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Telstra Corporate Responsibility Report 2008

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Turlough Guerin GAICD FGIA
Turlough Guerin GAICD FGIA

Executive summary Society Key achievements in 2007/08 • Launched our landmark publication Towards a High- Bandwidth, Low-Carbon Future: Telecommunicationsbased Opportunities to Reduce Greenhouse Gas Emissions. The report quantifies the possible carbon and dollar savings that could be achieved by businesses, households and governments by using telecommunications networks to avoid or reduce their carbon emissions. • Achieved a rating of 87 per cent in the 2007 Corporate Responsibility Index. This included outstanding results in community management (100 per cent). • Increased Telstra’s score from 36 per cent in 2007 to 70 per cent in the 2008 Dow Jones Sustainability Index, a global analysis of corporate responsibility leadership. This score is well above the industry average of 53 per cent. • Launched the Telstra Foundation’s Spotlight on Cyber Safety program with a commitment of $3 million over three years to help children develop the skills to be safe when online and using mobile phones. • Helped deliver the SCAM Watch Fraud Fortnight awareness campaign to over 2.7 million BigPond® customers, 550,000 Trading Post users and 40,000 employees. The campaign is an activity of the Australasian Consumer Fraud Taskforce, of which Telstra is an industry partner. • Invested $4.9 billion to continue the build out of the Next G™ wireless broadband network; continued deployment of the Telstra Next IP™ network; creation of new and advanced business support and operating support systems; and other investments to transform the delivery of telecommunications services in Australia. • Contributed $300,000 to a new research facility for specialised radio frequency research into the possible health impacts from exposure to electromagnetic energy. Telstra is collaborating with Swinburne University of Technology on this initiative. Planned actions for 2008/09 • Improve the relevance, transparency and accessibility of Telstra’s corporate responsibility information on Telstra’s website. • Conduct a review of Telstra’s human rights position and practices to assess performance against international standards. • Introduce feature sections on the nowwearetalking website to provide a platform for public discussion and debate about the environment and the National Broadband Network. • Reduce paper consumption by continuing to transform our supply chain operations to effective, electronic business, including online drafting and execution of contract documentation.

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b Corporate Responsibility Report 2008
2 MessagefromourCEO 1 Approach 2 Executivesummary 2 Telstraprofile 6 CorporategovernanceatTelstra 7 Corporateresponsibilitygovernance 8 Stakeholderengagement 9 Ourmaterialissues 12 1 Societymatters 14 Influencingpublicpolicy 15 - NationalBroadbandNetwork - Climatechange - Internetsafetyandsecurity - Electromagneticenergy Socio-economiccontribution 22 - Economicimpact - Productivityandinnovation Influencingcorporate responsibilityoutcomes 26 - Suppliers - Awards 2 Communitiesmatter 28 Disasterrelief 29 Communitybusinesspartnerships 30 TelstraFoundation 30 Sponsorship 32 Volunteering 33 3 Employeesmatter 36 Buildingaworld classtalent base 37 Enhancingdiversity and opportunity 38 Providingahealthy and safe environment 42 4 Customersmatter 48 Enhancingour customers’experience 49 - Customer service commitments - Informingour customers - Customer safety and security - Customer privacy Ensuringaccessfor everyone 53 - People on lowincomes - People with disability - Ruraland regionalcustomers - Indigenouscommunities - TelstraConnected Seniors® 5 Environmentmatters 58 Engagingemployees 59 Improvingour energy efficiency 60 Managingresource efficiency and waste 62 Greenhouse gasemissions 64 Managingour land use appropriately 65 Compliance 67 Environment data 69 GlobalReporting InitiativeIndex 74 Contents
1 About this report This is Telstra’s sixthannualcorporate responsibility report.Itcoversthe2007/08 financialyearfortheAustralianoperations of TelstraCorporationLimited(excluding Sensis,Telstra’sinformationandadvertising business,unless otherwisespecified). Afullaccountofthecorporateresponsibility performanceofSensiscanbefoundat www.about.sensis.com.au This reportcoversTelstra’seconomic, socialandenvironmentalcontributions andperformanceduring2007/08and is intendedtoprovidecomprehensive informationtothefullrangeof Telstra’s stakeholders. Wehavepreparedthisreportwith referencetotheGlobalReporting Initiative (GRI) SustainabilityReporting Guidelines (version 3.0)and theGRI TelecommunicationsSectorSupplement. Feedbackonthereportiswelcome. PleaseemailNancie-LeeRobinson, SeniorAdvisor,CorporateResponsibility, atcsr@team.telstra.comor participatein ouronlineforum atwww.nowwearetalking.com.au Message from our CEO Insomeway,TelstratouchesnearlyeveryAustralian,every day.Our day-to-day businessand ongoingtransformation are avital threadinAustralia’seconomicandsocialfabricandthisisaresponsibilitywetakeveryseriously.It’sattheheartofeverythingwedo. CorporateresponsibilityatTelstrastartswithmeandflowsthroughout the company.Our approach to corporate responsibility beginswithasimpleandstraight-forwardcommitmenttoprincipled decision-making.Whether it isproviding good jobs at good wages,servingtheneedsofourcustomerswithnewand innovative productsand solutions,pursuingresource efficiency acrossthe businessorplayingaroleindevelopingsolutionstothebigsocialand environmentalissuesof the day – fundamentalprinciples guidetheway. AtTelstra,weknowthatitmakesbusinesssensetoappreciate the impact of our businessdecisionson the larger community. Thereisanalignment,forexample,betweenreducingcostsand reducingthe environmentalimpact of our operations.The report commissionedbyTelstra,TowardsaHigh-Bandwidth,Low-CarbonFuture:Telecommunications-basedOpportunitiestoReduce GreenhouseGasEmissions,putssolidideasintothemarketplace about how wecan use telecommunicationsnetworks to reduce businesscostswhilealsoreducingAustralia’scarbonfootprint,most of which are achievable today. Alreadythreeyearsthroughourfive-yeartransformation,we are changingnot just our company,but the way Australianswork, playandmovearound.Ournextgenerationnetworksand services,which provide unparalleled coverage and speeds,are providing acustomerexperiencethatissimple,integratedandintuitive.We’re bringing Australians closer together.We’re improving business productivity.Andwe’reincreasingAustralia’sabilitytocompete globally. Corporateresponsibilityisintegraltoeverythingwedo.It’sabout makingprincipled decisionswith fullconsideration of alltheir implications–social,environmentalandeconomic.Thishelpsussucceed and deliver for our customersand shareholdersbecause actingresponsiblymakesgoodbusinesssense.Ithelpsusto be more efficient,increasesproductivity and makespeople proud to workforTelstra. Oursixthcorporateresponsibilityreporthighlightsourcontributions during 2007/08 and clearly sets out the actions we have plannedtobuildonoursolidperformanceinthefuture. SolTrujillo,ChiefExecutiveOfficer November2008
Executive summary Society Keyachievementsin2007/08 • LaunchedourlandmarkpublicationTowardsaHigh- Bandwidth,Low-CarbonFuture:Telecommunications- basedOpportunitiestoReduceGreenhouseGasEmissions. Thereportquantifiesthepossiblecarbonanddollar savingsthatcouldbeachievedbybusinesses,households andgovernmentsbyusingtelecommunicationsnetworks toavoidorreducetheircarbonemissions. • Achieveda ratingof87percentinthe2007 Corporate ResponsibilityIndex.Thisincludedoutstandingresults incommunitymanagement(100percent). • IncreasedTelstra’sscorefrom36percentin 2007 to70 per centinthe2008 Dow JonesSustainabilityIndex,aglobal analysisofcorporateresponsibilityleadership.Thisscore iswellabovetheindustryaverageof53percent. • Launched theTelstraFoundation’sSpotlightonCyber Safetyprogramwithacommitmentof$3 millionover threeyearstohelpchildrendeveloptheskillstobesafe whenonlineandusingmobilephones. • HelpeddelivertheSCAM Watch FraudFortnightawareness campaigntoover2.7 millionBigPond®customers,550,000 TradingPostusersand40,000employees.Thecampaign is anactivityoftheAustralasianConsumerFraudTaskforce, ofwhichTelstraisanindustrypartner. • Invested$4.9billiontocontinuethebuildoutoftheNext G™ wireless broadband network;continued deployment of the Telstra Next IP™network;creation of newand advanced business support and operating support systems;and other investmentstotransformthedeliveryoftelecommunications servicesin Australia. • Contributed $300,000 to anewresearch facility for specialised radio frequency research into the possible health impactsfromexposure to electromagneticenergy. Telstraiscollaboratingwith Swinburne University of Technology on thisinitiative. Planned actionsfor 2008/09 • Improve the relevance,transparency and accessibility of Telstra’s corporate responsibility information on Telstra’s website. • Conduct a review of Telstra’s human rights position and practices to assess performance against international standards. • Introduce feature sections on the nowwearetalking website to provide aplatform for publicdiscussion and debate about the environment and the National Broadband Network. • Reduce paper consumption by continuingto transform our supply chain operations to effective,electronic business, including online drafting and execution of contract documentation. Approach
3 Community Keyachievements in2007/08 • Telstra’s investmentincommunityactivitieswas valued at$29.2 millionbytheLondonBenchmarkingGroup. Thiscompareswith$18.8millioninthepreviousyear. • Provided $3.9 million throughtheTelstraFoundation tomorethan667 projectstohelpconnectchildrenand young peopletotheircommunities. • Provideddomesticdisasterreliefservicestocustomers affectedby:bush fires inWillungainSA,andin Parkerville andStoneville inWA;floodsinthecentralandnorth coastofNSW;andfloodsinEmerald,Rockhampton, Mackay,Charleville,GoldCoast,Beenleigh,Jimboomba, Beaudesert,Rathdowney,Boonah,Clifton,Allora, WarwickandKillarney inQld. • Provided disaster relieftocustomersaffectedby cyclone Nargis inMyanmar (Burma)andtheearthquakein SichuanProvinceinChina. • Committed$750,000throughtheTelstraFoundation tosupportAbracadabra,auniqueinteractiveliteracy softwaretoolthatwillhelpIndigenousprimaryschool childrenimprove theirliteracyskills.Abracadabrais a projectofCharles DarwinUniversity. • Announced anewsponsorshippartnershipwithWWF Australia toproducea seriesofcommunityservice announcementstohighlighttheendangermentof manyAustraliannativeanimals. • PilotedtheTelstra FoundationCommunityLeadership program,linking Telstraexecutiveswithnon-profitleaders ina 12monthmentoringrelationshiptohelpbuildthe capacityofcommunityorganisations. Plannedactionsfor2008/09 • To developandpilotanemployeematchedgivingprogram todonatefundstocommunityorganisationsnominated byTelstraemployees. • Toprovideover$3.5 millionin grantsthroughtheTelstra Foundationtohelpcommunityorganisationsconnect childrenandyoungpeopletotheircommunities. Employees Keyachievementsin2007/08 • Achieved74percentemployeeengagement,indicating theextenttowhichemployeesvalue,enjoyandbelievein Telstraandwhattheydo.Thisresultisbasedonthe 2008 TelstraEmployeeEngagementSurveywithan84 per cent responserate. • Investedover$75 millioninlearninganddevelopment forouremployees,representingan investmentofaround $1,600peremployee. • Employeescompleted573,763onlinelearningcourses throughLearn.Achieve,and6,500 employeesparticipated inFrontlineLeadershipprograms. • Developed252newjob-specifictrainingcoursesthrough theTelstraLearningAcademy. • ConductedTelstra’sinauguralwomen’sconference, Stand.Out,whichwasattendedby150womenand focusedonperformance,careerdevelopmentand the advancementofwomenatTelstra. • PilotedtheMyMentorprogramforTelstrawomento increasestrategicbusinessskills.Basedonoutstanding feedbackfromthe21participantsoftheinitialcourse, theprogramwasrolledouttoover440womenacross the organisation. • Awarded an Excellence in Auslan Interpreting Award (private sector organisation category) bythe Australian Sign Language Interpreters’Association to publicly recognise Telstra’s consistent support for working with interpretersand long-standingcommitment to customers, shareholdersand employeeswho are deaf. Planned actionsfor 2008/09 • Increase the proportion of women inmiddle and senior management to 30 per cent. • Increase Indigenous employment opportunities by 25 per cent bythe end of December 2009 as part of Telstra’sIndigenousAction Plan 2008-11. • Maintain the highest (Comcare Tier 3) rating across all Health,Safety and Environment categories. • Achieve aminimum of 10 per cent employee participation inanew online Health Risk Appraisal byAugust 2009 to improve employee understandingof health risk factors. Approach
4 Customers Keyachievements in2007/08 • Assistedmorethanonemillionlow-incomecustomers toconnectormaintaintheircommunicationsservices. Thetotalbenefitprovidedwasinexcessof$200million. • LaunchedTelstra ConnectedSeniors®in August2007with over$750,000 ofgrantfundingprovidedto110community organisations tohelpolderAustralianslearntousemobile andinternettechnology. • Closed theCDMAnetworkon28April2008andcompleted themigration (commencedinOctober 2006)ofcustomers totheNextG™network,providingmoreadvancedthird generationmobiletechnology. • Openedthelargeststate-of-the-artinteractive telecommunicationsstoreinAustralia,T[life]™in Melbourne inJune 2008afterthesuccess ofT[life]™ Sydney,whichopenedinNovember2007. • Telstra EnterpriseandGovernmentCustomerCarewas awardedcertificationtotheInternationalCustomerService StandardbytheCustomerServiceInstituteofAustralia, demonstrating thatourorganisationhasapassionfor customerexcellenceandtheprocessestodeliver. • Receivedthe2007 CorporateCommunityPartnership Awardfrom theCountryAwarenessNetworkVictoria, recognising Telstra’sexceptionalcommitmenttoVictoria’s ruraland regional communitiesthroughour supportand assistancetoconsumersand clientsaffectedby HIV/AIDS orHepatitis C. Plannedactionsfor2008/09 • ExtendtheTelstraBillAssistanceProgramtocovermobile and internetbillstorecognisethechangingnatureof communicationsusageamonglow-incomeAustralians. • Provideaweb-basedinquiryformforinformationabout accessiblefeaturesofNextG™mobilehandsetstoenable peoplewithadisabilitytochoosetherightmobilehandset fortheirneeds. • Buildonthesuccess ofourworldclass T[life]™storesby openingorrefreshingmorethan80 T[life]™storesacross Australia,toprovidearetailexperiencelikeno otherfor ourcustomers. • DeployenhancedHSPA(HighSpeedPacketAccess Plus) asanationalsoftwareupgradetoincreasepeak network downlinkspeedsacrossournationalNextG™network fromthecurrent14.4Mbps1 to21Mbpsbytheendof2008. • WithsupportfromtheNTGovernmentandRioTintoAlcan, Telstrawillrollout800kmsoffibretoconnectninenorthern ArnhemLandIndigenouscommunitiesandthetownship ofNhulunbuytothenation’sfibreopticbackbone. Environment Key achievementsin 2007/08 • Saved25,332tonnesCO2equivalentthankstoprojects targetingenergyefficiencyandrecyclingofpaper, cardboardandwood–comparabletothegreenhouse gasemissionsfrom1,800averageAustralianhouseholds forayear. • Reduced the consumption of office paper by 35,900 reams, a14 per cent reduction from 2006/07.This represents a decrease from7.2 to 6.5 reamsper employee. • Reduced the number of vehicles inour fleet by 17 per cent with acorresponding reduction in fleet energy use of 16.8 per cent. • Operated 10,265 solar powered sites,includingexchanges, radio terminals,smallrepeater stationsand pay phones. Telstraisone of Australia’slargest usersof solar power. • EstablishedtheClimateChangeReviewGrouptomonitor andpromoteTelstra’sresourceconservationprograms and activities. • Established aPackagingInnovation Group to improve efficienciesand reduce the environmental impact of our packaging. • Completed aLife Cycle Assessment to determine the relative environmentalimpactsof online and conventionalpaper billing. 1 Peaknetworkdownlinkspeed.Actualcustomerdownloadspeeds willbelessandwillvaryduetotrafficloading,distancefromthecell, localconditions,hardware,softwareandotherfactors. Approach
5 Plannedactionsfor2008/09 • Calculatethecarbonfootprintsofallbusiness units andcorporategroups. • Determinethecarbonintensity(tonnesofCO2e/unit of service)ofTelstra’sEnterpriseandGovernment service offerings. • Increase the2009 EmployeeEngagementSurveyscore for‘environmentresponsibility’. • Completea studyonthehydrogenfuelcellfacility andsolarpanelsinstalledatourMelbourneheadquarters toassess theirpotentialuseinTelstra’snetwork andbuildings. • EnhanceTelstra’s drivereducationprogramwith anawareness programtoencourageourfleetdrivers toadoptgreendrivingtechniquestoreducefuel consumptionandCO2emissions. Approach Telstra touchesnearly everyAustralian, everyday
6 Telstra profile Telstra is the only communications company in Australia that canprovide atruly integrated telecommunications experience acrossfixed line,mobiles,broadband,information, transactions,search,and pay TV.We have one of the best known brands in the country and provide 9.4 million Australian fixed line and more than 9.3 million mobile services,including 4.4 million 3Gservices. Telstraprovides: • basic accessservices to most homes and businesses in Australia; • localand longdistance telephone callsin Australia, and internationalcallsto and fromAustralia; • mobile telecommunicationsservices; • broadband accessand content; • acomprehensive range of dataand internet services (including through BigPond,Australia’s leading internet service provider); • management of business customers’IT and/or telecommunicationsservices; • wholesale services to other carriers,carriage service providersand Internet Service Providers; • advertising,search and information services (through Sensis®,Australia’s leading directory and search company);and • cable distribution servicesfor FOXTEL’scable subscription television services. Performanceindicator 06/07 07/08 Financial Salesrevenue $23.7billion $24.7billion EBIT $5.8billion $6.2billion Profitaftertaxandminorityinterests $3.3billion $3.7billion Ordinarydividends(centspershare) 28 28 Socio-economic Totalworkforce 47,840 46,649 Totaldomesticworkforce 35,706 33,982 Wagesandsalaries $4billion $4.2billion Local,stateandcommonwealthtaxes $1.8billion $1.7billion Dividendstoshareholders $3.4billion $3.4billion Accruedcapitalexpenditure $5.9billion $4.9billion Community LondonBenchmarkingGroup(LBG)measureofcommunityinvestment $18.8million $29.2million Employees Employeeengagement 73% 74% Womeninmanagementroles 25.8% 24.6% Lost timeinjuriesfrequencyrate(permillionhoursworked) 2.14 2.54 Highlyeffective/effectiveHealthSafetyEnvironment(HSE)audits 88% 71% Learningdevelopmentinvestment $60million $75million Learningdevelopmentinvestmentperemployee $1,500 $1,626 Keyperformanceindicators Approach
7 Performanceindicator 06/07 07/08 Environment Greenhousegasemissions(tonnesCO2e) 1,390,306 1,500,803 Greenhousegasemissions(tonnesCO2e/$millionrevenue) includingunmeteredsites N/A 60.4 Greenhousegasemissions(tonnesCO2e/$millionrevenue) excludingunmeteredsites 58.7 57.8 Greenhousegasemissionstotalsavings(tonnesCO2e) 173,998 173,686 Totalwasterecycled(tonnes) 33,266 32,981 Wasterecycled 65% 69% TotalenergyUse(GJ) 5,848,601 6,064,687 TotalenergyUse(GJ)/$millionrevenue 247.1 244.3 Volumeofofficepaper(reams) 256,774 220,856 Volumeofpaper(reams)peremployee 7.2 6.5 Watersavings(kilolitres) 87,318 52,019 Telstraowns 50 percentofFOXTEL,anditsinternational businesses include: • CSLNew World,one ofHongKong’sleadingmobile operators; • TelstraClear Limited,thesecondlargestfullservice carrierinNewZealand; • ReachLimited,a providerofglobalconnectivityand international voiceand satelliteservices;and • majoritystakes in SouFunHoldingsLimited,a leading realestateandfurnishingswebsiteandNorstarMedia andAutohome/PCPop,twoChineseinternetbusinesses operating autoanddigitaldevicesites. Corporate governance at Telstra The Telstra BoardhasdeterminedthatTelstra’scorporate objectiveistocreatelong-termshareholdervaluethrough providing integratedcommunication,informationand entertainmentservices,andcustomerfocusedsolutions. The Telstra Boardis committedtoexcellencein corporate governanceandtheenhancementofitsshareholders’ interests.Ourmain corporategovernanceand Board practicesaredescribed inourAnnualReport,available atwww.telstra.com.au/abouttelstra/investor Weregularly review andupdateourcorporategovernance practices.TheBoardevaluatesand,whereappropriate, implementsrelevant proposalswiththeaimofensuring that wecontinuetodemonstrateourcommitmenttogood corporate governance,havingregardtodevelopmentsin marketpracticeandregulation. WecomplywiththeASXCorporateGovernanceCouncil’s PrinciplesofGoodCorporateGovernanceandBestPractice RecommendationsreleasedinMarch2003.Followinga reviewofTelstra’sgovernanceframeworkandinlight ofthereleaseoftherevisedASX CorporateGovernance PrinciplesandRecommendations(2nded)(RevisedPrinciples Recommendations),theTelstraBoardmadethedecision to adopttheRevisedPrinciplesRecommendationsforthe2008 financialyear,aheadofthetimethattheybecomemandatory, asencouragedbytheASXCorporateGovernanceCouncil. The Telstra Values provide the most fundamental direction onwhat type of company weaspire to be,and what type of behaviour we regard asappropriate.Asa values-driven company wego beyond simply complying with minimum standards of personal conduct.Our goalisto make every decision and every action one that we can be proud of. Keyperformanceindicatorscontinued Approach
8 Corporate responsibility governance AtTelstra,ourcommitmentto corporateresponsibilitybegins with asimple andstraight-forwardcommitmenttoprincipled decision-making inallthatwedo. The Telstra Values,Telstra’sBusinessPrinciplesand CompanyPolicies,including theCodeofConduct,setout the practices,principlesand standardsofbehaviourTelstra expectsemployees and contractorstoadoptin performing their work.Togethertheyreflectourobligationsand underpin thewayweworkwithourcustomers,ourshareholders, our colleagues,theregulatorybodieswedealwith, our suppliersandstakeholdersinthecommunity. DavidQuilty,GroupManagingDirector,PublicPolicy Communications,has responsibilityforTelstra’sCorporate ResponsibilityBusinessPrinciple,whichstatesthat, from aprincipledperspective,ourprimarycorporate responsibilitiesareto: • providegoodjobsatgoodwages; • servetheneedsofourcustomers; • increaseshareholdervalueandprotectshareholderinterests; • provide good stewardshipoftheenvironment–first and foremostbyconservation(ie,byincreasingefficiency inthewayweuseresources),reducing operatingcosts andminimising ourenvironmentalfootprint; • contributeresources–people,money,technology, products andservices–tosupportthecommunitiesin whichweoperateandtheneedsofthelargersociety;and • advancethenationalinterestbystrengtheningthecapacity ofthenation’s telecommunicationsnervecentre,operated by Telstra,andprovidingthenationafoundationfor economic growth,productivityimprovement,sustainable prosperity,andglobalcompetitiveadvantage. Allmanagersandsupervisorsarerequiredtotakeall reasonablestepstoensurethatemployeesandcontractors undertheirsupervisionhaveaccessto,areawareof,and complywith,allrelevantTelstraBusinessPrinciplesand the relatedcompanypolicies.Telstraexpectsitsmanagersand supervisorstofosteraworkenvironmentthatencourages ethicalbehaviourandcompliance. As such,corporateresponsibilityispartofourdaytoday activities.Management,supervisorsandstaffaresupported bytheCorporateResponsibilityandCommunityInvestment team,whichprovidestheoperationalmanagementand coordinationofcorporateresponsibilityactivitiesand communications.In addition,workinggroupsareestablished toaddresskeysocialandenvironmentalissuesastheyarise. Forexample,in 2007/08 theClimateChangeReviewGroupwas establishedtoensurea coordinatedapproachtomanaging climatechangeissues. Reportingandbenchmarkingperformance Telstraiscommittedtoimprovingourcorporateresponsibility performance.Weparticipateinexternalsurveystobenchmark ourperformanceandproduceanannualreporttohighlight ourachievementsandchallenges. In 2007/08,TelstraparticipatedintheCorporateResponsibility Index,achievingaratingof87percent,withoutstanding resultsincommunitymanagement(100 percent).Wewill betakingaleaveofabsencein2008/09 inordertofocuson implementingstrategiestofurtherimproveourperformance. In2008,wealsocompletedasubmissiontotheDowJones SustainabilityIndexandachievedaratingof70percent. Thisindexidentifiescompaniesthatleadpeersincreating long-termshareholdervalueandassessesabilitytomanage riskandleverageupsideacrosstheeconomic,socialand environmentalagenda. To measure our community contribution,Telstra participated in the London Benchmarking Group (LBG) process for the second time in2008.LBG Australia/New Zealand isa business membership organisation that providesaframework for membersto measure and benchmark their corporate community contribution. For 2007/08,Telstra’s corporate community contribution wasvalued at$29.2 million,building on the contribution of $18.8 million during2006/07.The increase isattributed to the inclusion this year of a wider range of Telstra’s community investment activities,the one-off contributions to support victims of cyclone Nargis in Myanmar and the earthquake in the Sichuan province of China,and Telstra’s voluntary contributionsin the lead up to World Youth Day 2008. Telstra has reported annually on its corporate responsibility performance since 2003 through its Corporate Responsibility Reports.These reportscan be accessed on our website at www.telstra.com.au/abouttelstra/csr/reports.cfmalong with summary reportsof CRI,DJSIand LBGresults. 2003 2004 2005 2007 Corporate Responsibility Indexresults 88.49% 90.21% 88.6% 87% Approach
9 Stakeholder engagement AsacompanythattouchesthelivesofnearlyeveryAustralianeveryday,Telstrahasawiderangeofstakeholdergroupsand along historyofengagingwiththem.Consultationanddialoguewithkeystakeholdergroupshelpstogatherinputandideas, inform ourdecision making,strengthenourrelationshipsandbuildtrust.Telstramakesa genuineefforttoengagewithand understand itskeystakeholders,throughbothformalandinformalmechanisms.Webelievethatengagementand consultation helpsus tobettermeetourcustomers’needs,improvescustomerloyalty,enhancesemployeesatisfaction,buildsbroader communitysupportandultimatelystrengthensshareholdervalue. Stakeholder Interestsandconcerns Engagementmethods All Australians Australiansareinterestedinthe fullrangeofTelstra’sactivities nowwearetalking.com.au–onlineforumfor peopletobecomeinvolvedandhaveasay on issuesaffecting allAustraliansandthetelecommunicationsindustry www.telstra.com–Telstra’scorporatewebsiteprovidesinformation for customers,shareholdersandother interestedmembersofthepubliconthelatestactivitiesatTelstra.Includespublicreports Communities Telstraoperatesincommunitiesacross themetropolitan,regionalandremote areasofAustralia.Ourcommunities includenon-governmentorganisations Communities areconcernedabout accesstoservicesandtheimpactof ourbusinessonlocalcommunities • TelstraCountryWideRegionalConsultativeForumhelpstoidentify thecommunicationsissuesof importanceinregionalAustralia • Ourmobilephonebasestationsitingconsultation processeshelpTelstraoperateresponsibly in designing, operatingandmanagingmobilephonebasestationsandtominimisetheir impacton thecommunity • TelstraFoundationengageswithcommunity organisationson issuesimpactingthelivesofchildren and youngpeoplethroughitsphilanthropicgrantsprogram Customers Ourcustomersincluderesidential consumers,smalltomediumenterprises andlargecompaniesandorganisations andgovernment Our customers are interested in the quality,affordability and accessibility of our products and services,and the privacy and security of their personal information and services TelstraDisabilityForumandDisability EquipmentProgramConsumer Advisory Groupprovidemechanisms forconsultationonourdisabilityaction plan TelstraConsumerConsultativeCouncilandCreditManagementWorkingGroupfacilitatediscussion on issues thateffectresidentialcustomers LowIncomeMeasuresAssessmentCommitteeprovidesadviceon theongoingeffectivenessofTelstra’s low-incomepackage T[life]™shops,CustomerExperienceCentre,TelstraMentors,andtheCommunity Advocacy Programprovide opportunitiesforustoassistourcustomerstomeettheir needs Weundertakeongoingmarketingandresearch tohelpusunderstandwhatour customerswant Approach
10 Stakeholder Interestsandconcerns Engagementmethods Employees Telstra’sworkforceislargeand diversewith33,982employees in Australia Our employees have a broad range of concerns,including working conditions, development opportunities and health and safety,as well as a wide range of interests in issues affecting their local communities and environments • EmployeeEngagementSurveyprovidesallemployeestheopportunity toexpresstheir views abouttheirjobs,thecompanyandtheir workingenvironment • YabberisaTelstra intranetsitethatprovides employees an opportunity toshare their personal stories – triumphs,challengesandpassions–with allstaff • EmployeeengagementopportunitiesrelatingtosocialandenvironmentalissuesincludetheDiversity ChampionNetwork,VirtualWomen’sNetwork andGreen.Challenge@Telstra Government Ourgovernmentstakeholders areatlocal,stateandnational levels,fromMinistersandleaders to departmentstaff Telstracommunicatesregularly withgovernmentsonarangeof commercial,policy,regulatory andothermattersintheinterests ofitsshareholders,customers andemployees • Telstra’sdealingswithgovernmentsareconductedopenly andhonestly • Constructiverelationshipsarebuiltandmaintainedacrossalllevelsofgovernmentby our senior leadership, Telstra’sGovernmentandCorporateRelationsteamandTelstraCountry Wide • Wearerequiredtoworkwithinrelevantgovernmentlegislativeframeworksandtoreportour compliance and performance • OurRegulatoryAffairsteammanagesTelstra’srelationshipwith statutory regulatorsandindustry bodies • Telstraparticipatesinregularforumsandselectedeventswith local,stateandFederalgovernmentagencies • Telstra’sEnterpriseandGovernmentbusinessunitworkswith governmentcustomerstodevelopanddeliver accesstoworld-classinformation andcommunication solutions Industry ThesestakeholdersincludeInformation andCommunicationTechnology(ICT)and telecommunicationsspecificassociations, as wellassector-specificassociations Industrystakeholdersareinterestedin issuesimpactingthetelecommunications industry,including regulation,market trends,consumerprotection,and technologyandservicedevelopments • TelstraisamemberofthekeyICT industry groups,includingtheCommunicationsAlliance,theAustralian MobileTelecommunicationsAssociation,theAustralian Information IndustriesAssociation,theInternet IndustryAssociation,andtheAustralian InteractiveMediaIndustry Association • TelstraisamemberoftheMobileCarriersForumthatdealsspecifically with socialandenvironmentalissues withinpolicy,regulatoryandoperationalenvironmentsassociatedwith thedeploymentandoperation of mobilephonenetworks • Telstra’sIndustryAnalystRelationsfunction strengthensdomesticandglobalrelationshipswith specialist analystsonICTindustriesandmarkets • TelstraisamemberoftheAustralian Industry Group,Australia’smajor businesslobby group • TelstraisamemberoftheAustralianServicesRoundtable,thepeaklobbygroupfortheAustralianservicessector Approach
11 Stakeholder Interestsandconcerns Engagementmethods Investmentcommunity Thisstakeholdergroupincludes institutionalinvestorsand sell-sideanalysts Investors andanalysts areconcerned with therisk inherentinand return providedbytheirinvestment,and theabilityof thecompanytomeet itsobjectives • OurannualInvestorDayisanopportunity for Telstratoprovideadetailedupdatetothefinancialmarkets ontheperformanceofthevariousbusinessunitsandon thecompany’stransformation • TheInvestorCentreatwww.telstra.com.au/abouttelstra/investorisadedicatedresourcefor shareholders andpotentialinvestors • TheInvestorRelationsunitregularly engageswith investorsandanalysts,andco-ordinatesmeetings for theinvestmentcommunitywith senior management Media Includesrepresentativesfrom print,radio,TVandonlinemedia ThemediareportsonTelstramore thananyotherbusinessor organisationinAustralia • Telstraengagesregularlywiththe mediathrough our mediaspokespeople,corporateaffairsmanagers, generalmanagersandotherappropriateofficerswithin thecompany toprovideinformation thatisin thepublicinterest Shareholders Telstrahas1.4 millionshareholders Shareholders areinterestedinfinancial returns,company performance and governanceissues • Telstravaluesadirect,two-waydialoguewith shareholdersandbelievesitisimportantnotonly toprovide relevantinformationquicklyandefficiently,butalsotolisten,understandshareholders’perspectivesand respondtotheirfeedback • Telstrakeepsshareholders informed through Annual General Meetings,an annual report and bi-annual shareholderupdates • TheInvestorCentreatwww.telstra.com.au/abouttelstra/investorisadedicatedresourcefor shareholders providinginformationaboutoursharepriceandfinancialperformance,presentationsandannualreports Suppliers Telstraengageswitharound 8,000supplierseachyearwith a totalspendaround$11billion Suppliersareinterestedin secure andstablerelationshipswithTelstra • Telstraregularlyengageswithsuppliersthroughoutandafter thesourcingprocess.Our vendor managers monitorand manageTelstra’scommercial relationship with its suppliers andaddressdelivery,quality,social and environmentalissues • TheSupplyingtoTelstrawebsiteatwww.telstra.com.au/supplying_to_telstra providespracticaladvice toprospectiveandcurrentsupplierson supplyingtoTelstra Approach
12 Our material issues In determiningour materialissues,Telstrahasconsidered the significant economic,environmental and social impacts of our businessthat may affect our value,operations, reputation and longevity.We have taken into account the followingkey internaland externalfactors: • businessstrategy and impact of Telstra’stransformation; • Telstra’scompany values,code of conduct,business principlesand corporate responsibility principles; • core competenciesof Telstra; • significant risksto the company and criticalfactorsfor ensuringTelstra’ssuccess; • key future challengesfor our industry; • concernsraised by our stakeholdersthrough the range of mechanismswe have in place for stakeholder engagement; • relevant laws and regulations,for example the proposed National Greenhouse and Energy Reporting System and the Emissions Trading Scheme,and the newForward with Fairnessindustrialrelationslegislation; • key future challenges for our society as identified by social and environmental experts,governments and grassrootscommunity organisations;and • sustainability context,including the Global Reporting Initiative,MillenniumGoals,and United Nations Global Compact. Telstra’sCEOSolTrujilloandNationalEnergyManagerAllanGontarview the newlyinstalledhydrogenfuelcellandsolarpanelinJune2008. Approach
13 Issue Mainstakeholdersaffected Impact KeyelementsofTelstra’sresponse Seepages Climate change Customers Shareholders Communities Industry Telstrahasa significantopportunitytocontribute constructivelytoreducethecarbonintensityofsociety throughtelecommunicationsproductsandservices Telstraisspreadingthemessagethrough our landmark publication, TowardsaHigh-Bandwidth,Low-CarbonFuture:Telecommunications-based OpportunitiestoReduceGreenhouseGasEmissions,andby developing offeringsthathelpour customersreducetheir carbon emissions 16 Extending accessto communications Customers Shareholders Communities Industry Government Deliveringanewhigh-speedNationalBroadbandNetwork acrossAustraliaisoneofthemostsignificantcontributions Telstracouldmaketothecountry’seconomicdevelopment, socialinclusionandglobalcompetitiveness Telstra’scommitmenttoitsshareholdersandthewider community hasunderpinned a passionate and targeted BroadbandAustraliaCampaign 15 Regulatory environment Customers Shareholders Communities Industry Government TheregulatoryenvironmentcontinuestoimpedeTelstra’s abilitytoinvestconfidentlyinnewtechnologyandtodeploy advancedservicestoallAustralians Weengagewith governmentandregulatorstolobby for aregulatory environmentthatenhancesthepotentialfor investmenttoprovide Australiawith thetechnology tocompeteinternationally 15 Energy efficiency Customers Shareholders Communities Employees LikeallAustralianbusinesses,Telstrafacesuncertainty abouttheimpactonourbusinessandonthewidereconomy ofthe proposedCarbonPollution ReductionSchemeand relatedpolicies Wearecommittedtoimprovingour energy efficiency acrossour business,supply chain andcustomer base 58 Employee relationships Employees Contractors ThesuccessofTelstra’stransformationandoureconomic sustainabilityreliesonstrongemployeerelationships Wearecommittedtocreatingasafeandengagingworking environmentfor our people 36 Humanrights Employees Supplychain Customers Communities Thereisgrowinginterestintheroleofbusinessesinadvancing humanrights.ConsiderationofhumanrightsinTelstra’sbusiness decisionsand operationshas thepotentialtomanageriskand realisenewbusinessopportunities Telstraaddresseshuman rightsconcernsin our workforce, productsandservicesandsupply chain 2638 Approach
1Society matters We believe that what is good for Australia,is good for Telstra.We take our corporate responsibility seriously. Phil Burgess,outgoing Group Managing Director,Public Policy Communications Businessenterprisessignificantlyimpactsocietyinwaysthat reachwellbeyondthecommunitysphere.Asthe principal wealth-creatinginstitutionsofoursociety,businessandthe privatesectormustplayapivotalroleinshapinganation’ssocial, economicandenvironmentalpoliciesandcontributingtoprogress andprosperityineverysphere –fromtheartsandstrong civic institutionstoeconomicdevelopmentandtaxpolicy. Considertheeconomicdimensionofcorporateresponsibility. Telstra’smostimportantachievementoverthepastyear isto providejobstoover46,000people,paying$4.2billioninsalaries andwages.Wealsopaid$3.4billionindividendstoshareholders; paidover$1.7billioninCommonwealth,stateandlocal taxes; purchasedmorethan$11billioningoodsandservicesfrom around8,000 suppliers,manyofthemsmallandmedium-sized businessesthatprovidejobs,taxesandwealthtolocal communities;andinvestedseveralbilliondollarsinnetwork maintenanceandimprovements–includingtwo high-speed nextgenerationnetworks.Whenyoustopandthinkaboutit,the economicsofTelstra’soperationhaveasignificantsocialimpact. Itisalsoimportantthatcorporationsseekopportunitiesto advancethenationalinterest.ForTelstrathismeansnotjust complyingwithlawsandregulationsbutalsoadvocatingfor reformwherereformisneeded,strengtheningthecapacity of thenation’stelecommunicationsnervecentreand,through this,providingthenationwithafoundationforeconomic growth,productivityimprovement,increasedprosperity, andglobalcompetitiveadvantage. AtTelstra,we havea 21st century vision for Australia:to advance the economic,social,and commercial interests of people,business and communities inAustralia by maximisingthe benefitsof digitaltechnologies.Already, wehave delivered the Next G™wireless broadband network and we are eager to provide a high-speed fibre-based NationalBroadband Network for the country. As Australia’s largest telecommunicationscompany,we are well placed to have a measurable and positive impact on the nation’s well-being and its social,economic and commercial performance.Businesses of all sizes are using Telstra’s next generation networksin innovative waysto save time and fuel, and toincrease productivity.People and communities are usingTelstranetworksto connect to each other and the outside world and to reduce the tyranny of distance –a bigissue for Australia because connectivity isthe primary driver of political stability,economicprosperity,and socialmobility. Because we believe in astrongcivicorder,we believe business engagement in issuesof national importance is essential to ahealthy and resilient society.Telstra sees this engagement asacorporate responsibility.We engage on key socialand environmental issues that challenge our nation,suchas climate change,cyber-security and improvements in the way we deliver health and education servicesto the public. We also provide apublic forum for education and dialogue about the impact of telecommunicationson society with our nowwearetalkingwebsite.
15 Telstra’s primary socialresponsibilityasabusinessenterprise istoprosperand innovate.Itmakesgoodbusinesssenseto measurethefullimpactofourbusinessdecisionsonthelarger society,toidentifywayswecanimprove,andtocontribute positively toAustralia’s futuredevelopment–becausewe believethatwhatis goodforAustraliaisalsogoodforTelstra. Influencing public policy Webelieve oneofthegreatstrengthsofdemocraticsocietiesis that theyprovidea healthyarenaforvigorousdebatebetween the publicandprivatesectorsonimportantnationalmatters. That’s whyTelstra participatesindebateson issuesthatimpact our business,as wellasoureconomicandsocialcontribution. NationalBroadbandNetwork Telstrabelieves thatdeliveringa newhigh-speedbroadband networkacrossAustraliais oneofthemostsignificant contributions wecanmaketothecountry’seconomic development,socialequityandglobalcompetitiveness. ANational Broadband Network(NBN)willallowAustralian consumersand businesses tousenewapplicationsand services being developedhereandaroundtheworld.Theseservices canimproveaccess tohealthcare,education,publicsafety, onlinemedia and governmentandbusinessinformation andservices,especiallyforruralandregionalAustralians. Webegan withour NextG™wirelessbroadbandnetwork,and havebeenplanningtobuildanNBNforoverthreeyears.Justas Telstrahas beenthecompanytodelivertelecommunications throughout Australia forover100years,we areready tobuild thisnetwork,as long asitmakesbusinesssensetodoso. Amassive,high-risk investmentisnecessaryfor theNBN,but the currentregulatoryregimeunderminesthepotentialfor investment byleavingthedooropentotheregulator,the AustralianCompetitionandConsumerCommission(ACCC), to shiftthegoalpostsafterthenetworkhasbeenbuilt. Australia needsa paradigmshiftinitsregulatoryenvironment ifitistoencouragetheinvestmentrequiredtogettheNBNbuilt. Telstra hasbeenworking towardsthis,and atthesametime pursuingreformstoPartXICof theTradePracticesActthat arecurrentlyprovidingawiderdisincentivetoinvestment. AspartoftheNBNdiscussion,Telstraisalsoadvocatingfor a thoroughexaminationofthevariousregulationsthathave asocialpolicyimpact,toensuretheobligationsofnetwork providersarefullycostedandresponsiblyassigned. In2007/08,Telstrachallengedthecurrentextentofregulation throughseveralmajorexemptionapplicationsmadetothe ACCC.Theapplicationsaddressedregulatoryconstraintsthat currentlyhinder,orputat risk,afairandcompetitiveoperating orindustryenvironment.Forexample: • Telstra’ssubmissiontotheNBNregulatoryreview challengedconventionalregulatorypolicyandoutlined ameansthroughwhichamulti-billiondollarinvestment innextgenerationaccesscouldproceed; • we advancedthecase toputfundingoftheUniversal ServiceObligation(USO)onamoresustainablefooting. Telstra’ssubmissiontotheUSO reviewproposednew modelstomoreaccuratelyestimatethecostofrural, residential,businessandpayphoneservicestobetterargue forenhancedfundingforruralandremoteservices;and • TelstrarolledoutADSL2+broadbandtechnologytoa further907 exchangesthatservea totalof2.4 million premisesaftertheFederalGovernmentsupportedthe positionthattherewasno compellingcase fordeclaring accesstoADSL2+services. BroadbandAustraliaCampaign Telstra’scommitmenttoitsshareholdersandthewider communityhasunderpinneda passionateandtargeted campaigntoeducate,mobiliseandinfluence,through democraticprocesses,thedecisionsthattheFederal Governmentmakesaboutpublicpolicy,andtoshiftthe regulatoryburdenonTelstra. PriortoourBroadbandAustraliaCampaign,verylittle informationabouttheimpactofregulationson Telstra andthetelecommunicationsindustryhadbeenprovided toconsumersandshareholders,despitethesignificant implicationsoftheseissuesforthenation. By enlargingthe arenaof discourse to involve shareholders, opinion leaders and the general public,Telstra shifted the discussions from behind closed doors and the specialist language of regulators,lawyersand economists. EstablishedinFebruary2007,ourBroadbandAustraliaCampaign continued to capture the support of staff,Telstrashareholders and members of the publicwho rallied behind our call for a nationalcommitment to buildinganewhigh-speed,national broadband network. Morethan11,000peoplesignedupasTelstraActiveSupportersvia our website,www.nowwearetalking.com.au.The site featured thelatestWeb2.0onlineactivismtoolsthatgavesupportersand thousands of other Australians information and the means to allowtheir voice to be heard in the debate on broadband issues. Achievementsin 2007/08 included: • more than 18,000 people put themselves‘on the map’ callingfor high-speed broadband; • morethan7,000peopleusednowwearetalkingtosendemails to localMPsand/or the Minister for Communications;and • almost4,000peoplesentemailstotheChairmanoftheACCC. We achieved our aim to elevate high-speed broadband to a first-tier publicpolicy issue inAustralia and asacentral issue in the November 2007 Federal election.The Australian Labor Party’s commitment to deliver just such anetwork wasa key policy position. The newFederal Labor Government re-named the Communications Minister’sportfolio to the Minister for Broadband,Communications and the Digital Economy,and commenced atender processfor afibre-to-the-node network to deliver high-speed broadband to 98 per cent of Australians. In 2007/08,TelstraActive Supportersalso voiced their protest to the FederalLiberalGovernment awarding$958 million of taxpayer’sfunds to the SingTel Optus and Elders joint venture OPEL.The decision was subsequently overturned by the new FederalLabor Government in April2008. 1.Society matters
16 1.Society matters nowwearetalking SinceDecember2005,Telstra’snowwearetalkingwebsite, www.nowwearetalking.com.au,hasprovidedaforum for publiceducationanddialogueabouttheimpactof telecommunications onsociety.Theinitiativeisrepresentative of howthenewTelstracommunicateswithitsstakeholders directlyandmorefrequentlyacrossabroaderrangeofissues. Thisyearthewebsitehasundergonearedevelopmentandhas launchednowwearetalkingTV,withanincreaseofvideoonthe website.nowwearetalkinghascontinueditsreputationasoneof corporateAustralia’smostinnovativeonlineforums.Duringthe 2007Federalelection,nowwearetalkingdedicatedaspecial Election2007areathatwasaone-stop-shopforinformationon telecommunicationspolicyduringtheelection.Thesitewasfree fromeditorialcommentsandwasavailableforallpoliticalparties topublishtheirpolicies.Thewebsitealsostreamedalivedebate betweenthethenMinisterofCommunicationsandShadow MinisterofCommunicationsontelecommunicationspolicy. Visitors tothewebsiteincludeTelstrastaff,customers, shareholders,politicians,competitorsandmedia,alleager to sharetheirviews andopinionsonissuesaffectingTelstra, thewidertelecommunicationsindustry,andthenation. nowwearetalking carriesnewsandviewsfromallperspectives –including thosewhodoanddon’tagreewithTelstra.Overa millionpeoplea yearvisitthewebsiteandwe aimtoincrease thattoover1.5 millionoverthenext12months. nowwearetalking is aimedatencouragingpeopletobecome more interestedin,andtalkmoreabout,thedigitalrevolution, andhow new digital technologiescanexpandchoicesfor people(ofallages andinterests),enterprises(bothlargeand small),andcommunities–nomatterwheretheyarelocated inAustralia.Thewebsiteraisesawareness abouthowsome publicpolicies andadministrativepracticespreventconsumers andthenation as awholefromenjoyingthefullbenefitsof livinginthedigitalage. In2008/09nowwearetalkingwillhavespecialsections dedicatedtotheenvironmentandtheNBN. Climatechange Climatechangehasbeenthedefiningsocialissueofrecent yearsandTelstrahasbeenproudtotakea leadershipposition intheemergingdebate.SincetheelectionoftheFederal LaborGovernmentinNovember2007,therehasbeena notableaccelerationinpublicpolicydevelopmentandthis has coincidedwithinternationaltrends.TheUnitedNations conferenceonclimatechangeinBaliduringDecember2007 wasmarkednotjustbyAustraliaratifyingtheKyotoProtocol butalsobyaroadmaptowardsanewglobalclimatetreaty tocomeintoforcefrom2012. Towardsahigh-bandwidthlow-carbonfuture Inthecontextofintensedebateaboutthedesignand potentialeconomicimpactsofanemissionstradingscheme, numerousstate-basedandvoluntaryschemestopromote renewableenergy,carbonoffsets,andenergyefficiency, Telstrawentbacktothebasics–conservationofresources. LaunchedinOctober2007,ourlandmarkpublicationTowards aHigh-Bandwidth,Low-CarbonFuture:Telecommunications-based OpportunitiestoReduceGreenhouseGasEmissions,commissioned fromindependentexpertsClimateRisk,hastakenourresource conservationmessagetoanewfrontier. Thereportbrokegroundinseveralways.First,itfocused attentiononreducingenergyconsumptionastheprimary meanstoachievemeaningfulcarbonabatement.Second,it describedseveninnovativewaystousetelecommunications networkstodeliversavingsthroughouttheeconomy.Third,it wentasfarastoquantifythesavingspotentialofthesecarbon opportunities–almostfivepercentreductionin Australia’s totalannualgreenhousegasemissionsby2015.Finally,the reportwassubjectedtopeerreview,togiveindependent assuranceoftherobustnessofitsfindings. Theresponsetothereporthasbeenremarkable.Thereport has beenwidelyquotednationallyandinternationallyas demonstratingapracticalandoutward-lookingapproach tothechallengesposedbyclimatechange. Role of telecommunications Telstra’s CEO SolTrujillo champions the case for telecommunicationsto addressclimate change at local and major international forums.Sol Trujillo was the only Australian CEO invited to sit on a16-member World Economic Forum steering committeeon climate change.The steering committee’sstatement – signed by 100 CEOs from some of the world’s biggest companies –urges the G8leaders to take immediate action to tackle climate change,and says that businesshasthe skills,expertise and drive to lead the charge. The Federal Government’s proposed roll out of a National Broadband Network to 98 per cent of Australians will strengthen our effortsfor telecommunicationsto address climate change.This investment will enable Australians to access telecommunications-basedservices that canhelp them reduce their carbon emissions.Initiatives such asremote diagnosisof heath issues,telecommutinginstead of non- productive hoursspent in trafficgoingto and fromwork, and video conferencing instead of travel to meetings are just some of the immediately available ways telecommunications can be used to reduce our impact on the environment. Telstra has already taken the lead in Australia by showing that better use of telecommunications can reduce greenhouse gas emissions.We are working with third parties across Australia to develop innovative solutions that will reduce their operational costs,improve efficiency and reduce their environmental footprints. Regulation With continuing expansion of environmental regulation at State,Territory and Federal government levels,our compliance and reporting obligations are increasing.Climate change is bringing anew set of obligations into the mix,with some variation from jurisdiction to jurisdiction.Telstra has made submissionstotheFederalGovernmentontheEnergyEfficiency Opportunities Act,National Greenhouse and Energy Reporting Act,and the Australian Competitor and Consumer Commission white paper on green marketing.Our policy submissions have emphasised the desirability of streamliningregulation.
Telecommunications-based opportunities to reduce greenhouse gas emissions Casestudy Telecommunicationsnetworkscanhelpreduce Australia’s greenhouse gas emissionsbyalmostfivepercentby 2015and deliverupto$6.6 billionayearincostsavingsfor Australian businesses and households,accordingtoa reportreleasedby Telstra inOctober2007. Asaleadershipinitiative Telstracommissionedclimatechange experts toquantifythepossiblecarbonanddollarsavingsthat could be achievedbybusinessenterprises,householdsand governmentsbyusingtelecommunicationsnetworkstoavoid or reduceratherthanjustoffsettheircarbonemissions. The Reportfoundtelecommunicationsnetworkscanfacilitate areductionin Australia’scarbonemissionsby 4.9percentor around27 million carbontonnesperyearby2015.Thisis equivalenttotheannualemissionscausedbynearlytwo- thirds ofAustralia’s passengercars. TowardsaHigh-Bandwidth,Low-CarbonFuture: Telecommunications-basedOpportunitiestoReduceGreenhouse GasEmissionsis a studybyclimatechangeexperts,Climate Risk.TheReportwas peerreviewedbyindependentexperts: WWF Australia’s ChiefExecutiveOfficer,Greg Bourne,and leading Australianenergyandenvironmentalauthority, DrHughSaddler. The Reportidentifies sevenmajoropportunitiesfor Australian consumers andbusinesses that,ifimplementedby 2015,could help reduceAustralia’s greenhousegasemissionsby around27 millioncarbon tonnesperyear.Individually,eachopportunity coulddeliverperannumcarbonemissionsavingsof: • 1.8million tonnes (Mt)byusingbroadbandtoremotely managepowerforappliancesnotinuseoron‘stand-by’; • 2.4Mtbyimprovingbusinessproductivitywith“in-person” high-definitionvideoconferencing; • 2.9Mtwithbroadbandbased,real-timefreightallocation systemstofillemptyfreightvehicles; • 3.0Mt withpresence-detectingservicesthatturnoff devicesthatare“on”butnotbeingused; • 3.1Mt withteleworkingand workinginregionalcentres byreducingcommutercartraffic; • 3.9Mt bybringingintegratedpersonalisedpublictransport toyourdoorwitha phonecall;and • 10.1Mtbyincreasingrenewableenergyusewithnetworked demand-sidemanagement. ClimateRisk’sDirectorofScienceandSystems,DrKarlMallon,said theintroductionofcarbontradingwouldrequireAustralian businessestore-thinktheirapproachtodoingbusiness. “TheReport’sopportunitiesshouldbepartofeverybusiness andgovernmentclimatechangestrategybecauseitcandeliver bigemissioncutsquicklyandwithminimaleconomicdisruption,” DrMallonsaid. “ThisReportprovidesthefirstsignificant,practicalanalysis inAustraliaoftheuseoftelecommunicationstoachieve increasedenergyconservationandcleanenergyproduction. Ouranalysisfoundthatbyharnessingsmarternetworksand devicesitispossibletodeliverreducedemissionswhilealso reducingexpenditureonenergyfortheenduser. “TheresultsindicateTelstracanplaya bigpartinthe solutiontoclimatechange.Thescaleofitsnetworks,services andcustomer-baseprovidesa uniqueplatformtopartner withbusinessesandhouseholdstoamakeasignificant contributiontoreducingthenationalcarbonfootprint.” A fullcopyoftheReportcanbefoundat www.telstra.com.au/abouttelstra/csr/reports.cfm
18 1.Society matters Issue Solution Product/Service Travel/FuelReduction AdditionalInformation Conferencing Collaboration RemoteVirtual VideoConferencing TelePresence ✓ Topoftherange/stateoftheartvideoconferencing. VideoConferencing TelePresence ✓ Enablesvirtualfacetofacemeetingsandsupportslarger numbersofattendees. VideoConferencing DesktopVideoConferencing ✓ Desktopsolution for individualfacetofacemeetingswith high quality images. VideoConferencing WebEx ✓ Enablesharingofapplicationsandhands-on visual/verbalcollaboration. VirtualContactCentre WebContactCentre ✓ Supportsavirtualcontactcentrethatlinksallformsofcommunicationswhilst abletorun on any connectabledesktopPCallowingaphysically diversestaffing andreducedtravelandalsoofficespaceimpactsfor homeworkers. RemoteWorkingSolutions iPassGlobalVirtualNetwork ✓ Providessecuremanagedaccesstocorporatebusinessessupportingemployees workingremotely andenablingreducedtravel. Telemetry RemoteTelemetry RemoteTelemetry ✓ Remotemonitoringandcontrolofmeteringandspecificapplication devices anywhere(andeverywhere) in thecountry enablingreduction in travel. Additionalenvironmentbenefitsdependingon application such aswater reductionswhen usedfor water management. VehicleRouting Management FieldWorkforceSolutions Xora Trimble EnterpriseMobilitySystem(EMS) ✓ Variousapplicationsfor fieldforcemanagementtostreamlinefieldwork includingjoballocation androuteplanning. Whereis®Navigator WhereisNavigator ✓ Smarttravelplanningmeansefficientroutingtohelppreventunnecessaryfueluse. NextGeneration Infrastructure TelstraNextIP™network BigPond,Velocity(FTTP) ✓ TheTelstra NextIP™ network is one ofthe largest,fully integrated national IPnetworksin theworld. NextG™network FlexiblePersonalisedTransportSolutions ✓ Leadingedgewirelessnetwork thatunderpinsnotonly Telstra’sbutan extensiverangeofthirdparty productsandservices. Telstra’s productsandservices–fuelreductionsolutions
19 Internetsafetyandsecurity Wireless communication ischangingtheway we work,liveand relatetoeachotherinthe21stcentury.In 2007,eachAustralian household had,onaverage,morethanthreemobilephones –up from oneperhouseholdin1995;andin 2007,nineinten families hadaninternetconnectionwith75percentbeing broadband– upfrom sevenpercentin1995.Communications toolslikethesearebringingfamilyandfriendscloserby allowing them tostayconnectedwhenphysicallyseparated. However,withaccesstohigherbandwidthinternetconnections andnew technologies,thewaypeoplebehaveonlinehas changed.Therateofgrowthintheuseofsocialnetworking services anduser-generatedcontenthasincreasedmarkedly inAustralia and internationally.Therehasbeenashiftfrom the consumption ofcontenttointeractionwithcontent,and information hasneverbeenmoreintegratedoraccessiblein ‘real time’. Whilethesechanges haveincreasedourabilitytoconnect with eachother,drivenadvancesinproductivityand enhanced innovation,theyhaveacceleratedashiftin theriskstointernet users.Theseonlineriskscanbecategorisedintothreekeyareas2: 1. content– theriskofexposuretointernetcontentthat isillegalorconsideredtobeinappropriateforchildren. 2. communication – risksarisefrominterpersonal communications ontheinternet,suchascontactwith childrenbysexualpredatorsandcyberbullying. 3. e-security risks – associatedwitha varietyofinternet activities including thereleaseofpersonalinformation topublic forumsandconnectingahomecomputertothe internetwithoutprotection,whichmayresultinviruses, onlinefraud,spamandidentitytheft.Onanationalscale, e-security risks mayincludecyberattackonAustralia’s criticalinfrastructure. In2007/08 Telstraestablishedan internalWorkingGroup onInternetTrustSecurity.Wealsoworkwithindustry, government,communityorganisationsandinternetusers toaddresstherangeofevolvingonlinerisksandtodevelop measuresthatpromoteonlinesafety.AtTelstrawetake our responsibilityasatrustedinternetservicesproviderand integratedtelecommunicationscompanyseriously. Cybersafetyforkids In2007/08 theTelstraFoundationmadeathreeyear commitmenttoputtinga‘spotlight’oncybersafety.Anew $3 millioncommunitygrantsprogramwas establishedto helpdevelopprotectivemeasurestokeepAustralianchildren safewhileusingtheinternetandmobilephones.Throughthe spotlightoncybersafetyprogram,theTelstraFoundation supportsprogramsthathelpchildrenandyoungpeopledevelop theskillstheyneedtoenjoytheuseofinformationand communicationtechnologiesinsafe,supportedenvironments, andprogramsthateducateparentstobecomemore competentinaddressingcybersafetyissues. Nationale-SecurityAwarenessWeek InJune2008,TelstrasupportedNationale-Security AwarenessWeek,a FederalGovernmentinitiativethat aimstohelpAustraliansunderstande-securityrisksand educatecomputerusersaboutthesteps theycantaketo protectthemselves,familiesandbusinessesonline.Telstra’s CorporateSecurityInvestigationsledourinvolvement togetherwithrepresentativesfromSensisandTradingPost. As part of the week in June 2008,Telstra’s consumer marketing team and BigPond held a series of free seminars at Telstra’s T[life]™ store in Sydney.The seminars demonstrated how every parent can help build a safe online environment for their children.One of the world’s leading experts in e-learning and an advocate for child cyber safety,Dr Martyn Wild,shared some simple steps that parents can take to make the internet a safe place for their family.A booklet for parents,Help keep your kids safe online,was produced as part of this initiative. The booklet,along with some simple tips on cyber safety, can also be found by visiting the BigPond website at http://my.bigpond.com/help/security Cyber Safety Consultative WorkingGroup Telstra’s Corporate Security Investigations Unit represents the company on the Cyber Safety Consultative WorkingGroup. A key initiative of the FederalGovernment’scyber safety plan, the workinggroup hasrepresentation fromcommunity groups, internet service providers,industry associations,businessand government.It isexpected to provide advice to the Government on prioritiesand measuresrequired by legislatorsand industry to ensure world’sbest practice safeguardsfor children online. Australasian Consumer Fraud Taskforce The Australasian Consumer Fraud Taskforce,made up of a number of state and federal government bodies from Australia and New Zealand,launched aSCAM watch Fraud Fortnight awarenesscampaign driven by the Australian Competition and Consumer Commission.The campaign wasdesigned to educate consumers on how they canbetter protect themselvesfromscams. As an industry partner to the Taskforce,wehelp promote the campaign each year.This year,by using Telstra’s varied communication channels,the Taskforce’smessageswere delivered to over 2.7 million BigPond customers,550,000 TradingPost usersand 40,000 employees. VirtualGlobalTaskforce The Virtual Global Taskforce (VGT)iscomprised of global law enforcement agencies working together to fight online child abuse.Its objectives are to make the internet asafer place,to identify,locate and help children at risk,and to hold perpetratorsappropriately accountable. 1.Society matters 2 DevelopmentsinInternetFilteringTechnologiesandotherMeasuresforPromoting OnlineSafety,p.12,AustralianCommunicationsand MediaAuthority,2008
20 BigPond is anoriginal corporateindustrypartnerofthe VGTsinceits inceptionthreeyearsagoandwas thefirst Australianinternetserviceprovidertoacknowledgeitsvalue. AsanindustrypartneroftheVGT,Telstrademonstratesits commitment tocommunitysafetyandcrimereduction,and helpstoreducethethreattochildrenonline.Telstraattended the thirdInternationalVGTconferenceinCanadain February 2008,whichfocusedonbuildingawareness andunderstanding of thechallenges facedwhenfightingaborderless,cross jurisdictional crime.Theconferencerecognisedthatno single agency,organisation orcompanyalonecan winthefight of protecting ourmostvitalresource–ourchildren. TechnologyandWellbeingRoundtable TheTelstra Foundation,incollaborationwithInspire Foundation,established aTechnologyandWellbeing Roundtable,a forumthatbringstogetherasmallgroup of industry leadersfromallsectorsofthecommunity,to exploreopportunities toworkcollaborativelyand reduce therisksassociatedwithtechnology.Establishedin2008, the groupaims todevelopinnovativeinitiativesthatharness the poweroftheinternetandrelatedtechnologytoimprove wellbeing.SomeoftheroundtableparticipantsaretheNSW Commission forChildrenandYoungPeople,theAlannahand MadelineFoundation,NAPCAN,MicrosoftandMySpace. CyberStorm II Telstra continuedtoworkcloselywithgovernmentand industry toensurethecountryis readyfor andresilientto possible attacksonits networkand constantlyinvestsin newtechnologytoprotectitscustomers.Today’ssecurity challenges reinforcethebenefitofTelstra’sparticipation inaninternationalsimulatedcyberexercisecalledCyber Storm II,whichtookplaceinMarch2008. Cyber StormIIwas partoftheUnitedStates’Departmentof HomelandSecurity’songoingefforttoreducecyberattacks andenhancegovernmentand privatesectorabilitiesto communicateandcooperateinresponsetoacyberincident. Australia,alongwithCanada,theUnitedStates, NewZealandandtheUnitedKingdom,participatedin theexercise.Over50 Australianorganisations,including criticalinfrastructuresectors,tookpartintheexercise designedtotesthowwellcriticalcross-sectorandinter- governmentalcybersecurityprocessesoperateandhow stakeholdersrespond.As akeymediacommunications company,Telstrawasintegraltotheexercise. Telstra’sinvolvementinthiscollaborativeindustryand governmentexerciseprovidedtheopportunitytosimulate responsestoalargescalecyberattack,applykeylearnings tocurrentpracticesanddevelopimportantnetworkswith lawenforcement,governmentsandpeerorganisations. CyberStormII reinforcedtheneedforTelstra’senterprise andgovernmentcustomerstoproactivelyprotectthemselves againstcybercrime.Telstraofferedinformationandbriefings onasophisticatednewsecuritysystem,DistributedDenialof ServiceProtection.Thisprotectionserviceinterceptsanattack intheonlinenetworkand redirectstheoffendingtrafficto preventthecustomer’sinternetgatewayfromshuttingdown. Thenetwork-based,managedsecuritysolutionisaneasy and scalablewaytoprotectcustomernetworksfromDistributed DenialofServiceandotheronlinesecuritybreaches. Electromagneticenergy Telstraacknowledgesthereissomecommunityconcern thatexposuretolowlevelsofelectromagneticenergy(EME) fromourtelecommunicationsbasestationsandmobile telephonehandsetscouldleadtoadversehealtheffects. TelecommunicationsfacilitiesemitradiofrequencyEME as“radiowaves”orradiosignals.Otherradiowavesignals transmittedbycommunicationsfacilitiesincludeTVsignals, AM andFMradiosignals,taxiservicesignals,pagingnetwork signals,emergencyservicecommunications,andpolice two‑wayradio. Telstra relies on the expert advice of national and international health authorities suchasthe Australian Radiation Protection and Nuclear Safety Agency – an agency of the Commonwealth Department of Health and Ageing,and the World Health Organisation (WHO) for overall assessments of health and safety impacts. The WHO reports that from all the evidence accumulated so far,“no adverse short or longtermhealth effectshave been shown tooccur from the radio frequency signals produced by base stations.” Onmobile phones,the WHO reports that“the overall evidence available to date does not suggest that the use of mobile phoneshasany detrimentaleffect on human health.” More information isavailable at www.who.int/peh-emf/about/WhatisEMF/en/index3.html During 2007/08,Telstra completed 1,131 mobile infrastructure projects which included 129 new development applications and 425 Australian Communication Industry Forum consultation proposals.The Australian Communications and Media Authority (ACMA) confirmed that they received five complaintsregardingTelstraproposalsthisfinancialyear. Each year,Telstrapublishesinformation on the Radio Frequency NationalSite Archive aspart of our transparent approach to EMEand telecommunication.Thisyear thisincluded: • Environmental EME Reports:7,057 updates to 4,130 distinct sites; • EME Compliance Certificates:1,426 updates to 1,260 distinct sites;and • Radio CommunicationsSite Management Books: 1,719 updatesto 1,451 distinct sites. 1.Society matters
In2007/08,wepresentedatsixleadinginternationalEME conferencesandworkshops,includingtheBioelectromagnetics Society Annual MeetinginSanDiego,and providedsponsorship fortheAustralianCentreforRadiofrequencyBioeffectsResearch ScienceWeek2007.TheaimoftheScienceWeekis toimprove the public’s understandingofradiocommunications technology. EMEresearch Telstra employsthreefull-timeresearch professionals intheChiefTechnologyOfficetooversee andsupportour engagementinexternalEMEresearch.Thisresearchis conductedprimarily incollaborationwiththeAustralian CentreforRadiofrequencyBioeffectsResearch. In 2007/08,researchprojectsundertakenwiththeCentre includedhuman,animalandisolatedcellculturestudies onpotentialhealtheffects;dosimetrystudiesfor more robust exposurestandardsdevelopment;andextensive reviewing ofthescientificliteraturetoprovidethemost up-to-dateknowledge oftheglobalresearch effortand the latestconclusions onpotentialhealthimpactsfrom exposuretoEME. Also in2007/08,incollaborationwithSwinburneUniversityof Technology,Telstraopenedanew$600,000research facility atSwinburne’sHawthorncampusinMelbourne,toundertake specialised radio frequencydosimetryresearch and tosupport the researcheffortsoftheothercollaboratorsoftheAustralian Centre forRadiofrequency BioeffectsResearch.Telstra contributed$300,000andlabequipmenttothenewfacility. SuperClubsPLUS Australia Casestudy Aprotectedandsafeonlinelearningcommunityfor young AustraliansisnowarealitythankstotheeffortsofIntuitive MediaAustralia,La TrobeUniversityandthe Telstra Foundation. Theactiveeducationprogram,SuperClubsPLUSAustralia, equipschildrenwiththeskills,confidenceandaptitude to effectivelyandsafelyengageontheinternet. Providinganonlinevoiceforsixto12yearolds, SuperClubsPLUSAustraliaisalocalisedversion ofaninitiativeofIntuitiveMediaUK.Itincludes Australianmediatorsprotectingandencouraging childrenin‘realtime’,andlocalcontent,partnersand curriculummappingacrossalleducationjurisdictions. SuperClubsPLUSallowsyoungpeopletosafelyexplore theiridentity,andreachouttosignificantadults,suchas children’sauthors,guestpoliticians,andjournalists,aswell aseachother,through‘SuperHot-Seats’.‘SuperClubbers’ cantalktolocalandglobalaudiences,butareprotected by asophisticatedmixofsoftwaretools,intelligentsystems andreal-timemediators.Itisasaferalternativetothe online communitiesfoundinMySpace,YouTubeandBebo. UsingSuperClubsPLUShelpsyoungpeopledevelopan advancedunderstandingofonlinetoolsandtechnologies, andanopportunitytousetheminpurposefulactivities. Inaddition,SuperClubsPLUSAustraliaprovidesanonline spaceforchildrenandteacherstolearninadifferent environment.Informationandcommunicationtechnologies learningsfromeachofthestates’educationcurricularfor this agegroupwillbemappedtoprogramsinSuperClubsPLUS. Withover6,000kidssignedupinjustthefirsttwomonths ofSuperClubsPLUSgoinglive,theaimistohave40,000 childrenregisteredinthefirsttwoyearsoftheprogram. SpringGully Primary Schoolteacher,NarissaLeung, believes that SuperClubsPLUS Australia teaches students more than just computer skills. “It provides students with amoral compass for safe internet use and an authenticpurpose for both readingand writing,” MsLeungsaid. The Telstra Foundation,through the Community Development Fund’s Cyber Safety program,issupporting SuperClubsPLUS Australia with agrant of $1 million over two years. 21
22 Communityengagement KeytoTelstra’s siteselectionprocessistheneedtostrikea balancebetweenprovidingreliableservicesandminimising impactonthecommunityandthelocalenvironment.Telstra endeavourstolocatefacilitiesinindustrialand commercial areaswhereverpossibleinordertominimisedisturbancesto localcommunities. Adedicatedteam atTelstraactivelyreviewsnewsite proposals anddevelopssuitablecommunityconsultation plans.The levelofconsultationvariesdependingonthetype of facilityproposed(newsiteorupgradeofanexistingsite), local governmentpolicy and advice,andimportantlythe localarea andcommunity. Telstra invites nearbycommunitiesandlocalgovernment toactivelyparticipateintheconsultationprocess,and provides arange ofavenuesforengagementincluding writtennotification toresidents,advertisementsin local papers,notices attheproposedsite,local“drop-in”sessions ataneighbourhoodhouse,specialcouncilbriefings, telephonehotlines,housetohousevisitsandone-on-one informationsessions. Telstra providescomprehensiveinformationabout EMEandhealth,includingresearchandfactsheets, atwww.telstra.com.au/ememanagement Socio-economic contribution AsthetelecommunicationsnervecentreofAustralia, Telstra providesthenationwithafoundationforeconomic growth,productivityimprovement,sustainableprosperity andglobalcompetitiveadvantage.Asabusinessenterprise, wehave aresponsibility toourshareholdersandtothe nation to continually improve thefinancialperformance of ourcompanyanditsbusinesses.Bydoingthisina responsible way,wefosterprosperityintheindustries andcommunitiesinwhichweparticipate. Economicimpact Indesigning,developingandimplementingcommunications solutionsforourcustomers,Telstrahasa significantimpact ontheeconomythroughemployment,investmentand our supplychain.Duringthe2007/08 financialyear,Telstra’s businessactivities: • supported46,649jobs(totalworkforce); • paidout$4.2billioninsalariesandwages; • paidout$3.4billionindividendstoshareholders; • paid$1.7billioninCommonwealth,stateandlocaltaxes; • purchasedmorethan$11 billioningoodsandservices fromaround8,000suppliers;and • invested$4.9 billiontocontinuethebuildoutofthe NextG™wirelessbroadbandnetwork;thecontinued deploymentoftheTelstraNextIP™network;creation ofnewandadvancedbusinesssupportandoperating supportsystems;andotherinvestmentstotransformthe deliveryoftelecommunicationsservicesinAustralia. Financialsummary Yearended30June2008* 2007/08 2003 $M 2004 $M 2005 $M 2007 %change Salesrevenue 24,657 23,673 984 4.2 EBIT 6,226 5,779 447 7.7 Profitaftertaxand minorityinterests 3,692 3,253 439 13.5 Ordinarydividends (centspershare) 28 28 - - *Includes Sensis Industry awards In one of the biggest end-to-end transformationsever undertaken by aglobal telecommunicationscarrier,Telstra is nowpast the three year mark in itsfive year transformation. We are transformingfroma20th century phone company into a world classmedia-communications company,implementing next generation networks,transforming our IT systems and introducing market-based management to improve our customers’experience.The transformation,which issupported by globalstrategicpartnerssuch asAccenture,IBM,Ericsson, and Alcatel-Lucent,isproducingworld-leadingresults. In2007/08,Telstra’s achievements have been recognised by anumber of key industry awards,including: • 2008 TelecomAsiaAwards–‘Best Asian TelecomCarrier’ and‘Best Mobile Carrier’; • 2007 Australian Telecom Awards –‘Telecommunications Company of the Year’,‘CEO of the Year’,‘Best Internet Service Provider’,and‘Mobile Carrier of the Year’; • Global Telecoms Business Magazine’s 2007‘Innovation Award’for IT Transformation; • Australian Communications Alliance Awards –‘Innovation Mobility Award’for the TelstraNext G™network; • National Mobile Media Awards –‘Best Mobile Entertainment’;and‘Best of Show’for Wotnext; • International Engineering Consortium,Broadband World Forum – InfoVision Awardfor BigPond Wireless Broadband;and • Engineers Australia Excellence Award,Sydney Chapter of EngineersAustralia– Award for ControlSystems, Network Infrastructure and Telecommunications– TelstraNext G™network. The complete list of Telstra honours can befound at www.telstra.com.au/abouttelstra/corp/awards.cfm 1.Society matters
“In the past,the Mobile Unit hasbeen unable to even connect to atelephone line. “This,coupled with the many and varied locationsthe Mobile Unit visits,and the challenge of the size and complexity of the x-rayimages –about 10 megabytes per single x-ray – hasrequired creative solutions.” BreastScreen Tasmaniaisone of the increasingnumber of organisations using the Next G™network toincrease efficienciesand drive improved productivity. Productivityandinnovation Telstra’s vision is foraNationalBroadbandNetworkfor all Australians,toenableaturbo-chargingofhealth,education, environmentalconservationanddevelopment,commerce, innovationandsocialinclusion.Wearealreadydelivering Australia’s largest and fastestnationalmobile broadband network. Ournetworksexplained The NextG™ networkisAustralia’slargestandfastest national mobile broadband network.Telstra’sNext G™ networkoffers thebestcombinedbreadthanddepthof third generation mobile coverageinAustralia,coveringmore thantwomillionsquarekilometres–morethanthreetimes the sizeofFrance.TheNextG™(850MHz)networkprovides 3Gservices and wirelessbroadbandaccess to99percentof the Australian population,spanningcityto countryincluding manyremotecoastal andruralcommunities,andistheworld’s firstnationalnetworktoofferupto200kilometrecellrange. Someadvantages oftheNextG™networkinclude: • moremobilephoneservices–inadditiontothestandard voicecalls andtextmessaging,theNextG™networkallows itsuserstomakeand receivevideocalls,and enjoy broadbandaccess totheinternet; • laptopandPDA access –theNextG™networkcanalso beaccessedusing laptopsandPDAsviaPCcards; • fasterdataspeeds–theNextG™networkis uptofive times fasterthanother3GSMnetworks,withtypicaluser speeds averaging 550Kbpsto3Mbps;and • international roaming–theNextG™networkhas oneof theworld’sbest internationalroamingfootprints,allowing customers tomakevoicecallsinmorethan172countries andto access3G servicessuchasvideocallingand high speeddatain41countries. TelstraCountryWideExecutiveDirectorforVic/Tas,GrantWiltshire, TasmanianMinisterforHealth,LaraGiddingsandBreastScreen Tasmania’sJennyHuntleydemonstratethedigitalmammography imagerybeingsenttoHobartinreal-timefordiagnosis. Breast Screen Tasmania Virtual Care Casestudy LaunchedinApril2008,a newtelehealthinitiativepowered by Telstra’sNextG™networkisrevolutionisingthewayscreening mammogramsareprocessedforwomenlivinginrural and regionalTasmania.Significantadvancementsinhealthcare oftencomefromsimplesolutions,andthisonecouldnot be morestraightforward. “Thebeautyofthisapplicationisitssimplicity,”said TelstraCountryWide®ExecutiveDirectorforTasmania andVictoria,GrantWiltshire. “Acombinationofwirelessbroadbandanddigital mammographyequipmentmeansthatimages previouslycourieredinhardformcanbeemailed totheradiologyreadingfacilityinHobart.” LaraGiddings,MinisterforHealthandHumanServices, saidthattheinitiativehadreducedthetimetakenfor individualmammogramfilestobetransferredfromthe mobilescreeningunittotheHobartreadingfacilityfrom asmuchasfivedays,tojustfourminutes. “Untilnow,lackofmobilebroadbandcommunications hasmeanttime-consumingmanualprocessesfordelivering clientfilesandmammogramstoandfromtheMobile Unit,” Larasaid. “Filesandappointmentscheduleshavebeenpacked insuitcasesanddeliveredbycouriertotheMobileUnit whereverithasbeenlocatedaroundTasmania–aprocess takinguptofivedaysdependingonthelocation. “ReturningthefilesandscreeningmammogramstoHobart forreadingandarchivinghasbeensimilarlyinefficient. 23
24 Inaddition,Telstra hasdeliveredtheTelstraNextIP™network which,coupledwith theNextG™network,isoneofthelargest fullyintegratednation-wideIPnetworksintheworld.TheTelstra Next IP™networkis secure,morescaleable,morereliableand simplertoaccess thananyothernetworkinAustralia. OurADSLbroadband networkcovers 92percentofthe population and ourADSL2+servicesareenabledin more than 1,400 exchangesallowingcustomerstoaccess speeds up to 20Mbps. Changing thewayweliveandwork Thesenetworks arealreadyhavinga profoundsocialand economicimpact– changingthewaypeoplelivetheirlives, changing businesses,andincreasingAustralia’sabilityto competeglobally.Theyunderpinsignificantchanges from information thatis compartmentalised,fragmentedby providerandhardtoaccess,toinformationthatisintegrated, user-generatedandaccessibleinreal-time. Onapersonallevel,peopleareusingTelstra’sNextG™network tomakelive video calls,especiallyforspecialoccasionssuchas Christmas,birthdays,weddingsandchristenings,strengthening kinship tiesandallowing peoplewhocan’ttraveltostayin touchwiththoseclosetothem. Onabroaderlevel,our networksare usedtoimprove emergencyservices,addresscriticalresourceshortagesin health and education,and toimproveefficiency and productivityinindustry. Healthcare Withanageingpopulationandshortfallsofdoctorsand nursesin ruralandregionalareas,Australia’shealthsystem isunderpressure.Telecommunicationsnetworkscanunderpin aseriesofpositivechangesinthepatient,medicalprofessional andhealthadministrationexperience. Usingournetworks,itisnowpossibleforanambulance toarrivemorequicklybyusingourlocationtechnology to pinpointthesceneand thenearestambulance;apatient’s recordstobemadeavailableinstantaneouslybythespeed, reliabilityandrobustnessofourTelstraNextIP™network; andthebestprofessionalstobealertedimmediatelyfor diagnosisandrecommendationbyusingourwireless broadbandNext G™networktorecordandtransmitthe patient’sconditionviavideo. CommunitynursesareusingNextG™toremotelyaccess clientrecordsandupdatefiles,eliminatingtheneedtogo backtobase.Theyalsotakeandsendpicturesandvideos ofwoundstoreceivedressingadviceoverthephone,saving timeandresources,anddeliveringmoreimmediateand appropriatecare. Healthprofessionals,suchasdentists,speechtherapists, obstetricians,cardiologists,pathologists,paediatriciansand physiciansareusingtheNextG™ networktoviewelectronic patientrecords,makeprescriptions,accesspharmaceutical dataandconductmobilevideoconsultations. Thissavestraveltime,reducesthe delay for diagnosisand, most importantly,givespatients timely advice about improving their health and wellbeing inlocations where specialist attention previously may not have been available. Virtualreal-time criticalcare bridgesdistance and gives access to specialists assisting inthe stabilisation of the patient,reducing the need to transfer patients from regionalto big-city hospitals. Business A December 2007 study of 26businesses in15industries usingTelstra’s Next G™wireless broadband network found on average a9.3 per cent increase inproductivity after using Next G™for an average of seven and ahalf months. Productivity gains among users interviewed varied from 1.1 per cent to 27.3 per cent. 31 per cent of those surveyed were in ruralor remote areas.It’s in these areas where the highest productivity gainswere seen. The productivity driversincluded reduced traveland expenses; better useof time while offsite or travelling;accessto more information remotely;and reduced staff time supporting information requestsfromoffsite workers. Businesses across all sectors areusing our networks to save on traveltime and fuelexpensesto improve productivity. For example,cattle farmers are using Next G™to remotely monitor water levels,gates and fences,and remotely control water pumps,not only saving time and fuel,butreducing maintenance and improvinglivestock longevity. The study wasprepared for Telstraby Enotech Pty Ltd. 1.Society matters Our networksarealreadyhaving a profoundsocialandeconomicimpact
“Ican now use alaptop to doa job on the top of Uluru or in Wadeye,and it’snot only generaladministrative work that we can nowdo”,Charlessaid. “We can also access all our records sothat wecan check the details weneed tosay yes toa loan or abusiness deal right there and then. “Nowthat staff membersdon’t have to travelto where they previously needed to for internet access,and weare able to accessour network inmany places across Australia,I believe that moving to the Next G™network has improved our efficiency by up to 30 per cent.” Education Accesstohigh-speedbroadbandissettotransformtheway welearn in a new eraofanywhere,anytimelearningondigital devices and in virtual classrooms.In theeraofhigh-speed broadband,learning willbeaccessibleacrossanydigitaldevice, whichmeans learning contentwillbe availableon PDAsor smartphoneswhenit’smostneededormostconvenient. With fast networkspeeds,studentshavefaster and easier access to contentin theirpreferred formats–whetherthat isvideo,simulatororgaming.Peoplewillbeabletoupload, co-createand commenton learningcontentaseasilyand quickly asthey canaccess it,and sharedlearningwillalso beenhanced. EducatorsarecurrentlyusingNext G™TelstraTurboCards in laptopsto stream live videoof environmentalprojectsto schools around thecountry,giving schoolstudentsa richer learning program.Importantly,studentscanbe connected with livelearning nomattertheirlocation. CharlesRoberts, IndigenousBusinessAustralia. Indigenous business organisation more efficient Casestudy Withmorethan200staffworkinginremotelocations aroundAustralia,IndigenousBusinessAustralia(IBA) reliesonTelstra’sNextG™networktokeepincontact. IBA isaFederalGovernmentorganisationbased inCanberrawhichnegotiateshomeandbusiness financingwithIndigenouscommunities. HavingswitchedtotheTelstraNextG™ network,IBAstaff cannowmakemobilephonecallsfromplacesasremote as Wadeye,westofDarwin,andlogontotheircentraldatabase. AccordingtoIBA’s InformationTechnologyandTelecoms Manager,CharlesRoberts,thenewarrangementshave made theorganisationbetween25and30percentmoreefficient. IBA representativesconductmuchoftheirworkin remoteIndigenouscommunitieswheretheymeetwith individualsandorganisationstosetupfundingforhome orbusinessloans. WorkingmainlyinQueensland,theNorthernTerritory and WesternAustralia,staffmemberstraditionallyhadto cope withslowandunreliablephoneandinternetaccessin bigger towns,andnointernetaccessatallinremoteareas. PriortoswitchingtotheNextG™network,manystaffmembers hadtorelyonsatellitephonestosetupappointmentsorcheck inwithcolleaguesatotherlocations. ComputeraccesstoIBA’s databasewaslimited,andstaff hadtotravelhundredsofkilometrestoandfromareas to getaccess. TheIBAnowhas115NextG™mobilehandsetsand71NextG™ TurboCardsprovidingstaffwithaccesstooffice serversand systems,email,andfastbroadbandwhileoutoftheoffice. 25
26 Influencing corporate responsibility outcomes Acompany as large asTelstrahastheopportunitytoinfluence the corporateresponsibilitybehavioursand outcomesofthose stakeholderswithwhomweengage. Suppliers In2007/08,Telstra purchasedapproximately$11billionin goodsandservices fromaround8,000suppliers.Thenumber of suppliers involvedandthesizeofspendputsTelstrain a strong position toinfluencetheenvironmentalandsocial standards ofoursuppliers.Werecognisethatoursuppliers havethepotentialtomakesignificant,positivecontributions tothecommunities inwhichtheyoperateand todirectly impactTelstra’s owncorporateresponsibilityperformance. Our supplychain Telstra hasmorethan800major(over$75kspend)active contracts inplacewithadiverserangeofsuppliersfora rangeofproductsandservices.Themaincategoriesofspend include:networkequipment,includingexchanges,pits, pipes andconstructionservices;customerequipment,such asmobile handsetsandtelephones;strategicmarketing including advertising,media,sponsorship,brand and marketing services;officeproducts;motorvehiclesand mechanical aids;IThardware andsoftware;directory paper;andlabour,includingagency,ITandconsultancy. Supplychaintransformation AspartofTelstra’s transformation,oursupplychainisbeing reformed.We’removingfromacostlyscenarioof toomany suppliers,systemsandstandardstoasinglewaytoprocure, asinglewaytoconnectwithsuppliers,andasinglecompany- wide view ofourvendoractivity.Thebenefitsinclude:cost effectiveness;greatervisibilityoftheend-to-endsupply chain;process improvementsthroughtheautomation, standardisationandtheintegrationofourprocessesresulting ingreaterefficiencyandsimplification.Greatervendorvisibility alsomeansTelstraisabletobettermonitorandenforce networkcomplianceand tocontinuetoensurea highstandard ofconductfromoursuppliers. Telstrahassigneda seven-yearcontractwithIBM toprovide a numberofsupplychainservicesincludingcontractmanagement andreportingsystems,andtooperateanintegratedsupply chainforinternalspendon productsandservices.IBM is committedtoupholdinghighstandardsofethical,social andenvironmentalconductinitssupplychainandhas implementeda globalSupplyChain SocialResponsibility programworldwideacrosstheirnetworkofsuppliers. IBMwillcontinuetoworkwithTelstratoidentifypossible processimprovementsinthesupplychain. Supplierevaluationprocess Telstra’sBusinessPrinciplesprovidea frameworktoensurethat weoperateethicallyandwithintegrityinpurchasinggoods andservicesandconductingbusinesswithourvendors.Social andenvironmentalconsiderationsinoursupplierselection and evaluationprocessesareguidedbyourPurchasingEthics GuidelinesandEnvironmentalPurchasingGuidelines. PurchasingEthicsGuidelinesaimtoensurethatinundertaking ourpurchasingactivitieswe assess therelevantimpactswe makeonsocietyandthatwetakeintoaccountourhealth and safetyresponsibilities,andtheeconomic,environmentaland communityimpacts. TheEnvironmentalPurchasingGuidelinesaimtoensure considerationofenvironmentalissuesinthepurchasing ofallproductsandservicesbyTelstra. Thefundamentalelementsofthesepolicies,alongwithour Health,Safety Environment(HSE)framework,havebeen incorporatedintothecompany’s StrategicSourcingand VendorManagementprocesses. Strategicsourcing Our supplier selection processincludes arisk assessment designed to identify environmentaland occupationalhealth and safety risks in particular and broader social risks more generally.Dependingon the risk evaluation we may require that our suppliershave: • formalmanagement systemsand plansthat manage any HSEaspects and impacts associated with their business and any productsor servicessupplied; • ahistory of HSEcompliance and good performance; • evidence of how they manage the HSEperformance of their subcontractors;and • socially responsible contractual obligations specific to the productsor servicesthey are supplying. As a result of our crossbusiness risk assessment-based sourcing process,high risk products,servicesand vendorsare identified (eg,clothing manufacturers,labour services) and may be subject to greater scrutiny including visiting manufacturing premisesand seekingevidence of company policies. For example,before procuring work services from anindustry partner,weinspect the vendor’s premises and perform a rigorous risk assessment against key Telstra policies and employment conditions including:work environment;leave and breaks;HSE;equal employment opportunity;bullying and whistle blowing;privacy;unions;employee assistance programs;reward and recognition,and remuneration. Vendor management Vendor managers haveongoing relationships with key suppliers.They monitor and addressdelivery,quality, and HSEissues.The contract witha vendor requires compliance with Telstra’s HSEstandards,and apart from the information captured during the sourcing process,contracts with specific high risk suppliers contain conditionscoveringongoingreportingobligations. 1.Society matters
27 Propertyvendorsarealsocontractedtoidentifyenvironmental improvementopportunitiesaswellastosupportand collect datatoassistuswithmeetingtheobjectivesoftheGreenhouse ChallengeandNationalPackagingCovenant. Awards Telstrahelpstobuild socialinclusionand encourages environmental stewardshipbysupportingand recognising thoseindividuals and organisationsthataremaking a difference. WehavesponsoredtheNationalAboriginal TorresStrait IslanderArtAwardsince 1992,recognisingtheachievements of Indigenous artists.TheAward isanimportantshowcasefor both established and emergingartistsand hascometobe regardedas thepremiernationaleventintheAustralian Indigenousartcalendar. The 2007winnerwas DennisNona,whoseartwork,Ubirikubiri, wonthecoveted$40,000prize.Widelyacknowledgedasone of themost importantTorresStraitIslanderartistsofhis generation,Nona’s workwaschosenfromover 300entries submittedintheaward. Telstra has beenamajorsponsoroftheBanksiaEnvironmental Awardssince1993andin2007/08wecelebrated14yearsof partnership.TheAwardsacknowledgeexcellence,dedication andleadershipin areasthatcontributetotheenvironmentand asustainable future.Throughtheawards programtheBanksia Environmental Foundationaimstoraisetheprofileofthe currentenvironmentalissues facingAustraliaand recognise thosewhose initiatives areanencouragementand an example forotherstofollow.In2007,Telstrasponsoredtheinaugural environmentalPeople’sChoiceAward,whichwaswonby TheFalls Festival– TheGreenestFestivalinAustralia. TheTelstraBusinessWomen’sAwardshavebecomean integralpartoftheAustralianbusinesscalendar.Theawards area showcaseofsuccessfulwomenandprovidea powerful platformtohelpredresstheongoingunder-representationof womenin managementranks.Telstrahas proudlysponsored theseawardssince1995,celebratingtheachievementsof a diversegroupoftopAustralianbusinesswomenandpromoting thevaluablecontributionwomenmaketothebusinesssector andthewidercommunity. The2007TelstraAustralianBusinessWomanoftheYearwas LeannePreston.Herinnovativecompany,WildChild,isnow aninternationallysuccessfulbusiness. In2008TelstrasponsoredtheTelstraEnvironmentAwards, throughwhichNetworkTenrecognisesandrewardsthe individualsandcommunitiesthatareworkingat alocallevel toprotecttheenvironment,reducegreenhouseemissionsand ensureasustainablefuture.Theawardsareopentoschools, individuals,communitygroupsandsmallbusinessesacross Australia.Therearemonthlyprizesof$2,000ineachstate and an annualprizeof$5,000 forthemostsignificantcommunity environmentprojectineachstate. Planned actions for 2008/09 • Improvetherelevance,transparencyandaccessibility of Telstra’scorporateresponsibilityinformationon Telstra’s website. • ConductareviewofTelstra’shumanrightsposition and practicestoassessperformanceagainst international standards. • Introduce feature sectionson nowwearetalkingto provide aplatformfor publicdiscussion and debate about the environment and the NationalBroadband Network. • Reduce paper consumption by continuingto transform our supply chain operations to effective,electronic business,including online drafting and execution of contract documentation. 1.Society matters HollyKramer,GMDTelstraProductManagementandTelstraBusinessWomen’s Awards ambassador,MargotSpalding,2006TelstraAustralianBusinessWoman oftheYear,LeannePreston,winner2007TelstraAustralianBusinessWomanof theYearAwardwithSolTrujillo,TelstraCEO.
2Communities matter Telstra is actively involved in the communities in which we operate. Geoff Booth,Group Managing Director, Telstra Country Wide AsAustralia’sleadingtelecommunicationsproviderandone of itslargestcompanies,weknowthepositiveimpactourbusiness canhaveoncommunitylifeandwellbeing.Withcustomers, employeesandoperationsrightacrossAustralia,Telstratakes anactiveinterestintheissuesfacingallAustralians,fromthe capitalcitiestotheremotestpartsofourcountry. AstheheadofTelstraCountryWide®,andaDirectorofthe TelstraFoundation,Ihaveakeenanddirectinterestinour communityactivities.Telstracontinuallystrivestoimprovethe deliveryoftelecommunicationstohelpbringAustralianscloser togetherbybreakingdownthetyrannyofdistancecreated by oursmallpopulationandlargelandmass.Inaddition,weare alwayslookingforwaystomakeapositivecontributionto Australia’ssocialandcommunitywellbeing,whetherit’s throughourstrategicphilanthropy,communitybusiness partnerships,localsponsorships,disasterrelieforcommunity engagementinproductandservicedevelopment. Allbusinesses,especiallylargeenterprisessuchasTelstra, haveanimportantroletoplayinstrengtheningcivilsociety andsupportingcivicleadership.We dothisbycontributing ourresources–people,money,technology,products,services andinformation–tosupportthecommunitiesin whichwe workandlive,theircivicleaders,andsocietyasawhole. Wehavethegreatestimpactbydoingthisin areaswhere Telstrahastheexpertiseandresourcestomakeadifference. WhenAustraliaishitbydevastatingnaturaldisasters,Telstra’s communicationstechniciansareamongthefirstonthescene toassistemergencyandessentialserviceorganisationswith theircontingencycommunicationneedsandtorestore telecommunicationsservicestoourcustomers.Ourphilanthropic and community business partnership endeavours use information and communication technologiesto enhance socialinclusion and improve the health and education outcomes for individuals,families and communities across Australia.We share the knowledge and expertise of our employees tohelp build the skills and capacity of local enterprisesand communities. We are also committed to addressing the needs of those most disadvantaged in society.The programsof the Telstra Foundation’sCommunity Development Fund aimto assist children and young people who are socially or geographically isolated,and include a strong focuson improving the health and education outcomesof Australia’sIndigenouschildren. In 2008,Telstra participated inthe London Benchmarking Group’s process for the second year.London Benchmarking Group Australia/New Zealand is abusiness membership organisation that providesaframework for membersto measureandbenchmarktheircorporatecommunitycontribution. As an indication of the level of our commitment and the breadth of our activities,Telstra’s 2007/08 contribution was valued at $29.2 million. Telstra promotes its community support programs to its employees as ithelps demonstrate that wetake our social responsibility seriously,and helps engender pride and loyalty in the organisation.To be involved inand understand the communitiesin which we operate isgood for civiclife and the future prosperity of Australia,which isultimately good for Telstra.
Disaster relief Each yearAustralia ishitbydevastatingbushfires,floods, cyclonesandothernaturaldisasters,destroyingthehomesand impacting thelivelihoods ofmanyAustralians.Whendisaster strikes,Telstra’s firstpriorityistoassisttheemergencyand essentialserviceorganisationswiththeirtelecommunication requirements.Typically,ourcommunicationstechniciansare among thefirsttoenterdisasteraffectedareastorestore telecommunicationsservicestoourcustomersasquickly aspossible.Telstra alsooffersreliefpackagestoaffected customers.VolunteerandFirstResponseLeaveisavailableto our employees,whichenablesthemtovolunteertoprovide criticalservices fortheprotectionoflifeandproperty. Telstra is proud ofitslong historyofrespondingtocommunities affectedbynatural disastersinAustralia,andtonaturaland civil disasters thatoccuroverseas.Telstra’sDisasterReliefPolicy ensures thetimely andeffectivedeliveryof supporttoaffected customers andcommunities. Overthe2007/08 yearTelstraprovidedrelieftocustomersand communities affectedbythefollowingnaturaldisasters: • bush firesin WillungainSouthAustralia,and inParkerville andStonevilleinWesternAustralia; • floodsinthecentralandnorthcoastofNewSouthWales; • floodsinEmerald,Rockhampton,Mackay,Charleville, Gold Coast,Beenleigh,Jimboomba,Beaudesert, Rathdowney,Boonah,Clifton,Allora,Warwickand KillarneyinQueensland; • cycloneNargisinMyanmar(Burma);and • theearthquakeintheSichuanProvinceinChina. Lending a Helping Hand Casestudy Withtheupgradeofnab’sdesktopcomputerfleet, TelstraEnterpriseandGovernment’snabAccount Teaminpartnershipwithnabusedthedecommissioned technologytoaddressanimportantneed. Inamovethathasbothenvironmentalandsocial benefits,thepartnershipdevelopedtheHelpingHand projecttomanagethedisposalofthetechnologyto supportdisadvantagedcommunities. Sincetheproject’sinceptionin2007,over3,400desktops andalmost300 laptopshavebeendonated,aswellas otherequipmentsuchasprinters,routersandswitches. Donationshavegonetolocalorganisationssuch as Yooralla,theReachFoundationandtheOpeningthe DoorsFoundation.ThroughtheReachFoundationthe projectundertakesinternationaldonations,withdevices goingtoorphanagesandschoolsinMali,Vietnam, EastTimor,Cambodia,Fiji,PapuaNewGuineaandIndia. Oneoftheproject’slargestdonationsistotheWired Community@CollingwoodprojectinVictoria,runin conjunctionwithInfoxchangeAustralia.Thisprojectwill deliverbroadbandandcomputeraccesstoresidentsof the Collingwoodcommissionflatsandcloseto1,000 Helping Handdesktoppersonalcomputershavebeendonated. TheHelpingHandprojectaimstodonatearound 4,000 desktopsand250laptopstocommunitiesand organisationsin2008/09.Asapartoftheircontribution toWiredCommunity@CollingwoodTelstravolunteers, inconjunctionwithnab,willtraintheresidentssothat theyhavetheskillsandknowledgeneededtomaximise theuseoftheircomputer. 29
Telstra Corporate Responsibility Report 2008
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Telstra Corporate Responsibility Report 2008

  • 2. 2 MessagefromourCEO 1 Approach 2 Executivesummary 2 Telstraprofile 6 CorporategovernanceatTelstra 7 Corporateresponsibilitygovernance 8 Stakeholderengagement 9 Ourmaterialissues 12 1 Societymatters 14 Influencingpublicpolicy 15 - NationalBroadbandNetwork - Climatechange - Internetsafetyandsecurity - Electromagneticenergy Socio-economiccontribution 22 - Economicimpact - Productivityandinnovation Influencingcorporate responsibilityoutcomes 26 - Suppliers - Awards 2 Communitiesmatter 28 Disasterrelief 29 Communitybusinesspartnerships 30 TelstraFoundation 30 Sponsorship 32 Volunteering 33 3 Employeesmatter 36 Buildingaworld classtalent base 37 Enhancingdiversity and opportunity 38 Providingahealthy and safe environment 42 4 Customersmatter 48 Enhancingour customers’experience 49 - Customer service commitments - Informingour customers - Customer safety and security - Customer privacy Ensuringaccessfor everyone 53 - People on lowincomes - People with disability - Ruraland regionalcustomers - Indigenouscommunities - TelstraConnected Seniors® 5 Environmentmatters 58 Engagingemployees 59 Improvingour energy efficiency 60 Managingresource efficiency and waste 62 Greenhouse gasemissions 64 Managingour land use appropriately 65 Compliance 67 Environment data 69 GlobalReporting InitiativeIndex 74 Contents
  • 3. 1 About this report This is Telstra’s sixthannualcorporate responsibility report.Itcoversthe2007/08 financialyearfortheAustralianoperations of TelstraCorporationLimited(excluding Sensis,Telstra’sinformationandadvertising business,unless otherwisespecified). Afullaccountofthecorporateresponsibility performanceofSensiscanbefoundat www.about.sensis.com.au This reportcoversTelstra’seconomic, socialandenvironmentalcontributions andperformanceduring2007/08and is intendedtoprovidecomprehensive informationtothefullrangeof Telstra’s stakeholders. Wehavepreparedthisreportwith referencetotheGlobalReporting Initiative (GRI) SustainabilityReporting Guidelines (version 3.0)and theGRI TelecommunicationsSectorSupplement. Feedbackonthereportiswelcome. PleaseemailNancie-LeeRobinson, SeniorAdvisor,CorporateResponsibility, atcsr@team.telstra.comor participatein ouronlineforum atwww.nowwearetalking.com.au Message from our CEO Insomeway,TelstratouchesnearlyeveryAustralian,every day.Our day-to-day businessand ongoingtransformation are avital threadinAustralia’seconomicandsocialfabricandthisisaresponsibilitywetakeveryseriously.It’sattheheartofeverythingwedo. CorporateresponsibilityatTelstrastartswithmeandflowsthroughout the company.Our approach to corporate responsibility beginswithasimpleandstraight-forwardcommitmenttoprincipled decision-making.Whether it isproviding good jobs at good wages,servingtheneedsofourcustomerswithnewand innovative productsand solutions,pursuingresource efficiency acrossthe businessorplayingaroleindevelopingsolutionstothebigsocialand environmentalissuesof the day – fundamentalprinciples guidetheway. AtTelstra,weknowthatitmakesbusinesssensetoappreciate the impact of our businessdecisionson the larger community. Thereisanalignment,forexample,betweenreducingcostsand reducingthe environmentalimpact of our operations.The report commissionedbyTelstra,TowardsaHigh-Bandwidth,Low-CarbonFuture:Telecommunications-basedOpportunitiestoReduce GreenhouseGasEmissions,putssolidideasintothemarketplace about how wecan use telecommunicationsnetworks to reduce businesscostswhilealsoreducingAustralia’scarbonfootprint,most of which are achievable today. Alreadythreeyearsthroughourfive-yeartransformation,we are changingnot just our company,but the way Australianswork, playandmovearound.Ournextgenerationnetworksand services,which provide unparalleled coverage and speeds,are providing acustomerexperiencethatissimple,integratedandintuitive.We’re bringing Australians closer together.We’re improving business productivity.Andwe’reincreasingAustralia’sabilitytocompete globally. Corporateresponsibilityisintegraltoeverythingwedo.It’sabout makingprincipled decisionswith fullconsideration of alltheir implications–social,environmentalandeconomic.Thishelpsussucceed and deliver for our customersand shareholdersbecause actingresponsiblymakesgoodbusinesssense.Ithelpsusto be more efficient,increasesproductivity and makespeople proud to workforTelstra. Oursixthcorporateresponsibilityreporthighlightsourcontributions during 2007/08 and clearly sets out the actions we have plannedtobuildonoursolidperformanceinthefuture. SolTrujillo,ChiefExecutiveOfficer November2008
  • 4. Executive summary Society Keyachievementsin2007/08 • LaunchedourlandmarkpublicationTowardsaHigh- Bandwidth,Low-CarbonFuture:Telecommunications- basedOpportunitiestoReduceGreenhouseGasEmissions. Thereportquantifiesthepossiblecarbonanddollar savingsthatcouldbeachievedbybusinesses,households andgovernmentsbyusingtelecommunicationsnetworks toavoidorreducetheircarbonemissions. • Achieveda ratingof87percentinthe2007 Corporate ResponsibilityIndex.Thisincludedoutstandingresults incommunitymanagement(100percent). • IncreasedTelstra’sscorefrom36percentin 2007 to70 per centinthe2008 Dow JonesSustainabilityIndex,aglobal analysisofcorporateresponsibilityleadership.Thisscore iswellabovetheindustryaverageof53percent. • Launched theTelstraFoundation’sSpotlightonCyber Safetyprogramwithacommitmentof$3 millionover threeyearstohelpchildrendeveloptheskillstobesafe whenonlineandusingmobilephones. • HelpeddelivertheSCAM Watch FraudFortnightawareness campaigntoover2.7 millionBigPond®customers,550,000 TradingPostusersand40,000employees.Thecampaign is anactivityoftheAustralasianConsumerFraudTaskforce, ofwhichTelstraisanindustrypartner. • Invested$4.9billiontocontinuethebuildoutoftheNext G™ wireless broadband network;continued deployment of the Telstra Next IP™network;creation of newand advanced business support and operating support systems;and other investmentstotransformthedeliveryoftelecommunications servicesin Australia. • Contributed $300,000 to anewresearch facility for specialised radio frequency research into the possible health impactsfromexposure to electromagneticenergy. Telstraiscollaboratingwith Swinburne University of Technology on thisinitiative. Planned actionsfor 2008/09 • Improve the relevance,transparency and accessibility of Telstra’s corporate responsibility information on Telstra’s website. • Conduct a review of Telstra’s human rights position and practices to assess performance against international standards. • Introduce feature sections on the nowwearetalking website to provide aplatform for publicdiscussion and debate about the environment and the National Broadband Network. • Reduce paper consumption by continuingto transform our supply chain operations to effective,electronic business, including online drafting and execution of contract documentation. Approach
  • 5. 3 Community Keyachievements in2007/08 • Telstra’s investmentincommunityactivitieswas valued at$29.2 millionbytheLondonBenchmarkingGroup. Thiscompareswith$18.8millioninthepreviousyear. • Provided $3.9 million throughtheTelstraFoundation tomorethan667 projectstohelpconnectchildrenand young peopletotheircommunities. • Provideddomesticdisasterreliefservicestocustomers affectedby:bush fires inWillungainSA,andin Parkerville andStoneville inWA;floodsinthecentralandnorth coastofNSW;andfloodsinEmerald,Rockhampton, Mackay,Charleville,GoldCoast,Beenleigh,Jimboomba, Beaudesert,Rathdowney,Boonah,Clifton,Allora, WarwickandKillarney inQld. • Provided disaster relieftocustomersaffectedby cyclone Nargis inMyanmar (Burma)andtheearthquakein SichuanProvinceinChina. • Committed$750,000throughtheTelstraFoundation tosupportAbracadabra,auniqueinteractiveliteracy softwaretoolthatwillhelpIndigenousprimaryschool childrenimprove theirliteracyskills.Abracadabrais a projectofCharles DarwinUniversity. • Announced anewsponsorshippartnershipwithWWF Australia toproducea seriesofcommunityservice announcementstohighlighttheendangermentof manyAustraliannativeanimals. • PilotedtheTelstra FoundationCommunityLeadership program,linking Telstraexecutiveswithnon-profitleaders ina 12monthmentoringrelationshiptohelpbuildthe capacityofcommunityorganisations. Plannedactionsfor2008/09 • To developandpilotanemployeematchedgivingprogram todonatefundstocommunityorganisationsnominated byTelstraemployees. • Toprovideover$3.5 millionin grantsthroughtheTelstra Foundationtohelpcommunityorganisationsconnect childrenandyoungpeopletotheircommunities. Employees Keyachievementsin2007/08 • Achieved74percentemployeeengagement,indicating theextenttowhichemployeesvalue,enjoyandbelievein Telstraandwhattheydo.Thisresultisbasedonthe 2008 TelstraEmployeeEngagementSurveywithan84 per cent responserate. • Investedover$75 millioninlearninganddevelopment forouremployees,representingan investmentofaround $1,600peremployee. • Employeescompleted573,763onlinelearningcourses throughLearn.Achieve,and6,500 employeesparticipated inFrontlineLeadershipprograms. • Developed252newjob-specifictrainingcoursesthrough theTelstraLearningAcademy. • ConductedTelstra’sinauguralwomen’sconference, Stand.Out,whichwasattendedby150womenand focusedonperformance,careerdevelopmentand the advancementofwomenatTelstra. • PilotedtheMyMentorprogramforTelstrawomento increasestrategicbusinessskills.Basedonoutstanding feedbackfromthe21participantsoftheinitialcourse, theprogramwasrolledouttoover440womenacross the organisation. • Awarded an Excellence in Auslan Interpreting Award (private sector organisation category) bythe Australian Sign Language Interpreters’Association to publicly recognise Telstra’s consistent support for working with interpretersand long-standingcommitment to customers, shareholdersand employeeswho are deaf. Planned actionsfor 2008/09 • Increase the proportion of women inmiddle and senior management to 30 per cent. • Increase Indigenous employment opportunities by 25 per cent bythe end of December 2009 as part of Telstra’sIndigenousAction Plan 2008-11. • Maintain the highest (Comcare Tier 3) rating across all Health,Safety and Environment categories. • Achieve aminimum of 10 per cent employee participation inanew online Health Risk Appraisal byAugust 2009 to improve employee understandingof health risk factors. Approach
  • 6. 4 Customers Keyachievements in2007/08 • Assistedmorethanonemillionlow-incomecustomers toconnectormaintaintheircommunicationsservices. Thetotalbenefitprovidedwasinexcessof$200million. • LaunchedTelstra ConnectedSeniors®in August2007with over$750,000 ofgrantfundingprovidedto110community organisations tohelpolderAustralianslearntousemobile andinternettechnology. • Closed theCDMAnetworkon28April2008andcompleted themigration (commencedinOctober 2006)ofcustomers totheNextG™network,providingmoreadvancedthird generationmobiletechnology. • Openedthelargeststate-of-the-artinteractive telecommunicationsstoreinAustralia,T[life]™in Melbourne inJune 2008afterthesuccess ofT[life]™ Sydney,whichopenedinNovember2007. • Telstra EnterpriseandGovernmentCustomerCarewas awardedcertificationtotheInternationalCustomerService StandardbytheCustomerServiceInstituteofAustralia, demonstrating thatourorganisationhasapassionfor customerexcellenceandtheprocessestodeliver. • Receivedthe2007 CorporateCommunityPartnership Awardfrom theCountryAwarenessNetworkVictoria, recognising Telstra’sexceptionalcommitmenttoVictoria’s ruraland regional communitiesthroughour supportand assistancetoconsumersand clientsaffectedby HIV/AIDS orHepatitis C. Plannedactionsfor2008/09 • ExtendtheTelstraBillAssistanceProgramtocovermobile and internetbillstorecognisethechangingnatureof communicationsusageamonglow-incomeAustralians. • Provideaweb-basedinquiryformforinformationabout accessiblefeaturesofNextG™mobilehandsetstoenable peoplewithadisabilitytochoosetherightmobilehandset fortheirneeds. • Buildonthesuccess ofourworldclass T[life]™storesby openingorrefreshingmorethan80 T[life]™storesacross Australia,toprovidearetailexperiencelikeno otherfor ourcustomers. • DeployenhancedHSPA(HighSpeedPacketAccess Plus) asanationalsoftwareupgradetoincreasepeak network downlinkspeedsacrossournationalNextG™network fromthecurrent14.4Mbps1 to21Mbpsbytheendof2008. • WithsupportfromtheNTGovernmentandRioTintoAlcan, Telstrawillrollout800kmsoffibretoconnectninenorthern ArnhemLandIndigenouscommunitiesandthetownship ofNhulunbuytothenation’sfibreopticbackbone. Environment Key achievementsin 2007/08 • Saved25,332tonnesCO2equivalentthankstoprojects targetingenergyefficiencyandrecyclingofpaper, cardboardandwood–comparabletothegreenhouse gasemissionsfrom1,800averageAustralianhouseholds forayear. • Reduced the consumption of office paper by 35,900 reams, a14 per cent reduction from 2006/07.This represents a decrease from7.2 to 6.5 reamsper employee. • Reduced the number of vehicles inour fleet by 17 per cent with acorresponding reduction in fleet energy use of 16.8 per cent. • Operated 10,265 solar powered sites,includingexchanges, radio terminals,smallrepeater stationsand pay phones. Telstraisone of Australia’slargest usersof solar power. • EstablishedtheClimateChangeReviewGrouptomonitor andpromoteTelstra’sresourceconservationprograms and activities. • Established aPackagingInnovation Group to improve efficienciesand reduce the environmental impact of our packaging. • Completed aLife Cycle Assessment to determine the relative environmentalimpactsof online and conventionalpaper billing. 1 Peaknetworkdownlinkspeed.Actualcustomerdownloadspeeds willbelessandwillvaryduetotrafficloading,distancefromthecell, localconditions,hardware,softwareandotherfactors. Approach
  • 7. 5 Plannedactionsfor2008/09 • Calculatethecarbonfootprintsofallbusiness units andcorporategroups. • Determinethecarbonintensity(tonnesofCO2e/unit of service)ofTelstra’sEnterpriseandGovernment service offerings. • Increase the2009 EmployeeEngagementSurveyscore for‘environmentresponsibility’. • Completea studyonthehydrogenfuelcellfacility andsolarpanelsinstalledatourMelbourneheadquarters toassess theirpotentialuseinTelstra’snetwork andbuildings. • EnhanceTelstra’s drivereducationprogramwith anawareness programtoencourageourfleetdrivers toadoptgreendrivingtechniquestoreducefuel consumptionandCO2emissions. Approach Telstra touchesnearly everyAustralian, everyday
  • 8. 6 Telstra profile Telstra is the only communications company in Australia that canprovide atruly integrated telecommunications experience acrossfixed line,mobiles,broadband,information, transactions,search,and pay TV.We have one of the best known brands in the country and provide 9.4 million Australian fixed line and more than 9.3 million mobile services,including 4.4 million 3Gservices. Telstraprovides: • basic accessservices to most homes and businesses in Australia; • localand longdistance telephone callsin Australia, and internationalcallsto and fromAustralia; • mobile telecommunicationsservices; • broadband accessand content; • acomprehensive range of dataand internet services (including through BigPond,Australia’s leading internet service provider); • management of business customers’IT and/or telecommunicationsservices; • wholesale services to other carriers,carriage service providersand Internet Service Providers; • advertising,search and information services (through Sensis®,Australia’s leading directory and search company);and • cable distribution servicesfor FOXTEL’scable subscription television services. Performanceindicator 06/07 07/08 Financial Salesrevenue $23.7billion $24.7billion EBIT $5.8billion $6.2billion Profitaftertaxandminorityinterests $3.3billion $3.7billion Ordinarydividends(centspershare) 28 28 Socio-economic Totalworkforce 47,840 46,649 Totaldomesticworkforce 35,706 33,982 Wagesandsalaries $4billion $4.2billion Local,stateandcommonwealthtaxes $1.8billion $1.7billion Dividendstoshareholders $3.4billion $3.4billion Accruedcapitalexpenditure $5.9billion $4.9billion Community LondonBenchmarkingGroup(LBG)measureofcommunityinvestment $18.8million $29.2million Employees Employeeengagement 73% 74% Womeninmanagementroles 25.8% 24.6% Lost timeinjuriesfrequencyrate(permillionhoursworked) 2.14 2.54 Highlyeffective/effectiveHealthSafetyEnvironment(HSE)audits 88% 71% Learningdevelopmentinvestment $60million $75million Learningdevelopmentinvestmentperemployee $1,500 $1,626 Keyperformanceindicators Approach
  • 9. 7 Performanceindicator 06/07 07/08 Environment Greenhousegasemissions(tonnesCO2e) 1,390,306 1,500,803 Greenhousegasemissions(tonnesCO2e/$millionrevenue) includingunmeteredsites N/A 60.4 Greenhousegasemissions(tonnesCO2e/$millionrevenue) excludingunmeteredsites 58.7 57.8 Greenhousegasemissionstotalsavings(tonnesCO2e) 173,998 173,686 Totalwasterecycled(tonnes) 33,266 32,981 Wasterecycled 65% 69% TotalenergyUse(GJ) 5,848,601 6,064,687 TotalenergyUse(GJ)/$millionrevenue 247.1 244.3 Volumeofofficepaper(reams) 256,774 220,856 Volumeofpaper(reams)peremployee 7.2 6.5 Watersavings(kilolitres) 87,318 52,019 Telstraowns 50 percentofFOXTEL,anditsinternational businesses include: • CSLNew World,one ofHongKong’sleadingmobile operators; • TelstraClear Limited,thesecondlargestfullservice carrierinNewZealand; • ReachLimited,a providerofglobalconnectivityand international voiceand satelliteservices;and • majoritystakes in SouFunHoldingsLimited,a leading realestateandfurnishingswebsiteandNorstarMedia andAutohome/PCPop,twoChineseinternetbusinesses operating autoanddigitaldevicesites. Corporate governance at Telstra The Telstra BoardhasdeterminedthatTelstra’scorporate objectiveistocreatelong-termshareholdervaluethrough providing integratedcommunication,informationand entertainmentservices,andcustomerfocusedsolutions. The Telstra Boardis committedtoexcellencein corporate governanceandtheenhancementofitsshareholders’ interests.Ourmain corporategovernanceand Board practicesaredescribed inourAnnualReport,available atwww.telstra.com.au/abouttelstra/investor Weregularly review andupdateourcorporategovernance practices.TheBoardevaluatesand,whereappropriate, implementsrelevant proposalswiththeaimofensuring that wecontinuetodemonstrateourcommitmenttogood corporate governance,havingregardtodevelopmentsin marketpracticeandregulation. WecomplywiththeASXCorporateGovernanceCouncil’s PrinciplesofGoodCorporateGovernanceandBestPractice RecommendationsreleasedinMarch2003.Followinga reviewofTelstra’sgovernanceframeworkandinlight ofthereleaseoftherevisedASX CorporateGovernance PrinciplesandRecommendations(2nded)(RevisedPrinciples Recommendations),theTelstraBoardmadethedecision to adopttheRevisedPrinciplesRecommendationsforthe2008 financialyear,aheadofthetimethattheybecomemandatory, asencouragedbytheASXCorporateGovernanceCouncil. The Telstra Values provide the most fundamental direction onwhat type of company weaspire to be,and what type of behaviour we regard asappropriate.Asa values-driven company wego beyond simply complying with minimum standards of personal conduct.Our goalisto make every decision and every action one that we can be proud of. Keyperformanceindicatorscontinued Approach
  • 10. 8 Corporate responsibility governance AtTelstra,ourcommitmentto corporateresponsibilitybegins with asimple andstraight-forwardcommitmenttoprincipled decision-making inallthatwedo. The Telstra Values,Telstra’sBusinessPrinciplesand CompanyPolicies,including theCodeofConduct,setout the practices,principlesand standardsofbehaviourTelstra expectsemployees and contractorstoadoptin performing their work.Togethertheyreflectourobligationsand underpin thewayweworkwithourcustomers,ourshareholders, our colleagues,theregulatorybodieswedealwith, our suppliersandstakeholdersinthecommunity. DavidQuilty,GroupManagingDirector,PublicPolicy Communications,has responsibilityforTelstra’sCorporate ResponsibilityBusinessPrinciple,whichstatesthat, from aprincipledperspective,ourprimarycorporate responsibilitiesareto: • providegoodjobsatgoodwages; • servetheneedsofourcustomers; • increaseshareholdervalueandprotectshareholderinterests; • provide good stewardshipoftheenvironment–first and foremostbyconservation(ie,byincreasingefficiency inthewayweuseresources),reducing operatingcosts andminimising ourenvironmentalfootprint; • contributeresources–people,money,technology, products andservices–tosupportthecommunitiesin whichweoperateandtheneedsofthelargersociety;and • advancethenationalinterestbystrengtheningthecapacity ofthenation’s telecommunicationsnervecentre,operated by Telstra,andprovidingthenationafoundationfor economic growth,productivityimprovement,sustainable prosperity,andglobalcompetitiveadvantage. Allmanagersandsupervisorsarerequiredtotakeall reasonablestepstoensurethatemployeesandcontractors undertheirsupervisionhaveaccessto,areawareof,and complywith,allrelevantTelstraBusinessPrinciplesand the relatedcompanypolicies.Telstraexpectsitsmanagersand supervisorstofosteraworkenvironmentthatencourages ethicalbehaviourandcompliance. As such,corporateresponsibilityispartofourdaytoday activities.Management,supervisorsandstaffaresupported bytheCorporateResponsibilityandCommunityInvestment team,whichprovidestheoperationalmanagementand coordinationofcorporateresponsibilityactivitiesand communications.In addition,workinggroupsareestablished toaddresskeysocialandenvironmentalissuesastheyarise. Forexample,in 2007/08 theClimateChangeReviewGroupwas establishedtoensurea coordinatedapproachtomanaging climatechangeissues. Reportingandbenchmarkingperformance Telstraiscommittedtoimprovingourcorporateresponsibility performance.Weparticipateinexternalsurveystobenchmark ourperformanceandproduceanannualreporttohighlight ourachievementsandchallenges. In 2007/08,TelstraparticipatedintheCorporateResponsibility Index,achievingaratingof87percent,withoutstanding resultsincommunitymanagement(100 percent).Wewill betakingaleaveofabsencein2008/09 inordertofocuson implementingstrategiestofurtherimproveourperformance. In2008,wealsocompletedasubmissiontotheDowJones SustainabilityIndexandachievedaratingof70percent. Thisindexidentifiescompaniesthatleadpeersincreating long-termshareholdervalueandassessesabilitytomanage riskandleverageupsideacrosstheeconomic,socialand environmentalagenda. To measure our community contribution,Telstra participated in the London Benchmarking Group (LBG) process for the second time in2008.LBG Australia/New Zealand isa business membership organisation that providesaframework for membersto measure and benchmark their corporate community contribution. For 2007/08,Telstra’s corporate community contribution wasvalued at$29.2 million,building on the contribution of $18.8 million during2006/07.The increase isattributed to the inclusion this year of a wider range of Telstra’s community investment activities,the one-off contributions to support victims of cyclone Nargis in Myanmar and the earthquake in the Sichuan province of China,and Telstra’s voluntary contributionsin the lead up to World Youth Day 2008. Telstra has reported annually on its corporate responsibility performance since 2003 through its Corporate Responsibility Reports.These reportscan be accessed on our website at www.telstra.com.au/abouttelstra/csr/reports.cfmalong with summary reportsof CRI,DJSIand LBGresults. 2003 2004 2005 2007 Corporate Responsibility Indexresults 88.49% 90.21% 88.6% 87% Approach
  • 11. 9 Stakeholder engagement AsacompanythattouchesthelivesofnearlyeveryAustralianeveryday,Telstrahasawiderangeofstakeholdergroupsand along historyofengagingwiththem.Consultationanddialoguewithkeystakeholdergroupshelpstogatherinputandideas, inform ourdecision making,strengthenourrelationshipsandbuildtrust.Telstramakesa genuineefforttoengagewithand understand itskeystakeholders,throughbothformalandinformalmechanisms.Webelievethatengagementand consultation helpsus tobettermeetourcustomers’needs,improvescustomerloyalty,enhancesemployeesatisfaction,buildsbroader communitysupportandultimatelystrengthensshareholdervalue. Stakeholder Interestsandconcerns Engagementmethods All Australians Australiansareinterestedinthe fullrangeofTelstra’sactivities nowwearetalking.com.au–onlineforumfor peopletobecomeinvolvedandhaveasay on issuesaffecting allAustraliansandthetelecommunicationsindustry www.telstra.com–Telstra’scorporatewebsiteprovidesinformation for customers,shareholdersandother interestedmembersofthepubliconthelatestactivitiesatTelstra.Includespublicreports Communities Telstraoperatesincommunitiesacross themetropolitan,regionalandremote areasofAustralia.Ourcommunities includenon-governmentorganisations Communities areconcernedabout accesstoservicesandtheimpactof ourbusinessonlocalcommunities • TelstraCountryWideRegionalConsultativeForumhelpstoidentify thecommunicationsissuesof importanceinregionalAustralia • Ourmobilephonebasestationsitingconsultation processeshelpTelstraoperateresponsibly in designing, operatingandmanagingmobilephonebasestationsandtominimisetheir impacton thecommunity • TelstraFoundationengageswithcommunity organisationson issuesimpactingthelivesofchildren and youngpeoplethroughitsphilanthropicgrantsprogram Customers Ourcustomersincluderesidential consumers,smalltomediumenterprises andlargecompaniesandorganisations andgovernment Our customers are interested in the quality,affordability and accessibility of our products and services,and the privacy and security of their personal information and services TelstraDisabilityForumandDisability EquipmentProgramConsumer Advisory Groupprovidemechanisms forconsultationonourdisabilityaction plan TelstraConsumerConsultativeCouncilandCreditManagementWorkingGroupfacilitatediscussion on issues thateffectresidentialcustomers LowIncomeMeasuresAssessmentCommitteeprovidesadviceon theongoingeffectivenessofTelstra’s low-incomepackage T[life]™shops,CustomerExperienceCentre,TelstraMentors,andtheCommunity Advocacy Programprovide opportunitiesforustoassistourcustomerstomeettheir needs Weundertakeongoingmarketingandresearch tohelpusunderstandwhatour customerswant Approach
  • 12. 10 Stakeholder Interestsandconcerns Engagementmethods Employees Telstra’sworkforceislargeand diversewith33,982employees in Australia Our employees have a broad range of concerns,including working conditions, development opportunities and health and safety,as well as a wide range of interests in issues affecting their local communities and environments • EmployeeEngagementSurveyprovidesallemployeestheopportunity toexpresstheir views abouttheirjobs,thecompanyandtheir workingenvironment • YabberisaTelstra intranetsitethatprovides employees an opportunity toshare their personal stories – triumphs,challengesandpassions–with allstaff • EmployeeengagementopportunitiesrelatingtosocialandenvironmentalissuesincludetheDiversity ChampionNetwork,VirtualWomen’sNetwork andGreen.Challenge@Telstra Government Ourgovernmentstakeholders areatlocal,stateandnational levels,fromMinistersandleaders to departmentstaff Telstracommunicatesregularly withgovernmentsonarangeof commercial,policy,regulatory andothermattersintheinterests ofitsshareholders,customers andemployees • Telstra’sdealingswithgovernmentsareconductedopenly andhonestly • Constructiverelationshipsarebuiltandmaintainedacrossalllevelsofgovernmentby our senior leadership, Telstra’sGovernmentandCorporateRelationsteamandTelstraCountry Wide • Wearerequiredtoworkwithinrelevantgovernmentlegislativeframeworksandtoreportour compliance and performance • OurRegulatoryAffairsteammanagesTelstra’srelationshipwith statutory regulatorsandindustry bodies • Telstraparticipatesinregularforumsandselectedeventswith local,stateandFederalgovernmentagencies • Telstra’sEnterpriseandGovernmentbusinessunitworkswith governmentcustomerstodevelopanddeliver accesstoworld-classinformation andcommunication solutions Industry ThesestakeholdersincludeInformation andCommunicationTechnology(ICT)and telecommunicationsspecificassociations, as wellassector-specificassociations Industrystakeholdersareinterestedin issuesimpactingthetelecommunications industry,including regulation,market trends,consumerprotection,and technologyandservicedevelopments • TelstraisamemberofthekeyICT industry groups,includingtheCommunicationsAlliance,theAustralian MobileTelecommunicationsAssociation,theAustralian Information IndustriesAssociation,theInternet IndustryAssociation,andtheAustralian InteractiveMediaIndustry Association • TelstraisamemberoftheMobileCarriersForumthatdealsspecifically with socialandenvironmentalissues withinpolicy,regulatoryandoperationalenvironmentsassociatedwith thedeploymentandoperation of mobilephonenetworks • Telstra’sIndustryAnalystRelationsfunction strengthensdomesticandglobalrelationshipswith specialist analystsonICTindustriesandmarkets • TelstraisamemberoftheAustralian Industry Group,Australia’smajor businesslobby group • TelstraisamemberoftheAustralianServicesRoundtable,thepeaklobbygroupfortheAustralianservicessector Approach
  • 13. 11 Stakeholder Interestsandconcerns Engagementmethods Investmentcommunity Thisstakeholdergroupincludes institutionalinvestorsand sell-sideanalysts Investors andanalysts areconcerned with therisk inherentinand return providedbytheirinvestment,and theabilityof thecompanytomeet itsobjectives • OurannualInvestorDayisanopportunity for Telstratoprovideadetailedupdatetothefinancialmarkets ontheperformanceofthevariousbusinessunitsandon thecompany’stransformation • TheInvestorCentreatwww.telstra.com.au/abouttelstra/investorisadedicatedresourcefor shareholders andpotentialinvestors • TheInvestorRelationsunitregularly engageswith investorsandanalysts,andco-ordinatesmeetings for theinvestmentcommunitywith senior management Media Includesrepresentativesfrom print,radio,TVandonlinemedia ThemediareportsonTelstramore thananyotherbusinessor organisationinAustralia • Telstraengagesregularlywiththe mediathrough our mediaspokespeople,corporateaffairsmanagers, generalmanagersandotherappropriateofficerswithin thecompany toprovideinformation thatisin thepublicinterest Shareholders Telstrahas1.4 millionshareholders Shareholders areinterestedinfinancial returns,company performance and governanceissues • Telstravaluesadirect,two-waydialoguewith shareholdersandbelievesitisimportantnotonly toprovide relevantinformationquicklyandefficiently,butalsotolisten,understandshareholders’perspectivesand respondtotheirfeedback • Telstrakeepsshareholders informed through Annual General Meetings,an annual report and bi-annual shareholderupdates • TheInvestorCentreatwww.telstra.com.au/abouttelstra/investorisadedicatedresourcefor shareholders providinginformationaboutoursharepriceandfinancialperformance,presentationsandannualreports Suppliers Telstraengageswitharound 8,000supplierseachyearwith a totalspendaround$11billion Suppliersareinterestedin secure andstablerelationshipswithTelstra • Telstraregularlyengageswithsuppliersthroughoutandafter thesourcingprocess.Our vendor managers monitorand manageTelstra’scommercial relationship with its suppliers andaddressdelivery,quality,social and environmentalissues • TheSupplyingtoTelstrawebsiteatwww.telstra.com.au/supplying_to_telstra providespracticaladvice toprospectiveandcurrentsupplierson supplyingtoTelstra Approach
  • 14. 12 Our material issues In determiningour materialissues,Telstrahasconsidered the significant economic,environmental and social impacts of our businessthat may affect our value,operations, reputation and longevity.We have taken into account the followingkey internaland externalfactors: • businessstrategy and impact of Telstra’stransformation; • Telstra’scompany values,code of conduct,business principlesand corporate responsibility principles; • core competenciesof Telstra; • significant risksto the company and criticalfactorsfor ensuringTelstra’ssuccess; • key future challengesfor our industry; • concernsraised by our stakeholdersthrough the range of mechanismswe have in place for stakeholder engagement; • relevant laws and regulations,for example the proposed National Greenhouse and Energy Reporting System and the Emissions Trading Scheme,and the newForward with Fairnessindustrialrelationslegislation; • key future challenges for our society as identified by social and environmental experts,governments and grassrootscommunity organisations;and • sustainability context,including the Global Reporting Initiative,MillenniumGoals,and United Nations Global Compact. Telstra’sCEOSolTrujilloandNationalEnergyManagerAllanGontarview the newlyinstalledhydrogenfuelcellandsolarpanelinJune2008. Approach
  • 15. 13 Issue Mainstakeholdersaffected Impact KeyelementsofTelstra’sresponse Seepages Climate change Customers Shareholders Communities Industry Telstrahasa significantopportunitytocontribute constructivelytoreducethecarbonintensityofsociety throughtelecommunicationsproductsandservices Telstraisspreadingthemessagethrough our landmark publication, TowardsaHigh-Bandwidth,Low-CarbonFuture:Telecommunications-based OpportunitiestoReduceGreenhouseGasEmissions,andby developing offeringsthathelpour customersreducetheir carbon emissions 16 Extending accessto communications Customers Shareholders Communities Industry Government Deliveringanewhigh-speedNationalBroadbandNetwork acrossAustraliaisoneofthemostsignificantcontributions Telstracouldmaketothecountry’seconomicdevelopment, socialinclusionandglobalcompetitiveness Telstra’scommitmenttoitsshareholdersandthewider community hasunderpinned a passionate and targeted BroadbandAustraliaCampaign 15 Regulatory environment Customers Shareholders Communities Industry Government TheregulatoryenvironmentcontinuestoimpedeTelstra’s abilitytoinvestconfidentlyinnewtechnologyandtodeploy advancedservicestoallAustralians Weengagewith governmentandregulatorstolobby for aregulatory environmentthatenhancesthepotentialfor investmenttoprovide Australiawith thetechnology tocompeteinternationally 15 Energy efficiency Customers Shareholders Communities Employees LikeallAustralianbusinesses,Telstrafacesuncertainty abouttheimpactonourbusinessandonthewidereconomy ofthe proposedCarbonPollution ReductionSchemeand relatedpolicies Wearecommittedtoimprovingour energy efficiency acrossour business,supply chain andcustomer base 58 Employee relationships Employees Contractors ThesuccessofTelstra’stransformationandoureconomic sustainabilityreliesonstrongemployeerelationships Wearecommittedtocreatingasafeandengagingworking environmentfor our people 36 Humanrights Employees Supplychain Customers Communities Thereisgrowinginterestintheroleofbusinessesinadvancing humanrights.ConsiderationofhumanrightsinTelstra’sbusiness decisionsand operationshas thepotentialtomanageriskand realisenewbusinessopportunities Telstraaddresseshuman rightsconcernsin our workforce, productsandservicesandsupply chain 2638 Approach
  • 16. 1Society matters We believe that what is good for Australia,is good for Telstra.We take our corporate responsibility seriously. Phil Burgess,outgoing Group Managing Director,Public Policy Communications Businessenterprisessignificantlyimpactsocietyinwaysthat reachwellbeyondthecommunitysphere.Asthe principal wealth-creatinginstitutionsofoursociety,businessandthe privatesectormustplayapivotalroleinshapinganation’ssocial, economicandenvironmentalpoliciesandcontributingtoprogress andprosperityineverysphere –fromtheartsandstrong civic institutionstoeconomicdevelopmentandtaxpolicy. Considertheeconomicdimensionofcorporateresponsibility. Telstra’smostimportantachievementoverthepastyear isto providejobstoover46,000people,paying$4.2billioninsalaries andwages.Wealsopaid$3.4billionindividendstoshareholders; paidover$1.7billioninCommonwealth,stateandlocal taxes; purchasedmorethan$11billioningoodsandservicesfrom around8,000 suppliers,manyofthemsmallandmedium-sized businessesthatprovidejobs,taxesandwealthtolocal communities;andinvestedseveralbilliondollarsinnetwork maintenanceandimprovements–includingtwo high-speed nextgenerationnetworks.Whenyoustopandthinkaboutit,the economicsofTelstra’soperationhaveasignificantsocialimpact. Itisalsoimportantthatcorporationsseekopportunitiesto advancethenationalinterest.ForTelstrathismeansnotjust complyingwithlawsandregulationsbutalsoadvocatingfor reformwherereformisneeded,strengtheningthecapacity of thenation’stelecommunicationsnervecentreand,through this,providingthenationwithafoundationforeconomic growth,productivityimprovement,increasedprosperity, andglobalcompetitiveadvantage. AtTelstra,we havea 21st century vision for Australia:to advance the economic,social,and commercial interests of people,business and communities inAustralia by maximisingthe benefitsof digitaltechnologies.Already, wehave delivered the Next G™wireless broadband network and we are eager to provide a high-speed fibre-based NationalBroadband Network for the country. As Australia’s largest telecommunicationscompany,we are well placed to have a measurable and positive impact on the nation’s well-being and its social,economic and commercial performance.Businesses of all sizes are using Telstra’s next generation networksin innovative waysto save time and fuel, and toincrease productivity.People and communities are usingTelstranetworksto connect to each other and the outside world and to reduce the tyranny of distance –a bigissue for Australia because connectivity isthe primary driver of political stability,economicprosperity,and socialmobility. Because we believe in astrongcivicorder,we believe business engagement in issuesof national importance is essential to ahealthy and resilient society.Telstra sees this engagement asacorporate responsibility.We engage on key socialand environmental issues that challenge our nation,suchas climate change,cyber-security and improvements in the way we deliver health and education servicesto the public. We also provide apublic forum for education and dialogue about the impact of telecommunicationson society with our nowwearetalkingwebsite.
  • 17. 15 Telstra’s primary socialresponsibilityasabusinessenterprise istoprosperand innovate.Itmakesgoodbusinesssenseto measurethefullimpactofourbusinessdecisionsonthelarger society,toidentifywayswecanimprove,andtocontribute positively toAustralia’s futuredevelopment–becausewe believethatwhatis goodforAustraliaisalsogoodforTelstra. Influencing public policy Webelieve oneofthegreatstrengthsofdemocraticsocietiesis that theyprovidea healthyarenaforvigorousdebatebetween the publicandprivatesectorsonimportantnationalmatters. That’s whyTelstra participatesindebateson issuesthatimpact our business,as wellasoureconomicandsocialcontribution. NationalBroadbandNetwork Telstrabelieves thatdeliveringa newhigh-speedbroadband networkacrossAustraliais oneofthemostsignificant contributions wecanmaketothecountry’seconomic development,socialequityandglobalcompetitiveness. ANational Broadband Network(NBN)willallowAustralian consumersand businesses tousenewapplicationsand services being developedhereandaroundtheworld.Theseservices canimproveaccess tohealthcare,education,publicsafety, onlinemedia and governmentandbusinessinformation andservices,especiallyforruralandregionalAustralians. Webegan withour NextG™wirelessbroadbandnetwork,and havebeenplanningtobuildanNBNforoverthreeyears.Justas Telstrahas beenthecompanytodelivertelecommunications throughout Australia forover100years,we areready tobuild thisnetwork,as long asitmakesbusinesssensetodoso. Amassive,high-risk investmentisnecessaryfor theNBN,but the currentregulatoryregimeunderminesthepotentialfor investment byleavingthedooropentotheregulator,the AustralianCompetitionandConsumerCommission(ACCC), to shiftthegoalpostsafterthenetworkhasbeenbuilt. Australia needsa paradigmshiftinitsregulatoryenvironment ifitistoencouragetheinvestmentrequiredtogettheNBNbuilt. Telstra hasbeenworking towardsthis,and atthesametime pursuingreformstoPartXICof theTradePracticesActthat arecurrentlyprovidingawiderdisincentivetoinvestment. AspartoftheNBNdiscussion,Telstraisalsoadvocatingfor a thoroughexaminationofthevariousregulationsthathave asocialpolicyimpact,toensuretheobligationsofnetwork providersarefullycostedandresponsiblyassigned. In2007/08,Telstrachallengedthecurrentextentofregulation throughseveralmajorexemptionapplicationsmadetothe ACCC.Theapplicationsaddressedregulatoryconstraintsthat currentlyhinder,orputat risk,afairandcompetitiveoperating orindustryenvironment.Forexample: • Telstra’ssubmissiontotheNBNregulatoryreview challengedconventionalregulatorypolicyandoutlined ameansthroughwhichamulti-billiondollarinvestment innextgenerationaccesscouldproceed; • we advancedthecase toputfundingoftheUniversal ServiceObligation(USO)onamoresustainablefooting. Telstra’ssubmissiontotheUSO reviewproposednew modelstomoreaccuratelyestimatethecostofrural, residential,businessandpayphoneservicestobetterargue forenhancedfundingforruralandremoteservices;and • TelstrarolledoutADSL2+broadbandtechnologytoa further907 exchangesthatservea totalof2.4 million premisesaftertheFederalGovernmentsupportedthe positionthattherewasno compellingcase fordeclaring accesstoADSL2+services. BroadbandAustraliaCampaign Telstra’scommitmenttoitsshareholdersandthewider communityhasunderpinneda passionateandtargeted campaigntoeducate,mobiliseandinfluence,through democraticprocesses,thedecisionsthattheFederal Governmentmakesaboutpublicpolicy,andtoshiftthe regulatoryburdenonTelstra. PriortoourBroadbandAustraliaCampaign,verylittle informationabouttheimpactofregulationson Telstra andthetelecommunicationsindustryhadbeenprovided toconsumersandshareholders,despitethesignificant implicationsoftheseissuesforthenation. By enlargingthe arenaof discourse to involve shareholders, opinion leaders and the general public,Telstra shifted the discussions from behind closed doors and the specialist language of regulators,lawyersand economists. EstablishedinFebruary2007,ourBroadbandAustraliaCampaign continued to capture the support of staff,Telstrashareholders and members of the publicwho rallied behind our call for a nationalcommitment to buildinganewhigh-speed,national broadband network. Morethan11,000peoplesignedupasTelstraActiveSupportersvia our website,www.nowwearetalking.com.au.The site featured thelatestWeb2.0onlineactivismtoolsthatgavesupportersand thousands of other Australians information and the means to allowtheir voice to be heard in the debate on broadband issues. Achievementsin 2007/08 included: • more than 18,000 people put themselves‘on the map’ callingfor high-speed broadband; • morethan7,000peopleusednowwearetalkingtosendemails to localMPsand/or the Minister for Communications;and • almost4,000peoplesentemailstotheChairmanoftheACCC. We achieved our aim to elevate high-speed broadband to a first-tier publicpolicy issue inAustralia and asacentral issue in the November 2007 Federal election.The Australian Labor Party’s commitment to deliver just such anetwork wasa key policy position. The newFederal Labor Government re-named the Communications Minister’sportfolio to the Minister for Broadband,Communications and the Digital Economy,and commenced atender processfor afibre-to-the-node network to deliver high-speed broadband to 98 per cent of Australians. In 2007/08,TelstraActive Supportersalso voiced their protest to the FederalLiberalGovernment awarding$958 million of taxpayer’sfunds to the SingTel Optus and Elders joint venture OPEL.The decision was subsequently overturned by the new FederalLabor Government in April2008. 1.Society matters
  • 18. 16 1.Society matters nowwearetalking SinceDecember2005,Telstra’snowwearetalkingwebsite, www.nowwearetalking.com.au,hasprovidedaforum for publiceducationanddialogueabouttheimpactof telecommunications onsociety.Theinitiativeisrepresentative of howthenewTelstracommunicateswithitsstakeholders directlyandmorefrequentlyacrossabroaderrangeofissues. Thisyearthewebsitehasundergonearedevelopmentandhas launchednowwearetalkingTV,withanincreaseofvideoonthe website.nowwearetalkinghascontinueditsreputationasoneof corporateAustralia’smostinnovativeonlineforums.Duringthe 2007Federalelection,nowwearetalkingdedicatedaspecial Election2007areathatwasaone-stop-shopforinformationon telecommunicationspolicyduringtheelection.Thesitewasfree fromeditorialcommentsandwasavailableforallpoliticalparties topublishtheirpolicies.Thewebsitealsostreamedalivedebate betweenthethenMinisterofCommunicationsandShadow MinisterofCommunicationsontelecommunicationspolicy. Visitors tothewebsiteincludeTelstrastaff,customers, shareholders,politicians,competitorsandmedia,alleager to sharetheirviews andopinionsonissuesaffectingTelstra, thewidertelecommunicationsindustry,andthenation. nowwearetalking carriesnewsandviewsfromallperspectives –including thosewhodoanddon’tagreewithTelstra.Overa millionpeoplea yearvisitthewebsiteandwe aimtoincrease thattoover1.5 millionoverthenext12months. nowwearetalking is aimedatencouragingpeopletobecome more interestedin,andtalkmoreabout,thedigitalrevolution, andhow new digital technologiescanexpandchoicesfor people(ofallages andinterests),enterprises(bothlargeand small),andcommunities–nomatterwheretheyarelocated inAustralia.Thewebsiteraisesawareness abouthowsome publicpolicies andadministrativepracticespreventconsumers andthenation as awholefromenjoyingthefullbenefitsof livinginthedigitalage. In2008/09nowwearetalkingwillhavespecialsections dedicatedtotheenvironmentandtheNBN. Climatechange Climatechangehasbeenthedefiningsocialissueofrecent yearsandTelstrahasbeenproudtotakea leadershipposition intheemergingdebate.SincetheelectionoftheFederal LaborGovernmentinNovember2007,therehasbeena notableaccelerationinpublicpolicydevelopmentandthis has coincidedwithinternationaltrends.TheUnitedNations conferenceonclimatechangeinBaliduringDecember2007 wasmarkednotjustbyAustraliaratifyingtheKyotoProtocol butalsobyaroadmaptowardsanewglobalclimatetreaty tocomeintoforcefrom2012. Towardsahigh-bandwidthlow-carbonfuture Inthecontextofintensedebateaboutthedesignand potentialeconomicimpactsofanemissionstradingscheme, numerousstate-basedandvoluntaryschemestopromote renewableenergy,carbonoffsets,andenergyefficiency, Telstrawentbacktothebasics–conservationofresources. LaunchedinOctober2007,ourlandmarkpublicationTowards aHigh-Bandwidth,Low-CarbonFuture:Telecommunications-based OpportunitiestoReduceGreenhouseGasEmissions,commissioned fromindependentexpertsClimateRisk,hastakenourresource conservationmessagetoanewfrontier. Thereportbrokegroundinseveralways.First,itfocused attentiononreducingenergyconsumptionastheprimary meanstoachievemeaningfulcarbonabatement.Second,it describedseveninnovativewaystousetelecommunications networkstodeliversavingsthroughouttheeconomy.Third,it wentasfarastoquantifythesavingspotentialofthesecarbon opportunities–almostfivepercentreductionin Australia’s totalannualgreenhousegasemissionsby2015.Finally,the reportwassubjectedtopeerreview,togiveindependent assuranceoftherobustnessofitsfindings. Theresponsetothereporthasbeenremarkable.Thereport has beenwidelyquotednationallyandinternationallyas demonstratingapracticalandoutward-lookingapproach tothechallengesposedbyclimatechange. Role of telecommunications Telstra’s CEO SolTrujillo champions the case for telecommunicationsto addressclimate change at local and major international forums.Sol Trujillo was the only Australian CEO invited to sit on a16-member World Economic Forum steering committeeon climate change.The steering committee’sstatement – signed by 100 CEOs from some of the world’s biggest companies –urges the G8leaders to take immediate action to tackle climate change,and says that businesshasthe skills,expertise and drive to lead the charge. The Federal Government’s proposed roll out of a National Broadband Network to 98 per cent of Australians will strengthen our effortsfor telecommunicationsto address climate change.This investment will enable Australians to access telecommunications-basedservices that canhelp them reduce their carbon emissions.Initiatives such asremote diagnosisof heath issues,telecommutinginstead of non- productive hoursspent in trafficgoingto and fromwork, and video conferencing instead of travel to meetings are just some of the immediately available ways telecommunications can be used to reduce our impact on the environment. Telstra has already taken the lead in Australia by showing that better use of telecommunications can reduce greenhouse gas emissions.We are working with third parties across Australia to develop innovative solutions that will reduce their operational costs,improve efficiency and reduce their environmental footprints. Regulation With continuing expansion of environmental regulation at State,Territory and Federal government levels,our compliance and reporting obligations are increasing.Climate change is bringing anew set of obligations into the mix,with some variation from jurisdiction to jurisdiction.Telstra has made submissionstotheFederalGovernmentontheEnergyEfficiency Opportunities Act,National Greenhouse and Energy Reporting Act,and the Australian Competitor and Consumer Commission white paper on green marketing.Our policy submissions have emphasised the desirability of streamliningregulation.
  • 19. Telecommunications-based opportunities to reduce greenhouse gas emissions Casestudy Telecommunicationsnetworkscanhelpreduce Australia’s greenhouse gas emissionsbyalmostfivepercentby 2015and deliverupto$6.6 billionayearincostsavingsfor Australian businesses and households,accordingtoa reportreleasedby Telstra inOctober2007. Asaleadershipinitiative Telstracommissionedclimatechange experts toquantifythepossiblecarbonanddollarsavingsthat could be achievedbybusinessenterprises,householdsand governmentsbyusingtelecommunicationsnetworkstoavoid or reduceratherthanjustoffsettheircarbonemissions. The Reportfoundtelecommunicationsnetworkscanfacilitate areductionin Australia’scarbonemissionsby 4.9percentor around27 million carbontonnesperyearby2015.Thisis equivalenttotheannualemissionscausedbynearlytwo- thirds ofAustralia’s passengercars. TowardsaHigh-Bandwidth,Low-CarbonFuture: Telecommunications-basedOpportunitiestoReduceGreenhouse GasEmissionsis a studybyclimatechangeexperts,Climate Risk.TheReportwas peerreviewedbyindependentexperts: WWF Australia’s ChiefExecutiveOfficer,Greg Bourne,and leading Australianenergyandenvironmentalauthority, DrHughSaddler. The Reportidentifies sevenmajoropportunitiesfor Australian consumers andbusinesses that,ifimplementedby 2015,could help reduceAustralia’s greenhousegasemissionsby around27 millioncarbon tonnesperyear.Individually,eachopportunity coulddeliverperannumcarbonemissionsavingsof: • 1.8million tonnes (Mt)byusingbroadbandtoremotely managepowerforappliancesnotinuseoron‘stand-by’; • 2.4Mtbyimprovingbusinessproductivitywith“in-person” high-definitionvideoconferencing; • 2.9Mtwithbroadbandbased,real-timefreightallocation systemstofillemptyfreightvehicles; • 3.0Mt withpresence-detectingservicesthatturnoff devicesthatare“on”butnotbeingused; • 3.1Mt withteleworkingand workinginregionalcentres byreducingcommutercartraffic; • 3.9Mt bybringingintegratedpersonalisedpublictransport toyourdoorwitha phonecall;and • 10.1Mtbyincreasingrenewableenergyusewithnetworked demand-sidemanagement. ClimateRisk’sDirectorofScienceandSystems,DrKarlMallon,said theintroductionofcarbontradingwouldrequireAustralian businessestore-thinktheirapproachtodoingbusiness. “TheReport’sopportunitiesshouldbepartofeverybusiness andgovernmentclimatechangestrategybecauseitcandeliver bigemissioncutsquicklyandwithminimaleconomicdisruption,” DrMallonsaid. “ThisReportprovidesthefirstsignificant,practicalanalysis inAustraliaoftheuseoftelecommunicationstoachieve increasedenergyconservationandcleanenergyproduction. Ouranalysisfoundthatbyharnessingsmarternetworksand devicesitispossibletodeliverreducedemissionswhilealso reducingexpenditureonenergyfortheenduser. “TheresultsindicateTelstracanplaya bigpartinthe solutiontoclimatechange.Thescaleofitsnetworks,services andcustomer-baseprovidesa uniqueplatformtopartner withbusinessesandhouseholdstoamakeasignificant contributiontoreducingthenationalcarbonfootprint.” A fullcopyoftheReportcanbefoundat www.telstra.com.au/abouttelstra/csr/reports.cfm
  • 20. 18 1.Society matters Issue Solution Product/Service Travel/FuelReduction AdditionalInformation Conferencing Collaboration RemoteVirtual VideoConferencing TelePresence ✓ Topoftherange/stateoftheartvideoconferencing. VideoConferencing TelePresence ✓ Enablesvirtualfacetofacemeetingsandsupportslarger numbersofattendees. VideoConferencing DesktopVideoConferencing ✓ Desktopsolution for individualfacetofacemeetingswith high quality images. VideoConferencing WebEx ✓ Enablesharingofapplicationsandhands-on visual/verbalcollaboration. VirtualContactCentre WebContactCentre ✓ Supportsavirtualcontactcentrethatlinksallformsofcommunicationswhilst abletorun on any connectabledesktopPCallowingaphysically diversestaffing andreducedtravelandalsoofficespaceimpactsfor homeworkers. RemoteWorkingSolutions iPassGlobalVirtualNetwork ✓ Providessecuremanagedaccesstocorporatebusinessessupportingemployees workingremotely andenablingreducedtravel. Telemetry RemoteTelemetry RemoteTelemetry ✓ Remotemonitoringandcontrolofmeteringandspecificapplication devices anywhere(andeverywhere) in thecountry enablingreduction in travel. Additionalenvironmentbenefitsdependingon application such aswater reductionswhen usedfor water management. VehicleRouting Management FieldWorkforceSolutions Xora Trimble EnterpriseMobilitySystem(EMS) ✓ Variousapplicationsfor fieldforcemanagementtostreamlinefieldwork includingjoballocation androuteplanning. Whereis®Navigator WhereisNavigator ✓ Smarttravelplanningmeansefficientroutingtohelppreventunnecessaryfueluse. NextGeneration Infrastructure TelstraNextIP™network BigPond,Velocity(FTTP) ✓ TheTelstra NextIP™ network is one ofthe largest,fully integrated national IPnetworksin theworld. NextG™network FlexiblePersonalisedTransportSolutions ✓ Leadingedgewirelessnetwork thatunderpinsnotonly Telstra’sbutan extensiverangeofthirdparty productsandservices. Telstra’s productsandservices–fuelreductionsolutions
  • 21. 19 Internetsafetyandsecurity Wireless communication ischangingtheway we work,liveand relatetoeachotherinthe21stcentury.In 2007,eachAustralian household had,onaverage,morethanthreemobilephones –up from oneperhouseholdin1995;andin 2007,nineinten families hadaninternetconnectionwith75percentbeing broadband– upfrom sevenpercentin1995.Communications toolslikethesearebringingfamilyandfriendscloserby allowing them tostayconnectedwhenphysicallyseparated. However,withaccesstohigherbandwidthinternetconnections andnew technologies,thewaypeoplebehaveonlinehas changed.Therateofgrowthintheuseofsocialnetworking services anduser-generatedcontenthasincreasedmarkedly inAustralia and internationally.Therehasbeenashiftfrom the consumption ofcontenttointeractionwithcontent,and information hasneverbeenmoreintegratedoraccessiblein ‘real time’. Whilethesechanges haveincreasedourabilitytoconnect with eachother,drivenadvancesinproductivityand enhanced innovation,theyhaveacceleratedashiftin theriskstointernet users.Theseonlineriskscanbecategorisedintothreekeyareas2: 1. content– theriskofexposuretointernetcontentthat isillegalorconsideredtobeinappropriateforchildren. 2. communication – risksarisefrominterpersonal communications ontheinternet,suchascontactwith childrenbysexualpredatorsandcyberbullying. 3. e-security risks – associatedwitha varietyofinternet activities including thereleaseofpersonalinformation topublic forumsandconnectingahomecomputertothe internetwithoutprotection,whichmayresultinviruses, onlinefraud,spamandidentitytheft.Onanationalscale, e-security risks mayincludecyberattackonAustralia’s criticalinfrastructure. In2007/08 Telstraestablishedan internalWorkingGroup onInternetTrustSecurity.Wealsoworkwithindustry, government,communityorganisationsandinternetusers toaddresstherangeofevolvingonlinerisksandtodevelop measuresthatpromoteonlinesafety.AtTelstrawetake our responsibilityasatrustedinternetservicesproviderand integratedtelecommunicationscompanyseriously. Cybersafetyforkids In2007/08 theTelstraFoundationmadeathreeyear commitmenttoputtinga‘spotlight’oncybersafety.Anew $3 millioncommunitygrantsprogramwas establishedto helpdevelopprotectivemeasurestokeepAustralianchildren safewhileusingtheinternetandmobilephones.Throughthe spotlightoncybersafetyprogram,theTelstraFoundation supportsprogramsthathelpchildrenandyoungpeopledevelop theskillstheyneedtoenjoytheuseofinformationand communicationtechnologiesinsafe,supportedenvironments, andprogramsthateducateparentstobecomemore competentinaddressingcybersafetyissues. Nationale-SecurityAwarenessWeek InJune2008,TelstrasupportedNationale-Security AwarenessWeek,a FederalGovernmentinitiativethat aimstohelpAustraliansunderstande-securityrisksand educatecomputerusersaboutthesteps theycantaketo protectthemselves,familiesandbusinessesonline.Telstra’s CorporateSecurityInvestigationsledourinvolvement togetherwithrepresentativesfromSensisandTradingPost. As part of the week in June 2008,Telstra’s consumer marketing team and BigPond held a series of free seminars at Telstra’s T[life]™ store in Sydney.The seminars demonstrated how every parent can help build a safe online environment for their children.One of the world’s leading experts in e-learning and an advocate for child cyber safety,Dr Martyn Wild,shared some simple steps that parents can take to make the internet a safe place for their family.A booklet for parents,Help keep your kids safe online,was produced as part of this initiative. The booklet,along with some simple tips on cyber safety, can also be found by visiting the BigPond website at http://my.bigpond.com/help/security Cyber Safety Consultative WorkingGroup Telstra’s Corporate Security Investigations Unit represents the company on the Cyber Safety Consultative WorkingGroup. A key initiative of the FederalGovernment’scyber safety plan, the workinggroup hasrepresentation fromcommunity groups, internet service providers,industry associations,businessand government.It isexpected to provide advice to the Government on prioritiesand measuresrequired by legislatorsand industry to ensure world’sbest practice safeguardsfor children online. Australasian Consumer Fraud Taskforce The Australasian Consumer Fraud Taskforce,made up of a number of state and federal government bodies from Australia and New Zealand,launched aSCAM watch Fraud Fortnight awarenesscampaign driven by the Australian Competition and Consumer Commission.The campaign wasdesigned to educate consumers on how they canbetter protect themselvesfromscams. As an industry partner to the Taskforce,wehelp promote the campaign each year.This year,by using Telstra’s varied communication channels,the Taskforce’smessageswere delivered to over 2.7 million BigPond customers,550,000 TradingPost usersand 40,000 employees. VirtualGlobalTaskforce The Virtual Global Taskforce (VGT)iscomprised of global law enforcement agencies working together to fight online child abuse.Its objectives are to make the internet asafer place,to identify,locate and help children at risk,and to hold perpetratorsappropriately accountable. 1.Society matters 2 DevelopmentsinInternetFilteringTechnologiesandotherMeasuresforPromoting OnlineSafety,p.12,AustralianCommunicationsand MediaAuthority,2008
  • 22. 20 BigPond is anoriginal corporateindustrypartnerofthe VGTsinceits inceptionthreeyearsagoandwas thefirst Australianinternetserviceprovidertoacknowledgeitsvalue. AsanindustrypartneroftheVGT,Telstrademonstratesits commitment tocommunitysafetyandcrimereduction,and helpstoreducethethreattochildrenonline.Telstraattended the thirdInternationalVGTconferenceinCanadain February 2008,whichfocusedonbuildingawareness andunderstanding of thechallenges facedwhenfightingaborderless,cross jurisdictional crime.Theconferencerecognisedthatno single agency,organisation orcompanyalonecan winthefight of protecting ourmostvitalresource–ourchildren. TechnologyandWellbeingRoundtable TheTelstra Foundation,incollaborationwithInspire Foundation,established aTechnologyandWellbeing Roundtable,a forumthatbringstogetherasmallgroup of industry leadersfromallsectorsofthecommunity,to exploreopportunities toworkcollaborativelyand reduce therisksassociatedwithtechnology.Establishedin2008, the groupaims todevelopinnovativeinitiativesthatharness the poweroftheinternetandrelatedtechnologytoimprove wellbeing.SomeoftheroundtableparticipantsaretheNSW Commission forChildrenandYoungPeople,theAlannahand MadelineFoundation,NAPCAN,MicrosoftandMySpace. CyberStorm II Telstra continuedtoworkcloselywithgovernmentand industry toensurethecountryis readyfor andresilientto possible attacksonits networkand constantlyinvestsin newtechnologytoprotectitscustomers.Today’ssecurity challenges reinforcethebenefitofTelstra’sparticipation inaninternationalsimulatedcyberexercisecalledCyber Storm II,whichtookplaceinMarch2008. Cyber StormIIwas partoftheUnitedStates’Departmentof HomelandSecurity’songoingefforttoreducecyberattacks andenhancegovernmentand privatesectorabilitiesto communicateandcooperateinresponsetoacyberincident. Australia,alongwithCanada,theUnitedStates, NewZealandandtheUnitedKingdom,participatedin theexercise.Over50 Australianorganisations,including criticalinfrastructuresectors,tookpartintheexercise designedtotesthowwellcriticalcross-sectorandinter- governmentalcybersecurityprocessesoperateandhow stakeholdersrespond.As akeymediacommunications company,Telstrawasintegraltotheexercise. Telstra’sinvolvementinthiscollaborativeindustryand governmentexerciseprovidedtheopportunitytosimulate responsestoalargescalecyberattack,applykeylearnings tocurrentpracticesanddevelopimportantnetworkswith lawenforcement,governmentsandpeerorganisations. CyberStormII reinforcedtheneedforTelstra’senterprise andgovernmentcustomerstoproactivelyprotectthemselves againstcybercrime.Telstraofferedinformationandbriefings onasophisticatednewsecuritysystem,DistributedDenialof ServiceProtection.Thisprotectionserviceinterceptsanattack intheonlinenetworkand redirectstheoffendingtrafficto preventthecustomer’sinternetgatewayfromshuttingdown. Thenetwork-based,managedsecuritysolutionisaneasy and scalablewaytoprotectcustomernetworksfromDistributed DenialofServiceandotheronlinesecuritybreaches. Electromagneticenergy Telstraacknowledgesthereissomecommunityconcern thatexposuretolowlevelsofelectromagneticenergy(EME) fromourtelecommunicationsbasestationsandmobile telephonehandsetscouldleadtoadversehealtheffects. TelecommunicationsfacilitiesemitradiofrequencyEME as“radiowaves”orradiosignals.Otherradiowavesignals transmittedbycommunicationsfacilitiesincludeTVsignals, AM andFMradiosignals,taxiservicesignals,pagingnetwork signals,emergencyservicecommunications,andpolice two‑wayradio. Telstra relies on the expert advice of national and international health authorities suchasthe Australian Radiation Protection and Nuclear Safety Agency – an agency of the Commonwealth Department of Health and Ageing,and the World Health Organisation (WHO) for overall assessments of health and safety impacts. The WHO reports that from all the evidence accumulated so far,“no adverse short or longtermhealth effectshave been shown tooccur from the radio frequency signals produced by base stations.” Onmobile phones,the WHO reports that“the overall evidence available to date does not suggest that the use of mobile phoneshasany detrimentaleffect on human health.” More information isavailable at www.who.int/peh-emf/about/WhatisEMF/en/index3.html During 2007/08,Telstra completed 1,131 mobile infrastructure projects which included 129 new development applications and 425 Australian Communication Industry Forum consultation proposals.The Australian Communications and Media Authority (ACMA) confirmed that they received five complaintsregardingTelstraproposalsthisfinancialyear. Each year,Telstrapublishesinformation on the Radio Frequency NationalSite Archive aspart of our transparent approach to EMEand telecommunication.Thisyear thisincluded: • Environmental EME Reports:7,057 updates to 4,130 distinct sites; • EME Compliance Certificates:1,426 updates to 1,260 distinct sites;and • Radio CommunicationsSite Management Books: 1,719 updatesto 1,451 distinct sites. 1.Society matters
  • 23. In2007/08,wepresentedatsixleadinginternationalEME conferencesandworkshops,includingtheBioelectromagnetics Society Annual MeetinginSanDiego,and providedsponsorship fortheAustralianCentreforRadiofrequencyBioeffectsResearch ScienceWeek2007.TheaimoftheScienceWeekis toimprove the public’s understandingofradiocommunications technology. EMEresearch Telstra employsthreefull-timeresearch professionals intheChiefTechnologyOfficetooversee andsupportour engagementinexternalEMEresearch.Thisresearchis conductedprimarily incollaborationwiththeAustralian CentreforRadiofrequencyBioeffectsResearch. In 2007/08,researchprojectsundertakenwiththeCentre includedhuman,animalandisolatedcellculturestudies onpotentialhealtheffects;dosimetrystudiesfor more robust exposurestandardsdevelopment;andextensive reviewing ofthescientificliteraturetoprovidethemost up-to-dateknowledge oftheglobalresearch effortand the latestconclusions onpotentialhealthimpactsfrom exposuretoEME. Also in2007/08,incollaborationwithSwinburneUniversityof Technology,Telstraopenedanew$600,000research facility atSwinburne’sHawthorncampusinMelbourne,toundertake specialised radio frequencydosimetryresearch and tosupport the researcheffortsoftheothercollaboratorsoftheAustralian Centre forRadiofrequency BioeffectsResearch.Telstra contributed$300,000andlabequipmenttothenewfacility. SuperClubsPLUS Australia Casestudy Aprotectedandsafeonlinelearningcommunityfor young AustraliansisnowarealitythankstotheeffortsofIntuitive MediaAustralia,La TrobeUniversityandthe Telstra Foundation. Theactiveeducationprogram,SuperClubsPLUSAustralia, equipschildrenwiththeskills,confidenceandaptitude to effectivelyandsafelyengageontheinternet. Providinganonlinevoiceforsixto12yearolds, SuperClubsPLUSAustraliaisalocalisedversion ofaninitiativeofIntuitiveMediaUK.Itincludes Australianmediatorsprotectingandencouraging childrenin‘realtime’,andlocalcontent,partnersand curriculummappingacrossalleducationjurisdictions. SuperClubsPLUSallowsyoungpeopletosafelyexplore theiridentity,andreachouttosignificantadults,suchas children’sauthors,guestpoliticians,andjournalists,aswell aseachother,through‘SuperHot-Seats’.‘SuperClubbers’ cantalktolocalandglobalaudiences,butareprotected by asophisticatedmixofsoftwaretools,intelligentsystems andreal-timemediators.Itisasaferalternativetothe online communitiesfoundinMySpace,YouTubeandBebo. UsingSuperClubsPLUShelpsyoungpeopledevelopan advancedunderstandingofonlinetoolsandtechnologies, andanopportunitytousetheminpurposefulactivities. Inaddition,SuperClubsPLUSAustraliaprovidesanonline spaceforchildrenandteacherstolearninadifferent environment.Informationandcommunicationtechnologies learningsfromeachofthestates’educationcurricularfor this agegroupwillbemappedtoprogramsinSuperClubsPLUS. Withover6,000kidssignedupinjustthefirsttwomonths ofSuperClubsPLUSgoinglive,theaimistohave40,000 childrenregisteredinthefirsttwoyearsoftheprogram. SpringGully Primary Schoolteacher,NarissaLeung, believes that SuperClubsPLUS Australia teaches students more than just computer skills. “It provides students with amoral compass for safe internet use and an authenticpurpose for both readingand writing,” MsLeungsaid. The Telstra Foundation,through the Community Development Fund’s Cyber Safety program,issupporting SuperClubsPLUS Australia with agrant of $1 million over two years. 21
  • 24. 22 Communityengagement KeytoTelstra’s siteselectionprocessistheneedtostrikea balancebetweenprovidingreliableservicesandminimising impactonthecommunityandthelocalenvironment.Telstra endeavourstolocatefacilitiesinindustrialand commercial areaswhereverpossibleinordertominimisedisturbancesto localcommunities. Adedicatedteam atTelstraactivelyreviewsnewsite proposals anddevelopssuitablecommunityconsultation plans.The levelofconsultationvariesdependingonthetype of facilityproposed(newsiteorupgradeofanexistingsite), local governmentpolicy and advice,andimportantlythe localarea andcommunity. Telstra invites nearbycommunitiesandlocalgovernment toactivelyparticipateintheconsultationprocess,and provides arange ofavenuesforengagementincluding writtennotification toresidents,advertisementsin local papers,notices attheproposedsite,local“drop-in”sessions ataneighbourhoodhouse,specialcouncilbriefings, telephonehotlines,housetohousevisitsandone-on-one informationsessions. Telstra providescomprehensiveinformationabout EMEandhealth,includingresearchandfactsheets, atwww.telstra.com.au/ememanagement Socio-economic contribution AsthetelecommunicationsnervecentreofAustralia, Telstra providesthenationwithafoundationforeconomic growth,productivityimprovement,sustainableprosperity andglobalcompetitiveadvantage.Asabusinessenterprise, wehave aresponsibility toourshareholdersandtothe nation to continually improve thefinancialperformance of ourcompanyanditsbusinesses.Bydoingthisina responsible way,wefosterprosperityintheindustries andcommunitiesinwhichweparticipate. Economicimpact Indesigning,developingandimplementingcommunications solutionsforourcustomers,Telstrahasa significantimpact ontheeconomythroughemployment,investmentand our supplychain.Duringthe2007/08 financialyear,Telstra’s businessactivities: • supported46,649jobs(totalworkforce); • paidout$4.2billioninsalariesandwages; • paidout$3.4billionindividendstoshareholders; • paid$1.7billioninCommonwealth,stateandlocaltaxes; • purchasedmorethan$11 billioningoodsandservices fromaround8,000suppliers;and • invested$4.9 billiontocontinuethebuildoutofthe NextG™wirelessbroadbandnetwork;thecontinued deploymentoftheTelstraNextIP™network;creation ofnewandadvancedbusinesssupportandoperating supportsystems;andotherinvestmentstotransformthe deliveryoftelecommunicationsservicesinAustralia. Financialsummary Yearended30June2008* 2007/08 2003 $M 2004 $M 2005 $M 2007 %change Salesrevenue 24,657 23,673 984 4.2 EBIT 6,226 5,779 447 7.7 Profitaftertaxand minorityinterests 3,692 3,253 439 13.5 Ordinarydividends (centspershare) 28 28 - - *Includes Sensis Industry awards In one of the biggest end-to-end transformationsever undertaken by aglobal telecommunicationscarrier,Telstra is nowpast the three year mark in itsfive year transformation. We are transformingfroma20th century phone company into a world classmedia-communications company,implementing next generation networks,transforming our IT systems and introducing market-based management to improve our customers’experience.The transformation,which issupported by globalstrategicpartnerssuch asAccenture,IBM,Ericsson, and Alcatel-Lucent,isproducingworld-leadingresults. In2007/08,Telstra’s achievements have been recognised by anumber of key industry awards,including: • 2008 TelecomAsiaAwards–‘Best Asian TelecomCarrier’ and‘Best Mobile Carrier’; • 2007 Australian Telecom Awards –‘Telecommunications Company of the Year’,‘CEO of the Year’,‘Best Internet Service Provider’,and‘Mobile Carrier of the Year’; • Global Telecoms Business Magazine’s 2007‘Innovation Award’for IT Transformation; • Australian Communications Alliance Awards –‘Innovation Mobility Award’for the TelstraNext G™network; • National Mobile Media Awards –‘Best Mobile Entertainment’;and‘Best of Show’for Wotnext; • International Engineering Consortium,Broadband World Forum – InfoVision Awardfor BigPond Wireless Broadband;and • Engineers Australia Excellence Award,Sydney Chapter of EngineersAustralia– Award for ControlSystems, Network Infrastructure and Telecommunications– TelstraNext G™network. The complete list of Telstra honours can befound at www.telstra.com.au/abouttelstra/corp/awards.cfm 1.Society matters
  • 25. “In the past,the Mobile Unit hasbeen unable to even connect to atelephone line. “This,coupled with the many and varied locationsthe Mobile Unit visits,and the challenge of the size and complexity of the x-rayimages –about 10 megabytes per single x-ray – hasrequired creative solutions.” BreastScreen Tasmaniaisone of the increasingnumber of organisations using the Next G™network toincrease efficienciesand drive improved productivity. Productivityandinnovation Telstra’s vision is foraNationalBroadbandNetworkfor all Australians,toenableaturbo-chargingofhealth,education, environmentalconservationanddevelopment,commerce, innovationandsocialinclusion.Wearealreadydelivering Australia’s largest and fastestnationalmobile broadband network. Ournetworksexplained The NextG™ networkisAustralia’slargestandfastest national mobile broadband network.Telstra’sNext G™ networkoffers thebestcombinedbreadthanddepthof third generation mobile coverageinAustralia,coveringmore thantwomillionsquarekilometres–morethanthreetimes the sizeofFrance.TheNextG™(850MHz)networkprovides 3Gservices and wirelessbroadbandaccess to99percentof the Australian population,spanningcityto countryincluding manyremotecoastal andruralcommunities,andistheworld’s firstnationalnetworktoofferupto200kilometrecellrange. Someadvantages oftheNextG™networkinclude: • moremobilephoneservices–inadditiontothestandard voicecalls andtextmessaging,theNextG™networkallows itsuserstomakeand receivevideocalls,and enjoy broadbandaccess totheinternet; • laptopandPDA access –theNextG™networkcanalso beaccessedusing laptopsandPDAsviaPCcards; • fasterdataspeeds–theNextG™networkis uptofive times fasterthanother3GSMnetworks,withtypicaluser speeds averaging 550Kbpsto3Mbps;and • international roaming–theNextG™networkhas oneof theworld’sbest internationalroamingfootprints,allowing customers tomakevoicecallsinmorethan172countries andto access3G servicessuchasvideocallingand high speeddatain41countries. TelstraCountryWideExecutiveDirectorforVic/Tas,GrantWiltshire, TasmanianMinisterforHealth,LaraGiddingsandBreastScreen Tasmania’sJennyHuntleydemonstratethedigitalmammography imagerybeingsenttoHobartinreal-timefordiagnosis. Breast Screen Tasmania Virtual Care Casestudy LaunchedinApril2008,a newtelehealthinitiativepowered by Telstra’sNextG™networkisrevolutionisingthewayscreening mammogramsareprocessedforwomenlivinginrural and regionalTasmania.Significantadvancementsinhealthcare oftencomefromsimplesolutions,andthisonecouldnot be morestraightforward. “Thebeautyofthisapplicationisitssimplicity,”said TelstraCountryWide®ExecutiveDirectorforTasmania andVictoria,GrantWiltshire. “Acombinationofwirelessbroadbandanddigital mammographyequipmentmeansthatimages previouslycourieredinhardformcanbeemailed totheradiologyreadingfacilityinHobart.” LaraGiddings,MinisterforHealthandHumanServices, saidthattheinitiativehadreducedthetimetakenfor individualmammogramfilestobetransferredfromthe mobilescreeningunittotheHobartreadingfacilityfrom asmuchasfivedays,tojustfourminutes. “Untilnow,lackofmobilebroadbandcommunications hasmeanttime-consumingmanualprocessesfordelivering clientfilesandmammogramstoandfromtheMobile Unit,” Larasaid. “Filesandappointmentscheduleshavebeenpacked insuitcasesanddeliveredbycouriertotheMobileUnit whereverithasbeenlocatedaroundTasmania–aprocess takinguptofivedaysdependingonthelocation. “ReturningthefilesandscreeningmammogramstoHobart forreadingandarchivinghasbeensimilarlyinefficient. 23
  • 26. 24 Inaddition,Telstra hasdeliveredtheTelstraNextIP™network which,coupledwith theNextG™network,isoneofthelargest fullyintegratednation-wideIPnetworksintheworld.TheTelstra Next IP™networkis secure,morescaleable,morereliableand simplertoaccess thananyothernetworkinAustralia. OurADSLbroadband networkcovers 92percentofthe population and ourADSL2+servicesareenabledin more than 1,400 exchangesallowingcustomerstoaccess speeds up to 20Mbps. Changing thewayweliveandwork Thesenetworks arealreadyhavinga profoundsocialand economicimpact– changingthewaypeoplelivetheirlives, changing businesses,andincreasingAustralia’sabilityto competeglobally.Theyunderpinsignificantchanges from information thatis compartmentalised,fragmentedby providerandhardtoaccess,toinformationthatisintegrated, user-generatedandaccessibleinreal-time. Onapersonallevel,peopleareusingTelstra’sNextG™network tomakelive video calls,especiallyforspecialoccasionssuchas Christmas,birthdays,weddingsandchristenings,strengthening kinship tiesandallowing peoplewhocan’ttraveltostayin touchwiththoseclosetothem. Onabroaderlevel,our networksare usedtoimprove emergencyservices,addresscriticalresourceshortagesin health and education,and toimproveefficiency and productivityinindustry. Healthcare Withanageingpopulationandshortfallsofdoctorsand nursesin ruralandregionalareas,Australia’shealthsystem isunderpressure.Telecommunicationsnetworkscanunderpin aseriesofpositivechangesinthepatient,medicalprofessional andhealthadministrationexperience. Usingournetworks,itisnowpossibleforanambulance toarrivemorequicklybyusingourlocationtechnology to pinpointthesceneand thenearestambulance;apatient’s recordstobemadeavailableinstantaneouslybythespeed, reliabilityandrobustnessofourTelstraNextIP™network; andthebestprofessionalstobealertedimmediatelyfor diagnosisandrecommendationbyusingourwireless broadbandNext G™networktorecordandtransmitthe patient’sconditionviavideo. CommunitynursesareusingNextG™toremotelyaccess clientrecordsandupdatefiles,eliminatingtheneedtogo backtobase.Theyalsotakeandsendpicturesandvideos ofwoundstoreceivedressingadviceoverthephone,saving timeandresources,anddeliveringmoreimmediateand appropriatecare. Healthprofessionals,suchasdentists,speechtherapists, obstetricians,cardiologists,pathologists,paediatriciansand physiciansareusingtheNextG™ networktoviewelectronic patientrecords,makeprescriptions,accesspharmaceutical dataandconductmobilevideoconsultations. Thissavestraveltime,reducesthe delay for diagnosisand, most importantly,givespatients timely advice about improving their health and wellbeing inlocations where specialist attention previously may not have been available. Virtualreal-time criticalcare bridgesdistance and gives access to specialists assisting inthe stabilisation of the patient,reducing the need to transfer patients from regionalto big-city hospitals. Business A December 2007 study of 26businesses in15industries usingTelstra’s Next G™wireless broadband network found on average a9.3 per cent increase inproductivity after using Next G™for an average of seven and ahalf months. Productivity gains among users interviewed varied from 1.1 per cent to 27.3 per cent. 31 per cent of those surveyed were in ruralor remote areas.It’s in these areas where the highest productivity gainswere seen. The productivity driversincluded reduced traveland expenses; better useof time while offsite or travelling;accessto more information remotely;and reduced staff time supporting information requestsfromoffsite workers. Businesses across all sectors areusing our networks to save on traveltime and fuelexpensesto improve productivity. For example,cattle farmers are using Next G™to remotely monitor water levels,gates and fences,and remotely control water pumps,not only saving time and fuel,butreducing maintenance and improvinglivestock longevity. The study wasprepared for Telstraby Enotech Pty Ltd. 1.Society matters Our networksarealreadyhaving a profoundsocialandeconomicimpact
  • 27. “Ican now use alaptop to doa job on the top of Uluru or in Wadeye,and it’snot only generaladministrative work that we can nowdo”,Charlessaid. “We can also access all our records sothat wecan check the details weneed tosay yes toa loan or abusiness deal right there and then. “Nowthat staff membersdon’t have to travelto where they previously needed to for internet access,and weare able to accessour network inmany places across Australia,I believe that moving to the Next G™network has improved our efficiency by up to 30 per cent.” Education Accesstohigh-speedbroadbandissettotransformtheway welearn in a new eraofanywhere,anytimelearningondigital devices and in virtual classrooms.In theeraofhigh-speed broadband,learning willbeaccessibleacrossanydigitaldevice, whichmeans learning contentwillbe availableon PDAsor smartphoneswhenit’smostneededormostconvenient. With fast networkspeeds,studentshavefaster and easier access to contentin theirpreferred formats–whetherthat isvideo,simulatororgaming.Peoplewillbeabletoupload, co-createand commenton learningcontentaseasilyand quickly asthey canaccess it,and sharedlearningwillalso beenhanced. EducatorsarecurrentlyusingNext G™TelstraTurboCards in laptopsto stream live videoof environmentalprojectsto schools around thecountry,giving schoolstudentsa richer learning program.Importantly,studentscanbe connected with livelearning nomattertheirlocation. CharlesRoberts, IndigenousBusinessAustralia. Indigenous business organisation more efficient Casestudy Withmorethan200staffworkinginremotelocations aroundAustralia,IndigenousBusinessAustralia(IBA) reliesonTelstra’sNextG™networktokeepincontact. IBA isaFederalGovernmentorganisationbased inCanberrawhichnegotiateshomeandbusiness financingwithIndigenouscommunities. HavingswitchedtotheTelstraNextG™ network,IBAstaff cannowmakemobilephonecallsfromplacesasremote as Wadeye,westofDarwin,andlogontotheircentraldatabase. AccordingtoIBA’s InformationTechnologyandTelecoms Manager,CharlesRoberts,thenewarrangementshave made theorganisationbetween25and30percentmoreefficient. IBA representativesconductmuchoftheirworkin remoteIndigenouscommunitieswheretheymeetwith individualsandorganisationstosetupfundingforhome orbusinessloans. WorkingmainlyinQueensland,theNorthernTerritory and WesternAustralia,staffmemberstraditionallyhadto cope withslowandunreliablephoneandinternetaccessin bigger towns,andnointernetaccessatallinremoteareas. PriortoswitchingtotheNextG™network,manystaffmembers hadtorelyonsatellitephonestosetupappointmentsorcheck inwithcolleaguesatotherlocations. ComputeraccesstoIBA’s databasewaslimited,andstaff hadtotravelhundredsofkilometrestoandfromareas to getaccess. TheIBAnowhas115NextG™mobilehandsetsand71NextG™ TurboCardsprovidingstaffwithaccesstooffice serversand systems,email,andfastbroadbandwhileoutoftheoffice. 25
  • 28. 26 Influencing corporate responsibility outcomes Acompany as large asTelstrahastheopportunitytoinfluence the corporateresponsibilitybehavioursand outcomesofthose stakeholderswithwhomweengage. Suppliers In2007/08,Telstra purchasedapproximately$11billionin goodsandservices fromaround8,000suppliers.Thenumber of suppliers involvedandthesizeofspendputsTelstrain a strong position toinfluencetheenvironmentalandsocial standards ofoursuppliers.Werecognisethatoursuppliers havethepotentialtomakesignificant,positivecontributions tothecommunities inwhichtheyoperateand todirectly impactTelstra’s owncorporateresponsibilityperformance. Our supplychain Telstra hasmorethan800major(over$75kspend)active contracts inplacewithadiverserangeofsuppliersfora rangeofproductsandservices.Themaincategoriesofspend include:networkequipment,includingexchanges,pits, pipes andconstructionservices;customerequipment,such asmobile handsetsandtelephones;strategicmarketing including advertising,media,sponsorship,brand and marketing services;officeproducts;motorvehiclesand mechanical aids;IThardware andsoftware;directory paper;andlabour,includingagency,ITandconsultancy. Supplychaintransformation AspartofTelstra’s transformation,oursupplychainisbeing reformed.We’removingfromacostlyscenarioof toomany suppliers,systemsandstandardstoasinglewaytoprocure, asinglewaytoconnectwithsuppliers,andasinglecompany- wide view ofourvendoractivity.Thebenefitsinclude:cost effectiveness;greatervisibilityoftheend-to-endsupply chain;process improvementsthroughtheautomation, standardisationandtheintegrationofourprocessesresulting ingreaterefficiencyandsimplification.Greatervendorvisibility alsomeansTelstraisabletobettermonitorandenforce networkcomplianceand tocontinuetoensurea highstandard ofconductfromoursuppliers. Telstrahassigneda seven-yearcontractwithIBM toprovide a numberofsupplychainservicesincludingcontractmanagement andreportingsystems,andtooperateanintegratedsupply chainforinternalspendon productsandservices.IBM is committedtoupholdinghighstandardsofethical,social andenvironmentalconductinitssupplychainandhas implementeda globalSupplyChain SocialResponsibility programworldwideacrosstheirnetworkofsuppliers. IBMwillcontinuetoworkwithTelstratoidentifypossible processimprovementsinthesupplychain. Supplierevaluationprocess Telstra’sBusinessPrinciplesprovidea frameworktoensurethat weoperateethicallyandwithintegrityinpurchasinggoods andservicesandconductingbusinesswithourvendors.Social andenvironmentalconsiderationsinoursupplierselection and evaluationprocessesareguidedbyourPurchasingEthics GuidelinesandEnvironmentalPurchasingGuidelines. PurchasingEthicsGuidelinesaimtoensurethatinundertaking ourpurchasingactivitieswe assess therelevantimpactswe makeonsocietyandthatwetakeintoaccountourhealth and safetyresponsibilities,andtheeconomic,environmentaland communityimpacts. TheEnvironmentalPurchasingGuidelinesaimtoensure considerationofenvironmentalissuesinthepurchasing ofallproductsandservicesbyTelstra. Thefundamentalelementsofthesepolicies,alongwithour Health,Safety Environment(HSE)framework,havebeen incorporatedintothecompany’s StrategicSourcingand VendorManagementprocesses. Strategicsourcing Our supplier selection processincludes arisk assessment designed to identify environmentaland occupationalhealth and safety risks in particular and broader social risks more generally.Dependingon the risk evaluation we may require that our suppliershave: • formalmanagement systemsand plansthat manage any HSEaspects and impacts associated with their business and any productsor servicessupplied; • ahistory of HSEcompliance and good performance; • evidence of how they manage the HSEperformance of their subcontractors;and • socially responsible contractual obligations specific to the productsor servicesthey are supplying. As a result of our crossbusiness risk assessment-based sourcing process,high risk products,servicesand vendorsare identified (eg,clothing manufacturers,labour services) and may be subject to greater scrutiny including visiting manufacturing premisesand seekingevidence of company policies. For example,before procuring work services from anindustry partner,weinspect the vendor’s premises and perform a rigorous risk assessment against key Telstra policies and employment conditions including:work environment;leave and breaks;HSE;equal employment opportunity;bullying and whistle blowing;privacy;unions;employee assistance programs;reward and recognition,and remuneration. Vendor management Vendor managers haveongoing relationships with key suppliers.They monitor and addressdelivery,quality, and HSEissues.The contract witha vendor requires compliance with Telstra’s HSEstandards,and apart from the information captured during the sourcing process,contracts with specific high risk suppliers contain conditionscoveringongoingreportingobligations. 1.Society matters
  • 29. 27 Propertyvendorsarealsocontractedtoidentifyenvironmental improvementopportunitiesaswellastosupportand collect datatoassistuswithmeetingtheobjectivesoftheGreenhouse ChallengeandNationalPackagingCovenant. Awards Telstrahelpstobuild socialinclusionand encourages environmental stewardshipbysupportingand recognising thoseindividuals and organisationsthataremaking a difference. WehavesponsoredtheNationalAboriginal TorresStrait IslanderArtAwardsince 1992,recognisingtheachievements of Indigenous artists.TheAward isanimportantshowcasefor both established and emergingartistsand hascometobe regardedas thepremiernationaleventintheAustralian Indigenousartcalendar. The 2007winnerwas DennisNona,whoseartwork,Ubirikubiri, wonthecoveted$40,000prize.Widelyacknowledgedasone of themost importantTorresStraitIslanderartistsofhis generation,Nona’s workwaschosenfromover 300entries submittedintheaward. Telstra has beenamajorsponsoroftheBanksiaEnvironmental Awardssince1993andin2007/08wecelebrated14yearsof partnership.TheAwardsacknowledgeexcellence,dedication andleadershipin areasthatcontributetotheenvironmentand asustainable future.Throughtheawards programtheBanksia Environmental Foundationaimstoraisetheprofileofthe currentenvironmentalissues facingAustraliaand recognise thosewhose initiatives areanencouragementand an example forotherstofollow.In2007,Telstrasponsoredtheinaugural environmentalPeople’sChoiceAward,whichwaswonby TheFalls Festival– TheGreenestFestivalinAustralia. TheTelstraBusinessWomen’sAwardshavebecomean integralpartoftheAustralianbusinesscalendar.Theawards area showcaseofsuccessfulwomenandprovidea powerful platformtohelpredresstheongoingunder-representationof womenin managementranks.Telstrahas proudlysponsored theseawardssince1995,celebratingtheachievementsof a diversegroupoftopAustralianbusinesswomenandpromoting thevaluablecontributionwomenmaketothebusinesssector andthewidercommunity. The2007TelstraAustralianBusinessWomanoftheYearwas LeannePreston.Herinnovativecompany,WildChild,isnow aninternationallysuccessfulbusiness. In2008TelstrasponsoredtheTelstraEnvironmentAwards, throughwhichNetworkTenrecognisesandrewardsthe individualsandcommunitiesthatareworkingat alocallevel toprotecttheenvironment,reducegreenhouseemissionsand ensureasustainablefuture.Theawardsareopentoschools, individuals,communitygroupsandsmallbusinessesacross Australia.Therearemonthlyprizesof$2,000ineachstate and an annualprizeof$5,000 forthemostsignificantcommunity environmentprojectineachstate. Planned actions for 2008/09 • Improvetherelevance,transparencyandaccessibility of Telstra’scorporateresponsibilityinformationon Telstra’s website. • ConductareviewofTelstra’shumanrightsposition and practicestoassessperformanceagainst international standards. • Introduce feature sectionson nowwearetalkingto provide aplatformfor publicdiscussion and debate about the environment and the NationalBroadband Network. • Reduce paper consumption by continuingto transform our supply chain operations to effective,electronic business,including online drafting and execution of contract documentation. 1.Society matters HollyKramer,GMDTelstraProductManagementandTelstraBusinessWomen’s Awards ambassador,MargotSpalding,2006TelstraAustralianBusinessWoman oftheYear,LeannePreston,winner2007TelstraAustralianBusinessWomanof theYearAwardwithSolTrujillo,TelstraCEO.
  • 30. 2Communities matter Telstra is actively involved in the communities in which we operate. Geoff Booth,Group Managing Director, Telstra Country Wide AsAustralia’sleadingtelecommunicationsproviderandone of itslargestcompanies,weknowthepositiveimpactourbusiness canhaveoncommunitylifeandwellbeing.Withcustomers, employeesandoperationsrightacrossAustralia,Telstratakes anactiveinterestintheissuesfacingallAustralians,fromthe capitalcitiestotheremotestpartsofourcountry. AstheheadofTelstraCountryWide®,andaDirectorofthe TelstraFoundation,Ihaveakeenanddirectinterestinour communityactivities.Telstracontinuallystrivestoimprovethe deliveryoftelecommunicationstohelpbringAustralianscloser togetherbybreakingdownthetyrannyofdistancecreated by oursmallpopulationandlargelandmass.Inaddition,weare alwayslookingforwaystomakeapositivecontributionto Australia’ssocialandcommunitywellbeing,whetherit’s throughourstrategicphilanthropy,communitybusiness partnerships,localsponsorships,disasterrelieforcommunity engagementinproductandservicedevelopment. Allbusinesses,especiallylargeenterprisessuchasTelstra, haveanimportantroletoplayinstrengtheningcivilsociety andsupportingcivicleadership.We dothisbycontributing ourresources–people,money,technology,products,services andinformation–tosupportthecommunitiesin whichwe workandlive,theircivicleaders,andsocietyasawhole. Wehavethegreatestimpactbydoingthisin areaswhere Telstrahastheexpertiseandresourcestomakeadifference. WhenAustraliaishitbydevastatingnaturaldisasters,Telstra’s communicationstechniciansareamongthefirstonthescene toassistemergencyandessentialserviceorganisationswith theircontingencycommunicationneedsandtorestore telecommunicationsservicestoourcustomers.Ourphilanthropic and community business partnership endeavours use information and communication technologiesto enhance socialinclusion and improve the health and education outcomes for individuals,families and communities across Australia.We share the knowledge and expertise of our employees tohelp build the skills and capacity of local enterprisesand communities. We are also committed to addressing the needs of those most disadvantaged in society.The programsof the Telstra Foundation’sCommunity Development Fund aimto assist children and young people who are socially or geographically isolated,and include a strong focuson improving the health and education outcomesof Australia’sIndigenouschildren. In 2008,Telstra participated inthe London Benchmarking Group’s process for the second year.London Benchmarking Group Australia/New Zealand is abusiness membership organisation that providesaframework for membersto measureandbenchmarktheircorporatecommunitycontribution. As an indication of the level of our commitment and the breadth of our activities,Telstra’s 2007/08 contribution was valued at $29.2 million. Telstra promotes its community support programs to its employees as ithelps demonstrate that wetake our social responsibility seriously,and helps engender pride and loyalty in the organisation.To be involved inand understand the communitiesin which we operate isgood for civiclife and the future prosperity of Australia,which isultimately good for Telstra.
  • 31. Disaster relief Each yearAustralia ishitbydevastatingbushfires,floods, cyclonesandothernaturaldisasters,destroyingthehomesand impacting thelivelihoods ofmanyAustralians.Whendisaster strikes,Telstra’s firstpriorityistoassisttheemergencyand essentialserviceorganisationswiththeirtelecommunication requirements.Typically,ourcommunicationstechniciansare among thefirsttoenterdisasteraffectedareastorestore telecommunicationsservicestoourcustomersasquickly aspossible.Telstra alsooffersreliefpackagestoaffected customers.VolunteerandFirstResponseLeaveisavailableto our employees,whichenablesthemtovolunteertoprovide criticalservices fortheprotectionoflifeandproperty. Telstra is proud ofitslong historyofrespondingtocommunities affectedbynatural disastersinAustralia,andtonaturaland civil disasters thatoccuroverseas.Telstra’sDisasterReliefPolicy ensures thetimely andeffectivedeliveryof supporttoaffected customers andcommunities. Overthe2007/08 yearTelstraprovidedrelieftocustomersand communities affectedbythefollowingnaturaldisasters: • bush firesin WillungainSouthAustralia,and inParkerville andStonevilleinWesternAustralia; • floodsinthecentralandnorthcoastofNewSouthWales; • floodsinEmerald,Rockhampton,Mackay,Charleville, Gold Coast,Beenleigh,Jimboomba,Beaudesert, Rathdowney,Boonah,Clifton,Allora,Warwickand KillarneyinQueensland; • cycloneNargisinMyanmar(Burma);and • theearthquakeintheSichuanProvinceinChina. Lending a Helping Hand Casestudy Withtheupgradeofnab’sdesktopcomputerfleet, TelstraEnterpriseandGovernment’snabAccount Teaminpartnershipwithnabusedthedecommissioned technologytoaddressanimportantneed. Inamovethathasbothenvironmentalandsocial benefits,thepartnershipdevelopedtheHelpingHand projecttomanagethedisposalofthetechnologyto supportdisadvantagedcommunities. Sincetheproject’sinceptionin2007,over3,400desktops andalmost300 laptopshavebeendonated,aswellas otherequipmentsuchasprinters,routersandswitches. Donationshavegonetolocalorganisationssuch as Yooralla,theReachFoundationandtheOpeningthe DoorsFoundation.ThroughtheReachFoundationthe projectundertakesinternationaldonations,withdevices goingtoorphanagesandschoolsinMali,Vietnam, EastTimor,Cambodia,Fiji,PapuaNewGuineaandIndia. Oneoftheproject’slargestdonationsistotheWired Community@CollingwoodprojectinVictoria,runin conjunctionwithInfoxchangeAustralia.Thisprojectwill deliverbroadbandandcomputeraccesstoresidentsof the Collingwoodcommissionflatsandcloseto1,000 Helping Handdesktoppersonalcomputershavebeendonated. TheHelpingHandprojectaimstodonatearound 4,000 desktopsand250laptopstocommunitiesand organisationsin2008/09.Asapartoftheircontribution toWiredCommunity@CollingwoodTelstravolunteers, inconjunctionwithnab,willtraintheresidentssothat theyhavetheskillsandknowledgeneededtomaximise theuseoftheircomputer. 29