Think Big Blueprint our plan for people and planet

Think Big Blueprintour plan for people and planet

Who we areWe are a leading provider of digital services for consumers and businesses. Telefónica UK is the UK business of the global telecommunications company Telefónica S.A. We’re known to our customers as O2.

We connect people to the things they need and care about, so we think it’s important to address the wider social and environmental issues that concern them.

Think Big is our sustainability programme. It’s designed to break through the notion that today’s problems are too big

to solve. If we think boldly, involve our customers and offer bite-sized solutions to millions of people, together we can make a difference.

With 300 million customers and nearly 300,000 employees worldwide, Telefónica aims to act as an engine for economic, technological and social progress in partnership with its stakeholders.

We work closely to adopt a consistent approach to sustainability, supporting Telefónica’s global risk strategy and taking

opportunities in our local market to apply innovative services for social and environmental gain.

That’s why we make sure that the O2 brand refl ects our global and UK sustainability ambitions. We think it’s the best way to inspire everyone with a stake in our business to get involved.

Part of Telefónica

Contents01 Our sustainability vision02 Standing up for action04 Think Big Blueprint06 Think Big for people10 Think Big for customers16 Think Big for planet22 Our commitments24 Looking forward

Think Big Blueprint 01

To support a new movement towards a sustainable society, we asked Forum for the Future to examine the opportunities. Their fi ndings are available in the report: ‘Connect, Collaborate, Change’ which can be found on o2.co.uk/thinkbig

Our sustainability visionWe believe by thinking big and developing digital innovations we will create new possibilities for people and the planet.

Today’s sustainability challenges demand radical shifts in the way society operates. Our vision is to develop the communication platforms that enable consumers, businesses, employees and communities to live and work entirely differently.

We work hard to manage our social and environmental impacts, ranging from ethical codes of conduct, diversity and privacy to climate change.

We also strive to be effective agents of change, and to ensure that we make a rapid and signifi cant difference, we’ve brought all our activities together under three focus areas: people, customers and planet.

These three areas make up the Think Big Blueprint, our plan for people and planet. They focus our efforts on supporting the next generation to make a difference, enriching our customers’ lives, and reducing the UK’s environmental footprint.

We believe our technology can support new paths to sustainable living – allowing initiatives to spread on a scale that ultimately transforms the critical systems on which everyone depends. We want to draw on the ingenuity of the connected millions to create change together and build a smarter UK with a lower environmental footprint. We believe that the combination of people’s ideas and our support will change things in a powerful and positive way.

Many different perspectives helped to bring our Blueprint to life. We asked Ronan Dunne, our Chief Executive, and three people involved in Think Big to talk about what our sustainability programme means to them.

Standing up for action

02

RONAN DUNNE

“It sounds clichéd to say that O2 has been on a ‘journey’ to become a sustainable business. But that’s a fact.

The pace has moved up a gear in the past three years, thanks to our partnership with Forum for the Future. We’ve worked hard to hardwire sustainability into our operations, make a positive contribution to young people and to encourage our employees and customers

to make changes to their everyday lives. We have much to be proud of, but are not complacent. Everyone in our business can, and must, do more. I’m a fi rm believer that actions speak louder than words. But I recognise, too, the importance of publicly declaring our ambitions and being held to account.”

Ronan Dunne, Chief Executive Offi cer, Telefónica UK

ALBERTO ANDREU

“We strive to create global standards of sustainability across our organisation. We manage risks through consistent policies and programmes – we call this our ‘defence’ strategy – and it provides the building blocks to allow our local markets the ability to innovate and look for opportunities to stand out – our ‘attack’ strategy. We believe this is the best way of balancing global and local stakeholder needs and operating as a responsible business.

We know that information and communications technology (ICT) can play a crucial role in enabling a sustainable society. And Telefónica is well positioned to identify new growth engines for economical, technological and social development through our scale and ability to create global networks. We must seize this opportunity to think big for people and planet.”

Alberto Andreu, Chief Reputation and Sustainability Offi cer, Telefónica, S.A.

“The profound challenges of climate change, food and energy security, and high unemployment around the world are deepening, requiring transformational solutions – urgently. As new technology continues to revolutionise how we live, ICT companies are well-placed to help develop these solutions.

Over the last three years, it’s been really exciting working with O2 as it grapples with these challenges and takes them into the heart of the business. We have been

struck by the integrity of their approach, that has led to signifi cant progress in a number of areas, for example O2 Recycle becoming the third biggest recycling scheme in UK.

Even in such diffi cult times, with austerity the order of the day, sustainability keeps on delivering real benefi ts for customers, communities and shareholders – and we very much look forward to pushing on with those initiatives that are already proving themselves to be game-changers.”

Jonathon Porritt, Founder Director, Forum for the Future

JONATHON PORRITT


RICKY WILLIAMSON

“O2’s Think Big campaign is really getting behind young people and the fantastic things they are doing in their communities, whether that’s a fi lm, drama or sports club, a social campaign or a youth radio station like my project.

O2 has helped me with money, support from employees, mentoring and I’m now doing work experience with O2 helping to develop their mentor programme. Through this they are making people more employable, helping them get jobs and providing them with work experience in different areas of the business. The support they give is invaluable and my project wouldn’t have survived without it.”

Ricky Williamson, Fife Youth Radio currently supported by O2

Think Big BlueprintThe biggest contribution we can make to a sustainable future is as agents of change. By developing technology that helps businesses work in completely different ways; by connecting the ideas of millions of people; by inspiring consumers to join forces and build a smarter UK... that’s how we want to make change happen – by thinking big.

Our Think Big Blueprint focuses on the three areas where we believe we can make the most difference – supporting young people, helping our customers make sustainable choices and reducing our own impacts. These areas are underpinned by three concrete goals and 40 time-bound commitments.

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1mThink Big for peopleBy 2015, we’ll help 1 million young people develop skills for life and lead community projects across the UK

10mThink Big for customers By 2015, our products and services will be helping 10 million people live in easier and more sustainable ways

x10Think Big for planetBy 2015, we’ll deliver carbon benefi ts to customers that are 10 times the impact of our network


Think Big for peopleWith well over a million young people unemployed and the misperception that youth, apathy and social unrest are synonymous, we’re funding and helping people aged 13-25 to bring their ideas and communities to life.

We’re going to increase that support. And help more young people to reach their full potential.

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HOW WE WILL DO THIS

Think Big Youth Programme

O2 Learn

O2 Apprenticeships

Community volunteering

OUR GOAL

By 2015, we’ll help 1 million young people develop skills for life and lead community projects across the UK.


Think Big for people

61

83

193

127

101

245

324

6157

92

204

118

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OUR YOUTH PROGRAMMEHitting the big screen

Our social action programme is designed to empower young people (aged 13-25) who want to lead positive changes for their communities. Through funding, training and support, we help turn their ideas into reality.

Several projects have even grown into national campaigns, with four featuring as short fi lms and shown in cinemas across the UK. Each one highlighted a different social challenge faced by young people today – homelessness, violence, academic achievement and political engagement. One, for example, seeks to transform political education by making it inspiring, relevant and engaging for young people.

View these inspiring fi lms at o2.co.uk/thinkbig

Commitment 3/40

We will improve the lives of over 600,000 young people through local community initiatives, inspired and led by young people.

Where we are

We’ve already launched over 1,600 Think Big projects for young people and communities all over the UK.

East 61 East Midlands 57 London 324 North East 83 North West 204 Northern Ireland 193 Scotland 61 South East 245 South West 127 Wales 101 West Midlands 92 Yorks and Humber 118

Total Projects 1,666

Danny Bartlett, young campaigner backed by Think Big


BEYOND CHALK & TALK

By uploading video clips of great lessons, secondary school teachers can share the UK’s fi nest teaching, free, with students nationwide. At the same time, O2 Learn is building a lasting revision resource for pupils online.

Surrey teacher Sharmila Hanson’s explosive lesson on Newton’s laws of motion beat more than 1,000 videos uploaded during the initiative’s fi rst year. She and her school in Sunbury-on-Thames received our £150,000 prize fund.

o2.co.uk/learn

Commitment 4/40

We’ll deliver 2 million extra secondary school lessons through O2 Learn.

MOBILE VOLUNTEERING

We plan to put volunteers across the UK in touch with community causes using location-based services. The move will inform opted-in customers of opportunities within a few miles of their mobile location.

Commitment 1/40

We’ll connect volunteers to local social action programmes.

Think Big for customersEnergy and fuel costs, health, fi nancial pressures and job security: these are among the issues worrying our customers today. We are developing digital solutions such as O2 Health, Drive Connect, O2 Money and fl exible working services for businesses.

This is the area where we can make our biggest contribution to a sustainable society.

Smart applications not only simplify and enrich everyday lives – they also reduce cost, travel, waste and our environmental footprint.

HOW WE WILL DO THIS

Customer energy savings

Driving

Flexible working

Health and wellbeing

Digital inclusion

Child safety

Finance and shopping

OUR GOAL

By 2015, our products and services will be helping 10 million people live in easier and more sustainable ways.

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Think Big for customers

12

FLEXIBLE WORKINGJoined Up People

At O2, people are given the digital tools to do their jobs anywhere. This cuts travel, reduces cost and improves productivity and work-lifebalance – a fact now recognised by 39% of UK employers. Flexible working is also helping to halve the direct carbon impact of our head offi ce. We’ve launched Joined Up People services to equip other employers with the required connectivity, helping to dispel employee concerns that job security depends on being seen at work.

Commitment 6/40

We’ll have helped over 350,000 UK households save over 300,000 tonnes of carbon in the home.

Commitment 9/40

We will help 125,000 business people work fl exibly, saving 160,000 tonnes of carbon emissions.

CUSTOMER ENERGYTelefónica and BeyWatch

Telefónica’s R&D team has been delivering technology that will allow us to live and work in more environmentally-aware homes and offi ces. An example is Telefónica R&D’s leadership of BeyWatch (Building Energy Watcher), a European research project developing sustainable energy management systems for the home.

Since 2008, Telefónica R&D has been working with a consortium of commercial, academic and other organisations to deliver a smart energy system that is now proving a real success in generating fi nancial and carbon savings. This has included up to 56% savings in the cost of running a washing machine and about 25% reduction in total electricity bills (based on EDF current rates associated with the pilot research projects).

Phil Flaxton, Chief Executive, Work Wise UK

40% of energy consumption across Europe is associated with residential and commercial buildings

39%of UK employers now recognise the benefi ts of home-working


LOW-CARBON DRIVINGTechnology on the move

With Drive Connect O2 and Chargemaster plc have joined forces to boost the market for low-carbon electric cars. We will embed SIM cards across Chargemaster’s network to allow customers to be authorised digitally at top-up points. Later we’ll add applications that enable people to locate their nearest charging point and to pay by mobile. The move complements our growing suite of driving tools, including a GPS system to encourage effi cient, safer and lower-carbon logistics.

Commitment 7/40

We’ll help put in place 10,000 electric car charging points.

Tom Dowdall, Senior Climate and Energy Campaigner, Greenpeace International

FINANCE AND SHOPPINGMoney matters

We know that for many customers every penny counts. We are developing a virtual mobile wallet to allow contact-free payment and person-to-person money transfers. Our location-based technology is creating a mass digital voucher market, potentially saving every customer £100 a month. Priority Moments puts offers from high street brands directly onto phones, redeemable with the fl ash of a screen.

Commitment 17/40

Look for partners who could provide a choice of sustainable offers which will help customers save money and do their bit for the planet.

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DIGITAL INCLUSION Access for all

For older or disabled customers, the right phone can increase independence, safety and quality of life. We aim to bridge the so-called ‘digital divide’ by training our people in how devices can help those living with sight loss or hearing impairment, for example. We’ve started in our fl agship store in London, giving store employees expert sight and deaf awareness training and hiring the fi rst O2 Guru to be fl uent in British Sign Language.

o2.co.uk/accessforall

Commitment 13/40

We’ll open up our services to all, by: · Helping more older people access mobile services and get online for the fi rst time

· Improving our service for people with disabilities

· Training our employees to talk to all our customers confi dently on this issue

CHILD SAFETYWorking with the experts

Harmful contact, such as cyber-bullying, may reach children via social networking or even simple text. Over 80 volunteer Children’s Champions work with the Child Exploitation and Online Protection Centre (CEOP) to deliver practical advice. To make this sustainable, CEOP trains our Champions to work with older teenagers, who then take the message to younger children.

Guido Cybels, Accessibility Consultant

Think Big for customers

£100can be saved a month by our customers using our digital payments


TOWARDS A HEALTHIER NATIONSide by Side

Successful trials with NHS Western Isles paved the way for our national telehealth service, Side by Side. This secure software enables clinicians to use desk computers to conduct remote consultations. It includes video, audio and chat, plus a digital white board for diagrams and annotations. Clinicians can then share case notes, X-rays, scans, ultrasounds, laparoscopies and electrocardiograms in real time. Consultant travel and time, NHS cost and patient cancellations dropped signifi cantly during trials.

Commitment 11/40

We’ll have saved the NHS 1m hours, £50m and 100,000 tonnes of CO2.

James Ward, Medical Director, NHS Western Isles

Think Big for planetThe more we grow the more power we use to serve our customers. We’re doing all we can to use less energy. We’re installing smart meters to understand where we can cut back. We’re using the most energy-effi cient network equipment. We’re buying renewable energy whenever we can. And we’re helping customers make environmental savings that far outweigh our own impact.

But that’s just the start of how we plan to reduce our environmental footprint by 2015.

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HOW WE WILL DO THIS

Energy and operations

Supply chain

Less waste

Mobile phones

Culture and engagement

OUR GOAL

By 2015, we’ll deliver carbon benefi ts to customers that are 10 times the impact of our network.


Think Big for planet

We are developing the UK’s most carbon-effi cient network, putting our own operations under the microscope and looking for ways to reduce the footprint we leave on the world. Here are our main commitments. You can fi nd them all at the back of this brochure, or by visiting o2.co.uk/thinkbig

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Commitment 19/40

We’ll buy 100% renewable energy for all sites where we control the energy bill.

Commitment 20/40

We’ll have at least one carbon neutral site generating its own renewable power.

ENERGY & OPERATIONSRenewable resources

O2 consumes around a thousandth of all electricity generated in the UK. Our renewable energy contract supports all energy supplies we buy directly. We aim to maintain that and to encourage partner operators to choose renewable energy for shared sites. Wherever possible, we use existing structures to locate our network equipment, or we share masts with other operators in a bid to reduce the industry’s overall environmental impact.

Commitment 18/40

We’ll halve the carbon emissions from our network, relative to data traffi c.

Smart energy

A £2 million investment in 7,000 smart meters already underpins our energy-saving efforts in real time. We plan to add another 4,500 meters as we head towards a 2015 target to improve energy effi ciency by 30% compared to 2007 levels.

Where feasible, we’re replacing air conditioning with highly effi cient free cooling and looking at micro wind turbines for remote sites.

Emma Fryer, Associate Director,Climate Change Programmes, Intellect

80%Around 80% of the electricity we use is to power our network


SUPPLY CHAINEthical sourcing

We ask major suppliers to cut their environmental impacts and increase their contribution to society – and then to work with their own suppliers similarly. This helps us to eradicate the use of confl ict minerals and hazardous materials and award tenders to those who offer the most sustainability benefi t. In future we will set up a supplier forum to share best practice. We are also putting weight behind the UK’s non-profi t sector by buying its goods and endorsing the Social Enterprise Mark.

Commitment 23/40

We’ll take sustainability into account in every major purchasing decision.

FIONA MCCALLUMA view from an employee

“Think Big is important to me as I feel we have left behind the days when environmental responsibility could be left to the passionate few. The threat of climate change has really brought home to me the consequences of not doing enough to protect our environment, both now and in the future. The time for sitting back and leaving things to everyone else has passed: we all need to do what we can, no matter how little, as every little bit contributes to the big change we need. As we like to say... start small, think big!”

Fiona McCallum, Customer Service Manager, Glasgow

£3bnWe spend £3bn with suppliers every year

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MOBILE PHONES AND HARDWAREPromoting recycling

O2 Recycle lets people exchange old phones and other gadgets for cash. Devices are processed for re-use or recycling, or stripped down for responsible disposal. Any profi ts go towards our youth programme. It’s just one of the ways we are extending the life of mobiles, including SIM-only tariffs and the UK’s fi rst smartphone leasing service O2 Lease.

Transparent portfolio

Eco rating is our scheme to highlight the sustainability credentials of mobile phones. The majority of the phones we offer earn a score out of fi ve, based on: environmental impact; how it helps people lead better lives; and the ethical performance of the manufacturer. This is the only consumer label to give mobile customers the complete picture. It was devised with our expert sustainability partner Forum for the Future.

Commitment 37/40

We’ll require that the Eco rating score for each manufacturer’s range of phones never drops.

Customers think we should consider the planet during the whole life of their mobile phones. We agree.

Charging ahead

Phone recharging is the biggest source of a device’s energy use, so we have developed a universal charger that powers down automatically once the handset battery is full. It’s compatible with over 96% of the phones we sell, which means that replacement chargers and their packaging and waste can largely be phased out. Now we’re working with global industry peers to deliver an industry-standard USB connector.

Commitment 34/40

We’ll no longer offer a new charger as standard with a new phone.


96%of the phones we sell are compatible with our USB connector


CULTURE ANDENGAGEMENTGetting our people involved

We aim to roll out sustainability responsibilities for all employees as well as awareness training for new recruits. We want Think Big to reach every corner of O2, and beyond. Our EcoTeam leaders, for example, spread the message at work, home and in the community – highlighting energy, travel, water and waste.

Commitment 38/40

We’ll establish individual sustainability responsibilities for all O2 employees, linked to rewards and recognition.

WASTE Reducing rubbish

A new mixed-waste recycling scheme in offi ces and stores will enable us to stop sending general waste to landfi ll by 2015. We’re also working with suppliers to cut packaging and paper instructions from 100% of devices and will reduce shopping waste by removing plastic bags from our stores.

Commitment 33/40

We’ll send zero waste from offi ces and retail stores to landfi ll.

Think Big Blueprint – our commitments By 2015, we will:

Think Big for customers CUSTOMER ENERGY SAVINGS Have helped over 350,000 UK households save money and over 300,000 tonnes of carbon in the home. (6/40)

Have helped install 10,000 electric vehicle charging points (with information on how to fi nd and use them). (7/40)

DRIVING Have helped 500,000 drivers save 1.5 billion litres of fuel and 3.35 million tonnes of CO2 by helping them drive more effi ciently and more safety. (8/40)

FLEXIBLE WORKING Have helped 125,000 business people work fl exibly, cutting 500 million travel miles and 160,000 tonnes of carbon emissions. (9/40)

HEALTH AND WELLBEINGHave given 100,000 customers the tools and information to look after their health and wellbeing better. (10/40)

Have saved the NHS one million hours of healthcare staff time, £50 million, and 100,000 tonnes of carbon through O2 Health services like digital pens and Side by Side. (11/40)

Have helped 400,000 vulnerable or older people in the UK to enjoy more independent, safer lives through our digital services. Our telehealth services will have improved the quality of life of a signifi cant number of people in the UK with chronic health conditions. (12/40)

DIGITAL INCLUSION Continue to open up our services to all. We’ll focus on:

• Helping older people access mobile services and get online.

• Improving our service for people with disabilities.

• Training our employees to talk to all our customers confi dently on this issue. (13/40)

Promote the inclusion of people with disabilities in the world of work through the launch of the Telefónica Ability Awards in the UK. (14/40)

CHILD SAFETYSupport the objectives of the CEO Coalition, a voluntary European Union initiative to make the internet a better place for children. (15/40)

FINANCE AND SHOPPINGHelp young people get to grips with budgeting, money management and fi nancial basics. (16/40)

Look for partners who could provide a choice of sustainable offers which will help customers save money and do their bit for the planet. (17/40)

Think Big for peopleUse Priority Moments, our location-based offers service, to connect volunteers to local community initiatives and social action programmes. (1/40)

Have backed 5,000 young people leading community projects across the UK. (2/40)

Have improved the lives of over 600,000 young people through the development of local community initiatives, inspired and led by young people. (3/40)

Have delivered 2 million extra secondary school lessons through O2 Learn. (4/40)

Have supported 4,000 young people to gain work skills and experience to help them get a job or start an enterprise, and through apprenticeships we’ll support young people to get into work through training on the job. (5/40)

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For more information visit us online o2.co.uk/thinkbig

ENERGY AND OPERATIONSHalve the emissions from our network by 2015, relative to data traffi c. (18/40)

Procure 100% renewable energy for all sites where we control the energy bill. (19/40)

Have at least one carbon neutral site, achieved through renewable on site generation. (20/40)

Reduce our absolute carbon emissions in our offi ces and retail stores by 25%. (21/40)

Be using 25% less water in our offi ces and switch sites. (22/40)

SUPPLY CHAINTake sustainability into account in every major purchasing decision. (23/40)

Have asked all major suppliers to set up programmes to cut their environmental impact and to increase their contribution to society, including the setting up of community programmes. (24/40)

Lead the industry to clean up substances of concern, delivering minimum sourcing standards and deadlines for the elimination of unacceptable substances. (25/40)

Put in place processes to get more SMEs and social enterprises into our supply chain. (26/40)

Have launched a Supplier Forum to promote sustainability innovation and best practices in our supply chain. (27/40)

Have enhanced our ethical trading by strengthening our assessment of our suppliers’ management of corporate responsibility in their own supply chain. And from 2014 we’ll require all relevant suppliers to routinely complete Electronics – Tool for Accountable Supply Chains assessments (E-TASC). (28/40)

Have audited all our high-risk suppliers against our Responsible Supply Chain Policy. (29/40)

Work with suppliers to get more young people into work in the UK. (30/40)

LESS WASTEHave signifi cantly reduced packaging and operating instructions for all the mobile phones we sell. (31/40)

Adopt a zero-plastic bag policy and reduce the volume of paper used in receipts by 50%. (32/40)

Send no waste from our offi ces and retail stores to landfi ll by 2015 (where facilities exist). (33/40)

MOBILE PHONESNo longer offer a new charger as standard with a new phone. (34/40)

Be the UK network that champions making mobile phones last longer, by:

• Promoting Simplicity (our SIM-only tariff).

• Encouraging software updates.

• Reducing customer returns rates. (35/40)

Be recycling more phones through O2 Recycle. And we’ll be actively promoting the use of refurbished phones. (36/40)

Make sure that the sustainability performance of the phones we sell never drops, as measured though our Eco rating score. (37/40)

CULTURE AND ENGAGEMENTHave established individual sustainability responsibilities within all O2 employees’ roles and link to our reward and recognition programme. (38/40)

Make sure all new starters get information on our sustainability strategy when they arrive. (39/40)

Further incentivise involvement in sustainability volunteering through an associated qualifi cation. (40/40)



Looking forwardA sustainable business depends on innovation and collaboration. O2 is keen to work with like-minded people who see the potential for digital technology to fast-forward social and environmental change.

We’ve talked to a variety of groups to help map out the Think Big Blueprint, from sustainability experts and our people to customers, suppliers and environmental activists.

Our research used surveys, interviews, focus groups with consumers and workshops with employees, as well as discussion and presentations among corporate customers, charities and NGOs.

We shared all the feedback with senior management before our Sustainability Taskforce, chaired by our

Chief Executive Ronan Dunne, sat down with Forum for the Future to develop and fi ne-tune a series of goals and commitments.

As we implement the Think Big Blueprint, our aim is to develop more initiatives that help people save money and time while also helping the planet. We also want to inspire and support others to bring their ideas to life.

In addition, we plan to create a stakeholder panel to help shape our Blueprint in the future.

We welcome your views so please contact us at: [email protected] or o2.co.uk/thinkbig

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Think Big Blueprint, version 1.0Launched: February 2012

More to come from TelefónicaAt a UK, European and global level, society is facing a challenging landscape. We need greater innovation and entrepreneurship to drive economic growth and meet social needs. We have to deliver a sustainable future. We must ensure everyone, particularly today’s generation of young people, has the opportunity to prosper. We also need to drive towards an inclusive society to ensure access for all. These are amongst the dynamic range of issues that affect society, and which we believe Telefónica can help address. The Think Big Blueprint for the UK, is one element of Telefónica’s approach in Europe and globally. We will regularly update how we can Think Big together.

For further details on Telefónica’s global approach to corporate responsibility and sustainability, see crandsustainability.telefonica.com/en/sustainability_telefonica

Forum for the Future is a non-profi t organisation working globally with business and government to create a sustainable future. forumforthefuture.org

for people and planeto2.co.uk/thinkbig

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Think Big Blueprint our plan for people and planet