presentation isabel martinho sustainability ii debate lisbon 2008

Sustentabilidade Empresarial 1

EACD, Regional DebatesLisboa, 4th December 2008

Sustainability approach at Portugal Telecom

Portugal Telecom

“Challenges of Integrated Communications”

Our mission

To provide telecommunications and multimedia services of recognized value to the customers, through a continuous technological innovation, qualified and motivated resources, and with respect to the environment and society

“Innovate, change, improve, is our tradition”


Who we are

• The leading telecommunications services provider in Portugal

• Committed to generate and distribute shareholder value and remaining one of the most solid telecommunications operator.

• Activity covers all segments of the telecommunications sector: fixed, mobile, data and corporate solutions (voice, internet, TV)

• Company with the most number of transactions in Euronext Lisbon

• Quoted on the New York Stock Exchange

• 30.000 employees all over the world

• 65 million customers


• Position PT as a fully integrated provider of telecoms and multimedia.

• Retain leadership and a strong market share of best clients in Portugal, South America and Africa

• Be in the top of the most efficient Telecommunications Operators in Europe

• Attract and retain the best human talent available

• Be sustainable by all means, specially regarding digital inclusion as a way to build a knowledge and environment friendly society.

Our goals



Where we are

And, what we do


Reporting guidelines

Principles, guidelines and indicators that we follow

Organizations and agreements

Indicators and benchmarks

Internal conduct and procedures

PT Code of Ethics

Code of Ethics for Senior Financial Officers

Whistle blowing procedures

Management systems audit and certified according:

INOVAÇÃO


Purpose Keep on creating long term value for all the stakeholders

StrategyImprove the policies and procedures throughall company businesses regarding 3 objectivepoints: triple bottom line

Economical Environmental Social

Our sustainability approach

Sustainability is integrated into business company strategy and totally aligned with sector specifications and needs

Pillars of Sustainability : Economical, Social, Environmental

Implementation of the sustainability strategy through PT companies in Portugal

Sustainability Management through the Sustainability Committee

Assessment and supervision of strategy implementation

Improvement of Social Responsibility enabling the digital inclusion, innovationenvironment friendly options

Identification and alignment with international best practices

Strategic guidelines


Economical level Environmental level Social level

• Corporate Governance

• Risk Assessment

• Codes of Conduct

• Customer Relationship Management

• Brand Management

• Services Development

• Eco - Efficiency

• Environmental Reporting

• Environmentalmanagement system

• Climate Strategy –Energy efficiency andenabling e – services andsolutions

• Employee Policies

• Talent attraction andretention

• Volunteering

• Citizenship / Philanthropy

• Stakeholder Engagement

• Supplier standards

• Impact of Telecom services

• Digital Inclusion

Operating areas

FinancialCommunity

Regulatoryentities

Media

Customers

Suppliers

Employees

Community

Identified Stakeholders


Information

Communication

Relationship

AlignmentCustomers

Media

Employees

FinancialCommunity

Regulatoryentities

Community

Commitments

Suppliers

Operating model

Conduct profile

Ethics

Transparency

Rigour

Action drivers

StakeholderEngagement

SustainabilityReport

CommunicationChannels

Portugal TelecomFoundation

Sustainable conduct


=Group Value

Measurable Performance

Economicalindicators

Environmentalindicators

Socialindicators

Expected outcome

• Financial growthwith respect forcommunity and

environment

• Decision makingprocess, considering

the stakeholders’feedback

• Improvement ofEco - efficiency

• Energy strategy

• Building theKnowledge and

Information Society

• Social support

• Talent attractionand retention

Economical Environmental Social

Sustainability Commitments


Training programs for all employees

Sustainable Procurement Model - supplier selection and contractingincludes environmental and human rights respect procedures

Energy audit to PT offices

Implementation of a long term energy strategy based on green light, free cooling and renewable energies

Sponsorship of NGOs that gather the electric and electronicwaste as well as other accessories like toners and ink cartridges, all over the country

Commercial packages with environmental procedure labels

Awareness campaigns for all employees regarding environmental andfriendly procedures

Enable the market to adopt e-solutions

Environmental, Health & Safety procedures

In cooperation with the private sector, make the new technology benefits available

– especially information andcommunications technologies

We are committed

1.Eradicate extreme poverty and hunger2.Achieve universal primary education3.Promote gender equality and empower women4.Reduce child mortality5.Improve maternal health6.Combat HIV/AIDS, malária and other diseases7.Ensure environmental sustainability

8.Develop a global partnership for development

Millenium Development Goals


Based on a strategy aiming the promotion of development and the reinforcement of competitiveness in Portugal

STRATEGIC AXES

Knowledge

Technology

Innovation

We are committed

EU Lisbon Strategy

PT is deeply involved in the development of the knowledge society, through micro processor computers, mobile broadband programmes, enabling the new information technologies and training programmeson web uses and contents:

Broadband access and bandwidth increase (fixed and mobile)

Accessibility of citizens with special needs

Awareness programs related with the use of the information technologies

Awareness programs related with the adequate use of contents

Knowledge Society


PT’s action program

Global(fixed and mobile)

Broadband connectivity

Diversity of commercial

offer

Training programs

Global coverage in Portugal

School sHospital sNGO’s

Associ ations

Peopl e

Children

El derl y

Peopl e withspeci al needs

Knowledge Society

Pre-paidservices

Diversity ofprice plans

Special conditions

for elderly andretired people

Price simulator

Convergentfixed/mobile

offer

Servicesadequate to

each customerprofileProducts and

servicesadequate to people with

special needs

Diversity of commercial offer


Special needs

Vision

Speech

Cognition

Neural-motor dysfunction

Hearing

Mobile for blind peopleIncoming call light signallingPortable amplifierDecibelReading of written textsText telephoneEmergencyActive voiceBraille bill118 BrailleLine with fixed destinationAladim Program

Special offer

Special products and services

Special products and services


Guarantee the adequate use of telecom services

Main goals

Guarantee the adequate use of web and TV services andcontents

Encouragement of the use of search web tools andthe creation of friendly and adequate contents

Make known the multimedia and broadband capacities

Increase the knowledge level of the population andconsequently increase the digital inclusion

Awareness programs

Education Innovation Health care Safety

Awareness and special programs


Internal Communication Tools

Internal Communication Brand


Hardware and connectivity for educational system and schools

Educational initiatives

Educational initiatives


Minimize carbon footprint

Innovation initiatives

Telemedicine and health management programmes

Health and care initiatives


Environmental safety and human security

Safety initiatives

Lifestyle initiatives


Media

Media


PT assume que lidera a revol ução

di gital nos Açores

Media

Creation of Sustainability Committee

Publishing the Sustainability Report (annually)

Integration as member of FTSE 4 GOOD Índex

Rewarded as Family Responsible Company

Rewarded as the best CFO of European Telecommunications sector andthe best Investor Relations Officer of Telecommunications sector

Rewarded , at national level, as Citizenship Company

Management informations systems certified according to internationalstandardization: Quality, Environment, Hygiene, Health & Safety -ISO 9001, ISO 14001, OSHAS 18001

Creation of Portugal Telecom Foundation

Subscription of ETNO environmental and sustainability principles

Subscription of United Nations Global Compact principles

Subscription of UNI CSR principles

Relevant issues


EACD, Regional DebatesLisboa, 4th December 2008

We are grateful for yourattention and interest

Isabel Martinho

Portugal Telecom

“Challenges of Integrated Communications”

presentation isabel martinho sustainability ii debate lisbon 2008

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