Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human Capital
• Customer Relations
• Environmental Management
• Community Relations

Environmental Achievements

• Reduced GHG emissions (scopes 1 and 2) by 30.10% compared to the 2015 data.
• Reduced per-product electricity use by 2.60% compared to the 2015 data.
• Refurbished 43% of customer equipment, reducing future use of natural resources.
• Achieved UNE-EN ISO 14001:2015 certification for its management system in the Basque Country.

Social Achievements

• Successfully integrated Euskaltel and R, unlocking synergies valued at €12.9 million in 2016 and expecting 15% more in 2017.
• Signed the 3rd Euskaltel Collective Labour Agreement with improvements in wages, work/life balance, and sustainability commitment.
• Signed a provisional agreement for R's first Collective Labour Agreement, ratified by 96% of employees.
• Offered 41,248 hours of training to over 95% of employees.
• Launched the "My first contract" program to promote responsible mobile phone use among children.

Governance Achievements

• Achieved 100% compliance with CNMV's corporate governance recommendations.
• Euskaltel's Board of Directors comprised 50% independent directors and 30% women.
• Approved the 2016-2018 corporate social responsibility (CSR) plan.
• Improved dialogue with institutional investors and proxy advisors on corporate governance matters.

Climate Goals & Targets

Environmental Challenges

• Strong sector competition
• Integration of R Cable y Telecomunicaciones Galicia, S.A.

Mitigation Strategies

• Maintaining market share and leadership position through a consistent strategy focused on long-term value for customers.
• Successful integration of R, exceeding initial synergy targets.
• Efficient management of costs and investments to improve cash flow.
• Bundling strategy to grow in terms of RGU/Subs and mobile convergence strategy to add new lines and improve service costs.

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using environmental criteria

Responsible Procurement

• Close and transparent relationship with suppliers
• Expectation that suppliers share in CSR policy
• Adherence to UN Global Compact by main suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, UN Global Compact

Certifications: UNE-EN ISO 14001:2015, ISO 27001:2014, ISO 9001:2008

Sustainable Products & Innovation

• 3ollosR and Euskaltel Life service

Awards & Recognition

• 2016 Familia Euskadi award
• 2016 Getxo Sasoian award
• Elhuyar Saria recognition

Environmental Metrics

ESG Focus Areas

• Organizational & cultural capital
• Human capital
• Customer capital
• Natural capital
• Relationships capital
• Intellectual capital

Environmental Achievements

• Reduced WEEE generation by 53%
• Reduced materials consumption by 3%
• Reduced energy intensity by 1%
• Secured Erronka Garbia sustainable event certificate for the General Shareholders’ Meeting
• Implemented ISO 14001 Environmental Management System in R and Telecable

Social Achievements

• Launched TalenTU2019 program for young talent recruitment and leadership development
• Conducted a work climate survey across three Group companies
• Collaborated with 98 community organizations
• Maintained 97.3% permanent employment contracts
• Provided 25,596 hours of training

Governance Achievements

• Established a new Strategy Committee
• Increased the number of Board of Directors members from 10 to 12
• Created new roles of CRO, CISO, Compliance Officer, and Data Protection Delegate
• Approved a new Code of Ethics and Anti-Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Highly competitive market environment
• Integration of R and Telecable
• Increasing cybersecurity threats

Mitigation Strategies

• Implemented a new Strategic Plan focused on customer loyalty and satisfaction
• Developed common policies and standardized procedures for integration
• Created a Cybersecurity division and implemented security mechanisms

Supply Chain Management

Supplier Audits: 100% of suppliers rendering services at Group facilities are accredited

Responsible Procurement

• Transfer of corporate values and culture to suppliers
• Requirement for suppliers to share CSR policy and Code of Ethics
• Collaboration with four special work centers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, OHSAS 18001, ISO 22301 (Telecable), ISO 20000-1, UNE-EN 15838, ISO 27001, ISO 9001

Third-party Assurance: AENOR

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure

Group's activities are aligned with these goals

Sustainable Products & Innovation

• 4K Android-based TV decoder

Awards & Recognition

• Erronka Garbia certificate

Environmental Metrics

ESG Focus Areas

• Environmental management
• Combating climate change
• Corporate Social Responsibility
• Good corporate governance
• Respect for human rights
• Gender equality
• Responsible payment of taxes

Environmental Achievements

• Renewal of the Euskaltel Group's Environmental Management System certification in accordance with ISO 14001
• Renewal of R Cable y Telecable's Energy Management System in accordance with standard ISO 50001
• Verification of the EMAS Environmental Statements by AENOR for Euskaltel, R Cable and Telecable
• Registration on the Carbon Footprint Registry of the Ministry for Ecological Transition of Euskaltel, R Cable and Telecable's footprints
• Performance of the Life Cycle Analysis of the Euskaltel and R Cable Virtual Data Centre
• Pilot project to define “green” private purchasing criteria

Social Achievements

• Signing of Equality Plans of Euskaltel S.A., and R Cable y Telecable Telecomunicaciones, S.A.U.
• Organization of several courses on equality for employees
• Provision of 21,383 hours of training
• Implementation of online training
• Launch of e-learning platform
• Negotiation of a new collective agreement for Euskaltel SA and a single collective agreement for R Cable and Telecable personnel
• Free mobile data communications services to children in disadvantaged families
• Free access accounts to OTT TV services for hospitalized patients and their families
• Low-price internet access for families with reduced resources

Governance Achievements

• Amendment of the Articles of Association with the following amendments to the Committees: removal of the Strategy Committee and the separation of the Appointments and Remuneration Committee into two, the Appointments Committee and the Remuneration Committee
• Renewal of ISO 27001 certificate for the Euskaltel Group’s datacentre, back up and cybersecurity services
• Implementation of an anti-bribery management system based on standard ISO 37001 and a Criminal Compliance Management System in accordance with standard UNE 19601

Climate Goals & Targets

Environmental Challenges

• Impact of the Covid-19 pandemic on the global economy and the telecommunications sector
• Increase in network traffic requiring expansion of network capacity
• Restrictions on portability of telecommunication services during the state of emergency
• Uncertainty over the effectiveness of treatments for Covid-19, the extent of the second wave and the American elections

Mitigation Strategies

• Launch of a crisis plan to strengthen and ensure telecommunications services for families and businesses
• Expansion of network capacity to meet increased demand for services
• Implementation of a five-year financing plan with annual reviews and regular analyses of financial position
• Interest rate hedges to mitigate the risk of potential rise in interest rates
• Implementation of new security protocols for personnel and for suppliers, visitors or customers

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, EMAS III

Certifications: ISO 14001, ISO 50001, ISO 27001, ISO 9001, ISO 20000-1, ISO 45001, UNE 27001, UNE 19601, ISO 37001

Third-party Assurance: AENOR