Companies that are more
purposeful get better results
Our purpose is to use the power of communications
to make a better world. Delivering our purpose is
important because it’s good for people, it’s good
for the environment and it’s good for our business.
That’s what we call shared value.
Using our purpose to deliver our goal and business strategy
Our purpose
Our goal
To use the power of communications to make a better world
Growth – to deliver sustainable profitable revenue growth
Our strategy
Broaden and deepen our customer relationships
Deliver great
customer experience
Differentiated
content, services
and applications
A healthy
organisation
© British Telecommunications plc
Best network
in the UK
Invest for
growth
Fully converged
service provider
Best place to work
Transform
our costs
Market
leadership in all
UK segments
Focus on
multinational
companies
globally
Chain of governance
and delivery
Committee for Sustainable
and Responsible Business (CSRB)
CHAIR
Sir Michael Rake
BT Chairman
BT Group PLC Board
Simon Lowth
Operating Committee
Board Committee for
Sustainable and
Responsible Business
Purposeful Business Steering Committee
Niall Dunne
BT Group Finance
Director
BT Chief Sustainability
Officer
Phil Hodkinson1
Baroness Margaret Jay
Non-executive Director
at BT until 2016
Former Non-executive Director
of BT. Former politician
Gavin Neath
BT Group-Wide ‘Purposeful Business’
Plan Delivery owned by Lines of Business
Focused on measurable benefits
Former senior vice
president sustainability
at Unilever
Gavin Patterson
Gunhild Stordalen2
Jasmine Whitbread
BT Chief Executive Officer
Norwegian environmental
advocate and philanthropist
Non-executive director at BT.
Former CEO of Save the Children
Alison Wilcox3
BT
Independent
© British Telecommunications plc
Non-executive
BT Group HR Director
1. Chaired the CSRB at its meeting in July 2015
2. Appointed to the committee from 1 January 2016
3. Replaced Clare Chapman from 1 July 2015
Our key focus areas
Being ethical
and responsible
© British Telecommunications plc
Supporting
our communities
Delivering
environmental
benefits
Being ethical
and responsible
We support human rights, protect
our customers from online threats
and work with suppliers to improve
conditions. This helps us build trust,
enhance our reputation and fulfil
our purpose.
© British Telecommunications plc
Human Rights
Being ethical
and responsible
We’re in the process of drawing together our approach to respecting
human rights into one overarching policy, so that anyone can easily
access our principles and understand how we put them into practice.
Modern Slavery Act Polices
We don’t use or accept forced, bonded or involuntary prison labour or
child labour. We don’t demand deposits or hold onto our workers’
identity papers, or work with businesses that do. We only work with
people who choose to work freely. In 2016 we’ll be updating it to
better reflect the Modern Slavery Act.
Privacy & Freedom of Expression
This year, we published our contribution to the debate on the complex
issues of privacy and free expression in communications. It explains
how we respect those human rights that we are most likely to impact,
whether directly or through third parties.
Online safety
© British Telecommunications plc
We help protect our customers when they’re online and we provide support
for parents to keep their children safe. Internet Matters offers expert advice
and guidance to help parents keep their children safe online. We developed
the cyber safe app that’s available from the Internet Matters site. Using the
app, parents and children can work through a series of questions together
to help them talk about difficult issues related to online safety.
Customer Privacy
Being ethical
and responsible
Privacy remains a key concern for our stakeholders. We must be open
about our approach and make sure our people, products and services
protect customers’ privacy.
Data Security
We invest in tools, techniques and training to defend our customers
and our business from cyber attacks
• Our security teams provide specialist advice and support, but
security is integrated across all our business functions.
• Our security teams share intelligence about attacks and
perpetrators with expert groups around the world, including the UK
Government’s Cyber Security Information Sharing Partnership.
EcoVadis Gold Rating
We retained our gold rating from EcoVadis, placing us in the top 2% of
companies in the rating. Corporate customers use this rating to assess
our sustainability credentials. It’s based on extensive analysis of our
performance on environment, labour practices, fair business practices
and sustainable procurement.
© British Telecommunications plc
Ethics training
Being ethical
and responsible
• We expect everyone who works with BT to act with integrity. We expect
our suppliers and business partners to do the same.
• 99% of our people completed ethics training on The Way We Work; We
regularly train our people on this statement of business practice, and
we monitor all but our lowest-risk suppliers to check they meet our
standards.
Tax policy
Our approach to tax, set by the Board, is to make sure BT complies with
our worldwide tax compliance obligations. The group tax team supports
regional managers in meeting local requirements, who in turn work with
our local businesses to understand the tax consequences of our operations.
This ensures we pay the tax appropriate for our business, after claiming
routine incentives, reliefs and exemptions. Please see our Annual Report
for details on our tax payments.
Conflict minerals
We ask BT product suppliers whether their products contain minerals
which may have been sourced from the Democratic Republic of the Congo
or neighbouring countries. This helps us to avoid the minerals that fuel
war – mainly tin, tantalum, tungsten and gold (3TG metals) – and to
comply with the US Dodd-Frank Act and our Securities Exchange
Committee (SEC) obligations. Our questions are based on the ConflictFree
Sourcing Initiative template. Please see the conflict minerals report we
filed on the SEC website for more details.
© British Telecommunications plc
Supporting
our communities
• We help raise £1 billion for good
causes, as well as inspiring two thirds
of our people to volunteer.
• And help five million children get
a better education to become tech
literate.
© British Telecommunications plc
Our 2020 ambitions
Supporting
our communities
Help 5 million children
receive better teaching in
computing and tech skills
5m
Use our skills and technology
to help generate more than
£1bn for good causes
Inspire 66% (two-thirds) of
BT people to volunteer their
time and skills
Help 10m people overcome
social disadvantage through
the benefits our products
and services can bring
More than 9/10 people in
the UK will have access to
fibre-based products and
services
© British Telecommunications plc
Helped in
2014/15
school year
344k
£1bn
Generated since
2012/13
£327m
66%
Volunteered in
2015/16
27%
10m
Helped since
2014/15
2.6m
9/10
Premises reached
by March 2016
8.5/10
Measuring social impact / social value of Digital Inclusion
Supporting
our communities
© British Telecommunications plc
Examples of supporting our communities
Supporting
our communities
Bridging Colombia’s digital
divide
Working with the Columbian Government, BT
installed satellite services in kiosks at 700
locations – a new £16.2 million 30-month
contract is adding 591 new locations.
So far over 200,000 people have benefited
including farmers, students and the unemployed
– with an estimated social value of £1.8 million
a year.
© British Telecommunications plc
Connecting Africa
BT’s Connecting Africa programme provides free
satellite broadband for 30 villages across 13 African
countries, touching and transforming the lives of
145,000 people.
Evaluation of the social impact across 20 villages
exceeds £500,000 pa; 88 % of people using the
internet for study
Examples of supporting our communities
Supporting
our communities
BT Basic + BT Broadband & Digital
Inclusion for social housing
We work with partners to bring our products and
services to people who are missing out - mainly
unemployed, elderly and disabled people.
These include:
• BT Basic + Broadband is a low-cost package for
people on income support at just £9.95 a
month.
• Digital Inclusion for Social Housing is a shared
internet service that enables housing
associations to offer low-cost connections and
devices to tenants with no upfront installation
cost and no need for credit checks. This has
helped 10,875 properties in 11 housing
associations get online this year.
© British Telecommunications plc
BT & Novartis Partnership
Pilot teleconsultation centre (TCC) established by
Novartis Foundation for the Ghana Health Service,
to connect qualified physicians to remote local
health workers.
Hospital referrals fell by 37 percent in the pilot –
potential to save the Ghana Health Service over
$2.5 billion annually.
Delivering
environmental
benefits
Climate change is one of the greatest global
challenges of our time. We can make a big
difference, by cutting our end-to-end
carbon footprint and enabling others to cut
theirs. And helping our customers cut their
emissions by at least three times our own
carbon impact.
© British Telecommunications plc
Delivering
environmental
benefits
3: 1
We will help
customers reduce
carbon by three
times…
3:1 ambition
2014/15
2015/16
Customer carbon
savings
7.1m tonnes
7.6m tonnes
Out end-to-end
emissions
4.6m tonnes
4.8m tonnes
1.5:1
1.6:1
Ratio
© British Telecommunications plc
Supply chain
60%
BT’s end-to-end
carbon emissions
As at 31 March
2016
…BT’s end-to-end
carbon emissions
5%
35%
Our own operations
Customers using
Our products
How we’ll achieve our goal
Use conferencing,
flexible working
and other products
and services to help
customers cut
carbon
3: 1
Reduce our
end-to-end
carbon
emissions
Reducing
our impact
– Supply–chain
Reducing
our impact
Supply Chain
Delivering
environmental
benefits
• Supply chain emissions have increased by just over 5% but
average intensity carbon decrease as supply chain
expenditure was up 8.2%.
• We’re working with suppliers to reduce these through our
Better Future Supplier Forum. Our new online sustainability
assessment tool aims to help our suppliers – and their
suppliers – understand how to reduce their impacts.
© British Telecommunications plc
Delivering
environmental
benefits
Reducing our impact – our operations
Sourcing renewable power
Energy efficiency
100% in the UK, 95% globally)
This year we invested £16m in energy
management projects, which helped us reduce
our energy savings by 3.1% compared to last
year.
Reducing business travel
Emissions from our worldwide business
travel fell by 18% to below 51,000 tonnes
of CO2e this year.
• Encouraging our employees to
telecommute helps to keep costs down
and avoid carbon emissions.
• More 2,000 UK employees take part in
our car share scheme, reducing fuel use
and emissions from commuting and
business travel.
• Installing energy-efficient lights
• Replacing energy-intensive air conditioning
with adiabatic cooling units
• Installing energy-efficient rectifier units
• De-powering more than 53,000 network
assets that were no longer needed.
Own Fleet
We’re investing heavily in more efficient
vehicles in our fleet
• Replacing 2,781 cars and vans with more
efficient vehicles to save on fuel costs and cut
emissions by an estimated 854 tonnes of
CO2e emissions per year.
© British Telecommunications plc
• Electric vehicle trialling has saved three
tonnes of CO2e and more than £17,000 in
fuel since December 2014
Delivering
environmental
benefits
Reducing our impact – Carbon abatement
methodology
In 2015/16 BT products and services identified as having a carbon
abatement benefit for our customers, generated £3.6 billion of revenue
globally. That’s a 16% increase over the last two years.
Methodology
Carbon
saved
(Case study Report)
Current
product
volumes
Total
carbon
abatement
Included services
© British Telecommunications plc
Field Force Automation
Audio conferencing
Video conferencing Telepresence
Inbound Calling
Broadband enabled
Telecommuting
Broadband enabled e-commerce
BT Vision
Managed Mobility
Data centre services
Cloud Contact
One Cloud
Flexible working services
Copper cable recycling
BT Connect Payments online
transactions
BT SafePay online transactions
TRIAD
Broadband enabled dematerialisation
Super-fast broadband enabled
dematerialisation
Broadband enabled SME use of Cloud
Computing
BT Fleet Engine Remapping
IP Communications
BT Mobility
BT M2M
BT Apps
Delivering
environmental
benefits
Reducing our impact – helping customers cut
carbon emissions
Solution
What it is and how it helps
Key impact
Broadband
Broadband allows people to work from home or remotely
(telecommuting), saving time, fuel and emissions from travelling
to and from an office every day.
• Reduces travel
• Reduces emissions
from the
manufacturing of
physical products
• Reduces need for
commercial space
and associated
energy use
Superfast broadband makes it even easier for people to
telecommute and make the change from physical to virtual
products and services.
Broadband also supports e-commerce, reducing the need for
physical shops and commercial space.
Flexible working
solutions
We offer a range of services, like secure access to an organisation’s
systems, that let staff work flexibly.
Desks can be shared as people aren’t all in at once, reducing the
need for office space and cutting the amount of energy required
to power, heat and cool buildings.
Flexible working also reduces commuting by giving people the
option to work from home. This can result in significant savings
overall, even after factoring in the additional energy employees
use to power, light and heat their homes when they’re working
there.
© British Telecommunications plc
• Reduces travel for
commuting
• Reduces office
space and energy
use
Delivering
environmental
benefits
Reducing our impact – helping customers cut
carbon emissions
Solution
What it is and how it helps
Key impact
Collaboration solutions
Our audio and video conferencing let people meet remotely from
anywhere, so they don’t have to travel to meet up.
• Reduces travel
emissions
We also offer organisations a single global network to support all
communications – including voice, email, web and
videoconferencing, and mobile devices – so that teams can work
together effectively whether they are sitting across a table or
across the world.
Data centre and
cloud solutions
Our cloud services release organisations from the burden of
having their own IT servers taking up space and using energy on
their premises.
• Reduces energy use
Instead, we host their data. And because we host such vast
quantities of data, we can achieve economies of scale and reduce
energy used to power and cool our data centres.
Productivity solutions
© British Telecommunications plc
Field Force Automation improves efficiency and productivity for
organisations with staff who have to travel around to various
appointments during their working day, such as sales teams,
engineers or district nurses.
Online services and automated scheduling mean they don’t have to
go to their base to get their call sheet in the morning and report in
at the end of the day. It also means staff can be allocated to tasks
near them to reduce travel. This lets workers do less mileage and fit
more visits into their day
• Reduces travel
Delivering
environmental
benefits
Reducing our impact – helping customers cut
carbon emissions
Cornwall could save more than half
a million tonnes of CO2 over 9 years
to 2020; 25 times the carbon
impact of running the network.
Our superfast connections in Cornwall could save more than half a
million tonnes of CO2 e emissions over nine years to 2020. That’s a
staggering 25 times the emissions from running this network.
Situated at the southwest tip of England, Cornwall is famed for its
rugged cliffs and pretty, but narrow, country lanes. Since 2011 we’ve
been working to make this county, with its hard-to-reach villages
dotted around the countryside, into one of the most digitally
connected rural areas in Europe.
Together with the European Union and Cornwall Council, we’ve built a
fibre broadband network that passes 95% of Cornish homes and
business premises, with nearly 90% now connecting with superfast
speeds. By 2020, we want to bring access to superfast broadband to
99% or more in this region.
With superfast connections, 12,000 of Cornwall’s businesses can
now compete on the world stage. This is good for the Cornish
economy – contributing more than £200m in economic impact.
People have cheaper, more reliable access to cloud technology and
videoconferencing, and those living in isolated places don’t need to
get in their cars to go to the shops. Instead, they can order goods
online and download books and movies digitally.
© British Telecommunications plc
Global potential for ICT – enabled carbon
reduction
Delivering
environmental
benefits
ICT could enable a 20% reduction in global CO2 emissions by 2030,
enabling 12 GT CO2e in reductions globally.
 The Global e-Sustainability Initiative
has quantified the potential for ICT to
enable global carbon reductions – their
findings were published in the report,
‘SMARTer2030’
Global ICT-enabled Carbon
Reductions by Sector (Gt CO2e)
 The report found that ICT could reduce
global CO2e emissions by 20% in 2030,
thus holding emissions at 2015 levels
and ultimately decoupling economic
growth from emissions
 Emissions from ICT, as a percentage of
global emissions, will also decrease
from 2.3% to 1.97% over this
timeframe
Manufacturing
© British Telecommunications plc
Agriculture
Buildings
Energy
Mobility
Other
Total ICT
Enabled
Carbon
Reductions
 The ICT sector could also generate over
£7.2 trillion in annual economic
benefits by 2030
Delivering
environmental
benefits
The sizable ICT opportunity
ICT has the potential to reduce EU carbon emissions by over 1.5 Gt
CO2e and generate €1.3 trillion in economic growth
1.5 Gt
19x
ICT has the potential to reduce carbon emissions by over 1.5 Gt CO2e in
2030; 2.7 times larger than the current UK carbon footprint
The carbon reductions enabled by ICT are close to 19 times greater
than the ICT footprint in 2030 and the ICT footprint is expected to
decrease over time
ICT can also enable new business models such as the Circular Economy
to help drive innovation and further revenue generation and
sustainability benefits
53%
€1.3tn
© British Telecommunications plc
20bn
53%, or 0.8 Gt, of the ICT-enabled reductions will be generated
through improved energy efficiencies
ICT-enabled carbon reductions will also generate €1.3 trillion in
economic benefits, comprising €678 billion in new revenues and
€643 billion in cost savings
Work and Business and Mobility ICT applications could enable over
20 billion hours in time savings; equivalent to nearly 40 hours per
person per year in 2030
Delivering
environmental
benefits
© British Telecommunications plc
How the internet of things can create a better
world
Smart Cars
Smart Energy
Smart Transport
Smart Social Care
Smart City
Smart Enterprise
Real life examples of BT creating a better world
Delivering
environmental
benefits
• In Cornwall we have 1,200 telehealth and 11,000 telecare users
• 93% of patients getting a benefit, making their trips to the GP more appropriate
or reducing need to be seen by a clinician.
• £155,705 has been saved by avoiding 57 admissions from a cohort of 100
patients
• 6:1 investment return.
•
•
•
•
•
Ethical hacking over WIFI/4G
Artificial intelligence to monitor planned attacks
Secure distribution of software to vehicles
Safe removal of malware from vehicles
Unique in car gateway being developed with Formula 1 partner to search for
abnormalities, and connect safely to cloud service
• State-of-the-art Data Hub - Intelligent planning and usage of
resources across city
• An integrated, open environment for big data
• Supports development of consumption and behaviour models
• Digitally enabled growth with 14,500 jobs safeguarded
• New business opportunities - £36m for Milton Keynes by 2026.
© British Telecommunications plc
•
•
•
•
•
•
Department of Transport – UK’s first ‘internet-connected’ road
JUMPA – Journey Planning & Prediction
Traffic Incident Alerting
Travel Dashboard
Driver Behaviour
Driver assist
Case study – Smart parking
Delivering
environmental
benefits
What is smart parking?
Sensors that determine which spaces are occupied giving councils the ability to
monitor/manage parking spots in real-time and design policies accordingly
Benefits
Sensors in parking
bays detect when a
car is parked
Reducing traffic congestion
& pollution
Providing drivers with real-time and
location based information on parking
availability, smart parking can yield up to
30% reduction in traffic congestion
Repeaters gather
sensor signals …
Cost saving
An automated and remotely controlled
parking system could save councils up to
50%1 in warden and parking system
running costs
…and relay them to
a data centre
Improving the parking experience
Parking info sent to
smartphone app or local
authority dashboard
© British Telecommunications plc
1 Based
on a study by Streetline; a US based company that is leading in the field of smart real-time parking solutions
2 A study
Providing drivers with several applications such
as: locating parking spots, paying by phone,
setting timer for meter expiry time,…
Improving the parking experience
System displays real-time parking
violations in a given area and relay that
to traffic wardens thus increasing
compliance rates2
shows that without smart parking, no more than 8% to 10% of parking payment violations are ticketed
Delivering
environmental
benefits
Case study – Smart street lighting
What is smart street lighting?
A system that enables street lamps to connect, gather data, and relay it to a central platform
for analysis & control thus yielding higher efficiencies for councils.
Benefits
Back office level
Control
centre
Remote control
Internet
Sector level
Luminaire segment
controller (LSC)
Luminaire level
Pollution reduction
UK councils are under increasing
pressure to meet regulatory target of
cutting down CO2 emissions by 40% by
2020.
Cost saving
Remote dimming and monitoring
yields energy savings of 20-60%1
and reduces maintenance costs by
20-40%1
Public safety and traffic monitoring
Mass notification systems installed on
the poles alert pedestrians during
emergencies. Sensors detect traffic
blockage and pedestrian activity for
public transport management
Digital signage
© British Telecommunications plc
Message boards can be used to offer parking
guidance, send detour messages in cases of
road blockage, or emit customized
advertising messages
KPI update 2015/16
© British Telecommunications plc
KPI update (year end March 31 2016)
© British Telecommunications plc
btplc.com/Purposefulbusiness
© British Telecommunications plc