China Mobile Limited 2012 Sustainability Report China Mobile: Enabling a Better Life China Mobile Limited 2012 Sustainability Report Connecting Us to the Future China Mobile Limited Registered Address: 60/F, The Center, 99 Queen's Road Central, Hong Kong Website for Report Download: www.chinamobileltd.com All copyrights reserved. No reproduction by any means is allowed without acknowledgement. This report is printed on environmentally friendly, totally chlorine-free paper CHAIRMAN’S STATEMENT Connecting Us to the Future Chairman’s Statement Chairman’s From the very first mobile phone call made from Guangzhou in 1987, to Chinese mobile phone users surpassing 1.1 billion in 2012, we have seen immense chance in only 25 years. With the evolution from communication among people to communication between people and things, and even among things, the historic progress of “Mobile Changes Life” is redefining future social lifestyles, and is having a profound influence on the trajectory of the telecommunications industry. The evolution of voice to data services, as well as communication services to a range of applications based on mobile internet, cloud computing and the Internet of Things, is also forcing Mr. Xi Guohua business to adapt and revamp existing development protocols, Chairman, China Mobile Limited organisational mechanisms and management patterns. At the same time, our customers are expecting to enjoy more We inherently believe that a company should leverage its core carefree service and achieve more possibilities by using mobile competence and take its responsibility to contribute to its technology. Employees are demanding greater career and professional stakeholders and the greater society. As such, we are committed development opportunities, to enable the realisation of individual to ensuring the realisation of our vision of “Mobile Changes value and self-fulfillment through meaningful work. Communities Life”, and the promotion of new technology such as TD-LTE. We hope to share and take part in a company’s development actively strengthen infrastructure development and organisational achievements, including fair development for disadvantaged groups, transformation for the future, as well as initiate the development and meaningful progress toward an eco-friendly civilisation. of start-ups and innovations. Building on these efforts, we have promoted the construction of the Wireless City and developed In line with the profound industrial revolution of “Mobile Changes innovative applications to improve social and professional lifestyles, Life” and with the attention and expectation of our stakeholders, economic efficiency and overall urban quality of life. We are also China Mobile is committed to creating a sustainable future for fulfilling the needs of New Countryside construction through the our company and our stakeholders through transformation and Three Networks for a New Countryside initiative, which is helping innovation. farmers increase their income, as well as promoting agricultural In 2012, we improved our corporate governance, strengthened risk transformation and rural development. management mechanisms, emphasised anti-corruption measures, In 2012, we received extensive positive feedback regarding our social and continued to generate value and positive returns for our responsibility efforts and sustainability performance. Examples include investors. With the steady and healthy growth of our company, we our inclusion in the Dow Jones Sustainability World Index for the fifth have also led partners throughout our supply chains to grow together consecutive year, which is an accomplishment that no other company with us in a socially responsible manner. from Mainland China has managed to achieve, as well as honors such We always pay great attention and actively respond to stakeholders' as the “China Charity Award” and “Sustainability Excellence Award,” requirements to fulfill our responsibilities. We continuously strive to among others. We were also honored that some of our corporate social maintain a reliable network with comprehensive coverage for our responsibility practices have been selected by the United Nations Global customers, address our customers' greatest concerns, and protect Compact to serve as best practices for China. their interests through a range of methods, from the optimisation We will strive to fulfill our economic, social and environmental of tariffs, accurate billing and prompt services reminders to the responsibilities. We believe that in the future, we will constantly strict protection of customer privacy and information security. As strive to improve our operations with integrity and responsibility an employer, we consistently generate fair opportunities for our and improve the transparency of our company. By leveraging our employees, protect their occupational health and safety, support innovative technology and services, we are helping the society their personal development, and actively provide a harmonious become increasingly connected so that, together, we can create and and positive working environment. As a community member, we 2012 Sustainability Report share a better future. fulfill our long-term commitments to support social welfare, and continuously implement key programmes to help alleviate poverty, care for vulnerable groups, promote education development as well as volunteering service, and share our company’s development achievements with a wide range of people within the community. As a responsible company, we work unceasingly to improve our environmental policies, with a specific focus on energy saving and emissions reduction measures throughout the entire life-cycle of our networks, provide green services, and propose the implementation and adoption of energy saving green standards with other social forces. We have also made great strides in leveraging advanced March 2013 Information and Communication Technology to support and promote social emission reductions, to ultimately harmonise corporate, social 01 and environment needs. CONTENTS 01 Chairman’s Statement 30 Creating A Sustainable Environment Contents 30 Optimising Environmental Management Systems 03 Company Profile 31 Managing Environmental Impact 04 Sustainability Strategy and Management 33 Leading Society in Environmental Protection 05 Sustainability Strategy 05 Sustainability Vision and Strategy 34 An Information-enhanced Future 06 Key Sustainability Issues 35 Innovation and Transformation 07 Sustainability Management 35 Innovation Capacity for the Future 08 Stakeholder Engagement 35 Infrastructure for the Future 36 Organisational Reform for the Future 10 A Healthier and More Stable China Mobile 36 International Business Layout for the Future 11 Solid Economic Growth 37 A Rich Wireless Experience 11 Continuously Optimised Compliance Management 38 At Home 11 Corporate Governance 39 Study 13 Anti-Corruption and Sound Governance 40 Healthcare 14 Responsible and Sustainable Supply Chains 41 Travel 14 Shared Growth 42 Work 15 Shared Responsibility 43 Consumption 44 Sharing the Benefits of Informationalisation 16 More Satisfied Stakeholders between Urban and Rural areas 17 Ubiquitous and Caring Services 44 Three Networks for a New Countryside 17 Reliable Network 45 Increasing Income for Rural Residents 19 Reliable Services 46 Transforming Agriculture 22 Fostering Employee Satisfaction through Mutual Growth 47 Developing the Countryside 22 Guaranteeing Employee Rights 23 Employee Professional Development 48 Stakeholder Commentary 24 Work-Life Balance 49 Looking Forward 25 Shared Development Creates Harmonious Communities 50 2012 Sustainability Performance Summary 25 China Mobile Charity Foundation 53 About This Report 25 Development Aid and Poverty Alleviation 54 Independent Assurance Report 26 Caring for Disadvantaged Groups 56 Feedback 28 Supporting Education Development 57 Report Disclosure Indexes 29 Advocating Volunteer Service China Mobile Limited 02 COMPANY PROFILE China Mobile Limited (the “Company” or “China Mobile”, and Limited (“International Company”), and operates nationwide mobile Company Profile together with its subsidiaries, the “Group”) was incorporated in telecommunications networks in all 31 provinces, autonomous Hong Kong on 3 September 1997. The Company was listed on regions and directly-administered municipalities in Mainland China the New York Stock Exchange and The Stock Exchange of Hong and in Hong Kong Special Administrative Region through these Kong Limited (“HKEx”) on 22 October 1997 and 23 October 1997, subsidiaries. respectively. The Company was admitted as a constituent of the Hang Seng Index in Hong Kong on 27 January 1998. As the largest mobile In addition, the Company owns a 99.97% equity interest in China services provider in Mainland China, the Group boasts the world’s Mobile Group Device Company Limited, a 92% equity interest in largest mobile network and mobile customer base.The Company China Mobile Group Finance Company Limited through China Mobile currently has a corporate credit rating of Aa3/Outlook Positive from Group Beijing Company Limited, and a 66.41% equity interest in Moody’s Investor Service and AA-/Outlook Stable from Standard & Aspire Holdings Limited. Poor’s, equivalent to China’s sovereign credit rating respectively. As of 31 December 2012, the Group had a total employees of The Company owns 100% interest in the following major 182,487, a customer base reaching 710 million, and maintained a subsidiaries: leading market position in Mainland China. China Mobile