BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT

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BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
BRIGHT IDEAS FOR
A BRIGHT FUTURE
THE 2015 OPTUS SUSTAINABILITY REPORT

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                                                                  SECTION / ARTICLE   1
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
TABLE OF CONTENTS                                       ABOUT THIS REPORT
         The best bits of 2015                              4   THIS IS OUR 16TH ANNUAL REPORT ON THE SUSTAINABILITY PERFORMANCE OF SINGTEL OPTUS PTY LTD (OPTUS).
                                                                THE REPORT COVERS OUR FINANCIAL YEAR 1 APRIL 2014 TO 31 MARCH 2015.
         A message from our Chairman and CEO                6
                                                                This report and previous years’ sustainability report can be found at
         About Us                                           9   www.optus.com.au/about/sustainability/reports

                                                                Offshore ventures, franchised retail outlets and subsidiaries are not included in this report
         Sustainability at Optus                           10
                                                                unless otherwise stated. This report has been prepared ‘in accordance’ with the Global
                                                                Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines - Core option.
         Marketplace & Customers                           20
                                                                The GRI Content Index can be found on pages 80-82.
         Our Community                                     36
                                                                We use the London Benchmarking Group (LBG) methodology to measure and report on
                                                                our contribution to the community. This year we sought external limited assurance under
         Our People                                        50
                                                                ISAE3000 for selected indicators in the report. The scope and basis for the assurance is
         Environment                                       60   provided in the Assurance Statement at the end of the report.

                                                                Ere-S Pte Ltd provided the assurance as part of a wider engagement with Singtel,
         The progress we’ve made                           72
                                                                which provided assurance over the Singtel Sustainability Report. This helps to facilitate
         Memberships and industry initiatives we support   74   a consistent approach to sustainability assurance across the Group.

                                                                All information contained in the report was correct as at 18 June 2015.
         Assurance statement                               76
                                                                Our approach to sustainability, this report, and previous years’ reports can be found at
         GRI Index                                         80   www.optus.com.au/about/sustainability

                                                                Singtel has produced its first Singtel Group Sustainability Report which can be accessed
                                                                online at www.info.singtel.com/sustainabilityreport2015

                                                                We welcome your feedback or questions in relation to this report.
                                                                Please contact sustainability@optus.com.au

2   SECTION / ARTICLE                                                                                                                                            SECTION / ARTICLE   3
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
THE BEST BITS OF 2015
HIGHLIGHTS
                      MARKETPLACE
                      AND CUSTOMERS                                        COMMUNITY                                       PEOPLE                              ENVIRONMENT

                          98.5%                            94% OF STUDENTS
                of Australian population covered by our    IMPROVED THEIR                                                           75%
                 3G network and 86% of the Australian
                  Population covered by our superfast
                                                           LITERACY LEVELS                                        People engagement increased to 75%
                            4G Plus network.                through our mobile student2student program with             and People NPS also up            The Australian Business Roundtable
                                                                           The Smith Family                                                                 for Disaster Resilience and Safer
                                                                                                                                                       Communities, of which we are a founding
                                                                                                                                                        member, was awarded the certificate of
                                                                                                                                                       distinction in the prestigious 2015 United
                                                                                                                                                             Nations Sasakawa Awards for
                               64.2%                                          Invested                                                                               Risk Reduction
                        Number of 4G mobile
                      subscribers increased by
                         64.2% to a total of
                                                                        $8.7M
                                                                         into the community
                                                                                                                         Overall health & wellbeing
                                                                                                                            score improved by
                       3.52 million customers
                                                                                                                           20.9%

                                                                         37,821                                                                                Invested into the upgrade
                      Further widened sustainability                    students attended a Digital
                      considerations in our updated                  Thumbprint workshop with 95%                                                                of 560 key mobile sites
                         Vendor Code of Conduct                     of students confirming they learnt                                                           with smarter meters to
                                                                   something in the workshop they can                                                           provide greater visibility
                                                                         use in their everyday life.                                                           and control of our energy
                                                                                                                     Introduced a comprehensive                       consumption.
                                                                                                                        mental health strategy

                                                                             510 volunteer roles
                               New satellite
                   OPTUS 10                                 MENTORED 769
                  LAUNCHED                                VULNERABLE YOUTH                                                                                          In our mobile network
                                                                                                                                                                    we’ve reduced our energy
                      connecting regional customers       through various Australian Business Community Network                                                     intensity per Terabyte even
                            and remote sites                  (ABCN) programs, including work place visits and                                                      though mobile data use
                                                                        interview skills workshops.                                                                 (“traffic”) on our networks
                                                                                                                      Our training programs were
                                                                                                                       recognised externally by                     has continued to increase
                                                                                                                      winning 2 industry awards                     substantially year on year.

                       NPS +4                                                We’ve reached
                       We remain the only Tier 1
                       Telco in positive NPS (+4)                      11,207
                                                                   students across 146 schools as part
                                                                  of the Kids Helpline @ School program
                                                                           since its inception in
                                                                                June 2013.

4   HIGHLIGHTS 2015                                                                                                                                                                      HIGHLIGHTS 2015   5
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
CHAIRMAN’S MESSAGE                                                                                                                    CEO’S MESSAGE

I AM VERY PLEASED TO PRESENT OPTUS’ 2015 SUSTAINABILITY           I’m pleased to say that in December 2014, we achieved               I AM THRILLED TO BE BACK IN OPTUS AND AUSTRALIA, HAVING          We don’t just use our expertise in technology and
REPORT; MY FIRST ONE AS CHAIRMAN AFTER OVERSEEING 10              an important new agreement with the nbn™ which will                 STUDIED HERE AND WORKED WITH VARIOUS PARTS OF THE                innovation to serve our customers alone; we also use it
PREVIOUS SUSTAINABILITY REPORTS AS CEO.                           accelerate the rollout of the NBN so Australians can connect        BUSINESS FOR MANY YEARS, MOST RECENTLY AS MANAGING               to serve our communities. We focus our work around
                                                                  sooner, reduce the overall cost of building the NBN and put                                                                          helping vulnerable young people achieve, thrive and
                                                                                                                                      DIRECTOR OF OPTUS CONSUMER.
This year was all about offering more ‘yes’ to our customers      us a step closer to creating a level playing field in the market.                                                                    belong and assist them in being responsible and savvy
and leading the charge on our ambition to become                                                                                      When I returned to Australia in October 2014, I promised to      digital citizens.
Australia’s most loved and recommended service brand.             Under the new arrangements, Optus will sell its high fibre          focus on three areas to keep building on what we’ve achieved
This is part of our commitment to creating sustainable            coaxial cable assets to nbn™, while retaining ownership                                                                              Our focus on material issues goes beyond just our
                                                                                                                                      in our business over the last 2 years - continue to invest
                                                                  of strategic assets like the aerial fibre which connects our                                                                         immediate operations but into our extended value and
and long-term growth for our business, while leading and                                                                              in a network that keeps up with Australian’s data hungry
                                                                  mobile base stations and enterprise customers. Importantly                                                                           supply chain. We’ve undertaken a review of our supply
shaping positive change for our marketplace & customers,                                                                              habits, give customers something more - enhancing their
                                                                  this will free up capital so that we can invest in new                                                                               chain risks and this year will focus on updating our
the communities we operate in, our people and the                                                                                     experiences in ways that matter the most to them and help
                                                                                                                                                                                                       supplier engagement and reviews on issues such as work
environment.                                                      technology which is critical to embark on our strategy              them live more yes and to make Optus the best and most fun
                                                                                                                                                                                                       health and safety, customer data protection and privacy, in
                                                                  to deliver disruptive products and innovation to more               place to work in Australia.
                                                                                                                                                                                                       particular where we’ve overseas outsource operations in
Throughout the year, Optus continued to enhance the               consumers.
                                                                                                                                      To achieve these goals, we’ve listened to what is important      our contact and IT development centres.
competitiveness of its network – with A$1.4 billion
in capital expenditure and complementary spectrum                 Through the natural disasters that have hit Australia over          to our stakeholders in order to prioritise how we serve our
                                                                                                                                                                                                       I am also absolutely committed to making Optus the
investments of more than A$720 million. At the end                the past few years, we have seen what a difference the              customers, communities, people and the environment. The
                                                                                                                                                                                                       best and most fun place to work in Australia. This
of April 2015, Optus’ 4G network reached 86% of the               resilience and reliability of our network can make to the           issues that are of material importance to our stakeholders as
                                                                                                                                                                                                       year I’m delighted that our employee engagement
Australian population. This is a huge step and means more         communities we operate in. In this regard, Optus, together          well as to us as a business form the basis of this report.
                                                                                                                                                                                                       measured through Your Voice has increased to 75% with
Australians are enjoying a superfast data experience.             with six other major Australian corporations through the                                                                             improvements in several categories including our areas
                                                                                                                                      For our customers, we’re constantly innovating to meet their
                                                                  “Australian Business Roundtable for Disasters and Safer             changing needs. They want simple products and they want          of customer focus, competition and leadership. This
This year we also launched Australia’s latest state-of-the-       Communities” have played a leading role in discussions with                                                                          reflects the belief in our culture and our brand, as well
                                                                                                                                      value. We want to make a difference to our customers’ lives
art satellite, 29 years after we propelled our first satellite    the government on adapting critical infrastructure to climate                                                                        as what we’re doing for customers and communities.
                                                                                                                                      by engaging, enhancing and entertaining them.
into orbit. As the only local company to own and operate          change and building greater community resilience.                                                                                    We ‘ve worked to strengthen our diversity & inclusion
satellites, Optus is the leading provider of satellite services                                                                       Examples of our innovation include the introduction of Cash      efforts, with a focus on developing successful women
across Australia and New Zealand. Australian customers in         Our vision is to continue to be a company that not just             by Optus, a contactless payment app for smartphones and          in leadership through various mentoring, coaching,
rural and remote areas will be the first to benefit from the      challenges the competition, but one that shapes the market          wearable devices that replaces cash purchases below $100.        networking and other leadership development
launch of Optus 10.                                               with new technologies and innovative products, backed by            This is a first for Australian telcos and showcases ingenuity    opportunities for our female talent across all levels of the
                                                                  brilliant service and a reliable, safe network.                     and innovation that Optus is known for. We’ve also made the      organization.
Optus has always been about choice and competition - it’s                                                                             Netflix interface available through Fetch TV, introduced plans
been our mantra for the past 20 years since we started            We’ll continue to be restlessly optimistic and we’re ready to       that allow the sharing of data across multiple devices as well   I would like to take this opportunity to celebrate the
as a business. Part of my role as Optus’ chairman is to           play to win and help all Australians Live More Yes.                 as with the entire family, and transformed nearly 100 stores     positive impact that we’ve had on our stakeholders. I’m
spend more time working with Governments on our plans                                                                                 to service our customers better.                                 excited about the year ahead as we continue to build this
for the National Broadband Network (NBN) and continue             Paul O’Sullivan                                                                                                                      brand and keep Optus a great place to work.
advocating for a more competitive market.                         Chairman                                                            Customers are noticing the difference and so are we - we
                                                                                                                                      remain the only Tier 1 telco with a positive Net Promoter        Allen Lew
                                                                                                                                      Score (NPS).                                                     CEO

6   CHAIRMAN’S MESSAGE                                                                                                                                                                                                                              CEO’S MESSAGE     7
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
WE’RE ARRANGED
                                                                                                                                 INTO 3 MAIN BUSINESS

         ABOUT US
                                                                                                                                  AREAS WHICH SERVE
                                                                                                                                  DIFFERENT MARKETS

                                                                                                                   Group Consumer – this combines the
                                                                                                                   Group’s consumer-related functions,
                                                                                                                   including our international business in the
                                                                                                                   emerging markets which leverages our
                                                                                                                   mobile customer base of more than 500
                                                                                                                   million for optimised outcomes.

                        hi
                                                                                                                     Group Digital Life - drives the Group’s
                                                                                                                     efforts to be at the forefront of the
                                                                                                                     digital space. It focuses on creating new
                                                                                                                     avenues and revenue platforms for the
                                                                                                                     Group. Key focus areas include premium
                                                                                                                     over-the-top video, digital marketing and
                                                                                                                     advanced analytics.

                                                                                                                    Group Enterprise - delivers innovative and
                                                                                                                    comprehensive ICT solutions to the Group’s
                                                                                                                    enterprise customers across geographical
                                                                                                                    boundaries. Both Singtel and Optus deliver
                                                                                                                    satellite services, international data and
                                                                                                                    managed services, cloud computing and
                                                                                                                    enterprise mobility services.

                             WE’RE AUSTRALIA’S SECOND-LARGEST TELCO      continues to be listed on the Singapore     3G mobile base stations that provide
                             WITH OVER 9,000 EMPLOYEES AND 346 YES       Exchange Securities Trading Limited         coverage of 98.5% of the Australian
                             OPTUS SHOPS.                                (SGX) and the delisting from the ASX        population. We’ve more recently
                                                                         will not materially affect Singtel’s        switched on 4G to over 3,200 base
                             We help more than ten million customers     compliance obligations or corporate         stations across our network providing
                             each day and we’re also the only carrier    governance policies and practices.          4G coverage to 86% of the Australian
                             in Australia to own and operate three       The wider Singtel Group helps over 550      population.
                             types of network infrastructure - mobile,   million customers around the world
                             fixed and satellite.                                                                    We provide customers with a range of
                                                                         and is a major communications player
                                                                                                                     services including:
                             We help businesses and people               throughout Asia and Africa.
                                                                                                                     • Mobile
                             communicate anytime and in many
                                                                         OUR AMBITION                                • Fixed and IP telephony
                             ways - making communications easier,
                                                                         Our vision is to lead Australia in          • Business network services
                             faster, more economical and reliable.
                                                                         outstanding customer experience
                             This is helped by breaking the barriers                                                 • Fixed and wireless broadband
                                                                         and become the most loved and
                             of distance, price, time and technology                                                 • Satellite services
                                                                         recommended service brand in
                             and by building strong bonds among us,                                                  • Entertainment and subscription TV.
                                                                         Australia. We’re guided by five values
                             with our shareholders, customers and
                                                                         - Customer Focus, Challenger Spirit,        We also deliver wholesale services to
                             business partners.
                                                                         Teamwork, Integrity, and Personal           third parties for resale under their own
                             We’ve been a wholly owned subsidiary        Excellence.                                 brand. Our retail products and services
                             of Singtel since 2001. We were originally                                               are sold to customers via phone,
                                                                         We own and operate our network
                             listed on the Australian Stock Exchange                                                 internet or through our retail outlets.
                                                                         infrastructure which we wholesale
                             (ASX) on 10 September, 2001 with
                                                                         to other providers. We also use the         Our head office is located at
                             Singtel announcing our delisting from
                                                                         services of other providers to connect      1 Lyonpark Rd, Macquarie Park,
                             the ASX on 22 April, 2015. The delisting
                                                                         our customers. We’ve around 6,000           NSW 2113.
                             took effect on 5 June, 2015. Singtel

8   SECTION / ARTICLE                                                                                                                             ABOUT US       9
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
FINANCIAL RESULTS                                                                                                                                     OPTUS CORPORATE
     For the financial year ended 31                                                               2015    2014
                                                                                                                                                       SUSTAINABILITY FRAMEWORK
     March, 2015, we delivered strong full
     year revenue and EBITDA growth,                 ECONOMIC VALUE GENERATED                      A$m     A$m
     underpinned by the improved                                                                                                    WE AIM TO DEEPLY EMBED SUSTAINABILITY IN OUR DNA, CULTURE,
                                                     Revenue                                       8,790   8,466
     performance of our mobile operations.                                                                                          VALUE SYSTEM AND THE WAY WE RUN OUR BUSINESS AND ENGAGE
     Operating revenue was up 4% to A$8.79           ECONOMIC VALUE DISTRIBUTED                                                                         OUR STAKEHOLDERS
     billion. EBITDA grew 5% to A$2.62
     billion, while annual net profit grew           Operating costs (excluding staff costs)       5,002   4,851
     1% to A$841 million. Underlying net
                                                     Staff costs                                   1,246   1,171
     profit grew 4% year-on-year to A$873
     million. EBITDA margin improved 0.4             Dividends to shareholders                     560     560
     percentage points to 29.9%.
                                                     Tax expense                                   360     361                                TO CREATE SUSTAINABILITY AND LONG-TERM
     Free cash flow for the full year was
     up 8% to A$976 million.                         Community investments                          9       10
                                                                                                                                        GROWTH FOR OUR BUSINESS, WHILE LEADING AND SHAPING
                                                                                                                                       THE POSITIVE CHANGE FOR OUR MARKETPLACE & CUSTOMER,
                                                     ECONOMIC VALUE RETAINED                       1,613   1,513
                                                                                                                                  THE COMMUNITIES WE OPERATE IN, OUR PEOPLE AND THE ENVIRONMENT:

                                                                                                                          MARKETPLACE                       COMMUNITY                          PEOPLE                    ENVIRONMENT

 WHAT SUSTAINABILITY                                                                                                      AND CUSTOMERS
                                                                                                                    • Delivering superior         • Driving positive and        • To be an employee
                                                                                                                                                                                     our people are
                                                                                                                                                                                                                 • Through understanding
                                                                                                                                                                                                                   our impacts,

 MEANS TO US                                                                                                          customer experience
                                                                                                                      and transforming the
                                                                                                                      way our customers
                                                                                                                                                      sustainable changes
                                                                                                                                                      to disadvantaged
                                                                                                                                                      communities, especially
                                                                                                                                                      vulnerable youth
                                                                                                                                                                                     proud to work for by
                                                                                                                                                                                     providing care and
                                                                                                                                                                                     equal opportunities in
                                                                                                                                                                                                                   we’re committed
                                                                                                                                                                                                                   to minimising our
                                                                                                                                                                                                                    environmental footprint
 DRIVING SUSTAINABILITY                                                                                               live and work with our
                                                                                                                                                                                     workplace and culture          across our value chain.
                                                                                                                      innovative ICT products
 We’re continually working to deeply                   to take a leadership role and using                                                         • Enabling the inclusion         that diverse, inclusive
                                                                                                                      and services
 embed sustainability in our culture,                  our skills, resources and expertise can                                                        and well-being of young        and collaborative           • We will achieve this
 values, decision-making, products and                 make a positive difference on current                        • Adhering to the highest        people and the broader                                        by delivering on our
 services to create a business that’s                  and future generations.                                                                        community                   • Challenging and                4 strategic pillars:
                                                                                                                      standards of corporate
 positioned for long-term growth. We                                                                                                                                                 developing our people          addressing climate
                                                       We’re leading and shaping positive                             governance
 do this by leveraging the power of                                                                                                                • Engaging our people to         to reach their fullest         change, integrating
 communications, infotainment and our                  change in four key areas, which we call                                                        support the community          potential
                                                                                                                    • Embracing responsible                                                                        the environment
 people to transform lives and make a                  our sustainability “pillars”: Marketplace
                                                                                                                      business practice               through corporate                                             agenda into our value
 positive impact on our society.                       and Customers, Community, our People
                                                                                                                                                      workplace giving and                                          chain, engaging our
                                                       and the Environment.
                                                                                                                                                      volunteer programs                                            stakeholders and
 We focus on areas we feel are
 important to both us and our key                                                                                                                                                                                   product & resource
 stakeholders. We’ve got an opportunity                                                                                                                                                                             responsibility

                                                                                                                   We became a member of the United Nations (UN) Global Compact this year. Our areas of focus support the 10 Principles of
                                                                                                                   the UN Global Compact and we’ll continue to align our priorities with the development of the UN’s Impact 2030 Sustainability
                                                                                                                   Development Goals into the future.

10     ABOUT US / FINANCIAL RESULTS & WHAT SUSTAINABILITY MEANS TO US                                                                                                                                          ABOUT US / OBJECTIVES AND PILLARS   11
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
SUSTAINABILITY GOVERNANCE STRUCTURE
 SUSTAINABILITY
 GOVERNANCE                                                                                                                                              BOARD OF DIRECTORS
 WE BELIEVE GOOD GOVERNANCE IS NOT JUST       Strategic oversight for sustainability       GOVERNANCE STRUCTURE
 ABOUT MAKING ‘CORRECT’ DECISIONS AND         is led by Singtel’s Group Management         We take our compliance standards
 IMPLEMENTING THEM, BUT ABOUT HAVING THE      Committee with Singtel Group                 seriously. For example, our senior
 BEST PROCESSES IN PLACE FOR MAKING THOSE     CSR overseeing the formulation,              leaders and people must complete
 DECISIONS.                                   recommendation, coordination,                mandatory compliance modules such
                                              execution and reporting of the               as Fraud Awareness and Fraud Risk
                                                                                                                                                      MANAGEMENT COMMITTEE
 Over the years, we’ve developed a robust     Group’s sustainability strategy.             Indicators, Information Security, Equal              (Formulating sustainability strategy)
 set of well-defined corporate governance                                                  Opportunity Employment, Conflict of
 processes to improve our corporate           Our Corporate Responsibility Steering
                                                                                           Interest Declaration each year.
 performance and accountability. Our          Committee provides guidance on
 values guide our actions to help deliver     the local execution of the Group’s           But we think it’s important to do
 more ‘yes’ for our customers: Customer       sustainability strategy, delivering on our   more than just comply – we want
 Focus, Challenger Spirit, Teamwork,          commitment to the four focus areas of        to challenge the status quo, show
                                              Marketplace & Customers, Community,
 Integrity and Personal Excellence. They’re
                                              People and Environment with a specific
                                                                                           leadership and continually strive                                 GROUP CSR
 embodied in our Code of Conduct which                                                     to reduce our negative impact and
 drives us to conduct our business in an      focus on our material aspects.               contribute positively to society.                          (Managing sustainability
 ethical manner whenever we deal with                                                                                                              throughout the Singtel Group)
 customers, suppliers, competitors and the
 community.

                                                                                                                                                         CSR WORKING GROUP

                                                                                                                                         SINGTEL                OPTUS                   ASSOCIATES
                                                                                                                                       Singapore               Australia

                                                                                                                                                          REGIONAL GROUP CSR
                                                                                                                                       A Platform for the various working groups to collaborate
                                                                                                                                            and share best practices on CSR programmes

                                                                                                                                     Developing and implementing sustainability and programmes

                                                                                                                                                        Works closely with
                                                                                                                                                     BUSINESS AND SUPPORT UNITS

12   ABOUTS US / SUSTAINABILITY GOVERNANCE                                                                                                                                               ABOUTS US / SUSTAINABILITY GOVERNANCE   13
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
HOW WE ENGAGE OUR STAKEHOLDERS
                                                                                                                                      STAKEHOLDER                                          ISSUES OF INTEREST                                 ENGAGEMENT MECHANISM                                  FREQUENCY

LEARNING FROM LISTENING                                                                                                               CUSTOMERS                                    • Easier and simpler products
                                                                                                                                                                                   • Better service
                                                                                                                                                                                                                                         • Market NPS
                                                                                                                                                                                                                                         • Touch point NPS to capture feedback
                                                                                                                                                                                                                                                                                                  Ongoing

TO OUR STAKEHOLDERS
                                                                                                                                                                                   • Pricing                                                from interactions such as Optus
                                                                                                                                                                                   • Better network speeds and                             Shops, Care and Digital
                                                                                                                                                                                      coverage where you need it

 LISTENING TO OUR STAKEHOLDERS HELPS                                                                                                  SHAREHOLDERS 1                               • Financial and operational                          • One-on-one meetings                                    Quarterly and as
                                                  manage any potential risks to our         read, their views on report content,
 US IDENTIFY KEY ISSUES, RISKS AND                                                                                                                                                    performance                                        • Investor conferences and roadshows                     required
                                                  business, continue to make a positive     what was and wasn’t useful in the last
                                                                                                                                                                                   • Strategy                                           • Conference calls
 OPPORTUNITIES WHICH ARE IMPORTANT                contribution to the community and         report, how they want sustainability
                                                                                                                                                                                   •P  erformance of various                            • Email communications
 TO THEM AND ALSO TO OUR LONG TERM                importantly, identify future industry     information delivered (i.e. soft copy,
                                                                                                                                                                                      business units
 SUSTAINABILITY.                                  trends so that we can innovate            online, hard copy report) and which
                                                  products and services, stay ahead of      topics we should act and report on in
 Our key stakeholder groups include                                                                                                   EMPLOYEES                                    •R  ewards and incentives                            • Employee roadshows                                     Quarterly, annually
                                                  our competitors and offer more ‘Yes’ to   the future.
 customers, shareholders, employees,                                                                                                                                               •C  ustomer Service                                  • Internal intranet                                      and as required
                                                  our customers.
 local communities, charity partners,                                                       This vital feedback has been                                                           • Culture                                            • Staff newsletters
 industry associations, Government and            The table on the next page of our         incorporated into this year’s report.                                                  • Wellbeing                                          • Emails
 regulators, and suppliers.                       stakeholder groups, our engagement        For example we’ve structured the                                                       •D  iversity & Inclusion                             • People NPS Quarterly
                                                  activities and how we’re responding to    report to provide summary information                                                  •L  earning & development                            •A nnual Engagement Survey
 Significant for two main reasons, they’re        stakeholder interests.                    and performance highlights at the front                                                •O  ur work with communities                           – “Your Voice”
 impacted by our operations, products                                                       for readers with limited time, we’ve
 and services and their actions can               This year we also undertook a             added more background information
 also affect our ability to successfully                                                                                              LOCAL COMMUNITIES                            •V  isual impacts                                    • Letter box drops                                       As required
                                                  targeted survey of our stakeholders to    about the sustainability issues faced
 implement our strategies and achieve                                                                                                                                              •P  roperty values                                   • Local newspaper articles
                                                  understand their views on our current     by us, more case studies to update
 our objectives. As such, we engage                                                                                                                                                •P  erceived adverse health                          •C ommunity consultative sessions or
                                                  and future sustainability reporting.      readers on community initiatives, more
 with them regularly to understand                                                                                                                                                    and safety impacts of                                community drop in sessions
                                                                                            balanced disclosure of our positive and                                                   electromagnetic energy (EME)                       •B riefing with local councils and
 their interests and concerns so we               We asked them who had read the
                                                                                            negative impacts and we’ve sought                                                      •N  etwork outages                                     councillors
 can work to meet their expectations,             2014 Sustainability Report, what they
                                                                                            external assurance.                                                                    • Impact of natural disasters on                     • Briefing Members of Parliament
                                                                                                                                                                                      network services                                   • Web based consultation updates

                                                                                                                                      CHARITY PARTNERS AND                         •S
                                                                                                                                                                                     afe & secure digital online                        • Face-to-face meetings                                  Depending on partner
                                                                                                                                      COMMUNITY ORGANISATIONS                       practices                                            • Workshops                                              – from weekly to
                                                                                                                                                                                     ommunity access to services
                                                                                                                                                                                   •C                                                    • Online surveys                                         monthly
                                                                                                                                                                                   •R
                                                                                                                                                                                     educing environmental impact                       •T his year we conducted a specific
                                                                                                                                                                                   •S
                                                                                                                                                                                     ocial impact measurement                             online survey to help us identify our
                                                                                                                                                                                                                                           material sustainability issues and also
                                                                                                                                                                                                                                           to obtain feedback on the information
                                                                                                                                                                                                                                           and presentation of our 2014
                                                                                                                                                                                                                                           Sustainability Report

                                                                                                                                      INDUSTRY                                     •V
                                                                                                                                                                                     aries depending on industry                        •W
                                                                                                                                                                                                                                           e are a member of a number of                         As required
                                                                                                                                      ASSOCIATIONS                                  topic and focus of information.                       industry associations and engage in
                                                                                                                                                                                   •S
                                                                                                                                                                                     ee section at back of report                        the development of self- regulatory
                                                                                                                                                                                    for a list of Optus’ industry                         codes and policy positions on a range
                                                                                                                                                                                    association memberships and                           of topics related to our industry (e.g.
                                                                                                                                                                                    other initiatives we support                          NBN, spectrum, copyright, marketing,
                                                                                                                                                                                                                                          privacy, environment, health and
                                                                                                                                                                                                                                          safety, packaging and reporting
                                                                                                                                                                                                                                          frameworks)

                                                                                                                                      GOVERNMENT                                   • We
                                                                                                                                                                                      engage with all levels of                       • Participation in consultation papers                   As required
                                                                                                                                      AN REGULATORS                                  government across Australia

                                                                                                                                      SUPPLIERS                                    •C
                                                                                                                                                                                     orporate governance                                •W
                                                                                                                                                                                                                                           e have a supplier assessment that                     As required
                                                                                                                                                                                   •O
                                                                                                                                                                                     ccupational health and safety                       outlines governance and environmental
                                                                                                                                                                                   •E
                                                                                                                                                                                     nvironmental management                             issues.
                                                                                                                                                                                   •P
                                                                                                                                                                                     roduct stewardship                                 •O
                                                                                                                                                                                                                                           ver the coming year, a more complete
                                                                                                                                                                                     upplier management
                                                                                                                                                                                   •S                                                     supplier self-assessment that will be
                                                                                                                                                                                                                                          implemented.
                                                                                                                                                                                                                                         •A
                                                                                                                                                                                                                                           udits of suppliers as required in areas
                                                                                                                                                                                                                                          of Optus sustainability material issues

                                                                                                                                      . Optus is a wholly-owned subsidiary of Singtel. “Shareholders” here refers to the shareholders of the broader Singtel Group, which is listed on the SGX.
                                                                                                                                      1

14   ABOUTS US / LEARNING FROM LISTENING TO OUR STAKEHOLDERS                                                                                                                                                                                                ABOUTS US / LEARNING FROM LISTENING TO OUR STAKEHOLDERS      15
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
FOCUSING ON WHAT                                                                                                                            OPTUS’ APPROACH TO
     MATTERS MOST                                                                                                                            IDENTIFYING MATERIAL ISSUES
     OUR BUSINESS MODEL AND STRATEGY              sustained profitable growth, we won’t
     FOCUSSES ON THE AREAS THAT PRESENT           compromise our integrity, values and
     OPPORTUNITIES FOR US TO DIFFERENTIATE        reputation by risking brand damage,
                                                  service delivery standards, severe
     OURSELVES AND CREATE SUSTAINABLE AND                                                                                         Establish universe of potential environmental, social and economic

                                                                                             MATERIALITY ASSESSMENT PROCESS
                                                  network disruption or regulatory
     LONG TERM GROWTH FOR OUR BUSINESS.           non-compliance.                                                                               issues using the GRI G4 issue indicators
     Underpinning this however, is the            As a signatory of the United Nations
     need to manage and mitigate risks            Global Compact, we’ll also uphold the
     to reduce the uncertainty associated         ten principles covering human rights,
     with the execution of our business           labour practices, environment and
     strategies, and allow us to maximise         anti-corruption.                                                             Consider both “internal business perspective” and “external stakeholder
     the opportunities that may arise.                                                                                                perspective” from a combination of information sources
                                                  This year we undertook a                                                                        (outlined on the following pages)
     Risks take on many forms and can             comprehensive materiality assessment
     have material adverse impacts on             to identify issues and other relevant
     our ability to achieve our stated            topics considered important for
     objectives by potentially impacting          reflecting our economic, environmental
     our reputation, operations, human            and social impacts and/or influencing
     resources and financial performance.
                                                                                                                                                     Develop short-list of 25 issues
                                                  the views of our key stakeholders.
                                                                                                                                                      based on results of analysis
     Whilst we’re committed to delivering         We prioritised our material issues using
     value to our shareholders through            the process depicted in this diagram.

                                                                                                                              EXTERNAL STAKEHOLDER PERSPECTIVE              INTERNAL BUSINESS PERSPECTIVE
                                                                                                                                                                               Management workshop
                                                                                                                                   Rate significance of
                                                                                                                                                                               to rate the significance
                                                                                                                                 top 25 issues based on
                                                                                                                                                                                 of 25 issues based
                                                                                                                                    results of analysis
                                                                                                                                                                                   on the business

                                                                                                                                    Confirm the top material issues for inclusion in sustainability report
                                                                                                                                    across the Group, Singapore and Australia based on combination of
                                                                                                                                                       external and internal ratings

                                                                                                                                      Material issues mapped against the key business value chains,
                                                                                                                                                  for granular impact and risk assessment

16     ABOUT US / FOCUSING ON WHAT MATTERS MOST                                                                                                                                        ABOUT US / FOCUSING ON WHAT MATTERS MOST   17
BRIGHT IDEAS FOR A BRIGHT FUTURE - THE 2015 OPTUS SUSTAINABILITY REPORT
OUR MATERIAL ISSUES
We considered external stakeholder                   The workshop then confirmed the top
                                                                                                                                          OPTUS MATERIAL ISSUE                   GRI G4 MATERIAL ASPECTS & BOUNDARY          BOUNDARY                       REPORT CHAPTER
perspectives and internal business                   material issues for us for inclusion in
perspectives to develop a long list of               this report. A similar material issues
relevant topics, established and applied             identification process was carried out                                               CUSTOMER SATISFACTION                  Product & service labelling – PR5          External (customers)            Marketplace & Customer
a rating criteria to determine the top 25            for Singtel and the Singtel Group.
issues most important to both viewpoints                                                                                                                                                                                    Internal & External
                                                     The diagram below shows how we                                                       PRODUCT QUALITY /
and then conducted a workshop                                                                                                                                                    Compliance – PR9                           (customers, Government          Marketplace & Customer
                                                     priorities our material issues.                                                      REGULATORY COMPLIANCE
to shortlist the top material issues                                                                                                                                                                                        and regulators)
considered to be most significant to us.
                                                                                                                                                                                                                            External (customers, local
                                                                                                                                          INNOVATION                             Indirect economic Impacts - EC7                                            Marketplace & Customer
                                                                                                                                                                                                                            communities)

                                                                                                                                                                                                                            Internal & External
                                                                                                                                          CONSUMER DATA AND PRIVACY              Customer Privacy– PR8                                                      Marketplace & Customer
                                                                                                                                                                                                                            (customers, regulators)
MATERIALITY ISSUES MATRIX FOR OPTUS
                                                                                                                                                                                                                            External (customer, local
IMPACT TO THE OPTUS BUSINESS (OPTUS INTERNAL PERSPECTIVE) VS. INFLUENCE ON EXTERNAL STAKEHOLDERS                                          CUSTOMER HEALTH & SAFETY               Customer Health and Safety – PR2                                           Marketplace & Customer
                                                                                                                                                                                                                            communities, regulators)
(EXTERNAL PERSPECTIVE)
                                                                                                                                                                                                                            External (customer,
                                                                                                                                          FAIR MARKETING COMMUNICATIONS          Marketing Communications – PR7                                             Marketplace & Customer
                                                                                                                                                                                                                            regulators)
                                                                                                 TOP MATERIAL ISSUES:
                                                                                                 • Customer satisfaction                  SUPPLY CHAIN MANAGEMENT                Supplier human rights assessment) – HR10   External (suppliers             Marketplace & Customer
                                                                                                 • Product quality                                                                                                          External (local communities,
                                                                                                 • Innovation                             CYBER WELLNESS AND ONLINE SAFETY       Local Communities– SO2                                                  Community
                                                                                                                                                                                                                            charity partners)
                                                                                                 • Customer data privacy and protection
                                                                                                                                                                                 Economic performance– EC1                  Internal & External (local
                                                                                                 • Customer health and safety             INCLUSION OF VULNERABLE GROUPS         Indirect economic impacts – EC8            communities, charity            Community
                                                                                                 • Fair marketing communications                                                                                            partners)
                                                                                                 • Regulatory compliance
                                                                                                                                                                                 Employment – LA1
                                                                                                 • Supply chain management                TALENT ATTRACTION AND RETENTION                                                   Internal                        People
                                                                                                                                                                                 Training & Education – LA9
                                                                                                 • Cyber wellness and online safety
                                                                                                 • Inclusion of vulnerable groups
                                                                                                                                          EMPLOYEE HEALTH & SAFETY               Occupational Health & Safety– LA6          Internal                        People
                                                                                                 • Talent attraction and retention
                                                                                                 • Employee health and safety                                                                                               Internal & External (local
                                                                                                 • Climate change and energy             CLIMATE CHANGE AND ENERGY MANAGEMENT
                                                                                                                                                                                 Energy– EN3
                                                                                                                                                                                                                            communities, charity            Environment
                                                                                                  management                                                                     Greenhouse gas emissions – EN15 & 16
                                                                                                                                                                                                                            partners)

                                                                                                                                          *A
                                                                                                                                            ll the external impacts are deemed to be within Australia except for supply chain and the environment, where the impacts are global.
                                Influence on internal stakeholders (Internal perspective)                                                  As per the Sustainable Supply Chain section , we are currently undertaking a review of our Vendor Code of Conduct and an environmental
                                                                                                                                           lifecycle analysis to determine where our supply chain and environmental impacts are.

 The top material issues provided the                 We then mapped the top material
 starting point for informing the content             issues against their corresponding GRI
 of this year’s report. We then validated             material aspects, which can be shown
 these areas by cross checking them with              in the table on the next page
 the significant issues that arose across
                                                      For each material aspect, we also show
 the business and in the media during
                                                      their boundaries, i.e. where the impact
 the reporting period. This was to make
                                                      of the aspect lies (internal or external
 sure our report provided a balanced
                                                      to Optus). Finally, the table also
 representation of our sustainability
                                                      references the chapters of this report
 performance for the year.
                                                      where the discussion of the material
                                                      issues can be found.

18   ABOUT US / MATERIALITY ISSUES                                                                                                                                                                                                                    ABOUT US / MATERIALITY ISSUES   19
MARKETPLACE &
     CUSTOMERS

                                98.5%                                       64.2%
                         of Australian population covered by our
                          3G network and 86% of the Australian       Number of 4G mobile           Further widened sustainability
                           Population covered by our superfast     subscribers increased by        considerations in our updated
                                     4G Plus network.                 64.2% to a total of             Vendor Code of Conduct
                                                                    3.52 million customers

                          OPTUS 10
                                   New satellite
                                                                   NPS +4
                                                                   We remain the only Tier 1
                         LAUNCHED                                  Telco in positive NPS (+4)
                         connecting regional customers
                               and remote sites

20   SECTION / ARTICLE                                                                          MARKETPLACE & CUSTOMERS / HIGHLIGHTS   21
ALL ABOUT CUSTOMER EXPERIENCE
 WE WANT TO PROVIDE SIMPLE PRODUCTS,                 IMPROVING CUSTOMERS’ LIVES                   We won two other awards-Best
 BRILLIANT SERVICE AND A GREAT NETWORK               THROUGH IMAGINATION AND                      Interior Design-Retail and Best
 FOR OUR CUSTOMERS. THIS IS UNDERPINNED                                                           Branded Experience-Marketing at the
                                                     INNOVATION
 BY A COMMITMENT TO INNOVATION, PRODUCT                                                           Sydney Design Awards.
                                                     Our capacity to improve the lives of
 QUALITY AND CUSTOMER SATISFACTION.
                                                     our customers through imagination             aking your watch and smartphone
                                                                                                 •M
 We’re making significant changes to put             and innovation is what will set us           even smarter by launching Cash
 customers at the heart of everything we             apart from competitors. This year,           by Optus, a mobile payment app
 do. We continue to invest in upgrading,             we’ve offered new products, plans and        that replaces cash purchases below
 modernising and equipping our systems               competitive prices to keep providing         $100. This is a first for Australian
 with new capabilities to ensure we                  value to customers and to attract new        telcos and showcases the ingenuity
 continue to deliver innovative and                  ones. Some of the great things we’ve         and innovation that we’ve known
 relevant services to our customers.                 been up to include:                          for. Cash by Optus uses Near Field
                                                     • Introducing My Plan Plus which gives      Communication (NFC) and Visa
 We’ve made good improvements.                                                                    payWave technology that allows
                                                        customers the power to share their
                                                        data across multiple devices. We          our customers to pay for those small
 Our Net Promoter Score (NPS) results
                                                        launched our key switch offer, timed      everyday purchases like lunch, petrol
 indicate that we’re the only tier one
                                                        with the launch of the new iPhone,        and groceries using a smartphone
 telco with a positive NPS. This is a
                                                        to help people get out of their mobile    instead of a plastic debit or credit card.
 great result but we think can do more to
                                                        contract early to upgrade to a new        Cash by Optus can also be used for
 achieve our ambition of being Australia’s
                                                        phone.                                    online purchases up to $250.00 in
 most loved and recommended service
                                                                                                  a single click up to.
 brand.                                               We also offered to pay for customers
                                                       who terminate contracts with our          • We’ve struck a deal with Netflix
 Competitive pressure in mobile                        competitors to switch to us. The              so that for a period of time all our
 continues to increase, so it’s critical               percentage of postpaid customers              fixedhome broadband customers can
 we continue to improve our services,                  on a tiered data plan has increased           enjoy watching Netflix without having
 innovate with our products and plans                  over the past 12 months, reflecting           to worry that their Netflix viewing will
 and improve network performance                       the success of our innovative My Plan         push them over their data limit.
 to differentiate ourselves from our                   Plus postpaid product.                        Also for the first 3 months following
 competitors.                                                                                        the launch of Netflix in Australia,
                                                     •W
                                                       e transformed our Yes Optus shops            we’ve been giving away up to 6 months                               Regional Store Ballarat
                                                      with a new ‘Generation 6’ design.              subscriptions to Netflix for new and
                                                      It reflects the flow of our customers’         re-contracting customers on certain
                                                      journey giving them an easy and                broadband, postpaid mobile and
                                                      intuitive path through the store.              prepaid mobile PLANS. We’re the first
                                                      We also boosted the number of                  Telco in Australia to do this!
                                                      people in store to welcome customers
                                                      and offer each one a personalised
                                                      service to help make their purchasing
                                                      decisions easier.
                                                       ur alluring new store designs scored
                                                      O
                                                      us a Gold Award at the recent POPAI
                                                      awards for retail marketing. POPAI
                                                      is the global industry association for
                                                      shopper marketing and marketing
                                                      retail recognising creativity,
                                                      innovation and inspiration.

22   MARKETPLACE & CUSTOMERS / CUSTOMER EXPERIENCE                                                                                              MARKETPLACE & CUSTOMERS / CUSTOMER EXPERIENCE      23
BACKED BY BRILLIANT SERVICE
To make it easier online and to provide a
                                                 It doesn’t stop there. Our ‘Bringing back
                                                 the love’ initiative saw our promoter
                                                                                             We look to less obvious places to
                                                                                             ensure that we’re providing a superior     DATA HUNGRY HABITS
customer service experience that’s better        response team proactively call back         customer experience across the board.
                                                 customers who had disappointing             For example, the passing of a loved one    WE KNOW AUSSIES LOVE DATA – WE’RE DOWNLOADING MORE, USING OUR APPS
than ever – in store, online or over the
phone – we continued to work hard and            experiences with us to address their        can be a difficult time so we’ve made      MORE, AND WATCHING MORE VIDEO, ON THE GO.
solve customer’s problems the first time         concerns and encourage their ongoing        changes to help close or transfer their
                                                 loyalty.                                    Optus accounts possible through the        In the 2014 financial year, Australians each used around 2GB of data per
they contact us.
                                                                                             creation of a specialist Bereavement       month. By 2019, we expect Australians will each use around 10GB per
We’ve done a lot of work around                  We’ve done a lot of work to improve our     Care team.                                 month. That’s a five-fold increase in five years. Today 38% of Australian
identifying customer frustrations by             online help and support. We provided                                                   households have four or more internet-connected devices. That is
                                                                                             This team have made major
analysing call volumes by call type,             new functionality into Optus My                                                        predicted to double by 2020 with Australians connecting six or more
                                                 Account that empowers our customers         improvements to the way we handle
listening to call recordings, and analysing                                                                                             devices to the internet.
                                                 to resolve issues by themselves. We’ve      deceased estates; our communications,
customer feedback. The result was a
                                                 improved My Optus Community by              timeframe and processes. Instead of        With more people using smartphones, customers have an increased
program of diverse initiatives that had
                                                 launching a fancy new mobile enabled        taking over three months to resolve a      appetite for data. And when data usage goes up, it exposes people
the common goal of reducing customer
                                                 version allowing customers to ask           case, we’re now doing it in under          to unexpectedly high bills or ‘bill shock’. This can lead to negative
effort. This program positively impacted
                                                                                             5 days in most cases, with all marketing
more than 3.6 million customers and              questions and seeking out answers                                                      experiences and financial hardship for our customers.
                                                 about our range of products and             materials and bill communication
resulted in an average of 45% less calls
                                                 services whether they’re at home or         suspended, any early termination           We’ve done a lot of work to help prevent bill shock – hardship services,
from customers who no longer need
                                                 on the go.                                  or cancellation fees waivered and the      customers alerts, roaming packs – which have significantly reduced the
to wait in a phone queue to speak to
                                                                                             final balance zeroed out.                  number of customers experiencing an unusually high spend.
a Customer Service Agent to process              We also launched the free MyOptus
their request. This also translates into         App which provides an easy way for
increased profitability for us in terms                                                                                                 We’ll continue to keep working to explain how much data customers
                                                 customers to manage their prepaid                                                      use so they can get the most out of their plans and also look for new
of improved efficiency and ability to            mobile or prepaid mobile broadband
redistribute work effort to other areas                                                                                                 opportunities to provide a differentiated digital experience for our
                                                 account on the go. They can keep track
within Optus.                                                                                                                           customers and communities.
                                                 of their calls, text and data usage;
                                                 recharge their credit and lots more
Our hard work to improve the customer
                                                 anytime, anywhere.
journey has won us a national award
the 2014 Customer Service Institute                                                               WE LOOK TO LESS OBVIOUS
of Australia (CSIA) National Customer                                                           PLACES TO ENSURE THAT WE’RE
Service Project of the Year.                                                                       PROVIDING A SUPERIOR
                                                                                                   CUSTOMER EXPERIENCE
                                                                                                     ACROSS THE BOARD.
                                                                                                                                        JOINING FORCES WITH
                                                                                                                                        WESTFIELD TO MEET GROWING
                                                                                                                                        SHOPPER DEMANDS FOR DATA.
                                                                                                                                        With over 500 million visits to Westfield shopping centres in 2014 and
                                                                                                                                        shoppers increasingly using their smartphones to inform their shopping
                                                                                                                                        trip and connect socially, the demand for data is growing rapidly.

                                                                                                                                        We recently joined forces with Westfield to offer shoppers a new level of
                                                                                                                                        digital connectivity with the rollout of a managed WiFi solution to over 21
                                                                                                                                        Westfield shopping centres. The service provides shoppers with up to 1GB
                                                                                                                                        of data free for a 3 hour period each day and will be accessible across the
                                                                                                                                        entire common mall area.

                                                                                                                                        “Working with such a reputable technology provider as Optus will provide
                                                                                                                                        benefits for our shoppers and our business…This service will strengthen
                                                                                                                                        the appeal of our assets with our local communities” Peter Allen, Scentre
                                                                                                                                        Group CEO

                                                                                                                                        “We’re two well-respected Australian brands working together to deliver innovative
                                                                                                                                        technology and customer experience initiatives – it’s very exciting!” - John Paitaridis,
                                                                                                                                        Managing Director, Optus Business

24   MARKETPLACE & CUSTOMERS / CUSTOMER EXPERIENCE                                                                                                                                                                            MARKETPLACE & CUSTOMERS / CUSTOMER EXPERIENCE   25
UNDERPINNED BY A GREAT NETWORK                  We’ll keep investing to expand our           “Optus has been a vocal advocate for fixed         YES TO BETTER RESULTS
                                                 superfast 4G Plus network to more            line competition for many years. The NBN           Every quarter we ask consumers and our      4G across Australia. At the end of Q3,
 During the FY15 year, we invested $1.4
                                                 Aussies in more places, to support           offers the potential to provide more choice and    people how likely they are to recommend     complaints to the TIO were the lowest
 billion in our networks.
                                                 our strategy to deliver a great mobile       competition for all Australians and puts us a      us to family and friends.                   out of all the Teir 1 telcos.
 We made a significant investment in the         network and high definition television       step closer to creating a level playing field in                                               However, in Q4, there has been a spike
                                                                                                                                                 After our highest NPS score of +6 in Q2,
 mobile network this year to upgrade sites       to customers when they want, on the          Australia’s retail broadband market. Anything                                                  in complaints, mostly due to customers
                                                                                                                                                 we ended the financial year at +4, the
 with new 4G 700MHz spectrum - which             device they want.                            that speeds up the rollout of the NBN and                                                      taking advantage of the faster 4G
                                                                                                                                                 only Tier 1 telco with a positive score.
 was officially released on 1 January                                                         increases the size of the contestable national                                                 network and downloading greater
                                                 We launched the Optus 10 Satellite.                                                             In the first three quarters, we saw
 2015. A key benefit of 700MHz is that                                                        broadband market is good for innovation and                                                    content which has led to customers
                                                 Australian customers in rural and                                                               a dramatic decrease in complaints
 it provides improved indoor coverage,                                                        competition” - Allen Lew, CEO                                                                  using excess data. We are, however,
                                                 remote areas will be the first to benefit.                                                      to the Telecommunication Industry
 which means more 4G whether at home                                                                                                                                                         working hard to address “bill shock”
                                                 Optus 10 is now providing backhaul           Competition in technology matters                  Ombudsman (TIO), largely due My Plan
 or in the office. The 700MHz spectrum                                                                                                                                                       through greater customer alerts
                                                 and connection services for regional         because it drives efficiency and                   Plus significantly reducing Excess Data
 also heralded the expansion of our 4G                                                                                                                                                       (see previous feature on ‘Data Hungry
                                                 and remote sites across our mobile           innovation. It drives lower prices,                complaints. We also saw a significant
 network into Regional Australia, bringing                                                                                                                                                   Habits’).
                                                 network.                                     transparency and choice, but also                  reduction in coverage complaints due to
 Optus 4G to hundreds of regional and
 holiday towns for the first time. To mark                                                    upgraded and new technologies and                  rollout of 4G and the next gen of version
                                                 This year we reached an agreement
 the step change in 4G coverage and                                                           new services.
                                                 with nbn™ in December on the
 quality for customers, we evolved our           migration of our HFC customers to the        What’s vital as we reinvent our
 ‘4G Plus’ brand to encompass our entire         NBN. This is a significant milestone –       economy over the next decade is how
 4G network.                                     allowing us to deliver greater choice        we use disruptive technologies like
                                                 and innovation to more consumers by          analytics and cloud computing. High-
 Customers continue to upgrade to the
                                                 opening up the broadband market in           speed 4G mobile networks and the NBN
 latest 4G-compatible devices, like the
                                                 parts of Australia where we haven’t had      will accelerate disruption, but they will
 iPhone 6 and Samsung Galaxy S6, to
                                                 either ADSL or cable network before.         also offer new opportunities – enabling
 make the most of our 4G Plus network
 wherever it expands. As at end of April                                                      Australia to finally overcome the
                                                 This agreement gives us capital to
 2015, our 4G Plus network covers 86%                                                         tyranny of distance.
                                                 invest in new technology which is
 of the Australian population. 4G is live        critical as we embark on our strategy        These opportunities will only come if
 on 3,383 mobile sites, of which 2,107           of delivering disruptive products and        we have highly efficient, intelligent and
 have been upgraded to the 700 MHz               services that will excite our customers      low-cost telecommunications services.
 spectrum. We’ll keep investing to expand        and allows us to differentiate itself
 our superfast 4G Plus network to more           from competitors.                            We say Yes to competition and Yes to
 Aussies in more places, to support                                                           an Australia that stays at the forefront
 our strategy to deliver a great mobile                                                       of Communications technology.
 network and high definition television to
 customers when they want, on the device
 they want.”

                                                                                                                                                   Optus hosts the World
                                                                                                                                                   Mobile Congress

26   MARKETPLACE & CUSTOMERS / CUSTOMER EXPERIENCE                                                                                                                                                                               MARKETPLACE & CUSTOMERS / CUSTOMER EXPERIENCE   27
RESPONSIBLE PRODUCTS & SERVICES
 WE’RE PROVIDING OUR CUSTOMERS WITH RESPONSIBLE
 PRODUCTS AND SERVICES WITH A FOCUS ON SAFETY,
 PRIVACY AND FAIR MARKETING PRACTICES.                           ELECTROMAGNETIC
 We’re in the business of enhancing the lives of
 our customers and the community through our
                                                                 ENERGY (EME)
 technology and products. The innovation seen over               A NUMBER OF HEALTH CONCERNS HAVE BEEN RAISED
 recent years, particularly the internet, has given us           GLOBALLY ON POTENTIAL EXPOSURE TO ELECTROMAGNETIC
 access to information, culture, communication                   ENERGY (EME) EMISSIONS THROUGH USING MOBILES OR
 and entertainment impossible to imagine just
                                                                 BEING EXPOSED TO MOBILE NETWORK INFRASTRUCTURE
 20 years ago.
                                                                 SUCH AS BASE STATIONS.
 But despite the opportunities of a connected and
 digital world (e.g. social media, online shopping,              While there is no substantiated evidence of public
 banking) there are a few downsides – the visual                 health risks from exposure to the levels of EME
 and perceived health impacts of our infrastructure              typically emitted from mobile phones, perceived
 and mobile towers which are in the back yards of                health risks can be a concern for our customers, the
 communities all over Australia and the rise of digital          community and regulators.
 security, privacy and data protection issues.                   We regularly assess the health and safety impacts of
                                                                 our products and services.
 We continue to adapt and evolve our business and
 processes to keep on top of these issues. We take               We design and deploy our network to comply with the
 our responsibility seriously and know that to be a              relevant Federal Government mandated Standards
 sustainable company we need to earn the trust of                for exposure to EME. These Standards are formulated
 our customers, people and communities.                          and regularly reviewed by the Australian Radiation
                                                                 Protection and Nuclear Safety Agency (ARPANSA).
 YES TO SAFE AND RELIABLE NETWORKS                               ARPANSA is part of the Commonwealth Department
                                                                 of Health. ARPANSA’s Standards are based upon
 We’re all about giving our customers a great
                                                                 those recommended by the International Commission
 network experience. That’s why we’re expanding
                                                                 on Non-Ionizing Radiation Protection (ICNRP), which
 our coverage and making our network more reliable.
                                                                 is a related agency of the World Health Organisation
 That includes doing everything from building
                                                                 (WHO).
 new towers to installing the latest and greatest
 technology - and adding extra capacity so our                   The ICNRP Standards are adopted by many countries
 network can handle more people using it at the                  around the world and are considered best practice.
 same time.                                                      We conduct audits of base stations and undertake
                                                                 predictive EME modelling and testing to ensure         mechanisms to connect to the base station. Under the
 While Australian’s want to enjoy superfast mobile               compliance at our sites with Australian Standards.     Federal Legislation in which we operate, this work is
 internet in more metropolitan, regional and holiday             All of our sites have EME reports available to the                                                                 “OUR SERVICES ARE CRITICAL
                                                                                                                        largely considered ‘low impact’ and generally doesn’t
 areas, they don’t always support the infrastructure             public at www.rfnsa.com.au                                                                                          IN DISASTER RESPONSE, AND
                                                                                                                        require formal planning approvals.
 being in their neighbourhood. Communities can
                                                                 We continue to monitor research findings on                                                                          WE DELIVER THEM ACROSS
 be concerned about visual impact, property values                                                                      We have a dedicated team which has worked
 and perceived adverse health and safety impacts of              electromagnetic energy health risks and their                                                                     INFRASTRUCTURE THAT MUST BE
                                                                                                                        successfully with hundreds of communities around
 electromagnetic energy (EME).                                   implications on relevant standards and regulations     Australia to inform them of our upgrade works and
                                                                                                                                                                                   HIGHLY RESILIENT AGAINST THE
                                                                 in Australia and the rest of the world.                ensure they’re happy with what we’re doing. We also        IMPACT OF NATURAL DISASTERS”
 Most of our activity over the last three years
                                                                                                                        have interactive coverage maps on our website so                                               - PAUL O’SULLIVAN
 has focussed on upgrading existing sites with
                                                                                                                        that both customers and communities can check their                                                    CHAIRMAN
 equipment such as antennas, electronics or
                                                                                                                        location for planned upgrades, maintenance and live
                                                                                                                        outages.

28   MARKETPLACE & CUSTOMERS / RESPONSIBLE PRODUCTS & SERVICES                                                                                                                  MARKETPLACE & CUSTOMERS / RESPONSIBLE PRODUCTS & SERVICES   29
To minimise disruptions for our customers, we schedule            Our approach goes beyond customer data protection
 upgrade work in stages. Customers are notified prior to           and is designed to ensure continued engagement
 any network improvements through text message and                 to encourage customers to deepen their trust in us.
 community service announcements in the local paper.               We know that privacy is important to our customers
                                                                   and we strive to be open and transparent in how we
 We experienced minor service disruptions to our                   serve them.
 mobile sites in South Australia, Western Australia and
 Victoria in early 2015 due to bushfires and in parts of           Optus has in place security mechanisms such as
 Queensland due to power failures associated with the              firewalls and encryption algorithms designed to
 impacts of Cyclone Ita in April 2014 and Cyclone Marcia           minimise the risk of privacy breaches. We also
 in February 2015.                                                 implement and test antivirus or intrusion prevention
                                                                   systems, based on established security standards.
 On all occasions, our network teams worked to make
 sure our customers could be connected to their loved              We also have established an escalation process for
 ones and emergency services.                                      major incidents, which includes security breaches,
                                                                   to ensure timely response, internally and where
 CUSTOMER & DATA PRIVACY                                           necessary externally, to minimise impact.
 We strive to conduct our business in full compliance              Optus reported 3 data privacy incidents in 2014 to
 with local laws and regulations, and hence                        the Office of the Australian Information Commissioner
 implemented additional measures to protect our                    (OAIC), including what it did to address both the
 customers’ personal information. These include:                   specific incidents as well as improve its overall
                                                                   processes. On 26 March 2015, Optus committed
 • S afeguards to prevent security breaches in our                to continuous improvement through offering an
    networks and database systems                                  enforceable undertaking to the OAIC.
 • Limits on access to information in our systems and
    the systems of our business partners and vendors
 • Strict verification processes to guard against
    unauthorised access to information

                                                                                                                           FAIR MARKETING
                                                                                                                           We advertise and market our products and             We make every reasonable endeavour to ensure that
                                                                                                                           services widely across Australia so it’s important   our advertising and promotional materials comply
                                                                                                                           that the information represented is accurately       with Australian legislation. Our employees undertake
                                                                                                                           stated otherwise it risks misleading customers and   online compliance training annually. Employees that
                                                                                                                           breaching fair marketing legislation.                deal directly with our competitors have additional
                                                                                                                                                                                training on anti-competitive conduct.

30   MARKETPLACE & CUSTOMERS / RESPONSIBLE PRODUCTS AND SERVICES                                                                                                                     MARKETPLACE & CUSTOMERS / RESPONSIBLE PRODUCTS AND SERVICES   31
high tier vendors that already have
                                                                                                                                      established processes. The key for             SUSTAINABLE SUPPLY CHAIN MANAGEMENT
                                                                                                                                      Singtel is to identify where the material        Framework, Decision Criteria and Filters
                                                                                                                                      risks are in the supply chain and to
                                                                                                                                      deep dive through collaboration with
                                                                                                                                      our suppliers to ensure that we work on
                                                                                                                                      minimising material risk.
                                                                                                                                                                                      TOP MATERIALITY       TOP VENDORS                  HIGH RISK
                                                                                                                                      In the last half year we have revisited       ISSUES RELEVANT TO      BY SPEND AND                GEOGRAPHIES
                                                                                                                                      our supply chain risks through different         SUPPLY CHAIN          CATEGORIES
                                                                                                                                      filters such as the type of vendors and
                                                                                                                                      spend categories, country risk profiles
                                                                                                                                      as well as materiality risks such as the
                                                                                                                                      environment, labour, data protection and
                                                                                                                                      so on.                                                             HIGHER REGULATORY
                                                                                                                                                                                                            COMPLIANCE
                                                                                                                                      As such there are a number of potential
                                                                                                                                      environment, social and community
                                                                                                                                      issues in our supply chain, particularly
                                                                                                                                      in our two most significant areas:
                                                                                                                                      offshoring and ICT. We’ve chosen to
                                                                                                                                      focus our initial supply chain reviews
                                                                                                                                      in our offshore outsourced centres as
                                                                                                                                      these are an extension of our work force,
                                                                                                                                      and are also a major part of our vendor
                                                                                                                                                                                                         INITIAL PRIORITY
                                                                                                                                      spend and business dependency. While                                    FOCUS
                                                                                                                                      many of the global handset, IT and
                                                                                                                                      network equipment vendors like Apple,
                                                                                                                                      Samsung, Cisco and Ericsson comprise
                                                                                                                                      material spend and dependency in
                                                                                                                                      our supply chain, these are also global
                                                                                                                                      companies with their own established
                                                                                                                                      supply chain practices and reputation to
                                                                                                                                      protect.
                                                                                                                                                                                      SUPPLIER CODE          NETWORK                      OFFSHORE
                                                                                                                                      In addition, the telco industry is                                   DELIVERY AND              OUTSOURCED VENDORS
                                                                                                                                      dominated by a handful of key suppliers         OF CONDUCT &
                                                                                                                                                                                     SELF-ASSESMENT      FIELD OPERATIONS              • IT development
                                                                                                                                      for equipment and services so if they                                                               and support
                                                                                                                                      fail to deliver then they can significantly                            VENDORS
                                                                                                                                                                                                                                   • Contact Centres & BPO
                                                                                                                                      affect our business and our promise to
                                                                                                                                      our customers.

     SUSTAINABLE SUPPLY CHAIN                                                                                                         SUSTAINABLE SUPPLY CHAIN
                                                                                                                                                                                      Updated code
                                                                                                                                      MANAGEMENT (SSCM)                                                   Review completed            Commenced scoping
     WE’RE ALWAYS LOOKING FOR SUPPLIERS           the Group’s network, the supply of        We also worked together on                                                              approved by GCPO        in Singtel and            with Optus Customer
                                                                                                                                      The potential for business and                 for implemented
     WHO SHARE OUR APPROACH TO                    handsets and equipment, systems           articulating a refreshed management                                                                           Optus in FY2015                 Ops and GIT
                                                                                                                                      sustainability related issues to arise             in FY2016
     RESPONSIBLE BUSINESS PRACTICES.              and applications development and          approach. While we’ve recently
                                                                                                                                      in our supply chain was identified as
     WE PRIORITISE SUPPLIERS WHO MET,             services, content provision and           done a comprehensive stakeholder
                                                                                                                                      a material issue for us in our FY15
     OR ARE WORKING TO MEET, THE ‘OPTUS           customer acquisition.                     engagement and materiality review,
                                                                                                                                      materiality review.
                                                                                            we’re still early in the journey of an
     VENDOR CODE OF CONDUCT’ AND OUR              In 2014, the Singtel and Optus            extensive supply chain management for     As such, we’ve initiated an internal work
     FUTURE FOCUS IS ON ASSESSMENT AND            procurement teams began working           sustainability risk issues.               group to review our current procurement
     GOVERNANCE.                                  towards a one procurement
                                                                                                                                      policies and practices to identify areas
                                                  framework. Through this journey           Our management approach draws from
     With Singtel we’ve relied on and will                                                                                            where we need to further enhance and
                                                  sustainable supply chain management       the high risk areas highlighted in our
     continue to rely on around 6000 third                                                                                            embed sustainability considerations.
                                                  was identified as a key focus and built   materiality review, spend, geographies,
     party vendors for various purposes,                                                                                              This work is being done for both Singtel
                                                  into the group strategy.                  compliance with focus outside of the
     for example the construction of                                                                                                  and Optus.

32   MARKETPLACE & CUSTOMERS / SUSTAINABLE SUPPLY CHAIN                                                                                                                                                  MARKETPLACE & CUSTOMERS / SUSTAINABLE SUPPLY CHAIN   33
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