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Our commitment to society
Corporate social responsibility (CSR) |
Managing social, ethical and environmental issues in a way that grows shareholder value and helps BT and our customers to be more sustainable is a key challenge for us.
The Dow Jones Sustainability Indexes rank companies for their success in managing social, ethical and environmental factors for competitive advantage. During the 2005 financial year, BT was ranked as the top telecommunications company in the Dow Jones Sustainability Index for the fourth year in a
row.
We also hold the Queens Award for Enterprise in recognition of our contribution to sustainable development.
This section of the report, together with the broad statement on social, environmental and ethical matters included in the section on Corporate governance, provides information in response to the Association of British Insurers disclosure guidelines on social responsibility.
More
detailed disclosures on BTs implementation of social, ethical
and environmental policies and procedures are available online in
our independently-verified
social and environmental report, which has been prepared in accordance
with the 2002 Global Reporting Initiative (GRI) sustainability reporting
guidelines.
The Board reviews our CSR strategy and performance annually and is kept informed of our main CSR risks and opportunities as well as new developments that may impact on its duties.
A Board committee the Community Support Committee oversees community, charitable and arts expenditure and the strategy for maximising our contribution to society. The committee, chaired by Sir Christopher Bland, consists of representatives from BT businesses, two non-executive directors
and two external independent members, who have a reputation for excellence in this field.
An executive committee, the Corporate Social Responsibility Steering Group (CSRSG), oversees the implementation of our CSR strategy and programme. This includes risk assessment, target and objective setting, ISO 14001 certification the international standard for environmental management
systems and public accountability.
The CSRSG consists of CSR champions nominated by the lines of business and seven support functions (human resources, corporate governance, health and safety, group property, communications, internal audit and procurement).
The CSRSG is chaired by BTs CSR champion, Alison Ritchie, Chief Broadband Officer and a member of the Operating Committee. It is supported by advice from an independent panel of CSR experts.
Embedding CSR into BTs commercial operations is an important part of our CSR strategy, and a key part of our work in the 2005 financial year has been extending our CSR activity into our global operations. We have carried out a number of health checks in our commercial operations to identify
specific social, economic and environmental impacts (positive and negative) and particular CSR risks and opportunities. A report is then compiled which includes recommended actions.
We have important relationships with a wide range of stakeholders, including employees, customers and suppliers. We engage with these stakeholders in a number of ways, including consumer liaison panels, an annual employee survey and a supplier relationship management programme.
Our CSR team co-ordinates and monitors CSR performance, identifies potential issues and opportunities that might affect the business, and supports BTs commercial activities.
As
part of our CSR performance measurement, we have 12 non-financial
KPIs (key performance indicators) which provide a comprehensive overview
of BTs social and environmental performance. Our performance
against these is published in our annual Social
and Environmental report.
Social, environmental and ethical risks |
During the 2005 financial year, we further increased our understanding of our CSR risks. Privacy has been identified as an additional risk and we have developed a set of privacy principles for the business and commissioned research on the topic of privacy in the digital networked economy.
In the context of CSR, our most significant risks are:
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supply chain working conditions; |
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health
and safety;
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climate
change;
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diversity;
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offshoring
or the geography of jobs;
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breach
of the code of business ethics; and
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privacy.
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Each of
these risks has a risk owner and mitigation strategy in place (more
detail on these can be found in our online social and environmental
report).
CSR business opportunities |
There is a direct link between our CSR activity, corporate reputation and customer satisfaction. A detailed analysis in 2001 of customer opinion data based on tens of thousands of interviews showed that a 1% improvement in the publics perception of our CSR activities resulted in a 0.1% increase in our
retail customer satisfaction figures.
This underlines how important it is not only to protect our reputation through appropriate risk management activities, but also to enhance it through our community activities.
Long-term sustainability trends are creating market opportunities for us, such as the use of teleconferencing and flexible working to reduce the need to travel and provide more flexible lifestyles.
Increasingly, BT has to address social and environmental matters when bidding for business. In the 2005 financial year, bids to the value of £2.2 billion required us to demonstrate expertise in managing these issues.
During the 2005 financial year, we retained ISO 14001 accreditation for our UK operations and BT Spain and extended it to BT Ireland.
BT is one of the largest consumers of industrial and commercial electricity in the UK, and the growth of broadband has, as expected, increased our electricity use. In the 2005 financial year, our usage increased by 3.1%. However, we also signed the worlds largest green energy contract which means
that almost all of BTs UK electricity needs will be met from environmentally-friendly sources, including wind generation, solar, wave and hydroelectric schemes. In CO2 emissions savings, this equates to 325,000 tonnes each year, equivalent to that produced by approximately 100,000 cars.
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2005 |
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2004 |
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2003 |
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2002 |
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Total
(UK only; million tonnes)
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0.76 |
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0.92 |
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0.96 |
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1.03 |
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%
below 1996
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53% |
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42% |
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40% |
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36% |
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Tonnes
per £1m turnover
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41 |
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50 |
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51 |
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56 |
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During the 2005 financial year, we received an income of £3 million from our recycling activities, offset against the £7 million we spent managing our waste contracts, recycling our waste and sending waste to landfill.
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2005 |
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2004 |
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2003 |
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2002 |
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Total
waste (tonnes)
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110,622 |
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107,303 |
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117,688 |
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114,999 |
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Total
waste recycled (tonnes)
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37,421 |
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27,626 |
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27,809 |
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24,099 |
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%
Recycled
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34% |
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26% |
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24% |
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21% |
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During the 2005 financial year, we reduced our commercial fleet still one of the largest in the UK by 2% and our fuel consumption by 3.5%.
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2005 |
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2004 |
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2003 |
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2002 |
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Number
of vehicles
(UK only)
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31,969 |
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32,663 |
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33,979 |
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37,509 |
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Fuel
consumption
(million litres)
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51.97 |
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53.85 |
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56.12 |
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62.76 |
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Digital inclusion is a key public policy issue and we are working with the UK Government and the voluntary sector to find effective ways to use communications technology to tackle social exclusion. On 12 October 2004, BT was involved, as a founder member, in the launch of the Alliance for Digital Inclusion.
Our involvement in the EverybodyOnline programme, established in partnership with charity campaign group Citizens Online, continues to be a key part of our digital inclusion campaign. The campaign aims to increase skills and access to communications technology in deprived communities and to
increase the understanding of the causes and effects of the digital divide and how they can be addressed at a national level.
We commit a minimum of 0.5% of our UK pre-tax profits directly to activities which support society. This has ranged from £10 million in 1987, peaking at £16 million in 2001 and we provided £9.1 million in the 2005 financial year. BT operations also provided a further £11.7 million in funding and support
in kind over the past financial year. In the 2005 financial year, BT made charitable donations of £2 million.
The focus of our community programmes is on big issues where better communication can make a real difference to society. For example, more than 10,500 schools and over two million young people have taken part in the BT Education Programme a drama-based campaign helping children to
improve their communication skills. This activity is supported by our volunteering programme which has several thousand registered volunteers working with schools.
ChildLine, a UK charity, answers 2,300 calls every day but many hundreds more go unanswered. We are working with ChildLine on a campaign to ensure that every childs call for help is answered.
In addition, BT people gave £2 million directly to charities during the 2005 financial year through Give as you Earn, to which BT added a direct contribution of £1 million.
BT played a role in the response to the Asian tsunami of 26 December 2004. We set up a live call centre at the BT Tower to handle the unprecedented number of calls the Disasters Emergency Committee (DEC) was experiencing and also ran the online donation facility. Individual employees and the lines of
business were also involved in fundraising efforts. Sixteen BT engineers travelled to the affected area to help re-establish the telecommunications infrastructure. We made an immediate £500,000 donation.
Our Age and Disability Action team promotes equal access to a wide range of products and services. We work directly with older and disabled people and their representatives to raise awareness of BTs inclusive approach and are continuing to develop our processes to ensure that new products and services
are accessible to disabled people.
For
people with hearing or speech impairments, for example, our textphone
offers easy access to BT TextDirect the service that enables
users to dial direct to other text or voice users. Customers with
visual or mobility impairments benefit from products with large, clear
keypads and cordless or hands-free options. During the 2005 financial
year, we also launched Relate 3000, an inclusively designed phone
and our new BT Text service, which includes a speaking SMS facility.
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