PURPOSE DRIVEN. 2018/2019 Corporate Responsibility Summary
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FUTURE FOCUSED. PURPOSE DRIVEN. 2018/2019 Corporate Responsibility Summary INSIDE Letter from CEO Our Approach to CSR Across the Progress Toward Key Performance Randall Stephenson Global ESG Trends Business 2020/2025 Goals Indicators / 04 / 06 / 17 / 22 / 32
2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS VALUES LIVE TRUE. Do the right thing, no compromise. THINK BIG. Innovate and get there first. PURSUE EXCELLENCE. In everything, every time. INSPIRE IMAGINATION. Give people what they don’t expect. BE THERE. When customers & colleagues need you most. STAND FOR EQUALITY. Speak with your actions. EMBRACE FREEDOM. Press, speech, beliefs. MAKE A DIFFERENCE. Impact your world.
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AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS
Table of Contents
LEADERSHIP GLOBAL ESG TRENDS CSR ACROSS THE BUSINESS
Letter from the Chief
Executive Officer
/ 04
Grassroots Commitment to
community impact renewables
/ 18 / 20
Our diversity Carbon reduction
/ 19 / 21
PROGRESS TOWARD GOALS
We are making progress on our 10-year
roadmap of goals and targets that
serve as milestones for 2020 and 2025.
/ 22
Letter from the Chief Managing human capital Protecting customer privacy Representing diverse voices
Sustainability Officer / 07 / 10 / 13
KEY PERFORMANCE INDICATORS
/ 05
Addressing climate change Championing human rights
To assess our progress, we measure
/ 08 / 11
GOVERNANCE annual performance in areas most
Using technology for social/ Ensuring the responsible use important to our stakeholders and
We address environmental, environmental good of products and services our business.
social and governance issues / 09 / 12 / 32
at every level of our company.
/ 14 Following the acquisition of WarnerMedia in June 2018 and launch of Xandr in September 2018, we continue to integrate operationally and through our reporting. For this reason, comprehensive data for these affiliates is not
included in this report, except where noted. Our 2019/2020 Corporate Responsibility Summary will reflect data from the first fiscal year as an integrated company, in accordance with Global Reporting Initiative guidelines.
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2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE
AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS
From our CEO
to our Stakeholders
of clean wind energy for the American events from varying points of view and to
Our mission is clear: Inspire human progress through the power grid. And we’re working to help equip people to make informed decisions.
divert waste from landfills with a goal of And WarnerMedia’s pioneering Diversity
power of communication and entertainment. We embrace achieving zero waste at 100 AT&T facilities & Inclusion Policy, the first in the media
those words and the values behind them in all that we do. Our – including our corporate headquarters – industry, guides content creation that is
employees are at the heart of our efforts – extending their by the end of 2020.1 inclusive and purposeful.
impact beyond the workplace and deep into our communities. It’s clear that technology is rapidly altering We strive to be a great place to work and
the way we live, learn and work. That’s a desired business partner. We celebrate
W
why we remain committed to preparing more than 50 years of AT&T’s Supplier
here many would say, “It’s not young people for the future through our Diversity Program, which connects
my job,” the people of AT&T say, AT&T Aspire and ESCUELA+ education minority-, women-, service-disabled
“How can I help?”. We’re working initiatives. And it’s why we’re helping veteran- and LGBTQ-owned businesses
in cities across the country to expand our own workforce continuously evolve with opportunities to provide products
economic opportunity, provide training their skills and capabilities to thrive in a and services to AT&T.
and help those in need through our AT&T changing work environment. We continue
BelievesSM initiative. We’re helping to Fundamentally, AT&T’s approach to
to stand for equality and a diverse,
tackle important issues, including corporate responsibility is based on the
inclusive and welcoming workplace. And
homelessness, violence, unemployment core belief that our long-term business
we expect this commitment, not only from
and access to education. And we’re success is tied to the strength and health
our own employees, but from our suppliers
RANDALL STEPHENSON supporting communities in the wake of of our communities and the world. Every
and business partners as well.
Chairman, Chief Executive natural disasters. You’ve seen that in our day, our employees are guided by that
Officer and President employees’ tireless efforts as they’ve As we’ve welcomed new businesses belief. Their pursuit of excellence and
assisted affected families and first into our company, we’re mindful of our spirit of service help us to constantly
responders to keep communities responsibilities as a content creator that adapt and innovate in ways that help us
connected and covered the stories of inspires and entertains. We embrace win in the marketplace – and lead positive
those in harm’s way. the freedom of our journalists to report change in our society.
We continue to develop solutions to help
create a better, more environmentally
sustainable world. We’re making
measurable progress on our goal to
enable carbon savings 10 times the
footprint of our operations by 2025. We’re
Where many would say, ‘It’s not
doing this by making our network more
my job,’ the people of AT&T say,
efficient and delivering services through
Smart Cities and Internet of Things ‘How can I help?’”
(IoT) programs that help our customers
reduce their carbon emissions. In 2018,
we became one of the largest corporate
purchasers of renewable energy in the U.S.
investing in up to 820 megawatts (MW) 1 AT&T utilizes the 90% threshold standard for “zero waste” as defined by the Zero Waste International Alliance,
http://zwia.org/standards/zw-business-principles/b/
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2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE
AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS
From our CSO
to our Stakeholders
Our commitment to Corporate Social In this year’s Corporate Responsibility
Every day, the world faces evolving environmental, economic Responsibility (CSR) is embedded into all Summary, we detail leading
levels of our company, including Board environmental, social and governance
and social challenges. At AT&T, we believe communications oversight and officer-level leadership. issues on the global horizon, and what
technology and entertainment can inspire people to imagine As you will see in the following pages, we’re doing to help ensure our company’s
innovative, transformative solutions, share ideas and generate our achievements are made possible resilience for tomorrow.
positive impacts. through a unified belief in our company
Stakeholder interest in this area of our
values, strong corporate governance,
business has never been stronger. We’ve
and a dedication to mutual goals and
enjoyed the opportunity to engage with
collaboration across the enterprise.
you, and I look forward to continuing
We’ve made meaningful progress conversations throughout the year as we
this year toward our CSR goals, as we work together to build a better tomorrow.
N
celebrated the 10th anniversary of
ow more than ever, people and our education-focused AT&T Aspire
investors are demanding more and ESCUELA+ initiatives and reached
from companies. We recognize approximately 20% of our 2025 target
that in addition to meeting our business to enable carbon savings 10 times the
objectives, we have a responsibility to footprint of our operations. We’ve made
develop strategies and programs that will
benefit society and help create a more
demonstrable progress across countless For a detailed look into all our
other CSR programs, and I am grateful to
sustainable world. Simply put, it’s about the people who worked together at every
work from the past year, visit
doing what’s right, getting involved and level across our business to make these our full CSR reporting library at
making a difference. achievements possible. about.att.com/csr/reporting
CHARLENE LAKE
As a global organization, we play a role in
Senior Vice President, preparing current and future employees
Corporate Social for the workforce of tomorrow, in
Responsibility and Chief mitigating the impact of climate change,
Sustainability Officer in empowering customers to use
technology responsibly, and in creating
products and services that enable social
good. And foundationally, we have a
responsibility to protect customer data,
ensure basic human rights are upheld,
accurately report the facts and represent
the world’s voice through diverse and
purposeful content. It’s about doing what’s right,
getting involved and making
a difference.”
06 2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS ESG TRENDS
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The Skills Gap
E
very company needs a future- curriculum to leadership skills, health and
proof workforce and a steady, wellness, and strategic alignment with
diverse talent pipeline. As company priorities. We address these
technology advancements including Whether someone is topics through programs such as Leading
automation and artificial intelligence a current employee with Distinction, an interactive learning
rapidly alter the workplace, employers or a student who may series where senior managers and special
must focus on “hard” employee skills such become part of AT&T’s guests share leadership principles to apply In 2018, out of approximately
as coding and data analytics. At the same future workforce, we’re on the job, and LwD 365, our continual
16 million total hours of
time, they can’t ignore the critical “soft” committed to helping learning series benefiting more than
skills technology can’t replace, including 70,000 weekly subscribers. training recorded, AT&T
people gain access
critical thinking, collaboration, leadership employees spent about
to the education and Around the world, we strive to incubate
and effective decision-making.
training they’ll need a skilled future workforce through
2 million hours dedicated to
In the business world, resolving these to succeed in the years initiatives that connect young people skills transformation.
challenges is known as “human capital to come.” with educational opportunities. For
management.” In short, at AT&T we
believe our success depends on our Dahna Hull, Senior
Vice President, Human example, AT&T works with non-profit,
employees’ success. As an integrated
Resources and Chief Year Up, to provide experience and
media and communications company,
support for those who might not
all our employees – whether customer Learning Officer –
otherwise have a chance to explore new
service representatives, field technicians, AT&T Communications
fields or develop job-ready skills. In Latin
managers or those in any other role –
America, our ESCUELA+ program uses
must have the skills they need to thrive.
satellite technology to help bridge the
We must also help cultivate the next
digital divide by deploying equipment,
generation of talent that will lead our
educational content and innovative
company in the future.
audio/visual teaching methodologies
We invest more than $200 million annually to transform classrooms and help align
in our award-winning internal training YEAR UP students for academic success.
organization, AT&T University, which offers INTERNSHIPS In the spirit of lifelong learning, our work will
required training and elective courses
Year Up guides participants never be done. We must continue finding
that give employees the opportunity to
through a year-long innovative ways to provide employees –
enhance skills needed in their current
program where they spend current and future – with the skills they
role or to prepare for the next chapter of
6 months in the classroom need to keep up in an economy increasingly
their careers. Development areas include
and 6 months interning driven by technological advances.
technical programs, such as cybersecurity
with a corporation, such as
and IP networking, and sales and customer
AT&T. We are committed to
service training for front-line organizations.
hosting 200 Year Up interns
We’ve also dedicated a portion of our
annually by 2022. Read more in our Community Engagement
and Our Workforce issue briefs at
about.att.com/csr/reporting
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Climate Change
E
ach year the World Economic Forum In addition, AT&T is adapting to the Climate change is one of the world’s most
pressing challenges, and we believe AT&T
CLIMATE CHANGE
solicits the perceptions of global already changing climate by continuing
can be part of the solution. Our climate ANALYSIS TOOL
business and thought leaders on to devote resources to the reliability and
the biggest risks in the year ahead. In 2018, continuity of our operations. Our Weather mitigation and adaptation efforts are AT&T’s new Climate Change Analysis
climate change dominated the Operations Center allows us to monitor, in just a few of the ways we are working to Tool helps us visualize climate change
conversation for the 3rd consecutive year. real time, potential nature-related threats. create a resilient, more environmentally risk on our infrastructure and make
Meanwhile, our Network Disaster Recovery sustainable world. smarter, climate-informed decisions.
We’re taking action to mitigate climate Instead of relying on 10-day weather
team conducts readiness drills year-round
change and achieved our goal to reduce forecasts and historic events, we can now
to keep our network and people ready to
Scope 1 greenhouse gas (GHG) emissions model climate-related phenomena like
respond at a moment’s notice.
20% from a 2008 baseline – 3 years ahead Read more in our Climate Change issue projected sea-level rise and the potential
of schedule – reaching 24.7% reductions We’ve also engaged the U.S. Department brief at about.att.com/csr/reporting impact on surrounding cables, cell sites
in 2018. We’re not stopping there: We are of Energy’s Argonne National Laboratory or data centers – decades into the
committed to developing new targets for help assessing the risks of climate future. These insights can help us better
and emissions reduction plans that will change on our business. This is the first plan for maintenance, construction and
continue to guide our progress. such project publicly announced in the disaster recovery efforts as we serve our
telecommunications industry and brings customers and communities.
ACHIEVED OUR GOAL TO REDUCE together insights from the laboratory’s
regional climate modeling data with the
SCOPE 1 GHG EMISSIONS BY 20% — sophisticated mapping capabilities of
3 YEARS AHEAD OF SCHEDULE. AT&T data scientists. This effort led AT&T
to develop a Climate Change Analysis Tool
We continue to reduce reported that will help anticipate potential impacts
GHG emissions by enhancing energy of climate change on our infrastructure
efficiency and increasing our emphasis and operations – 30 years into the future.
on renewable energy. Since 2010, we
Because AT&T believes that data to help
implemented nearly 111,000 energy-
assess the risks of climate change should
efficiency projects, and in 2018, we
be available to all who need it, we’ll make
invested in several wind energy centers
available the climate change datasets
(named AT&T Windstrong) contributing
we’re using internally – to universities,
up to 820 megawatts (MW) of renewable
municipalities and others for use in their
energy capacity. We’re exploring similar
own climate risk analysis.
new opportunities that will keep us
among the largest corporate renewable
energy purchasers in the U.S.
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4th Industrial Revolution
T
oday, we are on the cusp of a 4th
Industrial Revolution – a world of
artificial intelligence, automation
and the Internet of Things (IoT) – that is
A lot of technology
embedding technology in society in doesn’t live up to
countless new ways. By providing the the hype. But some OUR 10X CARBON
backbone that powers and connects many solutions, like the REDUCTION GOAL
of these innovations, AT&T is mindful of emerging smart city, We know that our technology can
our opportunity to help strengthen use technology to help customers reduce their carbon
communities, reduce environmental enhance citizens’ emissions. That’s why we set our 10x
impacts and improve health and safety. quality of life – socially, Carbon Reduction goal to enable carbon
economically and even savings 10 times the footprint of our
We see that great good can come from
environmentally. It’s operations by 2025. We’ve made progress.
technology. Through our IoT for Good
At the end of 2018, we calculated that
program, we measure the societal and a great example of
AT&T technology enabled customer
environmental impacts of our products what I like to call
GHG emissions reduction approximately
and services. Our IoT and Smart Cities ‘IoT for Good’.” 2 times the GHG emissions footprint of
projects are helping reduce resource use
Chris Penrose, Senior our operations. See our 10x update for
and emissions, improve the longevity of
Vice President, Internet details and case studies highlighting
infrastructure and make cities safer and
of Things Solutions – scalable customer solutions.
more accessible. By delivering sustainable
customer solutions, we’re helping others AT&T Communications
achieve cost and environmental savings –
Read more at att.com/10x
in fields such as shipping and agriculture.
A key component of success in these
initiatives will be the deployment of 5G. This
next generation of mobile communication
will offer a new network experience: faster,
smarter and able to respond to users and
connected devices with very low latency in
nearly real-time. And as we work to deliver
5G, we will continue to improve the impact
of our network, helping to close the digital
divide by bringing faster internet speeds to
more people.
By focusing on emerging technologies
and the utility they can provide, AT&T is
helping ensure that sustainability will be
an integral part of how we live, work and
play in the future. Learn more at att.com/Iot-For-Good
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Customer Privacy
C
ustomers count on AT&T to deliver consumer choice. We believe
the best communications and the best way to achieve these
entertainment experiences in the goals is to create a law that
world. Our combination of strong
Privacy is a fundamental applies consistently to all
direct-to-consumer relationships and commitment at AT&T. companies, fosters innovation
premium video content helps us develop We have policies and and competitiveness, and
data-driven insights to better serve our procedures in place designates a single regulator.
customers and continuously innovate to inform customers Security is a critical
our services. and help them feel component to maintaining
But at a foundational level, customers comfortable about how privacy, and our Chief Security
rightfully expect us to protect their AT&T protects and uses Office (CSO) ensures security
information and respect their privacy. their data.” is built into the fabric of every
We take this responsibility very seriously, Tom Moore, Senior Vice organization within AT&T.
and our customers have choices about With more than 700 dedicated
President, Compliance and
how we use their data. They have the CSO professionals and more
Chief Privacy Officer
ability to opt-in to some programs or say than 1,400 additional
no to others. security specialists
working in organizations across the
More broadly, consumers deserve a single business, AT&T is committed to
set of privacy rules they can understand the management of our security
and rely on across the nation. That’s why policies and the protection of our
we’re advocating that Congress pass global network.
legislation to protect consumers’ privacy,
promote online competition and ensure
WE’RE COMMITTED TO 4 PRIVACY PRINCIPLES:
TRANSPARENCY CHOICE AND SECURITY INTEGRITY
Being open and CONTROL Using strong Managing data in
honest about how Giving customers safeguards to keep a respectful, deliberate
we use data. choices about how data confidential way to maintain the
we use data. and secure. trust our customers
have placed in us. Read more in our Network and Data Security
and Customer Privacy issue briefs at
about.att.com/csr/reporting11
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Human Rights
O
ur network connects people AT&T expects suppliers to treat their
across the globe every day, employees the way we do our own.
making it possible to share Threats of violence, physical abuse or
opinions freely and seek out the ideas of other forms of coercion, harassment,
others. This exchange is at the very core or intimidation are not tolerated, and
of what we do as a company. suppliers’ employment, wage and
benefits practices cannot be based on
Because of our size and scale of employee classifications protected under
operations, we have an opportunity to AT&T policies.
help preserve human dignity and protect
human rights for all individuals, including Our approach also includes collaboration
the millions of people who do business with independent third-party
with us or use our technology. We believe organizations such as the Joint Audit
that freedom to access information Cooperation, whose audits help ensure
and media, freedom of expression and human rights and fair labor practices
respect for personal privacy are essential are protected throughout our supply
to advancing human potential – and all chain, and Tech Against Trafficking, which
are integral to our relationship with our seeks to create technology solutions that
employees, our suppliers, our customers disrupt and reduce human exploitation.
and our communities.
At AT&T, our commitment to human
rights is supported by our Human Rights Read more in our Human Rights issue brief
Policy, Code of Business Conduct, at about.att.com/csr/reporting
Privacy Policy and Principles of
Conduct for Suppliers.
EXPECTATIONS
We recognize that the way we treat our
employees reflects our core values. As
FOR SUPPLIERS
a result, we insist on a positive work Our Principles of Conduct for
environment that treats all employees Suppliers outlines our expectations
with respect and dignity. We comply on a variety of issues, including
with child labor laws and we do not environment, health and safety,
employ forced labor. And, as the global diversity, ethics, freedom of
work landscape continues to change, association, conflict minerals, labor
we recognize the need to continually practices and human rights.
adapt our policies – including the
formation of guiding principles, as our
operating units develop and implement
artificial intelligence.12
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Responsible Use of Products and Services
C
ommunications technology and or type of content. And through our
media can open many doors, ScreenReadySM program, initially piloted
providing seemingly endless in select New York and New Jersey retail
convenience at our fingertips, locations, customers of any carrier can
opportunities to explore innovative request hands-on advice when setting
educational resources and ways to their individual parental controls.
connect with family, friends and cultures We work to reduce or eliminate smoking
around the world. and tobacco depictions in feature films
As people enjoy our products, services and produced or distributed in the U.S.,
content, we are committed to helping them especially in those aimed at younger
do so responsibly. With the support of audiences. And, we offer parental controls
organizations such as the Oasis Institute on our DIRECTV and U-verse platforms to
and Common Sense Media, we reach across help parents restrict unsupervised viewing.
generations to help children, parents and Technology and entertainment enhance
seniors build the online skills they need. our lives, and we’re working with experts
We’re working to help customers identify around the world to ensure customers
and avoid harmful situations such as have the information
scams, cybercrime and bullying. Cartoon and tools they
Network’s Stop Bullying: Speak Up and need to consume
AT&T’s #LaterHaters and Great Game them responsibly.
campaigns are designed to help curb
bullying before it starts, and combat the
toxicity that has crept into social media
and the online gaming world.
Read more in our
Platforms such as AT&T Secure Family™ Responsible Use of
help parents guide children’s mobile Products and Services issue brief
device use by location, time of day at about.att.com/csr/reporting
To meet our goal of reaching 10,000 seniors in
2019, AT&T and the Oasis Institute are holding
events and producing online safety videos on
topics such as phishing, social media scams and
what to do if personal information is stolen.13
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Media Pluralism
M
edia plays a critical role in It is essential that our content
society. The industry can and creative partners reflect
empower citizens with a the diversity of our society
spectrum of views from which to make
We are committed and the world around us.
informed decisions, and we believe it’s to building and In 2018, WarnerMedia issued
important that people have an nurturing a culture that the media industry’s first
opportunity for their voice or perspective encourages – and values Diversity & Inclusion Policy
to be represented. We achieve this by – diverse perspectives with a commitment to
producing and enabling access to content in our workplace, and ensuring there are greater
that is diverse and purposeful – ensuring supports the unique numbers of women, people of
producers and journalists have freedom voices of the talent and color, the LGBTQ+ community,
to pursue stories creatively and to deliver those with disabilities and
partners we work with.
the facts responsibly. other often underrepresented
That is reflected in the groups in front of and behind
We practice and defend the highest world-class content the camera.
principles of journalistic integrity and we create.”
ethical standards. In our news coverage, Through programs such as the
Jim Cummings, Executive AT&T Media Fellowship, AT&T
our journalists strive to present the whole
Vice President and Chief Hello Sunshine Filmmaker
story, fairly and completely, so readers
and viewers can make informed decisions. Human Resources Officer – Lab, Cinema+, Turner Voices
This commitment reflects one of our WarnerMedia Youth Media Institute and
core company values – embrace Warner Bros. (WB) First Cut,
freedom – which we apply to press, we support young, diverse
speech and beliefs. filmmakers with grants and training for
media careers. Students learn directly
We also understand the opportunity for from our media professionals with tours,
media to deepen the public conversation shadowing and presentations – as well
on issues and subjects that matter. as through educational sessions with
Through our AT&T Presents: Untold industry experts working in the field.
Stories and WarnerMedia OneFifty
initiatives, we’re developing content
differently by curating untold narratives,
investing in artists with authentic voices #SEEHER
and incubating messages that resonate
It will take brands, advertisers, celebrities and influencers
with diverse, global audiences.
collaborating to help girls and women see themselves
reflected in media as they truly are. As one of the largest U.S.
advertisers, AT&T joined the #SeeHer movement with the goal
of increasing the accurate portrayal of women by reducing
stereotypical narratives in our advertising 20% by 2020. AT&T
exceeded this goal in 2018 – 2 years ahead of target.14 2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS GOVERNANCE & LEADERSHIP
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CSR Governance & Leadership
Board Oversight The Committee also oversees our policies PUBLIC POLICY AND
Our Corporate Social Responsibility The Public Policy and Corporate
for philanthropic giving, which include CORPORATE REPUTATION
(CSR) strategy accounts for Reputation Committee (the Committee)
corporate contributions as approved COMMITTEE MEMBERS
by the AT&T Contributions Council
long-term trends and allocates of the AT&T Board of Directors oversees Laura D. Tyson (Chairwoman)
and grants as approved by the AT&T
our CSR work, including volunteerism, Director, Institute for Business and Social
resources based on both social and Foundation. The Contributions Council
philanthropy, education, privacy, diversity, Impact, Berkeley Haas School of Business
business impact. A commitment advocacy, environmental policy, non-
and AT&T Foundation are comprised
to addressing environmental, of senior executives charged with Samuel A. Di Piazza, Jr.
financial reporting to investors and
the supervision of our philanthropic Retired Global Chief Executive
social and governance (ESG) stakeholders, and political contributions
investments. Officer, PricewaterhouseCoopers
issues is embedded at every level disclosures. Committee members bring
unique professional expertise that The Committee’s expertise is valuable International Limited
of our company, including Board
provides the diverse experience, depth of in identifying emerging trends that Glenn H. Hutchins
oversight, officer-level involvement knowledge, judgment and vision to guide impact our business, and for setting Chairman, North Island and Co-Founder,
and a team of dedicated CSR a dynamic and varied enterprise like AT&T. our long-term ESG strategy. Our Chief Silver Lake
professionals who engage leaders Sustainability Officer presents to
William E. Kennard
across the business. the Committee 3 times annually, and
with committee member guidance, Former U.S. Ambassador to the
we examine topics including climate European Union, U.S. State Department
Foundational policies, including our Code and former Chairman, U.S. Federal
of Business Conduct, put our values into For more than 10 years, resiliency, privacy, political engagement,
education and philanthropic giving. They Communications Commission
action and detail our commitments to AT&T’s governance
ethics, diversity, privacy, the environment push us, challenge our assumptions and
has provided for board
and our communities. Annually, we detail improve our work.
committee oversight of
our ESG performance and progress the company’s leadership
through robust public corporate
on critical ESG issues
responsibility reporting — including our
and opportunities.
approach to stakeholder engagement,
alignment to the Global Reporting Board involvement and
Initiative (GRI) Standards, response to the accountability on ESG issues
CDP Climate Change survey, which aligns are important as businesses,
with TCFD recommended disclosures, investors, citizens, and state
and our detailed issue briefs covering 20 and local governments are POLITICAL ENGAGEMENT REPORTING
of our most important focus areas. Our acting to address such issues We strive to bring our customers the innovation they demand, provide
recently updated Political Engagement at unprecedented speed
Report implements an enhanced layer shareholders value on their investment and be a responsible corporate
and scale.” citizen. A critical component of these efforts is being an active participant in
of public accountability for the support
of issues that impact our business, our Laura D. Tyson, Chairwoman, the political process. This year, we revised the AT&T Political Engagement
employees and our customers. Public Policy and Corporate Report to be more transparent, reader-friendly and responsive to the
Reputation Committee, AT&T political disclosure and accountability policies and practices of the CPA-Zicklin
Board of Directors Index of Corporate Political Disclosure and Accountability.16
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CSR Governance & Leadership continued
CSR GOVERNANCE COUNCIL CSR GOVERNANCE COUNCIL MEMBERS
AND SUBCOMMITTEES GOOD CORPORATE GOVERNANCE
Corey Anthony Mo Katibeh
Our CSR Governance Council (Council) We address environmental, social and governance issues at Senior Vice President, Chief Marketing Officer
is led by our Chief Sustainability Officer every level of our company. Human Resources and Chief AT&T Business – AT&T
and is comprised of senior executives Diversity Officer Communications
from business areas linked to the CSR
Len Cali Jerrie Kertz
topics most important to us and to our Public Policy and Corporate Reputation
Senior Vice President, Senior Vice President,
stakeholders. Council members represent Committee
Global Public Policy Compliance
their entire organization, collaborating AT&T Board of Directors committee responsible
across a broad range of issues and for Corporate Social Responsibility oversight Fiona Carter Charlene Lake
perspectives. Chief Brand Officer – AT&T Senior Vice President,
Communications Corporate Social
In addition to the cross-functional CSR
Responsibility and Chief
Governance Council, we convene 4 Keith Cocozza
CSR Governance Council Sustainability Officer
core issue subcommittees: Community, Executive Vice President,
Employee Activation, Environment and Officer-level committee focused on CSR Marketing & Communications Scott Mair
Human Rights. These subcommittees issues, led by our Chief Sustainability Officer – WarnerMedia President, AT&T Operations –
work closely with the CSR core working AT&T Communications
Michael Hartman
team and expert business unit functional
General Counsel and Larry Solomon
teams to address CSR issues and execute
Core Issue Subcommittees Secretary – AT&T International Chief Communications Officer
programs throughout AT&T.
Company leaders with expertise on specific Abhi Ingle Valerie Vargas
issues: Community, Employee Activation, Senior Vice President, Digital, Senior Vice President,
Environment, Human Rights Distribution & Channel Advertising & Creative
Marketing, AT&T Business – Services – AT&T
AT&T Communications Communications
Susan Johnson Mike Viola
CSR Core Working Team Executive Vice President, Senior Vice President,
Organization focused daily on CSR Global Connection Investor Relations
Management & Supply Chain
Rick Welday
– AT&T Communications
President, Xandr Media –
Xandr
Expert Teams
Business unit representatives working
on CSR issues17 2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS CSR Across the Business When it comes to tackling social, economic and environmental issues, we recognize the importance of AT&T’s role in addressing the challenges of tomorrow. Our CSR organization continuously asks – How can we pursue our business objectives while bringing additional benefits to the communities around us? We work collaboratively across our company to develop and evaluate CSR programs based on both the social and business impact of our efforts, and we allocate resources to the areas with the greatest potential for shared value. Some highlights of how we integrate CSR principles into our business strategy include: – Lifting Communities from Within page 18 – Investing in Diversity page 19 – Supporting Renewable Energy page 20 – Scaling Carbon Reduction page 21 Our approach to CSR is designed to unify internal teams, bridge employees from diverse organizations and develop sustainable programs that drive business value from solutions to societal and environmental issues. We believe that’s good for our customers, communities, the environment – and AT&T.
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CSR Across the Business continued
FROM WITHIN
O
ur company’s success is Believe Chicago is making a difference
inextricably tied to the health for our employees, customers, neighbors
and prosperity of our local and friends who live and work in the city.
communities. In Chicago, AT&T has more In addition to pushing economic growth
than 2,000 employees and more than 115 and innovation in our communities, the
stores and retail partners. After initiative is re-energizing other facets
identifying 19 Chicago neighborhoods of our community engagement and
affected by violence and high diversity programming. That’s why we’ve
unemployment, local AT&T employees expanded our work into a broader AT&T Our employees are a reflection of our corporate
coordinated resources to launch Believe BelievesSM initiative to serve as a catalyst culture, and their engagement is a key component
ChicagoSM. This grassroots initiative in more communities in which we operate, of our approach to corporate citizenship. AT&T
focuses on hiring, volunteerism and focusing on additional local needs such as employees have a strong sense of community and
contributions to lift neighborhoods and homelessness and access to education. want to get involved, and helping our employees
help people find opportunities in Through early 2019, we’re helping create support the causes they believe in can boost
education, careers and life. In just over a positive change in Atlanta, Dallas, Detroit, employee satisfaction and create a happier and
year, we hired more than 500 employees New Orleans and New York – with more healthier workplace. In 2018, they did a lot of good
from Believe Chicago neighborhoods, cities to come. work: volunteering approximately 1.5 million hours
contributed more than $3 million to and donating over $31 million to more than 30,000
community organizations and opened non-profits.
our first new retail store in the area. Read more at attbelieves.com19
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CSR Across the Business continued
IN DIVERSITY
W
e have a longstanding belief diversity around specific business issues,
that our differences make us professional development topics and
stronger, and we work to ways to serve the community.
encourage the very best and the brightest
from all walks of life. From recruitment and
training within our business to inspiring
the next generation in collaboration with
$173B+ SPENT
with diverse businesses over the
organizations such as Girls Who Code and past 50 years
programs like WB Access to Action, we
actively encourage women and people of Through our Supplier Diversity program,
color to pursue careers in which they are which recently celebrated its 50th
often underrepresented – including those anniversary, we make measurable
in science, technology, engineering, math contributions to the economic growth
and media production. of diverse companies and communities.
AT&T has 58 employee groups that Over the past 50 years, AT&T spent more
reflect our company’s diversity and than $173 billion with businesses owned
include representation for women, by minorities, women, service-disabled
Black employees, Asian/Pacific Islander veterans and LGBTQ+ people – each
employees, Hispanic/Latino employees, adding value to our company through
Native American employees, LGBTQ+ their innovation and fresh ideas.
employees, employees with disabilities, We’re proud our efforts were recognized
and those who are military veterans, by DiversityInc with the top spot on the
young professionals and experienced 2019 Top 50 Companies for Diversity list.
career professionals.2 These organizations
help members grow professionally and
personally – supporting cross-functional Read more at att.com/diversity
2 Inclusive of WarnerMedia and Xandr20
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CSR Across the Business continued
RENEWABLE ENERGY
O
ur data centers, retail locations
and other facilities require
significant energy to serve our
$50K IN
customers and keep them connected.
While boosting the energy efficiency of
CONTRIBUTIONS
to create the AT&T Wind Energy
our operations is an ongoing focus, we
Scholarship fund
also believe it’s wise to invest in a flexible
and diverse energy supply that includes
clean, renewable sources of power. To further support the counties where
AT&T-backed energy projects are
Through internal collaboration with
located, we also launched the AT&T
our operations and finance teams, we
Wind Energy Scholarship fund at Texas
committed in 2018 to fund several wind
State Technical College – providing
energy centers that make us one of
scholarships for students who pursue
the largest corporate purchasers of
careers in wind technology and
renewable energy in the U.S. Not only will
renewable energy.
these projects contribute to a cleaner
environment and a dramatic reduction in We believe support for renewable energy
AT&T’s reported GHG emissions, they’re is good business for communities and
also making a significant local impact for AT&T.
– generating hundreds of potential
construction jobs, dozens of full-time
employment opportunities and millions of
dollars in estimated property tax revenue
and lease payments to landowners. Read more at att.com/renewable-energy21
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CSR Across the Business continued
CARBON
REDUCTION
O
ur 10x Carbon Reduction goal – to
enable carbon savings 10 times
the footprint of our operations by
2X OUR
2025 – shows our commitment to
operating a net-positive business, and has FOOTPRINT
in calculated customer GHG
opened the door to a new level of
collaboration with our engineering, emissions reductions
marketing and sales teams. Since
developing a methodology to measure initiative to engage customers in new
the carbon-reducing impact of both conversations about ways we can
established and new technologies like IoT improve their efficiency, while reducing
solutions, we’ve been working with their environmental impact. This focus
customers and third-party collaborators on “IoT for Good” turns the abstract
to scale innovations such as: smart idea of technology-enabled carbon
lighting, irrigation and energy metering; reduction into a practical discussion
telecommuting and remote patient about emerging technology solutions and
monitoring; and connected shipping and positive impacts beyond the bottom line.
fleet logistics.
Specialized IoT sales and marketing
teams are using real-world case
studies developed through our 10x Read more at att.com/10x22 2018/2019 GLOBAL ESG CSR GOVERNANCE PROGRESS KEY PERFORMANCE AT&T CORPORATE RESPONSIBILITY SUMMARY LEADERSHIP TRENDS & LEADERSHIP TOWARD GOALS INDICATORS TOWARD GOALS WarnerMedia and Xandr data not included, unless otherwise noted.
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Progress Toward Goals
As we near or reach attainment on several of our goals, we’ll be setting our sights even higher –
identifying new measures that continue to push us and reflect the direction of our evolving business.
OUR NETWORK AND CUSTOMERS
GOAL PROGRESS
2020 Scope 1 Emissions
GOAL
Reduce our Scope 1 GHG emissions Reduced by 24.7%
20% by 2020 We emitted 1,019,696 metric tons CO2e in 2018. Year-over-year,
We will continue to drive reductions our Scope 1 GHG emissions are down 4.6% from 2017.
using a 2008 baseline of 1,354,054 metric tons CO2e.
in emissions and increases in
resource efficiency and alternative
energy deployment. We will enable
Electricity Intensity
AT&T customers to lead more
sustainable lives by expanding Reduce electricity consumption 60% Reduced by 78%
access to technology, further by 2020 relative to data traffic Our energy intensity was 51 MWh electricity/petabyte
integrating sustainability solutions on our network (our energy intensity metric) using a in 2018. 3
into products and measuring 2013 baseline of 233 MWh electricity/petabyte of
network traffic.
the impacts.
Fleet Management
Reduce U.S. fleet emissions 30% Reduced by 26%
using a 2008 baseline of 865,777 metric tons CO2e. Our U.S. fleet emitted 638,189 metric tons CO2e in 2018. Year-
over-year, our fleet emissions are down 7.5% from 2017.
Alternative Energy
Expand alternative energy Invested in up to 820 MW of wind power
through on-site capacity and pursuing off-site renewables. In 2018, we invested in up to 820 MW of wind power through
agreements with subsidiaries of NextEra Energy Resources,
the world’s largest operator of renewable energy projects.
Our Bloom natural gas fuel cells bring our total
on-site alternative energy capacity to 50.8 MW.
3 In 2018 and going forward, we include satellite traffic in our total network traffic (total production). Prior to this addition, our 2018 energy intensity
metric would have been 100 MWh/PB. Learn more about how we calculate total traffic for our energy intensity in our Energy Management issue brief.24
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Progress Toward Goals continued
OUR NETWORK AND CUSTOMERS
GOAL PROGRESS
2020 Product Efficiency
GOAL
Provide consumer device sustainability Rated 100% of eligible devices
information Our Eco-Ratings system provides customers with a rating for
We will continue to drive reductions for all AT&T-branded network-connected consumer environmental and social details about how the devices we
in emissions and increases in wireless devices. sell are made.
resource efficiency and alternative
energy deployment. We will enable
AT&T customers to lead more Device Recycling
sustainable lives by expanding
access to technology, further Collect 200 million devices Refurbished or recycled 175 million devices
integrating sustainability solutions for reuse, refurbishment or recycling by end-of-year 2020. As of the end of 2018, AT&T has refurbished or recycled
approximately 175 million devices since 2007. This includes
into products and measuring approximately:
the impacts.
• 92 million DIRECTV devices
• 18.7 million U-verse devices
• 10 million broadband devices
• 53 million mobility devices
Greenhouse Gas Methodology
Understand our GHG impact Developed methodology and measuring
by developing a robust methodology to measure GHG impact
the impact of the AT&T network’s greenhouse gases With leading non-government organizations, industry groups
on society. and peer companies, AT&T developed a credible methodology
to measure the GHG impacts of customers’ use of AT&T
technology in an effort to track progress against our 10x
Carbon Reduction Goal. Read more at att.com/10x25
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Progress Toward Goals continued
OUR NETWORK AND CUSTOMERS
GOAL PROGRESS
2020 Fiber & Broadband Deployment
GOAL
Reach 12.5 million locations with Reached 11 million locations
all-fiber internet access By the end of 2018, we deployed all-fiber internet access to
We will continue to drive reductions 11 million locations.
such as residences, home offices and very small
in emissions and increases in businesses, by mid-2019.4
resource efficiency and alternative
energy deployment. We will enable Social & Environmental Impact
AT&T customers to lead more
sustainable lives by expanding Demonstrate positive social Developing innovative solutions and
access to technology, further and environmental impacts case studies
of AT&T-connected devices and solutions through AT&T continues to develop innovative technologies by
integrating sustainability solutions collaborating internally and externally to improve quality of life
internal and external collaboration.
into products and measuring and the world around us. Our IoT for Good and 10x initiatives
the impacts. highlight solutions and case studies demonstrating positive
impacts in the areas of health, accessibility, disaster relief and
more. Read more at att.com/IoT-for-Good and att.com/10x
4 Consistent with the requirements of the FCC DIRECTV Merger Order.26
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Progress Toward Goals continued
OUR NETWORK AND CUSTOMERS
GOAL PROGRESS
2025 Operational Efficiency
GOAL
Enhance operational efficiency Continued emissions reductions
to achieve a net-positive ratio between our operational We continue to reduce our greenhouse gas emissions
By 2025, AT&T will enable footprint and the carbon reductions our technology through extensive energy efficiency efforts in our buildings
carbon savings 10 times the makes possible for customers using our services. and network, optimization of our vehicle fleet and through
footprint of our operations large-scale renewable energy purchases. We also continue
by enhancing the efficiency to leverage our technology to identify opportunities for
additional improvements in operational efficiency.
of our network and delivering
sustainable customer solutions.
Customer Enablement
Deliver customer solutions Enabled reductions 2X our footprint
to achieve a net-positive ratio between our operational At the end of 2018, we calculated that AT&T technology
footprint and the carbon reductions our technology enabled customer GHG emissions reduction approximately
makes possible for customers using our services. 2 times the GHG emissions footprint of our operations.27
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Progress Toward Goals continued
OUR SUPPLY CHAIN
GOAL PROGRESS
2020 Sustainable Sourcing Standards
GOAL
Incorporate sustainability-oriented Conducted supplier assessments and audits
sourcing standards In 2018, AT&T Global Connections and Supply Chain continued
We will lead our supply to require suppliers to adhere to our Principles of Conduct For
and analysis into sourcing decisions with strategic
chain to improve its social suppliers by the end of 2018. Suppliers through our Supplier Portal and supplier contract
and environmental impacts agreements. We received over 200 sustainability assessments
by integrating sustainability from suppliers during 2018. We led 5 on-site supplier factory
audits as a member of JAC. AT&T continues to make progress
performance metrics into our
with efforts including the incorporation of sustainability clauses
sourcing decisions for 80% of into RFPs and agreements, training our sourcing managers
our spend. 5 on the principles of sustainability, and providing updates to
sourcing managers on the sustainability performance of
existing suppliers. During 2018, we also provided sourcing
managers with access to third-party supplier sustainability
reports for use in sourcing decision-making for suppliers. AT&T
will continue to expand incorporation of sustainability-oriented
standards and analyses into sourcing decisions.
5 This goal is focused on network, consumer equipment and corporate services spend, and does not include video content and entertainment companies.28
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Progress Toward Goals continued
OUR SUPPLY CHAIN
GOAL PROGRESS
2025 Supplier Sustainability Measurement
GOAL
Help establish clear, agreed-upon Collaborated with industry-leading
industry sustainability metrics organizations
We will work with our industry to measure the environmental and social impact of To evaluate our suppliers on social and environmental
peers to develop and promote technology supply chains. criteria, we work with multiple third-party industry
adoption of sustainability organizations, including:
metrics that will transform the • TIA-QuEST Forum: AT&T helped lead the sustainability
environmental and social impact working group tasked with advancing the evolution and use
of technology supply chains. of the TIA Sustainability Assessor tool. During 2018, we used
this tool with our suppliers, replacing a proprietary AT&T
supplier scorecard.
• CDP: AT&T annually notifies about 450 of our strategic
suppliers, representing 80% of our spend, to respond to
the CDP supply chain survey and report on GHG emissions.
Using industry-accepted methods, we gather their
emissions data, reduction goals and associated progress.
• Joint Audit Cooperation (JAC): We worked with JAC
to conduct 5 Corporate Social Responsibility Audits of
our suppliers’ manufacturing facilities. JAC member
telecommunications companies share supplier audit
results, allowing for improvement while reducing supplier
audit fatigue.
• Sustainable Purchasing Leadership Council (SPLC):
AT&T uses guidance documents produced by the SPLC,
which evaluates sustainable purchasing standards and
tools in the market and publishes guidance for conducting
RFx evaluations.29
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Progress Toward Goals continued
OUR SUPPLY CHAIN
GOAL PROGRESS
2025 Industry Sourcing
GOAL
Promote the use of sustainability metrics Encouraged tier 1 supplier reporting
in industry sourcing. AT&T suppliers currently use CDP supply chain and TIA
We will work with our industry Sustainability Assessor metrics to report GHG emissions and
peers to develop and promote sustainability progress. This provides AT&T and other TIA-
adoption of sustainability participating companies the ability to benchmark supplier
metrics that will transform the emissions and work with suppliers on making improvements.
environmental and social impact
of technology supply chains.
Sustainability Performance
Develop and follow an industry roadmap Collaborated with suppliers and organizations
toward truly sustainable performance among AT&T is moving our suppliers along an industry roadmap with
our suppliers. CDP, JAC and TIA-QuEST Forum to continuously improve
measurements, benchmarking and results in sustainable
supplier performance.You can also read
