for Digital, Culture, Media and Sport (DCMS) extending this to reach 25m by the end of of Brits are using tech more digital inclusion group and the All-Party We create learning resources and partner with March 2026. often and in different aspects leading UK digital skills organisations to help us Parliamentary Group on Digital Skills. We of their lives. get the best advice and information out there to We’ve also expanded our programmes outside called on the Government to make those who need it most. There’s specific help for the UK to meet the pressing global need for online connectivity and tech skills central to the children, parents, teachers, small businesses, learning and digital skills. nation’s economic recovery. We’re also part Building tech confidence is more critical than ever jobseekers and those without basic digital skills. of the DCMS Digital Skills Partnership Board. and we’re here to help. We build, own and operate We’re working with external experts to measure the UK’s largest fixed and mobile networks, which The pandemic put face-to-face training on hold the positive impact we have on the people we support the country’s digital ambitions. We this year. There was a growing need for virtual reach – using a model based on reach, quality, connect families to each other, businesses to their support to help the nation through successive impact and value. We include impact data in this customers and individuals to their potential. lockdowns. And our digital first approach meant report where we can. we were able to respond rapidly. We’re using our reach, partnerships and tech Bridging the digital divide is good for the UK – it knowhow to help everyone gain the skills and We launched over 400 new online resources enriches lives, and it enriches the economy. Every confidence they need to make the most of life in a – from homeschooling activities to business skills £1 invested in essential digital skills returns an 2 digital world – and create opportunities to grow webinars, training for jobseekers and guides on estimated £14.80 in economic value . And it’s our business at the same time. how to access essential services online. Uptake good for the world, playing an important role in has soared and so has our positive impact. supporting the UN Sustainable Development Liz Williams MBE, Goals (see Appendix). Chief executive, We’ve also reached out to more vulnerable FutureDotNow and older people this year to tackle isolation. It’s also good for our business. Building digital skills means more people are able to use our products Meanwhile, our Small Business Support Scheme FutureDotNow is a business coalition and services, and make the most of our networks, (bt.com/smallbusinesssupport), is helping small coordinating industry action to accelerate businesses boost connectivity, cash flow and opening the door to new growth opportunities the workplace essential digital skills confidence, and has provided free digital skills for us. Campaigns like Top Tips on Tech are training to thousands. And over 5.7m people strengthening our reputation and customer of working-age adults across the UK. learnt something new from our Top Tips on Tech relationships. Colleagues who get involved learn BT, as a founding partner and board (bt.com/tech-tips) campaign (see page 14). from their volunteering experience and bring member, benefits the coalition through fresh thinking to the business. And creating a its recognition of the importance of tech-savvy workforce for the country develops workplace digital skills and sharing the talent we need for the future. its expertise.

1 Research by Opinion Matters on behalf of BT based on nationally representative sample of 2,000 adults. 2 Data from the Centre for Economics and Business Research.

10 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We’ve also extended Barefoot to younger children. Since Barefoot was first established, computing Preparing children to New lessons give four and five-year-olds a head start has become more embedded in the primary Barefoot Bytes succeed in a digital world in computational thinking through fun activities education curriculum and the National Centre back to school blues like using movement to bring algorithms to life. for Computing Education is helping to provide training and resources for teachers. With a strong Children across the UK returned to school We’re helping to equip children Many Barefoot materials featured on the popular network of teachers, we’re handing over for the 2020 autumn term not just after the for a digital world so they can BBC Bitesize learning at home website. The management of the Barefoot programme to summer holidays, but after months of Government’s Great Inspirations campaign reach their potential. Our Barefoot Computing at School, who will continue to homeschooling. Barefoot Bytes also included Barefoot in a showcase of UK develop ambitious plans to meet the needs of (barefootcomputing.org/barefootbytes) Computing programme, in organisations that have done extraordinary primary school teachers and their students. We’ll helped them ease back in and reconnect with partnership with Computing at things during the Covid-19 pandemic. continue to support the programme as well as classmates through bite-sized joint activities School (CAS, part of BCS – the focusing on helping children learn and explore using computational thinking – from class Chartered Institute for IT), makes Barefoot’s home learning impact safely online through our support for families. gratitude trees to friendship bracelets and rainbow-inspired garden designs. We also computational thinking skills fun Sally House, created an algorithm for handwashing. and relatable. It’s reached more parent of eight-year-old Alice Sports day goes virtual than 3m children and teachers since 2014/15. Alice played Code Cracking, The School sports days went virtual this year with Hand washing algorithm our Digital Dash app. Seven to 10-year-olds , , Diamond, Barefoot Zoo and Sorting It Out. You need to wash your hands for the amount of time it takes to sing Happy Birthday twice. She enjoyed the games and I love that used logical reasoning, algorithms and Help for homeschooling problem-solving skills to create, personalise 1 2 3 she’s practising Maths skills in a fun and and train their own avatar sprinter. Originally designed to help teachers deliver the different way and not realising she’s computing curriculum, we rapidly reinvented the actually doing Maths! Thousands downloaded the app from our

Barefoot programme to help keep kids learning Skills for Tomorrow portal. Presenter Reggie Put soap on your hands Rub your palms together Rub the backs of your hands through Covid-19 lockdowns. Yates and Olympic gold medallist Dame Kelly 4 5 6 Supporting teachers Holmes hosted the final. Six finalists raced Our research found that around half of parents their avatars in a 100 metres sprint to win had less than three hours a day for homeschooling The majority of UK primary schools now use £10,000 of tech equipment for their school. and just 24% felt comfortable teaching IT and Barefoot – for classroom or virtual lessons. This Rub between your fingers Clean the backs of your fingers Rub your thumbs computer science. We created over 50 year, teachers downloaded Barefoot lessons over curriculum-based homeschool activities this year 7 8 9 46,000 times and home learning activities were to help them. downloaded over 57,000 times. New resources include interactive online learning We adapted our support for teachers in response games, activities for families to do together and Clean your fingertips by Rinse your hands Dry them well to the pandemic. Face-to-face training workshops rubbing them in your palms live streamed lessons. Quick and easy mini Lovely clean hands. Well done! became webinars, delivered by teacher Providing skills for tomorrow with BT and Computing at missions introduce concepts like algorithms, Barefootcomputing.org/barefootbytes School as part of the Barefoot Computing programme ambassadors and over 90 BT volunteers. They patterns and abstraction through fun household reached more than 2,500 teachers across the challenges – from creating a recipe to arranging country and more than 6,000 additional teachers leaves or painting abstract art. The online games registered with us. We’ve also released a series of alone have been played over 170,000 times. live and recorded lessons by CAS teachers for use at home. Watch the video here

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Footballing legend Rio Ferdinand headlined our We are founding members of Internet Matters In 2020, we teamed up with the Department for Helping families build support for families this year with our Let’s Talk (internetmatters.org), one of the UK’s leading Education and charities working with vulnerable digital confidence About video and guide that reached over 357,000 child online safety organisations. It’s supported by young people to make free wi-fi available parents. Our Top Tips on Tech campaign all three of our consumer brands – BT, EE and to families in need. We also offered 1,000 We’re there for families as they (see page 14) also included advice about online . Families can access their expert advice on tablets to vulnerable families and individuals deal with rapid technology change family time and exploring the internet safely. our Skills for Tomorrow portal, including guidance (see page 13). on how to raise sensitive subjects like sexting and When schools closed again at the start of and the shift to lockdown life self-harm. Staying safe and well online 2021, we introduced our Lockdown Learning online. Our goal is to boost Parents also told us they needed help giving their support package – a free support scheme for parents’ tech confidence and Digital tech was essential for children to continue kids a balanced online experience. We created families, carers and children who need help the knowledge, and to help kids stay learning through lockdown. But with children interactive guides on topics like digital wellbeing, most. The scheme provides those most in need spending more time online than ever before, managing online pressures and understanding with unlimited mobile data, BT Wi-Fi vouchers safe, happy and learning online. parents were worried about how to keep their kids the role of online influencers. and free mobile access to BBC Bitesize and safe online and balance screen time. Our research Oak National Academy educational content We’re also empowering children to protect found that on average parents worried five times without using up their data allowance. With themselves online. On Safer Internet Day, we a day about online activity and screen time. And support pledged until July 2021, it helps children launched an interactive online game to teach 61% of parents were concerned about the safety continue learning online, and stay connected to children about cyber security and phishing, and security of their children online. their teachers, classmates and schoolwork. as well as a board game based on snakes EE launched a new Set Up Safe service to help and ladders. ease these anxieties. It enables parents to set spending limits on their children’s smartphones, Working with the National Crime Agency, we add locks to prevent access to adult content, and developed classroom and home lessons on being block calls and texts to premium numbers. cyber smart this year. Launching in April 2021, the lessons will help students learn about online Firoozeh Salimi ownership, password security, cyber laws and how mother of two to protect themselves from phishing attacks. We’re also helping to protect children from online harm as a result of illegal activity (see page 23).

Leaving no families behind

School closures threatened to widen the gap I am very happy. Now my children can between rich and poor as home computers and learn. internet connections became essential to keep Firoozeh’s comment, on receiving a free up with schoolwork. We stepped up with free tablet and wi-fi through the DevicesDotNow connectivity to help disadvantaged children campaign that we support with our partner keep learning at home. Good Things Foundation.

12 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Through our partnership with Good Things With face-to-face learning limited this year, Our Customer Care teams receive specific training Tackling the Foundation, we supported local online centres we used television to reach out to people who to support vulnerable customers who call our digital divide providing personalised support and training to aren’t online. Our Top Tips on Tech campaign with contact centres and our home tech experts make people who lack basic digital skills. This year, we ITV (see page 14) offered practical advice on how in-person visits to set up devices. We also offer Digital tech can be a lifeline – provided funding to help around 80 centres, to connect with loved ones and access vital free priority fault repair to people with a disability more so than ever with Covid-19 helping them adapt their services to offer remote services online. or chronic illness. support to vulnerable people through the Volunteers at our BT, EE and Plusnet contact Our Including You (bt.com/includingyou) website restrictions on human contact. But Covid-19 lockdowns. We also encouraged centres reached out to isolated residents in care offers a one-stop-shop of accessibility products colleagues from our stores and contact centres to many are missing out. Around homes by pairing up with a companion and calling and advice. And we’re in our tenth year as volunteer at their local online centre. Together, 3.6m people living in the UK are to chat to them regularly. sponsors of the Tech4Good awards, showcasing we’ve helped more than 4,900 people build their innovative accessible products (see box). almost completely offline and skills and confidence this year. We also sought to combat lockdown loneliness through our Plus One (bt.com/plusone) campaign around 11.7m lack the basic tech In October, we promoted Get Online Week, a 1 in the run-up to Christmas. The idea was simple, skills essential to everyday life . campaign from the Good Things Foundation with encouraging people to reach out virtually to Mable Clough messages on the BT Tower in London, our digital We’re helping those most in need someone in their life that they had lost touch with. Age 91 billboards in over 500 high streets and screens in BT leaders and colleagues led the way, alongside get connected and build our retail stores. Our colleagues got behind the celebrities like Rio Ferdinand who reconnected confidence in being online. campaign by pledging to help someone they with his favourite dinner lady at Manchester know or love to build confidence with their United Football Club. digital skills. Going forward we will focus on supporting Supporting vulnerable and older people Openreach also teamed up with the charity older and vulnerable people to develop their We Are Digital to train over 250 social housing digital confidence through our customer I do get a little bit down sometimes. We’ve donated 1,000 SIM-enabled tablets to residents on tech skills to help them through the propositions, working with Good Things But just being able to talk to my family has older and vulnerable people through pandemic – from booking a GP appointment to Foundation as strategic advisers. helped a great deal. To be able to talk to DevicesDotNow, a campaign run by ordering groceries online. FutureDotNow and Good Things Foundation. and see them – it’s like a miracle to me. Older people, many of whom can be vulnerable or We provided 400 internet-ready EE mobiles to Taking an inclusive approach the charity Crisis to support homeless people more isolated, often lack the tech skills, Mable used the internet for the first time this through the pandemic. And we’re providing confidence or motivation to get online. We polled We serve nearly 1.4m customers who are year. She got a free tablet and wi-fi connection unlimited data to vulnerable mobile customers. 1,000 people who have a close relative over 70 vulnerable or have additional needs. Our through our partnership with the Good Things Our social tariff – BT Basic – offers an affordable and nearly half said it would be life-changing if Customer Inclusion Panel – including experts from Foundation to connect with loved ones as she connection to people on certain government their relative knew how to order their own Age UK, Mind and RNIB – helps us understand stayed safe at home. benefits, and we plan to refresh and relaunch groceries online. While many older people have these needs and make our products and services it during our next financial year, to support been reluctant to try and learn new tech skills, as accessible as possible for all. Watch the video here more people. 38% of those polled said they thought recent events had made their relative more open to this, but they didn’t know where to start.

1 Lloyds Bank UK Consumer Digital Index 2020.

13 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Schoolgirls’ Top Tips on Tech reaches We picked what to cover by checking Gareth Southgate, invention to dim millions during lockdown search engines to see what tech questions England football manager dyslexia people most wanted help with. Other tips Covid-19 hit the UK in March 2020 and included working from home productively, Seeing fellow classmates struggle with online we suddenly found ourselves in lockdown. taking a business online and protecting it, BT’s Top Tips on Tech campaign is a learning during lockdown inspired a team of Overnight, the nation had to learn how to stay and staying connected with culture virtually. good idea for everybody, and actively London schoolgirls to come up with a solution. connected to life, work and school without Simple downloadable guides are available helping during this period. Dimming Dyslexia, their prototype app, leaving home. It was a worrying and uncertain on each topic at bt.com/tech-tips. converts written text into friendlier formats time – especially for the less tech savvy The 12 bite-sized lessons had a lasting impact like cartoons and larger font sizes for among us. on many viewers. More than 5.7m people dyslexic students. We joined forces with ITV to help people gain learnt something new and 2.1m have been The idea topped over 160 entries to win our BT confidence fast. For three weeks in April and May continuing to put the knowledge they 1 Young Pioneer Award at this year’s Tech4Good 2020, we took over full ad breaks during This learnt into practice . awards. Now we’re helping the team develop Morning and the ITV Evening News to share Top their idea with the British Dyslexia Association. Tips on Tech. We enlisted well-known television Last year’s winner is already working with the and sport personalities to present simple how-to Royal National Institute of Blind People to bring advice from their homes to viewers. her smart walking stick invention to market. Sports presenter Clare Balding kicked off the series with a spot on how to use WhatsApp to stay in touch with friends and family. Comedian David Walliams showed parents where to find much-needed support with homeschooling, while hosts Marvin and Rochelle chipped in with tips to keep kids safe online. And England football manager Gareth Southgate – and some of his star players – shared their favourite apps to keep fit at home.

1 This research carried out by Ipsos MORI used a nationally representative sample and was independently verified by Watch the video here social impact research agency Chrysalis Research.

14 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Elaine Townshend Getting jobseekers Department for Work and Montana Japaul, Pensions on Jobcentre Plus Work Ready ready for work graduate and BT colleague Unemployment is rising as the I would like to thank BT Work Ready for developing and delivering this bespoke UK economy faces the sharpest webinar for the Department for Work and contraction in modern history. Pensions. A huge void was created during Competition for jobs is growing Covid-19 restrictions and our customers 1 and 82% of vacancies require were missing out on mentoring and The placement gives valuable skills to digital skills. We’re helping jobseeker skills. Over 850 claimants have learn and take on, whatever job you go on jobseekers of all ages and now participated in 30 districts and the to do. It helped me learn to stand out – you feedback continues to be really positive. backgrounds get the skills and want to shine! It really boosted my confidence, I wasn’t scared to approach confidence they need to land people, I just felt comfortable. I connected Standing out from the crowd the job they want – and stand Reaching more young people with lots of people and that led me to Our research found that by the beginning of out from the crowd (see box). getting my current job at BT. Work Ready 2021, jobseekers had applied unsuccessfully Young people are particularly in need of support gave me confidence to try something new. for 14 roles on average during the pandemic with over 14% of 16 to 24 year-olds out of work2. Over 3,400 18 to 24-year-olds have completed year. Four in five of the 2,000 we surveyed our Work Ready training programme since 2014 Hosted by celebrities like football presenter and said the job search had affected their mental Krista Wald, and more than half have gone on to further Hashtag United CEO Spencer Owen, our Work wellbeing. And just 22% were confident their BT colleague and education, apprenticeships or jobs. This year, Ready Live streaming event for young jobseekers CV and covering letter would stand out FastFutures mentor we transformed the programme to support has had over 17,800 views since August 2020. from others. jobseekers of all ages and took the usual face-to- The opportunity to participate in the Through our Stand Out Skills campaign face training online to overcome Covid-19 We also joined other leading UK employers to FastFutures mentoring programme was a (bt.com/standoutskills), we provided daily restrictions and bring benefit to a larger number launch the groundbreaking FastFutures true highlight for me! The mentees support for jobseekers to help them develop of jobseekers. programme, run by Avado learning. Together, we’re providing 18 to 24-year-olds from diverse brought incredible enthusiasm, a their confidence and enable their skills to In addition to those who attended our Work Ready backgrounds with three months of digital and willingness to learn and a desire to gain as stand out at every step of their job search. The campaign reached more than 468,000 training programme, over 2,800 people attended personal skills training to help them get started in much experience through the BT team as live webinars on subjects like how to write a great a tough jobs market. BT colleagues mentored 344 people. possible. It is an amazing programme and a CV, interview well, and stand out throughout the of the 2,100 young people in the first two cohorts Presenter Anita Rani, comedian Iain Stirling application and selection process. More than 600 wonderful chance to pay it forward and and held mock interviews with 183 of them and drag queen Divina De Campo fronted the have viewed our webinars with expert partners share digital skills across a community of (see quote). 28-day campaign in January and February LinkedIn Learning and Apprentice Nation. Over brilliant candidates. 2021. It included expert tips, videos, vlogs 850 people joined introductory skills webinars and webinars on how to shine at every stage that we ran in partnership with Jobcentre Plus to of the job search – from polishing CVs and help them keep up with the surge in demand from LinkedIn profiles to networking, applications new jobseekers (see quote). and interviews.

1 Research commissioned by the Department for Digital, Culture, Media and Sport (DCMS). Current and future demand for digital skills – a call to action – GOV.UK (www.gov.uk). Visit the site here 2 UK Parliament figure for November 2020-January 2021.

15 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our face-to-face training sessions have gone Our help is hitting home, with over 90% of Supporting small online this year with over 200 free webinars. entrepreneurs who attend our webinars saying Spending surge on businesses in the digital We’ve created new learning content on topics like they will change how they run their business. Small Business Saturday how to protect against cyber attacks, pivot your We’re offering more tailored support through free business online, build an e-commerce website This year’s annual Small Business Saturday economy one-to-one mentoring for small business owners and create a social media strategy. We invited BT event in December 2020 raised £1.1bn – 38% with Digital Boost – a non-profit platform that The UK’s 5.9m small businesses colleagues, business owners and partners like more than the year before – as the nation matches mentors with businesses based on the Small Business Britain, Google Digital Garage and stepped up to help high street stores survive. are the beating heart of our skills and experience they can offer. BT colleagues, Cisco to join our webinar series and share their Almost half of all Brits (48%) were inspired to economy, high streets and including senior executives, are volunteering to knowledge and experience with others. open their wallets. The Prime Minister, Leader communities. Covid-19 has hit share their expertise on issues ranging from cyber of the Opposition and Mayor of London all We offered guidance and asked well-known security and social media to marketing and voiced their support. them hard and many are looking business owners and industry experts to business strategy. online to power their recovery. share their top tips for success in our popular We were the main supporter for the We tapped into the Great British Entrepreneurs Let’s Talk About video series at bt.com/ event’s virtual bus tour. Over the course We’re equipping entrepreneurs Award network to create inspiring new webinars skillsfortomorrow. of the month, we organised digital skills and their teams with the tech skills together on timely topics – from flying in the face workshops and mentoring as well as they need through our Skills for By the end of March 2026, we want to reach 1m of adversity to changing consumer habits post Facebook Live interviews with our business small business owners and their employees with pandemic. We also supported the Small Business experts. The high-profile event drove millions Tomorrow programme. help to improve their digital skills. This year, we Saturday bus tour (see box). of social media impressions. launched the Small Business Support Scheme During the pandemic, 58% of businesses (bt.com/smallbusinesssupport), to help small increased their digital skills in response to the crisis businesses boost their connectivity, cash flow and and 74% believe this has enhanced their business. confidence. We’ve equipped over 278,000 people Confidence of surviving, or even growing, in the in small businesses with free practical digital skills next year is also higher among those increasing training and advice through online webinars and their digital skills. other resources. Let’s Talk About… launching your business with Sanjay and Shashi Aggarwal Sherry Coutu, ‘Let’s Talk About’ is our series of videos offering practical digital Founder, skills advice to help make your life easier. In this episode, Sanjay Digital Boost and Shashi Aggarwal, founders of artisanal spice and tea company, Spice Kitchen, share some tips for At Digital Boost, we help those who work launching a business online. for and lead small businesses and charities to survive the Covid-19 crisis and be more competitive in the long run. BT is a key Anyone who has an partner in our effort to help prepare the idea can start very UK to build back better after the pandemic. small and expand from there. When you’re online you have access to the whole world. Tip 1: Take risks Of course you need to think carefully and make wise decisions Just try it, and if it when you’re taking risks, but to succeed and see your business works it works. If grow, it’s important to take those risks. Tip 2: Be visible online You don’t need to have a multipage website to have an online it doesn’t, you can presence. Having a single landing page or even a social media account will let your customers know who you are and what 16 BT Group plc Digitalalways Impact and pull Sustainability back. Reportyou 2021 do.

Tip 3: Tell your unique business story

– Sanjay & Shashi Share online what you do on a regular basis and what goes on behind the scenes. It can help you tell your story and develop a brand that your customers know and love. Your passion for what you do shines through in person, so make sure it’s the same online.

Tip 4: Listen to feedback

Take notice of the comments your customers leave on your social media accounts. They’re the people who are paying money for your products, so listening to them can help you understand how to improve.

Tip 5: Understand your limitations As an entrepreneur you need to wear many hats. But when it comes to specialist areas like branding and packaging, accept that you can’t be an expert at everything. Sometimes it’s better to employ someone else to get the best results.

For more digital skills to help make parenting, work and home life easier, visit www.bt.com/skillsfortomorrow Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

David Bletso Boosting digital skills Passport to digital learning Chief financial officer, Unicef UK around the world The Covid-19 pandemic is the biggest So far, the curriculum is available in five and most urgent global crisis children have countries – Jordan, Kosovo, Somalia, Timor- The BT-Unicef partnership aims to Our support through Skills for faced since World War Two, closing schools in Leste and Ukraine. The platform already has Tomorrow extends beyond the over 190 countries. over 300,000 users. With a further 20 countries empower young people in Brazil and in the pipeline, it could reach over 5m potential South Africa to maximise the benefits of UK. We use our global reach to We helped Unicef scale up its pilot Digital users by 2022. digital technologies for their futures. Learning Passport – originally planned for empower the next generation to Alongside this vital work, BT has been make the most of life in a digital child refugees – to help schoolkids in countries The Learning Passport was recognised most in need. Launched with Microsoft and as one of the 50 Most Influential Projects of supporting delivery of Unicef’s ground- world. With our global charity Cambridge University, the platform provides 2020 by the Project Management Institute. breaking new digital learning platform, the partners, we’re helping to educate free access to e-books, learning videos, Digital Learning Passport, to thousands of and enable young people through recorded lessons and resources for teachers children across the world whose schools and children, including those with learning have been forced to close due to Covid-19. tech, reaching some of the world’s disabilities. most marginalised groups.

Supporting young people in India Partnering with Unicef India, a key international market for BT, faced one Worldwide, Covid-19 lockdowns forced 1.5bn of the world’s strictest lockdowns this year. This children out of school in 2020. We provided hindered progress on our programmes with support for Unicef’s global digital education non-governmental organisation (NGO) partners, platform (see feature), including contributions which are mostly delivered in local communities from our colleagues’ fundraising last year. and schools. We’re also working with Unicef to bring robotics Millions without internet access in rural and to life in South African primary schools, and to semi-urban India were particularly at risk of support youth-led community projects and digital being left behind. But new approaches enabled skills training in Brazil. The pandemic has slowed young people to continue to learn online using progress, but further rollout of these messaging groups, digital content, virtual and programmes is expected in 2021. self-learning modules – and offline through community radio, television, and mentoring and support via mobile.

17 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Aysha Joffey, We continue to partner with the British Asian Trust Colleagues across the globe volunteered for over IT partner manager and (BAT) on our ambition to use tech to improve the Partnering 600 hours, and donated more than 5,000 food BT India volunteer health, education and economic prospects of with charities items and over £40,000 to stock their local food 100,000 teenage girls. We also support the banks. Our colleagues in India raised over School TV is making learning accessible to BAT-led Quality Education India Development We’ve used our tech and expertise £50,000, including matched corporate funding, more than 20m kids in India without Impact Bond that aims to improve learning to help generate over £720m for for local charities serving those most affected internet access. I was lucky enough to play outcomes for primary school children in India. by lockdown. a part in this fantastic initiative, creating In its first two years, the bond has led to learning good causes since 2012/13, We also donated £15,000 to support Unicef’s gains for over 104,800 students. The programme three short home videos on software including £18m this year alone. Covax appeal which aims to deliver 2bn Covid-19 is achieving over three times its target for testing basics and machine learning for This year colleagues have donated vaccines for health workers and some of the most learning outcomes. kids. It’s been an amazing experience over £2.4m through Payroll Giving high-risk people in low and middle-income personally and a brilliant way to give to causes they care about, countries. something back to the community. Going global with skills partnerships benefiting 1,373 charities. Over The BT Supporters Club donated over £1m in We’re expanding our regional partnerships emergency grants to provide stability to 19 charity with customers and communities to help more the last four years our colleagues partners in the UK and internationally. Its Over 250 colleagues volunteered their expertise countries harness tech to support education and have donated £10.8m through seven-year partnership with Comic Relief raised to help keep children learning. Some made videos skills, employability and equality. Payroll Giving, which we’ve topped over £12m for Sport for Change projects in the UK on digital and work ready skills for our partner and abroad, directly benefiting over 313,000 Going to School that reached over 27.5m people We joined the UN EQUALS Global Partnership for up to more than £12.5m. people. This partnership has now come to an end on state TV or online youth channels (see quote). Gender Equality in the Digital Age, a coalition of as we strengthen our focus on charity partnerships Others mentored young people virtually and built business, government and civil society groups. Supporting charities through Covid-19 that build life-changing digital skills. websites for our partners to take skills training We’ll be supporting their digital skills work to help online. We also launched a smartphone lending close the gender gap in the tech sector. This year, the Covid-19 pandemic created library with our partner ETASHA Society in rural Virtual volunteering In Australia, our partnership with the government unprecedented need for charitable support Haryana where young people, especially girls, and banking sector to fund cyber security lessons across the UK and beyond. We used the power Despite Covid-19 limitations on in-person often don’t have access to phones to enable in schools won an education award at the of tech and the passion of our volunteers to volunteering, over 1,800 of our colleagues online learning. Australian Women in Security Network’s Awards. support charity partners and communities with volunteered their time and expertise to help out We also launched the programme in Singapore devices, connections, vital funding and digital this year. Some did so virtually, supporting to help 10 to 18 year-olds hone their cyber skills training. partners like Education & Employers and security skills. As a founding patron of the National Emergencies TeenTech. Our colleagues’ annual Gradventure fundraiser brought in over £5,800 for TeenTech’s We continue to work with major customers and Trust, we helped fund its operating costs so it youth programme and we sponsored its 2020 partners, including Facebook, Microsoft and could raise funds to help over 13,000 charities get digital skills award. Nestlé, to equip young people with work ready essentials like food, shelter and mental health skills through the Global Alliance for Youth. Its support to millions of people who needed it fast We also launched an FA Playmaker volunteer Tips from the Top podcast series, featuring our (see page 7). So far, the appeal has raised force to support our 4-3-3 partnership with the digital impact director, gained over 3.8m social over £97m. home nation football associations. These media impressions across eight countries. BT Sport customers donated over £1.1m to NHS football-loving colleagues stand ready to help Charities Together and we raised over £14,000 for their local community clubs once it’s safe to do so. the Trussell Trust to distribute food and essentials in the UK.

18 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We have a strong legacy of leadership in respecting human rights across our business Championing and supply chain. We’re taking a responsible approach to tech that respects people’s responsible fundamental rights and freedoms.

Our progress tech and Strengthened Began a citizen engagement human rights programme to understand the governance and due role of responsible tech in future human rights. diligence processes growth and innovation areas Established new Mapped supply chains down to responsible tech strategy tier 4 for all BT, EE and Plusnet and principles, and tested them branded products Ed Petter through our new responsible Corporate Affairs Director (executive sponsor, tech steering group responsible technology and human rights)

In this section

As we move into the future, we’re taking 20 Respecting human rights 23 Protecting privacy a bold and open approach to harness the through a responsible and free expression opportunities and respond to the risks of emerging technologies. Getting this right matters. It will approach to tech 23 Addressing online reduce risk, enable commercial growth and 22 Sourcing with human dignity harms and illegal content innovation, and help us realise our ambition of being the world’s most trusted connector of people, devices and machines.

19 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We’ve strengthened our governance of human Open engagement on human rights Respecting human rights rights following a review and recommendations Human Rights Day 2020 from BSR (bsr.org/en/). Listening to and engaging with stakeholders through a responsible within and outside the business is central to our Recover Better – Stand Up for Human approach to tech Our chief executive has formally delegated approach to human rights issues. We advocate for Rights. That was the theme of the UN’s authority for decisions about human rights risks to a collaborative approach, and partner with other annual Human Rights Day in December 2020. our corporate affairs director, who chairs our new We’re committed to respecting companies, government and civil society. We took the opportunity to share reflections responsible tech steering group (see next page). and supporting the human rights This year, we engaged in EU policy work on with colleagues on tech and human rights and freedoms of all those touched We’ve also enhanced the integration and visibility mandatory human rights due diligence and issues in the context of Covid-19. We of human rights risks within our group risk encouraged them to think about some of by our business – our colleagues, artificial intelligence. We joined the Council of management framework. Europe’s Partnership with Digital Companies. And the key human rights issues we can affect as a business – including inclusion, equality, customers, supply chain workers Our updated sales due diligence process helps to we continued to support the development of best privacy and free expression. For example: and wider communities. And we’re identify and address the potential human rights practice and smart regulation through thinking deeply about how we impacts of our products and services. We look at collaborative initiatives like techUK’s digital ethics – Has 2020 changed the way you think what we’re selling, who the customer is, and working group, Digital Catapult’s artificial about your human or digital rights? develop, use, buy and sell whether our product is likely to directly or intelligence industry working group and our – What are the most important human technology in a way that benefits indirectly support high-risk activities like military, regular engagement in BSR’s Human Rights rights issues we face as a company? security or law enforcement applications. Working Group. people and minimises harms. And as a society? Based on what we find, we may decide to conduct We’re also part of the debate on human rights – Looking ahead, how can we help our Human rights governance a more detailed human rights impact assessment, issues in the world of sport through the Centre for communities recover better and stand sometimes with external support. In the last two Sport and Human Rights. up for human rights? We follow the UN Guiding Principles on Business years, we asked external experts to support two We encourage anyone with concerns about and Human Rights, and we were an early signatory impact assessments related to sales to customers human rights in our operations or value chain to The pandemic has shone a spotlight on of the UN Global Compact. Our Human Rights identified as potentially higher risk. Their contact our confidential Speak Up helpline or our the vital role technology and data can play Policy (bt.com/humanrights) sets out how we recommendations informed a responsible human rights team. Colleagues can also ask a in improving people’s lives. It’s also brought protect human rights within our business and approach to these sales that incorporates question using our internal website. issues like privacy and free expression to through our wider relationships. mitigation measures to address identified risks. the fore, reinforcing our focus on Respecting human rights is part of our ethics code responsible tech. (bt.com/ethics) that all colleagues must complete training on every year. We provide additional guidance and support to teams most likely to face human rights risks. This year, we made training on modern slavery mandatory for all our procurement colleagues, and offered additional human rights support for key colleagues in our Asia, Middle East and Africa regions.

20 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our responsible tech strategy Creating a responsible tech culture Our responsible Tech is rapidly transforming the way people tech principles We’re engaging with people across the business Tackling tough interact with each other and the world. The use to explore what our responsible tech principles tech questions of tech, sensors and data will continue to change – For Good: We design and deliver tech to mean in practice for the way we develop, use, the world around us – the ways we live, work, empower people and improve their lives. buy and sell technology – and to consider the Rapidly evolving technology brings with it potential benefits or harms that could spur from huge potential for positive impact. But there travel and stay healthy. – Accountable: We are accountable for our tech-related decisions. We’re looking across our could be negative effects and trade-offs too. This offers a wealth of exciting opportunities to actions and take care to avoid and protect whole value chain – from who our suppliers might How might different groups of people – and unlock the positive role of tech. But we know against tech misuse. be working with through to risks and benefits of our their rights – be affected? What unintended people are also worried and sometimes scared – Fair: We work hard to ensure everyone is consequences might there be? And how can 1 products for consumers. about the possible consequences. Six in ten treated fairly and with respect. we make sure that tech skills, governance and We’ve set up a new responsible tech steering Brits worry that the pace of change in technology – Open: We listen, collaborate and are standards keep up with the pace of change? 2 group, which includes leaders from our customer- is too fast and almost three in ten tech workers transparent about our actions. are worried about the work they do having facing units and corporate functions, and reports Asking these kinds of tough questions is negative impacts. to our Executive Committee and provides updates essential to ensure we connect for good, with to our Digital Impact & Sustainability Committee. tech that benefits people and minimises How we use data will determine whether our The principles build on our purpose, values and The group’s remit is to set strategic direction, drive harms. Our new responsible tech steering customers trust us – and we know that 92% of commitment to human rights. They draw on the consistency in decision-making across the group helps us dig deeper into the ethical customers are more likely to trust companies UN Guiding Principles on Business and Human business, stay on top of emerging trends and implications of applying new technologies to that give them control over the information they Rights, and learning from peers and experts. resolve escalated issues. It has already started pressing societal challenges. share3. That’s why trust is central to our mission, We designed the principles to apply to all aspects road-testing our responsible tech principles and being a visible leader on responsible tech is In the steering group’s inaugural workshop, of our business and value chain, regardless of the in the context of real use cases and ethical issues part of our new corporate strategy. they focused on the use of tech such as artificial (see box). type of technology. This will help us stay flexible intelligence, advanced data analytics, and the Our responsible tech approach will support and respond to new innovations and issues as To help us make informed decisions, we also listen Internet of Things in the areas of healthcare, commercial growth and innovation by leveraging they come up. to the people who could be affected by them as home care and public health. trust as a differentiator of existing solutions We’ve already thought about how to apply our part of our open culture. Together with think tank and enabling us to take a lead in future growth It also served to test and refine our new principles to artificial intelligence. This includes Demos (demos.co.uk), we surveyed members of areas – including connected homes, smart cities, responsible tech principles (see box) being open about how we use it and explaining the UK public to help us understand their views on workplace automation, healthcare tech in a healthcare context. Steering group how it works, taking care to prevent improper use, personal data being used to improve public health and security. members discussed potential benefits like or being tracked in public spaces, their relationship and promoting inclusive and fair outcomes by more effective targeting of interventions for with their devices, and their expectations of The objective of our new responsible tech avoiding any built-in bias. positive health outcomes. And they thought transparency and privacy. strategy is to ensure that we consistently through potential concerns, including develop, use, buy and sell technology in a way The findings show that people evaluate the implications for people’s privacy. that benefits people and minimises harms. benefits and risks of tech and data differently, Many of the decisions our colleagues take every but they share concerns about the future, and day raise questions that require careful thought hold similar views on the need to empower tech – like balancing potential benefits of tech with users so they can be in control of their data and privacy and fairness. The answers aren’t always understand the potential impacts of tech. black and white, so we’re empowering our people to make responsible decisions using four simple but important principles (see box). 1 Edelman Trust Barometer – Insights: Tech and trust. 2 Doteveryone: doteveryone.org.uk/work. 3 KPMG research – Building technical trust.

21 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

This year, we identified 51 medium and Membership of the RBA gives us access to Sourcing with high-risk suppliers. Covid-19 lockdowns and in-depth assessments of shared suppliers at all Tackling modern slavery travel restrictions meant we carried out fewer levels of our supply chain. human dignity We’re calling for better use of tech and data on-site assessments than usual – 33 in total – Our updated Human Rights Policy describes how to help combat the risks of human trafficking, and we conducted five remote assessments via Our suppliers provide the products we prevent raw materials associated with the risk forced or compulsory labour in our supply video call for high priority cases. We found issues and services that keep our of funding armed conflict (known as conflict chain and beyond. around increased use of temporary labour and minerals) – or with other issues such as working business running. This year, we excessive working hours or overtime, likely as a This year, the Tech Against Trafficking conditions and child labour – from being used in result of impacts from Covid-19, and we worked (techagainsttrafficking.org) coalition that spent around £13.1bn with more our products. These materials include cobalt, with suppliers to help them improve. we’re part of launched the first published than 1,100 direct suppliers in gold, tantalum, tin and tungsten. See our Modern global analysis of how different stakeholders, Slavery Statement (bt.com/modernslavery) for nearly 100 countries. Supplier assessments on including law enforcement, civil society, more on our approach and findings this year. social and environmental criteria businesses and academia, can take Any supplier that wants to work with us has to advantage of technology to advance the 2019/20 2020/21 Supporting our suppliers commit to our Sourcing With Human Dignity fight against human trafficking. Self-assessments by new or 340 122 labour standards or equivalent – as well as other renewed contract suppliers We’ve reached out to suppliers to help them To mitigate risks in our supply chain we used standards on climate change, environment, ethics, Suppliers identified as high or 95 51 through the Covid-19 crisis this year. We checked machine learning techniques to improve our health and safety, and product stewardship. medium risk in with our most critical suppliers to anticipate any visibility and simplify the complexity of We use a risk-based approach to assess suppliers’ % of high or medium-risk 100% 100% potential financial stress or difficulty meeting managing supply chain risks for all BT, EE suppliers reviewed within orders, and discuss contingency plans if needed. and Plusnet branded products. performance. This starts with questionnaires to three months as follow-up understand the level of risk when a supplier first We support the Government’s Prompt Payment Our funding and technology helps the UK’s comes on board or renews their contract with us. On-site Tier 1 15 14 assessments Code programme in the UK. In 2019, British Modern Slavery and Exploitation Helpline, One of the factors that determines the level of risk (Tier 1, 2 and Tier 2 33 18 Telecommunications plc was suspended from the run by Unseen, provide 24/7 advice and is where a supplier operates. This year, we’ve 3 suppliers) Tier 3 5 1 Code, but has since worked to monitor and support to anyone who calls. increased the number of countries considered improve supplier payments, and was subsequently high risk for human rights issues to align with the Total 53 33 reinstated. This year, we paid 95% of supplier “Despite a seemingly impossible task, all Responsible Business Alliance (RBA) risk maps. invoices in line with the terms we’d agreed with Helpline operations were moved to If we assess a supplier as medium or high risk, we them. We also announced we’d pay our 4,500 remote working in April 2020, with the ask for more information and follow this up with an Looking deeper into the supply chain small business suppliers within 30 days, as part of Helpline Team being set up to take calls on-site assessment if needed. If we find a supplier our Small Business Support Scheme and answer online enquiries and concerns This year, we harnessed the power of artificial is having any issues with meeting our standards, (bt.com/smallbusinesssupport), whilst recent intelligence to map the supply chains for all BT, from home, which we continue to do. This we work together to try and resolve these issues. reforms to the Code require us to pay 95% of EE and Plusnet branded products and identify was only possible through the resiliency But if they don’t show a commitment to improve, invoices from smaller suppliers in 30 days – we’re associated human rights risks, including risks of of the BT telephony and cloud-based we’ll stop working with them. on target to do this by July 2021. modern slavery (see box). The initial findings system the Helpline utilises.” revealed nearly 1,800 supplier relationships This year, we’ve also developed a plan to across Tiers 2, 3 and 4. Some suppliers collaborate with and encourage our suppliers Unseen Modern Slavery and Exploitation appeared over 20 times. to meet and mirror our commitment to Helpline, Annual Assessment 2020 diversity and inclusion. (unseenuk.org)

See our Modern Slavery Statement (bt.com/ modernslavery) to find out more about our approach and performance this year.

22 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

This year, at the UK Government’s request, The rise in misinformation circulating online is Protecting privacy we provided limited anonymised network data Addressing online harms drawing increased attention to the issue of and free expression – such as general patterns in the movement of and illegal content balancing freedom of expression while limiting people – to help plan the public health response potentially negative impacts. People have a Privacy and free expression, to the Covid-19 pandemic. The Government has Recent research from Demos, fundamental right to express themselves, but we both fundamental human rights, subsequently begun paying for this information funded by BT, found that there’s a will block access to illegal content – including following a formal competitive tender. No malicious traffic, intellectual property violations are closely connected. Protecting personal data is involved and individual users high level of concern among the and images of child sexual abuse flagged by the our customers’ information also can’t be identified. Safeguards include scheduled British public about the potential Internet Watch Foundation. See the Appendix for enables them to communicate reviews, additional security and measures to for online harms. Views varied on data on the material and sites we’ve blocked in the ensure data remains anonymised (see our UK this year. freely. website (bt.com/about/coronavirus/our- the right balance between tackling We partner with the Marie Collins Foundation customers) for more. online harms and protecting online (mariecollinsfoundation.org.uk) to support We secure customers’ data on our networks – and Sometimes authorities can legally request access freedoms, and how to strike that children who have been harmed or abused online help them protect themselves online – as part of to data or communications to help tackle serious balance. But there was a clear (see quote). Since 2015, its CLICK: Path to our strategy to create standout customer crime or protect national security. In these cases, a Protection programme has trained over 7,000 experiences (see our Annual Report 2021). And government overrides individuals’ right to privacy desire for shared responsibility on frontline professionals to help them provide better our privacy impact assessment tool helps us make to protect the security of its citizens. We’re obliged this by the UK Government, online support for victims and their families. sure we build privacy into the design of new by law to provide information requested under platforms and providers, and products and services to protect our customers these investigatory powers, but we have individual internet users. and their data. processes in place to assess each request Victoria Green Challenges around tech, privacy and free carefully. We ask for more information if we have Director of services, expression are continually evolving. We work questions about what we’re being asked or want In another study with the Good Things Marie Collins Foundation to check the legality of the request. Foundation, we found that certain groups face with other tech companies and human rights We cannot emphasise enough how organisations to respond through our involvement greater risks than others and most people don’t See the Appendix for a summary of lawful important the support BT has given in the Global Network Initiative (GNI) interception and data disclosure requests know where to find help. There’s also a gap the Marie Collins Foundation over the (globalnetworkinitiative.org). We support the received in 2020 by country. Our Privacy and Free between knowledge and actual behaviours GNI’s Principles on Freedom of Expression and Expression Report 2019 (bt.com/ when it comes to staying safe online. years has been in the development of training, resources and new partnerships. Privacy and this year we presented a self- privacyandfreeexpression) explains our approach We empower people to keep themselves safe assessment of our performance against the to privacy and free expression in more depth. online by offering free tech tools like parental Its funding has enabled us to reduce the principles to the GNI board. We identified several controls for our products. And we support online impact of online child abuse and harm to areas where we could improve and we’re safety awareness and education through our Skills children and their families – not just in strengthening our policies, processes and for Tomorrow programme and our partnership the UK, but internationally. governance structures in advance of an with Internet Matters (see page 12). independent external assessment in the coming year. We also support wider efforts to keep people safe online while respecting personal freedoms. We provided input to the UK Home Office Select Committee Online Harms Inquiry and welcomed the resulting Government Online Harms White Paper response. We also welcome the forthcoming Online Safety Bill, which we expect to be a significant step forward.

23 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We’ve been a leader on climate and sustainability action for almost 30 years. Now we’re championing Tackling climate a green recovery on the road to becoming a net change and zero carbon emissions business by 2045. Our progress 100% 29% renewable electricity worldwide1, cut in carbon emissions across our environmental achieving our goal for 2021 global operations over the last year (Greenhouse gases scopes 1 and 2) £358m saved since 2009/10 through 19% challenges. our energy efficiency cut in supplier carbon emissions management programme since 2016/17, towards our expanded reduction target of 42% by end of

Rob Shuter 57% March 2031 CEO, Enterprise reduction in the carbon intensity2 of our operations since 2016/17, on Expanded our 2045 net zero target track to achieve our 87% goal by to include our supply chain as well as end of March 2031 our operations In this section

25 Advocating for a 30 Mitigating and adapting We’re on track to hit our ambitious carbon reduction green recovery to climate risk targets, and we’re using our relationships and technology to inspire and enable others to accelerate 26 Road to net zero 31 Supporting a circular the transition to a low carbon economy. Our solutions 28 Driving supplier economy are already helping consumers, businesses and the climate action 32 Managing environmental public sector cut carbon and we’re harnessing further impacts opportunities through 5G, the Internet of Things, 29 Helping customers artificial intelligence and our new green tech cut carbon

innovation platform. 1 99.9% of the global electricity BT sources is renewable. The remaining 0.1% represents where markets don’t allow due to non-availability of renewable electricity. 2 Scope 1 and 2 greenhouse gases per unit of gross value added calculated as EBITDA adjusted (before specific items) plus employee costs.

24 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our climate approach and performance made the Advocating for transformational change in 2020 Advocating for CDP’s A list again this year and we’ve advanced a green recovery our reporting in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations (see page 30). As the world looks to recover from the Covid-19 crisis, we have an Robust management systems help us mitigate risks and drive down the environmental footprint opportunity to use our tech, of our operations. We’re also committed to innovation and influence to put supporting a circular economy and cutting down climate action at the heart of the on plastic. economic recovery. This year, we We launched We joined Race We joined Exponential We launched We joined the The UK Electric to Zero, a global Roadmap Initiative the SME Climate Count us in Supporting business growth joined over 200 leading businesses Fleets Coalition with campaign to rally to accelerate climate Hub, an initiative movement to get in urging the UK Government to The Climate Group leadership and action exponentially, founded by BT and 1bn people Leading by example on climate positions us to call on the support to target a bringing together others, including worldwide to pledge favourably with customers and investors, who are build back better by creating a fairer, Government to zero emissions world tech, innovation, the International to climate action transition the UK scientists, companies Chamber of increasingly looking to companies’ credentials more resilient and low carbon society. to EVs by 2030 and NGOs Commerce, to help and contributions towards a low carbon society. SMEs commit to We’re aiming to increase demand for our products climate action and services by showing we’re a communications Our infrastructure is powering the UK’s road to net provider that can enable others to decarbonise. zero. We’re investing in full fibre broadband and Our carbon-reducing solutions are already 5G networks that will pave the way for lower- Leading by example contributing to around 25% of our revenue. carbon ways of life and work. Our products and Helen Clarkson services help consumers and businesses shrink CEO, The Climate We’re working to become a net zero carbon Our commitment to tackling climate change and their environmental footprint. And our new green Group emissions business by 2045 and this year we environmental challenges can also help us attract tech innovation platform fosters breakthrough expanded this target to include our supply and retain talent as more people want to work for technologies to cut carbon in the public sector. chain as well as our operations. a business that champions sustainability. We’re partnering for change with suppliers, We were among the first three companies in the customers, peers, government agencies and world to commit to a 1.5°C science-based target others to inspire wider climate action and and many companies have now followed suit. solutions. This year, we championed new coalitions The UK Electric Fleets Coalition’s ask for We’ve already cut the carbon intensity of our (see box), including the UK Electric Fleets increased ambition was a significant operations by 57% since 2016/17 and we’re on Coalition that’s driving the transition to electric influence on the UK Government’s decision track to achieve our 87% intensity reduction vehicles (EV) (see quote). target by the end of March 2031. to phase out petrol and diesel vehicle sales We plan to play an active role at the by 2030. We would not have been able to We continue to raise our climate ambition. This COP26 UN global climate summit, which is convene this group of major corporate year, we increased our target to cut supply chain scheduled for November 2021 in Glasgow. This fleets without the leadership of BT. emissions from 29% to 42% by the end of March year, we kept up momentum by sponsoring events 2031, in line with the latest climate science to limit We look forward to using this policy- like the Net Zero Festival in October 2020. Hosted global warming to 1.5°C. by Business Green and broadcast from the BT influencing force to accelerate the UK’s Sport studio, the event featured policymakers and transition to electric vehicles together. business leaders sharing their visions for a zero carbon transition.

25 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

In the few markets that don’t yet have local We aim to transition our fleet to electric or zero Our climate strategy Road to net zero solutions (accounting for around 0.1% of our emissions models by 2030, where it is the best global electricity use), we’ll purchase from technical and economic solution, and will pursue Climate change is the most material We’re reinventing the way neighbouring markets for the time being. other ultra-low emission solutions where EVs are environmental issue for our stakeholders and we run our business to get to net not viable. Openreach is aiming to switch a third of business. Our ambition is to become a net We consumed over 2.5 terawatts of electricity this zero. We’ve switched to renewable their fleet to electric or zero emissions by the zero carbon emissions business in our year. Using 100% renewable electricity underpins middle of this decade and want to be all-electric operations and supply chain by 2045. electricity, we’re transitioning to our commitment to build back better and greener. or zero emissions by 2030. To do so, we need It supports the UK’s net zero carbon goal, Our climate change strategy aims to reduce a low carbon fleet and we’re suitable electric vans, currently in short supply, encourages global markets towards renewable our end-to-end emissions, improve the and a reliable nationwide charging infrastructure decarbonising our buildings. power, and sets a strong example for others. resilience of our assets and support a low that’s not yet in place. carbon economy by: We’re engaging with members of the RE100 Completing the switch to We’re working with others to help tackle these (there100.org) campaign, our customers and – investing in energy-efficient and renewable electricity challenges. We’re a member of the EV100 suppliers to promote further uptake of climate-resilient networks (theclimategroup.org/ev100) group and this year renewables. As reported to CDP in 2020, 198 of This year, we hit a huge milestone by completing we joined forces with The Climate Group and 29 our suppliers are now making use of renewable – reducing our energy needs and the switch to 100% renewable electricity organisations to launch the UK Electric Fleets 1 electricity (up from 181 last year). decarbonising the energy we buy and worldwide , meeting our target for 2021. Coalition. At launch, our fleets had around half a use, including through the purchase of We were already at 92% renewable electricity last million vehicles. The Coalition has successfully renewable electricity year and completing the switch has cut our carbon campaigned to end the sale of new conventional Cyril Pourrat – working with suppliers to design products emissions for this year by a further 57,108 tonnes2. petrol and diesel vehicles by 2030, reflected in the Chief Procurement Officer and packaging that minimise energy and That’s the equivalent of taking around 36,000 recent announcement by the UK Government, materials use, and support reuse and combustion engine cars off the road for a year. with exceptions made for specific vehicles where it recycling, as well as encouraging them to isn’t feasible. The Government has also pledged We got to 100% by supporting the development It is important for BT to demonstrate its reduce their own greenhouse gas £1.3bn to roll out charging points nationwide. of local renewable electricity markets. Power commitment to a green recovery. Our team emissions purchase agreements met 12.2% of our global has worked hard to secure renewable Following a trial last year, we’ve now secured 351 – developing low carbon products and electricity demand this year. The rest came from electricity contracts for our sites globally, electric vans for our fleet. We’ve installed 122 solutions that enable our customers to local green tariffs and, in some cases, renewable a crucial step towards the Paris charging points at our sites and Openreach has provided over 300 units for engineers to charge reduce their carbon footprints certificates. Agreement’s 1.5°C target. their vehicles at home. – engaging our colleagues to help them reduce their personal carbon footprints Transitioning to a low carbon fleet It will take time to fully electrify our fleet. In the meantime, we’re making our existing fleet more – collaborating with others to accelerate the BT and Openreach together operate the UK’s efficient. This year, we started introducing battery transition to a low carbon economy. second largest commercial fleet. We have around packs for engineers to power lifts used to fix 33,000 vehicles on the road (the majority of which overhead cables without running their vans’ diesel are in Openreach), to keep homes and businesses engines. The packs help us cut fuel use, emissions connected. Over two-thirds of our direct and noise. emissions (GHG scope 1) come from our fleet.

1 99.9% of the global electricity BT sources is renewable. The remaining 0.1% represents where markets don’t allow due to non-availability of renewable electricity. 2 GHG scopes 1 and 2.

26 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Decarbonising our buildings Our performance orldide energ sage on Scopes 1 and 2 lectricit lectricit Improvement 2008 to 2021 We’re reducing carbon emissions and improving ear ended arch as heating oil as heating oil energy efficiency across our buildings estate of Overall, we cut emissions from ther ther How the carbon footprint of our business has improved since we over 6,000 sites. We completed the switch to our global operations (GHG h set our first science-based target 100% renewable electricity which reduced our in 2008 to today. scopes 1 and 2) by 29% this year carbon footprint. But we’re still looking for ways to Scope 1 Scope 2 reduce energy use and find alternatives for to 0.17m tonnes of CO2e. Since carbon-intensive heating (see box) and cooling. 2016/17, we’ve reduced our This year, our global energy consumption reduced carbon intensity by 57% to 13.7 2008 by 123 GWh1, mainly as a result of energy tonnes of CO2e per £m value efficiency measures, including the reduction of 259 our legacy network and our investment of nearly added. We’ve also reduced £21m in cooling projects, but also to a lesser extent our global energy use by 4.7% the impact of Covid-19. Overall, our investments this year. See supporting have helped us save £358m since 2009/10. environmental data for more * Other constitutes Gas and Oil – Generators, Commercial Fleet, Commercial Travel. We have an ongoing programme to install ** Non-UK Gas and heating oil and other usage in GWh are as follows: 2021 adiabatic cooling systems that use water and fresh on our performance. 2019 2020 2021 172 air instead of greenhouse gases; we added a Gas and heating oil: 3 Gas and heating oil: 2 Gas and heating oil: 2 further 932 this year. We’re continuing work to Other: 24 Other: 24 Other: 11 make our core infrastructure more efficient so we can process more data with less energy. -87% r orldide greenhose gas emissions scopes and -87 2030 Intensity Target ear ended arch C e onnes kTonnes As part of our Better Workplace Programme, cope irect emissions rom our on operations eg uel combustion we’re consolidating some of our offices and cope Indirect emissions rom the generation o our purchased energ mainl electricit including environmental considerations in plans Carbon intensit reduction since onne ntent for new buildings, including BREEAM Excellent Net Zero e certification at our new buildings in Birmingham, 2045 Absolute Target Bristol, London and Manchester. 2008 522 1 Excludes commercial fleet and travel. Our Doncaster contact centre goes 100% renewable Our Doncaster contact centre had a low 2 021 carbon makeover this year. Conventional chillers and gas-fired boilers are out. New 0.3 electric cooling and heating is in. The building now runs on 100% renewable energy, reducing bills and carbon emissions. -522 e no include all scope emissions in our reporting ee net page or details on scope kTonnes breadons igures eclude thirdpart consumption cope data uses maretbased calculations

27 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Pioneering climate contracts Partnering for change We also encourage suppliers to join us in reporting Driving supplier climate-related data to CDP to enhance climate action We have 12 of our key suppliers with a clause in We teamed up with other climate leaders to transparency and accountability. In 2020, 310 their commercial contracts with BT or Openreach launch two major partnerships through the suppliers did so, up from 304 last year. Together, Over two-thirds of our end-to-end that commits them to make measurable carbon Exponential Roadmap Initiative this year. they make up 56% of our total spend. savings. carbon emissions come from our The 1.5°C Supply Chain Leaders programme Of these, 73% have set targets to cut emissions supply chain. We’re partnering Nokia was one of the first to sign up and is working is designed to inspire and drive climate action and 44% cut their scope 1 and 2 emissions this with its own suppliers to reduce the impact of across global supply chains. We’re supporting its year. CDP disclosures also showed that 64% of our with suppliers to curb their high-carbon components that go into our ambition to hit net zero before 2050 through reporting suppliers buy renewable electricity (up emissions and ours. This year, we network equipment (see quote). our own 2045 net zero ambition. from 60% last year ) and 69% work with their own expanded our target to reduce Openreach suppliers MJ Quinn and KN Group The SME Climate Hub provides tips, tools and suppliers on climate change. supply chain emissions in line with have committed to significant carbon savings best practices to help small and medium-sized This year, we were included in the top 7% of the latest 1.5ºC climate science. across their operations. Meanwhile, are enterprises (SMEs) curb their emissions and gain companies assessed for supplier engagement on developing their plans for setting science-based competitive advantage by supporting a green climate change, based on our 2020 CDP disclosure. We were originally aiming for climate targets and plan to cut emissions from recovery. Suppliers engaged by participating in the CDP a 29% reduction from 2016/17 supporting our network. These three suppliers Supply Chain programme. We also retained our by end of March 2031 and now alone are expected to save over 6,000 tonnes of Setting high standards position in the CDP’s Supplier Engagement carbon during their five-year contracts with Leaderboard for the fifth year in a row. we’re going for 42% within the Openreach. All our suppliers must meet our requirements on same timeframe. climate and environmental management among Performance This year, we offered some suppliers free energy other standards (groupextranet.bt.com/ audits of their premises and carbon-saving selling2bt). We track compliance through supplier We’ve cut supply chain emissions to 2.6m tonnes guidance from experts at The Carbon Trust. So far, assessments (see page 22). this year – and by 19% since 2016/17 towards our nearly every supplier audited has taken steps to 42% reduction target by the end of March 2031 reduce their energy use. We also invited suppliers (see chart). to share innovations to support a circular economy through our yearly Game Changing Challenge Steve Whitford l chain emissions reakdon o scoe emissions Customer delivery manager, (see page 32). ear ended arch Fixed Networks, Nokia mbodied emissions o netor I and retail electrical euipment Interconnect termination o calls on other telcos netors In partnership with BT, we have been ther suppl chain emissions materials cable uels and services working to reduce supply chain emissions Ce from the production of components that go onnes coe sl chain makes the into our network equipment. Our focus is on maorit o or caron emissions the components with the highest climate illstrated in the olloing diagram impact, such as printed circuit boards. Suppliers of these circuit boards have now committed to implement best-in-class energy efficiency measures and reduce cope cope their carbon impact by over 100 tonnes cope of CO2 during the course of our contract with BT.

28 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Our new green tech innovation platform will offer Helping customers breakthrough solutions for the NHS, local councils Everimpact uses a combination of on-the- and other public sector customers (see box). Powering breakthrough cut carbon carbon-cutting technology ground sensors, satellite data and artificial IoT is one of the most promising next-generation for the public sector intelligence to monitor air quality and carbon More and more, our products, technologies. It enables customers to get emissions. The results, transmitted via a smart services and infrastructure are real-time information from machines and objects The UK aims to be a net zero emissions economy city dashboard, enable local councils to target helping homes, businesses and like sensors to help them make their operations by 2050 and the public sector has a big role to measures effectively to reduce air pollution and more efficient. Engineers at our IoT centre of play. Hundreds of local councils and NHS Trusts climate impacts. public sector organisations cut excellence are inventing solutions for sectors like already use our services. We’re looking for new We’ll help both businesses grow and expand their energy, fuel use and logistics, housing and transport. Climate is not the ways to support their journey to net zero through positive impacts by offering their services to only focus. We’re also supporting air quality emissions. our green tech innovation platform. interested customers. For iOpt, we’ll provide monitoring (see page 33). We’ve teamed up with Silicon Valley’s Plug and network connectivity and manage the sensor This year alone, around £5.3bn (25%) of our Play to find businesses with breakthrough installations. Everimpact will install their tech in Challenging consumers to try living smarter revenue came from carbon-cutting solutions – carbon-reducing solutions. Plug and Play is a our Street Hub units, payphone kiosks and platform that connects entrepreneurs, CCTV sites to provide insights for local councils. from teleconferencing and cloud storage We see enormous untapped potential for our companies and investors to promote innovation to smart manufacturing and Internet of customers to use tech to save energy, money and Using our reach to commercialise emerging worldwide. Together, we’ll help them scale up to Things (IoT) technology. carbon at home. Research by the environmental green tech is a win-win for our company, our drive progress towards a green economy. And we’re going further. Our ambitious plans to charity Hubbub found that two-thirds of UK customers and the environment. We’ll welcome bring full fibre broadband to 25m premises and households do not use any smart tech to help In January 2021, we announced our first two more innovation partners soon, including those boost 5G mobile will support more homeworking, manage their homes. And four in ten (43%) scale-up partners: Glasgow-based iOpt and with solutions for the health sector. The Carbon 1 smart cities and next-generation carbon- think it would be expensive . Paris-based Everimpact. Trust will help us measure the carbon savings from each partnership. reducing technologies. To bust this myth, we launched a pioneering iOpt uses sensors connected by the Internet of experiment with Hubbub to show how smart tech Things to provide remote, real-time information Expanding technology frontiers and savings can go hand in hand. We asked c.60 and alerts on things like energy use and moisture levels in buildings. Their technology can help households – including 30 of our colleagues and Seena Amedi We’re already testing new smart and remote their families, the majority of the others are BT councils take steps to improve energy efficiency, Managing director, technology solutions with a range of customers. customers – to experiment with digital technology. cut maintenance costs and eliminate damp or Plug and Play Tech Center Telemedicine offers big benefits for patients, 55 took part, and the aim was to see which gadgets mould. This in turn makes homes healthier and medical staff and the climate. Remote work best for them to reduce their energy use and helps to prevent fuel poverty by reducing energy Plug and Play are proud to work with consultations save time and emissions from travel bills from heating, hot water and lighting. costs for tenants. BT alongside some of Europe’s most – and help to avoid contact during Covid-19. Each household received a £50 voucher to spend promising high growth tech We’re testing solutions with University Hospitals on products like smart thermostats, lights or companies, searching for innovative Birmingham, the UK’s biggest NHS Trust. This plugs. And we also offered tips and practical solutions and business models to year, doctors trialled our remote diagnostic station support. We’ll share the results to encourage support the transition to net zero. technology using digital stethoscopes and heart more of our consumer customers to give smart monitors over a converged 4G/5G and wi-fi home tech a try. We look forward to working together network. The Trust is now considering the to explore, test and scale technology for GP surgeries, care homes and technologies from the world’s community clinics. brightest start-ups that can propel us into a more sustainable society.

1 Data from poll of 3,000 people conducted by Censuswide.

29 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Measuring how we help customers cut carbon Mitigating and Understanding physical risks Fortifying our operations Last year, we achieved our 3:1 target a year early Our strategic weather resilience programme aims We focus climate adaptation measures on by helping customers save three times as much adapting to climate risk to futureproof our UK estate by monitoring and high priority assets that serve larger volumes carbon as our own end-to-end emissions. The impacts of climate change are mitigating risks from extreme weather events like of customers. This year, we continued flood heatwaves, storms and heavy rainfall. This year, protection works and cooling systems upgrades To track progress against this goal, we’ve worsening. We’re working hard to we considered our vulnerability to heat, flooding at key sites. And following a successful trial last previously calculated and reported the emissions reduce our emissions and prevent and lightning strikes as part of our TCFD scenario year, we’re using drones to inspect roofs and our customers save from using products and planning. gutters for signs of deterioration where needed. services that we’ve identified as carbon-reducing. further global warming. But we Last year, this totalled around 13m tonnes of CO We share details on potential threats to our UK 2 also need to adapt to the reality of Rapid emergency response emissions avoided, compared with our own a changing climate. assets through daily risk reports and we’ve end-to-end emissions of 3.7m tonnes. launched an online dashboard to keep relevant Extreme weather is on the rise. This year parts of the business informed. Alert warnings The way people live and organisations work online saw a summer heatwave, floods and several We’ve explored the risks and opportunities to enable our teams to protect vital equipment and has changed significantly over the last few years significant storms across the UK. our business across a range of future climate prepare for potential outages. During the summer – and even more so during the pandemic. We have scenarios and we report these in line with TCFD heatwave in 2020, we pinpointed over 700 rooms When the weather threatens our colleagues, commissioned research that will provide recommendations (see box). Making sure we’re at risk of overheating to enable targeted property or services, we deploy emergency information on the role some of our solutions can prepared for the effects of more extreme weather mitigation measures. This year we have continued response teams and resources to help protect have in a net zero emissions world. is essential to avoid disruption to our networks to invest in cooling system upgrades designed to those most at risk. Pumps, flood barriers and other and our customers. prevent damage to our network sites, including a emergency equipment are ready and waiting at further £21m in adiabatic systems. We’re also our network of flood hubs across the country. trialling improvements to our flood risk alert This year, our emergency response teams 13m tonnes Climate-related service at 5,000 of our assets. responded to over 30 incidents related to severe Our telecoms networks are critical to the UK’s weather events. We train them on a wide range of of CO2 emissions financial disclosures national infrastructure. We are working with the scenarios, from accessing flooded sites by boat to avoided in 2019/20 We’re committed to fully implementing the Environment Agency to better understand where setting up temporary satellite communications. recommendations of the Task Force on our network sites across England may benefit We ran more frequent but smaller scale training Climate-related Financial Disclosures from its National Flood Risk Capital Programme exercises this year in line with Covid-19 guidance. (TCFD). This is our second TCFD disclosure. 3:1 activities. We’re also working with Waterscan, our We also work with others to enhance national wholesale water partner for England, to develop goal met one year early This year, we conducted a climate emergency response measures through the an asset risk register from utility water sources, governance review based on the World Electronic Communications Resilience and another essential national service. Economic Forum’s Principles for effective Response Group that we chair. This year, we £5.3bn climate governance on corporate boards. focused on keeping vital communications of our revenue came from We also continued our climate change infrastructure running throughout the scenario analysis work to understand the Covid-19 pandemic. carbon-cutting solutions potential financial impacts of climate this year change to BT in 2030 and 2050. Read our TCFD disclosure in our Annual Report and Appendix.

30 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We use specialist contractors to deal with Flash flooding, Supporting hazardous waste responsibly. This year, we Router returns reap fast response a circular economy introduced an app to help our engineers identify hazardous waste and simplify environmental benefits When summer flash flooding threatened an regulatory reporting. We support the transition to a We want to show customers the exchange in Edinburgh, our local emergency circular economy to reduce waste Through our partnership with N2S, a technology difference they can make by returning response team was quick to mobilise. lifecycle management company, we recovered unwanted equipment to motivate them to Colleagues deployed pumps, a generator and and preserve valuable natural 257.5 tonnes of legacy equipment and cable from return more. We’ve been working with The an emergency communications centre to resources. We’re targeting zero our exchanges this year, avoiding landfill. From Carbon Trust to calculate the environmental manage the immediate impact and get our waste to landfill, encouraging this, 257.3 tonnes was recycled and 0.2 tonnes benefit of product returns. In 2020, network back up and running. customers to return equipment for reused, avoiding an estimated 414 tonnes of CO2e refurbishment of home hubs and set-top emissions. We also used N2S’s newly developed boxes avoided 11,400 tonnes of CO e, Since then, we’ve conducted surveys of 2 reuse and recycling, and cutting refining process which uses bacterial bioleaching 168 tonnes of waste electronic equipment underground drains and identified specific down on plastics. technology to recover gold from printed circuit and 160 tonnes of plastic. building improvements – at this site and at boards. others in similar situations – to reduce the risk of flooding causing problems in the future. Eliminating waste to landfill Encouraging customers to return Our internal waste management policy promotes electronics for reuse and recycling a culture of continuous improvement as we work towards zero waste to landfill. We’re now Electronic waste is the world’s fastest growing developing a waste action plan to translate that domestic waste stream. We aim to minimise the policy into practical measures to help us get there. amount of materials used in our products and make them easy to return, reuse or recycle. We produced nearly 33,000 tonnes of waste worldwide this year, 19% less than last year. We encourage and incentivise customers to This reduction is mainly as a result of less office return products for recycling or refurbishment. EE and catering waste, as many of our colleagues offers a Trade In scheme, and BT customers must worked from home due to Covid-19, and our return home hubs and set-top boxes at the end of divestments. We recovered or recycled 98.9% of their contract to avoid incurring a fee. In 2020, we this waste – 99.6% in the UK – and we’re refurbished or recycled around 700,000 home continually looking for ways to recycle more; for hubs and set-top boxes, and worked with The example, Openreach is exploring ways to recycle Carbon Trust to calculate the environmental blue plastic rope, which is used to draw cables benefit (see case study). through ducts. To help customers get the most out of their devices, we now offer a same-day or next-day repair service at selected EE stores, and we’ve also launched a wireless diagnostic tool Fix My Device to identify and resolve issues with mobile devices or software.

31 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Getting drastic on plastic Managing We also encourage colleagues to help us manage Game Changing environmental impacts by changing their Our plastics policy includes our goal to ensure that environmental impacts behaviour. This could be cutting use of single-use 100% of the plastic packaging we procure and Challenge plastics, recycling more or collaborating virtually send to customers can be reused, recycled or to avoid unnecessary business travel – a trend that Our Game Changing Challenge invites We aim to lead by example in the composted by the end of March 2025. It also has increased as a result of Covid-19. commits us to recycling more of the plastics we suppliers to come up with innovative solutions way we manage environmental use in our own operations. to environmental questions. This year, we risks and minimise our impacts. focused on the circular economy – asking for This year we have been working to baseline our innovation on anything from plastic-free We can make the biggest BT Sport reduces plastics footprint. In 2020 we used 547 tonnes of packaging to new business models or radical difference by tackling climate production impacts plastic packaging to deliver products to our product redesign. This year’s winner was change and supporting a circular customers. We identified areas of plastic use Thales, who proposed an eco SIM card made economy. But we also pay close BT Sport uses remote broadcasting to where data is not currently available – we will from 100% recycled plastics which is both limit the number of people sent to outside refine our model as more data becomes available highly sustainable, being made from recycled attention to our impacts on broadcasts and reduce related environmental over time. plastic, and delivers a 30% reduction in the air pollution, biodiversity and impacts. Our football Premier League 12:30hr A further 113 tonnes of plastic was avoided SIM card carbon footprint. This meets water use. kick-off games have achieved the albert through engaging suppliers, engineers and a number of BT’s key sustainability certification for sustainable production, operations teams in plastic reduction initiatives. objectives around the circular economy, which recognises actions taken to reduce reduction in single-use plastics and carbon Our Group-wide policy and environmental production carbon footprints – and we’re We’ve developed packaging principles for BT and footprint reduction. management systems (EMS) guide our working towards certification for our other EE consumer devices in line with our environment approach to risks and impacts, support programming. BT Sport’s directorate policy. These include moving to plastic-free continual improvements and help us comply membership of the albert initiative helps fund Emmanuel Unguran packaging. Alternatives include cardboard with relevant regulations. sustainability training and resources for the film Senior vice president of mobile packaging printed with soy-based inks and and television industry. compostable bags made from materials like connectivity solutions at Thales Our EMS in Belgium, France, Germany, Ireland, potato starch. Italy, the Netherlands, Spain and the UK are The Game Changing Challenge process certified to ISO 14001:20151. The EMS in Spain Our suppliers play a big role in the amount and run by BT perfectly fitted Thales’ is also certified to the EU Eco-Management and type of plastic used in our products, packaging responsible approach and its determined Audit Scheme. Our energy management systems Managing environmental risk and operations. To help guide our procurement in Germany and the UK are certified to ISO 50001. action in terms of sustainable choices, we ask suppliers about their use of We publish UK certifications on our website. Our environmental management and governance single-use plastics in a questionnaire related to development and eco-designed solutions. group (EMGG) oversees our approach to our environmental impact standard. We were delighted to take part and We include environmental and sustainability environmental risk management. It’s chaired by collaborate with BT and honoured that BT considerations in our plans for new buildings as our chief technology officer and made up of senior We also ask colleagues to help us cut down on part of our Better Workplace Programme. chose our eco-SIM card as its 2020 winner. leaders from across the business. The EMGG the amount of single-use plastics we use, Examples include providing electrical charging particularly in areas such as catering. We’ll This innovation, less plastic, even for reports regularly to our Executive Committee stations and recycling points, or using district and receives quarterly updates from our promote this further as more colleagues return something as small as a SIM card, is a plus heating. We’re also working towards BREEAM to the workplace. environmental management compliance for the planet and responds to strong Excellent certification for our new buildings in steering group. demand from consumers for products Birmingham, Bristol, London and Manchester. with a controlled carbon footprint.

1 Brazil and Colombia were certified until October 2020, when these operations were divested.

32 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Climate change poses the most significant Minimising water use Nurturing biodiversity Ensuring environmental compliance environmental risk to our business and we align our reporting with TCFD recommendations (see Our water use decreased by 25% this year to Supporting a healthy natural environment We always aim to comply with relevant page 30). We also monitor and manage a range of 1.4m m3. This reduction is, in part, due to lesser is essential to prevent biodiversity loss, a environmental legislation for our operations and other operational environmental risks through our demand, as colleagues worked from home due to significant global issue with strong links to climate products. This includes making sure our products EMS, including the potential for leaks of fuel or Covid-19, alongside our work to reduce leakages change, water use and pandemics. We use our and any electrical or electronic equipment sold to fluorinated greenhouse gases. across our operational sites. EMS to help us manage biodiversity impacts and our UK business comply with regulations on waste we monitor wildlife-related incidents or risks at electrical equipment, hazardous substances, Switching to Water Self-Supply our sites. chemicals and packaging. Tackling air pollution (waterselfsupply.com) enables BT to achieve complete control over water consumption and Our internal natural environment policy captures If any issues occur, we work with the relevant Maintaining good air quality is vital to the health of cost by dealing directly with wholesalers, ensures our long-term vision to enhance biodiversity authorities to resolve them. our colleagues, customers and communities. accuracy in billing, and gives BT the opportunity to across all our sites. This year, the pair of peregrine We aim to meet our commitments under the We’re transitioning to electric vehicles that help engage in the market. Making this switch had falcons at our site bred successfully Environmental Protection Act 1990 and the Clean cut carbon emissions and reduce pollutants from saved us over £0.6m and contributed to over again. And we began planting trees at our Neighbourhoods and Environment Act 2005. In combustion engines (see page 26). 473,000 m3 reduction in consumption this year, Henbury exchange to support Bristol City one case this year, we failed to react in a timely through price and water savings. Council’s target to double tree canopy coverage. We’ve also continued working with our customers manner and received a community protection to use IoT solutions to improve air quality and And we’re partnering with the University of Stirling notice, relating to complaints about unkempt wider environmental management. Our sensors on a state-of-the-art system to monitor water Managing fuel storage risks grounds at one of our telephone exchanges. are helping local authorities in Suffolk to monitor quality and flood risks across the Forth Valley. We’ve liaised with the respective council air pollution and target action to improve air We use diesel generators to keep our customers to address the issue and comply with the quality and reduce flood risk. We’re partnering connected in remote locations and as back up notice served. with Belfast Harbour on a 5G project to make the during power cuts. To fuel these generators, we harbour estate more sustainable, including have more than 6,500 fuel storage tanks across This year has seen an increase in littering and fly placing air quality sensors around the harbour to the UK. We monitor, maintain and upgrade these tipping across the UK. We received a number of monitor nitrogen dioxide and particulate matter. tanks, and train colleagues and suppliers, to complaints about littering at our roadside cabinets minimise risk of spills or leaks. and we’ve worked with our engineers and And we’re redesigning our next-generation 3 payphones, or Street Hubs, to include air quality contractors to reinforce the need to remove 473,000m If there’s a spill, we use specialist contractors to all waste created by their activities. monitoring capabilities. water saving this year make sure it’s cleaned up carefully. We report any Our green tech innovation platform (see page 29) major leaks to the regulator, but no incidents at BT partners are also tackling air pollution. iOpt’s sites have been subject to investigation or legal smart buildings IoT platform enables real-time £0.6m saved proceedings from any of the UK regulators for information on issues such as damp and mould several years. that can affect internal air quality, while through moving to Everimpact’s street-level environmental Water Self-Supply monitoring systems include air quality as well as CO2 sensors.

33 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Investors, customers and governments are increasingly looking to the environmental, social and governance (ESG) Being credentials of businesses to inform their choices. We’re meeting the challenge through our increased focus on transparent reporting and strong governance. Listening transparent and to all of our stakeholders keeps us focused on what matters and accountable for our actions. External recognition accountable. CDP EcoVadis We kept our place in the A list Gold rating for the 8th year in a row (top 3% of 9,500 global reporters) and FTSE4Good the Supplier Engagement Leaderboard Confirmed member of (top 7% for supplier engagement on the Russell FTSE4Good index climate change) ISS-ESG Clean200 Prime rating for ESG Listed as a company that’s leading the way Simon Lowth with solutions for the transition to a clean MSCI Chief Financial Officer energy future, for the second year AA rating for ESG investment risk and opportunities Corporate Knights Global 100 Most sustainable telecoms Sustainalytics company in the world and 35th Top quartile of global telecoms most sustainable company overall companies and low ESG risk score EcoAct Tortoise Responsibility 100 2nd in the UK FTSE 100 and 4th globally 2nd in the UK FTSE 100 and Our investors have always expected transparent best telecoms company communication about our financial performance. We’re also seeing this expectation growing in relation Vigeo Eiris Top quartile amongst European telcos to our environmental, social and governance aspects, In this section and we welcome this shift. Transparent reporting is a crucial factor in understanding business success, and 35 Engaging with stakeholders 38 Acting with integrity we’re committed to leading the way by openly sharing our progress and challenges with all our stakeholders. 36 Identifying our priorities 39 Disclosing policies 37 Governing digital impact and performance and sustainability

34 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Engaging with Partnerships with NGOs play a central role in our programmes, such as SfT (page 10). We also Engaging investors on ESG stakeholders participate in wider debates and partnerships to seek a broader perspective on global issues, and In November 2020, we hosted a virtual business Around 50 people attended, including several By engaging closely with to contribute our influence, expertise and briefing for investors and analysts, focusing on key investors. The recording of the event has stakeholders, we are better able experience to drive positive sustainable change. the three pillars of our DI&S strategy and sharing since had over 250 views and the slide Examples, mentioned throughout this report, to understand their evolving our efforts to help more vulnerable customers presentation has been downloaded more than include futuredotnow (see page 10), Tech Against and support our workforce. 350 times. This briefing is part of our ongoing expectations, inform our strategy, Trafficking (see page 22) and with The Climate programme to engage with investors and The event was led by our chairman, Consumer and share our plans and progress. Group, on the UK Electric Fleet Coalition (see analysts on our ESG objectives and performance. page 25). CEO, HR director, corporate affairs director and director of digital impact & sustainability. For deeper dives on specific topics, we work with Our Annual Report outlines how we engage with Two non-executive Board directors, including partners to find out what our stakeholders think. each stakeholder group, what they expect of us the chair of the Digital Impact & Sustainability For example, this year we worked with Demos to and the outcomes of this engagement. We’re Committee, also contributed. survey members of the public about their views on seeing increased interest across the board in our responsible tech and online harms (see page 23). ESG activities and performance. We also conducted surveys to understand public Dialogue is a natural part of how we support our perspectives on topics related to building better customers and work with colleagues. We reach digital lives, particularly in the context of the out for specific feedback through customer Covid-19 pandemic. surveys and our Your Say colleague survey (see box). We meet regularly with investors and analysts, Listening to our colleagues and this year held a briefing for them specifically on our digital impact and sustainability strategy We ask colleagues for their views on what it’s (see box). like to work at BT through our Your Say survey. We also have regular interactions with In January 2021, around 85% of our government, regulators and our suppliers. Our colleagues responded to the survey (the focus on bridging the digital divide to tackle same response rate as last year). economic inequality, addressing online harms, Engagement remains strong at 80% (up from and tackling climate change, supports the UK 79% last year). Understandably, in a turbulent government’s ambitions (see page 6). And we’ve year we saw overall wellbeing (satisfaction played an essential role in getting the nation with life) decline slightly to 69% (from 71% through the Covid-19 crisis (see page 7). With the last year). However, 83% feel positive about introduction of new social value criteria for public the way BT has supported them through the procurement, this also means we’re well placed to pandemic and 80% feel BT is a place where win government work. Working closely with our they can thrive. suppliers, we’re better able to manage risks and identify opportunities to positively contribute in We’re using the results to help us learn and areas such as climate change. improve.

35 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We look at which issues matter most to each of Identifying our key stakeholder groups, comprising of our aterialit analsis ost material our priorities colleagues, customers, investors, suppliers,

government and regulatory bodies. We also g i Each year, we refresh our consider the impact of each issue on our business based on potential risks and opportunities. We use assessment of the sustainability the results to inform our strategy and reporting for issues that are most material to the year ahead. our business and our stakeholders. Our analysis this year showed that our most We assure our approach against material issues remain broadly consistent with those reported last year. Customer experience,

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seen both economic impact and health, safety i senior BT colleagues who represent key i and wellbeing rise in significance for stakeholders n g stakeholder groups and participate in wider i and the business. Stakeholder interest in business industry collaborations, as well as a range of ethics has also increased. surveys, reports and studies. e t a

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ess impact olic Topics covered in I report TargetI Topics covered in nnual eport rincipal risk 36 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Governing DISC meeting attendance Accountability Managing risk Meetings We believe that single-point accountability We take a consistent approach to addressing digital impact and Members Eligible to (as at 31 March 2021) attend Attended supports good governance. Our chief executive the risks and uncertainties affecting our business. sustainability Leena Nair (chair) 4 4 Philip Jansen takes strategic decisions, exercising This year, we designed and launched a new risk delegated authority from the Board. Our management framework to support our journey Strong governance structures Jan du Plessis 4 4 Executive Committee (ExCo) assists the chief to be the world’s most trusted connector of help us put our DI&S strategy Isabel Hudson 4 4 executive to: people, devices and machines. The framework strengthens our foundations and helps leaders Mike Inglis 4 4 – develop group strategy and budget into action. make the right choices by supporting a risk-smart 1 for Board approval Sara Weller 3 2 culture. See our Annual Report for more information, including how ESG risks in areas such Our Board-level Digital Impact & Sustainability 1 Joined the committee on 16 July 2020. Sara did not attend one – execute the strategy once the Committee (DISC) oversees the strategy and meeting due to a previous commitment which was declared Board approves it as climate change and human rights are picked up prior to her joining the Board. under the risk framework. tracks progress towards our ambitions. The DISC – give assurance to the Board on overall is made up of independent non-executive performance and how we’re managing risks. We are committed to fully implementing the directors and the chairman. Leena Nair, the chair The DISC met four times this year (see table of TCFD recommendations on climate-related of the DISC, reports to the Board on the attendance). All meetings were held virtually in Additionally, the ExCo creates and communicates financial disclosures – this is our second disclosure. committee’s activities. The HR director, corporate light of Covid-19 restrictions. The committee our vision, and sets the tone for our organisation, They are an important step towards enabling a net affairs director, and director of digital impact & reviewed and discussed: culture and colleagues. The director of digital zero carbon economy and for managing the sustainability also attend all meetings as invitees. impact & sustainability met with the ExCo during – progress on our Skills for Tomorrow programme future impacts of climate change on our business. The company secretary or her appointed delegate the year to discuss our approach to responsible attends and acts as secretary to the committee. – the introduction of our responsible tech tech as a key element of our DI&S strategy. See our report Appendix for our TCFD disclosure, strategy and principles Decisions about human rights and stakeholder which is also published in our Annual Report risks are now delegated by our chief executive to alongside the risk section. – progress on our climate strategy, carbon our corporate affairs director. reduction commitments, climate risks and opportunities, our efforts to address the TCFD In April 2020, we integrated sustainability into recommendations, and programmes and everyday business decisions by adding DI&S goals activities in place to manage risk within our relating to our digital skills ambition and carbon supply chain emissions reduction into our suite of group KPIs. Performance on these goals forms part of our – our approach to understanding stakeholders’ reward approach for all eligible colleagues, priorities and identifying our material issues, contributing 10% of the overall bonus (see our and how this is reflected in strategy, external Annual Report). disclosures and stakeholder engagement. For more information on governance, see our Annual Report or our website.

37 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

We ask colleagues how we’re doing on ethical Acting on improper behaviour Addressing compliance issues Acting with integrity issues through our annual Your Say survey. This We ask anyone working for, year, 93% agreed that we do business ethically We want to make sure that anyone with an We don’t always get things right. When we get (the same as last year), 86% agreed they felt able ethical concern feels comfortable and safe things wrong, we’re committed to being open with or on behalf of BT to share to speak up (the same as last year) and 84% to raise it with us. about it and learning from our mistakes. our purpose and values – and agreed they felt comfortable raising risks in BT Colleagues can report issues or ask questions In December 2020, found that make the right decisions every day. (compared with 85% last year). through our Tell Us intranet page. Our BT Group failed to provide information to independently run Speak Up helpline is there for telecommunications company eir related to colleagues, contractors, agency workers and Fibre on Demand on an equivalence of inputs Setting clear expectations 86% suppliers anywhere in the world. Anyone can use basis, compared with BT. This related to the Our ethics code – The BT Way (bt.com/ethics) – of our colleagues agreed the helpline to report concerns confidentially and, bidding process for a public sector fibre contract guides how we do things. We require all where local laws allow, anonymously. in Northern Ireland in 2018. We cooperated with they felt able to speak up and accepted Ofcom’s findings, settling with them colleagues to complete annual training on the We’ve added more detail to our Speak Up 1 to pay a fine of £6.3m. We have already put code and 97.4% did so this year. guidance this year. It now includes types of measures in place to prevent this happening concerns people can raise and explains how we We don’t tolerate any form of bribery or 93% again. Ofcom recognised that these errors weren’t get to the root cause of any issues. We review corruption, and colleagues must report any agreed that we do deliberate and that we took a number of steps to every concern raised and investigate further conflicts of interest. Our anti-bribery and comply with the regulatory obligations. Ofcom business ethically whenever we’re given enough detail to do so. corruption standard and annual ethics training did not find any impact on the outcome of the Follow-up actions can include coaching or reinforce these messages. Colleagues working tender process. in higher risk environments or roles go through training, disciplinary procedures, or improvements extra training on anti-corruption every other Doing the right thing, to our policies or practices. In July 2020, the Openreach Commitments Monitoring Office (CMO) investigated a year – 23,738 colleagues completed this during right now People raised 491 concerns this year, 17% less complaint from an alternative network provider, the year. than last year. The number of reports fell during alleging that Openreach had not responded to a Our global ethics day this year focused the first UK lockdown, but rose again later in the This year, we added new courses for colleagues request for pricing for a fibre product. The CMO on how to behave ethically and comply year. The Covid-19 pandemic caused a delay to in contact centres and retail stores, and for found that Openreach did not provide a written with our ethics code throughout the some investigations that needed site visits. Openreach engineers. They take people through challenges of the Covid-19 pandemic. pricing quotation due to a combination of process a range of scenarios that they might face in their The theme was how to do the right thing, We took further action on 35% of the cases we weaknesses, misunderstanding and everyday work and ask them to consider right now. Topics included using social closed. The rest were unsubstantiated, miscommunication, and not as a result of “Is it OK?”. media and calling out wrongdoing in duplications, follow-ups to existing cases, or deliberate intent. In September 2020, the We’re developing a new course for executives a virtual environment. redirected to more appropriate reporting Openreach Board Audit, Risk & Compliance based on the risks they’re most likely to face. And channels. This year, we disciplined 178 colleagues Committee decided there had been a serious we’re preparing our managers for specific training as a result of ethical misconduct and 76 left BT. breach of the Commitments in relation to equal courses by asking them questions on key themes. treatment for all customers, and agreed remedial This year, we asked over 26,500 managers to actions which Openreach are now implementing respond to challenging questions about reporting to minimise the potential for a similar issue to arise homophobia, more than 4,500 about conflicts of in the future. interest and nearly 21,000 about registering gifts.

1 Excludes those on maternity, paternity, long-term sick leave or with other extenuating circumstances.

38 BT Group plc Digital Impact and Sustainability Report 2021 Introduction Building better digital lives Championing responsible Tackling climate change and Being transparent Return to contents tech and human rights environmental challenges and accountable

Frameworks and standards Paying our taxes Disclosing policies Independent assurance We report in line with a range of recognised We’re committed to managing our tax affairs and performance external frameworks and standards: Our digital impact and sustainability responsibly, ethically and with integrity – We strive to meet growing reporting is independently assured to including paying our fair share. We believe we – Global Reporting Initiative: Core option AccountAbility’s AA1000ASv3 accounting must contribute fairly through the tax system expectations for transparency – UN Global Goals standard. Read the independent assurance to the economies and societies where we on sustainability topics. statement for this report. operate. – ISO 26000 standard Read more in our Appendix. – Climate Disclosure Standards Board framework We describe our approach in our tax strategy. This report describes our approach and This year, we paid £229m in corporation tax performance on the key pillars of our DI&S – Sustainability Accounting Standards Board and the One Hundred Group 2020 Total Tax strategy. More information on these and other (SASB) Contribution Survey ranked us the fifth material topics is available in the other reports, highest contributor in the UK. disclosures, indexes and policies listed below. – Task Force on Climate-related Financial Disclosures (TCFD) Read more about our tax strategy in our Annual Report. Reports and disclosures – UN Global Compact Relevant disclosures are referenced in our DI&S – Annual Report Report Appendix. – Digital Impact and Sustainability Report Appendix Policies

– Gender Pay Gap Report Our ethics code – The BT Way – guides how we do things at BT. Accompanying policies and – Modern Slavery Statement (including conflict standards (bt.com/ourpolicies) cover topics minerals reporting) such as: – Privacy and Free Expression Report – anti-bribery and corruption – Tax strategy – gifts and hospitality – Colleague data sheet – human rights – Environmental data sheet – health, safety and wellbeing Additionally, in early summer 2021 we plan to – environment publish our Diversity and Inclusion Report, which will include our first voluntary reporting of our ethnicity – plastics pay gap. – privacy – shared value – vulnerability We also extend our expectations through policies and standards for suppliers.

39 BT Group plc Digital Impact and Sustainability Report 2021 © BT Group plc Registered office: BT Centre, 81 Newgate Street, London EC1A 7AJ Registered in England and Wales No. 4190816 Produced by BT Group plc bt.com