We take this matter very seriously and we’ve put in place additional controls to safeguard against this happening again and to make sure that we’re providing the highest standards in serving our customers. For more details see our Annual Report (). Behaving ethically and respecting human rights We expect everyone who works with us to follow our values, act with integrity and respect human rights. Doing business ethically We expect our people and our suppliers to act ethically in everything they do. The behaviours and practices we found in our Italian business, in addition to Ofcom's findings on Deemed Consent process in Openreach, have no place in BT. We take these issues extremely seriously and are putting in place new measures, controls and people to prevent them happening again. the right thing We expect our employees and suppliers to follow our ethics code: The Way We Work. This offers clear guidance on how we make decisions, including on gifts and hospitality, conflicts of interest, data privacy and human rights. We don't tolerate bribery or corruption in any form. This year, we’ve carried out an extensive review of the code. We'll launch the updated version in 2017/18. We require all our employees to complete annual training on The Way We Work: this year 99.3% of our people did so. We also provide further training on issues like anti-corruption to people who work in roles or environments where these risks are more prevalent. Senior managers must also sign up to an additional code of ethics with specific requirements for their roles. Building awareness Sometimes it’s hard to know what to do when confronted with a sensitive situation. That’s why we regularly publish case studies on real dilemmas faced by our employees as part of our ethics in action series. We share stories on ethics with senior managers through a quarterly newsletter, and encourage them to stress the importance of ethical behaviour when they talk to their teams. We’ve changed the way we report and measure the level of ethical engagement among our people. We’ve simplified the questions in our employee survey to encourage greater participation, and we changed the scoring system to make it easier to analyse the results. In January’s survey, 76% of
people also won the Apprentice of the Year, Mentor of the Year and Women in Telecoms awards at the Institute of Telecommunications Professionals annual awards. We’ve recruited almost 1,500 people into Openreach and 3,600 people into customer-facing roles in our BT UK contact centres. We've seen a net increase of 200 people in EE's stores and contact centres. We've also recognised the importance of retaining experience, by converting almost 1,600 skilled agency workers into permanent employees. Developing our people We learn so we can grow. Everyone at BT gets the tools and training they need to do their job, build their skills and gain experience. Employees also receive regular development reviews to learn and develop professionally. The BT Academy provides learning resources, training courses and a community for employees to share knowledge and best practice. Around 25,000 of our employees use the Academy each month. Managers also offer regular coaching and support for their teams. Our key leadership programmes have reached 1,400 leaders globally in 2016/17. We’ve launched a new programme to develop aspiring first line leaders and introduced a leadership model that emphasises the importance of establishing deeper connections with customers. Engaging our people To achieve our purpose, we need to listen to our people and make sure they understand and share our ambitions. Members of our executive team directly to employees through round tables, town hall debates, site visits and webchats. We ask people to share their views on how we’re doing as an employer through a survey twice a year. The results help us gauge how people feel about working for us and how we can give them an even better experience. Listening to our people We’ve revised our employee survey this year. The new twice-yearly Your Say survey has shorter questions that are more clearly linked to our strategy and values. Over 85,000 (80%) of our people took part in the first Your Say survey in June 2016 and more than 93,000 (86%) took part in January 2017. Our engagement outcome result stays strong at 71%, and we've seen momentum in every engagement driver category. 18 of the 20 driver items are starting to move in the right direction: the table overleaf provides a snapshot of this. Results show improvements in five of the six key categories for engagement and people in most lines of business feel better able to provide an outstanding customer experience. But we still have some
Carbon intensity (Year end 31 March) 1997(base) 2014 2015 2016 2017 CO2e/£m value added 173 36 36 32 33 CO2e/£m revenue 87 13 13 12 12 Our supply chain Our operations Customer use AND DISPOSAL of our products % End-to-end emissions 67.6% 6.7% 25.7% Source of emissions Emissions from the products and services we buy from suppliers, such as network equipment and data centre services. Emissions from the energy we use to run our networks and our buildings, and from our fleet of engineering vehicles, business travel and employees commuting to work. Emissions from the energy our customers use to power BT products in their homes or businesses, and the energy used to recycle or dispose of products when they’re no longer needed.
How we’re reducing these emissions – 180 suppliers, representing 47% of our spend, completed the CDP supply chain questionnaire. Of these, 73% have set targets to cut emissions and 66% are engaging with their own suppliers on climate change. – Suppliers participating in our Better Future Supplier Forum have saved nearly a million tonnes of carbon since 2012. – We included our climate change procurement standard in 91% of applicable new contracts this year. – Our efforts to manage climate risks across our supply chain were recognised as one of 29 companies (out of over 3,300 assessed) included in CDP’s first supplier engagement leaderboard. ––We’ve cut our energy use every year since 2008. This year we invested a further £13.1m into energy management projects. This has helped us cut consumption (exclusive of EE) by 63 GWh, a 2.7% reduction since last year. ––Worldwide, we sourced 82% of our electricity from renewable sources this year. And we’re working to achieve 100% across our operations. ––We’ve replaced a further 460 refrigerant systems with adiabatic units that cool our network equipment using water instead of greenhouse gases. ––We’re targeting the fuel efficiency of our fleet, using electric and hybrid technologies, and through our annual Green Driver competition to raise employee awareness of fuel-efficient driving. ––We promote the use of video and online meetings to cut emissions from business travel. And our liftshare service makes it easy for UK employees to cut emissions from commuting, by car sharing. ––Our design checklist helps us consider environmental criteria in the design and specification of new products and packaging. ––We work with the suppliers who make our products to look for ways to reduce their energy use and other environmental impacts. ––We also refurbish and re-use products such as mobile phones, tablets, home hubs and set-top boxes that customers return to us.
Performance in 2016/17 With the inclusion of EE's suppliers this year, emissions from our supply have increased 35% to 3.4 million tonnes, and our total expenditure has risen by over 38%. Overall, the carbon emission intensity from our procurement (ie emissions/expenditure) has marginally reduced. Despite these savings, our total energy use rose by 12.5% to 2,630 GWh due to the acquisition of EE. This contributed to a 24.7% increase in net total emissions from our operations worldwide this year, to 0.4 million tonnes. Emissions associated with use of our products (now including EE’s) decreased this year, even though we continued to extend access to connectivity and broaden our range of services. Our worldwide greenhouse gas emissions (Year ended 31 March) CO2e kt 1997(base) 2014 2015 2016 2017 CO2e kt 1,628 391 387 342 428 Supply chain emissions (breakdown of upstream Scope 3 emissions) Year ended 31 March 2013 2014 2015 2016 2017 kTonnes CO2e 2,989 3,080 2,724 2,840 3,815 Managing environmental impacts We manage environmental impacts to help us conserve natural resources, mitigate risks and comply with relevant regulations. Our environmental policy () sets out our commitment on this, and this year our environmental management systems have been certified to the international standard ISO 14001 in Belgium, Colombia, France, Germany, Ireland, Italy, the Netherlands, Spain and the UK.