Climate Change Data

Environmental Metrics

ESG Focus Areas

• Digital Skills
• Climate Change
• Human and Digital Rights

Environmental Achievements

• Reduced carbon intensity by 42% since 2016/17
• 92% of worldwide electricity consumed is renewably sourced (100% for directly purchased electricity in the UK)
• Helped customers save three times as much carbon as BT's end-to-end carbon emissions (one year ahead of target)
• 12 key suppliers signed up to climate clause

Social Achievements

• Launched Skills for Tomorrow program, reaching 2.8m people since 2014/15
• Empowered over 3,300 young people through Work Ready program since 2014
• Invested £29m in community programs (though short of the 1% of adjusted profit before tax target)

Governance Achievements

• Added digital skills and carbon emissions intensity targets to Group KPIs, linked to 10% of bonus scheme
• Expanded dedicated human rights team to four experts
• Introduced new online training module on human rights for relevant teams

Climate Goals & Targets

Environmental Challenges

• Lower in-kind contributions in community programs resulting in investment falling short of target
• Transitioning to an electric fleet is challenging due to market limitations and charging infrastructure
• Increased waste generated due to network investments, disposal of legacy equipment and buildings rationalisation

Mitigation Strategies

• Refocusing efforts behind Skills for Tomorrow and aiming to improve the efficacy of volunteering
• Trialing electric vans and ordering more, joining EV100 campaign and launching an industry EV Coalition
• Developing an app to track hazardous waste and provide clear guidance to engineers

Supply Chain Management

Supplier Audits: 95 high and medium-risk suppliers reviewed; 53 on-site assessments conducted

Responsible Procurement

• Sourcing With Human Dignity labour standards
• Climate clause in commercial contracts
• Procurement standards including criteria on energy consumption and environmental performance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, CDP

Certifications: ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Broadband, teleconferencing, cloud networking, IoT technologies

Awards & Recognition

• CDP’s global A List of corporate climate leaders (four years running)
• Clean200 list
• EcoAct’s top three FTSE 100 companies for climate action (seven years running)
• EcoVadis Gold rating for corporate social responsibility (seven years running)
• Global 100 most sustainable corporations
• Tortoise Responsibility100
• Movement to Work ‘Employer of the Year 2020’
• National Payroll Giving Excellence Award for Most Sustained Scheme

Environmental Metrics

ESG Focus Areas

• Digital Skills
• Responsible Tech & Human Rights
• Climate Change and Environmental Challenges

Environmental Achievements

• Switched to 100% renewable electricity worldwide
• Reduced carbon intensity of operations by 57% since 2016/17
• Cut supplier emissions by 19% since 2016/17

Social Achievements

• Reached 10.1m people with help to improve their digital skills (5 years ahead of target)
• Launched Ethnicity Rapid Action Plan
• Supported vulnerable customers throughout the pandemic

Governance Achievements

• Established new responsible tech strategy and principles
• Strengthened human rights governance and due diligence processes
• Integrated DI&S goals into group KPIs, contributing 10% of overall bonus

Climate Goals & Targets

Environmental Challenges

• Reduced levels of volunteering during the pandemic
• Supply chain disruptions due to Covid-19
• Short supply of electric vans and lack of nationwide charging infrastructure

Mitigation Strategies

• Launched over 400 new online resources
• Increased number of remote assessments for high-priority suppliers
• Worked with suppliers to resolve issues around increased use of temporary labour and excessive working hours
• Secured 351 electric vans for fleet and installed charging points

Supply Chain Management

Supplier Audits: 53 on-site assessments in 2019/20; 33 in 2020/21; 5 remote assessments

Responsible Procurement

• Sourcing With Human Dignity labour standards
• Climate change, environment, ethics, health and safety, and product stewardship standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heatwaves, storms, floods, lightning strikes)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services; growth of carbon-reducing solutions

Reporting Standards

Frameworks Used: GRI, UN Global Goals, ISO 26000, CDSB, SASB, TCFD, UN Global Compact

Certifications: ISO 14001:2015 (various countries), ISO 50001 (Germany and UK)

Third-party Assurance: AccountAbility’s AA1000ASv3 accounting standard

UN Sustainable Development Goals

• 9.1 & 9c
• 8.7
• 10.2
• 16.10
• 12.5 & 12.7
• 13a
• 5b
• 4.3 & 4.4

The report mentions alignment with several UN Sustainable Development Goals, but doesn't provide detailed explanations for each.

Sustainable Products & Innovation

• Eco-SIM card (Thales)

Awards & Recognition

• CDP A List
• CDP Supplier Engagement Leaderboard
• Clean200
• Corporate Knights Global 100
• EcoVadis Gold rating
• FTSE4Good
• ISS-ESG Prime rating
• MSCI AA rating
• Tortoise Responsibility 100
• Vigeo Eiris Top quartile

Environmental Metrics

ESG Focus Areas

• Responsible Tech
• Inclusion
• Sustainability

Environmental Achievements

• Reduced carbon emissions intensity by 55% since 2016/17 (towards an 87% target by March 2031)
• Reduced scope 1 and 2 emissions by 55% since 2016/17
• Reduced supplier carbon emissions by 28% since 2016/17 (towards a 42% target by March 2031)
• Achieved 100% renewable electricity globally (99.9% renewable, 0.1% non-renewable where unavailable)
• Recovered or recycled 97% of operational waste worldwide (99.4% in the UK)
• Refurbished or recycled 170k mobile devices and 1.35m home hubs and set-top boxes

Social Achievements

• Helped 4.6m people improve their digital skills (14.7m since 2014/15)
• Supported 2,200 small businesses and their employees through mentoring
• Reached 46,200 small businesses and employees through webinars
• Launched BT Accelerate Digital, a digital talent movement
• Launched EE’s PhoneSmart Licence to help young people stay safe online
• Partnered with charities to tackle the digital divide
• Supported over 738,000 young people in India through partnership with the British Asian Trust

Governance Achievements

• Refreshed ethics code to include commitments on responsible tech and human rights
• Updated sourcing and selling processes to embed responsible tech principles
• 96% of colleagues completed mandatory annual training on the ethics code
• Increased weighting of responsible and sustainable criteria in initial supplier assessments from 10% to 15%
• Conducted 31 on-site supplier assessments

Climate Goals & Targets

Environmental Challenges

• Barriers to transitioning to a zero-emission fleet (e.g., government grant cuts)
• Need to reach businesses in all communities with digital skills support
• Keeping up with the pace of AI innovation and ensuring responsible development
• Addressing ethical issues raised by data monetization
• Tackling online hate and abuse

Mitigation Strategies

• Partnering with government, suppliers, and other businesses to overcome fleet transition challenges
• Investing in mentoring programs and webinars to support small businesses
• Establishing a responsible tech steering group to oversee implementation of principles
• Strengthening privacy impact assessment process
• Launching Hope United campaign to combat online hate

Supply Chain Management

Supplier Audits: 31 on-site assessments in 2021/22

Responsible Procurement

• Supplier assessments on human dignity, environmental, and climate change issues
• Requirement for suppliers to have a net zero science-based target for contracts over £25m
• Climate clause committing key suppliers to measurable carbon savings

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: Science Based Targets initiative

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fairphone (sold by EE)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Supply Chain Sustainability
• Customer Emissions Reduction

Environmental Achievements

• Reduced carbon emissions intensity by 56.42% against a science-based target of 87% by 2031 (compared to 2017 levels).
• Increased renewable energy share to 23.3% of worldwide electricity demand (25.3% in the UK).
• Added over 1,000 electric vehicles to the fleet, saving over 2,200 tonnes of CO2e.
• Reduced global energy consumption in buildings by 77.7 GWh (2.85%).
• Reduced supply chain emissions by 20% since 2017.

Social Achievements

• Launched 'Digital Carbon Calculator' and 'Carbon Network Dashboard' to help customers reduce their ICT carbon footprint.
• ESG business briefing with investors and financial analysts.

Governance Achievements

• Board-level oversight of climate-related issues through the Responsible Business Committee (RBC).
• 5% of annual bonus for eligible managers linked to carbon emissions intensity reduction target.
• Updated sustainability underpin for FY24 restricted share plan for executive directors.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (e.g., Storm Arwen).
• Increased energy prices and volumes.
• Challenges in sourcing renewable electricity in some countries.
• Availability of suitable low-carbon vehicles and charging infrastructure.

Mitigation Strategies

• Investment in flood defences (£6 million) and an Emergency Response Team.
• Strategies to lock in long-term electricity prices through hedging and PPAs.
• Collaboration with RE100 members to improve renewable electricity supplies.
• Phased transition of commercial fleet to electric and alternative fuel vehicles.

Supply Chain Management

Supplier Audits: More than 200 suppliers reporting to CDP.

Responsible Procurement

• Climate change procurement standard in all supplier contracts.
• Climate clauses in key supplier contracts.
• Requirement for net-zero science-based targets for new contracts over £25 million.

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms and flooding
• Extreme heat

Transition Risks

• Carbon pricing
• Regulatory changes

Opportunities

• Development and expansion of low-emission products and services
• More energy-efficient network operations and buildings

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy sourcing, energy efficiency improvements, and emissions reductions.

Sustainable Products & Innovation

• Full fibre broadband
• Cloud computing
• IoT technologies
• AI-powered edge computing solution
• Carbon Calculator and Dashboard

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Digital Inclusion
• Responsible Technology
• Circular Economy

Environmental Achievements

• Reduced carbon emissions intensity by 56% since FY17
• 99.9% of global electricity consumption from renewable sources
• Recovered nearly 2m home hubs, set-top boxes and mobile phones for recycling and reuse
• Recovered, reused and recycled 89% of UK operational waste

Social Achievements

• Improved gender and ethnicity pay gaps
• Increased representation of female, ethnic minority and disabled colleagues since 2018
• Helped 4.6m people improve their digital skills
• Launched Netwalks program for small business support
• Hope United campaign educated 7.4m people on online safety

Governance Achievements

• Completed first external GNI assessment
• Enhanced sales due diligence to identify and address potential human rights impacts
• Developed data ethics standard and Responsible AI standard

Climate Goals & Targets

Environmental Challenges

• Cost of living crisis and volatile macroeconomic environment
• Industrial action
• Supply chain challenges
• Intense competition
• Cyber security threats

Mitigation Strategies

• Cost saving efficiencies (£0.7bn this year, £2.1bn total)
• Cost of living pay rise for employees
• Crisis simulation for supply chain disruptions
• New security strategy and enhanced cyber defenses
• Strengthened supply chain risk management

Supply Chain Management

Responsible Procurement

• Sustainability criteria in procurement processes
• Net zero science-based targets for suppliers with new contracts over £25m

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heatwaves
• Extreme weather events

Transition Risks

• Changing consumer preferences
• Carbon pricing
• Cost of capital

Opportunities

• Energy efficiency
• Reputation enhancement
• Expanded service offerings

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

Third-party Assurance: LRQA Limited

Sustainable Products & Innovation

• More sustainably designed home hubs and TV boxes

Awards & Recognition

• RootMetrics #1 UK network for nine consecutive years
• 2022 UK Customer Experience Awards winners
• 2023 USwitch awards winners

Environmental Metrics

ESG Focus Areas

• Climate change
• Digital inclusion
• Diversity & Inclusion
• Responsible technology
• Circular economy

Environmental Achievements

• 61% reduction in operational carbon emissions intensity (compared to FY17 levels)
• 140GWh reduction in global energy consumption (4% drop)
• Over 4,100 electric vehicles added to the fleet
• Customers avoided more than 1.5m tonnes of carbon emissions through BT products and services

Social Achievements

• Helped 3.7m people improve digital skills
• Launched GameSmart online resource for parents on children's gaming safety
• Launched EE Hope United to combat online hate
• Supported around 1m low-income customers through affordable broadband and calls

Governance Achievements

• Updated sustainability-linked remuneration policy
• Improved Business sales due diligence to identify human rights risks
• Strengthened supply chain risk management framework

Climate Goals & Targets

Environmental Challenges

• Significant change across the organisation, including the appointment of a new Chief Executive
• Inflationary pressures on the business
• High interest rates
• Intense competition
• Geopolitical challenges and supply chain disruptions
• Increased demand for connectivity
• Economic uncertainty
• Rapid advances in AI and data use
• Growing ESG focus
• Increased regulatory scrutiny

Mitigation Strategies

• Focusing on building and connecting customers to networks, and accelerating transformation
• Incorporating Ofcom’s proposals on pricing into Consumer business
• Protecting social tariff and pay-as-you-go customers from price increases
• Merging Enterprise and Global CFUs to create Business CFU
• Simplifying product portfolio and transforming customer journeys
• Modernising IT architecture and migrating customers to strategic networks
• Deploying AI Ops for self-healing technology
• Investing in digital skills and responsible technology
• Setting a target to achieve net zero carbon emissions in operations by 2031 and for supply chain and customer emissions by 2041
• Engaging with stakeholders
• Strengthening supply chain risk management
• Improving crisis management capabilities
• Investing in risk intelligence

Supply Chain Management

Responsible Procurement

• Sustainability criteria in procurement processes
• Human rights risk reviews
• Worker’s voice pilot in supplier factories

Climate-Related Risks & Opportunities

Physical Risks

• More flooding
• More intense heatwaves
• More frequent extreme weather events

Transition Risks

• Changing customer expectations
• Carbon pricing and taxation
• Cost of capital
• Energy pricing and efficiency

Opportunities

• Carbon abatement solutions
• Energy efficiency improvements

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 45003 (psychological health and safety in the workplace - stage 1 audit complete)

Third-party Assurance: AccountAbility’s AA1000AS v3 (high level assurance for TCFD disclosure)

Sustainable Products & Innovation

• AI-powered edge computing solution for carbon optimisation
• Real-time energy and carbon dashboards
• Smart building technology for energy optimisation

Awards & Recognition

• Prime Minister’s Award for Cyber
• EE named RootMetrics’ number 1 mobile network for the 21st time
• BT Group Ethnic Diversity Network awarded “Best Network Group” at the Ethnicity Awards