alcatel-lucent 2010 corporate responsibility report

8/6/2019 Alcatel-Lucent 2010 Corporate Responsibility Report

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corporate responsibility

2010

AT THE SPEED OF IDEASTM



About this report 03

1. MessAge froM the Ceo 04

2. CorporAte responsibility 05

CoMMitMents

2.1 urCommitmentto 05

Corporateesponsibility

2.2 Corporateesponsibility(C) 06

Management

2.3 CChallengesandCommitments 07

3. AlCAtel-luCent overview 10

resentationofAlcatel-Lucent 10

BellLabs,Alcatel-Lucent’s 11

Innovationngine

4. governAnCe 12

4.1 CorporateGovernance 13

4.2 BoardofDirectors

GovernanceSystem 13

4.2.1 peratingules 13

4.2.2 Membershipandperation 13

oftheBoard4.2.3 SelectionCriteriaand 13

Independence

4.2.4 Directors’Charterandthics 14

4.2.5 ConictsofInterest 14

4.2.6 BoardDuties 14

4.3 Boardffectiveness 15

andransparency4.4 roxyMaterialsDeliveryfor 15

2011Shareholders'Meeting

4.5 SeniorManagementemuneration 16

4.5.1 xecutiveDirectors 16

andSeniorManagement4.5.2 CompensationBreakdown 16

forthexecutiveDirectors4.5.3 Directors’fees 16

4.6 isk&CrisisManagement 17

5. ethiCs & CoMpliAnCe 19

5.1 thics&ComplianceApproach 20

5.2 Anti-corruptionrogram 215.3 Compliance 22

5.4 rivacyrotection 23

5.5 ComplianceGovernanceStructure 24

5.6 ComplianceiskAssessment, 25

nhancementandMitigation

5.7 ducationandraining 26

5.7.1Anti-Corruptionraining 26

5.7.2InternalCommunications 26

5.8 InternationalInitiatives 27

5.8.1WorldconomicForum 27

5.8.2GlobalCompact 27

5.8.3IndustryAssociations 27

6. stAkeholders 28

6.1 esponsibilitytoStakeholders 29

6.2 UnitedNationsGlobalCompact 30

6.3 WorldconomicForum 31

6.4 GlobaleSustainability 32

InitiativeGeSI

6.5 Customerelationship 33

6.6 InnovationManagement 34

6.7 nvironmentalInnovation 35

6.8 SocialInnovation 36

6.9 DigitalInclusion 37

6.10ublicAffairs 38

6.11mployeeDialogue 39

6.12Investorelations 40

7.environMent 417.1 nvironmentalSustainability 42

Strategy

7.1.1urApproachtowards 42

nvironmentalSustainability

7.1.2GovernanceforSustainability 43

7.1.3Managementof 44

nvironment,Health&Safety

PART 1

7.2 Developingco-sustainableNetworks45

7.2.1nd-to-endApproach 45

7.2.2educingtheImpact 46

ofourroducts&Solutionsonthenvironment

PART 2

7.3 nablingaLow-carbonconomy 51

7.3.1 ICasannabler 51

7.3.2 SmartGrids 52

7.3.3 Smartransportation 54

andLogistics

7.3.4 Dematerialization 54

PART 3

7.4 educingourCarbonFootprint 55

7.4.1Carbonmissions 55

racking&eporting7.4.2Bestractices:LocalInitiatives57

7.4.3ncouragingour 59

mployeestobeco-aware

PART 4

7.5 Innovation&ngagement 60

7.5.1 Innovationfor 60

thenvironment

7.5.2 ngagingforSuccess 61

7.5.3 Awardsandecognition 65

8. our people 66

8.1 Valuingoureople 67

8.2 Alcatel-LucentValues 68

8.2.1 CorporateValues 688.2.2 GlobalHumanightsolicy 68

8.3 mployeeBreakdown 69

8.4 mployeeDialogue 69

8.4.1 CollectiveBargaining 69

8.4.2 InternalCommunication 70

andDialogue

8.5 mployeeHealth&Safety 70

8.6 Diversity&qualpportunity 71

8.6.1 Multi-culturalCompany 71

8.6.2 Non-discrimination, 72

qualpportunity8.6.3 AccessibleWorkplace 73

8.6.4 Seniors 73

8.7 HumanCapitalDevelopment 74

8.7.1 GlobalFramework 748.7.2 e-Learning 74

8.8. alentDevelopment 75

8.8.1 Mobility 75

8.8.2 emunerations 75

8.8.3 ersonalDevelopment 75

8.8.4Mentoring 75

8.9. alentAttractionandetention 76

8.9.1 Workforcelanning 76

8.9.2 erformanceManagement 76

8.9.3 mployeeecognition 76

8.10Work/lifeBalance 77

8.11Managementofeorganization 77

&estructuring

9. philAnthropy 78

9.1 GivingmoreAccesstoducation 79

9.2 Governanceandrganization 79

9.3 GrassootsrogramSelection 80

9.4 mployeeVolunteering 82

9.5 Disasterelief 84

9.6 CorporateCharitableContributions 84

10. supply ChAin 85

10.1ComprehensiveApproachto 86

esponsibleSupplyChain

10.2equirementsImposedon 87

SuppliersandSub-Contractors

10.2.1ICCCodeofConduct 87

10.2.2InternationalStandards 87

10.2.3argetedurchasingrogram 87

10.2.4SupplyChain&nvironment 88

10.2.5esponsibleSupplyChain 88

10.3AssessingCerformance 89

10.3.1SupplieriskAssessments 89

10.3.2coVadisCatings 89

10.3.3CAssessments 9010.3.4CAudits 91

10.3.5Non-responsefromSuppliers 91

10.4SupplierImprovementlans 92

10.4.1Crainingforthe 92

Alcatel-Lucenturchasing

Community10.4.2CrainingforSuppliers 92

10.4.3Supplierartnerships 93

10.5CollaborativeInitiatives 94

10.5.1SMelationships 94

10.5.2SupplyChainSustainability 94

11.CorporAte 95

responsibility indiCAtorsSocialIndicators 95

nvironmentalIndicators 96

12. gri index 98

GIStatement 104

13. independent 105

verifiCAtion stAteMent

ga 107

Cac

Content suMMAry

ALCATEL-LUCENT • 2010CASNSIBILIY



3 AUT This REPRT

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t aa Ca r (Cr) c mac a 2010,andincludesadditionalinformationfromearly2011.Unlessotherwisestated,performancedataconcernsallofourglobaloperations.hereportrepresentsaconsolidationofourCactivitiesworldwide,withaparticularfocusonkey

achievementsandfutureobjectives.Wehaveaimedtobefactualandtothepoint,usingconcreteexamplestoillustratesomeofourachievements.

t cm a a –customers,investors,employees,analysts,media,suppliers,governmentandnongovernmentalorganizationsandcitizens.Itisanimportantelementinouroverallpublicreportingpolicy.Alcatel-LucenthasbeenpublishingannualCorporateSocialesponsibilityreportssince2002.Wehavepreparedthisaccordingtotheprinciplesofthe u naga Cmac(seepage30)andthesustainabilityreporting

guidelinesofthega r ia(GI)(seepages98to104).FollowingGIreview,ithasreceivedaGIApplicationLevelCheckStatementB+.

hisreporthasalsobeensubjecttoanindependentreviewprocessbye & y.hefullscopeoftheirreviewandconclusionscanbefoundintheirIndependentVericationStatementonpage105.f ma a, cm .Forthethirdconsecutiveyear,itisavailableonlyon-line,alongwithregularlyupdatedinformationonAlcatel-Lucent’sCactivitiesandperformance,at.aca-c.cm/c.Generalinformation

aboutAlcatel-Lucent’sstrategy,businessandnancialperformanceisavailableintheAlcatel-Lucentannualreport,theDocumentdeéférence2010, 2010AnnualeportonForm20-FandAdditionalInformation2010,allofwhichcanbeaccessedat.aca-c.cm/

Wewelcomeyourfeedback,[email protected]

// WEBSITEhismeansthatyoucanndmoredetailedinformationoninternet.

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hisindicatesthatavideoisavailable.

// CHECKMARKhisshowsthatthehighlightedindicatororqualitativeassertionhasbeenreviewedbyrnst & Youngaspartoftheindependentassuranceprocessfor2010.

ALCATEL-LUCENT 2010CRPRATE REsPNsiiLiTy REPRT

ContentSummary 02About t Report 03

1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41

8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■



4

MessAgeBEVERwAAE,ALCAELLCECEO

1. MEssAgE fRM ThE CE

Corporate esponsibility is a businessimperative for Alcatel-Lucent, just likemeetingtheexpectationsofourcustomers

andourinvestors.Forthatreason,eachyearweissueareportdisclosingourCorporateesponsibilityresults,justasweissueoneonournancialresults.hefactis,formoreandmoreofourcustomersbeingagood,activecorporatecitizenisoneofthecriteriatheyusewhenmakingabuyingdecision,andthatalonemakesitanissueforinvestorsaswell.

hatsensitivity makes sense.A rationalbusinesspersonwantstodobusinessonlywith thosecompanies thatoperatewithintegrityandstrivetodotherightthingatall times.heywanttodo businesswith

companies whoseproductsand serviceshelpmaketheworldbetterforallpeople,areable torespond effectivelytoglobalchallenges with bold new thinking andachievemeaningfulbusinessresults.AsourCorporateesponsibilityreport for2010shows,wearemeetingthoseexpectations,aswecomeintothenalyearofourthree yeartransformationplan.

he world faces many tough challenges,andthreewe canhavethe mostimpact

onare climate change,inclusion andthetransformationtodigitaleconomies.I amparticularlyproudoftheworkwearedoing

intheareaofprotectingourplanet.Wearewellonourwaytomeetingour2020goalofhalvingourgreenhousegasemissions.Butmoreimportantaretherevolutionaryt e c hn o lo g ie s a n d b r oa d s t a ke hol de rapproacheswearedevelopingtobuildmoresustainablenetworksforourcustomersandhowwearehelpingthemdevelopstrategiestocuttheirowncarbonemissions.

Wealsoareensuringmorepeoplehaveaccesstothedigitaleconomy–thatistheessenceofour business.hroughourinnovativeproductsandservices,andapproach,we

are enabling accessto theworld’sbestcommunicationsandinformationtechnologyinwaysthatareaffordable,sustainableandultimatelyinclusive.

Butasthisreportshows,itisaboutmorethantechnologydevelopment.Digitaleconomiesalreadybenetthoseofusinthedevelopedworld,butweneedtotakestepstoensuretheinclusionof thosein thedevelopingworldaswell.heAlcatel-LucentFoundationfundsprogramsthathelpyoungpeoplein

disadvantaged communities acquire thelifeskillstheyneedtosecuregoodcareers

andbecomecontributingmembersoftheircommunities.uremployeesdonatetheirtimeto help othersin theircommunitiesacross40 countries.

Wealsoareinvestinginourownemployeesandleveragingtheadvantagesourdiverseemployeepopulationgivesus.Wearegivingthemtoolstohelpthemdeveloptheirtalentsand broaden theircareer opportunitiesregardlessofwheretheyarelocatedaroundtheglobe.

Lastly,compliancewasanissueforusaswe

dealtwithactivitiesthattookplaceseveralyearsago.Asyouwillseeinthisreport,wehavetakenstepstomakesureitisn’tanymore,withtraining,rigorousauditsandanabsolutezerotolerancepolicytowardanyviolationsofourpolicies.Weonlydobusinesswithpartners,suppliersandcontractorswhoshareandsupportourvalues.

Wearepartofaglobalcommunity.Weknowweneedtobringvaluetothosecommunitiesinwhichweliveandworkinnewways.Wedo that through the innovativeproducts,solutionsandserviceswedeliver,byworking

withotherresponsiblepartnersandbymakingtheprinciplesofaresponsiblecompanypartofourcultureandourday-to-daybehavior.Asyoureadthroughthisreport,Ithinkyouwillseewearedoingjustthat.

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ContentSummary 02 AboutthisReport 03

1. Meae rom te CE 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41

8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■



21000Unt ln dole moloraetotat omn mu,ectam accuam cut ad du,mpotrum dtatur

Aca-lc ca a a mathatplaysacriticalroleintransformingourcompany

intoastrong,innovativeandprotablemarketleaderintoday’sglobaleconomy.Wewillwininthemarketplace,byhelpingourcustomersandcommunitiessolvesomeoftheworld’smostpressingenvironmental, economicand socialchallenges. peratingin aresponsiblemannerisaninvestmentinourlong-termsuccess.

ur commtment:

1. Continue to lead the industry in developing and deployingglobally recognized innovation in eco-sustainable communicationstechnologiesthatenableourcustomerstocompeteandwininaworldfacingincreasingenvironmentalchallengesandresourceconstraints.Weseek,withtheGreenouch™Consortiuminitiated

byBellLabs,tomakecommunicationsnetworks1000timesmoreenergyefcienttodrasticallyreduceanynegativeimpactourindustryhasontheenvironment.

2. Realize the potential of a connected world and tackle ruralinclusion by developing and deploying affordable communicationsolutions t hat w il l he lp i n cr e as e a c ce s s t o e duc a ti o n,communicationandsocio-economicdevelopmenttotheworld’scitizensinasustainablemanner.hiswillchangethewaybillionsofpeopleliveandwork,helpimprovethequalityoflifearoundtheglobeandopentheworld’stalenttonewopportunities.

3. Inspire our own talent and human capital to be best in classwhile reecting the diversity of the markets we serve andthe

communitiesinwhichweoperate.Wewillensureouremployeesworkinastimulatingenvironmentofcontinuousknowledgebuildingwhilefosteringopendialoguewithinnovativetoolstosharelearning.

4. Take a zero-tolerance stance on compliance violations andreinforce full integrityineverybusinessactionfromevery

employee, aswell astreatingeach otherwith respect andempathy.

5. Collaborate and do business only with partners, includingsuppliers, contractors and sub-contractors, who share andsupport our values. Wecommittoregularlyandthoroughlyassessing theirC performance andpartneringto ensureimprovement.

We embed Corporate Reponblt (CR) n everpart o our bune b:

•Dramaticallyreducinggreenhousegasemissions–ourown,our

industry’sandthoseofothersectors;•Makingenvironmental,economicandsocialresponsibilityintegral

tothewayweoperate;

•Fullyengagingascitizensofthecommunitieswherewedobusiness.

urcommitmentdemands radicallydifferent thinkingandcreativityfromallofus.ools,resourcesandexpertsareavailablethroughoutAlcatel-Lucenttomeetthischallengeandshareexpertise.oknowmoreaboutourCobjectives,visitouronlinedashboard.

Read more

2.1 our CoMMitMent to CorporAte responsibility

2. CRPRATE REsPNsiiLiTy CMMiTMENTs5



1.MessagefromtheCEO 042. Corporate Reponblt Commtment 05

3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■

2.1 ur Commtment to Corporate 05Reponblt

2.2CorporateResponsibility(CR) 06Management

2.3CRChallengesandCommitments 07 ■■■■■■■■■■■■■■■■



66

Corporate Reponblt Councl

heCorporateesponsibilityCouncilisthehighest-levelCmanagementbodywithinAlcatel-Lucent.ChairedbyCBenVerwaayen,thecouncilcountseightmembers,includingseniorexecutives,membersoftheManagementCommitteeandCDepartmentandtwooutsideexperts.heCCouncilmeetsfourtimesayear.ItsetsCprioritiesandgoals,tracksprogress,advisesonkeyC strategyissues,providesperspectiveonpotentialrisksandopportunitiesandmakesrecommendationsto the Management Committee on emerging and criticalsustainabilityissues.

Corporate Reponblt peraton

heCorporateesponsibilityDepartmentdenesanddrivesimplementationofthecompany’sCstrategyandinitiativesworldwide.It isresponsibleforconsolidatingallthe social,economicandenvironmentalindicatorsusedtomonitorprogress.

CoperationsthroughouttheGrouparehandledbythemembersoftheCorporateesponsibilityNetwork.Networkmemberscomefroma dozendifferent entities,includingthe Alcatel-LucentFoundation,nvironment,HealthandSafety,BellLabs,ublicAffairs,Humanesources,fceofBusinessConduct,CorporateCommunications,iskandCrisisManagement,Governanceandurchasing.

Cnetworkmembersareresponsiblefor:

•Helpingdene,manage,implementandbeheldaccountableforCactionplansintheirrespectivedomainsofexpertise;

•nsuringCmessagesandactionsareinlinewiththeGroup’soverallCstrategy,currentglobalchallengesandcustomerbusinessimperatives;

•Servingas ambassadors ofAlcatel-Lucent’s Cstrategyinternallyandexternally.

World Economc forum

urstrategicrelationshipwiththe World conomicForum(WF)wasintegratedintotheCorporateesponsibilityfunctioninearly2011.ocontinuebuildingonourstrongexecutivecorporateengagementwiththeWF,inearly2011wedesignatedspecicAlcatel-LucentmembersfromdiversefunctionstoactasWFcorrespondents.achwillbeheldaccountableforourrepresentationandrelationshipswithinvariousWFworkgroups,communitiesandregionalevents.heinitialmembersofthisWFnetworkarefromallthreeworldregionsandaswellasBellLabs,ublicAffairs,Marketing,StrategyandCommunication.heywillworkcloselywithourexecutiveleadersandCorporateesponsibilitygrouptomaintainourproactiveengagementon“improvingthestateoftheworld”.

2011 sutanablt yearbook

Alcatel-LucentwasselectedforinclusioninheSustainabilityYearbook2011bytheSAM(SustainableAssetManagement)sustainabilityinvestmentgroup.heyearbookincludesthetop-scoring15%oftheworld’slargest2,500companiesineachof58sectors. Aca-lc a am “sAM sc M,”whichisawardedtothecompanythatachieved amm aa mac cma a. t g a c sAMs Ca,adistinctionawardedtoSAMSectorLeaderswithatotalscoreof70-to-75%.

heGroup’sCcommitment,policiesandachievementswerefurtherrecognizedatthebeginningof2011asAlcatel-Lucentcontinuestobeamembercompanyoftheftse4g x.heindexlistscompaniesthatmeetgloballyrecognizedcorporateresponsibilitystandards.

2.2 CorporAte responsibility Cr MAnAgeMent

2. CRPRATE REsPNsiiLiTy CMMiTMENTs ALCATEL-LUCENT 2010CRPRATE REsPNsiiLiTy REPRT




Glossary 107■■■■■■■■■■■■■■■■

2.1OurCommitmenttoCorporate 05Responsibility

2.2 Corporate Reponblt (CR) 06Manaement

2.3CRChallengesandCommitments 07 ■■■■■■■■■■■■■■■■



7

2.3 Cr ChAllenges And CoMMitMents

2. CRPRATE REsPNsiiLiTy CMMiTMENTs7

ChALLENgEs 2010 CMMiTMENTsTiME

fRAME 2010 sTATUs

ethiCs And

CoMpliAnCe

seepage19

Dataprivacyplantobeexecuted 2010 √heAlcatel-LucentData rivacylan,developedin 2009,was substantiallyimplementedoverthecourseof2010.

AllemployeescompletethethicsandIntegrityrainingCourse. 2010 √

Attheendof2010,84%ofemployeeshadcompletedthics&Integrityverview

training.AtthedateofpublicationoftheCreport,thecompanywasat93%.

reduCe the

iMpACt of our

produCts on the

environMent

seepage45

Improvethe functionalenergyefciency ofkey products*byat least 20%by 2010compared with 2008. *Newor recently

developedproductsonanupwardcurveoftheirlifecycle.

2010 √Alcatel-Lucentmet thisobjectiveforits keyproducts– withmanyproductssignicantlyexceedingthistargetvalue.

Includecarbonfootprintinformationin theeco-declarationfornewproductfamilies,startingin2010.

2010 √

Alcatel-Lucentmetthisobjectiveforitsnewproductfamiliesintroducedstartingin2010. heGroup developed aunique andefcientprocessfor providingthisinformationinproducteco-declarations,andisleadinganindustryeffort(throughiNMIandWI/WBCSD)tostandardizethemethodology.

xpand product remanufacturing operations globally by anadditional 20% compared with2009 as an eco-alternative todisposal/recycling.

2010 √Alcatel-Lucentexceededthisobjective.Asoftheendof2010,weincreasedbyanadditional21%thenumberofproductfamiliesbeingremanufacturedinouroperations.

reduCe

our CArbon

footprint

seepage55

eacha10%reductioninC2emissionsfromfacilitiescompared

withthe2007C-reportedbaselinebytheendof2010.2010 √

xceeded-Alcatel-Lucentexceededthisobjectivebyachievinga15%reductionintotalC2emissionsoneyearearlierthanprojected.

educeourabsolutecarbonfootprint(C2equivalent)by50%,of

2008baseline,by2020.2020

ntarget-asoftheendof2010,Alcatel-Lucentreducedthecarbonfootprintfromitsfacilitiesby 15%,of 2007baseline,and reduced theentire corporatecarbonfootprintfromalloperations(scope1and2)by8%,of2008baseline.

our people

seepage66

Continuetrackingtransformationprogresswithinternalpulsechecks. 2010 √Intotal,46,761employeesrepresentingallbusiness-lines,regions,andcentralfunctionsparticipatedin2010.

Continue simplifying and standardizing H processes bydeploying MyHInformationSystem worldwide. Systems andtoolssupportbusinessneedsandcontributetotheachievementoforganizationalefciencyandeffectiveness.

2011 Continuing-Deploymentin18newcountriesduring2010,foratotalof35.

80%ofourhigh-potentialschangingpositionwithin3years. 2011

Continuing-WhilethecompanyhasengagedadeepandglobaleffortoptimizingAlcatel-Lucentleadershipproleandleadershippipelinemanagement.Byend2010,62.84%ofhighpotentialshavechangedpositionwithinthreeyears.

riple the number of employees that complete professionalcertication, with impact on overall skill development andemployability.

2011

ntarget- In2010 Alcatel-Lucent’seople@ALUglobaltrainingandcerticationframework has been successfullynalized and launched targeting mostcriticalbusinessesandcompetencesinthegroup.Globalextensionplannedfor2011.

philAnthropy

AlCAtelluCent

foundAtion

seepage78

ImplementawaytomeasuretheeffectivenessofthefundstheFoundationinvestsineachprogramitsupportsaroundtheworld.

2010 √Achieved-NewMonitoringandvaluatingsystemdesignedandinplaceforanyfutureprograms.

Further foster the spiritof employee volunteerismacrossthecompany.

ngoing

Continuing-UnderFoundationaegis,some7,500employeesdonated46,000 hoursoftheirtimetocontributetomorethan200projectsin40countries.

Implementan efcienttooltotrackand measurevolunteerism

acrossthecompany.

2010 √Achieved-nablonsysteminplaceandwasoperationalforthe2010International

DaysofCaringcampaignaswellasongoingvolunteeractivitiesin2010.

supply ChAin

seepage85

nsurethattheCpracticesofallofourkey*andpreferred**suppliersareassessedformeetingexpectations.*KeysuppliersaredenedasmajorandstrategicsuppliersforAlcatel-Lucent.

**referredsuppliers correspond to the preferredsources fora given

purchasingfamilythatshouldbeconsideredrstforallnewdevelopments.

2010 √Alcatel-Lucentisabouttoachieveitsgoal,setin2008,ofassessingall“key”and“preferred”suppliersbytheendof2010.Inearly2011,97%ofkeyandpreferredsuppliershadbeenratedonC.

Buildontheenvironmentalpilotresultstobroadentheprogramtootherinternalusesectorsandinstallationprojectsprocurement.

2010 √heprogramhasbeenbroadenedtootherCtopics(social,healthandsafety,ethics)andobjectivesfor2011havebeendened.

stablish a systematic improvement program with suppliersassessedbelowsatisfactoryensuringthatbythe endof 2012,80%of theactivesuppliersassessedon Caresatisfactoryoraboveandactionplansareinplacefortheremaining20%.

2012 Continuing-currentgureis53%.

√:targetreached

:inprogress





Glossary 107■■■■■■■■■■■■■■■■



2.3 CR Callene and Commtment 07 ■■■■■■■■■■■■■■■■



88

CHALLENGES COMMITMENTS FOR THE COMING YEARSTIME

FRAME

ETHICS AND COMPLIANCE

see page 19

[NEW] Public reporting of statistics related to breaches of the Group’s Code of conduct. 2011

[NEW] Privacy and Data Protection program audited externally by PwC in 2009. The Group will be undertaking audits in 2011 to follow upon these recommendations.

2011

[NEW] Include ethical behavior considerations in the 2011 performance management process. 2011

[NEW] Target 100% part ic ipat ion in the employee review and acknowledgement of the Alcatel-Lucent Code of Conduct. 2011

[NEW] Target 100% of People Managers for ethical leadership training. 2011

REDUCE THE IMPACT

OF OUR PRODUCTS ON

THE ENVIRONMENT

see page 45

Improve the functional energy efciency of key products* by at least 25% by 2012 compared with 2010*New or recently developed products on an upward curve of their life cycle.

2012

[NEW] Improve the functional energy efciency of lightRadio by at least 75% by 2015 compared with 2008. 2015

[NEW] Leverage our innovation to establish common methodology for measuring the carbon footprint of network telecommunicationsproducts over their life cycle, by 2012.

2012

[NEW] Eliminate PVC in all products by 2015*.*Subject to the availability of technically, environmentally and economically sound alternatives.

2015

[NEW] Achieve a 40% increase in the number of base stations deployed with alternative energy powering solutions (relative to 2010baseline) by end of 2011.

2011

REDUCE OUR CARBON

FOOTPRINT

see page 55

Reduce our absolute carbon footprint (CO2

equivalent) by 50%, of 2008 baseline, by 2020. 2020

[NEW] Reduce water consumption by 20%, of 2010 baseline, by the end of 2013. 2013

OUR PEOPLE

see page 66

Continue simplifying and standardizing HR processes by deploying MyHR Information System worldwide. Systems and tools supportbusiness needs and contribute to the achievement of organizational efciency and effectiveness.

2011

Have 80% of our high-potentials change position over 3 years. 2011

Triple the number of employees that complete professional certication, with impact on overall skill development and employability. 2011

[NEW] Launch a 3 year workforce planning with development plans, human capital performance metrics. 2012

[NEW] Increase internal mobility by 20% worldwide by end 2011. 2011

[NEW] Launch a groupwide professional accreditation program over 3 years : single training and accreditation framework applying to allcritical functions. Triple the certied People@ALU population from 2009 to 2011.

By end 2011

[NEW] Launch SA 8000 certication in one of Alcatel-Lucent’s major countries in 2011 for certication in 2012; extend to all large countries by 2014. 2011-2014

[NEW] Grow local management tracks and mobility : +50% campus hirings by 2012. By 2012

[NEW] Increase representation of women in management positions to at least match the representation in group population by 2014; +20%women among corporate exec by 2012.

2012-2014

[NEW] Extend existing equal pay agreements : engage discussions in Europe and Asia by end 2011 - By 2014 unexplained gender pay gap <5%. 2011-2014

[NEW] Extend teleworking agreement in top 20 countries by 2012. By 2012

[NEW] Finalize discussions on Global committee for information and dialogue by end of 2011. 2011

[NEW] Dene top management Corporate Responsibility metrics. 2011

[NEW] Build a systematic, group-wide knowledge management system, interactive knowledge platforms. Rebalance training portfolio inorder to promote greater employee mobility and career development opportunities across the company. Target 2011 : rebalance global/local trainings from 40/60 today to 55/45.

2011-2013

[NEW] Launch a group-wide sponsored GenY inclusion program by end 2011. By end 2011

PHILANTHROPY

ALCATEL-LUCENT

FOUNDATION

see page 78

Further foster the spirit of employee volunteerism across the company. On going

[NEW] Focus our future grass roots programs by 1) training our employees on our social investments 2) open the RFP to local NGOs 3) insiston the impact the programs should provide on individuals.

2011

[NEW] As of 2011, all new grass roots programs will be measured against a monitoring and evaluating system. 2011

SUPPLY CHAIN

see page 85

Include specic Corporate Responsibility requirements in 70% of procurement sectors, for the purchase of own use services/products,by end 2011.

By end 2011

Establish a systematic improvement program with suppliers assessed below satisfactory ensuring that by the end of 2012, 80% of theactive suppliers assessed on CR are satisfactory or above and action plans are in place for the remaining 20%, with an intermediate targetof 63% satisfactory by end 2011.

By end 2011+ end 2012

2. CORORATE RESONSIbILITY COMMITMENTS • 2.3 CR CHALLENGES AND COMMITMENTS ALCATEL-LuCENT 2010CORORATE RESONSIbILITY REORT

ContentSummary 02

AboutthisReport 03

1.MessagefromtheCEO 04

2. Corporate Responsiility Commitments 05 3.Alcatel-LucentOverview 10

4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66

9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98

13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■



2.3 CR Challenges and Commitments 07 ■■■■■■■■■■■■■■■■



99

CHALLENGES COMMITMENTS FOR THE COMING YEARSTIME

FRAME

GOVERNANCE

see page 12

[NEW] Ensure the improvement of gender diversity in our Board of directors by 2012. By 2012

[NEW] Improve the level and quality of the information provided to the Board of directors by 2011. By 2011

RISK AND CRISIS

MANAGEMENT

see page 17

[NEW] Have three regional ERM (Enterprise Risk Management) del iverables (risk maps) , updated every 2 years. By end 2011

[NEW] Have an updated Group-level ERM deliverable (risk map). By end 2011

[NEW] Cover more than 80% of key risks with a follow-up of mitigating actions. By end 2011

[NEW] Organize an annual Audit & Finance Committee ERM review. 2011

[NEW] Have more than 90% of all identied critical functions covered by our consolidated, enterprise-wide Business Continuity Management

Program (mature BCM Program).

By the end

of 2012

STAKEHOLDERS

see page 28

[NEW] Sign an MoU with the African Medical and Research Foundation (AMREF) to educate health workers via mobile phones and other

mobile devices.end 2011

[NEW] Sign an MoU with IGNOU University to support open and distance learning opportunities in rural and underserved areas across India. end 2011

[NEW] Via the Public Affairs team, promote digital plans in countries all around the globe, to support ICT benets for all, with the

establishment of an EU plan by mid July 2011.end 2011

[NEW] Via the Public Affairs team, promote with Public Authorities best in class CR policies, in particular Corporate Governance, to enhance

legislation and voluntary initiatives We will aim to include a reference to best in class practices in the 2011 G8/G20 summit results.end 2011

[NEW] Via the World Economic Forum play a leadership role to establish a framework for corporate best practices on gender diversity. By 2012

[NEW] Via the World Economic Forum sponsor a Young Global Leaders initiative to promote digital economies in Europe. By 2012

[NEW] Via our Alcatel-Lucent Foundation, provide digital training to 13,500 children over the next three years until 2014. 2014

CUSTOMER RELATIONSHIP

see page 33

[NEW] Reach 45% to 55% response (where 55% = Best-in-Class) for the Customer Relationship and Product surveys. By end 2011

[NEW] Establish a Business Partner survey in 2011, to improve our relationship and effectiveness with them, so that together we willbetter serve our customers.

By end 2011

INNOVATION MANAGEMENT

see page 34

[NEW] Triple our joint research projects with universities on environmentally sustainable technologies in the next three years. By 2014

[NEW] Double the percentage of research projects dedicated directly to Green technology) i.e. innovations whose primary function and

outcome is the reduction of energy and power consumption, etc. An example of such a project would be Active Antenna Arrays (also the

Large Scale Antenna Array developed for GreenTouch™ that exploits existing technology – massive MIMO – for energy efciency increase

as opposed to capacity increase) Timeframe = 3 years.

By 2014

[NEW] Double the percentage of research projects that have environmental sustainability as an indirect consequence (or one benet of

many). An example of such an innovation would be the light Radio cube. Timeframe = 3 years.By 2014

[NEW] The target composite total percentage of projects resulting in innovations that have either direct or indirect environmentally

sustainable benet is approximately 30% of the projects in the research pipeline over this timeframe.By 2014

2. CORORATE RESONSIbILITY COMMITMENTS • 2.3 CR CHALLENGES AND COMMITMENTS ALCATEL-LuCENT 2010CORORATE RESONSIbILITY REORT

ContentSummary 02

AboutthisReport 03

1.MessagefromtheCEO 04

2. Corporate Responsiility Commitments 05 3.Alcatel-LucentOverview 10

4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66

9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98

13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■



2.3 CR Challenges and Commitments 07 ■■■■■■■■■■■■■■■■



10

presentAtion of AlCAtel-luCent

3. ALCATEL-LUCENT VERViEW

helong-trustedpartnerofserviceproviders,enterprises,strategicindustriesandgovernmentsaroundtheworld,Alcatel-Lucentisa

leaderinmobile,xed,Iandopticstechnologies,andapioneerinapplicationsandservices.Alcatel-LucentincludesBellLabs,oneoftheworld’sforemostcentresofresearchandinnovationincommunicationstechnology.Withoperationsinmorethan130countriesandoneofthemostexperiencedglobalservicesorganizationsintheindustry,Alcatel-Lucentisalocalpartnerwithglobalreach.

Formoreinformation,visitAlcatel-Lucenton:http://www.alcatel-lucent.com

eadthelatestpostsontheAlcatel-Lucentblog:http://www.alcatel-lucent.com/blog

andfollowtheCompanyonwitter:http://twitter.com/Alcatel_Lucent

mployeeNationalitiesMore thAn 100

WorldwideresenceMore thAn 130 Countries

Annualevenues

€16 billionAdjusted&Dxpenses€2.5 billion

mployees

More thAn 79,000

Headquarters

pAris, frAnCe

●Networks

●Services●Applications●thers

REVENUES

OPERATING

SEGMENT

BREAKDOWN23%60%

12%

4%

REVENUES

GEOGRAPHICAL

BREAKDOWN

32%

36%

18%

14%

●NorthAmericaegion●urope●Asiaacic●estoftheworld



1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05

3. AlcatelLucent vervew 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■

Preentaton o AlcatelLucent 10

BellLabs,Alcatel-Lucent’s 11InnovationEngine

■■■■■■■■■■■■■■■■



11

bell lAbs, AlCAtel-luCent’s innovAtion engine

3. ALCATEL-LUCENT VERViEW

27,900ACtive pAtents held

7nobel prizes won

8reseArCh Centers Around the world

2,400pAtents obtAined in 2010

200CollAborAtions with universitiesAnd reseArCh pArtners worldwide

Well-knownforinventionsthatshapedtelecommunications

networksofthe20 thCentury–thetransistor,laser,DSL,UNIX,DWDMandMIM–BellLabscontinuestofocusitsresearchoninnovationsthatwilldenecommunicationsinthe21 stCentury.

Inparticular,BellLabsinventstechnologiesthatenableustogainmarketadvantage,helpourcustomerstomeettheirbusinessobjectivesanddeliverbenettosociety.

urscientistsconductresearchateightBellLabsfacilitiesaroundtheglobe:Belgium,China,France,Germany,India,Ireland,SouthKoreaandtheU.S.

In2010,BellLabs achievedtechnologybreakthroughsacrossnumeroustechnology disciplines, fromoptical andwireless

networkingtoenterprisesolutionsforeHealthcare,“green”researchineco-sustainabletechnologies,Web3.0researchforsocial/workplatformsandapplicationsforserviceproviders.

Someexamplesofrecentinnovationsintheseareasinclude:

•100Gigabitpersecondopticalnetworkingsolution

•ate-adaptiveopticallinksthatdramaticallyreduceenergyconsumption

•“eBookasaService”transformingexistingeeadersintoasocialcommunicationtool

BellLabsIntellectualropertyand Standardsorganization,responsibleformanagingtheGroup’spatentportfolio,obtainedmorethan2,400patentsworldwidein2010thatresultedfromtheAlcatel-Lucentesearchand Developmentcommunity’sinnovations.headditionofthesepatentsenrichesaportfoliothatconsistsofmorethan27,900activepatentsacrossavastarrayoftechnologies.



1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05

3. AlcatelLucent vervew 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■

P res en tat ion o f Al cat el -Lu cen t 10

ell Lab, AlcaltelLucent ’ 11innovaton Enne

■■■■■■■■■■■■■■■■



1212 ALCATEL-LUCENT 2010CRPRATE REsPNsiiLiTy REPRT


1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10

4. governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■ governAnCe

4.1CorporateGovernance 13

4.2BoardofDirectors 13GovernanceSystem

4.3BoardEffectiveness 15andransparency

4.4ProxyMaterialsDeliveryfor 152011Shareholders'Meeting

4.5SeniorManagement 16Remuneration

4.6Risk&CrisisManagement 17 ■■■■■■■■■■■■■■■■



13

Alcatel-Lucentis compliantwiththe AF-MDFCode ofcorporategovernance forlisted corporations.he BoardofDirectorsconfirmeditsadherenceto theAFandMDFrecommendations.heprinciplesoftheCodegovern,among

otherthings,theoperatingrulesofourBoardofDirectorsanditsCommittees.

heCodeisbasedon specificprincipleswhichalsolargelyunderpinourcorporategovernancepolicyasthoseprinciplesareinlinewiththeorganization,thestatusandthemeansoftheGroup,unlessotherwisementioned.

4.1 CorporAte governAnCe

4. gVERNANCE13

4.2.1 peratn rule

Alcatel-Lucentoperatesaccordingtoaso-called“monist”system,

whichmeansthatitisgovernedbyaBoardofDirectorsratherthanbyaSupervisoryBoardandManagementBoard.heduties

oftheChairmanoftheBoard,performedbyhilippeCamussincectober 1,2008,andthoseoftheC,performedbyBen

VerwaayensinceSeptember15,2008,areseparate.

FollowingtherenewaloftheirrespectivetermsofofceattheShareholders’MeetingonJune1st,2010,ourBoardofDirectors

decidedtoconrmtheprincipleofseparationoffunctionsofChairmanandCandtoreappointMr.CamusasChairmanoftheBoardofDirectorsandMr.VerwaayenasCforthedurationoftheirtermsofofceasdirectors.

4.2.2 Memberp and peraton o te oard

urBoardconsistsof11directors,whosetermsofofcewerereducedfromfourtothreeyearsin2010,inordertostaggerthedirectors’termsofofce.AccordingtotheAF-MDFCode,thetermsofofceshouldbestaggeredsoastoavoidreplacementof

theentireBoardofDirectorsandtofavorasmoothreplacementofdirectors.

AsofDecember31,2010,the11Boardmembersrepresented

sixdifferentnationalitieswithanaverageageof62.obroadenthecircleoftheBoardofDirectorsandbringinnewpersonalitiesrecognized intheir fieldsof expertise,the Boardproposed toappointCarlaCicoasadirectorattheJune2010annualmeeting.

his proposalalsofallsundertheproposedlawrelatingtothebalancedrepresentationofwomenandmeninBoardsofdirectors.AccordingtotheGroup’sArticlesofAssociation,theBoardofDirectorsmustalsoincludetwoobservers(inFrench,“censeurs” ).heobserversareappointedbytheshareholders’meetingand

mustbe(i)salariedemployeesofAlcatel-Lucentoranafliateand(ii)membersofanAlcatel-Lucentmutualfund(inFrench, “fondscommundeplacement” ).

4.2.3 selecton Crtera and independence

heappointmentofnewdirectorsmustcomplywithselectionrules which areappliedbyour CorporateGovernance andNominatingCommittee.MembersoftheBoardmustbecompetent

intheGroup’shigh-technologybusinesses,havesufcientnancialexpertisetomakeinformedandindependentdecisionsaboutnancialstatementsandcompliancewithaccountingstandards,andbeentirelyindependentoftheGroup’smanagement.

heBoardreviewedthesituationofeachdirectoraccordingtotheindependencecriteriaoftheAF-MDFCodeonFebruary9,2011.nthebasisofthisreview,theBoarddeterminedthatnineofits11membersqualiedasindependent.heCisnotan

independentdirector,noristheChairmanoftheGroupwhocouldnotbequaliedasindependentaccordingtotheAFMDFCode.heAF-MDFCoderecommendsthatatleasthalfofBoardmembersqualifyasindependentdirectors.

4.2 boArd of direCtors governAnCe systeM4.1 Corporate governance 13

4.2 oard o Drector 13governance stem


4.4ProxyMaterialsDeliveryfor 15

2011Shareholders'Meeting 4.5SeniorManagement 16

Remuneration





Glossary 107■■■■■■■■■■■■■■■■

4.2.1 peratn rule 13

4.2.2 Memberp and 13peraton o te oard

4.2.3 selecton Crtera 13and independence

4.2.4Director’sCharterandEthics14

4.2.5Conictsofinterest 14

4.2.6BoardDuties 14 ■■■■■■■■■■■■■■■■




14

4.2.4 Drector’ Carter and Etc

Before accepting office, each prospective director mustacknowledgetheDirectors’Charteranditsobligations.heCharterstipulatesthateachdirectormustattendmeetingsanddedicate

thetimeandcarerequiredbytheofce,respectcondentiality,contributetosettingtheGroup’sstrategicdirectionandmonitorimplementationofthestrategy.

he Directors’Charteralso encouragesdirectors toown asignicantnumberofshares(500sharesminimum),andstipulatesthateachdirectormustcomplywithapplicablesecuritieslawsaswellaswiththerulesoftheAlcatel-LucentInsiderradingolicy,

whichisdesignedtopreventinsidertrading.

Directors arealso remindedthat underFrenchregulatoryrequirements,adirectormustnotifytheAutoritédesMarchésFinanciers (theFrenchsecuritiesmarketregulator)ofanypersonaltransactionsinvolvingAlcatel-Lucentshares.

4.2.5 Conct o interet

oourknowledge,therearenopotentialconictsofinterestbetweenanydirectors’duciarydutiesandtheirprivateinterests.

InaccordancewiththeDirectors’Charter,adirectormustnotifytheBoardofanyactualorpotentialconictofinterest.

herearenofamilyrelationshipsbetweenmembersoftheBoard

ofDirectorsandseniormanagement.

oourknowledge,thereisnoarrangementoragreementwithashareholder,client,supplieroranythirdpartythathasledtothe

appointmentofourC,oramemberoftheBoardofDirectorsoroftheManagementCommittee.

4.2.6 oard Dute

Inadditiontoperformingitslegalandregulatoryduties,theBoardofDirectorsregularlyprovidesinputontheGroup’sstrategicdirectionand thekeydecisionsaffectingits activities.he

Boardprovidesitsview,inparticular,onthemaincommitmentsundertakenbytheGroupanditsmajorinvestments,aswellasonthetransactionsthatmaysignicantlyaffectitsresultsorthestructureofitsbalancesheet.

heBoardofDirectorsalsoanalyzestheoutlookresultingfromtheresearchanddevelopmentactivitiesoftheGroupandgivesinputonthemaintechnologyoptionschosen.Inaddition,the

BoardmonitorstheeconomicandnancialmanagementoftheGroup,andauthorizesthenancialtransactionswhichhaveasignicantimpactonitsaccounts.

heBoardfully exercisesits authorityand endeavorstoensurethateachdirector’scontributionisentirelyeffective,in

accordancewiththeprinciplesofcorporategovernanceremindedaboveandtheprovisionsofitsperatingules.

144. gVERNANCE • 4.2BADFDICSGVNANCSYSM


4.2 oard o Drector 13governance stem




Remuneration





Glossary 107■■■■■■■■■■■■■■■■

4.2.1Operatingrules 13

4.2.2Membershipand 13OperationoftheBoard

4.2.3SelectionCriteria 13andIndependence

4.2.4 Drector’ Carter and Etc 14

4.2.5 Conct o nteret 14

4.2.6 oard Dute 14 ■■■■■■■■■■■■■■■■




15

heBoardmeetsatleastonceeachquartereitheratourheadofceoratanyotherlocationinFranceorabroadasindicatedinthenoticeofmeeting.

heGroupprovidesdirectorswiththeinformationtheyneedtoperformtheirduties.heyregularlyreceivesuchinformationaspressreleases,nancialanalystreportsandsharepricedata.hisinformationisavailabletoBoardmembersatalltimesviaa

secure,dedicatedintranetsite.

heymayalsoseektheopinionofseniormanagementonanysubjecttheydeemappropriate,especiallyduringtheinformal

meetingswithGroupexecutiveofcersheldpriortoeachBoardmeeting.

heBoardofDirectorshasfourcommittees:AuditandFinance,

Corporate Governance & Nominating, Compensation andechnology.achcommitteehasitsownoperatingrulesapproved

bytheBoard.

Boardmeetingscalledtopreparetheyear-end,half-yearandquarterlynancialstatementsaresystematicallyprecededbyareviewofthenancialstatementsbytheAuditandFinanceCommittee.

heBoardcarriesoutanannualassessmentofitsownworkandoftheperformanceoftheexecutivedirectors.Atleastonceeverytwoyears,itsperformanceisassessedbyanindependentconsultant.

urBoardof Directorsalso ensures thatits activitiesaretransparenttoshareholdersbyincludingintheGroup’sAnnualeportanoverviewoftheworkcarriedoutbytheBoardandits

Committeesduringthelastscalyearalongwithinformationonitsprocedures.

4.3 boArd effeCtiveness And trAnspArenCy

4. gVERNANCE15

WithregardstoAlcatel-Lucent’seco-responsibility,theAlcatel-Lucentordinaryshares(D)shareholderswhohaveagreedtoelectronicdeliveryofproxymaterialswillreceivethenoticeofmeetingbye-mail.

heymayconsultanddownloadthereportoftheBoardonresolutions,thenoticeofmeetingtotheShareholders’MeetingandtheDocumentdeéférence2010 ledwiththeAMFbyconnectingtoourInternetsitewww.alcatel-lucent.com

heholdersofAmericanDepositaryShares(ADS)*whoreceivetheNoticeofInternetAvailabilityofroxyMaterialswillnotreceiveaprintedcopyoftheproxymaterialsunlesstheyspecicallyrequestone.henoticeprovidesinstructionsonhowtoaccess

andreviewalloftheproxymaterialsontheInternetandexplainshowtosubmittheirproxyontheInternet.

*AnADSrepresentoneunderlyingD,andallowsU.S.investorstohaveaccesstonon-U.S.corporateissuers.

4.4 proxy MAteriAls delivery for 2011

shAreholders’ Meeting

Aac a ba a Cmm M 2010

BADANDCMMIMINGSba A a ac

cmmCa ac

a macmm

Cmacmm

tccmm

verallparticipationrateofboardandcommitteemembers

97.5% 90% 100% 94% 91%



4.3 oard Eectvene 15and Tranparenc

4.4 Prox Materal Delver or 15

2011 sareolder' Meetn 4.5SeniorManagement 16

Remuneration





Glossary 107■■■■■■■■■■■■■■■■




164. gVERNANCE

16

4.5.1 Executve Drector and senor Manaement

heCompensationCommitteeisresponsibleformakingproposalstotheBoardofDirectorsregardingcompensationofthedirectors,theChairman,theCandkeyseniorexecutives.Itevaluatesallcompensationpaidorattributedtothem,includingcompensation

relatingtoretirement,andallotherbenets.ItalsoreviewsthepoliciesrelatingtothegrantofstockoptionsandperformancesharestotheGroup’sexecutiveofcersandinparticulartomembersoftheManagementCommittee.herecommendations

arebasedbothontheanalysisofthepracticesofotherissuersinthesamebusinessasAlcatel-Lucentandinreferencemarkets,inparticularuropeandtheU.S.heBoardofDirectorsensuresabalanceamongthevariouscomponentsinxecutiveDirectors’compensation.heseinclude

xedandvariablecompensation,stockoptionsandperformance

shareawards,andadditionalpensionbenetsifany.Italsoensuresthatthesecomponentsaresetinaccordancewiththegeneralprinciplesofcomprehensiveness,balance,benchmarking,

consistency,clarityoftherulesandreasonablenessassetforthintheAF-MDFCode.

4.5.2 Compenaton reakdown or te ExecutveDrector*

heBoardelectedtotargettheeffortsandcompetenciesoftheChairmanandConbothshort-termandmedium-tolong-termgoals.heperformancecriteriawerealsosetinsuchamannerastoallowtheBoardofDirectorstoassessthemedium-andlong-

termmeasurestakenbythexecutiveDirectorsinareaswheresuchmeasuresweremostlikelytohaveadelayedimpactontheGroup’snancialperformance.

hecompensationofMr.Camuscomprised(i)anannualcashcomponent without anyvariablecompensation,and (ii)acomponenttobepaidinshares,inlinewiththepracticeofcompaniesinreferencemarketsintheU.S.InaccordancewithFrenchlaw(AF-MDFCode),thecompensationtobepaid

insharesisgrantedinperformancesharesandsubjecttothesatisfactionofquantitativeperformancecriteriafor30%,andqualitativeperformancecriteriafor70%.

FortheC’scompensation(variableremuneration,pensionbenetsandstockoptions)eachcomponentisdependenton

thesatisfactionofoneormoreperformancecriteria.hetotalannualcompensationisconsistentwiththecompensationofothermembersoftheGroup’sseniormanagement.Mr.CamusandMr.Verwaayenarenotentitledtoanyseverancepayment,evenuponforcedterminationresultingfromachange

incontrolorstrategy.

*FormoreinformationseeSections7.5“Compensation”and7.6“InterestofemployeesandseniormanagementinAlcatel-Lucent’scapital”ofthedocumentdereferenceandtheForm20F.

4.5.3 Drector’ fee

hedirectorsreceivedirectors’fees(i)foraxedportion,for

performingtheirdutiesontheBoardofDirectorsand,whererelevant,ononeoftheBoards’committees,(ii)foravariablepart,

fortheirattendanceatthevariousmeetings.Additionaldirectors’feesareequallyallocatedamongthedirectors,subjecttotheinvestmentinsharesoftheamountgrantedandtotheholdingoftheacquiredsharesduringthedurationofthetermofofce

asdirector.InaccordancewiththeprovisionsofArticle6oftheBoardofDirectors’peratingules,theChairmanandtheChiefxecutivefcerdonotreceiveanyattendancefees.

4.5 senior MAnAgeMent reMunerAtion





2011Shareholders'Meeting4.5 senor Manaement 16

Remuneraton




4. governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66

9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■

4.5.1 Executve Drector 16and senor Manaement

4.5.2 Compenaton reakdown 16or te Executve Drector

4.5.3 Drector’ ee 16 ■■■■■■■■■■■■■■■■


●Breakdownofdirector’sfees●Fixedortion€395,000

(contingentoftheposition)

●Variableortion€395,000(contingentonpresenceatthemeeting)

●Additionalortion€200,000(linkedtothecommitmenttobuyandholdshares)

DIRECTORS’ FEES



17

e r MaamheAlcatel-LucentnterpriseiskManagement(M)isbuilton

acomprehensiveframeworkcovering80riskswhichencompassoperations,nance,legal&compliance,intangiblesandstrategy.Itcomprisesriskidenticationandevaluationaswellasthesetupandcapturingofmitigatingactionsforkeyrisks.heprocess

permitsenterprise-widevisibilityontheimpactofalltypesofriskonprocesses,activities,stakeholders,productsandservices.hisenablestheGrouptodeneeffectiveandsustainableriskresponses.urMidentiesthemostsignicantrisksbased

onaconsensusviewandprioritizesthemin termsof theirimpactonachievingbusinessobjectives.isksareevaluatedintermsofseverityofimpact,likelihoodofoccurrenceandcontroleffectiveness.

heAlcatel-LucentChiefFinancialfcer,aManagementCommittee

memberreportingdirectlytotheC,representstheMattheBoardofDirectorsanditsAuditandFinanceCommittee.heheadofisk&InsurancewithinCorporateFinance&Investmentistheowner

oftheMprocess.Initiatedtenyearsago,theAlcatel-LucentMcomplieswithCSII,anintegratedframeworkfornterpriseiskManagementthatenablesacompanytostructureallkindsofrisksandorganizeappropriatemitigatingactions.heAlcatel-LucentM

isalsocompliantwithAMFandSarbanes-xleymandates.

AnumberofkeyriskswereidentiedaskeytotheGrouponthebasisofconsolidated2010Mresultsandinputsfromselected

corporatestakeholders.heseriskshavebeencommunicatedtotheBoardofDirectorsanditsAudit&FinanceCommittee.Foreachkeyrisk,corporateriskownerswereidentied.Mitigatingactionplans

andkeyperformance/riskindicatorsweredenedandvalidatedinliaisonwiththecorrespondingMCmemberorhis/herdirectreports.hesemitigatingactionswillbetrackedoverthecourseof2011.

In2010,riskmitigationprograms focused inparticularonpropertyconservationandsupplychaincontingencies.Industrial

riskscontinuetobewellprotectedagainsthighfrequencyandhighimpactrisks;morethan63%ofourotalInsuredValuesareclassiedas“H–Highlyrotectedisk”(1).Contingenciesandinterdependencieslinkedto externalandAlcatel-Lucent

manufacturingandlogisticsnodeswerethoroughlyanalyzed.hispolicyandlevelofmitigationbenetseveryone–ourcustomers,employees,suppliersandstakeholders.

tArgets 2011

1. By the end of 2011, we expect to have all three regional ERMdeliverables (risk maps), updated every two years.

2. By the end of 2011, we expect to have-the Corporate-levelERM deliverable (risk map) updated.

3. By the end of 2011, we expect to cover more than 80% ofkey risks with a follow-up of mitigating actions.

4. In 2011, we expect to organize the annual Audit & FinanceCommittee ERM review.

(1)AHighlyrotectediskisafacilityatwhichexposuretolossduetonaturalhazards(earthquake,ood,windstorm,etc.) andindustrialrisks (re,etc.)has beenreducedtoanacceptablelevelthroughallreasonablehumanelement(toavoidhighfrequencyrisks)andphysicalprotectionmeasures(toreducehighimpactrisks).

4.6 risk & Crisis MAnAgeMent

4. gVERNANCE17

key AChieveMents for 2010

The overall key achievement is to maintain a mature ERM

process in place that complies with AMF requirements

and the AFEP/MEDEF code.

1. Three risk maps cover the Group’s three regions. They are

updated every 2 years and were all up to date in 2010.2. A Corporate-level risk map has been delivered in

2010. It is to be updated annually.

3. 100% of the Group’s key risks have associated

mitigating actions in 2010.

4. The Audit & Finance Committee conducted an ERM

review on Dec. 5th, 2010. It is to be conducted annually






Remuneration

4.6 Rk & Cr Manaement 17 ■■■■■■■■■■■■■■■■





Glossary 107■■■■■■■■■■■■■■■■




18184. gVERNANCE • 4.6ISK&CISISMANAGMN

b C: Cc paurenterprise-wideBusinessContinuityManagement(BCM)rogramisdesignedtoenableAlcatel-Lucenttocontinuebusinesscriticalfunctionsandmeetcustomerexpectationsin“unusual”circumstances.ItiscloselylinkedtoandsupportstheCorporate

CrisisManagementprocess.Ifandwhentheyareneeded,businesscontinuityplansareactivatedtosupportcontinuityofcriticalfunctionssuchasproductdelivery,installationandtechnicalsupportforcustomers.

heGroupismidwaythroughafour-yearplanlaunchedin2008toestablishastandardformatandcentralizedrepositoryforitsbusinesscontinuityplans.hefour-yearinitiativeaimstointegrate

plansforenterprise-widecoverage.heobjectiveistohaveamatureBCMrogramwithmorethan90%ofallidentiedcriticalfunctionscoveredbytheendof2012.For2010,aninterimtargetof60%coveragewasset.histargetwasexceeded.

Contnenc Plan or Envronmentaland CRrelated Rk

e al s t at e B u si n es s C o nt i nu it y l an s ( B C s ) a ddre s senvironmentalrisksnotasaspecicthreatbutastheriskresponsetolossofacriticalfunction.Asofthiswriting,75realestatefacilitiesplanswereinplace.heytargetlocationswithmorethan500employees(ormorethan200employeesinareaswithelevatedrisksuchasearthquake-prone,orpoliticallyvolatile). he plans coverall critical reales tate functionsidentiedforagivenlocation.

Withsome exceptions,BCs arenot developedper threat(environmental,reetc.)butpercriticalfunction.herefore,

BCsrespondtoanythreattoanysystemthatbecomesmaterial.Includingenvironmentalrisks.SomeBCs,centrallymanagedbytheBusinessContinuityManagementrganization,andlocalemergencyresponseplansrespondtoparticularhazardssuchasearthquakes,pandemicsetc.

egarding compliance and ethics and human resourcesmanagement,keyrisksareidentiedintheM,requiringdedicatedmitigatingactionstoensurecontinuityandavoidcontagionorrapiddeterioration.Dedicatedprocedures,businesscontinuityandcrisismanagementplansareputinplacetomanagetheappropriateriskresponsetotheidentiedkeyrisks.

tArget 2012

Have more than 90 % of all identied critical functions coveredby our consolidated, enterprise-wide Business ContinuityManagement Program by the end of 2012 (mature BCM Program)

Local ntatve:

CnaurChineseoperationsreducedanticipatedprobablelossesat amajormanufacturinglocationbytwo-thirds.iskreductioninitiativesthereareongoing.Atacontractmanufacturinglocation,theprotectionsystem

wasupgradedtobetterwithstandearthquakesandlosspreventionprocedureswerereinforced.

spanBusinesscontinuityplanswereactivatedwhenthebuildinghousing1,100Alcatel-LucentpersonnelinMadrid,Spain partiallycollapsed beforedawn onDecember16th2009.hankfullynoonewasinjuredtherefore the event did not trigger any of thespecicproceduresincludedintheplanstoaddressthateventuality. Afterwards,BC teammembersexpressedcondenceinthebusinesscontinuityplan,whichfacilitatedatimelyrecoverywithnoimpactoncustomers.

key AChieveMents for 2010

In late 2010, more than 60% of all identied critical functions

were covered by our consolidated, enterprise-wide Business

Continuity Management Program.






Remuneration

4.6 Rk & Cr Manaement 17 ■■■■■■■■■■■■■■■■





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19

ethiCs &CoMpliAnCe



1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12

5. Etc and Complance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66


Glossary 107■■■■■■■■■■■■■■■■

5.1Ethics&ComplianceApproach 20

5.2Anti-corruptionProgram 21

5.3Compliance 22

5.4PrivacyProtection 23

5.5ComplianceGovernanceStructure 24

5.6ComplianceRiskAssessment, 25

EnhancementandMitigation

5.7Educationandraining 26

5.8InternationalInitiatives 27 ■■■■■■■■■■■■■■■■



20

Alcatel-Lucenthasdesignedandimplementeda compliancemanagementsystemtoachievetwoequallyimportantgoals:

•o preventand detectviolations oflaw,regulation andcompanypolicy;and

•opromoteanethicalbusinesscultureacrosstheorganization.

obringthesegoalstolife,Alcatel-Lucenthasputintoplaceacomprehensivethics&Complianceprogramthatisconsistentwithbestpracticestandardsandevolvinglegalrequirements.Bydesign,theprogramgoesbeyondstrictlegalcomplianceandestablishesanethicalbusinessculturethatenhancesourreputationasacompanythatclientswanttopatronizeandwhereemployeeswanttowork.

heGroup’scomprehensivethics&Compliancemanagement

systemincludes:

•Compliancegovernancestructure,withseniormanagementinvolvementandoversight;

•oliciesandprocedures;

•GlobalCodeofConduct;

•Complianceriskassessment,withrelatedmitigationplansandprocessesforcontinuousimprovement;

•Communicationandtraining;and

•Accountabilityandconsequences,includingreportingmechanisms.

z tacInNovember2008,thecompanyannouncedastrategytophaseouttheuseofsalesagentsandconsultantsonthebasisthat

thecorruptionriskinherentintheiruseisinconsistentwiththeGroup’s“zerotolerance”policy.hestatusofthisprogramisreviewedregularlyatthehighestlevelsoftheGroup,includingtheAlcatel-Lucentthics&ComplianceCouncilandtheBoardofDirectors.

nJuly1,2009,theGrouprolledoutanew“SalesChannelScreeningand Selectionrocess”designed toensure thatresellers,distributors,andotherthird-partysaleschannelsarenotusedinsuchawayastocircumventpoliciesprohibitingtheuseofsalesagentsandconsultants.

5.1 ethiCs & CoMpliAnCe ApproACh

5. EThiCs & CMPLiANCE

5.1 Etc & Complance Approac 20


5.3Compliance 22




EnhancementandMitigation 5.7Educationandraining 26


2010 AChieveMents

The Alcatel-Lucent Data Privacy Plan, developed in 2009,

was substantially implemented over the course of 2010.

• At the end of 2010, 84% of employees had completed

Ethics & Integrity Overview training, with ongoing

activity to achieve 100% completion across the Group’s

79,796 employees.

• A cultural survey, conducted for the rst time in 2010,

demonstrates that approximately 95% of employees

rated Alcatel-Lucent’s commitment to conducting

business with 100% integrity as high (with approximately

5% rating this category as medium) and further reported

that they knew how to report potential violations of law

or Group policy. Approximately 93% of employees rated

their direct supervisor’s commitment to conductingbusiness with 100% integrity as high (with an approximately

6% rating this category as medium).






Glossary 107■■■■■■■■■■■■■■■■



21

Alcatel-Lucenthas designatedAnti-Corruptionasa “ier 1”(highestpriority)complianceareabasedonthelevelofrisk

inourindustryandtheimportancetotheGroup.heAnti-CorruptionCompliancerogramfocusesonensuringemployeeawarenessofandcompliancewithapplicableAnti-CorruptionlawsandcompanypoliciesconsistentwiththeGroup’szerotolerancepolicy.

heprogram’skeyelements,allofwhichwereimplementedoverthecourseof2010,include:

•ngoinglegislative/regulatorymonitoring;

•Annualprogramself-assessmentwithrelatedenhancementplans;

•Annualcomplianceriskassessmentwithrelatedmitigationplans;

•egularstatusreportingtoseniormanagement.

As part of the ongoing Anti-Corruption compliance riskassessmentprocess,detailedriskmitigationplans,alignedwithrobust enhancementplans,havebeendevelopedforeveryperatingUnitsacrossthebusiness.oensurefullalignment,eachperatingUnit’scomplianceriskassessmentreportwasreviewed,approved anddocumentedby theManagementCommitteememberresponsibleforthatorganization.Consolidatedriskassessmentresultsare sharedregularlywithall interestedstakeholders,includingseniormanagement.Inaddition,peratingUnitComplianceLeadersprovideperiodicstatusreportsonactionplanimplementationtothefceofBusinessConduct.

InadditiontoaGroup-wideAnti-Corruptionrogram,whichestablishesanti-corruptionstandards,policiesandprocedures,

theCorporateInvestigationServicesorganizationestablishedanAnti-CorruptionCompetencyCenterinMarch2009responsiblefortestingcompliancewiththeprogram.Morespecically,CorporateInvestigationServicesdevelopedariskassessmentandtestingapproachandmethodologytotesttheeffectivenessofthecontrolsinplacetohelpensurecompliancewithinternalAnti-Corruptionpoliciesand procedures.he approachandmethodologyiscontinuallyassessedandenhancedtoensurethatiteffectivelyaddressestheGroup’santi-corruptionrisks.

5.2 Anti-Corruption progrAM


u.s. settleMent

In December 2010, Alcatel-Lucent entered into nal

settlement agreements with the U.S. Securities and

Exchange Commission (SEC) and the Department of

Justice (DOJ). Under the agreement with the SEC, which

has been approved by the U.S. Federal Court, we neither

admit nor deny the allegations of violations of the

antibribery, internal controls and books and records

provisions of the U.S. Foreign Corrupt Practices Act

(FCPA) in the SEC’s complaint, we are permanently

restrained and enjoined from future violations of U.S.

securities laws, we are liable for U.S.$45.4 million in

disgorgement of prots and prejudgment interest, and

we agree to engage a French anticorruption compliance

monitor for three years. Under the agreement with the

DOJ, if the settlement is approved by the court we will

enter into a three-year deferred prosecution agreement(“DPA”) charging us with violations of the internal

controls and books and records provisions of the FCPA,

and we will pay a total criminal ne of U.S.$92 million

– payable in four installments over the course of three

years. If we fully comply with the terms of the DPA,

the DOJ will dismiss the charges upon conclusion of the

three-year term. In addition, three of our subsidiaries –

Alcatel-Lucent France, Alcatel-Lucent Trade International

AG and Alcatel Centroamerica – will each plead guilty to

conspiracy to violate the FCPA’s antibribery, books and

records and internal accounting controls provisions.

The DPA also contains provisions relating to engaging

a French anticorruption compliance monitor for three

years. The settlement agreement with the DOJ iscurrently under consideration by the U.S. Federal Court

for approval, and we can provide no assurance that it will

be approved.

Read more


5.2 Antcorrupton Proram 21

5.3Compliance 22











Glossary 107■■■■■■■■■■■■■■■■



22

Alcatel-Lucenthasdevelopedandimplementedanindependentand transparent global compliance governance structure.

esponsibilityisclearlyassignedfordesigningthecomplianceprogram, implementing programelements consistentwithbusinessneedsandensuringoverallaccountabilityforprogramresultsacrossthebusiness.

Buildingacomprehensivethics&Compliancemanagementsystemwithintheframeworkofacorporatecultureofintegrityhasbeenandcontinuestobeouroverridingfocus.Alcatel-Lucent’scompliancemanagementsystemisanintegratedsystemsupportedbyanunderlyingcorporatecultureofintegritywhereeveryindividualplaysakeyroleinmaintaininghighstandardsofethicalconduct.

Alcatel-Lucenthasestablishedwrittencomplianceandethics

standardsforkeycomplianceprogramareas.hesepoliciesandproceduresdeneacceptableandprohibitedbehaviorsandprovideemployeeswithaccesstoresourcesavailabletohelpthembehaveinamannerconsistentwiththeGroup’svalues.Keypoliciesarereviewedperiodicallyandrevisedasneededtoaddresschangesinlawand/ortheprevailingbusinessenvironment.

z tac pcheGroup’szerotolerancepolicyrequires100percentintegrityinallbusinesspractices.Managementexpectsallemployeestocomplywithapplicablelegalandcompanyrequirements;allidentified compliance violationsare addressed swiftly,consistentlyandfairly.

Aspartofareinforcedfocusonzerotolerancelaunchedin2009,Alcatel-Lucentphasedouttheuseofagentsandconsultantstoreducerisksofcorruption.

Allbusinesspartners,includingsuppliersandcontractors,areselectedbasedonmerit,reputationandtheirabilitytohelpAlcatel-Lucentachieveitsbusinessobjectives.Allpartnersmustabidebyethicalstandardsandbusinesspractices.Inadditiontosuchcriteriaasprice,qualityanddeliverycapability,suppliers

andcontractorsarechosenaccordingtotheirreputationforservice,integrityandsocialresponsibility.

5.3 CoMpliAnCe


Code of ConduCt

The Alcatel-Lucent Code of Conduct serves as the

cornerstone of the Group’s Ethics & Compliance program

and establishes the company’s core values, ethical

standards and expectations for its employees. The Code

has been translated into 22 languages and is posted on

our Intranet site, which also provides links to additional

resources. All employees globally are required to review

the Code of Conduct and acknowledge their review

and agreement to abide by its terms. Understanding

of the Code is further reinforced through mandatory

Ethics and Integrity Overview training as well as other

specialized training in key compliance areas. At the end

of 2010, approximately 84% of employees completed

Ethics & Integrity Overview training, with activities

ongoing to drive completion of this requirement across

the total Group population of 79,796 employees.



5.3 Complance 22











Glossary 107■■■■■■■■■■■■■■■■



23

Alcatel-Lucentiscommittedtorespectingindividuals’privacyrightsandexpectationsandtoprotectingthepersonaldatait

collectsfromunauthorizedaccess,use,retention/storageand/ordisclosure.verthecourseof2010,theGroupimplementedGlobalrivacyandDatarotection oliciesto fulfillthiscommitment.

HighlightsoftheGlobalrivacyandDatarotectionoliciesincludethefollowingrequirements:

•Notifyindividualsof the processingof personaldata byAlcatel-Lucententities,employeesandthirdpartiesactingonbehalfoftheGroup;

•Notifyindividualsoftheavailablechoicestheymayhaverelatingtotheprocessingoftheirpersonaldataand,when

required,obtaintheindividual’sconsent;

•Collectpersonaldataonlyforthespecicpurpose(s)indicatedinindividualnoticationsandproportionaltotheapplicablepurpose(s);

•Usepersonaldataonlyforthepurpose(s)forwhichithasbeencollectedasindicatedinindividualnotications;

•rovidedatasubjectswithaccesstotheirpersonaldataforreviewandupdates.

gacheChiefrivacyfficerisresponsibleforensuringthat

Alcatel-LucenthasaconsistentandeffectiverivacyandDatarotectionstrategy,inlinewiththeoverallbusinessstrategy,and associatedrivacy and Datarotection complianceprogramandwithapplicableprivacyanddataprotectionlaws.

heChiefrivacy fficer hasresponsibility fordefining,documenting,promotingandcommunicatingtheAlcatel-Lucent

GlobalrivacyandDatarotectionolicies.esponsibilityforestablishingand executing therivacy andDatarotectionprogramlieswiththerivacyandDatarotectionCompliancerogramwner.herogramwnerisresponsiblefordevelopingandimplementingprocessesandprocedurestoensureglobalcompliancewiththesedenedstrategyandpolicies.

therkeystakeholdersinclude:

•herivacyandDatarotectionSteeringCommitteewhosemaingoalistoprovideoverallcross-functionalleadershipanddirectiontotherivacyandDatarotectionprogram;

•AChiefrivacyandDatarotectionCounsel,whoensuresthat

thevariousstakeholdershaveallnecessarylegaladviceandsupport;and

•heDatarivacyNetwork,whichconsistsoflegal,humanresourcesandotherspecialistsrepresentingcountrieswhereAlcatel-Lucentoperates.

2011 pIn2011,thefocusoftheGlobalrivacyandDatarotectionprogramwillbeonassessingandincreasingthecomplianceprolefortheGroup’s50mostcriticalapplications.Awarenessandtrainingeffortswillbereinforcedwithmaterialtargetedtospecicaudiences,suchasinformationtechnology,humanresourcesandsales&marketing.heorganizationalsoaimsto

developmetricstomeasuretheeffectivenessandtrackprogressoftheGroup’sprivacyanddataprotectioninitiatives.

5.4 privACy proteCtion




5.3Compliance 22

5.4 Prvac Protecton 23










Glossary 107■■■■■■■■■■■■■■■■



24

Alcatel-Lucenthasdevelopedandimplementedanindependentandtransparentglobalcompliancegovernancestructurewith

definedfunctionsresponsiblefor designingthe complianceprogram, implementing programelements consistent withbusinessneedsandensuringoverallaccountabilityforprogramresults.

•heAlcatel-Lucentthics & ComplianceCouncil,chairedbytheChiefCompliancefcer,consistsofseniorlevelGroupofcials.Itisresponsibleforoverseeingandmonitoringprogramstatus,bothacrosstheGroupandwithineachbusinessunit.

•heperatingUnitComplianceCouncil,consistingofcompliancerepresentativesfrom eachbusiness, orperating Unit,isresponsiblefordesigningandimplementingprogramelementsandensuringachievementofmeasurableresults.

•heCompliancerogramwnercommunity,consistingofthefunctionalownersfortheGroup’skeycomplianceprogramareas,isresponsibleforensuringthateachoftheseprogramsisfullyintegratedintobusinessoperations,effectivelymanagedandconsistentinqualityacrosstheorganization.

•heAlcatel-LucentBoardofDirectors,throughtheAuditandFinanceCommittee,providesprogramoversightandreceivesformalreportsonoverallprogramstatusatleasttwiceperyear.

C Cmac ocheGroup’sChiefCompliancefcer,apositionestablishedin2009,isresponsibleforensuringthatAlcatel-Lucentoperations

areconsistentwithacultureofintegrity.heChiefCompliancefceroverseesthefceofBusinessConductandisresponsiblefor supporting and overseeing the global Alcatel-LucentComplianceManagementSystem.heChiefCompliancefcerandtheGeneralCounselpresentthestatusoftheGroup’sthics&ComplianceprogramtotheBoardofDirectorsatleasttwiceperyear.Inaddition,attherequestoftheChairmanoftheBoard,thefceofBusinessConductdevelopedatrainingprogramtoensurethatBoardmembersareknowledgeableaboutcriticalareasofthics&Compliance,withafocusonAnti-Corruption.

ra CmacInadditiontothereferencedperatingUnitComplianceCouncil,aegionalChiefCompliancefceroverseesandreinforcescompliance policies ineach ofthe Group’sthree regions.

heseegionalChiefCompliancefcersworkcloselywithAlcatel-Lucent’sChiefCompliancefcerandthecomplianceorganization,thefceofBusinessConduct,aswellaswithCorporateAuditServicesandtheLawDivision,todeploytheAlcatel-LucentComplianceprogramwithintheirorganizations.

5.5 CoMpliAnCe governAnCe struCture


Complance hotlneFundamentaltothesuccessofAlcatel-Lucent’sCompliance

ManagementSystemistheabilityofemployeestoraiseethical

questionsandconcernsithoutfearofretaliation.nderthe

ComplianceIssuesReportingMethodsinitiativeimplementedby

theGroup,employeesareencouragedtoraiseissuesintherst

instanceiththeirdirectlinemanager.herearetimes,hoever,

hentheserstlinesofcommunicationareinsufcient,for

exampleheretheemployeeperceivesaconictofinterest.

Inthese instances,employeesareencouraged touse the

Group’sglobalComplianceHotline(consistentithlocalla)

toreportcomplianceissues,concerns,violationsorsuspected

violationsoflaorcompanypolicy.heComplianceHotlinehas

beenformallydeployedin114countriesandisavailableviaa

multilingualebinterfacein12languagesandviatelephoneaccessinmorethan120languages.heCompanyhasa“no

retaliation”policy,hichspecicallyprohibitsadverseaction

againstemployeeshoreportingoodfaithsuspectedviolations

oflaorcompanypolicy.



5.3Compliance 22


5.5 Complance governance structure 24









Glossary 107■■■■■■■■■■■■■■■■



25

Alcatel-Lucentendeavorstoensurethateachcriticalcomplianceprogramarea isfully integratedinto businessoperations,

effectivelymanagedandconsistentinqualityacrosstheGroup.oachievethis,expertsinparticularcompliancesubjectsworkwithbusinesspeople,assistedbythefceofBusinessConduct,toreviewcomplianceprogramareasonanongoingbasisandformallyat leastonceannually.hese reviewsensurethatcomplianceprogramsarerobustandreecttheevolvingnatureoftheGroup’sbusinessandapplicablerequirements.Inputstothecontinuousimprovementprocessincludeexperiencefrompriorauditcycles,thecomplianceriskassessmentprocessandspeciccomplianceissuesthathavebeenencountered.

Inaddition,expertsinparticularcompliancesubjectsworkwithpersonnelfromeachperatingUnittoevaluateimplementationofthecomplianceprogram.Ifgapsandassociatedriskfactors

areidentied,peratingUnitComplianceLeadersandtheirrespectiveComplianceWorkGroupsareresponsibleforworkingwiththerelevantcomplianceexpertstodevelop,implementandmonitorremedialaction.

Detailed risk mitigation plans, alignedwith the remedialcomplianceprograms,aredevelopedforeachperatingUnitComplianceWorkGroup.oensurefullalignmentacrosstheGroup,eachoperatingunitcomplianceriskassessmentmustbereviewedandapprovedbyamemberofAlcatel-Lucentseniormanagementonanannualbasis.Inaddition,consolidatedriskassessmentresultsaresharedwiththeAlcatel-Lucentthics&ComplianceCouncilandseniormanagement,asappropriate.

peratingUnitComplianceLeadersarerequiredtoprovideperiodicstatusreportsonactionplanimplementationtothe

fceofBusinessConduct.hisinformation,alongwiththeriskassessment,actionplansandrelatedresourcematerialsprovidedbyCompliancerogramwners,arepostedontheperatingUnit/CompliancerogramwnerCollaborationShareointwebsite.hisensuresstakeholderaccesstoimportantresourceinformationandongoingconnectivitybetweenoperatingunitsandcomplianceexperts.

5.6 CoMpliAnCe risk AssessMent,enhAnCeMent And MitigAtion


Controversies

As part of its policy supporting transparency,

Alcatel-Lucent keeps stakeholders up-to-date on various

controversies involving the Group. The controversies

section of our website provides information on legal

proceedings and ethical business practices issues

in which Alcatel-Lucent is involved.

Read more



5.3Compliance 22



5.6 Complance Rk Aement, 25

Enancement and Mtaton 5.7Educationandraining 26







Glossary 107■■■■■■■■■■■■■■■■

C C C



26

urcompliancetrainingprogramisdesignedbothtoeducateemployeesabouttheirpersonalandprofessionalresponsibilities

undertheCodeofConductandtoinstillanethicalcultureandacommitmenttothehighestlevelsofbusinessconduct.hetrainingprogramprovidesgeneralbackgroundcoveringalloftheGroup’smajorcomplianceareastoallemployeesandspecializedtrainingtotargetaudiencesbasedonjobfunction.rainingcoursesareupdatedannuallyorasneeded.AlltrainingandrelatedcommunicationsaredocumentedonaCompliancerainingoadmap,whichisalsoupdatedregularly.

heGrouphasheighteneditsfocusonmiddlemanagementinrecentyearsthroughenhancedcommunicationsandtargetedtrainingdesignedtoenablesupervisorstobemoreeffectivecompliancerolemodels,andethicalleaders.

5.7.1 AntCorrupton Trann

Formal training on Anti-Corruption laws, policies andrequirementsisdeliveredoverthewebandthroughin-personsessions.Amandatoryweb-basedthics&Integrityverviewcourse(deployedgloballyin July2010) includes anentiresectiononAnti-Corruption.hecourseincludes:

•Denitionofbribery.

•ssentialpoliciesandprocedures(AgentsandConsultants;ravel,Lodging,Meals,ntertainmentandGifts;CharitableContributions; hird artyScreeningand Selection; androcurementandSubcontracting).

•Informationdetailingthevariousvehiclesavailabletoreportpotentialviolations.

•Additionalresourceinformationhighlightingwheretogoforassistance.

Inadditiontotheglobaltrainingreferencedabove,targetedtraining on Anti-Corruption wasupdated and deployedin2010toatargetaudienceofover25,000employees,includingcorporateexecutivesandemployeeswhointeractorinterfacedirectlyorindirectlywithexternalparties.

In-persontrainingdeliveredbyexpertsinparticularcompliancesubjects servesas a complementto web-based courses.

In-persontrainingsessionsaretargetedtopotentialriskareasidentiedbytheperatingUnitsthroughthecomplianceriskassessmentprocess.

5.7.2 internal Communcaton

ManyoftheGroup’smost-importantcompliancemessagestoemployees–includingcompliancealerts,messagesandarticles–arepostedandavailableontheGroup’sintranetaswellasthroughthefceofBusinessConductwebsite.Animportantcomponentinthecommunicationeffort,thefceofBusinessConductwebsiteconsolidatesessentialcomplianceandbusinessconductresourcesinonecentrallocation.hefceofBusiness

Conductmonitorsthenumberofvisitstothesiteonamonthlybasisthroughaninternaltrackingsystem.In2010,therewere21,508visitstotheBCWebsite.

5.7 eduCAtion And trAining


112,000totalemployeetrainingenrollments/

certicationsin2010.

84% ofemployeescompletedthics&Integrityverview

trainingasoftheendof2010,withactivitiesongoingtodrivecompletionofthis requirementacrossthe totalGrouppopulationof morethan 79,000.

5.7.1 AntCorrupton Trann 26

5.7.2 internal Communcaton 26 ■■■■■■■■■■■■■■■■



5.3Compliance 22




EnhancementandMitigation5.7 Educaton and Trann 26







Glossary 107■■■■■■■■■■■■■■■■

5 EThiCs & CMPLiANCE



27

Alcatel-Lucent participates innumerous cooperativeAnti-Corruptioninitiatives to contribute to an ethicalbusiness

environmentandhelpuskeepabreastofevolvingrequirementsandbest practices.In addition, Alcatel-Lucenthastaken aleadershiproleinthethicsandComplianceglobalarena.

5.8.1 World Economc forum

Alcatel-Lucent’s BenVerwaayenwasthe firstCin theinformationandcommunicationstechnologysectorto signtheWorldconomicForum’sartneringAgainstCorruptionInitiative(ACI).ACIbringstogethercompaniesfromacrossindustriesandregionstoghtbriberyandcorruption.heinitiativeengagesover150chiefexecutivesignatoriesintheimplementationofazero-tolerancepolicytowardsbriberyand

aneffectiveinternalanti-corruptionprogram.ACIisamulti-stakeholderinitiativethatworkswithorganizationsincluding:heBaselInstituteonGovernance;heInternationalChamberofCommerce(ICC);herganizationforconomicCooperationandDevelopment(CD);heUnitedNationsGlobalCompact(GC);heMultilateralDevelopmentBanksandselectedinternationalnancialinstitutions.

5.8.2 global Compact

AsamemberoftheUNGlobalCompact,wearecommittedtorespectthe10GlobalCompactprinciples,whichcoverhumanrights,laborstandards,caringfortheenvironmentandanti-corruption.rinciple10reads:“Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery.”

5.8.3 indutr Aocaton

Alcatel-LucentisrepresentedontheBoardofDirectorsofthethics&CompliancefficerAssociation(CA).heCAistheleadingglobalmember-drivenassociationexclusivelyforindividualsresponsiblefortheirorganization’sethics,complianceandbusinessconductprograms.

Likewise,theGroupisanactivememberintheSocietyofCorporateComplianceandthics(SCC),anonprot,individualmembershipassociationwhichprovidesresourcesforethicsandcomplianceprofessionalsfromvariousindustries.

5.8 internAtionAl initiAtives


UN human Rt and uneDlemma forumAlcatel-Lucentislistedamongthegoodpracticecasestudies

intheHumanRightsandBusinessDilemmaForumasaresultofourphase-outoftheuseofexternalagentsand

consultants,andourtransparentapproachtopastallegations

oncorruption andothercomplianceissuesthroughthe

‘controversies’sectiononourebsite.

Read more

resist

Alcatel-Lucent was the only telecommunications

supplier among the 27 companies and organizationsthat contributed to the latest edition of the RESIST

guide, published in June 2010. RESIST, an acronym for

Resisting Extortion and Solicitation in International

Transactions, is a training tool published by the

International Chamber of Commerce, Transparency

International, the United Nations and the World

Economic Forum. Designed as a practical tool for

companies of all sizes, the RESIST guide helps companies

train employees to respond appropriately to bribery

solicitations.

Read more



5.3Compliance 22





5.8 internatonal intatve 27 ■■■■■■■■■■■■■■■■






Glossary 107■■■■■■■■■■■■■■■■

5.8.1 World Economc forum 27

5.8.2 global Compact 27

5.8.3 indutr Aocaton 27 ■■■■■■■■■■■■■■■■





1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19

6. stakeolder 28 7.Environment 41 8.OurPeople 66


Glossary 107■■■■■■■■■■■■■■■■ stAkeholders

6.1ResponsibilitytoStakeholders 29

6.2nitedationsGlobalCompact 30

6.3worldEconomicForum 31

6.4GlobaleSustainability 32Initiative(GeSI)

6.5CustomerRelationship 33

6.6InnovationManagement 34 6.7EnvironmentalInnovation 35

6.8SocialInnovation 36

6.9DigitalInclusion 37

6.10PublicAffairs 38

6.11EmployeeDialogue 39

6.12InvestorRelations 40 ■■■■■■■■■■■■■■■■

6 sTAEhLDERs



29

StakeholderdialogueisacornerstoneoftheGroup’sapproachtocorporateresponsibility. Itmeanswe needto takeinto

accountthelegitimateconcernsandprioritiesofthosewhoholdastakeintheGroup’scurrentandfutureactivities.Fromemployeesandsupplierstocustomers,shareholdersandlocalcommunitiesworldwide,we recognizeour responsibilitiesto

informstakeholdersofoursuccesses,challengesandplansforthefutureandtoexchangecompellingideasandperspectives.

Asaninformationandcommunicationstechnologyleader,we

prideourselvesonmakingextensiveuseofsocialnetworkingtoolstodialoguewithkeystakeholders.Forexample,withouremployees,in2010,welaunchedngage,Alcatel-Lucent’ssocialandcollaborativeplatformenablingourpeopletodialogueandshareinsightsinrealtime.Wehavealsodevelopedanactive

corporateblogusedregularlybymorethanhalfofouremployees,

andalsowithexternalstakeholders.heGroupisalsoactiveonoutsidemediasuchaswitter,heBlogandYouube.

Hereareafewexamplesofhowwefulllstakeholderresponsibilities:

• WeareprofoundlyengagedintheWorldconomicForum’s

effortstoaddresscriticalglobalchallengesto“improvethestateoftheworld”.

• Internallyandthroughnumerousindustrypartnershipssuchas

GeSI,wearecontributingtothebattleagainstclimatechange.

• Weareworkingwithpublicandprivatebodiestopromoteandsupporteffortstoprovideuniversalaccesstomodern

communicationsservicesaspartoftheinfrastructurenecessaryforeconomicandsocialdevelopment.

• Weregularlysurveycustomerstomeasureourperformance

againsttheirexpectations.

• Weprovide a steadystream ofup-to-date information toshareholdersandprospectiveinvestorscoveringtheGroup’s

businessactivitiesandstrategies.

• Weengageinregularexchangeswithtradeunionsandotheremployeerepresentativegroups.

• Wepartnerwithpolicymakers,regulatoryauthoritiesandotherinstitutionstofosterpublicandprivateinvestmentinthedigitalandbroadbandindustries.

6.1 responsibility to stAkeholders

6. sTAEhLDERs29

6.1 Reponblt to stakeolder 29















Glossary 107■■■■■■■■■■■■■■■■


gm/ ra

em

Aa/ Ma

Cm

CorporateResponsibilityStakeholders

ngo

lca A

sa/i

C sc

u

s/scac

Alcatel-Lucentbasestheselectionofitsstakeholdersonmerit,reputationandtheirabilitytohelpthecompanyachieveitsbusinessandCorporateesponsibilityobjectives.Allmustabidebyethicalstandardsandbusinesspractices.Inadditiontheyare

chosenaccordingtotheirreputationforservice,integrity,socialresponsibilityandcorporatevalues.

6 sTAEhLDERsALCATEL LUCENT 2010



30

t t pc u na ga CmacAlcatel-LucentisalongstandingsignatoryoftheUnitedNations

GlobalCompact,aninternationalinitiativethatbringscompaniestogetherwithUNagencies,labourandcommunitygroupstosupportuniversalenvironmental,ethicalandsocialprinciples.WearecommittedtointegratingthetenGlobalCompactprinciples

intoeverythingwedo.

Launchedin2000,theUnitedNationsGlobalCompactisbothap olicyplatformand a practicalframework forcompanies

committedtosustainabilityandresponsiblebusinesspractices.Itseekstoalignbusinessoperationsandstrategieseverywherewiththeseprinciples.heGlobalCompactistheworld’slargestcorporate citizenship initiative, withover 6,000 companiesbelongingtothenetwork.

6.2 united nAtions globAl CoMpACt

6. sTAEhLDERs

pc nm eam pa

human rt

1 osu pportandre specttheprot ectionofinte rnat iona ll yprocl aime dhum anright s. 8,68,70,73,86-87

2 omakesurethatwearenotcomplicitinhumanrightsabuses. 7,68,71,86-87

Labor standard

3 oupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining. 8,39,68-70

4 osupporttheeliminationofallformsofforcedandcompulsorylabor. 68,86-87

5 osupporttheeffectiveabolitionofchildlabor. 68,86-87

6 o s up po rt t he e li mi na ti on o f di sc ri mi na ti on i n re sp ec t to e mp lo ym en t an d oc cu pa ti on . 5 , 68 , 71 -7 4, 8 6- 87 , 95

Envronment

7 osu pportaprecau tionaryapproa cht oenvironm enta lchal le nges. 4,7,32,42-47,55,57,59-60,86-91

8 oundertakeinitiativestopromotegreaterenvironmentalresponsibility.4,5,7,32,35,42,45,46-47,49-50,

55-56,58-59,62-65,86-87,90-97

9 oencouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.4,5,7,9,34,35,42,48,49,

51,53-54,61,64,66

AntCorrupton 10 owork againstcorruptioninallitsforms,includingextortionandb ribery. 4,5,7,8,20- 24, 27, 86-87

Read more, please visit: the pages above for Alcatel-Lucent reference to the UN Global Compact Principles.


6.2 Unted Naton global Compact 30














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Alcatel-Lucent’sStrategicartnershipwiththeWorldconomicForum isone ofthe

cornerstonesof theGroup’sapproachtocorporateresponsibility.urgoalistocommitourmostseniorexecutivesandexpertstoplayaleadingrole,inclosecollaborationwithour

customers,partnersandmajorstakeholders,toimprovethestateoftheworld.

Alcatel-Lucentexecutivesandexpertshave

focusedtheirparticipationandresourcesonthreecriticalworldchallenges:

• hetransformationtodigitaleconomies

• uralinclusion

• Climatechange

Enaement

In2010,seniorGroupexecutivesparticipatedi n n u m er o us W F m e e ti n g s i n D a vo s ,Switzerland, LatinAmerica, urope,the

Middleast,astAsia,IndiaandChina.

Acalc c wef a a 2010 c:

• heWFFoundationBoard:BenVerwaayenwaselectedinAugust2010.

• BenVerwaayenisanewmemberoftheGlobalGenderarityGroupInitiativefor

2011-12(seepage72).

• he InternationalBusiness Council:BenVerwaayenisamemberofthexecutiveCommittee.

• A l c at e l- L u ce n t i s a s i gn a to r y t o t h eartneringAgainstCorruption Initiative( ACI) and isrepresented byBarbaraLandmann,ChiefCompliancefcerand

SV,Intellectualroperty & Standards.(seepage27).

• esisting xtortionand Solicitation inInternationalransactions(SIS):Ajoint

initiativebytheWF,InternationalChamberofCommerce,ransparencyInternationalandtheU.N.,Alcatel-Lucentcontributedtoananti-corruptiontrainingtool(seepage27).

• heelecomIndustryGlobalAgendaCouncil,ofwhichajeevSingh-Molares,residentAlcatel-LucentAsia-acic(AAC),isViceChair.In 2010Alcatel-Lucentdeveloped

andleda studywiththeWF GAConUbiquitousAccessby2015.

• heGlobaledesignInitiativewhereBellLabsViceresidentforesearchGee ittenhouse

representedthe Greenouch™Consortium.Greenouch™ wasrecognizedby WF asa“Best ractice” onSustainability attheirDohaconferenceinMay2010.

• Alcatel-Lucentisa memberofthe LowC a rb o n a s k F o rc e a n d t h e I C f o rSustainabilityInitiative.

fm, Acalc a wef cmm:

• echnologyioneers:BellLabsresidentJ e on g K i m i s a m e mb e r o f t h e W F

SelectionJury.

• heScienceAdvisoryCouncil:JeongKimisamember.

• he Young Global Leaders Community:

StephenCarter,ChiefMarketing,StrategyCommunications fficer,and xecutiveVice resident of Alcatel-Lucent, is amember.

• heGlobalGrowthCompanies:Ben Verwaayena n d A d ol f o H e r na n d ez , r e si d en t o fAlcatel-Lucent urope,Middle ast andAfrica ( MA), mentoredhigh-growth

companiesinbothBrusselsandNewDelhiin2010.

6.3 world eConoMiC foruM

6. sTAEhLDERs

Ben Verwaayen, Alcatel-Lucent CEOthe2011WFmeetinginDavos.

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6.3 World Economc forum 31













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32

Alcatel-LucentisafoundingmemberoftheGlobaleSustainabilityInitiative(GeSI),aninternationalstrategicpartnershipofinformation

andcommunicationstechnology(IC )companies andindustryassociationscommittedto creatingand promotingtechnologiesandpracticesthatfostereconomic,environmentalandsocialsustainability,anddriveeconomicgrowthandproductivity.

WithinGeSI,Alcatel-Lucenthastakenaleadershiproleinthreeareas:

1. WorkingincollaborationwithotherGeSImembers,Alcatel-LucentisprovidingindustryexpertisefortheforthcomingICsectorguidancetotheGreenhouseGas(GHG)rotocolroductAccountingandeportingStandard.Byfocusingonmethodologies,

processandmetricsusedtoquantifytheenablingeffectofIC,Alcatel-Lucentwillplayaleadingroleinthetechnicalworkinggroupresponsiblefordevelopingtheguidanceandwillleadtheeffortatthesteeringcommitteelevelaswell.

hisexpertisecomesfromBellLabs,specicallyintheproductenvironmentalengineeringandnetworktransformationarea.Forexample,ourexpertsarehelpingtomodeltheamountofenergyandassociatedcarbonemissionsittakestocommunicate

informationacrossthenetwork.

hisworksubstantiatesthemessagefromGeSI’s sMArt 2020ea a lca screportregardingthepotential

ofICtoenableothersectorstoreducetheircarbonemissions.Accordingto sMArt 2020,theICsectorasawholeisdirectlyresponsibleforonlyabout2%oftotalgreenhousegas(GHG)emissionsbutcansubstantiallyhelpreduceGHGemissionsfrom

theremaining98%.

heguidancewillbepublishedasanICSectorSupplementtotheGHGrotocolroductAccountingandeportingStandard–

partoftheGreenhouseGasrotocolInitiative,whichisthemostwidelyusedglobalaccountingandreportingstandardforcorporateGHGemissions.

2. AsaparticipantinallthreeworkinggroupsoftheIC4Forum,theGroupishelpingdevelopframeworksforapplying

methodologiesandtargetstorealizetheenablingeffect,engagingwithothersectorsandmonitoringUpolicydevelopmentsthathelporhinderintheseareas(seepage61).

3. heGroupco-chairsGeSI’sCommunicationsWorkingGroup,

whichdisseminateskeysustainabilitymessages,includingsupplychain,energyefciency,publicpolicy,e-waste,andclimatechangeissues.

GeSI’s landmark sMArt 2020 report, published in 2008,positionedICasanenablerintheglobalcampaigntoaddressclimatechangebyshowinghowtheICsectorcouldmakeitpossibleforothersectorstoreducetheircarbonemissions.hereportspurredindustry,regulatorsandcustomerstoexamine

howIC-drivenor-enabledchangescouldaffectbusinessesandcostsrelatedtomitigatingclimatechange.

nablingtheCarboneductionotentialofIC:AnAssessment

Methodology, theGeSI followup studypublishedin 2010,demonstrated how a new industry-tested, IU-endorsed

methodologycouldbe usedto measure theimpact ofICapplications.Sixcasestudiessupportthereportndingsandrecommendations.GeSIplansfurtherdisseminationofthestudyandmorebroadly,themessageofsustainabilitythroughIC

innovation.

6.4 globAl sustAinAbility initiAtive gsi

6. sTAEhLDERs




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33

t Acalc Cm s pam ma g m cm

ca. t a a am cm .achtargetsdifferentaudiencesandaimsatevaluatingcustomer satisfactionwith theirrelationshipwith Alcatel-Lucent,product,technicalsupport,repairservicesandproject

performance.

SurveysandevaluationsareperformedtogaininsightintoAlcatel-Lucent’sstrengthsandweaknessesanddrivecorrectiveactions.

hesurveysandevaluationsalsoprovideanopportunityforaccountteamstoengageinfollow-updiscussionswithcustomerstoenhancetherelationshipandtodeveloprevenueopportunities.Amongthesesurveys,thetwiceannualelationshipsurveycoversthebroadspectrumofcustomerexperienceandtargets

keydecisionmakers.Itquestionsourcustomersonkeytopicssuchasoverallsatisfaction,likelihoodtorecommend,likelihoodtocontinuetobuyandlikelihoodtoselectagainifforthersttime.

AnanalysisofsurveyresultsenablesAlcatel-Lucentmanagementtounderstandwhatisworking,aswellaswhethercorrectiveactionplans arerequired. w , cc aca a maca ac a acm .

Multipleorganizationsareinvolvedwiththesegmentationandanalysisofthedatareturnedbythesurveys.Manyoftheinsights

gainedareacteduponbytheregional,productorservicesorganizationsclosesttothespeciccustomer,productorserviceinvolved.Additionallythereisa globalqualityandcustomersatisfactionorganization headedby theAlcatel-LucentV,

residentQualityandCustomerCarewhoreportsdirectlytotheC.hecentralorganizationexaminesallregionsandproductsforsystemicareasneedingimprovement.Wherenecessary,cross-organizationalqualityimprovementprogramsareenactedusing

DMAIC(Dene,Measure,Analyze,Improve,andControl)SixSigmamethodology.

f a 2011, Acalc’ a ac 45% 55% ( 55% = bCa) Cm

ra a pc .WearealsocommittedtoestablishingaBusinessartnersurveyin2011,toimproveour

relationshipandeffectivenesswiththem,sothattogetherwewillbetterserveourcustomers.argetsforcustomersatisfactionscoresarelefttothediscretionofthevariousorganizations.hisallowstheteamstofocustheirresourcesandeffortsonareas

mostimportanttothemandallowsfortheknownvariationinaglobalenvironmentwhereculturedirectlyimpactsscores.Ascoreof5intheU.S.,forexample,hasadistinctlydifferentmeaningthanthesamescoreinAsia-acicorurope,MiddleastandAfrica.

Allcustomersreceiveafollow-upcommunicationafterthesurveysarecomplete.hesefollow-upcontacts,handledbyourAccounteams,cantaketheformofmeetingnotes,emails,presentationsor

similaritems.Face-to-facecustomermeetingsarehighlyencouraged.

6.5 CustoMer relAtionship

6. sTAEhLDERs

indiCAtors ColleCted internAlly

Indicators collected internally to support ongoing

improvement programs include:

• The percentage of regional analysis reports complete:

number of analysis reports submitted/number of regions.

• The percentage of product division analysis reports

complete: number of analysis reports submitted/

number of product divisions.

• The percentage of account analysis reports complete:

number of analysis reports submitted/number of Key

Accounts and customers with 20 or more respondents.

• The percentage of account communications: number of

accounts with evidence of follow-up within 120 days

of customer satisfaction reporting system database

reopening/number of accounts surveyed.

• The percentage of improvement or opportunity

requests or corrective action requests for each alert or

call back request/number of alerts for all surveys.





6.5 Cutomer Relatonp 33











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ne of the world’s mostrenowned centers of technologyinnovation,BellLabsconductsresearchwithalongtermhorizon

andmaintainsanongoingcommitmenttogeneratingdisruptiveinnovations.

Inadditiontoengagingitsscientistsinthepursuitofbreakthrough

innovations,BellLabsrecognizesthatAlcatel-Lucent’semployeesrepresentarichsourceofnovelideaswiththepotentialtosustaintheGroup’ssuccessoverthelongterm.otapintothatsourceandrealizeitsfullpotential,BellLabsplaysanactiveroleinfostering

andrecognizingthespiritofinnovationandencouragingafreeowofideasacrossthecompany.

BellLabsprogramsrecognizeoutstandinginnovationandtechnical

excellencedemonstratedbyindividualsandteamsinour&Dandengineeringcommunities.heBellLabs’DistinguishedMemberofechnicalStaff(DMS)program,whichrecognizesindividualswhohavemadeexceptionalcontributionsoverasustainedperiodoftime,wasadoptedbyAlcatel-Lucent’sbroaderresearchand

developmentcommunityin2010.

By conceivingnew andimprovedmethods forsupportinginnovativeideasandthengainingacceptanceandadoptionfor

thoseideasinstandardsorganizations,BellLabsIntellectualroperty&Standards(I&S)organizationcontributestoindustryadvancementandtotheglobaleconomy.oenrichandprotecttheGroup’ssubstantialintellectualpropertyportfolio,I&Sdeveloped

anddeployedanInventorsortaltoolin2010thatitcanbeusedtotrackthepatentapplicationprocessasaninventionmovesfrominitialsubmissiontonalissuance.

rcachyear,manyBellLabsresearchersandalumniarerecognizedfortheiroutstandingtechnicalachievementsbyorganizations

a r ou n d t h e w o rl d s u ch a s I a n d S A . F o ll ow i ng a r erepresentativeexamplesin2010:

ga tcm b maa t 100 tcm

recognizedGeeittenhouseBellLabsesearchViceresidentandChairmanoftheGreenouch™consortium,asoneofthetelecomindustry’s100mostpowerfulpeopleworldwide.

Mit tc r’ tr35namedBellLabspticalesearchDomaintechnicalstaffmemberGabrielCharlet,oneoftheworld’s

topinnovatorsundertheageof35forhisresearchinopticalnetworkingsystemsbasedonwavelengthdivisionmultiplexing(WDM).ieee pc sc/osA 2010 J ta AarecognizedandyGiles,headofBellLabsinSeoul,Korea,forhisseminal

contributionstoadvancedlightwavecommunications.2010 ieee ec e. sm AawasgiventoeinaldoValenzuela,BellLabsWirelessAccessesearchDirector,forhispioneeringcontributions to multi-antenna systems and microwave

propagation.

ia AaBellLabsregularlyearnsrecognitionforoutstandinginnovations.In2010,innovationsrecognizedincluded:

• dsl pam M:Named“BroadbandInnovationoftheYear,”

BellLabsreceivedtheBroadbandInfoVisionAwardforitsDSLhantomModebreakthrough.

• ftth Cc’ ia Aa:BellLabs10Ggigabitpassiveopticalnetwork(GN)prototypewon theawardin the

“echnologicalandechnicalInnovation”category.

6.6 innovAtion MAnAgeMent

6. sTAEhLDERs

entrepreneuriAlboot CAMp progrAM

The ea b Cam am gives employees

worldwide the opportunity to propose ideas for new

products or services, as well as improvements to

existing products or services. Proposals are reviewedby a panel of experts drawn from inside and outside

the Group. Teams are formed around those ideas that

are judged to have the greatest potential. The teams

then work with experts to develop business plans and

present them to a cross discipline panel to be considered

for integration into a product plan or to receive

funding for further development. In addition to serving

as a potential source of revenue, Boot Camps offer

employees a great learning opportunity and rewarding

experience.






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neofthepillarsofAlcatel-Lucent’sstrategyisenablingcustomerstoreducetheircarbonemissions.Asdescribedinthisreport’s

chapterontheenvironment,thecompanyiscommittedto:

• educingitsowncarbonfootprint.

• Helpingcustomersdirectlycutenergyconsumptionthrough

moreenergy-efcientcommunicationsproductsandsolutionsanduseofalternativeenergysources.

• HelpingcustomersindirectlyreducecarbonemissionsthrougharangeofICapplications.

BellLabshasestablishedabroadthematicresearchfocusongreentechnologiesthatincludes:

• Conductingfundamentalresearchonenergyefcientnetworks

• Introducinginnovationsthatwillacceleratesustainablenetworkdeploymentinthemarket.

• Incorporatingrenewableenergysolutionsintotheproduct

portfolio.

• nablingenergyefciencyinotherindustrialsectors.

urresearchportfolioaddressesaspectsofenergyefcient

networking,thatincludewirelessandxedaccess,routingandswitching,opticaltransport,newprotocolsandcodingschemes,applicationsandcomponents.

Convincedthatnoonecompanycansuccessfullycombatclimatechangeonitsown,Alcatel-Lucentisarmbelieverinopen,collaborative&D.odriveinnovativeenvironmentalresearch,weleadorparticipateinnumerouscollaborativeefforts,suchas:gtc™aglobalresearchconsortiumdedicatedtoachievingadramaticimprovementintheenergyefciencyofinformationandcommunicationstechnology(IC)networks.olearnmore,pleaseseepage63.

eArth,aconsortiumof15leadingtelecommunicationsserviceproviders,componentandinfrastructurevendorsandacademicinstitutionsincludesBellLabs,whosegoalistoachievea50%reductionintheenergyconsumptionof4thGeneration(4G)mobilewirelesscommunicationnetworkswithintwo-and-a-halfyears.olearnmore,pleaseseepage64.

Ca ac am ctheIrishCentreforScience,ngineering&echnology(CS),

Australia’sCentrefornergy-fcientelecommunications(C)andthe Gachonnergy esearchInstitute(GI) ofKorea’sKyungwonUniversity.olearnmore,pleaseseepage64.

6.7 environMentAl innovAtion

6. sTAEhLDERs

Local ntatve:

Arc retane Atlantquet ma a mm- (sMe)acca a, Alcatel-Lucent and FranceelecomlaunchedtheArcBretagneAtlantique(ABA)programinFrance’sBrittanyandLoireregionsin2010.hetwosponsorcompaniesprovideSMsandresearchlabswithaccesstoresourcesandinfrastructureattheirfacilitiesintheregions,suchastestbenchesorspecializedexpertise.Forexample,acompanythatdevelopssoftwaretomanageinformationoverloadswasabletoevaluatetheperformanceofitskeyproductovera3Gnetwork,thankstotheimplementationofamobileplatformatanearbyAlcatel-Lucentsite.

solar Power stem at ell Lab headquarterAlcatel-Lucentin conjunctionwithSunowerCorp.andCondisonDevelopmentinitiatedinstallationofa1.2-megawattsolarpowersystematthecompany’sBellLabsheadquarterscampusinMurrayHill,N.J.BellLabspioneeredthedevelopmentofsolarpowertechnology,initiallycreatingsolarpanelsabletosupporttelephoneserviceforAmericanfarmerslivingofftheelectricitygrid.






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6.8 soCiAl innovAtion

Accesstomoderncommunicationsservicesisacriticalpreconditionforsustainedeconomicgrowthandsocialdevelopment.Inparticular,

providingaccesstothosewhoareunderservedornotservedatallcangeneratebroadsocialandeconomicbenetsandhaveanimpactmatchedbyfewotherinnovations.Alcatel-Lucentiscommittedtothegoalofachievingubiquitousaccessandisdeliveringonthat

commitmentbydevelopingnewproducts,servicesandsolutionsaswellasengaginginrelatedinitiatives(pleaseseepage37).

urbreakthroughlightadio™solution,forexample,holdsthe

potentialtogreatlyexpandwirelessandbroadbandcoveragetoeventhemostremoteareas,includingthosewithoutaccesstoanelectricitygrid.olearnmore,seepage48.

VillageNetrepresentsanotherinnovativeaccesstechniquethatwillbringlowcostdatanetworkingtopeopleinruralareasindevelopingcountries.

DevelopedbyBellLabsIndiaandsuccessfullydemonstratedinlocationsaroundthecityofBangalore,VillageNetcanbringcost-efcientbroadbandnetworkaccesstounderservedareasbyturningWiFiintoahighbandwidthpoint-to-pointlinkwitha20kilometer(12mile)range.hedistancecoveredcanbeextended

withamulti-hopmeshnetwork.

M uaIn2010BellLabsundertookastudytounderstandtheimpactofubiquitousnetworkaccessoneconomicdevelopment.hestudypresentsauniqueBootstrapModelthatvalidateshowuptakeofmobileservicespreadsthroughcommunities,andinsodoing

providesameansforgovernmentsandinvestmentagenciestogaugetheeffectthatvariousbusinessmodelswillhaveontechnologyadoptionanddeploymentaswellasdeterminethebenetsthatwillresult.

he researchconcluded thatrapid andubiquitousadoptiondependsonthreeelements:

• iac:Newbusinessandgreentechnologymodelslowercostsandaccelerateuniversality.

• Aca:elevant,broadlydeployedapplicationsaccelerateeconomicandsocialgrowth.

• lc:Mobiledevicesandservicesshouldcostlessthan5%

ofincome.

heresearchresultswerepresentedinDubaiinNovember2010,inconjunctionwiththeWorldconomicForum’sGlobalAgenda

Council,whosegoalistomakeitpossibleforanadditional5 billionpeopletogainaccesstocommunicationsnetworksby2015.

rac he Casensaresearchproject, carried outby BellLabs incooperationwith In-Hamand the VrijeUniversiteitBrusselmakesinnovativeuse ofInformation andCommunicationsechnologies(IC)toimprovethelivesofpeopleintheearly

stagesofdementia.hesolutionthatresultedfromtheprojectusessensors,screensandsmartdevicesinstalledinthehometomonitorthebehaviourofdementiasufferersandprovidethemwithreminderswhen,forexample,curtainsorblindsneedtobeopenedorlightsneedtobeturnedoff.

M wa sc sm wa icaecmc AcInmanydevelopingeconomiesaroundtheworldaccesstonancialinfrastructureisstilldifcultornon-existent.Accesstomobilephones,ontheotherhand,isnearlyubiquitous.heAlcatel-LucentVenturesMobileWalletServicehasanofferingspecicallytailored

totheneedsandtechnologyofdevelopingeconomies.Itputsthepowerofadvancednancialservicesontoanyone’smobilephonewithacomprehensivemobilepaymentframeworkandafullsuiteofmobilepaymentapplications.







6.8 socal innovaton 36









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ALCATEL-LUCENT 2010 6. sTAEhLDERs



37

ealizingthepotentialofaconnectedworldplaysanintegralpartateverystageintheAlcatel-Lucentstory.Forexample,inourrelationswithpublicauthoritieseverywhere,weconsistently

promotepoliciesthatenablewirelineconnectivitytoall,withthehighestpossiblebandwidth,usingstate-of-the-art,futureproof,investment-wisetechnologies.Wealsoproposeandsupportspectrum-efciencypolicies,toofferthewidestpossiblewireless

accesstopeopleeverywhereatthelowestpossiblecost.Seepage38.

h la n™: ua Acc paAlcatel-Lucentproducts, servicesand solutionsexpand andenhanceaccesstodigitalnetworks.Indeed,universalaccessisoneofthekeypillarsofourHighLeverageNetwork™architecture.Formoreinformation,seepage45.uruniversalacce sssolutions

areengineeredforxedandmobilebroadbandaccess.heyusethelatestDSL,GN,ber,smallcell(Femto),2G,3Gand4GLtechnologies.Andtheyprovideembeddednetworkintelligencetodeliverwirelessallaroundwiththehighestqualityofexperience

(Qo)regardlessofthedevice,locationandon-the-moveinthemostadvancedmarketsandinemergingmarketseverywhere.

6.9 digitAl inClusion

Wrele innovatonOurinnovativelightRadio™solutionpromisesgreener,simpler,

loercostmobilenetorks.Byreducingthecellsitetojust

theantennaandleveragingfutureadvancesinbackhaul

andcompressiontechniques,thistechnologyilleventually

enabletheeasycreationofbroadbandcoveragevirtually

anyherethereispoer(electricity,sun,ind).Formore

information,pleaseseepage48.

Developmentofso-calledLong-termEvolution(LE)ireless

netorksforruralpopulationshasproducedrevolutionary

energy-efcientradiodesigns.heorkillhelpeliminate

thebroadbandblack-spotshichaffectupto10%ofK

households–ensuringthatpopulationsinmountainousregions

suchaswestwalescangetconnected.

Acce or AllAlcatel-Lucenthashelpedexcludedpopulationsacrosstheworldgainaccesstoinformationtechnology:• InYunnanprovince,wesetupanICcentersothat

ChineseandBritishschoolchildrencouldexchangeviews.

• InMadrid,westartedadigitalliteracyschoolfor60underprivilegedyoungpeople,alsoprovidingaccessto300peoplewithphysicalormentaldisabilities.

• WedevelopedanICcurriculuminBarcelonaforyoungpeopleriskingsocialexclusion.

• InortugalweprovideItrainingtotheelderly.• InKortrijk,Belgiumwestartedalivinglabproject

wherecitizensintwounderprivilegedareascangetsuchbroadbandservicesasmultimedia,e-healthandlocalgovernmentservices.

Ben Verwaayen, Alcatel-Lucent CEO

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6.9 Dtal incluon 37








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38

6.10 publiC AffAirs

heAlcatel-LucentublicAffairsteaminterfaceswithpolicymakers,regulatoryauthoritiesandotherinstitutions.heteam’s

goalistocreateafavorablepolitical,nancial,legalandregulatoryenvironmentthatfosterspublicandprivateinvestmentinthedigitalandbroadbandindustries.ublicaffairsinitiativesfocusinparticularoninnovationsthatsupportsustainableeconomic

growth,competitiveness,socialwelfareandqualityoflife.

ublicAffairshelpstoensuretheshapingandsharingofbestpracticesinarangeofInternetandon-lineareas.heseinclude

supportforaselfsustainableInternet,includingnetneutrality,onlinetrust,dataprivacyandcontentprotection.

urpublicaffairsactivitiesalsosupporttheGroup’scorporate

responsibilitycommitmentsinseveralways:

da icAlcatel-Lucentpromotes development of digital networks

everywhereasa waytodeliversuchbenefitsas e-health,e-educationande-governmentatthelowestpossiblecostinordertocontributetoeconomicdevelopment,publicwelfareanddigitalinclusion.heGrouppromotespublicpoliciessupporting

wire-lineconnectivityforallunderservedpopulationsinbothdevelopinganddevelopedcountries.ursupportforspectrumefciencypoliciesaimstoensurethewidestpossibleaccesstowirelesscommunicationsservices.

In2010,forexample,welaunchedacollaborativeprojectwiththeAfricanMedicalandesearchFoundation(AMF)toeducatehealthworkersviamobilephonesandothermobiledevices.InIndia,ourublicAffairsteaminitiatedalarge-scalee-education

projectwithIGNUUniversity,anopenanddistancelearninginstitution.heprogramaimstohelptheIndiangovernmentraisesecondaryeducationenrollmentratesfrom7%to15%by2015.Italsoinvolvesexpandingeducationalopportunitiesinruraland

undeservedareas.

emWeworkwithgovernmentauthoritiestopromotesuchinitiativesas:

• Greenouch™,inparticularfornancingresearchprograms.leaseseepage63.

• heAlcatel-LucentAlternativenergyrogram,especiallytoenableauthoritiesintheleastdevelopedcountriestoovercomeenergychallenges.leaseseepage49.

Ca gacWeworkwithprofessionalassociationstopromotebest-in-classcorporateresponsibilitypolicies,inparticularcorporategovernance,toenhancelegislationandvoluntaryinitiativesand

charts.









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6.11 eMployee diAlogue

Alcatel-Lucentiscommittedtofosteringanopendialoguewithemployees.Werespectthiscommitmentthroughourongoing

exchangeswithtradeunionsandotherrepresentativebodiesaswellasnumerousinternalcommunicationsinitiatives.

ia a ea Cmmcaurinternalcommunicationsuseavarietyofmedia,rangingfromcollaborativeandsocialnetworkingtoolstomoretraditionalmethods.Wehavebeentakingadvantageofthesharingandcollaborationbenetsofsocialmediaandnetworkingtoolssince

2008.heseinteractivemediahaveprovedparticularlyusefulasawaytoinciteopendiscussionandreinforcecollaborationacrosstheorganization.

In2009and2010,wedevelopedouruseofourcorporateblogaswellasourpresenceonwitterandYoutubebothinternallyandexternally.InadditiontosharingAlcatel-Lucent’slatestnewsandvideos,socialmediaenableustobringperspectivesfromexperts

andpartnerstoourstakeholders.

In2010,wewelcomedsuchblogguestsasLeeHowell(Worldconomic Forum Managing Director) and Nicole Schwab(Co-FounderoftheGenderqualityroject).

o encourage greater collaboration and cross-functionalexchanges,we launchedngage, Alcatel-Lucent’ss ocialandcollaborativeplatform,in2010.heplatformisbeingwidely

usedtoenableourpeopletoconnectandcollaboratewiththeircolleaguesinrealtimeandtoshareinsights,linksanddocuments.

Inlessthaneighteenmonths,thevastmajorityofemployees

areregisteredwithngage.Asembracingsocialcollaborationinternallyisimportanttous,wewillcontinuetopushthismeansofcommunicationin2011andbeyond.olearnmoreaboutourinternalcommunicationsinitiatives,pleaseseepage70.

ta u daMostdiscussionswithtradeunions,subjecttovaryinglaws,

regulationsandpracticesindifferentcountries,areconductedonanationallevel.

Inadditioninurope,seniormanagementanduropeanemployee

representativesshareviews inthe Alcatel-LucenturopeanworkerscouncilscalledCID(uropeanCommitteeforInformationandDialogue).

In2010,theuropeancommitteemetinMarchandctober;anintermediatemeetingwiththeliaisingcommitteetookplaceinJuly.Formoreinformation,pleaseseepage69. InFrance,seniormanagementmeetsatleasttwiceannuallywithaFrench

Committee(ComitédeGroupeFrance) ,composedof30membersfromtradeunionsrepresentedinAlcatel-Lucent.










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40

6.12 investor relAtions

Alcatel-Lucent provides a regular stream of up-to-dateinformationtoshareholdersandprospectiveinvestorscovering

theGroup’sbusinessactivitiesandstrategies.In2010,regardingcorporateresponsibility,aparticularspotlightwasfocusedonhumanresourcesandcorporategovernance.

heGroup’sprincipalshareholdersmetwithChairmanoftheBoardhilippeCamustodiscusscorporategovernance.ierreBarnabé,xecutiveViceresidentinchargeofCorporateHumanesourcesandransformation,metregularlywithinvestorsand

nancialinstitutionsoverthecourseoftheyear.

hesemeetingsfocusedonthehumanresourcesmanagementimplicationsoftheGroup’stransformationaswellasgovernance

issuesinthewakeoftherough2006-2008period.

In2011,theinvestorrelationsfocusisonmaintainingstrongrelationships with the financial community generally and

specicallyonsustainabilityasierreBarnabé,hilippeCamusandexpertsontheenvironmentcontinuetomeetregularlywithshareholdersandpotentialinvestors.

olearnmore aboutinformationavailabletoInvestors and

shareholders,visitthededicatedpagesofourwebsite.

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41

41 ALCATEL-LUCENT 2010



4141CRPRATE REsPNsiiLiTy REPRT


1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28

7. Envronment 41 8.OurPeople 66


Glossary 107■■■■■■■■■■■■■■■■ environMent

7.1Environmental 42SustainabilityStrategy

7.2Part1:Developing 45Eco-sustainableetorks

7.3Part2:Enabling 51aLo-carbonEconomy

7.4Part3:Reducingour 55

CarbonFootprint 7.5Part4:Innovation 60

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42

7.1.1 ur Approac toward Envronmentalsutanablt

he drive for environmental sustainability constitutes acornerstoneoftheAlcatel-Lucentcorporatestrategy.Inadditiontoreducingitsowndirectimpactontheenvironment,Alcatel-Lucenttiesitslong-termbusinesssuccesstoitsabilitytohelpcustomersmeettheenvironmentalchallengestheyface.

As a consequenceof this far-reaching approach to theenvironmentandtheghtagainstclimatechange,Alcatel-Lucenthasintegratedenvironmentalconsiderationsintovirtuallyeveryphaseofitsactivitythroughafour-partapproach:

pa 1 d caa A l c at e l- L u ce n t i s c o mm i t te d t o de ve l op a n d b r in g t omarketproducts,servicesandsolutionsthatcontributetoenvironmentallyresponsible,end-to-endnetworks.

pa 2 ea a ca cmAlcatel-Lucentenablesbusinessesandconsumerstoreducetheirrespectiveenvironmentalimpactthroughthedevelopmentofinnovativeapplicationsandsolutions.

pa 3 rc Acalc’ ca Alcatel-Lucentiscommittedtoreduceitsabsolutecarbonfootprintby50%by2020(2008baseline).Since2008,Alcatel-Lucenthasreduceditsentirecarbonfootprintbynearly12.6%.

pa 4 la Acalc ca aa a ac aAlcatel-Lucent,throughitsBellLabsresearcharm,iscommittedtoleadingtheeco-innovationchallengeandactivelyparticipatesinopen,collaborativepartnershipsandforumswhereleaders

jointogethertoaddressbroadsustainabilitystrategiesandinitiatives.

Read more

7.1 environMentAl sustAinAbility strAtegy

ur commtmentLeadtheindustry indevelopingand deployingglobally

recognizedinnovationineco-sustainablecommunications

technologiesthatenableourcustomerstocompeteandinina

orldbesetbygroingenvironmentalchallengesandresource

constraints.withtheGreenouch™globalresearchconsortium

initiatedby Bell LabsinJanuary2010,e ant tomake

communicationsnetorks1,000timesmoreenergyefcient,

therebydrasticallyreducingtheirenvironmentalimpact.

7.1 Envronmental 42sutanablt strate











Glossary 107■■■■■■■■■■■■■■■■

7.1.1 ur Approac toward 42Envronmentalsutanablt

7.1.2Governancefor 43Sustainability

7.1.3Management 44ofEnvironment,Health&Safety

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cmmca a aa a.

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437. ENViRNMENT • 7.1NVINMNALSUSAINABILIYSAGY ALCATEL-LUCENT 2010




43

7.1.2 governance or sutanablt

heGroup’stwohighestlevelCorporateesponsibilitygoverningbodies,theCorporateesponsibilityCouncilandtheCorporateesponsibilityNetwork,monitorperformanceandtrackprogressonenvironmentalissuesaspartoftheirbroadCresponsibilities(seepage06).

Alcatel-Lucent’s56GreeneammembersandthefceofSustainabilityoverseeoperationalsustainabilityissueslinkedtotheenvironmentandclimatechange.Greeneamleadersensurethatcarbonfootprintinformationisreportedreliablyandontime,andthatlocalactionplansareproperlyimplemented.Carbonfootprintiscalculatedtwiceayear.

henvironment,Health&Safety(HS)fceisresponsibleforthedevelopmentofpoliciesandcomplianceassuranceprogramstomeetlegal,customerandcompanyrequirements.heHSfceprovidestechnicalsupportfortheimplementationofHSprogramstolocalHSrepresentatives.AnHSManagementSystemsapproachisutilizedtoensurecompliance,continualimprovementandachievingindustrybestpracticeslevelsofperformance.

heBellLabsCeamsaddressenvironmentalinitiativesandgoalslinkedtoproducts,servicesandsolutions.eammemberspartnerwithproductandresearchteamstoaddressissuesrangingfromenvironmentaldesignprocessesandstrategiestotacticalprojectandprogramexecution.heteamcascadesandmonitorsprogressagainsttargetsfor:

•Individualproducts,suchasproductenergy-efciencyroadmaps.

•esearch,suchaslow-energynetworksandsubstances.

•rograms,suchasmaterialsmanagement.

56GreeneamleadersformajorAlcatel-Lucentfacilitiesworldwide.












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7.1.2 governance or 43sutanablt

7.1.3Management 44ofEnvironment,Health&Safety

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global esutanablt intatve

As a long-termcontributingpartner to the Globale-SustainabilityInitiative(GeSI)ClimateChangeWorkGroup, Alcatel-Lucentuses thefindingsof GeSI’slandmarkresearchtodevelopandpromotewaystoreducecarbonemissions.hendingssuggestthatgreenICsolutionscouldhelpreduceglobalcarbon

emissionsbyabout15%(7.8GtC2e)by2020–vetimestheICsector’sownfootprint.

Read more

447. ENViRNMENT • 7.1NVINMNALSUSAINABILIYSAGY ALCATEL-LUCENT 2010




44

7.1.3 Manaement o Envronment, healt & saet

heAlcatel-LucentnvironmentHealthandSafetyManagementSystem(HSMS)facilitatestheuseofacommonHSmanagementmodelasweimplementHSolicyacrosstheorganization.urHSolicywasrevisedtoimprovealignmentwithHSAS18001:2007 andsupport Alcatel-Lucent’s commitment tosustainability.ra ehs pc.

he Alcatel-Lucent HSMSis designed to identify risks,maintaincomplianceandpromoteHSexcellence.ItprovidesanefcientandeffectivewaytomanageHSissuesassociatedwithproducts,servicesandactivitieswhilecost-effectivelypursuingcontinuousHSperformanceimprovements.Decisionsregardingthirdpartycerticationaremadeatthelocallevel,basedonrisk,thenatureofhazards,customerrequirementsandcompetitiveadvantage.

urHSMScontinuestomeettheneeds ofcustomers,whoincreasinglyinsistuponHSsystemscertiedbythirdparties.heGroupcontinuestodrivethesesamerequirementsthroughitssupplychaintominimizetheoverallimpactofitsoperations.eoplethroughouttheGrouparekeptup-to-dateonHSnewsandissuesviangage,theAlcatel-Lucentinternalcollaborativesocialmediaplatform.HSonngageshareswhatwedotoprotecttheenvironmentandthehealthandsafetyofemployees,contractors,customersand the communitieswhere wedobusiness.

ohsAs 18001 ccaHealthandsafetymanagementsystemswereexpandedin2010 asAlcatel-LucentShanghaiBellCo. Ltd.and Alcatel-LucentItaliaobtainedcerticationtoccupationalHealthandSafetyManagementSystems(HSAS)18001:2007.InadditiontheKNGBServicesGroupinBelgiumachievedcerticationtoVCA(VeiligheidsChecklistvoorAannemers),ahealthandsafetyrecognitionforcontractors.

ehs Cmac A pamAlcatel-Lucentis committedto anongoingprogram ofHScomplianceauditsandriskassessments.heHSComplianceAuditrogram,whichidentiesandreportsrisksresultingintheimplementationofcontrolsandimprovements,appliesarisk-basedsamplingmethodologytoidentifysitestobeauditedeachyear.Auditcandidatesitesincludemanufacturing/systemsintegration centers,&D centers,administrative locations,eldinstallationsandmanagedserviceslocations.he HSauditprocessincludesa reviewof localregulations,Grouprequirementsandgoodmanagementpractices.

heprogramincludesmechanismsforcontinuousimprovement.Forexample,auditrecommendationsresultedinchangesatoursubmarinecableoperationinCalais,Franceincludingtheuseofharnessesandupgradingoldcabletankstoenhancesafety.

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7.1.1OurApproachtoards 42EnvironmentalSustainability

7.1.2Governancefor 43Sustainability

7.1.3 Manaement 44o Envronment,healt & saet

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45

7.2.1 Endtoend Approac

co-sustainabilityrequiresaholisticapproachtoimproveenergyefciencyandmanagetheenvironmentalimpactofanetworksolutionthroughoutitslife-cycle—fromdesigntooperationstoend-of-life.hisholisticapproachtakesintoconsiderationhowallnetworkelementsworktogetherandtheinuencetheyhaveononeanotherandhowtheycontributetoenvironmentalsustainability.

urend-to-endapproachisalsoreectedintheAlcatel-LucentHighLeverageNetwork™(HLN)architecture,anapproachthatenablestransformationtocreateradicallymoreefcientnetworks,whileaddressingthechangingdemandsofaconnectedworld.Itcanreducetotalcostofownershipbyemployingfewerdevicestodomorewithless,offeringaneco-sustainablechoiceforserviceproviders.

ema lcc AmWeminimizetheenvironmentalimpactofourproductsbasedonalife-cycleapproachthatassessesallstages–manufacturing,useandend-of-life.Usingthisapproach,weevaluateeventualimpactduringtheearlyproductconceptstagesand seekcontinuousimprovementsindesign,materialselectionandsuchoperatingcharacteristicsasenergyefciency.nvironmentalimpactsarefurtherminimizedthroughtherigoroususeofbestpracticesthatincorporatekeyproductimpactissues,suchas:

•roductlifetime(valueextension)

•ccupylessspaceandgeneratelessheat

•rovidemorefunctionalityperkilowattused

•unonalternateenergywhen/whereapplicable•lectromagneticenvironmentsafety

•Acousticnoisereduction

•Containmaterialswithlowenvironmentalimpact

•nd-of-lifedisassembly/treatment

•co-efcientproductpackaging/transport

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PAR1 7.2 developing eCo-sustAinAble networks

smpled LeCcle Aement (LCA)EtmatorAlcatel-Lucenthasdeveloped,andisleadingindustryconsortia

effort,onasimpliedLCAframeorkthatmoreefciently

evaluateseco-impact informationfor ICproductsthanpreviousapproaches.heframeorkcombinessimplified

processestomoreeasilyderiveenvironmentalinformationfor

InformationandCommunicationsechnology(IC)equipment

andassetsithalevelofprecisionsuitedtoindustryneeds.

Life-CycleAssessment

End-of-life

Development

Manufacturing

Packaging

Distribution

andinstallation

Useandservicing

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7.2 Part 1: Developn 45Ecoutanable Network










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7.2.2R edu cin g the Imp act 46ofourProducts&SolutionsontheEnvironment

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7 .2 .2 .2 Safetyithin 46theElectromagneticEnvironment

7 .2 .2 .3 Packaging,Distribution 47andInstallation

7 .2 .2 .4 E ne rg yEf cie ntse 4 8

7 .2 .2 .5 ake-back, 50RemanufacturingandRecycling

7 .2 .2 .6 Summingitup: 50ProductEco-declarations

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467. ENViRNMENT • 7.2DVLINGCSUSAINABLNWKS ALCATEL-LUCENT 2010




46

7.2.2 Reducn te impact o our Productand soluton on te Envronment

7.2.2.1 Maa MaaAlcatel-Lucent placesparamount importanceon managingtheenvironmentalaspectsof materialsusedinitsproductsand supplychain. Wetake responsibilitybeyond regulatorycompliance,assessingeco-impactsearlyoninrawmaterialsprocessingthroughtoproductend-of-life.heGroupmaintainsarobustmaterial/substancecontentmanagementprocesstoaggressivelylimittheimpactofhazardousmaterialsandwasteonhumanhealthandtheenvironment.

Supplychainrequirementsforcontrolandtrackingofmaterialcontent arespecifiedin s rqm: sacrc.hese requirementsidentifyspecificmaterialsthatarebanned,restrictedandtobeavoidedinproductsorpackagingprovidedtoAlcatel-Lucent.SuppliersarerequiredtotrackmaterialcontentinformationforAlcatel-LucentinlinewiththeJ i Maa Cm dcaa g

ecc pc.

Inlightofsuspectedenvironmentalandhumanhealthrisks,Alcatel-Lucentvoluntarilyrestrictsitsuseofcertainsubstancessuchasglycolethers,berylliumoxideandsulfurhexauoride.Withinthisscope,Alcatel-Lucentisvigorouslypursuingtheelimination ofpolyvinylchloride (VC)fromits productsglobally.WearecommittedtoinvestinginstudiestoreplaceVCwithalternativesthataretechnicallyandeconomicallyviable.Alcatel-Lucentworkswithsuppliers,industrystandardstechnicalcommitteesandacademiatofullyevaluatethelifecycleeco-impactsofsubstitutingthesesubstanceswhileevaluatingtheimpactonthesupplychainandtheintegrityofourproducts.urtargetistovalidatetheviabilityofalternativesforVC

globallybytheendof2011.

Alcatel-Lucentalsocontinuestoexpanditsuseoflead-freesolders.urresearchprogram,incollaborationwithindustrypartners,hashelpedadvanceglobalknowledgeoflead-freetechnologyto enablea morereliable,rapid and completetransitiontolead-freeassembly.hecompany’snterprisevoiceportfoliowasconvertedtolead-freein2006.hefollowingyear,therstnetworkinfrastructureequipmentproductsweredesignedlead-free.Since2010,allnewdesignsfornetworkinfrastructureequipmentarelead-freebydefault.

7.2.2.2 sa ecmac emAlcatel-Lucentcloselyfollowshealthand regulatoryissuesrelated to wirelesscommunicationsgenerally and to theelectromagneticenvironment in particular. We are firmlycommittedtoensuringthatour productportfoliocomplieswith internationalstandards and regulations related tohumanexposure.urpositionregardingtheelectromagneticenvironmentisbasedontheopinionofexpertcommitteesmandatedbynationalandinternationalauthoritiestoassesstheadvancementofscienticknowledge.Wesupportworldwideresearcheffortsanddialoguetopromotethedisseminationofscienticinformation.Weactivelycontributetotheinternationalstandardizationbodies that developexposure assessmentstandards.

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2015liminateVCinallourproductsby2015*.*Subjecttotheavailabilityoftechnically,environmentallyandeconomi-callysoundalternatives.












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7.2.2R edu cin g the Imp act 46ofourProducts&SolutionsontheEnvironment

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7.2.2.2 saet wtn 46te ElectromanetcEnvronment





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7.2.2.3 paca, d a iaa

pacaheAlcatel-Lucentglobaleco-sustainablepackagingsystemaimstoreduceboththedirectandindirectenvironmentalimpactofpackagingbydeningandimplementingasingle,standardizedapproachworldwide. neway ourlogisticsspecialistsarereducingtheimpactofpackagingisbyreplacingwoodenpackingcrateswithmostlycorrugatedcardboardwithahighrecycledcontent.Atoururopeandistributioncenter,useofwood-basedpackagingasasecondarypackagingcontainerdecreasedbymorethan58%in2010,eliminatingmorethan9,500wood-basedcontainers.

ureffortstoreplacebubblewrapwithpapermaterialsisanotherexample.In2010,morethan5,200rollsofbubblewrapwereeliminatedaspartofabubblewrapreplacementprogramlaunchedinNorthAmerica.

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taaransportingfreightviaairismorecarbonintensivethanothermodesoftransport.In2009,wereducedthecarbonfootprintofourlogisticswhenweshifted10%ofourfreightfromairtosurfacetransit,especiallyoceanshipping.However,theshiftawayfromairfreightalsopromptedanunanticipatedincreaseininventories,asequipmentspentmoretimeintransitandmorematerialwaswarehousedtoremainresponsivetocustomerneeds,causinganincreaseinthesizeofourcarbonfootprint.

Now,toavoidexcessiveinventoriesandreducetheenvironmentalimpact oflogistics,Alcatel-Lucent isinvestingina regionalcampusmanufacturingmodel,withproductsmadeclosertocustomers.Forexample,morethan90%oftheGroup’spticalNetworkingerminals(Ns),whichhadbeenmanufacturedinAsia,weredestinedforinstallationinNorthAmerica.BytransferringproductiontoasubcontractorinNogales,Mexico,we avoid the need forair freight shipmentand providecustomerswithexpeditedorderfulllment.xpansionofthisregionalmanufacturingmodeloverthecomingyearwillleadto

improvementsinourproductlogisticscarbonfootprint.

optiMized pACkAging for verizon

A redesign of packaging for

our high volume Fiber-to-the-

User Optical Network Terminals

(FTTU ONTs) helped Verizon

reduce storage and freight costs

while reducing environmental

impact. The new packaging

designs resulted in material cost

reductions and provided improvements in pallet load

and truckload quantities over existing designs, all ofwhich help reduce environmental impact.

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7.2.2.4 e ec uLifecycleassessmentsrepeatedlyshowthattheusagephaseofatypicalnetworkproductaccountsforsome80-to-90%ofthetotalenvironmentalimpactovertheproduct’sentirelifecycle.hebulkofthisimpactisassociatedwiththeenergyusedtooperatetheproductoveritslonglifetime.educingenergyuseisthereforeaprimaryobjectiveinAlcatel-Lucent’seco-sustainabilitystrategyforitsproducts.Itisnoteworthythatwemetourobjectiveofimprovingthefunctionalenergyefciencyofkeyproductsbyatleast20%by2010comparedwith2008.Manyproductssignicantlyexceededthistargetvalue.Hereareafewexamplesofthisachievement.

•w Acc heAlcatel-Lucent9234distributedbasestationforCDMA

cellularnetworksimprovesenergyefciencyby32%.SelectedbySprintintheU.S.foritsNetworkVisionroject,the9234distributedCDMAbasestationalsohelpsoperatorsmeetphysicalsiteconstraintsandsiteacquisitionchallenges.

•f Acc helatestrelease(4.2)ofourISAMFX(7302)platformimproved

itsfunctionalenergyefciencyby30%.Itenablesnetworkserviceprovidersinover100countriestoaddhighcapacitygigabitpassiveopticalnetwork (GN)capabilitiesto theirexistingequipment.hatmeansAlcatel-Lucentcustomerscanprovideberopticservicetosubscribersusingequipmentalreadyinstalled.

•ip elease8oftheAlcatel-Lucent7750Serviceouteroffers

energysavingsofupto23%thankstosiliconoptimizationalongwithgainsinthermalmanagementandpowerefciencyinlinecards.

ltRado™Alcatel-Lucent’sbreakthroughlightRadio™

productlineformobileandbroadband

infrastructureequipmentoffersaay

tosatisfytheneedsofmobiledatausers

andnetork operatorseveryhere,

includingunder-served rural areas.

A t t h e s a me t i me , t h e i n no v at iv e

lightRadio™designradicallyshrinksand

simpliescurrentbasestationsandmassivecellsitetoers,

helpingc cm m

50%overcurrentradioaccessnetorkequipment.

helightRadio™portfolioillrepresentanearchitecture

formobilenetorks.IntheinitialdeploymentsoflightRadio™,

thebasestation,typicallylocatedatthebaseofeachcellsite

toer,isbrokenintoitscomponentelementsanddistributed

intoboththeantennaandthroughoutacloud-likenetork.

Additionally,today’sclutterofantennasserving2G,3G,andLEsystemsarecombinedandshrunkintoasinglepoerful,

BellLabs-pioneeredmultifrequency,multistandardproduct

calledthewidebandActiveArrayAntennathatcanbemounted

onpoles,sidesofbuildingsoranyhereelsethereispoerand

abroadbandconnection.

he lightRadio™architecture cansignificantly c

ma mac m byreducingtheir

energyconsumptionbyasmuchasone-half.Accordingto

BellLabsresearch,mobilenetorkbasestationsareglobally

responsiblefortheemissionofroughly18millionmetrictons

ofCO2peryear.

hetechnologyalsoholdsthepotentialtogreatlya

acc a aa cinregionsthat

arenotcurrentlyserved.Byreducingthecellsitetojustthe

antennaandleveragingfuturetechnicaladvances,lightRadio™

technologyhasthepotentialtocreatebroadbandcoverage

virtuallyanyherepoer(electricity,sun,ind)isavailable.

Commercialproducts ithin thelightRadio™portfolio ill

becomeavailablestartingin2012.

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50%lightadio™helpsreducetheenergyconsumptionofmobilenetworksbyupto50%.






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•oca taheenergyconsumptionperbitofinformationtransportedforouropticalplatformswasreducedin2010thankstosuchproductdesignimprovementsasincreasedboardportdensity,extendedopticalperformance,newcomponentsandthermalmanagement.Forexample,our1830hotonicServiceSwitch,usedbymore

than70 customersworldwideincluding360networks,BandSoftbank,enables todecrease powerconsumptionby69%comparedtoprevioussolutions.heproductalsoincorporatesnewcomponenttechnologiesthatgreatlyreducetherequiredspace.

•Aa eurAlternativenergyrogram helpsserviceprovidersquicklyandcost-efcientlydeploywirelessnetworkseventoareas notserved byreliable electrical power. Insuchsituations,poweringwirelessbasestationswithsolar,windandotheralternativeenergysourcesremovestheneedfor

traditionaldieselgenerators.Bydrasticallyreducingoperatingexpensesandcarbonfootprint,itispossibletobringallofthesocialandeconomicbenetsoftelecomservicestoeventhemostremoteareas.

In2010,wereachedthemilestoneofhavingdeployedmorethan500alternativeenergy-poweredbasestations,withabreadthofsolutionsabletoaddressallclimaticanddeploymentcontexts. We furtherexpanded our value proposition,includingnetworkenergymanagementcapabilities,offeringserviceproviderstheabilitytomonitorandcontrol,fromasinglecentrallocation,theenergyconsumptionoftheirentirenetwork.

Watch the video

he uropean Commission recognized Alcatel-Lucent’sAlternative nergyrogram withits Sustainable nergyuropeAward2010.hevecategoriesintheUCommission’scompetitionattractedatotalof272entries,with26selectedasnalists.Alcatel-LucentwonintheMarketransformation-VoluntaryCommitmentscategory.

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Man breaktrou: 100g wt 75% lepower conumptonIn2010Alcatel-Lucentstartedto deploy next-generation,

singlecarriercoherenttechnologytotransmitasinglecarrier

100 gigabitpersecond(100G)onaavelength.hisreducesthe

poerconsumptionperbandidth(w/Gbps)oftheequipmentby75%comparedtosloerspeedtransmission.












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7 .2 .2 .3 Packaging,DistributionandInstallation 47

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7 .2 .2 .6 Summingitup:ProductEco-declarations 50

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7.2.2.5 taac, rmaac a rccAlcatel-Lucentoffersglobalproducttake-back,remanufacturingand recycling services for a cm c,

a .

Membersofourglobalnetworkofapprovedrecyclingvendorscollectandrecycleproductsthathavereachedtheirendoflife.Customersareprovidedwithanonlinerequestformtoarrangeequipmentpick-up.Wherepossible,Alcatel-Lucentparticipatesinpublicrecoverysystems.

In2010,theGroupmanaged4,464metrictonsofelectronicwaste.fthisamount,336metrictonsofequipmentandcomponentswasremanufacturedand/orresold.Approvedrecyclingpartnerswereutilizedto recycle4,050 metrictons. Alltold, aa 98% a cc -; a 2% a a c a.heGroup,whichincreasedthenumberof

producttypesremanufacturedby36%in2009,furtherexpandedremanufacturingbyanadditional21%in2010.

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7.2.2.6 smm u: pc eccaaWesupporttransparency.Since2009,eco-declarationsareincludedfor allAlcatel-Lucentproducts,acrossall productgroupsanddivisions.heyconformtotheCMA-370standardissued by the uropean Association for StandardizationInformationandCommunicationSystems(CMAInternational)andalsotheInternationallectrotechnicalCommission(IC)

62430 standardfor nvironmentallyConscious Designforlectricalandlectronicroducts.

In2010,webeganincludingcarbonfootprintinformation,i.e.,greenhousegasemissions,intheproducteco-declarationforallnewproductfamilies.hisinformationisderivedusingAlcatel-Lucent’sLCAstimator.

98%In2010,among4,464metrictonsofelectronicwaste,greaterthan98%wasrecycledorre-sold.












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7.3.1 iCT a an Enabler

Informationandcommunicationstechnology(IC)providers

haveauniqueopportunitytoplayanexceptionalroleinthebattleagainstclimatechange.AlthoughtheICsectorasawholeisdirectlyresponsibleforonlyabout2%oftotalgreenhousegas(GHG)emissions,companiessuchasAlcatel-Lucentcanplayamajorrolebyenablingcustomerstoreducetheiremissionsintheremaining98%.heICsectorcancutgreenhousegas(GHG)emissionsbyasmuchas15percentby2020—vetimesthesector’sownfootprint,accordingtotheGeSIandClimateGroupreport“Smart2020.”

Inparticular,smartapplicationsandsolutionscanreducetheenvironmentalimpactofavarietyofeconomicsectors:

•nergy(powerutilities):smartgridandsmartmetering.

•ransportationandlogistics:intelligenttransportsystems.

•Healthcare:remotepatientcareandmonitoring.

•Smartcommunities:smartcities,stateandlocalauthorities,publicsafety.

PAR2 7.3 enAbling A low-CArbon eConoMy



7.3 Part 2: Enabln 51a Lowcarbon Econom








Glossary 107■■■■■■■■■■■■■■■■

7.3.1 iCT a an Enabler 51

7.3.2SmartGrids 52

7.3.3Sma rt ra nsportation 5 4andLogistics

7.3.4Dematerialization 54 ■■■■■■■■■■■■■■■■

Evaluatn te carbonreducn

potental o iCTInanimportantsteptoardcuttingGHGemissions,inSeptember

2010,Alcatel-LucentandseveralotherICcompaniesorking

throughtheGlobale-SustainabilityInitiative(GeSI)fundedthe

developmentofamethodologyforevaluatingthecarbon-reducing

potentialofenablingICinitiatives.hispracticaltoolaimsto

providebusinesses,policymakersandtheICindustryitha

commonyardstickforassessingcarbonemissionssavingsarising

fromIC-basedsolutions.Alcatel-LucentillusethisneIC

evaluationmethodologytomeasurethecarbonreductionbenets

ofitscommunicationsolutions.

Read more

527. ENViRNMENT • 7.3NABLINGALWCABNCNMY ALCATEL-LUCENT 2010




7.3.2 smart grd

lectricitygenerationanddistributionaccountforanestimatedonequarteroftotalworldwidegreenhousegasemissions.Aspartofitseffortstoenablecustomerstoreducetheircarbonemissions,Alcatel-Lucentiscombiningitsexpertiseinutilitycommunications

withitsexperienceintelecomsapplicationstocreatesolutionsaimedattheevolvingsmartgridandsmartmeteringmarkets.Forinstance,theGroup’ssolutionsenableutilitiesto:

• ica oaa ecc urtechnologiesenablecollecting,aggregatingandcorrelating

meteringdatainstrategicareasofthegrid.hiscreatestheunderstandingnecessaryforpowerutilitiestoreduceelectricitywastage.ForinstancewithourAdvancedMeteringInfrastructuresolution,utilitiescan:

a. monitordistributionnetworktransformersandstreamlinethegridbyreducingthenumberoftransformerstoreducepowerlosses,

b. addresselectricitytheftandlosses.nly35%ofthetotal

energygeneratedworldwideisturnedintousefulelectricity.India,forexample,losesnearlyone-thirdofitselectricitythrough transmissionand distributionlosses. lectricitygenerationcurrentlyaccountsfor57%ofIndia’stotalGHGemissions.heselossescouldbereducedby30%throughbettergridmonitoringandmanagement.

•ea e-u eam he Group’ss olutionsenable utilitiesto monitorreal-time

usage,to informand inciteconsumersto bemoreenergyaware.Alcatel-Lucentsmartgrid/smartmeteringapplicationsenableutilitiestolaunchexibletariffpatterns.heseprovideanancialincentivetoconsumers(andenterprisecustomers)toreduceusageduringhigh-cost,peakproductionperiods.

•ia ra e sc Integratingrenewableenergiesintotheenergysupplychain

constitutesagreatertechnicalchallengebecauseproductiontendstobelowerandmoreirregularthantraditionalelectricitygeneration(exceptforhydrogeneration).urmissioncriticalcommunication solutionsenable utilities to connect andthoroughlysuperviserenewableenergysourcestobalancethemwithtraditionalproductionmethods.

Alcatel-Lucentalreadyissuccessfullydeliveringsmartgridsolutions:

•u sa klahomaGas&lectric(G&),withAlcatel-Lucent’shelp,will

deploysmartgridtechnologyacrossitsentireserviceareato

makebetteruseofitsexistinginfrastructure,reduceoperatingcostsandhelpitscustomersusetheirpowermorewisely.ItwillalsohelpG&maintainreasonableelectricityrates,continuehighlyreliabledeliveryofelectricityandsignicantlydelaythebuildingofanotherfossilfuelpowerplant.

•Caaa Alcatel-Lucent is helping AltaLink, Canada’s only fully

independentelectrictransmissionprovider,offercustomerselectricpowerwhentheyneedit,atthemosteconomicalpriceandhighestpossiblereliability.

•gma AnagreementbetweenAlcatel-LucentandVodafoneisbringing

innovativesolutionstoelectricity,gasandwatersuppliers.herstsmartmeteringmanagedserviceisbeingimplementedbyStadtwerkeasewalk,amunicipalutilityinMecklenburg-Vorpommern.

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7.3.1ICasanEnabler 51

7.3.2 smart grd 52







sma g Ca sAlcatel-LucentsmartmetersandasmartmetermanagementsystemenablethelectricowerBoard(B)ofChattanooga,ennessee,oneofthelargestU.S.publiclyownedelectricpowercompanies,tousepowermoreefcientlyandtointroduceexibleratesbasedonchangingconditions.Bservesmore

than170,000customers.

Incontrasttotraditionalelectricalgrids,whichcarrypowerinonlyonedirection–outwardtocustomers–theBsmartgridusesber-opticcablingtoenableinformationtoowbackandforthbetweencustomersandtheutility.hatcreatesopportunitiestomakethegridandenergyusagemoreefcient.

Forexample,thetwo-wayowofinformationmeansthatBcanmeasureeachcustomer’senergyconsumptioninrealtimeandcommunicatethatinformationbacktothecustomer.heresultisthatcustomerscanseehowmuchthey’respendingonpoweratanygivenmomentandchangetheirconsumptionhabitsaccordingly.nergysavingscanalsobeachievedwithout

humanintervention.Ifcustomerschoose,Bcanturnoffpowertocertaindeviceswhennotinuse,orturnonapplianceswhenpowerislessexpensive.

Bisaimingtocompleteitssmartgrid—andhavesmartmetersinallhomesandbusinessesthroughoutitsservicearea —during2011.ncethesystemisfullyoperational,electronicmeter-readingwillhelpBfurtherreduceitscarbonfootprintbyeliminatingmanualreadingofmeters.Andbecauseitismorereliablethanconventionalgrids,thesmartgridisexpectedtohelpBcutdownonphysicalserviceinterventionslinkedtopoweroutages.hecompanyultimatelyplanstoleverageandanalyzemeterdatatoenableloadsharingandloadmanagement,boostingthegrid’sefciency.

heberopticnetworkthatprovidestheinfrastructureforthesmartgridprojectalsoisbeingusedtodeliverhigh-speed,high-capacitycableV,phoneandInternetservices.hecombinationofadvancedtelecommunicationsserviceswiththeinnovative,energy-savingssmartgridproject contributesto economicdevelopmentintheChattanoogaarea.B’sber-opticnetworkhasbeenafactorinthearea’seffortstorecruitnewbusinessesandretainexistingones.Inthefuture,thenetworkisexpectedtoprovidetheinfrastructureneededfore-servicesthatwillhelp

reducecarbonemissions,suchastele-andvideo-conferencing,e-learningande-healthcareservices.

170,000customersservedbylectricowerBoard'ssmartgrid.









7. Envronment 41 8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

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7.3.2 smart grd 52







7.3.3 smart Tranportaton and Lotc

Inthetransportsector,thesecondleadingsourceofglobalGHGemissionsafterenergy,ICsolutionscouldsave1.52GtC

2eby

2020.

Alcatel-Lucent’seleportrafcSensingSolutionisanopen,accurateandexiblesystemthathelpsreducevehiclecarbonemissionsbymonitoringandmeasuringtrafcow.Basedonan intelligent, patent-pendingalgorithmfrom BellL abst hatsuggestsalternatetrafcroutes,eleportisacost-effectivetrafcmonitoringsolutionforcommutersandtrafcauthoritiesalike.eleportusesBluetooth®radiotechnologyincellphonesandcost-effectivesensorsalongtheroadsidethatcanbepoweredbyalternativeenergysources,toelicitdata,includingtraveltimesbetweenpoints.hisenablesurbanplanningcommittees,civilbodiesandconsumerstoplanaheadand/orreactquicklytoreal-timetrafcpatternsandsituations.Italsomakesitpossibletopredicttrafcbehaviorsinsituationssuchasextremeweatherconditions,roadconstructionorspecialevents(e.g.sportingevents).

7.3.4 Demateralzaton

InnovativeAlcatel-Lucentsolutionsenablecustomerstoreducetheir carbon footprintsby using feature-rich multimediacommunicationstoreducetheneedforphysicaltravel.ursolutionsrangefrome-health,e-governmentande-educationtoteleconferencingandtele-workingapplications.Alcatel-Lucentsolutionsoffersignicantenvironmental,economicandsocialbenetsbyreducingtheneedforphysicalgoodsandtravel.Hereareafewexamples.

ec m Cc pam

hengConnectrogram,conceivedandfoundedin2009byAlcatel-Lucent, isa collaborativeeffortcommitted tothedevelopmentandrapiddeploymentofthenextgenerationofbroadbandservices.Itbringstogetherinfrastructure,device,applicationandcontentcompaniesfromaroundtheworldtocreateanend-to-endecosystemwithalltheresourcesandexpertiserequiredtorapidlydelivernextgenerationservicesandapplicationstoserviceproviders,enterprisesandconsumers.ngConnectfostersinnovativeapplicationanddeviceconceptsbybringingtogetherinnovativecompaniesnotgenerallylinked.

Itsmorethan50membersconsistofawiderangeofcompanies,collaboratingineverythingfromresearchtosalesandmarketing.Manyoftheorganization’sinnovativeideasenablesignicantcarbonreductions.

•-haca s

hengConnectrogramsolutionconceptinvolvesusingultrabroadbandnetworksandnewconnecteddevicestoexpandpatientself-monitoringand physiciancollaboration.Suche-healthcaresolutions,byeliminatingtravel,help reducecarbonemissions.AnotherngConnectsolutionconceptistodematerializemedicalrecords,allowingaccesstoinformationandtoolsfromanydevice,inanylocation.

•sc CcheGlobalBazaarretailconceptreducestravelthroughaninteractivevirtualstorefront.heprojectshowshowsmallproducersandmanufacturersfromaroundtheworldcanselltheirproductsandextendtheirglobalreachthroughashareddigitalretailkioskinamall,trainstation,entertainmentvenue

orothersetting.

Watch the video










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7.3.3 smart Tranportaton 54and Lotc

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7.4.1 Carbon Emon Trackn and Reportn

Alcatel-Lucentcommittedtoreduceitsowncarbonfootprintby

50%of2008levelsby2020.hegoalencompassesdirectcarbonemissionsfromourownoperations(Scope1and2)aswellasindirect(Scope3)emissions.

In2010,wecontinuedourprogresstowardthisgoalbyreducingScope1and2emissionsby8%.Atthesametime,weincludedagreaterrangeofScope3emissionsthaninpastyearsincalculatingourabsolutecarbonfootprint(seepage56).IntegratingScope3emissionsintothecalculationshowsthat,in2010,wereducedourabsolutecarbonfootprintby1.7%year-over-year[orover21,000tonsofC

2e-theequivalentoftaking3,900passengervehicles

offtheroad].Itisnoteworthythatweachievedthisduringayearwhenourbusinessgrewbyover5%.

Since2008,wehavereducedourabsolutecarbonfootprintbynearly12.6%[orover176,000tonsofC

2e,equivalentto

removingover32,000passengervehiclesfromtheroad].

Asexplainedthroughoutthisreport,wehavebeensuccessfulinreducingourdirectandindirectcarbonemissionsthankstostrongseniormanagementcommitmentandawiderangeofinitiativesinvolvingourentireworkforceandthefullrangeofouractivity,fromfacilityoperationsandlogisticstoIandbusinesstravel.

Asweadvancetowardsour2020goal,weareimplementingathree-stagestrategy:

1. educingcarbonemissionsdirectlyorindirectlyrelatedtoour

businessoperations,throughsuchmeansascuttingelectricityusage,reducingenergyconsumedbysupplychainandproducttransportandlogisticsandreducingbusinesstravel.

2. ngagingwithsuppliersthroughauditstoensurethattheyfollowtheICCSupplierCodeofConductandhelpingsuppliersreducecarbonemissionswhenneeded.

3.Useofrenewableenergysources,creditsandoffsetsifnecessary.

ALCATEL-LUCENT ThREE-PhAsE PLAN T REDUCEiTs CARN fTPRiNT y 50% y 2020

(intonsofC2)

PAR3 7.4 reduCing our CArbon footprint




7.4 Part 3: Reducn our 55

Carbon footprnt 7.5Part4:Innovation 60





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7.4.1 Carbon Emon 55Trackn & Reportn

7.4.2BestPractices: 57LocalInitiatives

7.4.3Encouragingour 59EmployeestobeEco-aare

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2008 2012 2016 2020

200,000

400,000

600,000

800,000

1,000,000

1,200,000

0

1,400,000

1,600,000

24%

42%

50%

1. gET UR

hUsE iN RDER

Improveonsiteenergyefficiency

educetheuseofairshipments

Consolidatefacilities

ConsolidateIservers

educebusinesstravel

2. As MRE

fRM sUPPLiERs

Improveonsiteenergyefficiency

educetheuseofairshipments

Consolidatefacilities

ncouragepartner

involvement

3. UsE RENEWALEs

fR ThE REsT

Userenewableenergy

Userenewableenergycredits

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567. ENViRNMENT • 7.4DUCINGUCABNFIN ALCATEL-LUCENT 2010




scope 1, 2 and 3 Emon

Simplytrackingemissionsforourownuseisnotinthespiritandintentofatransparentclimatechangeprogram.Weworkcloselywith,andreportannuallyto,theCarbonDisclosureroject(www.cdproject.net). Wereport emissionsfrom all

sourcesincludingfacilities,eetoperations,mobilesourcesofcombustionandallotherScope1and2sourcesofemissionsthatresultdirectlyfromourbusinessoperations.Alcatel-LucentalsoreportsScope3emissionsfromoutsourcedactivitiessuchasleasedvehiclesandvessels,productlogisticsandcompanybusinesstravel(seepage96).heGroupfollowstheGreenhouseGasrotocol(www.ghgprotocol.org)todeterminewhatelementstomeasureandreporton.achyear,astheabilitytocollectandreportinformationimproves,weaddadditionalindicators.Forexample,in2009weaddedemissionsfromproductlogisticstoourcarbonfootprintbaseline.In2010weaddedthreenewcomponentstoourcarbonfootprint:

1. em m Cac Maac

Weworkwiththreemajorcontractmanufacturerstoassemblemanyofourproducts.Weworkcloselywiththesemanufacturerstoensurethattheyhaveefciencyprogramsinplaceandstrivetoreducetheircarbonintensitypermillioneuroofproductproduced.

2. em m em CmmInaccordancewiththeGHGrotocol,weaddedemissionsfromemployeecommuting.For2010ourgurescoveronlyNorthAmericabecausethatiswherewehavethebestinformation-gatheringability.Wewillincreasethescopeofourcoverageovertime.

3. em m pca pa

w c a a m a 22% a a.However,2010istherstyearthatwearereportingontheimpactofpaperusageonourcarbonfootprint.Usingmorerecycledcontentpaperisonemajorwaywewillreduceourcarbonfootprintinthiscategory.verall,wearecmm c a a 20%, vs a 2010 a, 2013.Wecontinuetocollectadditionaldataaboutassociatedemissionsthataffectourcarbonfootprintbaselineandworknotonlyinternally,butwithourkeypartnersandsuppliers.

Water Uaewaterisessentialtousall.whileAlcatel-Lucentdoesnotusealotof

aterinitsbusinessprocesses,estillmeasureourusageandseek

toreduceithereeverpossible.wehavemanagedtoreduceouraterconsumptionbynearly20%since2007.wearecmm

c a a a 20% 2013 comparedtoour

2010baseline.

2010 CARBON

FOOTPRINT:1,215,741TONS CO2

10%

46%

18%

5%

5%

7%

5% 1%

3%

●lectricity

●roductransport●Businessravel●Mobilecombustion●Stationarycombustion●LeasedVessels(ASN)●mployeeCommuting-NA

●ContractManufacturing●urchasedHotWater/Steam

0%efrigerant0%SiteemediationActivities0%aperUse0%urchasedChilledWater0%Manufacturing&Fire

SupressionGas

Ernt & youn statementBasedonthe.S.EnvironmentalProtectionAgency

(EPA)principles,thereportingofAlcatel-Lucent’scarbon

footprintasimplementedthankstotheassignmentof

dedicatedstaff,softareandreportingprotocol,enabling

robustandreliablereportingandcalculationprocesses.

Explicitreductiontargetsereset,usingyear2008asa

baseline.Overthelastthreeyears,thereportingscopehas

beengraduallyidenedtoincludenetypesofemissions

andmakecalculationmorecomprehensive.he2008

baselinehasconsequentlybeenupdatedtointegratethese

evolutionsinscopeandmethodology.hecalculationscope

couldstillbeextendedsinceseveraltypesofemissions

relatedtoAlcatel-Lucentactivities(suchasemissionsfrom

roadtransportcontractors)arenotyettakenintoaccount.










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7.4.2 et Practce: Local intatve

g tamFormajorAlcatel-Lucentfacilitiesworldwide,atotalof56Greeneamleaders ensurethatcarbonfootprintdatais providedonaregularandreliablebasis,andthatlocalactionplansare

implementedtoreduceenvironmentalimpact.heGreeneams,organizedintothreeregions,workwithexpertsfromthefceofSustainabilitywhoprovidestructure,directionandaccesstobestpracticesandfacilitateknowledgesharing.

Inadditiontoreportingenergyusagedata,Greeneammembersidentifyopportunitiestoreduceenergyconsumptionandemissions.heseincludesimple,straightforwardbehavioralchangesandshort-termpaybackinitiativessuchaslightingchangesaswellaslongertermmeasures.In2010,theGreeneamsundertookthe“5&5Challenge”wheretheyweretaskedwithimplementingveprojectsinourvelargestfacilities:

•nergy-efcientlighting

•ccupancysensors•imeofdaylightingandHVACadjustments

•Variablespeeddrivesonairconditioningunits

•enewableenergyprojectswherepossible

heseprojectssavedover1millioneurosinenergycostsin2010.Buildingontheseexemplaryresultsandthelessonslearned,wewillexpandtheprogramin2011andbeyond.

sAlcatel-Lucenthasputatoppriorityonreducinggreenhousegasemissionsatour677sitesworldwide.Sitesaccountformorethantwo-thirdsofourScope1andScope2 emissions.missionsfromsiteshavebeenreducedbyanimpressive18%since2008under

theleadershipofourdedicatedsitesleadersandregionalGreeneams.

france: TelecommutnInFrance,27percentofouremployeesorkfromhomeatleast

onedayaeek.heresultisannualeconomiestotalingmore

than2,600tonsofCO2e,theequivalentofremovingnearly500

passengercarsfromtheroadforayear.Onaglobalbasis,further

economiesareachievedthroughflexibleofficespace,hich

optimizesuseofrealestateresources.Becauseemployeesoften

travelororkfromhomeorfromcustomersites,theGroup

aimstoprovideabout75 desksper100employees.In2010,

theimplementationofexibleofcespaceenabledustoclose

over300,000squaremetersofspaceusedforofces.hisnot

onlyreectsthehabitsofamodernorkforce,butreducesour

needforofcespace,cutsourcarbonfootprintandsupportsour

telecommutingefforts.

deMAteriAlizing business trAvel

Responsible for nearly 10% of the Alcatel-Lucent carbon

footprint, business travel offers the Group a double

opportunity: we can reduce our own carbon emissions

and demonstrate the advantages of our advanced

multimedia communications solutions. Thanks to suchalternatives as video conferencing, Alcatel-Lucent

reduced business travel since 2008. At the same time,

video conferencing for internal meetings increased

by 40%, a sign of the profound evolution in corporate

culture as Alcatel-Lucent employees embrace eco-

sustainability.










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ecclectricityaccountsforabouthalfoftheAlcatel-Lucentcarbonfootprint.In2010,theGroupmanagedtoreduceitselectricityconsumptionby6%comparedtothepreviousyear[equivalenttoremovingmorethan7,000carsfromtheroadforoneyear].

Local ntatve:

Canada: Ltn avnInadditiontoreplacing1,450lampswithhigh-efciencyalternativesin2010,another1,000lampswereremovedfromour10-storyofficebuilding inttawa,Canada toeliminateunnecessaryover-lighting.oreducewaterusage,thefacilitiesteaminttawareducedwateringzonesfrom26to3,andletlargesectionsofgrassgobacktonature,savingtensofthousandsoflitersofwaterannually.Inaddition,2010markedthe10-yearanniversaryoftheelimination

ofpesticideandherbicideusage.co-friendlyinitiativescontinuedinsidethebuildingwiththeuseof100%recycledpaperandrecyclingofallpapertowels(whichdivertsover13,000bagsoftrashfromlandfillannually).venthecafeteriaisgreen,withcutlerymadefromStyrofoam-freerenewableresources.

U.s.: Clmate CorpAlcatel-LucentjoinedforceswiththenvironmentalDefenseFundin2010andbecameasponsoroftheirClimateCorpsprogram.ClimateCorpsmatchestrainedstudentsfromleadingbusinessschoolswithcompaniestodeveloppractical,actionableenergyefciencyplans.Alcatel-LucenthostedanDFClimateCorpsfellowatourBellLabsandAmericas

regionheadquartersinMurrayHill,NewJersey.Workingwithlocalfacilitymanagers,thefellowhelpedidentifyover$400,000inannualenergysavings(theequivalentofnearly2,000tonsofC

2e).

france: Powern DownAprojectlaunchedinlate2010aimstoreduceenergyconsumptionatour&DlabsinFrancebyencouraginguserstoswitchoffunusedelectricalequipmentduringworkinghours,aswellasovernightandonweekends.hegoalistoreduceemissionsby600tonsofC

2e,theequivalentof

1,388barrelsofoil,bytheendof2011.Alcatel-LucentteamsattheGroup’sfacilityinu,Franceimplementedaseriesofsustainabilityinitiativesthatreduced

energyandwaterconsumptionandeliminatedlandllwaste.educedlighting,automaticshut-offsystemsinvacantareasandreplacementofboilerscontributedtoa12%reductioninenergyusagein2010comparedto2009.Waterconservationeffortsincludedinstallationoflow-consumptionfaucetsandreplacingexteriorgreenerythatrequiredregularwatering.Allofthewasteatthesiteissortedforreuse.

Mexco: ReltnInMexicoCity,arelightingprojectreplacedmorethan1,500xturesin2010,whichreducedlightingenergyusagebymorethan50%.Inaddition,dozensofoccupancysensorswereinstalledtoautomaticallyswitchofflightsinunoccupiedareas.hesetwoinitiativescombinedwillsaveover260MWhof

energyperyear,theequivalentofplantingover5,000trees.










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7.4.3 Encouran our Emploee to be Ecoaware

A n o n go in g e c o- at t i tu d eawareness campaign – Let’sBe co-Friendly – highlightsways employees can reduce

e n vi r on m e n ta l i m pac t . hecampaignencouragesemployees

toadopteco-friendlygesturesat work,suchascarpooling,e-meetings, water savings,waste sorting, green printing,monitoringofdevicesandlightsandothers.hehighpointoftheLet’sBeco-Friendlycampaign,theco-FriendlyVideoChallenge,endedinJanuary2010andresultedin23differentamateurvideos,eachhighlightingteaminitiativesfromfacilitiesinAustralia,Canada,China,France,Italy,KazakhstanandtheU.S.BasedonemployeevotingandnalselectionbyCSteeringCommitteemembers,thevideo‘ttawaCampusco-FriendlyInitiatives’wasselectedasthewinner.

InApril,anawardsceremonywasheldtocongratulatethettawafacilitiesstaffandpresentthemwiththeaward:aUSD$10,000granttotheNatureConservancyofCanada.

o h ig hl ig ht e mp lo ye ecommitmenttoenvironmentalissuesandtosupportoftheLet’sBeco-Friendlycampaign,Alcatel-Lucentcontributedtotheplantingofthousandsoftreesin2010,workingwiththeGreenBeltMovementplantingprojectinMountKenyaandthelanèteUrgencerestorationeffortfortheIndonesianMangrove.he campaign sparkednumerousinitiativesat Groupsitesworldwide.Forexample,aworldwiderint-FreeDaywasdeclaredonarthDaytoencourageemployeestoreviewtheirhabitsandreduceprinting.

Local ntatve:

Calabaa, Calorna2010arthDayobservances,spreadoveranentireweek,included a recycled batterycounting contest,a raffle,projectionofaGreenInitiativesvideo,andademonstrationofenergy-savingpowerstrips.

sana, CnamployeesrespondedtotheWWFarthHourbyswitchingofflightsforonehourduringtheeveningofMarch27andencouragingeveryonetoreducetheircarbonfootprint.AlcatelShanghaiBellwasrecognizedasan“XGreenCommuting

Citizen”bytheShanghaiXBureauafterthecompanyencouragedemployeestoadoptgreencommuting.

ttawa, Canadamployees celebrated arthDay byreplacing plasticcafeteriautensilswithcompostablesugarcanehuskutensils.Inadditiontotheone-dayevent,morethanadozennewcarpoolingspotswereaddedtotheparkinglot,wherelightsbeganturningoffFriday-Sundaynights.

Murra hll, New JereAnarthDayboothinthecafeteriaenabledemployeestotakepartinnumerousactivities,includingdonatingoldrunningshoesforrecyclingintoplaygroundmats,usingpowerstripstosaveenergyandobtainingreusabletravelmugsandshoppingbags.hearthDaycommemorationalsoincludedseveralvideoand movieprojections andinformationaboutenergyusageofhomeappliances.

Alparetta, georaArecyclingtruckparkedatthemainentranceaspartofthesite’sweek-longarthDaycommemorations.mployeeswereabletodepositoldcomputers,monitors,keyboards,

radios andother personal itemsforrecycling.Batterydisposalbinswereinstalledandinformationwasprovidedabouteco-friendlygardening.heAlpharettafacilityalsoearnedanner gyStarcerticat ionin2010–therstbuildinginourportfoliotoearnsuchanhonor.

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7.5.1 innovaton or te Envronment

hroughourresearchwehavecometotheconclusionthatthere

istremendouspotentialtoimprovethewaycommunicationsnetworksuse powerand consumeenergy. o realizethatpotential,researchersfromacrossAlcatel-Lucentaretakingafreshlookatthebuildingblocksofcommunicationsnetworksandndingnovelwaystoreduceoveralldemandforpowerwhilemaintainingperformanceandimprovingfunctionality.

Alcatel-LucentBell Labs hasestablished a broadthematicresearchfocusongreentechnologiesencompassing:

•Conductingfundamentalresearchonenergyefcientnetworks.

•Introducinginnovationsthatwillacceleratesustainablenetworkdeploymentinthemarket.

•Incorporatingrenewableenergysolutionsintotheproductportfolio.

•nablingemissionsreductionsinotherindustrialsectors.

urresearchportfolioaddressesallaspectsofenergyefcientnetworking:wirelessandxedaccess,routingandswitching,opticaltransport,newprotocolsandcodingschemes,applicationsandcomponents.

AcmxamplesofAlcatel-Lucentinnovationsthatmakecommunicationandnetworksmoreenergyefcientinclude:

• w Acc:Architecturesthatutilizemodularhardware(e.g.base-stationsonachip),virtualizationandcloud-computing.helightadio™solution(seepage48)isonesuchenablerfor

energyefcientmodularbase-stationsthatcouldbeusedtoextendthenetworkinregionswheregrid-electricityisnotreadilyavailable. Activeantenna arraysconserve wirelessbasestationenergyandsignicantlyreducepowerlossesbyeliminatingradiofrequency(F)feedercables.heyaccomplishthisbyintegratingsignalprocessing,signalgenerationandthereceiverdirectlyintotheantennaatthetopofacellsitetower.Switchingoffarraysegmentswhencelltrafcislowresultsinafurtherreductioninthedemandforpower.

• fx Acc: Wehavecreateddynamicandrate-adaptiveopticallinksbetweenthecentralofceandthehome/enterprisethatcandramaticallyreducecustomerpremiseequipment

energyconsumptionbytransmittingonlyuser-usefuldata.

• r a sc: Improvingtheenergyefciencyofpacketprocessingandtheinterconnectfabric,thepredominantsourceofenergyconsumptionwithinarouter/switch.heproposedbuildingblocksareamulti-chiprouteramenabletoenergy-follows-loadperformanceforpacketprocessing,photonicinterconnectsbetweentheelements,andintelligentcomputationandprocessingthatenablemorepreciseloadbalancing.

• Aca: Capabilitiesand architectures that supportimmersivenetworkcommunication,avisionaryapplicationthatenablespeopleindifferentlocationsto communicate

andcollaborateasiftheywereinthesamespace.Immersivecommunicationprovidesalow-carbonalternativetophysicalmeetings.

• tma Maam: Wehaveinventednewtechniquesforcoolingnetworkcomponentsmoreefciently.Weapplythermalinterfacematerialsto morerapidlyconductheat,developvaporchamberstobetterdistributeheatanddevisenovelheatsinkdesignstomoreefcientlydissipateheat.ecognizingthatnearlyhalfoftheenergyconsumedbydatacentersisusedtocoolservers,wehavefocuseddevelopmenteffortsonthisarea.neresultoftheseeffortsistheAlcatel-LucentModularCoolingSolution.heModularCoolingSolutionisanimprovementoverconventionalsystemsbyremoving

heatdirectlyfromtheequipmentcabinetsatthepointwhereitisgeneratedbyelectroniccircuitry.

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PAR4 7.5 innovAtion & engAgeMent





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7.5.2EngagingforSuccess 61

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617. ENViRNMENT • 7.5INNVAIN&NGAGMN ALCATEL-LUCENT 2010




7.5.2 Enan or succe

Alcatel-Lucentbelievesthattheeco-sustainabilitychallengeistoobroadforanysingleorganizationtomeetonitsown.Asaconsequence, g a ma a a ac, assumingactiveand/orleadingrolesin numerous

collaborativeinitiatives,fromresearchconsortiaandpartnershipstostandardsbodiesandindustrygroups.Weareconvincedthatopencollaborationwillenableus,collectively,tomovetowardstheglobal,end-to-endnetworkapproachneededtofullyaddressallfacetsoftheeco-sustainabilitychallenge.

urlaunchoftheGreenouch™consortium,ourcommitmenttotheGlobaleSustainabilityInitiative(GeSI),andourengagementinWorldconomicForumeffortstocombatclimatechangeareexamplesofhowAlcatel-Lucenttranslatesitsdrivetowardseco-sustainabilityintoconcretecollaborativeinitiatives.

Alcatel-Lucentsupports effortsto promote lowcarbonICsolutionsateverylevel,fromlocalandregionalinitiativesto

nationalandinternationalefforts.

pca ga Cmmm:

•WorldconomicForumaskForceonLow-Carbonrosperity(seepage31).

•UnitedNationsGlobalCompactCaringforClimateInitiative.

•GlobaleSustainabilityInitiative(GeSI)(seepage32).

•GreenImperativeManifestofromtheBusinessfornvironmentGlobalSummit(B4).

•AllianceforelecommunicationsIndustrySolutions(AIS)–Alcatel-LucentcontributestostandardsdevelopmentforICenergyefciency(NI-)andtotheadhoccommitteestudyingenvironmentalinitiatives(GG).

•InternationalelecommunicationsUnion–Asanactivemember,

Alcatel-LucentcontributesinparticulartotheIU-FocusGrouponICandClimateChange.

•iNMI– Alcatel-Lucentis a memberof theboardalongwithchairingand/or activelyparticipatingin a numberofenvironmentallyfocusedworkgroups.

•GSMA – Alcatel-Lucent activelytakespart inthe GSMassociation’scollaborativeeffortsinvolvingcellularindustrycommitmentsandpolicyrecommendations.

g ga pc ia gAlcatel-LucentBellLabsannouncedinFebruary2011thatitwouldcontributeresearchtoacollaborativeeffortthataimstodevelopguidelinesonmeasuringcarbonemissionsfromICproductsandservices.heGreenhouseGasrotocolInitiativeisa

jointprojectbytheWorldesourcesInstitute(WI)andtheGlobal

eSustainabilityInitiative(GeSI).heguidelines,duetobepublishedbeforetheendof2011,willprovideacommonframeworkformeasuringthefootprintoftheICsector’sproductsandservices,enablingcustomerstobetterassesstheenvironmentalimpactoftheirICpurchases.Alcatel-LucentwillshareresponsibilitywithBritishelecomfordevelopingguidelinesforthe sharednetworkservicessectionofthehandbook.hefruitofthisworkwillbeacommonmeasurementandreportingformatthatallowscustomers,governmentsandotherkeystakeholderstoevaluatethecarbonimpactofICsolutionsagainstoneanotheronaconsistentbasis.hisisimportantbecausemovingtoalow-carboneconomyrequirespickingsolutionsthatofferboththelowestoverallcarbonimpactandtheabilitytooffsetthemostcarbon.

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7.5.2 Enan or succe 61






7.5.2.1 s Maam eamAlcatel-LucentCBenVerwaayenhaslongbeenoneofurope’sleadingadvocatesofthelow-carboneconomyasafundamentaldriverofinnovationandgrowthamongbusinessandgovernmentleadersandstakeholdersaroundtheworld.InadditiontohisactiveparticipationinnumerousWFevents,heisChairmanof

theConfederationofBritishIndustry(CBI)ClimateChangeBoard.SincejoiningAlcatel-Lucentin2008,BenhasreinforcedtheGroup’scommitmenttoghtclimatechangeandprotecttheenvironmentbyinsistingupon:

•Developmentoflow-carboncommunicationstechnologysolutions.

•eductionoftheGroup’sowncarbonfootprint.

•articipationby Groupexecutivesand specialists inkeydiscussionsworldwidegearedtocombatingclimatechange.

In 2010, Ben Verwaayen enthusiastically encouraged theformationofGreenouch™,theglobalconsortiumthataimstomakenetworks1,000timesmoreenergyefcient(seenextpage).Greenouch™hasbeenrecognizedbystakeholdersworldwide,includingtheWorldconomicForum,asanindustrialbestpractice

fortoday’sglobalsustainabilitychallenge.

Morerecently,Alcatel-Lucentstrengtheneditscommitmenttosustainabilitybythelaunchofarevolutionarygreentechnologysolution:lightadio™, a breakthrough in mobile and broadbandinfrastructuretechnologythatstreamlinesandradicallysimpliesmobilenetworkswhileshrinkingtheircarbonfootprintbymorethan50percent.hisrevolutionaryapproachtomobilenetworks,publiclyannouncedinFebruary2011,willalsohelptoaddressthedigitaldivideandruralinclusion,anothermajorglobalchallenge,byenablingtheexpansionofbroadbandwirelessconnectionsvirtuallyanywherethereispower–electricity,windorsolar.

BenandAlcatel-Lucenthavesignedontomajorcommitmentstothelowcarboneconomy:

•WorldconomicForumlettertoG20headsofstateontheimportanceofpublic/privatecollaborationto tackleclimatechange.

•BusinessfornvironmentGlobalSummit (B4)he GreenImperativeManifesto.

•CopenhagenCommuniquéonClimateChange.

Ben VerwaayenAlcatel-LucentChiefxecutivefcer

Watch the video

o m ma ca ac

a mm am

cm m ca cm a

cm, c a

a ac cma ca.






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7.5.2.1 senor Manaement 62Enaement

7 .5 .2 .2 Greenouch™Research 63Consortium

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7.5.2.2 gtc™ rac

Cm h e G re eno uc h™ C on so rt iu m i s aglobal research initiative dedicated toachieving a dramatic improvement intheenergy efficiencyof informationandcommunicationstechnology(IC)networks.By2015,Greenouch™aimstodeliverthearchitecture,specicationsandroadmap—anddemonstratekeycomponents—neededtoincreasenetworkenergyefciencybyafactorof1,000fromcurrentlevels.

rganized by Alcatel-Lucent Bell Labs,Greenouch™waslaunchedinJanuary2010.

Inlessthanoneyearofoperation,itcreatedtechnologyworkgroups,generatedapipelineof morethan 20 researchprojects anddoubleditsmembershipto38,attractingtheparticipationofleadingscientistsrepresentingindustryandacademicorganizationsfromaroundtheworld.

ecognizedbytheWorldconomicForum(WF)as anindustry-ledbest practicetowardsustainability,Greenouch™unveiledthefirst technologytocomeoutof itsresearcheffortsataneventinLondoninFebruary 2011. Scientistsfrom the

consortium’smobilenetwork researchgroupdemonstratedalargescalewirelessantennasystemproofofconceptwiththepotentialtoachieveadramaticreductioninenergyconsumption(seepage31).

heconsortiumhasidentiedfourareasoffocuswheremembersbelievetheycanachievethegreatestenergyefciencies:wireless,routing and switching,wirelineaccessand corenetwork.In supportof

theseefforts, the consortiumconvenes

meetingsonaregularbasistofacilitatetheexchangeofinformationandalignmemberinitiativesinbothresearchandoperations.Greenouch’s2011goalsincludeestablishinga common reference architecture anddevelopingadetailedresearchroadmapandkeymetricsto2020.heconsortiumalsoplanstoorganizeaninternationalforumtofostercooperationandtheexchangeofideasonenergyresearchtopics.

t gtc™ ecAa smroviding service to users of mobile

networkstodayistypicallyaccomplishedbybroadcastingsignalsoverawidearea.histransmissionmethod usesa lot ofenergy, much of it wasted. ervasiveuseofthismethodinspiteofitsinherentinefficiencyhaspersistedduetoserviceproviders’focusonincreasingthecapacityofmobilenetworksratherthandecreasingenergyconsumption,anaturaloutcomeofaccommodatingtheexponentialgrowthintheuseofmobilenetworksinrecentyears.

he potential for improvement in theenergyefficiencyof wireless networks

attractedtheattentionoftheGreenouch™researchprogramandledtothecreationofaworkgrouptoaddressit.hegoalwastotargetthetransmissionofinformationinamorefocusedwaytowardsanindividualuser(either line-of-sighttransmissionorreflection off nearby objects) withoutsacricingperformance.he objectiveis to achieve muchmoreefcientpowerusage–justenoughpowertoprovideadequateservice–thanwhatis

possiblewith thebroadcasttransmission

method inwide usecurrently.he largescaleantennasystemsolutionthatresultedfrom thisresearch andwassuccessfullydemonstratedin February2011reducespowerconsumptionbyincreasingthenumberofantennasandusingintelligentcomputationandprocessingtocombinetheminanewway.hedemonstrationmadeuseof16antennas,anumberthatisaboutfourtimesgreaterthanthenumberofantennasusedinthemostadvancedcongurationsdeployedtoday.helargescaleantennasystemisaproof-of-conceptthatpointsawayforwardtowardsfuture implementations thatwill

ultimatelyinvolvehundreds of antennasandcorrespondinglyareductioninpowerconsumptionthat ishundredsof timesgreaterthanwhatisachievabletoday.

Read more Watch the video






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7 .5 .2 .1 SeniorMa na ge me nt 6 2Engagement

7.5.2.2 greenTouc™ Reearc 63Conortum

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Unvert Partnerp

ir CsETheIrishCentreforScience,ngineering&echnology(CS)isapartnershipbetweenAlcatel-LucentBellLabsIreland&UKresearchclusterandtheCentreforelecommunications ValueChainesearch(CV).Itsresearchgoalsincludenewenergy-savingheatdissipationtechniquessuchasheatdissipationthroughvaporchambersandconversionofwasteheatintoelectricity.SupportedbyScienceFoundationIreland,CV isa collaborative researchcenterinvolvingsevenIrishuniversities.

Melbourne LabAlcatel-LucentBellLabs,theUniversityofMelbourne

andtheVictorianStateGovernmentjointlyestablishedaresearchcenterin Melbourne,Australiadevotedtoadvancingresearchinenergy-efcientnetworksandtechnologies.heCentrefornergy-fficientelecommunications (C) combines Bell Labs’extensiveexperienceincollaborativeresearchandtheUniversityofMelbourne’sworld-classresearchintelecommunicationsnetworkinfrastructure.

gERi n oreaAlcatel-LucentBellLabsisworkingwiththeGachonnergyesearchInstitute(GI)ofKorea’sKyungwonUniversitytodevelopinnovativebusinessesmodelsforthe next-generationsmart powergrid (Smart

Grid).heintentofthejointresearchprogram,calledGrid2.0,istofundamentallyenhancetheefciency,reliability,security,andintelligenceofelectricpowergridsbyexploitingtheconvergencebetweenelectricpowersystemsandinformationandcommunicationstechnologies.

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7.5.2.3 pa ea paInresponsetoacallfromtheUCommissioninJanuary2010,Alcatel-LucentexpresseditscommitmenttotheU’spost-2010agendaandlinkedwiththeUCommissionDepartmentsontheInformationSociety, ransportationand nergy, Climate andnterprise.

heGroupactivelysupportstheIC4Forum,amulti-sectorinitiative.LaunchedinFebruary2010,fourassociations(Digitalurope,GeSI,JapaneseBusinessCounciluropeandechAmericaurope)createdtheICfornergyfciency(IC4)ForumtorespondtoanUCommissioncallforthesectortoachieveenergyefciency.Alcatel-Lucenthasbeensupportingtheforum’sworkinallthreeofitsworkinggroups.

Alcatel-Lucent is working with Digitalurope to promoteapplicationsinsmartgrid,smartmeteringandsmartbuildingsasawaytolowergreenhousegas(GHG)emissions.

Alcatel-LucentBellLabsplaysaleadingroleinAH,auropean

consortiumof15leadingtelecommunicationsserviceproviders,componentandinfrastructurevendorsandacademicinstitutionswhosegoalistoreducetheenergyconsumptionofadvancedwirelesscommunicationsnetworksby50%beforetheendof2012whilemakingbroadbandwirelessserviceavailabletoagreaternumberofpeopleinurope.

roadband Code o ConductAlcatel-Lucentasamongthe21companiesthatsignedthe

Ebaa C CcinSeptember2010.hisevent,

inhichE CommissionereelieKroes participated,as

sponsoredbytheGlobaleSustainabilityInitiative(GeSI).he

signatories,hoincludebothequipmentsuppliersandusers,

committomanufacturingloerenergy-consumptionequipment

inenergy-efcientdatacenters.hiscommitmentillleadto

savingsofuptoapproximately25whperyearinconnection

iththeprovisionof broadbandequipmentand alsoto

signicantreductionsintheenergyconsumedbydatacenters.






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7. Envronment 41 8.OurPeople 66 9.Philanthropy 78

10.SupplyChain 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

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7 .5 .2 .2 Greenouch™Research 63Consortium

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7.5.3 Award and Reconton

b g lte pc ia n AmcaAwardedtoAlcatel-LucentbyInformaelecomsandMediainNovember2010,theBestGreenLroductawardrecognizesworkthatmakesLongermvolution(L)cellulartechnology

moreenvironmentallyfriendlyinNorthAmerica.

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g it Aa (Jaa) Acalc Ma CAwardedbyJapan’sGreenIromotionCouncil/GreenIAward,Alcatel-LucentwontheJury’sSpecialAward2010intheIpower- saving categoryfortheAlcatel-LucentModularCoolingSolution(MCS),apower-savingcoolingsolutionfordatacenters.

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g da g p (fac) & saa e

e Aa 2010 (ea Cmm) Acalc Aa e pamheAlternativenergylabandpilotsite,openedin2009neararis,istheworld’srstandonlyalternativeenergylaboratoryandpilotsitededicatedtotelecommunications.

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ema pc Ac (u.s.)Alcatel-Lucent wasrecognized in 2009for completing acorporation-wide inventoryof greenhouse gas emissions,settingaggressivelong-termreductiongoals,and reportingprogressannuallytotheA.Alcatel-LucentparticipatedintheA’sNationalartnershipfornvironmentalriorities(N)

forrecyclinglead-acidbatteriesremovedfromourcustomers’telecommunicationsnetworks.Alcatel-Lucentrecycled1,269metrictonsofbatteriesfrom2008through2010resultingintherecoveryof888metrictonsoflead.

C la oc (Clo) la i pacc aa 2010heAlcatel-LucentUniversity“GoingGreen:fromapertoDFCourseMaterials”programwasawardedaspecialcerticateofmerit byChief Learning fficermagazine’sLearningInracticeAwardstorecognizetheteam’soutstandingworkintheInnovationcategory.In 2010,30%of allAlcatel-LucentUniversityclasseswerereplacedpaper-basedcoursewarewithelectronicDFstudentmaterials.

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8. ur People 66 9.Philanthropy 78


Glossary 107■■■■■■■■■■■■■■■■ our people

8.1ValuingourPeople 67

8.2Alcatel-LucentValues 68

8.3EmployeeBreakdon 69


8 .5Emp loyee H ea lthandSa fety 7 0

8.6Diversity&EqualOpportunity 71

8 .7HumanCa pi ta lDevelopm ent 7 4 8.8alentDevelopment 75

8.9alentAttractionandRetention 76

8.10work/lifeBalance 77

8.11ManagementofReorganization 77andRestructuring

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678. UR PEPLE ALCATEL-LUCENT 2010




8.1 vAluing our people

urhumanresourcespoliciesandpracticesaimtondinnovativewaystoensurethattheongoingtransformationofAlcatel-Lucent

trackswiththechangesaffectingourclientsandmarketsandthe

worldatlarge.Becauseweserveglobalmarketsandcustomerswhodobusinesson aglobalscale,ourapproachtohumanresourcesmanagementanddevelopmentislikewiseglobal.At

thesametime,presentin130countries,Alcatel-Lucentnurturesavastweboflocalpartnershipsandrelationships–withcustomersofcourse, butalso withsuch stakeholdersassuppliers andsubcontractors,localcommunitiesandeducationalinstitutions.

Aspartofourcommitmenttofulllcorporateresponsibilitiesonthelocallevel,weencourageouremployeestocontributetotheircommunitiesbyvolunteeringprogramsorganizedthroughtheAlcatel-LucentFoundation.olearnmore,pleaseseepage82.

he diversity of ourworkforce, ourclient baseand the

communitieswherewedobusinesssupportsourongoingeffortstodevelopinnovativeapproachestoawiderangeofbusiness

and technologicalchallenges.We believe thatinnovation,whichdependsonbreakingdownboundariesandmakingnewconnections,isstronglylinkedtodiversity.

Asweendeavortoremoveboundarieswithinthecontextofourquestforconstantinnovationinallareas,wearemakingincreasinguseofthetoolsdevelopedwithinourowninformation

andcommunicationtechnology(IC)sector.Forexample,weareusingsocialnetworkingtoencouragemoreopencollaborationacrosstheorganization.Wehavecreatedaglobalinternaljobsmarket,toexpandthejobandcareerpossibilitiesopentoall

employees.Socialnetworkingtools,suchasngageinAlcatelLucent, arehelpingus nurturethe development of skil ls

throughouttheGroupbyidentifyingneeds,highlightingtalentsandsupportinglearning.

Innovativesocialnetworkingtoolsarealsooneofthewayswenourishtherich,ongoingdialoguebetweenemployeesandmanagementthatwebelievearecriticaltoourbusinesssuccess.

hesekindsofexchangesenableeveryonetocomprehendandembracetheGroup’sstrategicgoalsandtounderstandhoweachcancontributetotheirrealization.

8.1 Valun our People 67






8 .7HumanCa pi ta lDevelopm ent 7 4

8.8alentDevelopment 75




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tama a m cma.

tama a ,

a accma m .

Pierre BarnabéxecutiveViceresident,CorporateHumanesourcesandransformation

Watch the video

100 +Nationalitiesarerepresented

amongouremployeesatalllevelsoftheorganization.

79,000 +mployees

in130countries.

Ernt & youn statementAlcatel-Lucent has developed a process to encourage

mobilityithinthecompany.Employeesregardedashighpotentials,identiedthankstothecommitmentofmanagers

andhumanresourcesprofessionals,aretochangeposition

andmovetoanotherlevelofresponsibilityithin3years.

EventhoughAlcatel-Lucenthasnotyetreacheditsobjective

set for 2011 of 80% of high potentials having changed

positionithin3years,thisobjectiveremainsachievable

sincetheprogramisbeinggraduallyimplemented.

688. UR PEPLE ALCATEL-LUCENT 2010




8.2.1 Corporate Value

8.2.2 global human Rt Polc

ItisthepolicyofAlcatel-LucenttoprotectandenhancethehumandignityofeveryonewhoworksfortheGroupandanyonewhohasdealingswithit.Weconductbusinessinmanycountriesandbelievethatourproducts,servicesandjobsimprovethequality

oflifeineachofthesecountries.Alcatel-Lucentsupportsand

respects,withinitssphereofinuence,theprinciplesofhumanrightsdenedinthe UnitedNationsUniversalDeclarationofHumanights,theInternationalLaborrganization’sfundamentalconventionsandtheGlobalCompact.

scca:• Wecomplywithallcountryandlocallawsintheareasinwhich

weoperate.

• Weadheretoasetofprinciples,denedbytheAlcatel-LucentStatementofBusinessrinciples,thatguideourcorporateintegrityandbusinesspractices.

• Weprohibitdiscriminationagainstanyemployeeorjobapplicantonthebasisofage;disability;race;sex;color;religion;creed;nationalorigin;citizenship;sexualorientation;genderidentity,characteristicsorexpression;maritalstatus;coveredveteran

status;oranyotherprotectedclassandwilltreateveryonewithdignityandwithfullrespectfortheirprivatelives.

• WeensurethatemploymentwithAlcatel-Lucentisbyfreedomofchoice.

• Weupholdfreedomofassociationandtherightofanyindividualtobefairlyrepresented.

• Weofferemployeesremunerationpackagesthatmeetorexceed

thelegallyrequiredminimum.• Wecomplywithmaximumhoursofdailylaborsetbylocallaws

andcomplywithovertimepayrequirements.

• Wesupporttheeffectiveeliminationofallformsofcompulsorylaborandchildlabor andwillmake thisa criterionin the

selectionandmanagementofoursuppliersandcontractors.

• Weprohibitactionsthatcreateanintimidating,hostileworkenvironmentincludingcorporalpunishment,harassment,verbal,written,physicalorpsychologicalabuse,threatsorintimidation

astheseareinconsistentwitharespectforhumandignity.

• Weprohibitactionsthatthreatenorinsinuatethatanemployee’sorapplicant’ssubmissiontoorrejectionofsexualadvanceswillinuenceanypersonneldecisionregardingthatemployee’sor

applicant’semployment,wages,advancement,jobassignment,

oranyotherconditionofemploymentorcareerdevelopment.• Weprohibitretaliationagainstorotheradverseactionsagainst

thosewhoreport,ingoodfaith,suspectedviolationofthelaw

orpolicy.Anyemployeewhobelievesthattheyhavebeensubjecttoretaliationshouldreporttheissueimmediately.

8.2 AlCAtel-luCent vAlues

8.2.1 Corporate Value 68

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8.2 AlcatelLucent Value 68










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Cm f:Weexisttoserveourcustomers.ursuccesswillbedeterminedbyhowwellweperformforourcustomers.ia: We are intuitive, curious, inventive,practicalandbold,whichallowsustocreatenewideasforourcustomers,ourbusinessandemployees.heseideascome fromanywherethroughout ourglobaloperations.tam: Success requires teamwork. We arecollaborativeandrespectthecontributionsofeachpersontotheteam’ssuccess.rc: Weareaglobalcompanywithmanycultures.Werespectandembracepeopleandperspectivesfromallovertheworld.Acca: Wedowhatwesaywewilldo.Weownacollectiveresponsibilitytowardscustomers,colleagues,communitiesandshareholders.


8. UR PEPLE



Attheendof2010,ourtotalemployeeheadcountwas79,796.urbalancedglobalpresencereectsourconstantaimtodrive

innovationeverywhereourtechnicalenvironmentischangingandtoremainclosetocustomers.

8.4.1 Collectve arann

Morethan 68%of Alcatel-Lucentemployeesare coveredbycollectivebargaininglaboragreements.Discussionsconcerningorganizationalchanges aremanaged ona regionalor countrybasis;allworkforcereductionsarecarriedoutwithgreatcarefor

theindividualsinvolvedandinfullcompliancewithlocalrulesand

regulations.Numerousconsultationstookplacein2010.

ea CmmAlcatel-Lucentiscommittedtofosteringanopendialoguewithemployeeson importantdecisions directlyaffectingthem.t Acalc ea Cmm (eCid) a a maam a ea ma ca a .hecommitteeiscomposedof30members,ofwhomvemakeupaliaisingcommittee,includingrepresentativesfromBelgium,France,Germany,ItalyandSpain.

Franceisalsoinchargeofthesecretariatofthecommittee.he uropeancommitteemeetsatleasttwiceayeardependingonAlcatel-Lucent’snews.In2010,theuropeancommitteemet

inMarchandctober;anintermediatemeetingwiththeliaisingcommitteetookplaceinJuly.heCIDwasrenewedfortwoyearsin2009,whennewmembersfromomaniawereadded.

InFrance,a Group-levelcommittee representingunionizedemployees (Comité deGroupeFrance) has been operatingsince1981.Composedof30tradeunionrepresentatives,the

committeemeetsatleasttwiceayear(generallyinJuneandDecember),dependingonevents.LiketheuropeanCommittee,themembershipintheFrenchCommitteewasrenewedfortwoyearsin2009.Duringthenalquarterof2010,allAlcatel-Lucent

companiesandsubsidiariesinFranceheldelectionstoworkercouncilsandtheFrenchGroupCommitteewasrenewedatthisoccasionbasedontheresultsoftheseelections.

8.3 eMployee breAkdown

8.4 eMployee diAlogue

●France●therWesternurope

●estofurope●Asiaacific

●NorthAmerica

●estoftheWorld

24.2%

30.7%

7.9%

9.8% 12.2%

15.2%

BREAKDOWN

OF EMPLOYEES

BY GEOGRAPHICAL

AREA IN 2010

8.4.1 Collectve arann 69

8.4.2 InternalCommunication 70andDialogue

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8.3 Emploee reakdown 69









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reakdown o Emploee b georapcal Area n 2010

France 9,751

therWesternurope 12,169

estofurope 6,297

Asiaacic 24,464

NorthAmerica 19,285

estoftheWorld 7,830

708. UR PEPLE • 8.4MLYDIALGU ALCATEL-LUCENT 2010




8.4.2 internal Communcaton and Daloue

Westronglybelievethatourbusinesssuccessdependsonbuildingthestrongestpossiblecommitmentfromourworkforce.hiskindofcommitmentrequiresaprofound,ongoingexchangebetween

employeesandmanagementtoensurebroaddedicationtothe

Group’sstrategicgoalsandasharedunderstandingofhoweachemployeecancontributetothoseobjectives.

Wearecurrentlyupdatingourapproachtoperformancemanagementtoreinforcetheroleofpeoplemanagersandnurtureonongoingdialogbetweenmanagersandemployees.hegoalistoensurethatallGroupmanagershavetheskills,toolsandinformationneeded

todrivealessformalbutcontinuousandstructuredexchangewithemployeesatalllevelsoftheorganization.

osupportdialogueandcommunication,wehavedeployedthelatestgenerationofcommunicationstoolsthroughouttheGroup.

• urWeb2.0serviceplatformisaccessibleinallcountrieswhere

wearepresent.MorethanhalfoftheGrouppopulationactivelyusesitssocialmediafunctionstodiscuss,blogandcomment.

• LaunchedinMarch2010,ngageisasocialnetworkingplatformthatenablesemployeestocollaborateinrealtimebysharing

insights,linksanddocuments.Aspartofthelaunchprocess,informationalCafengagesessionsarebeingheldinlocationsaroundtheworld.

• Aseriesof ‘owerHours’and otherinformativeregionalwebcastssupportinterdisciplinaryeducationandprovideanopportunityforemployeestovirtuallymeetpeopleacrosstheorganization.

InadditiontoGroup-levelandregionalinitiatives,localHandcommunicationsspecialistssponsorarangeofactivities.InBrazilforexample,ALU-Vwaslaunchedin2010toprovidelocalandcorporatenews‘ataglance’onVmonitorsplacedthroughout

facilities.

8.5 eMployee heAlth And sAfety

Alcatel-Lucentemployeesfacerelativelylimitedrisksrelatedtohealthandsafetyatwork.Nevertheless,thetelecommunicationsindustryinvolvessomehazardsthatrequirespecialattention,

including,butnotlimitedto,workingatheights,nearhighvoltageequipment,orinthevicinityoftransportationsystemsandroutesandinareasofpotentialexposuretoelectromagneticelds.

heGroupworkswithcustomersand industry groupstoappropriatelyidentifyrisksandimplementmanagementsystemstoeffectivelyminimizetheriskstoitsemployees,customersand

residentsofcommunitieswhereoperationsarelocated.

8. 4.1 CollectiveBargaining 69

8.4.2 internal Communcaton 70and Daloue

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8.5 Emploee healt and saet 70







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Emploee atacton urveAllemployeesareinvitedtoparticipateinasimple,13-question,

eb-basedsurveyhichaddresseslevelsofengagementin

specicareaslinkedtochange.

Intotal,46,761employees(57.5%),representingallbusiness-lines,

regions,andcentralfunctions,participatedin2010,compared

to48%in2009.hereassignificantimprovementinall

areasmeasured,hichincludeunderstandingofourstrategy

andho eachindividualcontributes toit, thelevelof

employeecommitment,andprogresstoardssimplifyingand

streamliningourprocesses.

46,761employees,i.e.57.5%participatedinthe2010employeesatisfactionsurvey.

52,000employeescollaborateinrealtimethroughasocialnetworkingplatform.

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Alcatel-Lucent activelypromotesgender diversity and equalopportunityformenandwomen.heGroupaimstoofferequalaccesstojobopportunitiesandjobtrainingaswellasequalpayforequalwork.

A maj m a ac fac 2010 a a a qa am.heagreementcallsforpromotingwomencandidatesforalljobopenings,especiallyin

management,progressiveeliminationofsalarydisparities,hiringmorewomenengineersandmeasurestoimprovework/lifebalanceincludingmaternityleave.

In NorthAmerica, ouranti-harassment & non-discriminationpoliciesarepostedatallAlcatel-Lucentfacilities.Anti-harassmentandnon-discriminationtrainingisrequiredofallnewhiresduringon-boardingprocessandforallemployeeseverytwoyears.he

thicsointreportingtoolprovidesallemployeesandcontractorswiththeopportunitytoreportsuspectedharassment,discriminationandretaliation.Allreportsareinvestigatedinatimelymannerby

HInvestigators,withtheassistanceofthelegalteamandHManagementasneeded,followedbytimelyappropriateaction.

IntheU.S.,Alcatel-LucenthasanAfrmativeActionplanforwomen,minorities,veterans,andpersonswithdisabilities.InCanada,Alcatel-Lucenthasanmployeequitylanforwomen,

visibleminorities,aboriginals,andpersonswithdisabilities.

wm’ la nheWomen’sLeadershipNetworkisoneofsevenAlcatel-LucentmployeeBusinessartners,voluntarygroupsofemployeeswhocometogetherinsupportofcommongoalsandinterests.Withactivechaptersworldwide,theWomen’sLeadershipNetworkseekstoprovide

anavenueforallwomeninAlcatel-Lucenttodemonstrate,shareand

growtheirleadershipabilities,toprovideanenvironmentforwomentomentorandbementored,andtoserveasapositivepresencewithinthebusinessandthroughoutthecommunitiesinwhichwework.

8.6.1 Multcultural Compan

w m a 79,000 m 130 c ma 100 aa,wehaveemployeesofallages,fromallwalksoflifeandfromverydiversebackgrounds.hisisagreatsourceofourstrengthandwermlybelievethatitallowseachofustodevelop

newwaysoflookingatissuesandtocontributeinnovativeideasandcreativity.Intoday’sglobalenvironmentwebelievemorethaneverthatitiscrucialtounderstandthecultures,customsandneedsofemployees,customersandregionalmarkets.Asaglobalenterprise,

weseektoensurethatouremployeebodyreectsthediversityof

ourbusinessenvironment.urStatementofBusinessrinciplesandourHumanightspoliciesclearlyconrmourengagementtorecognizeandrespectthediversityofpeopleandideas,andtoensureequalopportunities.

In2010,we focusedon integratingmembersofthe so-calledY-Generation(individualsbornbetweenthelate1970’sandthemid-1990’s)throughpartnershipwithschoolsanduniversitiesandtargetedrecruitingplans.WelaunchedaGenerationDiversityroject

intheBeneluxcountriesandotherlocalprogramsintheFrance,GermanyandtheU.S.:allaimtobetterunderstandthespecicworkhabitsandexpectationsofvariouspopulationsandcommunities.

8.6 diversity & euAl opportunity

Local ntatve:

Amerca’ Top Corporaton

heWomen’sBusinessnterpriseNationalCouncilnamedAlcatel-Lucentto itsannual listing of America’s opCorporationsforWomen’sBusinessnterprisesin2010forthefourthconsecutiveyear.hisistheonlynationalawardintheU.S.honoringcorporationsforworld-classprogramsthatcreatelevelplayingeldsforwomen’sbusinessenterprisestocompeteforcorporatecontracts.

Read more

Equalt Reconzed n spanInDecember 2010,Alcatel-Lucentwasamong36Spanish companies awarded with the nationaldistinction of “Companyquality” (Igualdaden la

empresa) bytheSpanishMinistryofHealth,Socialolicyandquality.

Read more

8.6.1 Multcultural Compan 71

8.6.2 on-discrimination, 72EqualOpportunity

8.6.3 Accessibleworkplace 73

8.6.4Seniors 73 ■■■■■■■■■■■■■■■■






8.6 Dvert & Equal pportunt 71






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8.6.2 Nondcrmnaton, Equal pportunt

Collaborationandpartnershipswithschoolsanduniversitieshelpsusbetterintegratemembersofminoritygroups.IntheU.S.in2010,Alcatel-Lucentparticipatedin64events,includingcareer

fairs,regionalconferences,andstudentinteractioneventssuch

asinformationsessions,Alcatel-Lucentsitetoursandnetworkingevents.MembersofourUniversityelationsteamparticipateinsuchhighereducationgroupsastheNationalSocietyofBlack

ngineers,SocietyofWomenngineers,SocietyofHispanicrofessionalngineers,AmericanIndianScience&ngineeringSociety,Instituteoflectrical&lectronicsngineers,taKappaNu,andHistoricalBlackColleges&Universities.

AspartofAlcatel-Lucent’scommitmenttodiversity,ourhumanresourcesteamsinNorthAmericasupportemployeebusiness

partnergroupssuchas QUAL( Gay, Lesbian, Bisexual,&ransgendered);ABL(AfricanAmericans);IDAL(IndividualsDedicatedtonablingAccessibilityinLife);4A(AsianacicAssociation for Advancement); HISA(Hispanic Association

ofAlcatel-Lucent);LUNA(UnitedNativeAmericansofAlcatel-Lucent);WLN(Women’sLeadershipNetwork).

s cmm aac qa m a m, b vaa j 38 Ceo J 21, 2010 Ceo sam s wm’ emm pc –eqa Ma b.hisworldwideinitiativewaslaunchedonMarch8,2010at

theU.N.bytheU.N.DevelopmentFundforWomen(UNIFM)andtheU.N.GlobalCompact.

A a cmmm qa, Ceo b

vaa aca c ac geqa saa a da 2011 maacma. b a a wef gpa g 20112012.heWFGenderarityGroupisamulti-stakeholdercommunityofhighlyinuentialandcommittedleaders–50%womenand50%men–frombusiness,politics,academia,mediaandcivilsociety.Itaimstoidentifythemost

successfulinterventionsforclosinggendergapsanddevelopaframeworkforgenderparitythatcanbewidelyreplicated.Itmeetsonceayear,ontheoccasionoftheWFAnnualMeetingatDavos.

8.6.1Multi-culturalCompany 71

8.6.2 Nondcrmnaton, 72Equal pportunt

8.6.3 Accessibleworkplace 73

8.6.4Seniors 73 ■■■■■■■■■■■■■■■■












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Glossary 107■■■■■■■■■■■■■■■■

gender Equalt Project indaAlcatel-Lucentisamongsevenmultinationalcompaniesthat

helpedtheg eqa pjc launchitsground-breaking

globalcerticationandassessmentmethodologyforgenderequalityintheorkplaceinJanuary2011.heGroupgot

involvedearlyin2010henitdecidedtoorkiththeProject

totestandstreamlinetheassessmentmethodologyaspart

ofapilotprogram.Asthetargetlegalentityforthepilot,e

choseIndia,recognizedasachallengingmarketbothfrom

anindustryandglobalperspectiveongenderequality.he

assessmentmethodologyisdesignedtoprovideaclearpicture

ofacompany’sprogressongenderequalityasmeasuredin

termsof equalpayfor equivalentork, recruitmentand

promotion,trainingandmentoring,ork-lifebalanceandthe

companyculture.Alcatel-Lucentalsotookpartinbestpractice

orkshopsiththeGEPinlate2010andearly2011.

Read more

738. UR PEPLE • 8.6DIVSIY&QUALUNIY

Content Summary 02




8.6.3 Acceble Workplace

Alcatel-Lucentiscommittedtofostertheprofessionalintegrationofdisabledpeopleintoitsworkforce.heGrouphasdenedandimplementedageneral,proactivecompanypolicy,whichaims

atghtingallformsofdiscriminationandatincreasingdiversity

acrossAlcatel-Lucent.

8.6.4 senor

Alcatel-Lucentseekstosupportitsemployeesthroughplannedcareerevolutionsthatincreasinglyinvolvemultipledisciplines

andskillsets.hisisachievedthroughacombinationoflong-termfollowup,mid-careerinterviewsanddedicateddevelopmentandtrainingprograms.Mentoringprogramshelpusleveragein-houseknow-how,experienceandbestpractices.

MentoringisoneofthecornerstonesoftheGénérations&alents initiative launchedby Alcatel-LucentFrance in early2011.

DevelopedinpartnershipwithFrance’snationalunemploymentagencyformanagers(AC),theprogramseekstopromotediversityacrossgenerationswithinthe Groupandsupportemployeesastheybuildlifelongcareerpaths.Inadditiontomentoring,Générations&alents involvesmid-careerinterviews

duringwhichemployeesmay,iftheywish,reviewtheiroptionsandpreparetheirfuture.

Local ntatve:

InFrance,aspartofanagreementwithtradeunions,theGrouphascommittedtorecruitatleast80disabled

employeesbytheendof2011aspartoftheMissionHandicapprogram.Beyondtherecruitments,MissionHandicap requires Alcatel-Lucent to ensurethatdisabledemployeesbenefitfrom easierworkplaceaccessibility,workstationadjustments,telecommuting,dedicatedequipmentandaccommodationfacilities.riginallycreatedin 2008,the Mission Handicapagreementhasbeenrenewedthroughtheendof2011.In2010,theGroupcreatedanon-protassociationinFrance,called @talentegal (atequaltalent),tohelpdisabledstudents follow post-graduate studies inengineeringorothereldsandgainemploymentatAlcatel-Lucent.Studentsparticipatinginthe @talentegal

programbenefit froman internship orother workexperienceatanAlcatel-LucentlocationandspecictrainingprovidedbytheGroupanditspartners.I n F r an c e, A l ca t el - Lu c en t ha s a l so e s t ab li s he dpartnershipswithgroupsthatsupportthedisabled,suchasBraillenetandtheFondationGarches .hanksto our partnershipwith JobinLive, Alcatel-LucentalsotookpartinthelaunchofHandivisio,aprograminvolvinginstallationofvideo-recruitmentterminalstohelpdisabledstudentscreateandbroadcastvideoresumes.IntheU.S.,reasonableaccommodationsareprovided

forpersonswithdisabilities.Managersareencouragedto,andinmostsituationsdo,makeaccommodationsto employeeswherever possible. AccommodationrequeststhatcannotbesatisedbymanagersarereferredtotheAccommodationeviewBoardtoensurethatreasonablerequestsarenotdenied.

8.6.1Multi-culturalCompany 71

8. 6.2 on-discrimination, 72EqualOpportunity

8.6.3 Acceble Workplace 73

8.6.4 senor 73 ■■■■■■■■■■■■■■■■












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74

Content Summary 02


8. UR PEPLE



heHumanesourcesLearning&AccreditationorganizationistheGroup’spremierlearningorganization,providingcustomersandemployeeswithtargetedlearningservices.In2010,theorganizationdeliveredanaverage17.5hoursof trainingper

employee,comparedto15.5hoursthepreviousyear.About38%oftrainingwasdeliveredviae-learning.

In2010theLearning&Accreditationorganizationlaunchedaprofoundtransformationeffort.hegoalistomorecloselyaligntrainingandlearningknow-howandcapabilitiestocurrentandfuturecustomerneeds.histransformationaimstoapproachlearningasabusiness,focusedongrowth,therebyincreasing

perceivedaddedvaluewhilereducingSG&Acosts.heapproachalsoseekstomorecloselyalignlearningprioritiestocustomerandinternalneedswhilebalancingcustomerproximitywithglobalizationtoenhanceproductivity,operationalefciencyandresourcesharing.

8.7.1 global framework

As partof thetransformationprogram, wehave launchedp@Acalc, a g a accaa m am c cmca . Led by our Alcatel-Lucent University, eople@Alcatel-Lucentfocusesonensuring16keyjobrolesintheareasofservices,pre-sales&salesand&D.Implementingthisjob-orientedapproach,eople@Alcatel-Lucentreinforcesthelinks

betweentrainingandworkforceplanning.vertime,theeople@Alcatel-LucentframeworkisdesignedtoencompassalloftheGroup’slearninginitiatives.

8.7.2 eLearnn

Morethanone-third(38%)ofinternaltrainingandeducationiscarriedouton-line.t g’ Aao la pa,a ac, c m c, a a a . heportalstreamlinesidenticationoflearningsolutionsbyjoborarea

ofinterest:skillsdevelopment,CerticationandAccreditation,professional,managerialand leadership developmentandbusinesstransformation.

Inaddition,theLearning2.0channel ontheAlcatel-Lucent

VideoSharingServiceprovidesinformallearningintheformofinteractivepresentations.Using avariety ofmedia, suchasvideos,interactiveashandrecordeddemosdevelopedasnon-traditionallearning,theLearning2.0channelisopentoallemployees.

ngage, Alcatel-Lucentsocialnetworking platform,is usedextensivelybytheuniversityasanopenforumforlearningconsultancy,customer learning, development,delivery and

communications.heplatformhelpsencouragecreativeexchangeofinnovativeideasandlearningapproachesaswellasbestpractices.

8.7 huMAn CApitAl developMent

38%finternaltrainingandeducationiscarriedouton-line.

18rainingcentersworldwide.

8.7.1 global framework 74

8.7.2 eLearnn 74 ■■■■■■■■■■■■■■■■







8.7 human Captal Development 74





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Glossary 107■■■■■■■■■■■■■■■■

green Learnn solutonAlcatel-Lucentniversity’sGoingGreeninitiativeincludes

anecology-friendlynon-printpolicy.heideaistoreduce

consumptionofpaperinclassroomsbyprovidingstudentsithcoursematerialsaselectronicPDFfiles.Bytheendof2010,

30%ofallclassroommaterialsereprovidedinelectronicformat.

1.4 Mmployeelearninghoursdeliveredin2010

(vs 1.2Min2009).

77,322Uniqueemployeestrainedin2010

(vs 65,098in2009).

758. UR PEPLE

Content Summary 02




8.8.1 Moblt

Alcatel-Lucentinitiatedaprofoundtransformationofitsinternal

mobilityprogramswith ac ia J on a 2011.omatchinternaljoboffersanddemand,thenetworkcreatesanopenmarketwhereallemployeesarefree

toposttheirprofessionalinformation,experienceanddesiredevolutionandalljobvacanciesarelisted.

8.8.2 Remuneraton

Inadditionto providingcompetitiveremuneration packagesineachcountry,ourcompensationpolicystrivestobe clear,

straightforwardandcosteffectivefortheGroup.CompensationlevelsaretiedtobothindividualandGroupperformance.Allemployeesarepaidfairly,regardlessofgender,ethnicoriginor

disability.articularemphasisisplacedonsecuringthefutureproleofourworkforce,rewardingthedevelopmentofhighlysought-afterskillsandnurturinglong-termemployee/employerrelationships.

h pao rnAl am, ac a 2010 m a cm aac a ca,m, a a. obuildastrongleadershippipeline,

eNewALfocusesondiversifyingthetalentpool,enhancingstructured learningofferings,and increasingtalentagilityandmobilityacrosstheorganization.heprogramprovidesmethodologyandplanningcoveringtheentirescopeofskills

development,fromearlyidenticationtosuccessionplans.

8.8.3 Peronal Development

ur360° fac pam a a m atohelpleadersandmanagersidentifykey strengths and

developmentneeds,andtobuildadevelopmentplanwiththesupportofacertiedcoach.heideaistodevelopself-awarenessbyprovidingleaderswithvisibilityintohowtheyareperceivedby

colleagues.heprogram,whichisnotaperformanceassessment,aimstospreadadevelopmentculturewithintheorganizationbypromotingtheAlcatel-LucentLeadershiproleandcorporatevalues.

8.8.4 Mentorn

f cc a, Acalc a a passeor Avenir am, a c/a a ca m a aa fac.Formerlyknownas Cercle passeor télécoms ,theprograminvolves12 ICcompanies andFrenchgovernmentbodies.

passeor Avenir usessponsorshipsandmentoringtohelpyoung

peopleentertop-rateFrenchbusinessandengineeringschoolsanduniversities.

Duringthe2010-2011academicyear,Alcatel-Lucentismobilizingmorethan200volunteers:140tutorsinFranceand60intheU.S.achtutorsupervisesoneortwostudentsthroughmentoringandknowledgesharing.Inaddition,theAlcatel-LucentFoundation

encouragesallstudentparticipantstoimprovetheirnglishthroughconversationlessonswithU.S.mentors.

8.8 tAlent developMent

8.8.1 Moblt 75

8.8.2 Remuneraton 75

8.8.3 Peronal Development 75

8.8.4 Mentorn 75 ■■■■■■■■■■■■■■■■








8.8 Talent Development 75




■■■■■■■■■■■■■■■■





Glossary 107■■■■■■■■■■■■■■■■

140tutorsinFranceand60intheU.S.

in theasseportAvenir program.

80%Havebyend201180%ofourhighpotentialpopulationchangingpositionoverthreeyears.

76

Content Summary 02


8. UR PEPLE



8.9.1 Workorce Plannn

Alcatel-Lucentinitiatedaprofoundtransformationofitsworkforce

planningpracticesinDecember2010.heideaistoensurethatwehavetherightnumberofpeoplewiththerightskillsintherightplacesattherighttime.henewapproachisdesignedto

helpusbetteranticipatethedistributionandevolutionoftheGroup’shumancapitalovertimeandtoenhancetrainingandpeopledevelopmentplansasaconsequence.henewprogramisbasedonidentifyingtheGroup’smacro-populationsandtheir

evolution:&D,Sales&Marketing,SupplyChain&Logistics,Service&SolutionDeliveryandBusinessSupport.

heworkforceplanningprojectshouldresultinthecreationofa

processwhich,whenimplemented,willhaveamajorimpactoncustomersandshareholdersbyincreasingproductivity,reducinglaborcostsandshorteningtime-to-market.hefirststepin

theworkforceplanningtransformation,developingworldwideworkforceplanningpopulationshiftsscenarios,isscheduledfor

completionbytheendofQ1/2011.Implementationoftheentireprocessshouldbecompletebytheendof2011.

8.9.2 Perormance Manaement

heGroup’sperformancemanagementtoolsandprocesseswere

beingupdatedduringtherstquarterof2011.hisinitiativeaimstoachievethesameobjectivesasaseriesofrecentsweepinghumanresourcepolicyandpracticeupgrades:

• efocusonpeople

• estoreemployee/managerdialog• Investinpeopletrainingandlong-termdevelopment

t mac maam m, ca ota,c ca a c a maa a mm am a a, maa ac cc.uralentalsoaimstoenableemployees

toowntheircareerdevelopmentandtounderstandhowtheycontributetothebusinessstrategynowandinthefuture.

8.9.3 Emploee Reconton

t g Ceo ecc Aa: rc Ca am

a a a amaa c a ca c g’ama . Itis awarded once annually toan

employeeorteam,selectedbytheManagementCommittee.hecontributionmustbeonethatcanbereplicatedelsewhereintheGroup.InadditiontorecognitionwithintheGroup,thewinner(s)selectsacharitableorganizationtoreceiveadonation.

nm a a ca c am a .heserangefromsimplee-thankyoucardstospotrecognition,includingxedamountcashawards,forparticularachievements

basedonsupervisor’snomination.AtAlcatel-LucentAustralia,forexample,winnersofthe“Nightut”awardforoutstandingworkreceiveaAUD200credit.Individualemployeesorteamsselected

for“Shine”awardsreceiveagiftcreditforalocalmerchant.

8.9 tAlent AttrACtion And retention

8.9.1 Workorce Plannn 76

8.9.2 Perormance Manaement 76

8.9.3 Emploee Reconton 76 ■■■■■■■■■■■■■■■■









8.9 Talent Attracton and Retenton 76



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Glossary 107■■■■■■■■■■■■■■■■

AiEsEC

Alcatel-Lucent’sglobalpartnershipwithAISC,theworld’slargestinternationalstudentrunorganizationisapipelineofyoungleadershiptalent.verthepastsevenyears,wehaveprovidedinternshipopportunitiestomorethan300AISCmembersfrom50differentcultures.In2010alone,Alcatel-Lucentofferedglobalinternshipsto63graduates,whoworkedinavariety

of departmentsincludingCommunications,Humanesources, Marketing,Finance, ptics, SubmarineNetworksandechnologyIntroductionandSupport.ByinvestinginthedevelopmentofAISCinterns,weconnectwithyoungpeoplewhoareinternationallyminded,highachievers,andbringculturaldiversityandnewperspectivestothebusiness.

77

Content Summary 02


8. UR PEPLE



tcmmheGroup’ssupportofhome-workinghelpscontributetoabetterwork/lifebalanceforemployees.Home-workingalsoimprovesproductivitybyreducingcommutingtimeandcostsandhelps

reducerealestatecosts,operatingexpensesandenvironmental

impact.Home-workingpoliciesadaptedtolocallegislationhavebeenimplementedinBelgium,Brazil,Canada,France,Germany,Italy,Spain,U.K.andU.S.(seetablefordetails).

Ca t Acalc

elecommutingisapartofeverydaylifeinmanyAlcatel-Lucentofficesin Australia, New-Zealand,Belgium, Germany,Italy,Norway,Spain,theU.K.andNorthAmerica.InFrance,27%oftheworkforcebenefitsfromhome-based

telecommuting.ForacloserlookatthetelecommutingprograminFrance,pleaseseepage57.

sc mAs partof itseffort tocreatethe bestconditionsfor ouremployees,theGroupprovidesservicesattheworkplacetoalleviateday-to-dayconstraintslinkedtoprofessionalactivities.histranslatesintoamultiplicationofGroup-organizedorGroup-

nancedservicestoemployees.IntheU.S.andCanada,Alcatel-Lucentprovidesaresourceandreferralservicetoemployeesthroughasinglevendorwhichofferedfourweb-basedtrainingsessionsin2010.Attractingmorethan200attendeestoeach

session,thetopicsincludedwalkingforhealth,buildingapersonalandprofessionalnetwork,parentingandrelaxationtechniques.InFrance,theGroupnancesandmanagespre-schoolanddaycareservicesforemployees.

8.10 work/life bAlAnCe

8.11 MAnAgeMent of reorgAnizAtionAnd restruCturing

1.Homeworkers2.MobileHome-fceworkers3.FlexHome-fceworkers4.Virtualfceworkers5.Formalelecommuting

workers

6.Casualelecommuting

workers7.mergencyelated

elecommutingworkers

During 2010, Alcatel-Lucent Franceinitiated an ambitiousprogramofrepositioningandredistributingindustrialactivities.hegoaloftheso-calledSiteIdentityrojectistoreinforceour&Dandindustrialcapabilities.Alcatel-LucentFrenchalsolaunchedavoluntaryworkforcereductionplanin2010.ohelp

ensurethesuccessofbothoftheseinitiatives,about10works

counciland15negotiatingsessionswereheldoverthecourseoftheyear.AmeetingbetweenseniormanagementandunionleaderswasheldinNovembertoreview2010reorganizationsandrestructuringmoves.

CUNYCATEgRiEs fTELEWRERs

%TELEWRERs

Belgium 1 80%

UnitedKingdom 1 20%

Germany 1 70%

France 1 27%

Italy 1 9%

Spain 1,2,3,4,5,6,7 85%

UnitedStates 4,(5,6) 10%

Canada 4,(5,6) 2%

Brazil 4 N/S

Local ntatve:InFrance,aConciergeServicekioskhelpsemployeeshandledailychoresandissues.Accessiblefromboth

homeandofce,theserviceenablesemployeestosavetimeandeliminatehasslebyarrangingsuchservicesaslaundry,drycleaning,autocleaningandrepairsandshopping.










8.10 Work/le alance 77

8.11 Manaement o Reoranzaton 77and Retructurn

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Glossary 107■■■■■■■■■■■■■■■■

78


Content Summary 02




1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66

9. Plantrop 78


Glossary 107■■■■■■■■■■■■■■■■ philAnthropy

ALCAL-LUCNFUNDAIN9.1GivingmoreAccesstoEducation 79

9.2GovernanceandOrganization 79

9.3GrassRootsProgramSelection 80

9.4EmployeeVolunteering 82

9.5DisasterRelief 84

9.6CorporateCharitableContributions84 ■■■■■■■■■■■■■■■■

799. PhiLANThRPy ALCATEL-LUCENT 2010


ContentSummary 02



he Foundation’spurpose isto supportthe Alcatel-Lucentcommitmenttosocialresponsibilitybyservingandenhancingthecommunitieswhere employeesand customersliveandwork.In2010,theFoundationsupported45programsin23countries,benetingmorethan40,000youngpeople.UnderFoundationaegis,some7,500Alcatel-Lucentemployeesdonatedabout46,000hoursoftheirtimetocontributetomorethan200goodwillprojectsin40countries.

AlcatelLucent foundaton Mon statement:

“rovideyouth,withaspecialfocusongirlsandyoungwomen,

intargetedunderservedcommunities,withaccesstoeducationandlifeskillsprogramsthatwillhelppreparethemtoseekemployment,highereducation,andtheopportunitytocontributeascitizensandcommunityleaders.”

t ca m, fa am :•Keep underserved youth inschool andpush them toward

highereducation.•Helpunderservedyouthreturntoschool.

•rovideunderservedyouthwithlifeskillstraining.

•rovidestreetyouthwithbasiceducation.

FundedbyAlcatel-Lucent,theFoundationisanon-governmental,non-protprivateorganizationthatislegallyindependentandgovernedbyitsownBoardofrustees.heBoardincludesseniorexecutivesfromAlcatel-Lucentandexternalorganizations.

In2010,particularattentionwaspaidtostrengtheningtheFoundation’sprogramanalysisandevaluationtools.Inaddition,followingclaricationoftheFoundation’smissionandoperatingprinciplesin 2009, initiatives wereundertaken to buildunderstandingoftheFoundation’sidentityandimageamongemployeesthroughthecompanyintranetaswellassuchmediaasngage,Facebook,witterandYouube.

Read more

9.1 giving More ACCess to eduCAtion

oard o TruteehesixmemberAlcatel-LucentFoundationboardincludesfour

Groupandtoexternaltrustees.

Acalc :

VictorAgnellini(Chairman),StevenSherman(reasurer),OliviaQiu,

andAlanMottram.Béatriceassot,theExecutiveDirectorofthe

Foundation,servesasboardsecretarybutisnotatrustee.

ea :

williamReese(CEOoftheInternationalouthFoundation)and

AnnVanDusen(ProfessoratGeorgetonandJohnsHopkins

universities,formerCEOofSavetheChildren).

9.2 governAnCe And orgAnizAtion

Watch the video46,000HoursdonatedbyAlcatel-Lucentemployeestovolunteerprojectsin2010.

t Acalc fa a g’

caa ac — maa ca ama a m m a a ca.

9.1 gvn more Acce to Educaton 79

9.2 governance and ranzaton 79





y AboutthisReport 03


9. Plantrop 78


Glossary 107■■■■■■■■■■■■■■■■



ContentSummary 02



rojectssubjecttosupportbytheAlcatel-LucentFoundationwereregularlyreviewedbytheBoardofrusteesduringtheyear.heFoundationfocusesonprogramsincountrieswheretheGroup

operates.Allprojectsweresubmittedbyemployeesandhadtobesupportedbycountryseniormanagement.owinFoundationsupport,projectshadtobealignedwiththeFoundationmissionandbenetlocalcommunities.rojectbudgetshadtobeclearlydened;resultsandimpactshouldbemeasurable.achprojecthadalsotoincludeanemployeevolunteerismcomponent.

heobjectiveofthegrassrootsprogramsistoworkhandinhandwithourlocalcountryteams,whoproposeinitiativesforFoundationsupport.In2010,theAlcatel-LucentFoundationBoardapproved13newprojects,increasingto45thetotalnumberofprojectssupportedbytheFoundationworldwide.Herearesomeofthem;toseetheotherprograms,pleasevisitourwebsite.

Read more

Canada: ster

Supportfrom theAlcatel-Lucent Foundationhelps iSisters,aCanadiancharitableorganization,connectwomeninneedwithtechnologythroughmentoring.Byprovidingaccesstotechnologyandmentoringprogramstounderprivilegedwomen,iSistersenhancestheircareeropportunities.iSisters’primaryprogramsinclude:

•ImmigrantWomenServicesandmploymentSupportrogramforimmigrantwomenwhoaresurvivorsofviolence.

•ungasuvvingatInuitCommunityCentre,mploymentSupportforInuitwomen.

•YouvilleCentre’srogramtohelpyoungsinglemothersprovideabrighterfutureforthemselvesandtheirchildren.

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Cna: save te Cldren

heAlcatel-LucentFoundationprovidessupportforaSavetheChildrenprogramthataimstoempowerimpoverisheddisabledchildrenandyouthsaged16-to-25togainequalhumanrightsandopportunities,andtocontributetoeliminatingtherootcausesoftheirpoverty.

t am :•rainingandothercapacity-buildingactivitiesfororganizationalandindividualdevelopment.

•ImprovingtherangeandqualityofserviceprovisionbyightsIntoActiongroups(IAs)incommunity-basedrehabilitationandpsycho-socialapproaches.

•Developingeffectivejointplanningbetweennon-governmentgroupsandlocalauthorities.

•stablishmentoforganizations,includingIAsandparentsgroups,anddocumentinga“model”approachforreplication

•acklingexclusion and discriminationthrough awareness-raisingandradiobroadcasts.

•Beneciary-ledresearchandadvocacyforbetterimplementationoflaw,policyandinternationalhumanrightsinstruments.

heprogramdirectlybenetssome6,570poorandmarginalizeddisabledyoungpeopleandatleast2,500parents,governmentofcialsandcommunityvolunteers.Itwillindirectlyhelpuptotwomilliondisabledyouthsbyleadingtochangesingovernmentpolicyandlegislationinthefourprojectlocations(Beijing,Sichuan,AnhuiandXinjiang).

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40,000Youngpeoplebenetedfrom

Alcatel-LucentFoundationprogramsin2010.

9.3 grAss roots progrAM seleCtion

9.1GivingmoreAccesstoEducation 79


9.3 gra Root Proram selecton 80




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819. PhiLANThRPy • 9.3GASSSGAMSLCIN ALCATEL-LUCENT 2010


ContentSummary 02



Women’ Act

heFoundationforoland’stwo-year‘Women’sAct’projecttargets16-to-22year-oldwomen.heprojectaimstobuildanddeveloppro-activeandentrepreneurialattitudes,encouragewomentotakeresponsibilityfortheirownlivesandhelpthemunderstandtheir

rightsaswomen,citizensandparticipantsinthelabormarket.heprogramincludestrainingtodevelopskillsandhelpyoungwomentobuildself-esteemandunderstandtheirrights.Italsooffersscholarshipstoenableparticipantstoattainvocationalandeducationalgoals.Self-helpclubsprovideaspacewhereyoungwomencanexchangeviewsonprofessionalandprivateissueswhileprofessionalworkshopsenableparticipatingnon-protorganizationstoimprovetheirskillsandunderstanding.verthecourseofthetwo-yearprogram,Women’sActwillprovide288hoursoftrainingfor40-to-50youngwomen.hegoalisforatleast80%oftheparticipantstondjobs,starttheirownbusinessorcontinuehighereducation.

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support or te startup

heGdanskFoundationofSocialInnovationtwo-year‘SupportfortheStartup’programprovidessupportfor15-to-18girlsfromtheorphanagesrunbythefoundation.articipantsreceivespecializedcoursesandtrainingtohelpthemmasternglish.heyalsoattendmotivationworkshopsand receivepsychologicalsupportandadviceonlifechoicesfromskilledcounselors.he programisexpectedtoworkwitheightteensinGdanskthrough2012.

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Morocco: ss Cldren’ VllaeAlcatel-LucentFoundationfundinghelpsSOSChildren’sVillage

servechildrenandmothersinavillagesouthofCasablanca.

heSOS Children’sVillageprogramenableschildrenaged

4-to-12toattendanSOSschoolandalsoprovidesschoolbags

andsupplies,schoolfeesandlunch.whilethechildrenareat

school,theirmothersbenetfromsuchservicesashealthand

nutritionaarenessprograms,literacytraininghenneeded,

legalassistance,vocationaltrainingand,henpossible,help

inndingork.

Inadditiontocontributingfundsfortheprogram,Alcatel-Lucent

employeesparticipatedina‘solidarityday’attheschoolin

December,2010bytakingpartingamesandeducational

activitiesiththepupils.

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Poland: support or Dadvantaed youn Women hroughgrants totheFoundationforPolandandthe

GdanskFoundationofSocialInnovation,theAlcatel-Lucent

Foundationbegansupportingapairofinitiativestohelp

youngPolishomenfromdisadvantagedbackgroundsin

2010.Alcatel-LucentemployeesinPolandareservingas

volunteermentorsandtutorsforbothprograms.



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ContentSummary 02



heAlcatel-LucentFoundationemphasizesthecommitmentsofAlcatel-Lucentto socialresponsibilitybysupporting andencouraging volunteeractivities performed by teams of

employeesincommunitieswheretheyliveandwork.In2010,morethan7,500employeesdonatedabout46,000hoursoftheirtimetomorethan200projectsprojectsin40countries.Herearesomeofthem,onlyrepresentingasmallpartofthenumerousvolunteeringprojectsinitiatedbyemployeesworldwidein2010.

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eepn Cnee Cldren n scool

Alcatel-Lucentemployees in China havemade a two-yearcommitmenttosupportheYoungSeedlingrogram(programsupportedbytheFoundation),anefforttokeepchildreninschool.Inparticular,companypeopleareworkingwiththenon-protQingdaoGeneralCharityInstitutiontosupportspecialeducationprogramsfordisadvantageddeafanddumbchildrenaged7-to-13inQingdaoprovince.Sixty-sixAlcatel-Lucentemployeeswillprovideatotalof660hoursofteaching,3,168hoursofone-on-oneguidanceand1,056hoursofschoolvisitstocompanyfacilities.

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houn or Cambodan famle

neemployee’sdesiretohelptheunfortunateledtoapairofhousebuildingprojectsinCambodia.WithsupportfromtheAlcatel-LucentFoundationandworkinginpartnershipwiththeabithaFoundationandutlookFinancialServices,some20employeesofAlcatel-LucentAustraliacontributedtheirtime,know-howandfundingtobuildatotalof17homes.

support or inda’ yout

InIndia,Alcatel-LucentemployeesfromNewDelhi,Mumbai,BangaloreandChennaihavecreatedthempowerClub,wheretheyvolunteertimeandexpertisetoseveralprogramstogivebacktotheircommunities,includingveprogramssupportedbytheFoundation.Foundationgrantscoverarangeofinitiatives,

somefocusingonprovidingbasicnecessitiessuchasfood,clothingandhealthcareandothersarrangingforprimaryandsecondaryeducationaswellasvocationalandlifeskillstraining.heFoundationhascommittedtoprovideatotalofUS$205,000overtwoyears.

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9.4 eMployee volunteering

200 +rojectsin40countries

in2010.

Watch the video




9.4 Emploee Volunteern 82



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ContentSummary 02Ab t thi R t 03



Valued Ctzen intatve n sout Arca

In September 2010, more thantwo dozen Alcatel-LucentemployeesvolunteeredtheirtimetosupportpupilsatapairofschoolsnearJohannesburg.AtForteHighSchool,duringthe

courseofavisitbyAlcatel-LucentCBenVerwaayen,ourpeoplecontributedtoworkshopsonsuchtopicsasself-leadershipandself-management.arlierintheyear,ouremployeesjoinedwithteachersandpupilstotransformtheSGMafaesaHighSchoolschoollibraryintoacreativestimulationcenter.

Eptan generot

mployeesin gyptdonated hundredsofschoolsuppliestosupporttheeffortsoftheAssociationofUppergyptfor

ducationandDevelopment(AUD),whichworkswithruralcommunitiesandfamiliesaffectedbypovertyanddisabilitytoensurethatchildrengetachanceinlife.urpeopleprovidednotonlynotepads,pencils,coloringcrayons,backpacks,rulersandbooks.Manyalsodonatedprintersandscanners.Inaddition,120Alcatel-Lucentemployeesingyptdonatedbloodduringatwo-daydrivehostedintheGroup’spremises.

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Role Model n te UsAAlcatel-LucentemployeesdonatedtheirtimetoserveasrolemodelsfortheannualJuniorAchievementbusinesseducationdayatSouthStreetSchoolinNewark,NewJersey.heGroupvolunteersjoinedteachersandchildrentoshareexperiencesandgoodtimeswithaneyetowardpreparingthekidsforfutureglobaleconomicchallenges.

Watch the video

To or Mexcan CldrenAbout214employeesofAlcatel-LucentMexicodonatedtoysin2010forthecompany’s“270Metersofoys,270MetersofSmiles”program.hetoysweredistributedtochildrensufferingfromcerebralpalsyatCasaHogarSanLuisGonzagaandtopoorchildrenattwoprimaryschoolsinSanMartínepetlixpan,inthestateofMexico.

7,500Alcatel-Lucentemployeesin40countriesvolunteeredformorethan200projectsin2010.




9.4 Emploee Volunteern 82



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he Alcatel-Lucent Foundationinstituted fivedisaster reliefmatchinggiftprogramsinthewakeofnaturalcatastrophesin2010.Ineachcase,theFoundationmatchedindividualdonations

fromemployees.hetotalfundsdonatedtothevedisasterreliefeffortscametoUS$450,000in2010.Aspecializedthirdpartyadministeredtheprograms,makingiteasyforemployeesworldwidetodonatetocharitableorganizationsdesignatedbytheFoundationandfortheFoundationtomeasuretheefciencyoftheprograminternally.

heAlcatel-LucentGlobalCharitableContributionspolicyempowerstheGroup’sregionalofcestodonatefundstoworthwhilecauses,ofteninalliancewithcustomersandsuppliers.hepolicyrequiresclosetrackingandauditingofalldonationsbytheAlcatel-Lucent

Foundation.SinceDecember2010,allrequestsforcorporatecontributionshavebeenprocessedthroughtheZVisitool,acomputerizedplatformusedtomanagerequestedsubmissions,requireddocumentationandlegalapproval.

9.5 disAster relief

2010US$450,000tosupportvictims

ofvenaturalcatastrophesin2010.

9.6 CorporAte ChAritAble Contributions

Januar: hat EartquakeInaddition tothe Alcatel-Lucent Foundation disasterreliefmatching gift program, Alcatel-Lucent providedtechnicalassistanceandequipmenttoenableseveralofthecountry’stelecomoperatorstorestorexedandcellular

communicationsservices.

februar: Cle EartquakeheAlcatel-LucentFoundationBoardofrusteesapprovedanewreliefmatchinggiftprogramtoaidthevictimsofthe8.8-magnitudeearthquakethatstruckChileonFebruary27.

Aprl: razl floodAdisasterreliefmatchinggiftprogramenabledemployeesandtheFoundationtoprovidenancialsupportforvictimsofthesevereoodingandmudslidesthatclaimedhundredsofvictimsanddestroyedthousandsofhomesiniodeJaneiro.

MaJune: Cna floodFloodwaters and mudslides affected largeportions ofsouthernChinaduringMayandJune.DonationstotheAlcatel-LucentFoundationdisasterreliefmatchinggiftprogramprovidedaidtothemanyvictims.

Jul: Paktan floodAnestimated20millionpeopleweredirectlyaffectedbythedevastatingoodsthatinundatedone-fthofakistan’sterritory.DonationsfromtheAlcatel-LucentFoundationdisasterreliefmatchinggiftprogramtotaledmorethan$100,000.

In February2011,the Alcatel-Lucent FoundationalsoopenedmatchinggiftprogramstofacilitatedonationstoprovidereliefassistancetotheresidentsofAustraliaandBrazilafterthedevastatingoodsandtoNewZealanderstohelpthemcopewiththeFebruary2011earthquake.





9.5 Dater Rele 84

9.6 Corporate Cartable Contrbuton 84 ■■■■■■■■■■■■■■■■

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AboutthisReport 03

1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66 9.Philanthropy 78

10. suppl Can 85 11.CorporateResponsibilityIndicators 95 12.GlobalReportingInitiativeIndex 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■ supply ChAin

10.1ComprehensiveApproachto 86ResponsibleSupplyChain

10.2RequirementsImposedonSuppliersandSub-Contractors 87

10.3 Ass ess ing CRPerfo rman ce 89

10.4SupplierImprovementPlans 92

10.5CollaborativeInitiatives 94 ■■■■■■■■■■■■■■■■

8610. sUPPLy ChAiN





Alcatel-Lucentis fully committed to promoting Corporateesponsibility(C)initsSupplyChain,andinparticularwithinits

supplierbase.Suppliersincludeanythirdpartythatprovidesus

withcomponents,products,software,supportorservices.

t Acalc cm aac ca a:

10.1 CoMprehensive ApproACh toresponsible supply ChAin

reuire

We set clear CR requirementsfor suppliers, which are

integrated into contractual

purchasing requirements,processes andexchanges with suppliers

over time.

Assess

Alcatel-Lucentthoroughly tracks suppliers’

CR performance.

iMprove

When needed, we collaboratewith suppliers to foster

improvements and bring

CR performance tosatisfactory levels.

2010 highlights

• Alcatel-Lucent is about to achieve its goal, set in 2008, to assess

the CR practices of all key* and preferred** suppliers, related

either to direct or indirect spend (second tier suppliers). By

February 2011, 97% of relevant key and preferred suppliers had

been given a CR rating.

• We implemented an improvement program to manage all

suppliers with unsatisfactory CR ratings.

• Following the successful conclusion of a pilot project to improve

the environmental impact of products and services purchased

for internal use, we began expanding the program to cover

the full range of CR issues, targeted to particular product and

service categories.

• The Group adopted the United Nations Global Compact 10

Principles and the Electronic Industry Citizenship Coalition (EICC)

Code of Conduct as major frames of reference for its suppliers.

The EICC Code of Conduct outlines CR requirements related to

labor, health & safety, environment, ethics and their respectivemanagement systems.

*Keysuppliersaredenedasmajor,strategicones.** referredsuppliersconsist ofpreferred suppliers fora givenpurchasingfamily,whoareconsideredrstfornewprojects.

10.1 Compreenve Approac to 86Reponble suppl Can





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10.2.1 EiCC Code o Conduct

Alcatel-Lucent adopted thelectronicIndustryCitizenship

Coalition(ICC)CodeofConductasamajorframeofreferenceforitssuppliersinearly2011.heICC,whichincludesmorethan40globalICcompaniesandtheirsuppliers,promotesanindustry

codeofconductforglobalelectronicssupplychainstoimproveworkandenvironmentalconditions.heICCCodeofConductcoversvecriticalareasofCperformance:labor,health&safety,environment,ethicsandtheirrespectivemanagementsystems.

AllAlcatel-Lucentsupplierswhoaretosignabusinessagreementwiththecompanyarerequiredthroughcontractualtemplatestocommittothecodeandcascadeitsrequirementsthroughtheirownsupplychain.

Complementarily, Alcatel-Lucent also explicitly requestscompliancewiththetenprinciplesoftheUNGlobalCompact

wheneveranewsupplieraccountiscreatedorpurchaseorderissued.

10.2.2 internatonal standard

Alcatel-Lucentencouragessupplierstomeetcertiedinternationalstandards,suchasIS14001forenvironment,HSAS18001

forhealth&safetyandSA8000forworkers’rights.WetracksuppliercompliancetothesestandardsaspartofourriskanalysisandsupplierassessmentprocessesandstronglyencourageoursupplierstoimplementorenhancetheirCapproachbasedon

thesestandards.

10.2.3 Tareted Purcan Proram

xpandingapilotprojectlaunchedattheendof2009,Alcatel-Lucent

begandeningthemainCrequirementsforarangeoftargeteditemsorservicespurchasedforinternalusein2010.hetargetedpurchasingprogramdefinesCrequirementsandtargetsfor thesespecific

productsorservicesintermsoftheirimpactontheenvironment,health&safety,laborrightsandbusinessethics.heprogramrequiresidentifyingbestpracticesandsettingstandardstogetherwithsuppliers.Itcanrequire,forexample,thatpurchasedequipmentcomplywith

environmentallabels.

verthe courseof 2010,the argeted urchasingrogramfocused onnon-productionandservicesareas.Westartedinvestigatingpotentialwaystoimprovepurchasingdecisionsin

thespecicationofproductsandservices,supplieridentication,supplierselectionandoperationalCperformance.hiswasachievedprimarilybygainingbetterunderstandingofspecicCissues throughexchangeswith suppliersand identifying

bestpractices.Signicantvariationsinsuppliermaturityonenvironmentaltopicswerehighlighted,aswellasthecrucialroleoftheGroup’sinternalcustomersinintegratingCrequirements.

Forfacilitymanagementservicesin2010,objectivesandactionplansweresetforreductionofenergyconsumption,environment-friendlypaperuse,reductionofchemicalsusage,improvementofrecyclingofplasticsandaluminium,andothers.Discussionswithsuppliershelped

raisemarketawarenessandcontributedtoindustry-widereectionsonCissues.InGermanyforinstance,thenationalbuyersassociationdebatedonenvironmentalcriteriathatcouldbeappliedforlogisticsservices.

10.2 reuireMents iMposed onsuppliers And sub-ContrACtors

70%Byend2011,Alcatel-LucentintendstohavespecicCorporateesponsibilityrequirementsin70%ofitsprocurementsectors,forthepurchaseofownuseservices/products.

10.2.1 EiCC Code o Conduct 87

10.2.2 internatonal standard 87

10.2.3 Tareted Purcan 87Proram

10. 2. 4 SupplyChain& 88Environment

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10.2 Requrement impoed onsuppler and subContractor 87




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10.2.4 suppl Can & Envronment

heGroup iscommittedto ensurethat itssuppliersandcontractorsprovideenvironmentallyresponsibleperformanceandbehaviorforthematerialsandservicesthattheyprovideto

us.Alcatel-Lucentsystematicallymonitorscriticalenvironmental

impactperformancemetricsandindicatorsforitsmanufacturingsubcontractors.Measurementscoverenergyefciency,reducedmaterialsusage,efcientdistributionandtransportofmaterials

andgreenpackaging.heGroupasksitsmajorsupplierstolikewisereportontheiremissionsthatareinsupportofAlcatel-LucentactivitieswhichwillthenbecomepartofourScope3 emissions.Alcatel-Lucentisalsoworkingwithsuppliersandbusinesspartnerstocontinuouslyimproveemissionsreporting.

nvironmentalcriteriaareacriticalelementinourselectionandmanagementofsuppliers.ecentprocurementinitiativeshavehelpedAlcatel-Lucentlowercostswhilereducingenvironmental

impact:

•Byupdatingourleasedvehiclecatalogue,Alcatel-Lucentmanaged

toreducetheaverageC2emissionsofitseetby10.8%over

thepastveyears,inadditiontoreducingcost.

• hankstoemployeeawarenesscampaignssuchasLet’sBeeco-

Friendly(seepage59),Alcatel-Lucentemployeesdrasticallycutdownonprinting.otalpaperconsumptiondecreased22.7%between2007and2010,withabouthalfofthepaperpurchasedfromeitherrecycledorenvironmentallycertied(FSC–FC)sources.

• AlthoughAlcatel-Lucentdoesnotusehugeamountsofwaterinourindustrialprocesses,ourannualconsumptiondoesamountto2.7billionlitres–enoughtosupplyamid-sizedcitywithdrinking

waterforoneyear.Since2007theGrouphasreduceditswaterconsumptionby21%.Atthestartof2011,wecommittedtoanadditional20%reductionoverthenext3 years.

10.2.5 Reponble suppl Can

10.2.5.1 Cc MaWorkingwith the Global eSustainability Initiative( GeSI) ,industrypeersandothernon-governmentalandgovernmentalbodies,Alcatel-Lucentendeavorsto combathuman rightsabusesassociatedwithso-calledconictminerals.Used,for

example,toproducetantalumandtin,thesemineralsaremined

inareaspronetoconict,suchastheDemocraticepublicofCongo(DC)andthe broaderGreatLakesregionofcentralAfrica.Mineralsoriginatinginconictregionscanendupinelectronicscomponentsfortelecomproducts.Alcatel-Lucent

alignswiththeGeSIStatementontheMiningofMetalsandis

committedtodevelopingandimplementingmeasureswithinourprocurementprocesses,supplierrequirementsandcontractualagreementstofurtherassureresponsiblesourcingofmaterials.

10.2.5.2 s dheAlcatel-LucentSupplierDiversityrogramaimstoincreasebusinessrelationshipswithdiversesuppliersandtodriveinclusion

throughoutthesupplychain.Alcatel-Lucentengageswithdiversesupplierssolelyonmerit.

In2010,theGroupawarded17%ofthelocalspend(withpredened

exclusions)withintheU.S.formaterialsand/orservicestocertiedminorities,women,veteransandservice-disabledveterans,andtosmallbusinesses.Selectiondecisionswerebasedsolelyonquality,costanddemonstratedperformanceability.heAlcatel-

LucentDiversityrogramrespondstocustomerexpectationsandcomplieswithU.S.legislation(SmallBusinessAct,ublicLaw95-507,FederalAcquisitionegulations).

1 0.2.1EICC C od eof C onduct 8 7

10.2.2InternationalStandards 87

10. 2. 3 a rg eted P urch asing 8 7Program

10.2.4 suppl Can & 88Envronment

10.2.5 Reponble 88suppl Can

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10.2.5.1 Conct Mneral 88

10.2.5.2 suppler Dvert 88 ■■■■■■■■■■■■■■■■


10.2 Requrement impoed onsuppler and subContractor 87




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Glossary 107■■■■■■■■■■■■■■■■

Women’ une Enterpre CounclAlcatel-LucentasnamedoneofAmerica’sopCorporations

forwomenBusinessEnterprisesbythewomen’sBusinessEnterpriseCouncilforthethirdconsecutiveyearin2010.he

aardrecognizescorporationsithorld-classprogramsthat

createlevelplayingeldsforomen’sbusinessenterprisesto

competeforcorporatecontracts.Alcatel-Lucentasalsocited

asoneofAmerica’s10 BestCorporationsforVeteran-Oned

Businessesfor2010bythe.S.ationalVeteransBusiness

Organization(aVOBA)forthethirdyearinaro.

89

10 3 Assessing Cr perforMAnCe

10. sUPPLy ChAiN





10.3.1 suppler Rk Aement

iskassessmentsareperformedtoevaluate

thebusinessrisksofnewsuppliers.heseincludeCcriteriathatmeasurethelevelofriskbasedonthesupplier’stypeofactivity,locationandotherfactors.Iftheoverallrisk

levelisexcessive,thesupplierwilleither

berejectedoractionssuchasCratingarelaunchedtoensurethesupplier’spracticesmeetAlcatel-Lucentrequirements.

10.3.2 EcoVad CR Ratn

Alcatel-LucentCassessmentsareperformed

by coVadis, a company specialized insustainablesupplymanagementsolutions.hecoVadisratingsystemfocusesonsuppliers’

social,ethical,environmentaland health&safetypractices,aswellasmanagementofsuppliers’ownsupplychains.

achsupplier’s coVadisrating is determinedbyateamofCexperts,whocombinesupplierquestionnaire responses and supportingdocumentationwithindependentlyobtained,public,third-partyinformation,aswellasriskfactors

mappedperindustrialsector/country.hecoVadisratingsystemisbasedoninternationallyrecognizedstandardssuchasGIG3/UNGlobalCompact.

Byprovidingexpert,third-partyevaluations,coVadisCratingsprovideAlcatel-Lucentwithaclear,external,objectivepointofreference.Becauseassessmentresultscanbesharedwith

allcoVadisplatformmembercompaniesuponrequest,supplierscandecidetomakeasingleCassessmentavailabletomanycustomersandtherebycapitalizeontheirCrating.

In2010,Alcatel-LucentworkedwithcoVadisandcoVadisplatformmemberstoenhanceassessmenttoolsandmethodology,notablyby

proposingtoaddnewquestionnairestoaddressspecificactivitiesin greaterdepth. Wealsoparticipatedindevelopingamoretargetedriskassessmenttooltohelpidentifykeyissuesand

appropriateactionswithsuppliersbasedonsuchspecicfactorsaslocation,sizeandactivity.histoolhasbeendeployedandsharedwithcoVadisplatformmembers.

10.3 Assessing Cr perforMAnCe

Follow-upImprovement

Plan- Questionnaire

- Documentation

CR Rating

(Based on activity

& location)

CR RiskAssessment

Follow-upImprovement

PlanOn-site Audit

Alcatel-Lucenthasappliedafullyintegratedassessmentapproachtoconsistentlyevaluatesuppliers’ethical,socialandenvironmentalpractices.heapproachconsistsofsupplierassessmentsthatincluderiskanalysis,Cmanagementsystemsratingsandon-siteCevaluations.

10.3.1 suppler Rk Aement 89

10.3.2 EcoVad CR Ratn 89

10.3.3CRAssessments 90

10.3.4CRAudits 90

10.3.5on-response 91fromSuppliers

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10.3 Aen CR Perormance 89



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10.3.4 CR Audt

10.3.4.1 ta Cr ASupplierssubjecttoauditingareselectedbybothinternalauditorsandtheAlcatel-Lucentpurchasingorganization.heCpurchasingteamisresponsibleforsystematicfollow-upofallauditndings,

workingdirectlywithsupplierstoachieveacceptableresults.

Untilnow,on-siteCauditsofsupplierfacilitieshavebeencarriedoutbyaccreditedinternalauditors,trainedonCissues.Inlightof

increasedmarketunderstandingandacceptanceofCaudits,wehavedecidedtoengageanexpertcompany,SGSSA,toimprovethethoroughnessandnumberofauditsperformed,enablingustofocusinternalresourcesonassessmentandauditfollow-ups.

he world’s leading inspection, verification, testing andcerticationcompany,SGSwillbeginconductingCauditsonbehalfofAlcatel-Lucentin2011.SGSisqualiedtocarryoutsocialauditsformajorinternationalinitiativessuchasSA8000.

heauditreferentialwillbebasedonthecoVadisplatformstructuretoensureconsistencybetweenSGSauditsandcoVadisCratings.

10.3.3 CR Aement

10.3.3.1 s Am a A f

10.3.3.2 Cr Am k a p sAlcatel-Lucent isabouttoachieveits goal,set in2008,of

assessingall‘key’and‘preferred’suppliersbytheendof2010.Keysuppliersaredenedasmajor,strategicones.referredsuppliersconsistofpreferredsourcesforagivenpurchasingfamily,whoareconsideredrstfornewprojects.

Alcatel-Lucentassessed 260of its274key andpreferredsuppliers.fthe14remaining:

-FivesupplierswereconsideredasnotrelevanttobeassessedbycoVadis(verysmallfree,opensourcesoftwaresuppliers).

-Ninesuppliersdidnotanswerordidnotprovidesufcient

answersto establishas coring(see the‘Non-response fromSuppliers’section).

(*)CalculatedfromAlcatel-Lucentdatawarehouse,includesallpurchasingsectors.

2008 2009 2010

Numberofsuppliersassessed 124 278 188

Numberofsuppliersre-assessed 54 67 41

ercentageofspend(*)covered 66 66 71

Numberofqualityaudits(includingC) 70 46 57

2010

NumberofCratingslaunchedforkeyandpreferredsuppliers 269ercentageofrelevantkeyandpreferredsuppliersratedonC 97%

highlight

In 2010 the percentage of spend assessed on CR jumped

from 66 to 71% compared with 2009. This is because

purchasing activities have been focused more on key and

preferred suppliers which at the same time nearly all went

under EcoVadis assessment. The proportion of spending

with satisfactory suppliers remained stable at 79%.

10.3.1SupplierRiskAssessments 89

10. 3.2EcoVadisCRRatings 89

10.3.3 CR Aement 90

10.3.4 CR Audt 90

10.3.5on-response 91fromSuppliers

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10.3.3.1 suppler Aementand Audt fndn 90

10.3.3.2 CR Aement o eand Preerred suppler 90

10.3.4.1 Trdpart CR Audt 90 ■■■■■■■■■■■■■■■■

10.1C om preh ensi ve Approa ch 8 6toResponsibleSupplyChain





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919110. sUPPLy ChAiN • 10.3ASSSSINGCFMANC





10.3.4 CR Audt

s Cr ra Aa

53%ofsuppliersassessedareCsatisfactory,comparedwith59%

inthepreviousyear.

KeyreasonisthehighnumberofsuppliersassessmentsperformedandtheincreasingfocusonminorsupplierswhichmadetheC

ratingsaveragedecrease.histriggeredtherobustimprovementplanprogramsetuptoensurewemeetourgoaltohave80%ofactivesuppliersassessedonCsatisfactoryby2012(seebelow),withanintermediatetargetof63%satisfactorybyend2011.

10.3.5 Nonrepone rom suppler

Alcatel-LucentendeavorstoensurethatallsuppliersrespondtorequestsforC-relatedinformationbymaintainingongoingcommunicationbetweenbuyersandsuppliers.heGrouphasthehighestsupplierresponserateofallcoVadisplatformusers.

Nevertheless,8.8%ofoursuppliersfailedtorespondtorequestsforinformationordidnotprovideenoughelementstobeproperlyrated.

f44initialnon-responsestoCinformationrequestsin2010,13suppliersnallydidrespondaftertheyweresensitizedtoCIssues.Sevennon-responderswereabandonedafteritbecameclearthattheyhadnodirectcommercialrelationshipwiththeGroup(tier2suppliers)ornoprospectsforfurtherbusiness.

nefollow-upwasdroppedafterthesuppliershowedanexcellentCprole.Asofthiswriting,Alcatel-Lucentwascontinuingtoworkonresolvingthecasesthatremainopen.

Alcatel-Lucentpolicycoversallsupplierstypesincludingpurchaseforownuse.

ecva ra r 20092010

2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/100

50

100

150

200

250

Number of suppliers assessed

CR Assessment RatingNumber of suppliers

●urope+ussia

●NorthAmerica●China

●Asiaacific●Africa/Middleast

●LatinAmerica

152

185

80

933

61

ECOVADIS RATINGS

PER GEOGRAPHICAL

SPLIT 20092010

●Componentsforproduction

●wnuse●Customerprojectsinstallation

●quipmentsforproduction

ECOVADIS

RATINGS SPLIT

PER PURCHASING

SECTOR

20092010

16.63%

52.74%

11.49%

19.15%

10.3.1SupplierRiskAssessments 89

10. 3.2EcoVadisCRRatings 89

10.3.3CRAssessments 90

10.3.4 CR Audt 91

10.3.5 Nonrepone 91rom suppler

■■■■■■■■■■■■■■■■






p



Glossary 107■■■■■■■■■■■■■■■■

92

10 4 supplier iMproveMent plAns

10. sUPPLy ChAiN ALCATEL-LUCENT 2010CRPRATE REsPNsiiLiTy REPRT




Alcatel-LucentseekstoimproveCresultsacrossitssupplychainbyworkingcooperativelywithsuppliers.If/whensupplier

Cratingsareunsatisfactory,werequiresupplierstodraftandimplementaremedialplantoaddressweaknessesidentiedduringassessment.

Morethan200improvementplanrequestshavebeenmadetodate.Ifasupplierdoesnothavetheunderstandingorcapabilitynecessarytodevelopsuchaplan,weoffertohelpbyprovidingadviceandappropriatesupportservices.heGroupalsoprovidessupplierswith

a‘Ctoolkit’developedinternallyandtailoredtotheICsector.histoolkitincludesexplanationsofweaknessesidentiedduringtheassessment,examplesofbestpracticesaswellasexternalframesofreferences.ItalsoprovidesaccesstoresourcessuchasCtraining

offeredbyindustryassociationssuchasGeSI.

10.4.1 CR Trann or te AlcatelLucent PurcanCommunt

verthelasttwoyears,morethan150buyershavebeentrainedtoAlcatel-LucentC assessmentprocesses,includingcoVadismethodologies.rainingswereconductedwithsmall

groups(20 participantsmaximum),inpersonorthroughaudioconference,sothatattendeescouldaskquestionsandraise

concerns.he training sessionsenableparticipantsto fullyunderstandthecorporateCapproachandtomanagerelatedissuesmoreproactivelyandefcientlywiththeirsuppliers.

10.4.2 CR Trann or suppler

Alcatel-LucentprovidestrainingonCissuestosuppliersduring

itsannualsupplierconventionintheformofaCworkshop.heimportanceofCpoliciesandpracticeswasemphasizedduringthemostrecentAlcatel-LucentSupplierConventioninShanghaiinJanuary2010.hisworkshopwillberepeatedatfuturesupplierevents.

Inaddition,inNovember2010,nineAlcatel-LucentsupplierswereamongtheparticipantsatapilothealthandsafetymanagementtrainingprogramorganizedbytheGlobaleSustainabilityInitiative(GeSI)andthelectronicIndustryCitizenshipCoalition(ICC).Intheirfeedbackdocuments,allninesaidtheywouldmakechanges

attheircompaniesasaresultofthetrainingsession.

10.4 supplier iMproveMent plAns

Ernt & youn statementA lcatel-L ucen t has been a ssessing the susta in able

development credentialsof its mainsupplierssince 2005.

Forthepasttoyears,assessmentshavebeenperformedby

anindependentorganizationmonitoringtheCRperformance

ofsuppliersithascorecardprovidingdetailedratings,andalistofstrengthsandeaknesses.Alcatel-Lucentiscommitted

to supportingthose suppliers ithunsatisfactory scorings

byjointlydraftingand implementinganimprovementplan

addressingeaknesses.hepurchasingindicatorsauditedby

Ernst&oungforyear2010coverbothquantitative(number

ofsuppliersbeing assessed)and qualitative(percentage of

suppliersassessedassatisfactory)information.

10.4.1 CR Trann or te 92 AlcatelLucent PurcanCommunt

10.4.2 CR Trann or suppler 92

10.4.3Supplie rPartnersh ip s 9 3 ■■■■■■■■■■■■■■■■




10.4 suppler improvement Plan 92


p



Glossary 107■■■■■■■■■■■■■■■■

highlight

Alcatel-Lucent has decided to go beyond a simple

‘compliance’ approach to a more ambitious one aiming

at strengthening the CR management systems of its

suppliers. This is the most efcient way to develop a

sustainable CR performance as it addresses ‘root causes’

for non compliances and sets the ground for further

improvements.

On this respect, the ‘require’ and ‘assess’ pillars of the

Alcatel-Lucent approach consistently support the

‘improve’ one:

• The EICC code of conduct largely highlights the key

role of management systems in CR.

• The E coVadis methodology is based on assessing

these management systems and identifying their

weaknesses; short and longer term improvements are

triggered by the correction of these weaknesses.

9310. sUPPLy ChAiN • 10.4SULIIMVMNLANS ALCATEL-LUCENT 2010





10.4.3 suppler Partnerp

Alcatel-Lucentendeavorstoworkinpartnershipwithitssuppliers,toassisttheminimplementingimprovementplansandtosharebestpractices.heGroupencouragesclosecollaborationamong

varioussupplychainstakeholders,especiallythroughprogramswithsuppliersonorderforecasts,deliveryexpectationsandintegratedoperationsplanning.Wealsoworkwithmanufacturingsubcontractorstohelpthemestablishsimilarprogramswiththeir

ownsuppliers.

DialoguewithsuppliersiscriticalforAlcatel-Lucent.WeeklycallsareconductedwithtierIsupplierstocloselycoordinatepotential

changes,overalltrendsandexpectations.KeySuppliersregularlyparticipateinsupplierbusinessreviewsduringwhichon-goingperformanceismanagedacrossthefollowingcriteria:quality,deliveryperformance,pricingpositioning,innovation,contractcompliance,corporatesocialresponsibility,compliance,delivery

exibility,vendor-managedinventory,diversityspend,businesscontinuitymanagementandend-usersatisfaction.

s ra smheSupplieratingSystemenablesustoeffectivelymeasure,analyze,andimproveoverallsupplierperformanceaccordingtoIS9001:V2008& L9000standards.Used asa primary

referenceforpreparingfeedbacktosuppliersduringbusinessreviews,theSupplieratingSystemcontainsallndingsaboutasupplier,positiveandnegative.hesystemfurtherenablesAlcatel-Lucenttosustainarelationshipwiththesupplierbased

onfactsandfeedbackfromthedirectusersofthesupplierproductsorservices.hesefactsandfeedbackfeedintodetailedimprovementplansandactiveengagement/partneringbetweenAlcatel-Lucentandthesupplierforimplementation.Bytrackingend-usersatisfaction,forexample,theSupplieratingSystem

makesiteasiertoefficientlyresolveissuesthataffectourcustomers.In2009,thenumberofsupplierattributablecustomerimpactingissueswerereducedby30%comparedto2008,andwerereducedagainbyanother10%in2010,thatistosayan

overall40%reductionoverthelasttwoyears.

s sIn2010,Alcatel-Lucentsurveyed100ofitsproductsuppliersontheirrelationshipwithAlcatel-Lucent,inparticularwithregardstogrowthandinnovation,sustainability,commercialissuesandoperationaltopics.

Inqualifyingtherelationshipgenerally,85%ofsupplierssaidtherewasclosealignment,describingAlcatel-Lucentasa“customerofchoice”;75%notedacompatibleculturebetweenthecompanies.

SuppliersweregenerallysatisedwiththeGroup’scommunicationofitssustainabilitystrategy;83%describedtheircollaborationwithAlcatel-Lucentasequaltoorbetterthanothercompanies.

Insuggestingareasforimprovement,suppliersproposedfasterdecision-making,increased information sharingand moreopennesstosupplierideas,innovationandexpertise.

Afteranalyzingthesurveyresults,themembersoftheAlcatel-Lucentprocurementteamdecidedtorolloutastructuredstrategicpartnershipprogram,focusedonthosesupplierswhodeliverthe

mostvaluetotheGroup.

he strategicpartnershipprogram,which targets selectedpreferred*suppliers,aimstoestablishlong-termcommitments

coveringboththesupplierandAlcatel-Lucent.heideaistodrivethepartnershipwithatailoredsupplier-facingteamandadedicatedprocess. Itis designedto reinforcecooperationthroughopen,frequentcommunicationandbalancedrelationshipscorecards.

*referredsuppliersconsistofpreferredsuppliersforagivenpurchasingfamily,whoareconsideredrstfornewprojects.

10.4.1CRrainingforthe 92Alcatel-LucentPurchasingCommunity

10.4.2CRrainingforSuppliers 92

10.4.3 suppler Partnerp 93 ■■■■■■■■■■■■■■■■




10.4 suppler improvement Plan 92




Glossary 107■■■■■■■■■■■■■■■■

94

10 5 CollAborAtive initiAtives

10. sUPPLy ChAiN ALCATEL-LUCENT 2010CRPRATE REsPNsiiLiTy REPRT




Alcatel-Lucentworksregularlywith othercoVadisplatformusersthroughseveralworkshopstoexchangebestpracticesand

trends,tacklemethodologyissues,deneCtoolsandenhancetheefciencyofCratingprocesses.ursupplierratingscanbemadeavailabletoanymemberofthecoVadisplatformuponsupplieragreement.

Alcatel-LucentparticipatesinseveralC-orientedpartnerships.hecompanyispartoftheGeSISupplyChainworkinggroup,whichisdevelopingresponsesforsuchCissuesasconict

mineralsandsupplychaineducation.

In 2010, in collaboration with coVadis and the FrenchbservatoryonSocialandnvironmentalesponsibility(S),

Alcatel-Lucentcontributedtoananalysisoftheresponsiblepurchasingpoliciesof125leadingglobalrms.

10.5.1 sME Relatonp

InJune 2010,Alcatel-Lucentsignedthe FrenchChartede laMédiationduCréditetdelaCDAF,whichprovidesguidelinesfor

relationshipsbetweenlargecorporationsandsmallandmedium-sizedenterprises(SM).hecharter,acontinuationofFrance’s

acteSM program,seekstoimprovebusinessrelationshipwithSMsbydeningtenresponsiblepurchasingpracticestobalance

relationships,developtrust,promotetotalcostof ownershipconsiderations,integrateenvironmentalfactorsandinstallthepracticespermanentlyinpurchasingpolicies.

10.5.2 suppl Can sutanablt

he Alcatel-Lucent sustainable supply chain program wonrecognitioninajointUN/BusinessforSocialesponsibility(BS)studypublishedinJune2010,“SupplyChainSustainability:aracticalGuideforContinuousImprovement”.heGroup’sapproach

wascitedasanexampleofhowanenterprisecouldmovefromsimplemonitoringtotransparencyofsustainabilitymanagementsystemsandperformance.Inparticular,theAlcatel-Lucentsupplierassessmentapproachwassaidto“gobeyondtraditionalauditing

methodsandtodevelopamorepositiveapproach”that“couldbebroadlyused[to]provideacriticalanalysisoftheperformanceofasupplier’sCmanagementsystems.”

10.5 CollAborAtive initiAtives

Ng CPERATiNAnApril2010inquiryaboutanAlcatel-Lucentsupplier’ssupplier

hasledtoanongoingrelationshipbeteenChina’sInstituteof

PublicandEnvironmentalAffairs(IPE)andusersoftheEcoVadis

platform.IPE isa coalitionof Chinese GOsthatpromotea

globalgreensupplychainbyencouraginglargecorporationsto

concentrateontheenvironmentalperformanceoftheirsuppliers.

ItturnedoutthatAlcatel-Lucentasnolongerdoingbusiness

iththesupplierinquestion,saidtobeguiltyofenvironmental

violations.Hoever,thediscussionsbeteenIPEandAlcatel-Lucent

ledtointegrationofenvironmentaldatacollectedbyIPEintothe

EcoVadisdatabase,availabletoallEcoVadismembers.

10.5.1 sME Relatonp 94

10.5.2 suppl Can sutanablt 94 ■■■■■■■■■■■■■■■■





10.5 Collaboratve intatve 94■■■■■■■■■■■■■■■■



Glossary 107■■■■■■■■■■■■■■■■

soCiAl indiCAtors

11. CRPRATE REsPNsiiLiTy iNDiCATRs

AlcatelLucent 2010Corporate Reponblt Report

95



soCiAl indiCAtors

(1)For2010,thenumberofdisabledemployeesconcernsonlyveFrenchlegalentities(CompagnieFinancièreAlcatel-Lucent,Alcatel-LucentFrance,Alcatel-Lucent

ntreprise,Alcatel-LucentSubmarineNetworksFranceandAlcanetInternationalSAS).

(2)In2010Alcatel-Lucenthaschangeditsperformancemanagementprocessesand

Isystems,formerindicatorshavenotbeenfollowed,newindicatorsareputinplacefor2011.

2010/2009 Evoluton

For2010,dataonallthesocialindicatorshavebeencollectedandconsolidatedataCorporatelevelsincetheHinformation

systemshavebeenfullyconverged,exceptforhealthandsafetydatathatareissuedfromourCreportingtool.egardingthehealthandsafetydata,thesurveycovered67 countries,representing100%ofthetotalheadcount.

Denton and Metodolo

AllindicatorsarebasedonAlcatel-Lucentdata.heperimeterof2010socialreporting,speciedforeachindicator,ismeasuredintermsoftotalpercentageofAlcatel-Lucentemployeescoveredbytheindicator.heavailableguresprovidedareconsolidatedatacorporateleveleither:

•through the corporate financialinformation systems(headcountincludinggenderheadcount),

•throughthecorporateHinformationsystems(trainingandmobility),

•throughtheCreportingtool(healthandsafety).

hepersonresponsibleforreportingin eachHdomainworkswithaspecializednetworkofcorrespondentslocatedthroughouttheworld.

Corporate Reponblt Report

sCiAL iNDiCATRs 2008 2009 20102010

m

1. hac

otalheadcountasofDec31 77,717 78,373 79,796 100%

Numberofrecruits 7,725 6,773 8,661 100%

Headcountreductionduetobusinessestransferredorsold - (699) (1,153) 100%

Headcountincreaseduetothefullconsolidationofpreviouslynon-fullyconsolidatedcompanies - 1,468 53 100%

Headcountincreaseduetoacquisitionsandinsourcing 4,141 4,219 3,687 100%

Headcountreductionduetooutsourcingandtransfers (277) (1,956) (666) 100%

Headcountreductionduetoredundancies (4,063) (4,246) (2,660) 100%

Headcountreductionduetonormaldepartures(retirements,endoftemporaryworkcontracts,resignations,deaths) (6,219) (4,903) (6,499) 100%

2. hac/d

ercentageofwomen/headcount 23.44% 22.35% 20.60% 100%

ercentageofwomen–Asiaacic 27.20% 20.73% 28.15% 100%

ercentageofwomen–urope,SouthAmerica,Middle-ast,AfricaandIndia 20.88% 22.34% 17.01% 100%

ercentageofwomen–NorthAmerica 25.71% 24.19% 23.60% 100%

ercentageofwomenamongsttheLeadershipipeline 19% 19.05% 19.37% 100%

Numberofdisabledemployees 182 190 210(1) fac

3. ta

rainingbudget(asapercentageofpayroll) 1.00% 1.10% 1.00% 100%

otalhoursoftrainingperemployee 17 17 17,8 100%

ercentageoftrainingtimeviae-learningtechnologies 33% 40% 38% 100%

4. M

Numberofexpatriatesworldwide 766 623 498 100%

xpatriatesbyhostregionurope 262 170 151 100%

xpatriatesbyhostregionNorthAmerica 45 55 31 100%

xpatriatesbyhostregionSouthAmerica 19 12 12 100%

xpatriatesbyhostregionMiddleast,AfricaandIndia 180 198 147 100%

xpatriatesbyhostregionAsiaacic 260 188 157 100%

5. ha a sa

Numberofdaysofabsenceduetowork-relatedaccidentsperemployee 0.09 0.09 0.07 100%

ateoff re quency(numberofaccidentsperyear,per1millionhoursworked) 1.72 1.61 1.48 100%

6. pmac Maam

ercentageofmanagersandprofessionalswhohadanannualperformancereview 85% 85% NA(2)

ercentageofmanagersandprofessionalswhohadlearninganddevelopmentactivitiesagreedupon 50% 54% NA(2)

environMentAl indiCAtors

11. CRPRATE REsPNsiiLiTy iNDiCATRs


96



environMentAl indiCAtors

Denton and Metodolo

he2010energyandwaterconsumptionreportingperimeterincludesallAlcatel-Lucentsites,ownedorleasedasofDecember2010.

•Forthe2010assessment,276facilitiesrepresentingatotalof84%ofAlcatel-Lucentemployeesand83%ofgrossbuildingareaweresurveyed.

•Fromthisscopeofreporting,thenumberoffacilitieshavingeffectivelyreportedresultedinthefollowingcorrespondingpercentageoftotalAlcatel-Lucentemployees:

i . ForenergyconsumptionandC2emissions:276sitesaccountingfor84%

oftotalAlcatel-Lucentemployees; ii. Forwaterconsumption:130sitesaccountingfor69%oftotalAlcatel-Lucent

employees; iii. Fornon-hazardouswasteproduction:263sitesaccountingfor79%of

totalAlcatel-Lucentemployees; iv. Forhazardouswasteproduction:272facilitiesaccountingfor80%of

totalAlcatel-Lucentemployees.

•oaccountfor 100%of Alcatel-Lucentemployees, extrapolationprocedureswereappliedbasedoncalculatedratiosperemployee.

•eportedwastedoesnotincludeW(Wastelectrical&lectronicquipment).

2009/2010 Evoluton

hescopeofthe2010CCampaignwasincreasedfromthatwhichwasemployedin2009.Forthe2010CCampaign,allfacilities,regardlessof

buildingareaoremployeeheadcount,whichwereabletoobtainenergyusageinformation,wererequiredtoparticipatewithinthisweb-basedsurvey.Asaresult,signicantlymoreactualfacilityoperationaldatawasobtained,therebyrequiringlessestimationtoobtain100%company-wideassessment.

Due,inpart,toconsolidationoffacilitiestomoreefcientlyutilizeourresources,implementationofenergyefciencyprojects,aswellasthedeploymentofemployeeenergyefciencyawarenessprograms,wehaveachievedanactualreductionoftotalC

2emissionsof8%,from2009levels.

hisconsistsofareductionof6%ofelectricityusage,and17%offossilfuel

usageratefromtheir2009values.Company-widewaterusagealsoshowedadeclinein2010from2009results.

In2007,weconductedaworld-wideassessmentoftotalC2emissions

associatedwithfacilityoperations.Basedonthoseresults,thefollowinggoalwasestablished-“bytheendof2010,reacha10%reductionintotal

C2emissionsfromfacilitiesfromthe2007Creportedbaseline”.Basedon

resultsfromthis2010CCampaignwehaveexceededthatgoal,achievinga17%reductionintotalC

2emissions.

Fromthetimethatthe2007Cgoalwasinitiallyestablishedwedramatically

enhancedourClimateChangerogram,resultinginacomprehensiveworld-widecarbonfootprintassessmentconductedin2008.AnoutcomeofthatassessmentwasthecommitmentofamorerigorousClimateChangegoalasdocumentedwithinour2008Ceport:“Alcatel-Lucentwillreduceitscarbonfootprint(absolute)by50%bytheyear2020[fromour2008


contnued

Ehs iNDiCATRs 2010 Units 2008 2009 20102010

m

Ca f Amfac oa o (5,8)

IndirectemissionsofC2,linkedtoconsumedelectricity tC

2

(1) 603, 56 8 55 9, 019 522, 92 0 100%

IndirectemissionsofC2e,linkedtoconsumedelectricity ktC

2e(3) 628 598 559 100%

IndirectemissionsofC2peremployee tC

2

(1) 7.8 7 7 100%

IndirectemissionsofC2eperemployee tC

2e(4) 8 8 7 100%

DirectemissionsofC2,linkedtoconsumedfossilenergy tC

2

(1) 99,197 70,983 56,941 100%

DirectemissionsofC2e,linkedtoconsumedfossilenergy ktC

2e(3) 105 87 73 100%

DirectemissionsofC2peremployee tC

2

(1) 1.3 1 1 100%

DirectemissionsofC2eperemployee tC

2e(4) 1 1 1 100%

otalemissionsofC2

(2) tC

2

(1) 702, 76 4 63 0, 001 579, 86 1 100%

otalemissionsofC2e ktC

2e(3,5) 751 702 647 100%

otalemissionsofC2peremployee(2) tC

2

(1) 9 8 8 100%

otalemissionsofC2eperemployee C

2e(4,5) 10 9 8 100%

Ca f Amw oa (8)

sc 1

Stationarysourcefuelcombustion tC2e(4) 92,783 73,709 61,005 100%

Mobilesourcefuelcombustion tC2e(4) 93,695 89,554 84,289 100%

Facilit y and mo bi les ou rce refr ig er ant lo ss es t C 2e(4) 1,631 5,778 5,075 100%

DirectemissionofGHGfrommanufacturing/&D/productdevelopment tC2e(4) 7,730 1,272 81 100%

Firesuppressionsystemlosses tC2e(4) 186 8 0 100%

sc 2

lectricityusage tC2e(4) 627, 82 8 59 8, 214 558, 64 4 100%

urchaseofhotwater/steam tC2e(4) 9,643 10,596 10,183 100%

urchaseofchilledwater tC2e(4) 263 735 678 100%

sc 3Businesstravel tC

2e(4) 117, 72 0 10 5, 025 114, 51 9 100%

Contractedmarineservices tC2e(4) 65,351 63,443 58,019 100%

Contractedmanufacturingservices(6) tC2e(4) 36,324 36,352 64,069 100%

roducttransport(7) tC2e(4) 286, 14 0 20 1, 043 214, 98 2 100%

nvironmentalremediationactivities tC2e(4) 3,831 7,434 4,428 100%

mployeecommuting(NorthAmericanegiononly(9)) tC2e(4) 47,117 42,576 38,512 100%

aperuse(10) tC2e(4) 1,555 1,359 1,257 100%

9711. CR iNDiCATRs • NVINMNALINDICAS





ga ta tC2e(4) 1,391,796 1,237,098 1,215,741 100%

Cm e

Consumedelectricity GWh 1,306 1,197 1,125 100%

Consumedelectricitybyemployee MWh 16.8 15 15 100%

Consumedfossilenergy GWh 528 373 308 100%

Consumedfossilenergybyemployee MWh 6.8 5 4 100%

otalconsumedenergy,includinghotandchilledwater GWh 1,972 1,634 1,491 100%

otalconsumedenergybyemployee MWh 23.6 20 19 100%

wa a wa

Consumedwater m3 3,048,624 2,754,507 2,744,454 100%

Consumedwaterperemployee m3 39 35 36 100%

roductionofhazardouswaste t 1,689 1,517 2,230 100%

roductionofhazardouswasteperemployee kg 22 19 28 100%

ercentageofhazardouswasterecycled(11) % 80 79 80 100%

roductionofnon-hazardouswaste t 24,684 29,932 19,767 100%

roductionofnon-hazardouswasteperemployee kg 318 382 248 100%

ercentageofnon-hazardouswasterecycled(11) % 76 58 68 100%

o em

Solvents No signicant quantities, indicator not relevant and not consolidated

H alog enat edhydro carb on No si gnicant quanti ties, i ndicator not relevant andnot consolidated

Dischargeintowater(heavymetals) Nosignicantquantities,indicatornotrelevantandnotconsolidated

zone-depletingsubstances Nosignicantquantities,indicatornotrelevantandnotconsolidated

Nx,S

xandothercriteriaaircontaminants

Sourcesemittingthoseaircontaminantsareinstalledandoperatedinconformancewithapplicableregulatoryrequirements

Mca

Alcatel-Lucentheadcount,IS14001certied(12) % 42 39 29 100%

Newproductscoveredbyecodeclarations(13) % 96 100 100 100%

Ehs iNDiCATRs 2010 Units 2008 2009 20102010

mbaseline]”.Asaresult,weareretiringour2007goalsinceitwasattainedandwillreportprogressannuallyagainstour2008goalof50%reductionby2020.

Infollowingourglobalapproachtosustainability,weareevaluatingeverythingthatcontributestoreducingourcarbonfootprint,bothdirectlyandindirectly.WereportGHGemissionsfromfacilities,eetoperations,mobilesourcesofcombustionandallotherScope1and2sourcesthatresultdirectlyfromourbusinessoperations.WealsoreportScope3emissionsandstriveto

continuouslyimproveouremission reportingac tivitiesbyworking withsuppliersandbusinesspartners.In2010weaddedthefollowingindicatorstoourCeportandCarbonFootprint:ContractManufacturingServices,nvironmentalemediationActivities,mployeeCommutingandaperUse.

Wealsoaddedemissionsforeachcategorybacktoour2008baseline.Acomprehensiveapproachto incorporateGHGemissionmeasurement,managementandreportinghasenabledustofocusonthegreatestopportunitiestoreduceemissionswithinourfullvaluechain.hisinvolvesthequanticationofemissionsforthesixmajorGHG

s(C

2,CH

4,N

2,HFC

s,FC

s,SF

6).

Asaresultofthisdramaticallyenhancedprogram,wearenowreplacingthecurrent“ConsumednergyandC

2missions”CindicatorswithScope 1

andScope2emissionsdataassociatedwithAlcatel-LucentfacilitiesasC2e,

whichwilldocumentourpathtoachievingthe2020carbonfootprintgoal.ForconsistencypurposeswearereportingbothC

2andC

2einthisreport,butin

futurereportswewillonlyreportontheindustryandGHGrotocolstandardofC

2eemissions.Inaddition,wehaveprovidedfacilityC

2eemissionsback

tothe2008baselineofourrevisedemissionsreductiontarget.

2010 Acevement

In2010Alcatel-Lucentreduceditscarbonfootprintfromallsourcesby1.7%

orover21,000tonnesofC2ehisachievementwasaccomplishedinayear

whereAlcatel-Lucentoverallbusinessincreased.hismeansthatAlcatel-Lucenthasbecomenearly7%moreefcientintermsofcarbonfootprintperunitofrevenue.Also,wehavereducedourcarbonfootprintby12.6%since2008,

orover176,000tonnesofC2e,whichisthesameasremovingover32,000

passengervehiclesfromtheroad.hisisexcellentprogressaswecontinueour journeytoreducingourcarbonfootprintby50%by2020.

(1)tC2:C

2metrictons.

(2)missionsofC2associatedwithpurchasedhotandchilledwaterarenotincluded

(3)ktC2e:KilometrictonsofC

2equivalency(includesthefollowingGHGs:C

2,CH

4,N

2,SF

6,

HFCsandFC

s).

(4)tC2e:MetrictonsofC

2equivalency(includesthefollowingGHGs:C

2,CH

4,N

2,SF

6,HFC

sandFC

s).

(5)C2evaluesincludeScope1andScope2emissionsforfacilityoperationsonly.

(6)C2evaluesinclude100%oftheemissions,basedonintensityandthroughput,ofourthree

largestcontractmanufacturers,lessemissionsavoidedfromsalesofrefurbishedequipment.

(7)roducttransportincludes100%ofemissionsfromairandseatransportonly.(8)missionfactorsbasedoninitialvaluesissuedbyICCandkeptconstantfordataconsistency.

(9)CommutinginformationforUSandCanadaonly–C2evalueincludes100%ofdatafromthose

twocountries.

(10)aperuseincludes100%ofpaperusedinoperationspurchasedundercorporatecontract;doesnotincludeexternallyprintedmarketingcollateral.

(11)ecycled:notreleasedinalandllornotburnedwithoutenergyrecovery.

(12)Whilewecontinuetomaintainacommitmentto3rdpartycertiednvironmentalmanagementsystems,thepercentofglobalheadcountunderIS14001certicationhasbeennegativelyimpacted

byourevolvingbusinessmodel(i.e.,outsourcedmanufacturing,managedserviceagreements,etc.)(13)Associatedwithnewproductsreleasedduringthecitedyear.

98

gri index

12. gRi iNDE




gri index Corporate Reponblt Report

gRiiNDiCATR

DEsCRiPTiN ALCATELLUCENT REsPNsE

Locationinthereport(CRR=CorporateResponsibilityReport)PAgE

STANDARD DISCLOSURES PART I: Prole Disclosures

1. sa a Aa

1.1 Statementfromthemostseniordecision-makeroftheorganization. C1.MessagefromBenVerwaayen/7.5.2.1SeniorManagementngagement.4/62

1.2 Descriptionofkeyimpacts,risks,andopportunities. C2.urcommitmenttoCorporateesponsibility. 5

2. oaaa p

2.1 Nameoftheorganization. C3.resentationofAlcatel-Lucent. 10

2.2 rimarybrands,products,and/orservices. C3.resentationofAlcatel-Lucent. 10

2.3 perationalstructureoftheorganization,includingmaindivisions,operatingcompanies,subsidiaries,andjointventures. 20F-4.InformationAboutheGroup. 17

2.4 Locationoforganization’sheadquarters. C3.resentationofAlcatel-Lucent. 10

2.5Numberofcountrieswheretheorganizationoperates,andnamesofcountrieswitheithermajoroperationsorthat

arespecicallyrelevanttothesustainabilityissuescoveredinthereport.C3.resentationofAlcatel-Lucent. 10

2.6 Natureofownershipandlegalform. 20F-StockxchangeandShareholding. 131

2.7 Marketsserved(includinggeographicbreakdown,sectorsserved,andtypesofcustomers/beneciaries). C3.resentationofAlcatel-Lucent/20F-5.DescriptionfheGroup’sActivities.C10/

20F27

2.8 Scaleofthereportingorganization. C3.resentationofAlcatel-Lucent. 10

2.9 Signicantchangesduringthereportingperiodregardingsize,structure,orownership. Nosignicantchangeduringthereportingperiod.

2.10 Awardsreceivedinthereportingperiod.

C2.1CorporateesponsibilityManagement-2011SustainabilityYearbook/5.8International

Initiatives- Bestpractice: UN Human ights and Business Dilemma Forum/6.6 Innovation

Management-ecognition-Innovationawards/7.5.3Awardsandecognition/8.6Diversity&

qualpportunity-America’stopcorporations.

6/

27/34/

66/71

3. r paam

3.1 eportingperiod(e.g.,scal/calendaryear)forinformationprovided. CAbouthiseport. 3

3.2 Dateofmostrecentpreviousreport(ifany). CAbouthiseport. 3

3.3 eportingcycle(annual,biennial,etc.). CAbouthiseport. 3

3.4 Contactpointforquestionsregardingthereportoritscontents. CAbouthiseport. 3

3.5 rocessfordeningreportcontent. CAbouthiseport. 3

3.6Boundaryofthereport(e.g.,countries,divisions,subsidiaries,leasedfacilities,jointventures,suppliers).SeeGI

Boundaryrotocolforfurtherguidance.CAbouthiseport. 3

3 .7 Sta te a nys pe cicli mita tions onthe s cope orb ound aryof the report( see complete nes sprincip leforex plana tionofscope) . C Ab out hi s e po rt . 3

3.8Basisforreportingonjointventures,subsidiaries,leasedfacilities,outsourcedoperations,andotherentitiesthatcan

signicantlyaffectcomparabilityfromperiodtoperiodand/orbetweenorganizations.CAbouthiseport. 3

heGlobaleportingInitiative(GI)isanetwork-basedorganizationthatpioneeredtheworld’smostwidelyusedsustainabilityreportingframework.GIiscommittedtotheFramework’scontinuousimprovementandapplicationworldwide.GI’scoregoalsincludethemainstreamingofdisclosureonenvironmental,socialandgovernanceperformance.Alcatel-Lucenthaspreparedthis2010CorporateesponsibilityreportusingtheGI(G3)

guidelines.FollowingGIreview,ithasreceivedaGIApplicationLevelCheckStatementB+.heGIApplicationLevelCheckassessestowhatextenttheGIGuidelineshavebeenappliedinthereporting.he‘+’signshowsthatthisreportwasexternallyassured.Ithasbeensubjecttoanindependentreviewprocessbyrnst&Young.hefullscopeoftheirreviewandconclusionscanbefoundintheirIndependentVericationStatementonpage105.

9912. gRi iNDE





3.9

Datameasurementtechniquesandthebasesofcalculations,includingassumptionsandtechniquesunderlying

estimationsappliedtothecompilationoftheIndicatorsandotherinformationinthereport.xplainany

decisionsnottoapply,ortosubstantiallydivergefrom,theGIIndicatorrotocols.

CAbouthiseport. 3

3.10

xplanationoftheeffectofanyre-statementsofinformationprovidedinearlierreports,andthereasons

forsuchre-statement(e.g.,mergers/acquisitions,changeofbaseyears/periods,natureofbusiness,measurementmethods).

CAbouthiseport/11.SocialIndicators-DenitionsandMethodology/11.nvironmental

Indicators-DenitionsandMethodology-2009/2010volution.

3/

95/96

3.11Signicantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurementmethodsapplied

inthereport.C11.nvironmentalIndicators-DenitionsandMethodology-2009/2010volution. 96

3.12 ableidentifyingthelocationoftheStandardDisclosuresinthereport. C12.GIIndex. 98

3.13 olicyandcurrentpracticewithregardtoseekingexternalassuranceforthereport. C13.IndependendentVericationStatement. 105

4. gac, Cmmm, a eam

4.1Governancestructureoftheorganization,includingcommitteesunderthehighestgovernancebodyresponsible

forspecictasks,suchassettingstrategyororganizationaloversight.C4.2BoardfDirectorsGovernanceSystem/20F-7.CorporateGovernance.

C13/

20F75

4.2 IndicatewhethertheChairofthehighestgovernancebodyisalsoanexecutiveofcer. C4.2.1peratingules. 13

4.3Fororganizationsthathaveaunitaryboardstructure,statethenumberofmembersofthehighestgovernance

bodythatareindependentand/ornon-executivemembers.20F-7.CorporateGovernance. 75

4 .4 M ech an is ms fors hare hold ers a nd e mp loye es to p rov ide re comme nd ati ons ordi re cti ontoth eh ig he st g ov erna nce bo dy. C 6 .1 2 In ve st or el at io ns . 40

4.5

Linkagebetweencompensationformembersofthehighestgovernancebody,seniormanagers,andexecutives

(includingdeparturearrangements),andtheorganization’sperformance(includingsocialandenvironmentalperformance).

C4.5SeniorManagementemuneration. 16

4.6 rocessesinplaceforthehighestgovernancebodytoensureconictsofinterestareavoided. C4.2.5ConictsofInterest. 14

4.7rocessfordeterminingthequalicationsandexpertiseofthemembersofthehighestgovernancebodyforguiding

theorganization’sstrategyoneconomic,environmental,andsocialtopics.C4.2.4Directors’Charterandthics. 14

4.8Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciplesrelevanttoeconomic,

environmental,andsocialperformanceandthestatusoftheirimplementation.C5.3Compliance-CodeofConduct/4.2.3SelectionCriteriaandIndependence. 22/13

4.9

roceduresofthehighestgovernancebodyforoverseeingtheorganization’sidenticationandmanagementof

economic,environmental,andsocialperformance,includingrelevantrisksandopportunities,andadherenceor

compliancewithinternationallyagreedstandards,codesofconduct,andprinciples.

C4.2.6BoardDuties/4.6isks&CrisisManagement. 14/17

4.10rocessesforevaluatingthehighestgovernancebody’sownperformance,particularlywithrespecttoeconomic,

environmental,andsocialperformance.

20F-7.3owersoftheBoardofDirectors/7.5Compensation/7.6Interestofemployeesand

seniormanagementinAlcatel-Lucent’scapital.

91/

97/105

4.11 xplanationofwhetherandhowtheprecautionaryapproachorprincipleisaddressedbytheorganization. 20F-3.iskFactors. 9

4.12xternallydevelopedeconomic,environmental,andsocialcharters,principles,orotherinitiativestowhichthe

organizationsubscribesorendorses.C4.1CorporateGovernance/6.Stakeholders. 13/28

4.13

Membershipsinassociations(suchasindustryassociations)and/ornational/internationaladvocacyorganizations

inwhichtheorganization:*Haspositionsingovernancebodies;*articipatesinprojectsorcommittees;*rovides

substantivefundingbeyondroutinemembershipdues;or*Viewsmembershipasstrategic.

C5.8InternationalInitiatives/6.Stakeholders-6.1-6.2-6.3-6.4-6.7/7.5.2ngaging

ForSuccess.

27/

28/61

4.14 Listofstakeholdergroupsengagedbytheorganization. C6.1esponsibilitytoStakeholders. 29

4.15 Basisforidenticationandselectionofstakeholderswithwhomtoengage. C6.1esponsibilitytoStakeholders. 29

4.16 Approachestostakeholderengagement,includingfrequencyofengagementbytypeandbystakeholdergroup.

6.2 UnitedNations GlobalCompact/6.3 WorldconomicForum/6.4 GlobaleSustainability

Initiative/6.5 Customer elationship/6.7 nvironmental Innovation/6.8 Social Innovation/

6.9DigitalInclusion/6.10ublicAffairs/6.11mployeeDialogue/6.12Investorelations.

30-33/

35-40

4.17Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement,andhowtheorganizationhas

respondedtothosekeytopicsandconcerns,includingthroughitsreporting.C6.1esponsibilitytoStakeholders. 29

gRiiNDiCATR



STANDARD DISCLOSURES PART I: Prole Disclosures

100


12. gRi iNDE



Co po ate epo b t epo t

dMA eC ecm

conomicperformance 20F-6.peratingandFinancialeviewandrospects. 41

Marketpresence 20F-5.DescriptionfheGroup’sActivities. 27

Indirecteconomicimpacts C6.9DigitalInclusion. 37

dMA en em

Materials C7.2.2.1ManagingMaterials. 46

nergy C7.2.2.4nergyfcientUse. 48

Water C7.4.1-Scope1,2and3emissions-Waterusage. 56

missions,efuentsandwaste C7.3art2:nablingaLow-carbonconomy/7.4art3:educingourCarbonFootprint. 51/55

roductsandservices C7.2.2.3ackaging,DistributionandInstallation-ackaging. 47

Compliance C7.1.3Managementofnvironment,Health&Safety-HSComplianceAuditrogram. 44

ransport C7.2.2.3ackaging,DistributionandInstallation-ransportation. 47

verall C7.1.1urApproachtowardsco-Sustainability. 42

dMA lA la

mployment C8.9alentAttractionandetention. 76

Labor/managementrelations C6.11mployeeDialogue/8.4mployeeDialogue. 39/69

ccupationalhealthandsafety C8.5mployeeHealthandSafety. 70

rainingandeducation C8.7HumanCapitalDevelopment/5.7ducationandraining. 74/26

Diversityandequalopportunity C8.6Diversity&qualpportunity. 71

dMA hr hma r

InvestmentandprocurementpracticesC10.SupplyChain/10.4.1CrainingfortheAlcatel-LucenturchasingCommunity/10.4.2

CrainingforSuppliers.85/92

Non-discrimination C8.2.2GlobalHumanightsolicy. 68

Freedomofassociationandcollectivebargaining C8.2.2GlobalHumanightsolicy. 68

Childlabor C8.2.2GlobalHumanightsolicy. 68

Forcedandcompulsorylabor C8.2.2GlobalHumanightsolicy. 68

Securitypractices C8.5mployeeHealthandSafety. 70

Indigenousrights C8.2.2GlobalHumanightsolicy. 68

dMA so sc

Community C9.hilanthropy,Alcatel-LucentFondation. 78

CorruptionC5.1thics&Compliance-Zeroolerance/5.2AntiCorruptionrogram/5.3Compliance-

Zerooleranceolicy/5.7ducationandraining-Anti-corruptionraining.20/21/22/26

ublicpolicy C6.10ublicAffairs/7.5.2.1SeniorManagementngagement. 38/62

Anti-competitivebehavior 20F-6.10LegalMatters. 69

Compliance C5.3Compliance. 22

gRiiNDiCATR



STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)



102


12. gRi iNDE



pc a c

N26 Initiativestomitigateenvironmentalimpactsofproductsandservices,andextentofimpactmitigation. C7.2.2educingtheImpactofourroducts&Solutionsonthenvironment 46

N27 ercentageofproductssoldandtheirpackagingmaterialsthatarereclaimedbycategory. C7.2.2.5ake-back,emanufacturingandecycling 50

ta

N29Signicantenvironmentalimpactsoftransportingproductsandothergoodsandmaterialsusedfortheorganization's

operations,andtransportingmembersoftheworkforce.C11.nvironmentalIndicators/7.4.1Scope1,2and3missions 96/56

gRiiNDiCATR



STANDARD DISCLOSURES PART III: Performance Indicators

la pacc a dc w

emm

LA1 otalworkforcebyemploymenttype,employmentcontract,andregion. C11.SocialIndicators/8.3mployeeBreakdown 95/69

la/maam a

LA4 ercentageofemployeescoveredbycollectivebargainingagreements. C8.4.1CollectiveBargaining 69

occaa a a a

LA7 atesofinjury,occupationaldiseases,lostdays,andabsenteeism,andnumberofwork-relatedfatalitiesbyregion. C11.SocialIndicators/20FAdditionalInformation-4.SocialAndnvironmentaldata

C95/

20FAddInfo47

ta a ca

L A1 0 Av er ag e ho urs of t ra in in g pe r ye ar pe r em pl oy ee b y emp lo ye e ca te go ry. C 1 1. S oc ia l In di ca to rs /2 0F A dd it io na l In fo rma ti on - 4 . So ci al A nd nv iro nme nt al da taC95/20FAddInfo47

LA11rogramsforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesand

assisttheminmanagingcareerendings.+8.11talentattraction,performancemanagement,employeeretention.C8.6.4Seniors 73

LA12 ercentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews. C11.SocialIndicators 95

d a qa

LA13Compositionofgovernancebodiesand breakdownofemployeespercategoryaccordingtogender,agegroup,

minoritygroupmembership,andotherindicatorsofdiversity.C 8. 6 Di ve rs it y & q ua l p po rt un it y/ 11 . So ci al I nd ic at or s 71 / 95

hma r

d a qa

H2 ercentageofsignicantsuppliersandcontractorsthathaveundergonescreeningonhumanrightsandactionstaken.C10.3.3.1SupplierAssessmentsand AuditFindings/10.3.3.2C Assessmentof Keyand

referredSuppliers/10.3.4.1hird-partyCAudits90

H3otalhoursofemployeetrainingonpoliciesandproceduresconcerningaspectsofhumanrightsthatarerelevant

tooperations,includingthepercentageofemployeestrained.C5.7ducationandtraining 26

sc

C

S3 ercentageofemployeestrainedinorganization'santi-corruptionpoliciesandprocedures. C5.7ducationAndraining 26

S4 Actionstakeninresponsetoincidentsofcorruption. 20F-6.10LegalMatters 69



10412. gLAL REPRTiNg iNiTiATiVE ALCATEL-LUCENT 2010





gRi statement 104 ■■■■■■■■■■■■■■■■

1.MessagefromtheCEO 04 2.CorporateResponsibilityCommitments 05 3.Alcatel-LucentOvervie 10 4.Governance 12 5.EthicsandCompliance 19 6.Stakeholders 28 7.Environment 41 8.OurPeople 66 9.Philanthropy 78 10.SupplyChain 85 11.CorporateResponsibilityIndicators 95

12. global Reportn intatve index 98 13.IndependentVericationStatement 105

Glossary 107■■■■■■■■■■■■■■■■


105

independent verifiCAtion stAteMent

13. iNDEPENDENT VERifiCATiN sTATEMENT



independent verifiCAtion stAteMentIDEPEDEASSRACEREPOROASELECIOOFCORPORAERESPOSIBILICR

IDICAORSADSAEMES

FurthertotherequestmadebyAlcatel-Lucent,wehaveperformeda

reviewonaselectionofCindicatorsandstatementsforthenancial

yearendingDecember31,2010intheCreport,includingquantitative

indicators(hereafterreferredtoas"theIndicators")andqualitative

statements(hereafterreferredtoas"theStatements"),bothidentied

withthe symbolwithinthisreport.

o a cc m

aac a :

1. heIndicatorswerepreparedinaccordancewiththereporting

criteriaapplicablein2010(1)(the“eportingCriteria”),consisting

ofAlcatel-Lucentinstructions,procedures,andguidelinesspecic

foreachindicator.

2. heStatementshavebeenpresentedinaccordancewiththe

principlesofreliability,neutralityandclarityasdefinedby

internationalstandards(2).

ItistheresponsibilityofAlcatel-LucenttopreparetheIndicatorsand

Statements,toprovideanupdatedeportingCriteria,andtocompile

theCreport.

ItisourresponsibilitytoexpressanopinionontheseIndicators

andStatements.urreviewwasconductedinaccordancewiththe

professionalstandardsapplicablein Franceand theInternational

StandardsonAssurancengagement(ISA3000),publishedinDecember

2003.urindependenceisdenedbyFrenchlegislationandregulations

andtheFrenchulesofrofessionalConductforStatutoryAuditors.

Inaddition,weperformedtheworksrequiredtoverifythatAlcatel-Lucent

couldapplytoobtainaB+graderegardingGIG3guidelines.ur

conclusionsarepresentedonpage103ofthisreport.

Nature and cope of our revewWeperformedthefollowingreviewinordertoexpressaconclusion:

•WeassessedtheeportingCriteria,policiesandprinciples,with

respecttotheirrelevance,completeness,neutrality,andreliability.

•Weconductedconsolidationworksonsocialandcorporateindicators

atthegrouplevel.

•Weveriedenvironmentaldataonsite (3).Weconductedinterviews

withpeopleresponsibleforCreportingandperformedauditingtests,

onasamplebasis,beforeconsolidationoftheIndicatorsatgroup

level.hecoveragerelatedtotheselectedsampleofauditedsitesis

presentedforeachindicatorasfollows:

uAntitAtive inforMAtion

ethiCs ercentageofemployeeswhocompletedthicsandIntegrityverviewraining

environMent/operAtions

Absolutecarbonfootprint(scope1,2andpartof3)

C2emissionsfromfacilities

otalenergyconsumptionandsplitbetweenelectricityandfossilenergy

otalwaterconsumption

roductionofhazardouswaste

roductionofnon-hazardouswaste

environMent/produCts arget:Improvethefunctionalenergyefciencyofkeyproductsbyatleast20%by2010comparedwith2008

soCiAl

otalheadcount

%ofwomen/headcount

Numberofemployeeswhofollowedtrainingin2010

ercentageofhighpotentialpopulationchangingpositionoverthreeyears

heAlth & sAfety Numberofdaysofabsenceduetowork-relatedaccidentsperemployee

responsible supply ChAin%ofkeyandpreferredsuppliers’Cpracticesassessed

%ofactivesuppliersassessedonCassatisfactoryorabove

CoMMunity involveMent NumberofvolunteerismhoursdonatedbyAlcatel-Lucent’semployees

uAlitAtive inforMAtion

responsible supply ChAin

AllAlcatel-Lucentsupplierswhoaretosignabusinessagreementwiththecompanyarerequiredthroughcontractualtemplatestocommittothecodeandcascadeitsrequirementsthroughtheirownsupplychain

If/whensupplierC ratings areunsatisfactory,we require suppliers to draftand implement a remedial planto addressweaknessesidentiedduringassessment

Cr governAnCe

CoperationsthroughouttheGrouparehandledbythemembersoftheCorporateesponsibilityNetwork.Networkmemberscomefromadozendifferententities,includingtheAlcatel-LucentFoundation,nvironment,HealthandSafety,BellLabs,ublicAffairs,Humanesources,fceofBusinessConduct,CorporateCommunications,iskandCrisisManagement,Governanceandurchasing

soCiAlCompanytransformationsurvey:Allemployeesareinvitedtoparticipateinasimple,13-question,web-basedsurveywhichaddresseslevelsofengagementinspecicareaslinkedtochange

environMent/produCtsIn2010,webeganincludingcarbonfootprintinformation,i.e.,greenhousegasemissions,intheproducteco-declarationforallnewproductfamilies.hisinformationisderivedusingAlcatel-Lucent’sLCAstimator

(1)Alcatel-LucentGHGInventoryManagementlan,2010Cprotocolandappendix.(2)ISA3000fromIFAC,GlobaleportingInitiative(GI),orAA1000AccountabilityStandard.

(3)nsiteaudit(Bydgoszcz,olandandBangalore,India).nremotefollow-upreviewofsitesauditedin2009(Vélizy–FranceandMurrayHill,USA)

10613. iNDEPENDENT VERifiCATiN sTATEMENT




•Atthegrouplevel,weconductedinterviewswithpeopleresponsiblefor

IndicatorsinordertoassesstheapplicationoftheeportingCriteria.

•Atthegrouplevel,weimplementedanalyticalproceduresandveried,

onatestbasis,thecalculationsandtheconsolidationoftheIndicators.

•WereviewedsupportingevidencewithrespecttotheStatements.

•WereviewedthepresentationoftheIndicatorsandtheStatementsin

theCeportandtheassociatednotesonmethodology.

Inperformingourwork,wewereassistedbyourspecializedsustainable

developmentteam,placedundertheresponsibilityofMr.ricDuvaud,

partnerinchargeofourClimateChangeandSustainabilityService.

Lmtaton of our revewurreviewwaslimitedtotheStatementsandIndicators(allbulleteditems)

identiedaboveanddidnotcoverotherdisclosuresintheCeport.

Ahigherlevelofassurancewouldhaverequiredmoreextensivework.

informaton about te Reportn Crtera and te

statement preparaton proceWithregardstotheeportingCriteriaandtheStatementspreparation

policiesandprinciples,wewishtomakethefollowingcomments:

RelevanceAlcatel-Lucent’ssustainabilityreportingismadeupofawidesetof

indicatorsallowingcoverageofthesector’skeyCissues.

Concerningenergyandimpactonclimatechange,Alcatel-Lucenthas

improvedthecalculationofitscorporatecarbonfootprint,inparticular

byusingextrapolationmethodswhichdeneforeachsite(production

site,ofces…)theaverageconsumptiondependingonsurfacearea,and

onthebasisofapreviousstudyongroupsites’energyconsumption.

heindicator relatedto productsenerg yefficiency (4)targetedan

objectiveforyear2010.Itshouldbereplacednextyearbyanindicator

takingintoaccountupdatedimprovementobjectives.

CompleteneheIndicators’reportingperimeteraimstocoverallofAlcatel-Lucent’s

relevantactivities.However,thetotalgroupperimeterisnotcovered

thisyearforsomeindicators.

•Forenvironmentalindicators,thereportingprocessisimplemented

throughoutthecompany’ssignicantentities.Forthenon-reporting,

anextrapolationofdataisperformedinordertocover100%of

thecompany’senvironmentalimpacts,sites.Adescriptionofthe

extrapolationmethodisprovidedonpage96.hereportingcoverage

ofeachenvironmentalindicatorispresentedasfollows:

•For the carbonfootprint indicator, Alcatel-Lucent decided to

extendthescopeofthereportingbyincludingsomeofthescope

3greenhousegasesemissions.However,thegreenhousegases

emissionsrelatingtothefollowingitemsarenotyetincluded:ntering

materials;Contractedroadtransportationofgoods,Waste;Life-

ending;Fixedassets.

RelabltyAlcatelLucent’sreportingprocessissupportedbydedicatedcomputer-

basedreportingtools.hesetools,togetherwithaquitestructured

internalcontrolprocess(performedatsitelevelbythevalidatorand

thenatconsolidationlevelbyenvironmentalandhealthandsafety

experts),allowforthecompanytoimprovedatareliability.

Nevertheless,internalcontrolsatthesitelevelshouldbebetter

formalizedandmoresystematicallyperformed.Inparticular,controls

expectedbythe validatorshouldbedescribedin thereporting

guidelinesandcouldbeintegrateddirectlyinthecomputer-basedtools.

hereportingofthesocialandsocietalindicatorsisnotyetdocumented

throughcorporateguidelinesdeningindicatorsaswellascalculation

methodologies.

Neutralty and clartyApedagogicaleffortismadetoreportingcontributorsthroughthe

formatofthereportingguidelines.However,somedenitionsshould

beclariedandmoreexamplesprovidedintheCprotocolinorderto

makeresultsmorerobustandreplicableinthefuture.

ConcluonBasedonourreview,nothinghascometoourattentionthatcausesus

tobelievethat:

•theIndicatorswerenot established,in allmaterialaspects, in

accordancewiththeeportingCriteria;and

•theStatementswerenot presented,inall materialaspects, in

accordancewiththeprinciplesofreliability,neutralityandclarityas

denedbyinternationalstandards.

heStatutoryAuditors

NS&YUNGetAutres

Jean-YvesJégourel

WiththeassistanceofNS&YUNG

ClimateChange&SustainabilityServices

ricDuvaud

aris-LaDéfense,France,Mai5,2011

indcator Reportn rate

lectricityconsumption,fossilfuelconsumption,total

energyconsumptionandC2emissions(scope1and2)

84%

Waterconsumption 69%

Hazardouswasteproduction 80%

Nonhazardouswasteproduction 79%

indcator Reportn rate

ercentageofemployeeswhocompletedthicsand

Integrityverviewraining

83%

Numberofvolunteerismhoursdonated

byAlcatel-Lucent'semployees

Notmeasured,

lowerthan100%

•Forotherindicators,noextrapolationmethodisavailableandreporting

coverageisbelow95%inseveralcases:

Envronmental ndcator sample coverae

lectricityconsumption 10.1%

Non ren ewab le energ y consumption 2 2.8 %

otalenergyconsumption 12.7%

otalwaterconsumption 10.1%

o ta l pr od uc ti on of h az ar do us wa st es 1 .4 %

otalproductionofnonhazardouswastes 4.7%

C2emissions(scope1and2) 11.3%

(4)Improvethefunctionalenergyefciencyofkeyproductsbyatleast20%by2010comparedwith2008.

107

CorporAte responsibility report glossAry AlcatelLucent 2010




CRCorporateesponsibilityintegratestheinterestsofstakeholdersinto

thecompany’sbusinesspoliciesandactions.mbracingtwomain

concepts:accountabilityandtransparency,Cfocusesonthesocial,

environmental,andnancialactivitiesofacompany—thetriplebottom

line,withthegoalbeingtopositivelyimpactsocietywhileachieving

businesssuccess.

EhsMsnvironment,HealthandSafetyManagementSystemisspecicto

afacilityoroperationbutgenerallyincludes:analysesofassociated

environmental impacts,safety risksand legalrequirements,

developmentofHSobjectivesandtargets,establishingprogramsto

meettheseobjectivesandtargets,monitoringandmeasuring,ensuring

employees’HSawarenessandcompetence,reviewingprogressand

improvingtheHSMSprogressinachievingtheobjectives.

gesiheGlobale-SustainabilityInitiativeisuniquelydedicatedtoinformation

andcommunicationtechnologies(IC)sustainabilitythroughinnovation.

GeSIwasbornin2001tofurthersustainabledevelopmentintheIC

sector.GeSIfostersglobalandopencooperation,informsthepublic

ofits members’voluntaryac tionsto improvetheirs ustainability

performance,and promotestechnologiesthatfostersustainable

development.

gRiheGlobaleportingInitiativehaspioneeredthedevelopmentofthe

world’smostwidelyusedsustainabilityreportingframeworkandis

committedtoitscontinuousimprovementandapplicationworldwide.

hisframeworksetsouttheprinciplesandindicatorsthatorganizations

canusetomeasureandreporttheireconomic,environmental,and

socialperformance.

hLNHighLeverageNetwork™:architecturewhichsimultaneouslyscalesand

managesnetworkcapacitytomeetincreasingbandwidthdemandwhilst

deliveringdifferentiated,revenue-generatingservices.

iCTInformationandCommunicationechnology.

iEC 62430Standard fromInternational lectrotechnical Commissionfor

nvironmentallyConscious Designfor lectrical andlectronic

roducts.

iEEE Potonc socetyIistheworld’slargestprofessionalassociationfortheadvancement

oftechnology.hehotonicssocietywithintheIfocusesonlasers,

opticaldevices,lightwavetechnology,etc.

is 14001Internationalenvironmentalstandardthatidentiestheelementsof

annvironmentalManagementSystemnecessaryforanorganization

tomanageitsimpactontheenvironmenteffectively.Compliance

withthisstandardcanbecertiedbyanaccreditedthirdpartyona

voluntarybasis.

is9001:V2008

Internationalqualitymanagementstandardthatmeetsregulatoryand

statutorystandards,aswellascustomerrequirements.

iTUInternationalelecommunicationsUnion:theleadingUnitedNations

agencyforinformationandcommunicationtechnologyissues,andthe

globalfocalpointforgovernmentsandtheprivatesectorindeveloping

networksandservices.

LCALifeCycleAnalysis:methodologydevelopedtoassessaproduct’sfull

environmentalimpact,fromrawmaterialtonaldisposalwiththeaim

ofincreasingresourceefciencyanddecreasingliabilities.Itcanbe

usedtostudytheenvironmentalimpactofeitheraproductorthe

functiontheproductisdesignedtoperform.

hsAs 18001ccupationalHealthandSafetyAssessmentSeries:international

specicationforidentifyingnecessaryelementsforanorganizationto

manageitsoccupationalhealthandsafetyriskseffectively.Compliance

withthisspecicationcanbecertiedbyanaccreditedthirdpartyon

avoluntarybasis.

sA8000Socialstandardbasedontheprinciplesofinternationalworkplacenorms

focusedonimprovingworkingconditionsaroundtheworld,contained

withintheIL(InternationalLabourrganization)conventions,the

UN’sUniversalDeclarationofHumanightsandtheConventiononthe

ightsoftheChild.

sAMSustainableAsset Managementis aninvestmentgroup focused

exclusivelyonSustainabilityInvesting.hroughitsindexactivities,SAM

haspartneredwithDowJonesIndexesforthepublicationandlicensing

ofthegloballyrecognizedDowJonesSustainabilityIndexes(DJSI)as

wellascustomizedsustainabilitybenchmarks.

sarbane-xleyUnitedStateslawenhancingaccountingstandardsinpubliccompanies.

smart MeternSmartmeteringprovidesutilitycustomersinformationonareal-time

basisabouttheirdomesticenergyconsumption.

TL9000Qualitystandardthatprovidesvalueandbenetsacrossallsupply

chaindisciplines(buyers,suppliers,andserviceproviders)byproviding

aconsistentsetofqualityexpectationsthatparallelrapidtechnology

changesandcustomerexpectations.

Unted Naton global CompactStrategicpolicyinitiativeforbusinessesthatarecommittedtoaligning

theiroperationsandstrategieswithtenuniversallyacceptedprinciplesin

theareasofhumanrights,labour,theenvironmentandanti-corruption,

benettingeconomiesandsocietieseverywhere.

WEEE DrectvehepurposeofDirective2002/96/ConWastelectricalandlectronic

quipment(W)is topreventwasteelectricalandelectronic

equipment,andinaddition,encouragethereuse,recyclingandother

formsofrecoveryofsuchwastessoastoreducethedisposalofwaste.

Italsoseekstoimprovetheenvironmentalperformanceofalloperators

involvedinthelifecycleofelectricalandelectronicequipment.

CorporAte responsibility report glossAry



AlCAtel-luCent2010 corporateresponsibility report

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