Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Innovation
• Community Engagement, Volunteerism and Philanthropy
• Diversity and Inclusion
• Environment, Health and Safety

Environmental Achievements

• Reduced overall fleet of vehicles by 26 percent (pre-merger, as SBC)
• Decreased annual gasoline fuel consumption by 10% (2001-2004)
• Decreased annual diesel fuel consumption by 20% (2001-2004)
• Improved energy efficiency of some data centers by nearly 25%
• AT&T Yellow Pages printed on paper with >40% post-consumer recycled content
• eBill Paperless Program increased monthly enrollments by 54% (July 2005 - March 2006), resulting in a donation to the National Arbor Day Foundation

Social Achievements

• Spent $2.4 billion with diverse suppliers (15% of procurement base) in 2005
• Spent over $20 billion with diverse suppliers (18% of total procurement) in the past 10 years
• AT&T Foundation contributed over $101 million in 2005 through corporate, employee, and foundation giving programs
• AT&T Foundation's three-year, $100 million initiative to provide technology access to low-income families and underserved communities
• AT&T Pioneers donated 11.3 million volunteer hours in 2005 (nearly $204 million worth)
• Provided free AT&T Prepaid Calling Cards to connect veterans and military personnel with families

Governance Achievements

• Adoption of a Code of Ethics and Code of Business Conduct
• Establishment of an Ethics and EEO Line
• Development of Corporate Governance Guidelines

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Meeting aggressive supplier diversity goals

Mitigation Strategies

• Joined the California Climate Action Registry
• Investigating centralizing electricity and fuel purchases
• Purchasing low-emission vehicles
• Recycling used oil and antifreeze
• Promoting online paperless billing and double-sided printing
• Implementing supplier diversity best practices

Supply Chain Management

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Awards & Recognition

• Fortune magazine's America's and World's Most Admired Telecommunications Company (2006)
• Computerworld Premier 100 IT Leaders (2006)
• DiversityInc's Top 10 Specialty Lists (2006)
• Best Places to Work, Human Rights Campaign (2006)
• America’s Top Corporations for Women’s Business Enterprises (2006)
• Best Corporations for Veteran-Owned Businesses (2006)
• InformationWeek 500 (2005)
• CNET’s International CES 2005 Next Big Thing Award (2005)
• Top Employers for Women, Fortune magazine (2005)
• 50 Top Employers for Minorities, Fortune magazine (2005)
• Top 10 Companies for Philanthropic Giving, Hispanic Business magazine (2005)
• Top Corporations for Multicultural Business Opportunities (2005)
• Silver Cause Marketing Halo Award for Best Environmental/Wildlife Program (2006)

Environmental Metrics

ESG Focus Areas

• Strengthening Communities
• Investing in People
• Leading with Integrity
• Minimizing Our Environmental Impact
• Connecting People and Business
• Leading Innovation and Technology

Environmental Achievements

• Reduced electricity consumption relative to data growth on the network by 23.8% compared to 2008.
• Deployed 970 alternative-fuel vehicles.
• Kept more than 72.1 million pounds of network scrap materials out of landfills.

Social Achievements

• Launched AT&T Aspire, a $100 million program to improve high school retention rates.
• Provided job shadowing opportunities to 23,000 students.
• 41% of AT&T’s U.S. workforce is female, 38% are people of color.

Governance Achievements

• More than 99% of AT&T employees completed Code of Business Conduct training.
• More than 99% of managers completed Ethical Leadership training.
• Established the AT&T Business Sustainability Advisory Council.

Climate Goals & Targets

Environmental Challenges

• Quantifying the economic and environmental benefits of ICT products for customers.
• Lack of readily available alternative-fuel vehicles for fleet needs.
• High school dropout rate in the U.S. and challenges in tracking student progress.

Mitigation Strategies

• Working with industry groups and the Carbon Disclosure Project.
• Working with governments and the private sector to promote alternative-fuel infrastructure.
• Investing in research and programs to address the dropout crisis, including job shadowing.

Supply Chain Management

Supplier Audits: Survey of approximately 150 top suppliers.

Responsible Procurement

• Citizenship & Sustainability Principles of Conduct for Suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Sustainable Products & Innovation

• AT&T Telepresence Solution

Awards & Recognition

• Freeman Philanthropic Services Award
• Environmental Leadership Award from Automotive Fleet
• Many other awards listed on pages 72-73

Environmental Metrics

ESG Focus Areas

• Philanthropy
• Volunteerism
• Workforce Diversity
• Supplier Diversity
• Greenhouse Gas Emissions
• Energy Consumption
• Water Consumption
• Waste Reduction
• Product Stewardship
• Innovation
• Network Reliability
• Customer Privacy and Data Security
• Ethics and Compliance

Environmental Achievements

• Exceeded goal of reducing electricity consumption relative to data growth by 16 percent (achieved 16.6% decrease)
• Deployed more than 2,400 CNG vehicles
• Reduced packaging by about 200 tons
• Switched from petroleum-based ink to vegetable-based ink and from PVC plastic to PET in packaging
• Launched Samsung Evergreen phone with 70% recycled post-consumer plastics and 80% recycled paper packaging
• Implemented 4,200 projects resulting in annualized energy savings of $44 million

Social Achievements

• More than 65,000 students participated in Job Shadow opportunities
• 9 million employee volunteer hours donated (worth more than $192 million)
• Launched Family Engagement for High School Success Program
• Spent $9.2 billion with diverse suppliers (18.8% of total purchases; 34% year-over-year increase)
• Implemented a streamlined Code of Business Conduct with 99.5% employee training completion rate

Governance Achievements

• Established a Citizenship & Sustainability Steering Committee
• Public Policy Committee of the AT&T Board of Directors has oversight of sustainability
• Implemented a streamlined Code of Business Conduct with 99.5% employee training completion rate

Climate Goals & Targets

Environmental Challenges

• High school dropout rate
• Energy consumption relative to network data growth
• Water consumption
• Waste reduction in product packaging and supply chain
• Maintaining a diverse workforce
• Improving supplier sustainability practices

Mitigation Strategies

• AT&T Aspire program
• Energy efficiency projects and initiatives
• Water footprint assessment and prioritization of water-saving projects
• Collaboration with suppliers to reduce packaging and improve sustainability
• Focus on diverse hiring practices
• Supplier Citizenship and Sustainability survey and collaboration with CDP

Supply Chain Management

Supplier Audits: Supplier Citizenship and Sustainability survey

Responsible Procurement

• Supplier Diversity Initiative
• Collaboration with suppliers on energy efficiency and GHG emissions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Sustainable Products & Innovation

• Samsung Evergreen phone
• AT&T ZERO Charger

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Became one of the largest corporate purchasers of renewable energy in the U.S., investing in up to 820 megawatts of wind energy. This is enough energy capacity to reduce greenhouse gas emissions equivalent to taking more than 530,000 cars off the road for one year.

Social Achievements

• Aspire and ESCUELA+ education programs continued to drive innovation in education for underserved and underrepresented populations in the U.S. and Latin America.
• Reskilling program cited as a national model, providing employees and others with skills for high-tech jobs.
• Launched AT&T BELIEVESSM initiative to bring training, economic opportunity, and hope to communities impacted by violence (Chicago, Atlanta, Dallas, New York).
• WarnerMedia announced a new Diversity & Inclusion Policy to give more opportunities to women, people of color, and individuals from other underrepresented groups.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Pressure from developing technology and shifts in customer behavior in the Communications segment.
• Increased competition for communications and digital entertainment services.
• Pressure on pricing in wireless and video services.
• Potential for increased costs of compliance and uncertainty in the value and availability of data due to privacy-related legislation.
• Increased need for local permitting processes for small cell equipment deployment for 5G.
• Increased piracy of digital content threatening WarnerMedia’s revenues.
• Declines in legacy wireline voice and data products and linear video.

Mitigation Strategies

• Transitioning to more efficient and less expensive software-based technology.
• Cost savings from corporate initiatives, digital transformation, vendor discounts, and WarnerMedia merger synergies.
• Expanding high-speed internet and video offerings and developing IP-based services.
• Expanding OTT video service offerings.
• Investing in 5G and millimeter-wave technologies.
• Working to limit piracy through technological and legislative solutions.
• Developing direct-to-consumer streaming services and new advertising opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Diversity, Equity and Inclusion
• Climate Change
• Responsible Business Conduct

Environmental Achievements

• Not disclosed

Social Achievements

• Continued commitment to a diverse and inclusive workplace; Employee wellness initiatives including flexible scheduling and remote work options.
• The only major U.S. telecommunications company with a fully unionized frontline workforce.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Effects of climate change (potential infrastructure damage, service disruptions, regulatory changes)
• Increased public focus on privacy, data security, and ESG matters leading to potential new regulations and increased costs.
• Competition from companies with lower cost structures and less regulation.
• Cyberattacks
• Supply chain disruptions
• Litigation and government investigations related to lead-clad cables.

Mitigation Strategies

• Investing in network resiliency and mitigation strategies for climate change impacts.
• Maintaining a robust network and information security program.
• Cost transformation initiatives and product simplification.
• Developing alternative sourcing strategies (implied)
• Addressing litigation and government inquiries related to lead-clad cables.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed