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
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SECTION / ARTICLE 1
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
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
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
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
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
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
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
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
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 19MARKETPLACE &
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 21ALL 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 23BACKED 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 25UNDERPINNED 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 27RESPONSIBLE 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 29To 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 31high 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 33You can also read
