SUSTAINABILITY REPORT 2016 TABLE OF CONTENTS LETTER FROM THE CEO ...........................................................................................................................................3 KEY OPERATING STATISTICS OF MAGYAR TELEKOM GROUP .................................................................................... 57 OUR APPROACH ......................................................................................................................................................5 ASSURANCE STATEMENT .......................................................................................................................................60 CORPORATE STRATEGY .....................................................................................................................................................................................5 GRI CONTENT INDEX .............................................................................................................................................. 61 SUSTAINABILITY APPROACH .............................................................................................................................................................................5 BE SMARTER – SUSTAINABILITY STRATEGY (2016 – 2020) .......................................................................................................................6 COMPLIANCE WITH THE PRINCIPLES OF THE UN GLOBAL COMPACT ........................................................................ 81 MATERIALITY ..........................................................................................................................................................................................................7 STRATEGIES AND POLICIES RELATED TO OUR SUSTAINABILITY APPROACH ....................................................................................8 LIST OF ABBREVATIONS ......................................................................................................................................... 82 STAKEHOLDERS .................................................................................................................................................... 10 IMPRESSUM ..........................................................................................................................................................84 1. CLIMATE AND ENVIRONMENTAL PROTECTION .................................................................................................... 17 1.1. Climate protection and energy efficiency ................................................................................................................................................18 1.2 Resources management .............................................................................................................................................................................19 1.3 Emissions ...................................................................................................................................................................................................... 22 1.4 Environmental objectives, costs and compliance ................................................................................................................................. 23 2. RESPONSIBLE SERVICE ..................................................................................................................................... 24 2.1 Closing the digital divide ............................................................................................................................................................................ 25 2.2. ICT for sustainability .................................................................................................................................................................................... 27 2.3 Innovation for sustainability ....................................................................................................................................................................... 28 2.4 Protecion of our children in the digital age ............................................................................................................................................. 29 2.5 Data Protection ............................................................................................................................................................................................ 30 2.6 Safe use of mobile phones, electromagnetic fields ...............................................................................................................................31 3. SUPPLIERS .......................................................................................................................................................33 4. CUSTOMER RELATIONS ..................................................................................................................................... 37 4.1 Customer satisfaction ................................................................................................................................................................................. 38 4.2 Customer Complaint Management .......................................................................................................................................................... 39 4.3 Involvement of our customers ................................................................................................................................................................... 40 5. EMPLOYEES ..................................................................................................................................................... 42 5.1 Human rights, equal opportunities ........................................................................................................................................................... 43 5.2 Involvement of employees.......................................................................................................................................................................... 46 6. SOCIAL ENGAGEMENT ......................................................................................................................................48 6.1 Community investment ............................................................................................................................................................................... 49 6.2 Our employees as corporate citizens ........................................................................................................................................................51 6.3 Sponsorship ................................................................................................................................................................................................. 52 7. CORPORATE GOVERNANCE ............................................................................................................................... 54 7.1 Sustainability coordination ........................................................................................................................................................................ 55 7.2 Regulatory complianc ................................................................................................................................................................................. 56 7.3 Corporate compliance ................................................................................................................................................................................ 56 LETTERS FROM THE CEO 3 TABLE OF CONTENTS LETTER FROM THE CEO DEAR READER, The Sustainable Development Goals adopted by the United We were recognized by Trucost, and have been part of the Nations’ member states in September 2015 for the years through CEERIUS (Central and Eastern European Responsible Investment 2030 set forth the building blocks of our shared, sustainable Universe) index from the beginning. Based on our commitment to future. Besides NGOs and governments, businesses also bear sustainability, we report every year to the CDP (Carbon Disclosure great responsibility when making the decisions relevant to their Project) independent analyst organization, too, which is investments, business policies and growth strategies. In my monitored by investors representing 100 trillion USD. capacity as CEO of Magyar Telekom Group, I am proud that hav- ing completed our second 100% carbon-neutral year of opera- One of the greatest professional challenges we faced in 2016 tion, we successfully address the above challenge, too. was to elaborate and launch our fourth five-year Sustainability Strategy. We have set the goals set forth by the strategy along Being a service provider to 8 million Hungarian customers the principles laid down by the above-mentioned UN Sus- and a large corporation of almost 10 000 employees, we are tainable Development Goals. The present document gives a especially responsible for exploiting our state-of-the-art in- summary of the first year’s achievements in the 2016–2020 stra- novative solutions with the purpose to make their everyday lives tegic period, as well as how we performed along the principles connected, livable and easier, as well as to diminish the divide in defined by the UN Global Compact. space and time, between skills and societal disadvantages. The main objective of the fourth Sustainability Strategy