The Think Big Blueprint &

Telefónica UK ‘s Journey

to Sustainability Leadership

Contents

01

02

03

Starting a 3 year journey

Establishing the Blueprint

What is the Blueprint?

What next? 04

01 Starting a 3 year journey;

Sustainability within Telefónica UK

2008 Planning the journey • Launch action lead by a personal ambition of O2’s CEO &

Board to be recognized as a sustainability leader by 2012

• It starts with a box of detergent

• Establish Sustainability team

• Used Forum’s Laggard-Beginner-Performer-Leader-Pioneer

model to benchmark O2

Laggard

Leader

2012

Beginner

2008 Performer

Pioneer

2008 Planning the journey

• Developed and implemented a

new sustainability strategy

Devices

Inspire our customers to

choose devices which

help them to lead easier

and sustainable life-

styles (and incentivise

them to retain and

recycle devices)

Services

Be recognised as the

market leader in services

that connect for good

and help reduce the

impact on the

environment of O2 and

our customers

Community

Inspire young people to

join together to make a

positive change to their

community

O2 People

Inspire our people to lead sustainable life-styles both inside &outside work

House in order

Care for the environment by having the most efficient network & operations

Sustainability

• Developed and implemented a

new governance structure

• Initiated momentum through ‘Star

projects’

CR/ Environment Working

Group Co-ordinate action plan to deliver targets

(every 4 weeks)

Sustainability Taskforce Oversee and manage Sustainability/

Community strategy (meets every 6 weeks)

Community Working Group Co-ordinate action plan to deliver targets

(every 4 weeks)

Sustainability Board

sponsor: Ronan Dunne Driving agenda at a senior level

2009 Star projects start delivering

• What is a star project ? • High visibility, Bold ambition

• A 12 month + time frame

• Likely to catalyse significant change

• These projects cover our Sustainability Strategy – Devices, Services,

Community, O2 People & House in Order, e.g. • Carbon reduction

• Greener Devices

• Green Work and Travel

• Sustainable Procurement

• Results • Feb ‘09 – 1st UK operator to be awarded Carbon Trust Standard

• Oct ‘09 - Partner Sony-Ericsson in UK GreenHeart launch

• Oct ‘09 – O2 Recycle launches online

Laggard

Leader

2012

Performer

2009 Beginner

Pioneer

2010 Engaging our people

• Engaging our People

• Launched Think Big (Jan 2010)

• Dedicated intranet site

• Call to action – ‘the Big Six’

• Call to action – Big Thinkers & Eco champions

• Think Big for Young People

• Why do?

• Published Tomorrow’s Workspace

• Launched Eco- Rating

• Staff awareness reaches 79% by ‘11

Beginner

2008 Leader

2012

Strong

Performer

2010

Performer

2009 Pioneer

sustainable

products &

services

Reduce

energy

Reduce

water

Reduce

travel

impact

Support

young

people

Reduce

waste

1 2 3

4 5 6

2011 Embedding in Strategy & Services

• O2 Learn Launches UK’s largest Classroom (Nov ‘10)

• O2 Health ramps up (Launch Jul ‘10)

• O2 in top 5% of CRC rankings

• Sustainability embedded in Project CAPEX process

• Sustainability embedded in Business Strategy Committee

• Think Big embedded in Brand strategy

• ChargeMaster and O2 launch Electric Vehicle Charging (Oct ‘11)

• O2 launch national cinema campaign on Think Big for Young People

• Sustainability team begin TB Blueprint

Performer

2009 Leader

2012

Cusp of

Leader

2011

Strong

Performer

2010

Pioneer

02 Establishing the

Blueprint

Establishing the Blueprint Becoming sustainability leaders

• In 2010, Forum for the Future noted that while we’d launched lots of great

initiatives, it was difficult to ‘join the dots’.

• If we wanted to be a sustainability leader, we needed to deliver a clear

narrative in the context of a goal and a purpose

• The Board agreed and asked us to develop the plan hand-in-hand with our

stakeholders

Establishing the Blueprint Outside in

• In the meantime, other companies had also

launched, or were launching sustainability plans

since Marks & Spencer's set out their Plan A,

with the ultimate goal of becoming the world's

most sustainable major retailer

Other companies to follow suit include:

• Unilever: their Sustainable Living Plan is now

considered best in class

• IBM: Smarter Planet

• Sony: Road to Zero

• Co-op: Join The Revolution

• Anglian Water: Love Every Drop

Plan A DOING THE

RIGHT THING

• We spent a year talking and listening to a wide range of stakeholders,

including:

Specialist sustainability stakeholders

Employees – through surveys, face-to-face interviews, events

Consumers – through focus groups

Corporate customers

A stakeholder event

• We then took those insights to the business to start developing our goals

and commitments, ensuring that they were in line with our business and

brand strategy

What we did

03 What is the Think Big

Blueprint?

Think Big Blueprint

10 million

By 2015 our products and

services will be helping 10

million people live in easier

and more sustainable ways

1 million

By 2015, we’ll help 1

million young people

develop skills for life and

lead community projects

across the UK

Think Big Blueprint: Our plan for people and planet

X 10

By 2015, we’ll deliver carbon

benefits to customers that

are 10 times the impact of

our network

Underpinned by: • 40 tangible, time-bound commitments and

• Global policies and processes

Think Big for people Think Big for planet

We believe that by thinking big and developing digital innovations we will create

new possibilities for people and the planet

Think Big for customers

•It’s our new 3 year sustainability strategy

•It’s owned and been built by you

Some ‘Hero’ commitments

• We will halve the emissions from our

network by 2015, relative to data traffic

• We will no longer offer a new charger

as standard with a new phone

• We’ll have established individual

sustainability responsibilities within all

O2 employees’ roles and link to a

reward and recognition programme

• We will help 350,000 UK households

save over 300,000 tonnes of carbon

• We will help over 125,000 business

employees work flexibly, and

collectively save over 500,000 miles of

travel and over 160,000 thousand

tonnes of carbon emissions

Some ‘Hero’ commitments

• We will save the NHS 1m hours of

health-care staff time, £50m of savings

that can be reallocated to primary

healthcare, and 100,000 tonnes of

carbon through our O2 Health services

• We will have improved the lives of over

600,000 young people through the

development of local community

initiatives, inspired and led by young

people

• We’ll back 5,000 young people to lead

community projects across the UK

• We’ll support 4,000 young people to

gain work skills and experience in

order to improve their employability

and enterprise potential

Launch; Feb 2012

• Launched on Tuesday 7th

February

• Positive media reaction so

far

• Positive stakeholder reaction

so far

• Positive Telefónica reaction

so far

New Website

You can get all the info and download the Blueprint at

http://www.o2.co.uk/thinkbig/blueprint

04 What next?

2012 And Beyond

• Delivering on the original ambition; Leadership by 2012

• Delivering the Commitments through Directorate’s plans

• Personal Objectives underway

• Developing tools to better monitor performance on targets

• Reviewing KPIs and Governance

• Working on sustainable service pipe-line

• Delivering innovation

• Demonstrating in-built sustainability

• Quantifying effect

• Supporting Telefónica

• Digital

• Wayra,

• Eco-rating, recycle

Performer

2009 Leader?

2012

Cusp of

Leader

2011

Strong

Performer

2010

Pioneer

Cusp of

Leader

2011