and tech skills £1bn Use our skills and technology to help generate more than £1bn for good causes £327m generated since 2012/13 66% Inspire 66% (two-thirds) of BT people to volunteer their time and skills 27% volunteered in 2015/16 10m Help 10m people overcome social disadvantage through the benefits our products and services can bring 2.6m helped since 2014/15 9/10 More than 9/10 people will have access to fibre-based products and services 8.5/10 premises reached by 2016 3:1 Help our customers reduce carbon emissions by at least three times the carbon 1.6:1 achieved in 2015/16 end
For most of the year we were organised around five customer-facing of business (BT Global Services, BT Business, BT Consumer, BT Wholesale, and Openreach), which were supported by our internal service unit, BT Technology, Service & Operations (BT TSO). Our acquisition of EE in January added a sixth line of business, and is bringing together the UK’s fastest mobile network with the largest superfast broadband network. This puts us in a great position to meet the growing demand for converged digital services from UK consumers, businesses, and the public sector. EE in this report We completed the EE acquisition on 29 January 2016, ten months into our financial year. We’ll integrate the new business into our non-financial reporting for 2016/17. The information and data in this report doesn’t include EE, unless we say otherwise. Our business Customers EE We acquired EE on 29 January 2016, bringing together the UK’s fastest mobile network with the largest superfast broadband network. BT Global Services We help around 6,200 corporate and public sector customers. We’ve consolidated our position as a leading global business provider. BT Business We sell and IT services in the UK and the Republic of Ireland. We are leaders in the networking, cloud services and broadband markets. BT Consumer We are the largest provider of consumer broadband and in the UK. We want to deepen our customer relationships through selling broadband, TV, BT Sport channels and mobile services to our customers BT Wholesale We provide network products and services to over 1,400 Providers (CPs) in Great Britain. Openreach We look after the network that runs from the local exchange to people’s homes and businesses. We sell services to all CPs (including parts of BT) on an equivalent and basis. BT Technology, Service & Operations voice,
Population growth and urbanisation 1/3 increase in global population by 2050 2.5 billion more people living in cities More than 25m premises can now get fibre-based products and services – that’s around 85% of the UK so far – and our technology is enabling cities to build the infrastructure to cope with more people. Smart cities Connecting Society Social disadvantage 836 million people worldwide live in extreme poverty 32% of people living in the UK are low income 3 times as likely young people in the UK will be unemployed Number of people aged over 85 expected to double by 2039 By 2020, we aim to improve tech skills for 5m kids, help 10m people overcome social disadvantage, help generate more than £1bn for good causes, and inspire two-thirds of our people to get involved through volunteering. Connecting Society Supporting our communities Building skills Privacy and online safety 78% of UK adults now access the internet everyday 38% increase in security We protect customers’ privacy, invest heavily in information security and help parents keep children safe online. Building skills Protecting customers’ privacy
the knowledge and skills they need, when they need it. Across the world, our employees used the BT Academy website more than 400,000 times this year. Each month, over 20% of our people are now sharing information and ideas, as well as accessing learning materials online. The tools we’ve developed have won awards both at the Learning and Performance Institute Annual Learning Awards 2016, and at the Training Journal Awards 2015. Engaging our people We want to engage people in every part of our organisation. They need to know how they can contribute to our success. And we need to know how we’re doing as an employer. Our CEO and executive team regularly communicate about our strategy and speak to people directly through roadshows, site visits and webchats. But they don’t do all the talking. We ask our people how we can improve and we listen to what they’ve got to say. Listening to our people We want people to tell us how they feel about working at BT, to help us become a better employer. This year, more than 72,000 people took part in each of our twice-yearly employee surveys. Overall engagement was stable at 3.81 points out of 5, although this is still lower than the average score of 3.95 in our industry. We’re using the results of the surveys to refine our people strategy and target change across the business. Our people continue to feel valued by their managers and take pride in our products and services. Around 72% agreed that their manager cares about them as a person and 81% would recommend our products and services to friends and family. They told us they would like us to simplify systems to help them work more efficiently and provide better service for our customers. And they want to see better communication from senior leaders on strategy and progress. We’re responding with improved systems, processes and tools to serve customers and regular communication on strategy and changes in the business. Beyond these surveys, people can raise any issues informally with their managers. But we also engage in more formal dialogue with employees and their representatives through our European Consultative Council, and discussions with the Communication Workers Union and Prospect in the UK. Managing change
By 2020, we aim to help customers cut their carbon footprints by three times our carbon emissions. That’s a 3:1 net positive impact. Our products and services enable customers to work remotely, operate more efficiently and avoid travel. This saves energy, fuel and carbon emissions (CO2e). But producing and delivering those products and services generates emissions. With our 3:1 ambition, we’re boosting efforts to tackle climate change while minimising our impact. We’re increasing the ‘3’ by developing and offering more services that help customers cut their carbon footprints. At the same time, we’re working to minimise the ‘1’, our own end-to-end emissions – in the supply chain and our operations, and from the energy customers need to use our products. In 2015/16, we achieved a ratio of 1.6:1. That means we’re already helping our customers save 1.6 times more carbon emissions than those that result from our business activity, and the manufacture and use of our products. Read on to find out how we’re tackling climate change by working with others, enabling customers to cut carbon and reducing our end-to-end emissions. Measuring our impact We’ve developed a methodology to measure progress towards our 3:1 ambition. We work with the Carbon to estimate the carbon savings we can help our customers make. Our calculations are based on research studies and real case studies from customers using different types of BT products and services. This year, we extended the portfolio covered in the methodology to include further services relating to IP communications, mobility, cloud, remote collaboration and machine-to-machine technology. To understand our total end-to-end impact, we estimate the emissions associated with our supply chain using a model we’ve developed with Small World Consulting. This includes emissions from our extended supply chain and draws on data from the Carbon Disclosure Project (CDP) and our Better Future Supplier Forum. We add data on the carbon footprint of our own operations as well as calculating emissions from customers’ use and disposal of our products. See our website () for more details on our 3:1 methodology. 3:1 ambition 2014/15 2015/16 Customer carbon savings 7.1m tonnes 7.6m tonnes Our end-to-end emissions 4.6m tonnes 4.8m tonnes Ratio 1.5:1 1.6:1 Collaborating with others