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Telstra Corporate Responsibility Report 2008
 

Telstra Corporate Responsibility Report 2008

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Executive summary ...

Executive summary
Society
Key achievements in 2007/08
• Launched our landmark publication Towards a High-
Bandwidth, Low-Carbon Future: Telecommunicationsbased
Opportunities to Reduce Greenhouse Gas Emissions.
The report quantifies the possible carbon and dollar
savings that could be achieved by businesses, households
and governments by using telecommunications networks
to avoid or reduce their carbon emissions.
• Achieved a rating of 87 per cent in the 2007 Corporate
Responsibility Index. This included outstanding results
in community management (100 per cent).
• Increased Telstra’s score from 36 per cent in 2007 to 70 per
cent in the 2008 Dow Jones Sustainability Index, a global
analysis of corporate responsibility leadership. This score
is well above the industry average of 53 per cent.
• Launched the Telstra Foundation’s Spotlight on Cyber
Safety program with a commitment of $3 million over
three years to help children develop the skills to be safe
when online and using mobile phones.
• Helped deliver the SCAM Watch Fraud Fortnight awareness
campaign to over 2.7 million BigPond® customers, 550,000
Trading Post users and 40,000 employees. The campaign is
an activity of the Australasian Consumer Fraud Taskforce,
of which Telstra is an industry partner.
• Invested $4.9 billion to continue the build out of the Next G™
wireless broadband network; continued deployment of the
Telstra Next IP™ network; creation of new and advanced
business support and operating support systems; and other
investments to transform the delivery of telecommunications
services in Australia.
• Contributed $300,000 to a new research facility for
specialised radio frequency research into the possible
health impacts from exposure to electromagnetic energy.
Telstra is collaborating with Swinburne University of
Technology on this initiative.
Planned actions for 2008/09
• Improve the relevance, transparency and accessibility
of Telstra’s corporate responsibility information on
Telstra’s website.
• Conduct a review of Telstra’s human rights position
and practices to assess performance against
international standards.
• Introduce feature sections on the nowwearetalking
website to provide a platform for public discussion
and debate about the environment and the National
Broadband Network.
• Reduce paper consumption by continuing to transform
our supply chain operations to effective, electronic
business, including online drafting and execution of
contract documentation.

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    Telstra Corporate Responsibility Report 2008 Telstra Corporate Responsibility Report 2008 Presentation Transcript

    • b Corporate Responsibility Report 2008
    • 2 MessagefromourCEO 1 Approach 2 Executivesummary 2 Telstraprofile 6 CorporategovernanceatTelstra 7 Corporateresponsibilitygovernance 8 Stakeholderengagement 9 Ourmaterialissues 12 1 Societymatters 14 Influencingpublicpolicy 15 - NationalBroadbandNetwork - Climatechange - Internetsafetyandsecurity - Electromagneticenergy Socio-economiccontribution 22 - Economicimpact - Productivityandinnovation Influencingcorporate responsibilityoutcomes 26 - Suppliers - Awards 2 Communitiesmatter 28 Disasterrelief 29 Communitybusinesspartnerships 30 TelstraFoundation 30 Sponsorship 32 Volunteering 33 3 Employeesmatter 36 Buildingaworld classtalent base 37 Enhancingdiversity and opportunity 38 Providingahealthy and safe environment 42 4 Customersmatter 48 Enhancingour customers’experience 49 - Customer service commitments - Informingour customers - Customer safety and security - Customer privacy Ensuringaccessfor everyone 53 - People on lowincomes - People with disability - Ruraland regionalcustomers - Indigenouscommunities - TelstraConnected Seniors® 5 Environmentmatters 58 Engagingemployees 59 Improvingour energy efficiency 60 Managingresource efficiency and waste 62 Greenhouse gasemissions 64 Managingour land use appropriately 65 Compliance 67 Environment data 69 GlobalReporting InitiativeIndex 74 Contents
    • 1 About this report This is Telstra’s sixthannualcorporate responsibility report.Itcoversthe2007/08 financialyearfortheAustralianoperations of TelstraCorporationLimited(excluding Sensis,Telstra’sinformationandadvertising business,unless otherwisespecified). Afullaccountofthecorporateresponsibility performanceofSensiscanbefoundat www.about.sensis.com.au This reportcoversTelstra’seconomic, socialandenvironmentalcontributions andperformanceduring2007/08and is intendedtoprovidecomprehensive informationtothefullrangeof Telstra’s stakeholders. Wehavepreparedthisreportwith referencetotheGlobalReporting Initiative (GRI) SustainabilityReporting Guidelines (version 3.0)and theGRI TelecommunicationsSectorSupplement. Feedbackonthereportiswelcome. PleaseemailNancie-LeeRobinson, SeniorAdvisor,CorporateResponsibility, atcsr@team.telstra.comor participatein ouronlineforum atwww.nowwearetalking.com.au Message from our CEO Insomeway,TelstratouchesnearlyeveryAustralian,every day.Our day-to-day businessand ongoingtransformation are avital threadinAustralia’seconomicandsocialfabricandthisisaresponsibilitywetakeveryseriously.It’sattheheartofeverythingwedo. CorporateresponsibilityatTelstrastartswithmeandflowsthroughout the company.Our approach to corporate responsibility beginswithasimpleandstraight-forwardcommitmenttoprincipled decision-making.Whether it isproviding good jobs at good wages,servingtheneedsofourcustomerswithnewand innovative productsand solutions,pursuingresource efficiency acrossthe businessorplayingaroleindevelopingsolutionstothebigsocialand environmentalissuesof the day – fundamentalprinciples guidetheway. AtTelstra,weknowthatitmakesbusinesssensetoappreciate the impact of our businessdecisionson the larger community. Thereisanalignment,forexample,betweenreducingcostsand reducingthe environmentalimpact of our operations.The report commissionedbyTelstra,TowardsaHigh-Bandwidth,Low-CarbonFuture:Telecommunications-basedOpportunitiestoReduce GreenhouseGasEmissions,putssolidideasintothemarketplace about how wecan use telecommunicationsnetworks to reduce businesscostswhilealsoreducingAustralia’scarbonfootprint,most of which are achievable today. Alreadythreeyearsthroughourfive-yeartransformation,we are changingnot just our company,but the way Australianswork, playandmovearound.Ournextgenerationnetworksand services,which provide unparalleled coverage and speeds,are providing acustomerexperiencethatissimple,integratedandintuitive.We’re bringing Australians closer together.We’re improving business productivity.Andwe’reincreasingAustralia’sabilitytocompete globally. Corporateresponsibilityisintegraltoeverythingwedo.It’sabout makingprincipled decisionswith fullconsideration of alltheir implications–social,environmentalandeconomic.Thishelpsussucceed and deliver for our customersand shareholdersbecause actingresponsiblymakesgoodbusinesssense.Ithelpsusto be more efficient,increasesproductivity and makespeople proud to workforTelstra. Oursixthcorporateresponsibilityreporthighlightsourcontributions during 2007/08 and clearly sets out the actions we have plannedtobuildonoursolidperformanceinthefuture. SolTrujillo,ChiefExecutiveOfficer November2008
    • Executive summary Society Keyachievementsin2007/08 • LaunchedourlandmarkpublicationTowardsaHigh- Bandwidth,Low-CarbonFuture:Telecommunications- basedOpportunitiestoReduceGreenhouseGasEmissions. Thereportquantifiesthepossiblecarbonanddollar savingsthatcouldbeachievedbybusinesses,households andgovernmentsbyusingtelecommunicationsnetworks toavoidorreducetheircarbonemissions. • Achieveda ratingof87percentinthe2007 Corporate ResponsibilityIndex.Thisincludedoutstandingresults incommunitymanagement(100percent). • IncreasedTelstra’sscorefrom36percentin 2007 to70 per centinthe2008 Dow JonesSustainabilityIndex,aglobal analysisofcorporateresponsibilityleadership.Thisscore iswellabovetheindustryaverageof53percent. • Launched theTelstraFoundation’sSpotlightonCyber Safetyprogramwithacommitmentof$3 millionover threeyearstohelpchildrendeveloptheskillstobesafe whenonlineandusingmobilephones. • HelpeddelivertheSCAM Watch FraudFortnightawareness campaigntoover2.7 millionBigPond®customers,550,000 TradingPostusersand40,000employees.Thecampaign is anactivityoftheAustralasianConsumerFraudTaskforce, ofwhichTelstraisanindustrypartner. • Invested$4.9billiontocontinuethebuildoutoftheNext G™ wireless broadband network;continued deployment of the Telstra Next IP™network;creation of newand advanced business support and operating support systems;and other investmentstotransformthedeliveryoftelecommunications servicesin Australia. • Contributed $300,000 to anewresearch facility for specialised radio frequency research into the possible health impactsfromexposure to electromagneticenergy. Telstraiscollaboratingwith Swinburne University of Technology on thisinitiative. Planned actionsfor 2008/09 • Improve the relevance,transparency and accessibility of Telstra’s corporate responsibility information on Telstra’s website. • Conduct a review of Telstra’s human rights position and practices to assess performance against international standards. • Introduce feature sections on the nowwearetalking website to provide aplatform for publicdiscussion and debate about the environment and the National Broadband Network. • Reduce paper consumption by continuingto transform our supply chain operations to effective,electronic business, including online drafting and execution of contract documentation. Approach
    • 3 Community Keyachievements in2007/08 • Telstra’s investmentincommunityactivitieswas valued at$29.2 millionbytheLondonBenchmarkingGroup. Thiscompareswith$18.8millioninthepreviousyear. • Provided $3.9 million throughtheTelstraFoundation tomorethan667 projectstohelpconnectchildrenand young peopletotheircommunities. • Provideddomesticdisasterreliefservicestocustomers affectedby:bush fires inWillungainSA,andin Parkerville andStoneville inWA;floodsinthecentralandnorth coastofNSW;andfloodsinEmerald,Rockhampton, Mackay,Charleville,GoldCoast,Beenleigh,Jimboomba, Beaudesert,Rathdowney,Boonah,Clifton,Allora, WarwickandKillarney inQld. • Provided disaster relieftocustomersaffectedby cyclone Nargis inMyanmar (Burma)andtheearthquakein SichuanProvinceinChina. • Committed$750,000throughtheTelstraFoundation tosupportAbracadabra,auniqueinteractiveliteracy softwaretoolthatwillhelpIndigenousprimaryschool childrenimprove theirliteracyskills.Abracadabrais a projectofCharles DarwinUniversity. • Announced anewsponsorshippartnershipwithWWF Australia toproducea seriesofcommunityservice announcementstohighlighttheendangermentof manyAustraliannativeanimals. • PilotedtheTelstra FoundationCommunityLeadership program,linking Telstraexecutiveswithnon-profitleaders ina 12monthmentoringrelationshiptohelpbuildthe capacityofcommunityorganisations. Plannedactionsfor2008/09 • To developandpilotanemployeematchedgivingprogram todonatefundstocommunityorganisationsnominated byTelstraemployees. • Toprovideover$3.5 millionin grantsthroughtheTelstra Foundationtohelpcommunityorganisationsconnect childrenandyoungpeopletotheircommunities. Employees Keyachievementsin2007/08 • Achieved74percentemployeeengagement,indicating theextenttowhichemployeesvalue,enjoyandbelievein Telstraandwhattheydo.Thisresultisbasedonthe 2008 TelstraEmployeeEngagementSurveywithan84 per cent responserate. • Investedover$75 millioninlearninganddevelopment forouremployees,representingan investmentofaround $1,600peremployee. • Employeescompleted573,763onlinelearningcourses throughLearn.Achieve,and6,500 employeesparticipated inFrontlineLeadershipprograms. • Developed252newjob-specifictrainingcoursesthrough theTelstraLearningAcademy. • ConductedTelstra’sinauguralwomen’sconference, Stand.Out,whichwasattendedby150womenand focusedonperformance,careerdevelopmentand the advancementofwomenatTelstra. • PilotedtheMyMentorprogramforTelstrawomento increasestrategicbusinessskills.Basedonoutstanding feedbackfromthe21participantsoftheinitialcourse, theprogramwasrolledouttoover440womenacross the organisation. • Awarded an Excellence in Auslan Interpreting Award (private sector organisation category) bythe Australian Sign Language Interpreters’Association to publicly recognise Telstra’s consistent support for working with interpretersand long-standingcommitment to customers, shareholdersand employeeswho are deaf. Planned actionsfor 2008/09 • Increase the proportion of women inmiddle and senior management to 30 per cent. • Increase Indigenous employment opportunities by 25 per cent bythe end of December 2009 as part of Telstra’sIndigenousAction Plan 2008-11. • Maintain the highest (Comcare Tier 3) rating across all Health,Safety and Environment categories. • Achieve aminimum of 10 per cent employee participation inanew online Health Risk Appraisal byAugust 2009 to improve employee understandingof health risk factors. Approach
    • 4 Customers Keyachievements in2007/08 • Assistedmorethanonemillionlow-incomecustomers toconnectormaintaintheircommunicationsservices. Thetotalbenefitprovidedwasinexcessof$200million. • LaunchedTelstra ConnectedSeniors®in August2007with over$750,000 ofgrantfundingprovidedto110community organisations tohelpolderAustralianslearntousemobile andinternettechnology. • Closed theCDMAnetworkon28April2008andcompleted themigration (commencedinOctober 2006)ofcustomers totheNextG™network,providingmoreadvancedthird generationmobiletechnology. • Openedthelargeststate-of-the-artinteractive telecommunicationsstoreinAustralia,T[life]™in Melbourne inJune 2008afterthesuccess ofT[life]™ Sydney,whichopenedinNovember2007. • Telstra EnterpriseandGovernmentCustomerCarewas awardedcertificationtotheInternationalCustomerService StandardbytheCustomerServiceInstituteofAustralia, demonstrating thatourorganisationhasapassionfor customerexcellenceandtheprocessestodeliver. • Receivedthe2007 CorporateCommunityPartnership Awardfrom theCountryAwarenessNetworkVictoria, recognising Telstra’sexceptionalcommitmenttoVictoria’s ruraland regional communitiesthroughour supportand assistancetoconsumersand clientsaffectedby HIV/AIDS orHepatitis C. Plannedactionsfor2008/09 • ExtendtheTelstraBillAssistanceProgramtocovermobile and internetbillstorecognisethechangingnatureof communicationsusageamonglow-incomeAustralians. • Provideaweb-basedinquiryformforinformationabout accessiblefeaturesofNextG™mobilehandsetstoenable peoplewithadisabilitytochoosetherightmobilehandset fortheirneeds. • Buildonthesuccess ofourworldclass T[life]™storesby openingorrefreshingmorethan80 T[life]™storesacross Australia,toprovidearetailexperiencelikeno otherfor ourcustomers. • DeployenhancedHSPA(HighSpeedPacketAccess Plus) asanationalsoftwareupgradetoincreasepeak network downlinkspeedsacrossournationalNextG™network fromthecurrent14.4Mbps1 to21Mbpsbytheendof2008. • WithsupportfromtheNTGovernmentandRioTintoAlcan, Telstrawillrollout800kmsoffibretoconnectninenorthern ArnhemLandIndigenouscommunitiesandthetownship ofNhulunbuytothenation’sfibreopticbackbone. Environment Key achievementsin 2007/08 • Saved25,332tonnesCO2equivalentthankstoprojects targetingenergyefficiencyandrecyclingofpaper, cardboardandwood–comparabletothegreenhouse gasemissionsfrom1,800averageAustralianhouseholds forayear. • Reduced the consumption of office paper by 35,900 reams, a14 per cent reduction from 2006/07.This represents a decrease from7.2 to 6.5 reamsper employee. • Reduced the number of vehicles inour fleet by 17 per cent with acorresponding reduction in fleet energy use of 16.8 per cent. • Operated 10,265 solar powered sites,includingexchanges, radio terminals,smallrepeater stationsand pay phones. Telstraisone of Australia’slargest usersof solar power. • EstablishedtheClimateChangeReviewGrouptomonitor andpromoteTelstra’sresourceconservationprograms and activities. • Established aPackagingInnovation Group to improve efficienciesand reduce the environmental impact of our packaging. • Completed aLife Cycle Assessment to determine the relative environmentalimpactsof online and conventionalpaper billing. 1 Peaknetworkdownlinkspeed.Actualcustomerdownloadspeeds willbelessandwillvaryduetotrafficloading,distancefromthecell, localconditions,hardware,softwareandotherfactors. Approach
    • 5 Plannedactionsfor2008/09 • Calculatethecarbonfootprintsofallbusiness units andcorporategroups. • Determinethecarbonintensity(tonnesofCO2e/unit of service)ofTelstra’sEnterpriseandGovernment service offerings. • Increase the2009 EmployeeEngagementSurveyscore for‘environmentresponsibility’. • Completea studyonthehydrogenfuelcellfacility andsolarpanelsinstalledatourMelbourneheadquarters toassess theirpotentialuseinTelstra’snetwork andbuildings. • EnhanceTelstra’s drivereducationprogramwith anawareness programtoencourageourfleetdrivers toadoptgreendrivingtechniquestoreducefuel consumptionandCO2emissions. Approach Telstra touchesnearly everyAustralian, everyday
    • 6 Telstra profile Telstra is the only communications company in Australia that canprovide atruly integrated telecommunications experience acrossfixed line,mobiles,broadband,information, transactions,search,and pay TV.We have one of the best known brands in the country and provide 9.4 million Australian fixed line and more than 9.3 million mobile services,including 4.4 million 3Gservices. Telstraprovides: • basic accessservices to most homes and businesses in Australia; • localand longdistance telephone callsin Australia, and internationalcallsto and fromAustralia; • mobile telecommunicationsservices; • broadband accessand content; • acomprehensive range of dataand internet services (including through BigPond,Australia’s leading internet service provider); • management of business customers’IT and/or telecommunicationsservices; • wholesale services to other carriers,carriage service providersand Internet Service Providers; • advertising,search and information services (through Sensis®,Australia’s leading directory and search company);and • cable distribution servicesfor FOXTEL’scable subscription television services. Performanceindicator 06/07 07/08 Financial Salesrevenue $23.7billion $24.7billion EBIT $5.8billion $6.2billion Profitaftertaxandminorityinterests $3.3billion $3.7billion Ordinarydividends(centspershare) 28 28 Socio-economic Totalworkforce 47,840 46,649 Totaldomesticworkforce 35,706 33,982 Wagesandsalaries $4billion $4.2billion Local,stateandcommonwealthtaxes $1.8billion $1.7billion Dividendstoshareholders $3.4billion $3.4billion Accruedcapitalexpenditure $5.9billion $4.9billion Community LondonBenchmarkingGroup(LBG)measureofcommunityinvestment $18.8million $29.2million Employees Employeeengagement 73% 74% Womeninmanagementroles 25.8% 24.6% Lost timeinjuriesfrequencyrate(permillionhoursworked) 2.14 2.54 Highlyeffective/effectiveHealthSafety&Environment(HS&E)audits 88% 71% Learning&developmentinvestment $60million $75million Learning&developmentinvestmentperemployee $1,500 $1,626 Keyperformanceindicators Approach
    • 7 Performanceindicator 06/07 07/08 Environment Greenhousegasemissions(tonnesCO2e) 1,390,306 1,500,803 Greenhousegasemissions(tonnesCO2e/$millionrevenue) includingunmeteredsites N/A 60.4 Greenhousegasemissions(tonnesCO2e/$millionrevenue) excludingunmeteredsites 58.7 57.8 Greenhousegasemissionstotalsavings(tonnesCO2e) 173,998 173,686 Totalwasterecycled(tonnes) 33,266 32,981 Wasterecycled 65% 69% TotalenergyUse(GJ) 5,848,601 6,064,687 TotalenergyUse(GJ)/$millionrevenue 247.1 244.3 Volumeofofficepaper(reams) 256,774 220,856 Volumeofpaper(reams)peremployee 7.2 6.5 Watersavings(kilolitres) 87,318 52,019 Telstraowns 50 percentofFOXTEL,anditsinternational businesses include: • CSLNew World,one ofHongKong’sleadingmobile operators; • TelstraClear Limited,thesecondlargestfullservice carrierinNewZealand; • ReachLimited,a providerofglobalconnectivityand international voiceand satelliteservices;and • majoritystakes in SouFunHoldingsLimited,a leading realestateandfurnishingswebsiteandNorstarMedia andAutohome/PCPop,twoChineseinternetbusinesses operating autoanddigitaldevicesites. Corporate governance at Telstra The Telstra BoardhasdeterminedthatTelstra’scorporate objectiveistocreatelong-termshareholdervaluethrough providing integratedcommunication,informationand entertainmentservices,andcustomerfocusedsolutions. The Telstra Boardis committedtoexcellencein corporate governanceandtheenhancementofitsshareholders’ interests.Ourmain corporategovernanceand Board practicesaredescribed inourAnnualReport,available atwww.telstra.com.au/abouttelstra/investor Weregularly review andupdateourcorporategovernance practices.TheBoardevaluatesand,whereappropriate, implementsrelevant proposalswiththeaimofensuring that wecontinuetodemonstrateourcommitmenttogood corporate governance,havingregardtodevelopmentsin marketpracticeandregulation. WecomplywiththeASXCorporateGovernanceCouncil’s PrinciplesofGoodCorporateGovernanceandBestPractice RecommendationsreleasedinMarch2003.Followinga reviewofTelstra’sgovernanceframeworkandinlight ofthereleaseoftherevisedASX CorporateGovernance PrinciplesandRecommendations(2nded)(RevisedPrinciples &Recommendations),theTelstraBoardmadethedecision to adopttheRevisedPrinciples&Recommendationsforthe2008 financialyear,aheadofthetimethattheybecomemandatory, asencouragedbytheASXCorporateGovernanceCouncil. The Telstra Values provide the most fundamental direction onwhat type of company weaspire to be,and what type of behaviour we regard asappropriate.Asa values-driven company wego beyond simply complying with minimum standards of personal conduct.Our goalisto make every decision and every action one that we can be proud of. Keyperformanceindicatorscontinued Approach
    • 8 Corporate responsibility governance AtTelstra,ourcommitmentto corporateresponsibilitybegins with asimple andstraight-forwardcommitmenttoprincipled decision-making inallthatwedo. The Telstra Values,Telstra’sBusinessPrinciplesand CompanyPolicies,including theCodeofConduct,setout the practices,principlesand standardsofbehaviourTelstra expectsemployees and contractorstoadoptin performing their work.Togethertheyreflectourobligationsand underpin thewayweworkwithourcustomers,ourshareholders, our colleagues,theregulatorybodieswedealwith, our suppliersandstakeholdersinthecommunity. DavidQuilty,GroupManagingDirector,PublicPolicy& Communications,has responsibilityforTelstra’sCorporate ResponsibilityBusinessPrinciple,whichstatesthat, from aprincipledperspective,ourprimarycorporate responsibilitiesareto: • providegoodjobsatgoodwages; • servetheneedsofourcustomers; • increaseshareholdervalueandprotectshareholderinterests; • provide good stewardshipoftheenvironment–first and foremostbyconservation(ie,byincreasingefficiency inthewayweuseresources),reducing operatingcosts andminimising ourenvironmentalfootprint; • contributeresources–people,money,technology, products andservices–tosupportthecommunitiesin whichweoperateandtheneedsofthelargersociety;and • advancethenationalinterestbystrengtheningthecapacity ofthenation’s telecommunicationsnervecentre,operated by Telstra,andprovidingthenationafoundationfor economic growth,productivityimprovement,sustainable prosperity,andglobalcompetitiveadvantage. Allmanagersandsupervisorsarerequiredtotakeall reasonablestepstoensurethatemployeesandcontractors undertheirsupervisionhaveaccessto,areawareof,and complywith,allrelevantTelstraBusinessPrinciplesand the relatedcompanypolicies.Telstraexpectsitsmanagersand supervisorstofosteraworkenvironmentthatencourages ethicalbehaviourandcompliance. As such,corporateresponsibilityispartofourdaytoday activities.Management,supervisorsandstaffaresupported bytheCorporateResponsibilityandCommunityInvestment team,whichprovidestheoperationalmanagementand coordinationofcorporateresponsibilityactivitiesand communications.In addition,workinggroupsareestablished toaddresskeysocialandenvironmentalissuesastheyarise. Forexample,in 2007/08 theClimateChangeReviewGroupwas establishedtoensurea coordinatedapproachtomanaging climatechangeissues. Reportingandbenchmarkingperformance Telstraiscommittedtoimprovingourcorporateresponsibility performance.Weparticipateinexternalsurveystobenchmark ourperformanceandproduceanannualreporttohighlight ourachievementsandchallenges. In 2007/08,TelstraparticipatedintheCorporateResponsibility Index,achievingaratingof87percent,withoutstanding resultsincommunitymanagement(100 percent).Wewill betakingaleaveofabsencein2008/09 inordertofocuson implementingstrategiestofurtherimproveourperformance. In2008,wealsocompletedasubmissiontotheDowJones SustainabilityIndexandachievedaratingof70percent. Thisindexidentifiescompaniesthatleadpeersincreating long-termshareholdervalueandassessesabilitytomanage riskandleverageupsideacrosstheeconomic,socialand environmentalagenda. To measure our community contribution,Telstra participated in the London Benchmarking Group (LBG) process for the second time in2008.LBG Australia/New Zealand isa business membership organisation that providesaframework for membersto measure and benchmark their corporate community contribution. For 2007/08,Telstra’s corporate community contribution wasvalued at$29.2 million,building on the contribution of $18.8 million during2006/07.The increase isattributed to the inclusion this year of a wider range of Telstra’s community investment activities,the one-off contributions to support victims of cyclone Nargis in Myanmar and the earthquake in the Sichuan province of China,and Telstra’s voluntary contributionsin the lead up to World Youth Day 2008. Telstra has reported annually on its corporate responsibility performance since 2003 through its Corporate Responsibility Reports.These reportscan be accessed on our website at www.telstra.com.au/abouttelstra/csr/reports.cfmalong with summary reportsof CRI,DJSIand LBGresults. 2003 2004 2005 2007 Corporate Responsibility Indexresults 88.49% 90.21% 88.6% 87% Approach
    • 9 Stakeholder engagement AsacompanythattouchesthelivesofnearlyeveryAustralianeveryday,Telstrahasawiderangeofstakeholdergroupsand along historyofengagingwiththem.Consultationanddialoguewithkeystakeholdergroupshelpstogatherinputandideas, inform ourdecision making,strengthenourrelationshipsandbuildtrust.Telstramakesa genuineefforttoengagewithand understand itskeystakeholders,throughbothformalandinformalmechanisms.Webelievethatengagementand consultation helpsus tobettermeetourcustomers’needs,improvescustomerloyalty,enhancesemployeesatisfaction,buildsbroader communitysupportandultimatelystrengthensshareholdervalue. Stakeholder Interestsandconcerns Engagementmethods All Australians Australiansareinterestedinthe fullrangeofTelstra’sactivities nowwearetalking.com.au–onlineforumfor peopletobecomeinvolvedandhaveasay on issuesaffecting allAustraliansandthetelecommunicationsindustry www.telstra.com–Telstra’scorporatewebsiteprovidesinformation for customers,shareholdersandother interestedmembersofthepubliconthelatestactivitiesatTelstra.Includespublicreports Communities Telstraoperatesincommunitiesacross themetropolitan,regionalandremote areasofAustralia.Ourcommunities includenon-governmentorganisations Communities areconcernedabout accesstoservicesandtheimpactof ourbusinessonlocalcommunities • TelstraCountryWideRegionalConsultativeForumhelpstoidentify thecommunicationsissuesof importanceinregionalAustralia • Ourmobilephonebasestationsitingconsultation processeshelpTelstraoperateresponsibly in designing, operatingandmanagingmobilephonebasestationsandtominimisetheir impacton thecommunity • TelstraFoundationengageswithcommunity organisationson issuesimpactingthelivesofchildren and youngpeoplethroughitsphilanthropicgrantsprogram Customers Ourcustomersincluderesidential consumers,smalltomediumenterprises andlargecompaniesandorganisations andgovernment Our customers are interested in the quality,affordability and accessibility of our products and services,and the privacy and security of their personal information and services TelstraDisabilityForumandDisability EquipmentProgramConsumer Advisory Groupprovidemechanisms forconsultationonourdisabilityaction plan TelstraConsumerConsultativeCouncilandCreditManagementWorkingGroupfacilitatediscussion on issues thateffectresidentialcustomers LowIncomeMeasuresAssessmentCommitteeprovidesadviceon theongoingeffectivenessofTelstra’s low-incomepackage T[life]™shops,CustomerExperienceCentre,TelstraMentors,andtheCommunity Advocacy Programprovide opportunitiesforustoassistourcustomerstomeettheir needs Weundertakeongoingmarketingandresearch tohelpusunderstandwhatour customerswant Approach
    • 10 Stakeholder Interestsandconcerns Engagementmethods Employees Telstra’sworkforceislargeand diversewith33,982employees in Australia Our employees have a broad range of concerns,including working conditions, development opportunities and health and safety,as well as a wide range of interests in issues affecting their local communities and environments • EmployeeEngagementSurveyprovidesallemployeestheopportunity toexpresstheir views abouttheirjobs,thecompanyandtheir workingenvironment • YabberisaTelstra intranetsitethatprovides employees an opportunity toshare their personal stories – triumphs,challengesandpassions–with allstaff • EmployeeengagementopportunitiesrelatingtosocialandenvironmentalissuesincludetheDiversity ChampionNetwork,VirtualWomen’sNetwork andGreen.Challenge@Telstra Government Ourgovernmentstakeholders areatlocal,stateandnational levels,fromMinistersandleaders to departmentstaff Telstracommunicatesregularly withgovernmentsonarangeof commercial,policy,regulatory andothermattersintheinterests ofitsshareholders,customers andemployees • Telstra’sdealingswithgovernmentsareconductedopenly andhonestly • Constructiverelationshipsarebuiltandmaintainedacrossalllevelsofgovernmentby our senior leadership, Telstra’sGovernmentandCorporateRelationsteamandTelstraCountry Wide • Wearerequiredtoworkwithinrelevantgovernmentlegislativeframeworksandtoreportour compliance and performance • OurRegulatoryAffairsteammanagesTelstra’srelationshipwith statutory regulatorsandindustry bodies • Telstraparticipatesinregularforumsandselectedeventswith local,stateandFederalgovernmentagencies • Telstra’sEnterpriseandGovernmentbusinessunitworkswith governmentcustomerstodevelopanddeliver accesstoworld-classinformation andcommunication solutions Industry ThesestakeholdersincludeInformation andCommunicationTechnology(ICT)and telecommunicationsspecificassociations, as wellassector-specificassociations Industrystakeholdersareinterestedin issuesimpactingthetelecommunications industry,including regulation,market trends,consumerprotection,and technologyandservicedevelopments • TelstraisamemberofthekeyICT industry groups,includingtheCommunicationsAlliance,theAustralian MobileTelecommunicationsAssociation,theAustralian Information IndustriesAssociation,theInternet IndustryAssociation,andtheAustralian InteractiveMediaIndustry Association • TelstraisamemberoftheMobileCarriersForumthatdealsspecifically with socialandenvironmentalissues withinpolicy,regulatoryandoperationalenvironmentsassociatedwith thedeploymentandoperation of mobilephonenetworks • Telstra’sIndustryAnalystRelationsfunction strengthensdomesticandglobalrelationshipswith specialist analystsonICTindustriesandmarkets • TelstraisamemberoftheAustralian Industry Group,Australia’smajor businesslobby group • TelstraisamemberoftheAustralianServicesRoundtable,thepeaklobbygroupfortheAustralianservicessector Approach
    • 11 Stakeholder Interestsandconcerns Engagementmethods Investmentcommunity Thisstakeholdergroupincludes institutionalinvestorsand sell-sideanalysts Investors andanalysts areconcerned with therisk inherentinand return providedbytheirinvestment,and theabilityof thecompanytomeet itsobjectives • OurannualInvestorDayisanopportunity for Telstratoprovideadetailedupdatetothefinancialmarkets ontheperformanceofthevariousbusinessunitsandon thecompany’stransformation • TheInvestorCentreatwww.telstra.com.au/abouttelstra/investorisadedicatedresourcefor shareholders andpotentialinvestors • TheInvestorRelationsunitregularly engageswith investorsandanalysts,andco-ordinatesmeetings for theinvestmentcommunitywith senior management Media Includesrepresentativesfrom print,radio,TVandonlinemedia ThemediareportsonTelstramore thananyotherbusinessor organisationinAustralia • Telstraengagesregularlywiththe mediathrough our mediaspokespeople,corporateaffairsmanagers, generalmanagersandotherappropriateofficerswithin thecompany toprovideinformation thatisin thepublicinterest Shareholders Telstrahas1.4 millionshareholders Shareholders areinterestedinfinancial returns,company performance and governanceissues • Telstravaluesadirect,two-waydialoguewith shareholdersandbelievesitisimportantnotonly toprovide relevantinformationquicklyandefficiently,butalsotolisten,understandshareholders’perspectivesand respondtotheirfeedback • Telstrakeepsshareholders informed through Annual General Meetings,an annual report and bi-annual shareholderupdates • TheInvestorCentreatwww.telstra.com.au/abouttelstra/investorisadedicatedresourcefor shareholders providinginformationaboutoursharepriceandfinancialperformance,presentationsandannualreports Suppliers Telstraengageswitharound 8,000supplierseachyearwith a totalspendaround$11billion Suppliersareinterestedin secure andstablerelationshipswithTelstra • Telstraregularlyengageswithsuppliersthroughoutandafter thesourcingprocess.Our vendor managers monitorand manageTelstra’scommercial relationship with its suppliers andaddressdelivery,quality,social and environmentalissues • TheSupplyingtoTelstrawebsiteatwww.telstra.com.au/supplying_to_telstra providespracticaladvice toprospectiveandcurrentsupplierson supplyingtoTelstra Approach
    • 12 Our material issues In determiningour materialissues,Telstrahasconsidered the significant economic,environmental and social impacts of our businessthat may affect our value,operations, reputation and longevity.We have taken into account the followingkey internaland externalfactors: • businessstrategy and impact of Telstra’stransformation; • Telstra’scompany values,code of conduct,business principlesand corporate responsibility principles; • core competenciesof Telstra; • significant risksto the company and criticalfactorsfor ensuringTelstra’ssuccess; • key future challengesfor our industry; • concernsraised by our stakeholdersthrough the range of mechanismswe have in place for stakeholder engagement; • relevant laws and regulations,for example the proposed National Greenhouse and Energy Reporting System and the Emissions Trading Scheme,and the newForward with Fairnessindustrialrelationslegislation; • key future challenges for our society as identified by social and environmental experts,governments and grassrootscommunity organisations;and • sustainability context,including the Global Reporting Initiative,MillenniumGoals,and United Nations Global Compact. Telstra’sCEOSolTrujilloandNationalEnergyManagerAllanGontarview the newlyinstalledhydrogenfuelcellandsolarpanelinJune2008. Approach
    • 13 Issue Mainstakeholdersaffected Impact KeyelementsofTelstra’sresponse Seepages Climate change Customers Shareholders Communities Industry Telstrahasa significantopportunitytocontribute constructivelytoreducethecarbonintensityofsociety throughtelecommunicationsproductsandservices Telstraisspreadingthemessagethrough our landmark publication, TowardsaHigh-Bandwidth,Low-CarbonFuture:Telecommunications-based OpportunitiestoReduceGreenhouseGasEmissions,andby developing offeringsthathelpour customersreducetheir carbon emissions 16 Extending accessto communications Customers Shareholders Communities Industry Government Deliveringanewhigh-speedNationalBroadbandNetwork acrossAustraliaisoneofthemostsignificantcontributions Telstracouldmaketothecountry’seconomicdevelopment, socialinclusionandglobalcompetitiveness Telstra’scommitmenttoitsshareholdersandthewider community hasunderpinned a passionate and targeted BroadbandAustraliaCampaign 15 Regulatory environment Customers Shareholders Communities Industry Government TheregulatoryenvironmentcontinuestoimpedeTelstra’s abilitytoinvestconfidentlyinnewtechnologyandtodeploy advancedservicestoallAustralians Weengagewith governmentandregulatorstolobby for aregulatory environmentthatenhancesthepotentialfor investmenttoprovide Australiawith thetechnology tocompeteinternationally 15 Energy efficiency Customers Shareholders Communities Employees LikeallAustralianbusinesses,Telstrafacesuncertainty abouttheimpactonourbusinessandonthewidereconomy ofthe proposedCarbonPollution ReductionSchemeand relatedpolicies Wearecommittedtoimprovingour energy efficiency acrossour business,supply chain andcustomer base 58 Employee relationships Employees Contractors ThesuccessofTelstra’stransformationandoureconomic sustainabilityreliesonstrongemployeerelationships Wearecommittedtocreatingasafeandengagingworking environmentfor our people 36 Humanrights Employees Supplychain Customers Communities Thereisgrowinginterestintheroleofbusinessesinadvancing humanrights.ConsiderationofhumanrightsinTelstra’sbusiness decisionsand operationshas thepotentialtomanageriskand realisenewbusinessopportunities Telstraaddresseshuman rightsconcernsin our workforce, productsandservicesandsupply chain 26&38 Approach
    • 1Society matters We believe that what is good for Australia,is good for Telstra.We take our corporate responsibility seriously. Phil Burgess,outgoing Group Managing Director,Public Policy & Communications Businessenterprisessignificantlyimpactsocietyinwaysthat reachwellbeyondthecommunitysphere.Asthe principal wealth-creatinginstitutionsofoursociety,businessandthe privatesectormustplayapivotalroleinshapinganation’ssocial, economicandenvironmentalpoliciesandcontributingtoprogress andprosperityineverysphere –fromtheartsandstrong civic institutionstoeconomicdevelopmentandtaxpolicy. Considertheeconomicdimensionofcorporateresponsibility. Telstra’smostimportantachievementoverthepastyear isto providejobstoover46,000people,paying$4.2billioninsalaries andwages.Wealsopaid$3.4billionindividendstoshareholders; paidover$1.7billioninCommonwealth,stateandlocal taxes; purchasedmorethan$11billioningoodsandservicesfrom around8,000 suppliers,manyofthemsmallandmedium-sized businessesthatprovidejobs,taxesandwealthtolocal communities;andinvestedseveralbilliondollarsinnetwork maintenanceandimprovements–includingtwo high-speed nextgenerationnetworks.Whenyoustopandthinkaboutit,the economicsofTelstra’soperationhaveasignificantsocialimpact. Itisalsoimportantthatcorporationsseekopportunitiesto advancethenationalinterest.ForTelstrathismeansnotjust complyingwithlawsandregulationsbutalsoadvocatingfor reformwherereformisneeded,strengtheningthecapacity of thenation’stelecommunicationsnervecentreand,through this,providingthenationwithafoundationforeconomic growth,productivityimprovement,increasedprosperity, andglobalcompetitiveadvantage. AtTelstra,we havea 21st century vision for Australia:to advance the economic,social,and commercial interests of people,business and communities inAustralia by maximisingthe benefitsof digitaltechnologies.Already, wehave delivered the Next G™wireless broadband network and we are eager to provide a high-speed fibre-based NationalBroadband Network for the country. As Australia’s largest telecommunicationscompany,we are well placed to have a measurable and positive impact on the nation’s well-being and its social,economic and commercial performance.Businesses of all sizes are using Telstra’s next generation networksin innovative waysto save time and fuel, and toincrease productivity.People and communities are usingTelstranetworksto connect to each other and the outside world and to reduce the tyranny of distance –a bigissue for Australia because connectivity isthe primary driver of political stability,economicprosperity,and socialmobility. Because we believe in astrongcivicorder,we believe business engagement in issuesof national importance is essential to ahealthy and resilient society.Telstra sees this engagement asacorporate responsibility.We engage on key socialand environmental issues that challenge our nation,suchas climate change,cyber-security and improvements in the way we deliver health and education servicesto the public. We also provide apublic forum for education and dialogue about the impact of telecommunicationson society with our nowwearetalkingwebsite.
    • 15 Telstra’s primary socialresponsibilityasabusinessenterprise istoprosperand innovate.Itmakesgoodbusinesssenseto measurethefullimpactofourbusinessdecisionsonthelarger society,toidentifywayswecanimprove,andtocontribute positively toAustralia’s futuredevelopment–becausewe believethatwhatis goodforAustraliaisalsogoodforTelstra. Influencing public policy Webelieve oneofthegreatstrengthsofdemocraticsocietiesis that theyprovidea healthyarenaforvigorousdebatebetween the publicandprivatesectorsonimportantnationalmatters. That’s whyTelstra participatesindebateson issuesthatimpact our business,as wellasoureconomicandsocialcontribution. NationalBroadbandNetwork Telstrabelieves thatdeliveringa newhigh-speedbroadband networkacrossAustraliais oneofthemostsignificant contributions wecanmaketothecountry’seconomic development,socialequityandglobalcompetitiveness. ANational Broadband Network(NBN)willallowAustralian consumersand businesses tousenewapplicationsand services being developedhereandaroundtheworld.Theseservices canimproveaccess tohealthcare,education,publicsafety, onlinemedia and governmentandbusinessinformation andservices,especiallyforruralandregionalAustralians. Webegan withour NextG™wirelessbroadbandnetwork,and havebeenplanningtobuildanNBNforoverthreeyears.Justas Telstrahas beenthecompanytodelivertelecommunications throughout Australia forover100years,we areready tobuild thisnetwork,as long asitmakesbusinesssensetodoso. Amassive,high-risk investmentisnecessaryfor theNBN,but the currentregulatoryregimeunderminesthepotentialfor investment byleavingthedooropentotheregulator,the AustralianCompetitionandConsumerCommission(ACCC), to shiftthegoalpostsafterthenetworkhasbeenbuilt. Australia needsa paradigmshiftinitsregulatoryenvironment ifitistoencouragetheinvestmentrequiredtogettheNBNbuilt. Telstra hasbeenworking towardsthis,and atthesametime pursuingreformstoPartXICof theTradePracticesActthat arecurrentlyprovidingawiderdisincentivetoinvestment. AspartoftheNBNdiscussion,Telstraisalsoadvocatingfor a thoroughexaminationofthevariousregulationsthathave asocialpolicyimpact,toensuretheobligationsofnetwork providersarefullycostedandresponsiblyassigned. In2007/08,Telstrachallengedthecurrentextentofregulation throughseveralmajorexemptionapplicationsmadetothe ACCC.Theapplicationsaddressedregulatoryconstraintsthat currentlyhinder,orputat risk,afairandcompetitiveoperating orindustryenvironment.Forexample: • Telstra’ssubmissiontotheNBNregulatoryreview challengedconventionalregulatorypolicyandoutlined ameansthroughwhichamulti-billiondollarinvestment innextgenerationaccesscouldproceed; • we advancedthecase toputfundingoftheUniversal ServiceObligation(USO)onamoresustainablefooting. Telstra’ssubmissiontotheUSO reviewproposednew modelstomoreaccuratelyestimatethecostofrural, residential,businessandpayphoneservicestobetterargue forenhancedfundingforruralandremoteservices;and • TelstrarolledoutADSL2+broadbandtechnologytoa further907 exchangesthatservea totalof2.4 million premisesaftertheFederalGovernmentsupportedthe positionthattherewasno compellingcase fordeclaring accesstoADSL2+services. BroadbandAustraliaCampaign Telstra’scommitmenttoitsshareholdersandthewider communityhasunderpinneda passionateandtargeted campaigntoeducate,mobiliseandinfluence,through democraticprocesses,thedecisionsthattheFederal Governmentmakesaboutpublicpolicy,andtoshiftthe regulatoryburdenonTelstra. PriortoourBroadbandAustraliaCampaign,verylittle informationabouttheimpactofregulationson Telstra andthetelecommunicationsindustryhadbeenprovided toconsumersandshareholders,despitethesignificant implicationsoftheseissuesforthenation. By enlargingthe arenaof discourse to involve shareholders, opinion leaders and the general public,Telstra shifted the discussions from behind closed doors and the specialist language of regulators,lawyersand economists. EstablishedinFebruary2007,ourBroadbandAustraliaCampaign continued to capture the support of staff,Telstrashareholders and members of the publicwho rallied behind our call for a nationalcommitment to buildinganewhigh-speed,national broadband network. Morethan11,000peoplesignedupasTelstraActiveSupportersvia our website,www.nowwearetalking.com.au.The site featured thelatestWeb2.0onlineactivismtoolsthatgavesupportersand thousands of other Australians information and the means to allowtheir voice to be heard in the debate on broadband issues. Achievementsin 2007/08 included: • more than 18,000 people put themselves‘on the map’ callingfor high-speed broadband; • morethan7,000peopleusednowwearetalkingtosendemails to localMPsand/or the Minister for Communications;and • almost4,000peoplesentemailstotheChairmanoftheACCC. We achieved our aim to elevate high-speed broadband to a first-tier publicpolicy issue inAustralia and asacentral issue in the November 2007 Federal election.The Australian Labor Party’s commitment to deliver just such anetwork wasa key policy position. The newFederal Labor Government re-named the Communications Minister’sportfolio to the Minister for Broadband,Communications and the Digital Economy,and commenced atender processfor afibre-to-the-node network to deliver high-speed broadband to 98 per cent of Australians. In 2007/08,TelstraActive Supportersalso voiced their protest to the FederalLiberalGovernment awarding$958 million of taxpayer’sfunds to the SingTel Optus and Elders joint venture OPEL.The decision was subsequently overturned by the new FederalLabor Government in April2008. 1.Society matters
    • 16 1.Society matters nowwearetalking SinceDecember2005,Telstra’snowwearetalkingwebsite, www.nowwearetalking.com.au,hasprovidedaforum for publiceducationanddialogueabouttheimpactof telecommunications onsociety.Theinitiativeisrepresentative of howthenewTelstracommunicateswithitsstakeholders directlyandmorefrequentlyacrossabroaderrangeofissues. Thisyearthewebsitehasundergonearedevelopmentandhas launchednowwearetalkingTV,withanincreaseofvideoonthe website.nowwearetalkinghascontinueditsreputationasoneof corporateAustralia’smostinnovativeonlineforums.Duringthe 2007Federalelection,nowwearetalkingdedicatedaspecial Election2007areathatwasaone-stop-shopforinformationon telecommunicationspolicyduringtheelection.Thesitewasfree fromeditorialcommentsandwasavailableforallpoliticalparties topublishtheirpolicies.Thewebsitealsostreamedalivedebate betweenthethenMinisterofCommunicationsandShadow MinisterofCommunicationsontelecommunicationspolicy. Visitors tothewebsiteincludeTelstrastaff,customers, shareholders,politicians,competitorsandmedia,alleager to sharetheirviews andopinionsonissuesaffectingTelstra, thewidertelecommunicationsindustry,andthenation. nowwearetalking carriesnewsandviewsfromallperspectives –including thosewhodoanddon’tagreewithTelstra.Overa millionpeoplea yearvisitthewebsiteandwe aimtoincrease thattoover1.5 millionoverthenext12months. nowwearetalking is aimedatencouragingpeopletobecome more interestedin,andtalkmoreabout,thedigitalrevolution, andhow new digital technologiescanexpandchoicesfor people(ofallages andinterests),enterprises(bothlargeand small),andcommunities–nomatterwheretheyarelocated inAustralia.Thewebsiteraisesawareness abouthowsome publicpolicies andadministrativepracticespreventconsumers andthenation as awholefromenjoyingthefullbenefitsof livinginthedigitalage. In2008/09nowwearetalkingwillhavespecialsections dedicatedtotheenvironmentandtheNBN. Climatechange Climatechangehasbeenthedefiningsocialissueofrecent yearsandTelstrahasbeenproudtotakea leadershipposition intheemergingdebate.SincetheelectionoftheFederal LaborGovernmentinNovember2007,therehasbeena notableaccelerationinpublicpolicydevelopmentandthis has coincidedwithinternationaltrends.TheUnitedNations conferenceonclimatechangeinBaliduringDecember2007 wasmarkednotjustbyAustraliaratifyingtheKyotoProtocol butalsobyaroadmaptowardsanewglobalclimatetreaty tocomeintoforcefrom2012. Towardsahigh-bandwidthlow-carbonfuture Inthecontextofintensedebateaboutthedesignand potentialeconomicimpactsofanemissionstradingscheme, numerousstate-basedandvoluntaryschemestopromote renewableenergy,carbonoffsets,andenergyefficiency, Telstrawentbacktothebasics–conservationofresources. LaunchedinOctober2007,ourlandmarkpublicationTowards aHigh-Bandwidth,Low-CarbonFuture:Telecommunications-based OpportunitiestoReduceGreenhouseGasEmissions,commissioned fromindependentexpertsClimateRisk,hastakenourresource conservationmessagetoanewfrontier. Thereportbrokegroundinseveralways.First,itfocused attentiononreducingenergyconsumptionastheprimary meanstoachievemeaningfulcarbonabatement.Second,it describedseveninnovativewaystousetelecommunications networkstodeliversavingsthroughouttheeconomy.Third,it wentasfarastoquantifythesavingspotentialofthesecarbon opportunities–almostfivepercentreductionin Australia’s totalannualgreenhousegasemissionsby2015.Finally,the reportwassubjectedtopeerreview,togiveindependent assuranceoftherobustnessofitsfindings. Theresponsetothereporthasbeenremarkable.Thereport has beenwidelyquotednationallyandinternationallyas demonstratingapracticalandoutward-lookingapproach tothechallengesposedbyclimatechange. Role of telecommunications Telstra’s CEO SolTrujillo champions the case for telecommunicationsto addressclimate change at local and major international forums.Sol Trujillo was the only Australian CEO invited to sit on a16-member World Economic Forum steering committeeon climate change.The steering committee’sstatement – signed by 100 CEOs from some of the world’s biggest companies –urges the G8leaders to take immediate action to tackle climate change,and says that businesshasthe skills,expertise and drive to lead the charge. The Federal Government’s proposed roll out of a National Broadband Network to 98 per cent of Australians will strengthen our effortsfor telecommunicationsto address climate change.This investment will enable Australians to access telecommunications-basedservices that canhelp them reduce their carbon emissions.Initiatives such asremote diagnosisof heath issues,telecommutinginstead of non- productive hoursspent in trafficgoingto and fromwork, and video conferencing instead of travel to meetings are just some of the immediately available ways telecommunications can be used to reduce our impact on the environment. Telstra has already taken the lead in Australia by showing that better use of telecommunications can reduce greenhouse gas emissions.We are working with third parties across Australia to develop innovative solutions that will reduce their operational costs,improve efficiency and reduce their environmental footprints. Regulation With continuing expansion of environmental regulation at State,Territory and Federal government levels,our compliance and reporting obligations are increasing.Climate change is bringing anew set of obligations into the mix,with some variation from jurisdiction to jurisdiction.Telstra has made submissionstotheFederalGovernmentontheEnergyEfficiency Opportunities Act,National Greenhouse and Energy Reporting Act,and the Australian Competitor and Consumer Commission white paper on green marketing.Our policy submissions have emphasised the desirability of streamliningregulation.
    • Telecommunications-based opportunities to reduce greenhouse gas emissions Casestudy Telecommunicationsnetworkscanhelpreduce Australia’s greenhouse gas emissionsbyalmostfivepercentby 2015and deliverupto$6.6 billionayearincostsavingsfor Australian businesses and households,accordingtoa reportreleasedby Telstra inOctober2007. Asaleadershipinitiative Telstracommissionedclimatechange experts toquantifythepossiblecarbonanddollarsavingsthat could be achievedbybusinessenterprises,householdsand governmentsbyusingtelecommunicationsnetworkstoavoid or reduceratherthanjustoffsettheircarbonemissions. The Reportfoundtelecommunicationsnetworkscanfacilitate areductionin Australia’scarbonemissionsby 4.9percentor around27 million carbontonnesperyearby2015.Thisis equivalenttotheannualemissionscausedbynearlytwo- thirds ofAustralia’s passengercars. TowardsaHigh-Bandwidth,Low-CarbonFuture: Telecommunications-basedOpportunitiestoReduceGreenhouse GasEmissionsis a studybyclimatechangeexperts,Climate Risk.TheReportwas peerreviewedbyindependentexperts: WWF Australia’s ChiefExecutiveOfficer,Greg Bourne,and leading Australianenergyandenvironmentalauthority, DrHughSaddler. The Reportidentifies sevenmajoropportunitiesfor Australian consumers andbusinesses that,ifimplementedby 2015,could help reduceAustralia’s greenhousegasemissionsby around27 millioncarbon tonnesperyear.Individually,eachopportunity coulddeliverperannumcarbonemissionsavingsof: • 1.8million tonnes (Mt)byusingbroadbandtoremotely managepowerforappliancesnotinuseoron‘stand-by’; • 2.4Mtbyimprovingbusinessproductivitywith“in-person” high-definitionvideoconferencing; • 2.9Mtwithbroadbandbased,real-timefreightallocation systemstofillemptyfreightvehicles; • 3.0Mt withpresence-detectingservicesthatturnoff devicesthatare“on”butnotbeingused; • 3.1Mt withteleworkingand workinginregionalcentres byreducingcommutercartraffic; • 3.9Mt bybringingintegratedpersonalisedpublictransport toyourdoorwitha phonecall;and • 10.1Mtbyincreasingrenewableenergyusewithnetworked demand-sidemanagement. ClimateRisk’sDirectorofScienceandSystems,DrKarlMallon,said theintroductionofcarbontradingwouldrequireAustralian businessestore-thinktheirapproachtodoingbusiness. “TheReport’sopportunitiesshouldbepartofeverybusiness andgovernmentclimatechangestrategybecauseitcandeliver bigemissioncutsquicklyandwithminimaleconomicdisruption,” DrMallonsaid. “ThisReportprovidesthefirstsignificant,practicalanalysis inAustraliaoftheuseoftelecommunicationstoachieve increasedenergyconservationandcleanenergyproduction. Ouranalysisfoundthatbyharnessingsmarternetworksand devicesitispossibletodeliverreducedemissionswhilealso reducingexpenditureonenergyfortheenduser. “TheresultsindicateTelstracanplaya bigpartinthe solutiontoclimatechange.Thescaleofitsnetworks,services andcustomer-baseprovidesa uniqueplatformtopartner withbusinessesandhouseholdstoamakeasignificant contributiontoreducingthenationalcarbonfootprint.” A fullcopyoftheReportcanbefoundat www.telstra.com.au/abouttelstra/csr/reports.cfm
    • 18 1.Society matters Issue Solution Product/Service Travel/FuelReduction AdditionalInformation Conferencing& Collaboration Remote&Virtual VideoConferencing TelePresence ✓ Topoftherange/stateoftheartvideoconferencing. VideoConferencing TelePresence ✓ Enablesvirtualfacetofacemeetingsandsupportslarger numbersofattendees. VideoConferencing DesktopVideoConferencing ✓ Desktopsolution for individualfacetofacemeetingswith high quality images. VideoConferencing WebEx ✓ Enablesharingofapplicationsandhands-on visual/verbalcollaboration. VirtualContactCentre WebContactCentre ✓ Supportsavirtualcontactcentrethatlinksallformsofcommunicationswhilst abletorun on any connectabledesktopPCallowingaphysically diversestaffing andreducedtravelandalsoofficespaceimpactsfor homeworkers. RemoteWorkingSolutions iPassGlobalVirtualNetwork ✓ Providessecuremanagedaccesstocorporatebusinessessupportingemployees workingremotely andenablingreducedtravel. Telemetry RemoteTelemetry RemoteTelemetry ✓ Remotemonitoringandcontrolofmeteringandspecificapplication devices anywhere(andeverywhere) in thecountry enablingreduction in travel. Additionalenvironmentbenefitsdependingon application such aswater reductionswhen usedfor water management. VehicleRouting& Management FieldWorkforceSolutions Xora Trimble EnterpriseMobilitySystem(EMS) ✓ Variousapplicationsfor fieldforcemanagementtostreamlinefieldwork includingjoballocation androuteplanning. Whereis®Navigator WhereisNavigator ✓ Smarttravelplanningmeansefficientroutingtohelppreventunnecessaryfueluse. NextGeneration Infrastructure TelstraNextIP™network BigPond,Velocity(FTTP) ✓ TheTelstra NextIP™ network is one ofthe largest,fully integrated national IPnetworksin theworld. NextG™network FlexiblePersonalisedTransportSolutions ✓ Leadingedgewirelessnetwork thatunderpinsnotonly Telstra’sbutan extensiverangeofthirdparty productsandservices. Telstra’s productsandservices–fuelreductionsolutions
    • 19 Internetsafetyandsecurity Wireless communication ischangingtheway we work,liveand relatetoeachotherinthe21stcentury.In 2007,eachAustralian household had,onaverage,morethanthreemobilephones –up from oneperhouseholdin1995;andin 2007,nineinten families hadaninternetconnectionwith75percentbeing broadband– upfrom sevenpercentin1995.Communications toolslikethesearebringingfamilyandfriendscloserby allowing them tostayconnectedwhenphysicallyseparated. However,withaccesstohigherbandwidthinternetconnections andnew technologies,thewaypeoplebehaveonlinehas changed.Therateofgrowthintheuseofsocialnetworking services anduser-generatedcontenthasincreasedmarkedly inAustralia and internationally.Therehasbeenashiftfrom the consumption ofcontenttointeractionwithcontent,and information hasneverbeenmoreintegratedoraccessiblein ‘real time’. Whilethesechanges haveincreasedourabilitytoconnect with eachother,drivenadvancesinproductivityand enhanced innovation,theyhaveacceleratedashiftin theriskstointernet users.Theseonlineriskscanbecategorisedintothreekeyareas2: 1. content– theriskofexposuretointernetcontentthat isillegalorconsideredtobeinappropriateforchildren. 2. communication – risksarisefrominterpersonal communications ontheinternet,suchascontactwith childrenbysexualpredatorsandcyberbullying. 3. e-security risks – associatedwitha varietyofinternet activities including thereleaseofpersonalinformation topublic forumsandconnectingahomecomputertothe internetwithoutprotection,whichmayresultinviruses, onlinefraud,spamandidentitytheft.Onanationalscale, e-security risks mayincludecyberattackonAustralia’s criticalinfrastructure. In2007/08 Telstraestablishedan internalWorkingGroup onInternetTrust&Security.Wealsoworkwithindustry, government,communityorganisationsandinternetusers toaddresstherangeofevolvingonlinerisksandtodevelop measuresthatpromoteonlinesafety.AtTelstrawetake our responsibilityasatrustedinternetservicesproviderand integratedtelecommunicationscompanyseriously. Cybersafetyforkids In2007/08 theTelstraFoundationmadeathreeyear commitmenttoputtinga‘spotlight’oncybersafety.Anew $3 millioncommunitygrantsprogramwas establishedto helpdevelopprotectivemeasurestokeepAustralianchildren safewhileusingtheinternetandmobilephones.Throughthe spotlightoncybersafetyprogram,theTelstraFoundation supportsprogramsthathelpchildrenandyoungpeopledevelop theskillstheyneedtoenjoytheuseofinformationand communicationtechnologiesinsafe,supportedenvironments, andprogramsthateducateparentstobecomemore competentinaddressingcybersafetyissues. Nationale-SecurityAwarenessWeek InJune2008,TelstrasupportedNationale-Security AwarenessWeek,a FederalGovernmentinitiativethat aimstohelpAustraliansunderstande-securityrisksand educatecomputerusersaboutthesteps theycantaketo protectthemselves,familiesandbusinessesonline.Telstra’s CorporateSecurity&Investigationsledourinvolvement togetherwithrepresentativesfromSensisandTradingPost. As part of the week in June 2008,Telstra’s consumer marketing team and BigPond held a series of free seminars at Telstra’s T[life]™ store in Sydney.The seminars demonstrated how every parent can help build a safe online environment for their children.One of the world’s leading experts in e-learning and an advocate for child cyber safety,Dr Martyn Wild,shared some simple steps that parents can take to make the internet a safe place for their family.A booklet for parents,Help keep your kids safe online,was produced as part of this initiative. The booklet,along with some simple tips on cyber safety, can also be found by visiting the BigPond website at http://my.bigpond.com/help/security Cyber Safety Consultative WorkingGroup Telstra’s Corporate Security &Investigations Unit represents the company on the Cyber Safety Consultative WorkingGroup. A key initiative of the FederalGovernment’scyber safety plan, the workinggroup hasrepresentation fromcommunity groups, internet service providers,industry associations,businessand government.It isexpected to provide advice to the Government on prioritiesand measuresrequired by legislatorsand industry to ensure world’sbest practice safeguardsfor children online. Australasian Consumer Fraud Taskforce The Australasian Consumer Fraud Taskforce,made up of a number of state and federal government bodies from Australia and New Zealand,launched aSCAM watch Fraud Fortnight awarenesscampaign driven by the Australian Competition and Consumer Commission.The campaign wasdesigned to educate consumers on how they canbetter protect themselvesfromscams. As an industry partner to the Taskforce,wehelp promote the campaign each year.This year,by using Telstra’s varied communication channels,the Taskforce’smessageswere delivered to over 2.7 million BigPond customers,550,000 TradingPost usersand 40,000 employees. VirtualGlobalTaskforce The Virtual Global Taskforce (VGT)iscomprised of global law enforcement agencies working together to fight online child abuse.Its objectives are to make the internet asafer place,to identify,locate and help children at risk,and to hold perpetratorsappropriately accountable. 1.Society matters 2 DevelopmentsinInternetFilteringTechnologiesandotherMeasuresforPromoting OnlineSafety,p.12,AustralianCommunicationsand MediaAuthority,2008
    • 20 BigPond is anoriginal corporateindustrypartnerofthe VGTsinceits inceptionthreeyearsagoandwas thefirst Australianinternetserviceprovidertoacknowledgeitsvalue. AsanindustrypartneroftheVGT,Telstrademonstratesits commitment tocommunitysafetyandcrimereduction,and helpstoreducethethreattochildrenonline.Telstraattended the thirdInternationalVGTconferenceinCanadain February 2008,whichfocusedonbuildingawareness andunderstanding of thechallenges facedwhenfightingaborderless,cross jurisdictional crime.Theconferencerecognisedthatno single agency,organisation orcompanyalonecan winthefight of protecting ourmostvitalresource–ourchildren. TechnologyandWellbeingRoundtable TheTelstra Foundation,incollaborationwithInspire Foundation,established aTechnologyandWellbeing Roundtable,a forumthatbringstogetherasmallgroup of industry leadersfromallsectorsofthecommunity,to exploreopportunities toworkcollaborativelyand reduce therisksassociatedwithtechnology.Establishedin2008, the groupaims todevelopinnovativeinitiativesthatharness the poweroftheinternetandrelatedtechnologytoimprove wellbeing.SomeoftheroundtableparticipantsaretheNSW Commission forChildrenandYoungPeople,theAlannahand MadelineFoundation,NAPCAN,MicrosoftandMySpace. CyberStorm II Telstra continuedtoworkcloselywithgovernmentand industry toensurethecountryis readyfor andresilientto possible attacksonits networkand constantlyinvestsin newtechnologytoprotectitscustomers.Today’ssecurity challenges reinforcethebenefitofTelstra’sparticipation inaninternationalsimulatedcyberexercisecalledCyber Storm II,whichtookplaceinMarch2008. Cyber StormIIwas partoftheUnitedStates’Departmentof HomelandSecurity’songoingefforttoreducecyberattacks andenhancegovernmentand privatesectorabilitiesto communicateandcooperateinresponsetoacyberincident. Australia,alongwithCanada,theUnitedStates, NewZealandandtheUnitedKingdom,participatedin theexercise.Over50 Australianorganisations,including criticalinfrastructuresectors,tookpartintheexercise designedtotesthowwellcriticalcross-sectorandinter- governmentalcybersecurityprocessesoperateandhow stakeholdersrespond.As akeymediacommunications company,Telstrawasintegraltotheexercise. Telstra’sinvolvementinthiscollaborativeindustryand governmentexerciseprovidedtheopportunitytosimulate responsestoalargescalecyberattack,applykeylearnings tocurrentpracticesanddevelopimportantnetworkswith lawenforcement,governmentsandpeerorganisations. CyberStormII reinforcedtheneedforTelstra’senterprise andgovernmentcustomerstoproactivelyprotectthemselves againstcybercrime.Telstraofferedinformationandbriefings onasophisticatednewsecuritysystem,DistributedDenialof ServiceProtection.Thisprotectionserviceinterceptsanattack intheonlinenetworkand redirectstheoffendingtrafficto preventthecustomer’sinternetgatewayfromshuttingdown. Thenetwork-based,managedsecuritysolutionisaneasy and scalablewaytoprotectcustomernetworksfromDistributed DenialofServiceandotheronlinesecuritybreaches. Electromagneticenergy Telstraacknowledgesthereissomecommunityconcern thatexposuretolowlevelsofelectromagneticenergy(EME) fromourtelecommunicationsbasestationsandmobile telephonehandsetscouldleadtoadversehealtheffects. TelecommunicationsfacilitiesemitradiofrequencyEME as“radiowaves”orradiosignals.Otherradiowavesignals transmittedbycommunicationsfacilitiesincludeTVsignals, AM andFMradiosignals,taxiservicesignals,pagingnetwork signals,emergencyservicecommunications,andpolice two‑wayradio. Telstra relies on the expert advice of national and international health authorities suchasthe Australian Radiation Protection and Nuclear Safety Agency – an agency of the Commonwealth Department of Health and Ageing,and the World Health Organisation (WHO) for overall assessments of health and safety impacts. The WHO reports that from all the evidence accumulated so far,“no adverse short or longtermhealth effectshave been shown tooccur from the radio frequency signals produced by base stations.” Onmobile phones,the WHO reports that“the overall evidence available to date does not suggest that the use of mobile phoneshasany detrimentaleffect on human health.” More information isavailable at www.who.int/peh-emf/about/WhatisEMF/en/index3.html During 2007/08,Telstra completed 1,131 mobile infrastructure projects which included 129 new development applications and 425 Australian Communication Industry Forum consultation proposals.The Australian Communications and Media Authority (ACMA) confirmed that they received five complaintsregardingTelstraproposalsthisfinancialyear. Each year,Telstrapublishesinformation on the Radio Frequency NationalSite Archive aspart of our transparent approach to EMEand telecommunication.Thisyear thisincluded: • Environmental EME Reports:7,057 updates to 4,130 distinct sites; • EME Compliance Certificates:1,426 updates to 1,260 distinct sites;and • Radio CommunicationsSite Management Books: 1,719 updatesto 1,451 distinct sites. 1.Society matters
    • In2007/08,wepresentedatsixleadinginternationalEME conferencesandworkshops,includingtheBioelectromagnetics Society Annual MeetinginSanDiego,and providedsponsorship fortheAustralianCentreforRadiofrequencyBioeffectsResearch ScienceWeek2007.TheaimoftheScienceWeekis toimprove the public’s understandingofradiocommunications technology. EMEresearch Telstra employsthreefull-timeresearch professionals intheChiefTechnologyOfficetooversee andsupportour engagementinexternalEMEresearch.Thisresearchis conductedprimarily incollaborationwiththeAustralian CentreforRadiofrequencyBioeffectsResearch. In 2007/08,researchprojectsundertakenwiththeCentre includedhuman,animalandisolatedcellculturestudies onpotentialhealtheffects;dosimetrystudiesfor more robust exposurestandardsdevelopment;andextensive reviewing ofthescientificliteraturetoprovidethemost up-to-dateknowledge oftheglobalresearch effortand the latestconclusions onpotentialhealthimpactsfrom exposuretoEME. Also in2007/08,incollaborationwithSwinburneUniversityof Technology,Telstraopenedanew$600,000research facility atSwinburne’sHawthorncampusinMelbourne,toundertake specialised radio frequencydosimetryresearch and tosupport the researcheffortsoftheothercollaboratorsoftheAustralian Centre forRadiofrequency BioeffectsResearch.Telstra contributed$300,000andlabequipmenttothenewfacility. SuperClubsPLUS Australia Casestudy Aprotectedandsafeonlinelearningcommunityfor young AustraliansisnowarealitythankstotheeffortsofIntuitive MediaAustralia,La TrobeUniversityandthe Telstra Foundation. Theactiveeducationprogram,SuperClubsPLUSAustralia, equipschildrenwiththeskills,confidenceandaptitude to effectivelyandsafelyengageontheinternet. Providinganonlinevoiceforsixto12yearolds, SuperClubsPLUSAustraliaisalocalisedversion ofaninitiativeofIntuitiveMediaUK.Itincludes Australianmediatorsprotectingandencouraging childrenin‘realtime’,andlocalcontent,partnersand curriculummappingacrossalleducationjurisdictions. SuperClubsPLUSallowsyoungpeopletosafelyexplore theiridentity,andreachouttosignificantadults,suchas children’sauthors,guestpoliticians,andjournalists,aswell aseachother,through‘SuperHot-Seats’.‘SuperClubbers’ cantalktolocalandglobalaudiences,butareprotected by asophisticatedmixofsoftwaretools,intelligentsystems andreal-timemediators.Itisasaferalternativetothe online communitiesfoundinMySpace,YouTubeandBebo. UsingSuperClubsPLUShelpsyoungpeopledevelopan advancedunderstandingofonlinetoolsandtechnologies, andanopportunitytousetheminpurposefulactivities. Inaddition,SuperClubsPLUSAustraliaprovidesanonline spaceforchildrenandteacherstolearninadifferent environment.Informationandcommunicationtechnologies learningsfromeachofthestates’educationcurricularfor this agegroupwillbemappedtoprogramsinSuperClubsPLUS. Withover6,000kidssignedupinjustthefirsttwomonths ofSuperClubsPLUSgoinglive,theaimistohave40,000 childrenregisteredinthefirsttwoyearsoftheprogram. SpringGully Primary Schoolteacher,NarissaLeung, believes that SuperClubsPLUS Australia teaches students more than just computer skills. “It provides students with amoral compass for safe internet use and an authenticpurpose for both readingand writing,” MsLeungsaid. The Telstra Foundation,through the Community Development Fund’s Cyber Safety program,issupporting SuperClubsPLUS Australia with agrant of $1 million over two years. 21
    • 22 Communityengagement KeytoTelstra’s siteselectionprocessistheneedtostrikea balancebetweenprovidingreliableservicesandminimising impactonthecommunityandthelocalenvironment.Telstra endeavourstolocatefacilitiesinindustrialand commercial areaswhereverpossibleinordertominimisedisturbancesto localcommunities. Adedicatedteam atTelstraactivelyreviewsnewsite proposals anddevelopssuitablecommunityconsultation plans.The levelofconsultationvariesdependingonthetype of facilityproposed(newsiteorupgradeofanexistingsite), local governmentpolicy and advice,andimportantlythe localarea andcommunity. Telstra invites nearbycommunitiesandlocalgovernment toactivelyparticipateintheconsultationprocess,and provides arange ofavenuesforengagementincluding writtennotification toresidents,advertisementsin local papers,notices attheproposedsite,local“drop-in”sessions ataneighbourhoodhouse,specialcouncilbriefings, telephonehotlines,housetohousevisitsandone-on-one informationsessions. Telstra providescomprehensiveinformationabout EMEandhealth,includingresearchandfactsheets, atwww.telstra.com.au/ememanagement Socio-economic contribution AsthetelecommunicationsnervecentreofAustralia, Telstra providesthenationwithafoundationforeconomic growth,productivityimprovement,sustainableprosperity andglobalcompetitiveadvantage.Asabusinessenterprise, wehave aresponsibility toourshareholdersandtothe nation to continually improve thefinancialperformance of ourcompanyanditsbusinesses.Bydoingthisina responsible way,wefosterprosperityintheindustries andcommunitiesinwhichweparticipate. Economicimpact Indesigning,developingandimplementingcommunications solutionsforourcustomers,Telstrahasa significantimpact ontheeconomythroughemployment,investmentand our supplychain.Duringthe2007/08 financialyear,Telstra’s businessactivities: • supported46,649jobs(totalworkforce); • paidout$4.2billioninsalariesandwages; • paidout$3.4billionindividendstoshareholders; • paid$1.7billioninCommonwealth,stateandlocaltaxes; • purchasedmorethan$11 billioningoodsandservices fromaround8,000suppliers;and • invested$4.9 billiontocontinuethebuildoutofthe NextG™wirelessbroadbandnetwork;thecontinued deploymentoftheTelstraNextIP™network;creation ofnewandadvancedbusinesssupportandoperating supportsystems;andotherinvestmentstotransformthe deliveryoftelecommunicationsservicesinAustralia. Financialsummary Yearended30June2008* 2007/08 2003 $M 2004 $M 2005 $M 2007 %change Salesrevenue 24,657 23,673 984 4.2 EBIT 6,226 5,779 447 7.7 Profitaftertaxand minorityinterests 3,692 3,253 439 13.5 Ordinarydividends (centspershare) 28 28 - - *Includes Sensis Industry awards In one of the biggest end-to-end transformationsever undertaken by aglobal telecommunicationscarrier,Telstra is nowpast the three year mark in itsfive year transformation. We are transformingfroma20th century phone company into a world classmedia-communications company,implementing next generation networks,transforming our IT systems and introducing market-based management to improve our customers’experience.The transformation,which issupported by globalstrategicpartnerssuch asAccenture,IBM,Ericsson, and Alcatel-Lucent,isproducingworld-leadingresults. In2007/08,Telstra’s achievements have been recognised by anumber of key industry awards,including: • 2008 TelecomAsiaAwards–‘Best Asian TelecomCarrier’ and‘Best Mobile Carrier’; • 2007 Australian Telecom Awards –‘Telecommunications Company of the Year’,‘CEO of the Year’,‘Best Internet Service Provider’,and‘Mobile Carrier of the Year’; • Global Telecoms Business Magazine’s 2007‘Innovation Award’for IT Transformation; • Australian Communications Alliance Awards –‘Innovation Mobility Award’for the TelstraNext G™network; • National Mobile Media Awards –‘Best Mobile Entertainment’;and‘Best of Show’for Wotnext; • International Engineering Consortium,Broadband World Forum – InfoVision Awardfor BigPond Wireless Broadband;and • Engineers Australia Excellence Award,Sydney Chapter of EngineersAustralia– Award for ControlSystems, Network Infrastructure and Telecommunications– TelstraNext G™network. The complete list of Telstra honours can befound at www.telstra.com.au/abouttelstra/corp/awards.cfm 1.Society matters
    • “In the past,the Mobile Unit hasbeen unable to even connect to atelephone line. “This,coupled with the many and varied locationsthe Mobile Unit visits,and the challenge of the size and complexity of the x-rayimages –about 10 megabytes per single x-ray – hasrequired creative solutions.” BreastScreen Tasmaniaisone of the increasingnumber of organisations using the Next G™network toincrease efficienciesand drive improved productivity. Productivityandinnovation Telstra’s vision is foraNationalBroadbandNetworkfor all Australians,toenableaturbo-chargingofhealth,education, environmentalconservationanddevelopment,commerce, innovationandsocialinclusion.Wearealreadydelivering Australia’s largest and fastestnationalmobile broadband network. Ournetworksexplained The NextG™ networkisAustralia’slargestandfastest national mobile broadband network.Telstra’sNext G™ networkoffers thebestcombinedbreadthanddepthof third generation mobile coverageinAustralia,coveringmore thantwomillionsquarekilometres–morethanthreetimes the sizeofFrance.TheNextG™(850MHz)networkprovides 3Gservices and wirelessbroadbandaccess to99percentof the Australian population,spanningcityto countryincluding manyremotecoastal andruralcommunities,andistheworld’s firstnationalnetworktoofferupto200kilometrecellrange. Someadvantages oftheNextG™networkinclude: • moremobilephoneservices–inadditiontothestandard voicecalls andtextmessaging,theNextG™networkallows itsuserstomakeand receivevideocalls,and enjoy broadbandaccess totheinternet; • laptopandPDA access –theNextG™networkcanalso beaccessedusing laptopsandPDAsviaPCcards; • fasterdataspeeds–theNextG™networkis uptofive times fasterthanother3GSMnetworks,withtypicaluser speeds averaging 550Kbpsto3Mbps;and • international roaming–theNextG™networkhas oneof theworld’sbest internationalroamingfootprints,allowing customers tomakevoicecallsinmorethan172countries andto access3G servicessuchasvideocallingand high speeddatain41countries. TelstraCountryWideExecutiveDirectorforVic/Tas,GrantWiltshire, TasmanianMinisterforHealth,LaraGiddingsandBreastScreen Tasmania’sJennyHuntleydemonstratethedigitalmammography imagerybeingsenttoHobartinreal-timefordiagnosis. Breast Screen Tasmania Virtual Care Casestudy LaunchedinApril2008,a newtelehealthinitiativepowered by Telstra’sNextG™networkisrevolutionisingthewayscreening mammogramsareprocessedforwomenlivinginrural and regionalTasmania.Significantadvancementsinhealthcare oftencomefromsimplesolutions,andthisonecouldnot be morestraightforward. “Thebeautyofthisapplicationisitssimplicity,”said TelstraCountryWide®ExecutiveDirectorforTasmania andVictoria,GrantWiltshire. “Acombinationofwirelessbroadbandanddigital mammographyequipmentmeansthatimages previouslycourieredinhardformcanbeemailed totheradiologyreadingfacilityinHobart.” LaraGiddings,MinisterforHealthandHumanServices, saidthattheinitiativehadreducedthetimetakenfor individualmammogramfilestobetransferredfromthe mobilescreeningunittotheHobartreadingfacilityfrom asmuchasfivedays,tojustfourminutes. “Untilnow,lackofmobilebroadbandcommunications hasmeanttime-consumingmanualprocessesfordelivering clientfilesandmammogramstoandfromtheMobile Unit,” Larasaid. “Filesandappointmentscheduleshavebeenpacked insuitcasesanddeliveredbycouriertotheMobileUnit whereverithasbeenlocatedaroundTasmania–aprocess takinguptofivedaysdependingonthelocation. “ReturningthefilesandscreeningmammogramstoHobart forreadingandarchivinghasbeensimilarlyinefficient. 23
    • 24 Inaddition,Telstra hasdeliveredtheTelstraNextIP™network which,coupledwith theNextG™network,isoneofthelargest fullyintegratednation-wideIPnetworksintheworld.TheTelstra Next IP™networkis secure,morescaleable,morereliableand simplertoaccess thananyothernetworkinAustralia. OurADSLbroadband networkcovers 92percentofthe population and ourADSL2+servicesareenabledin more than 1,400 exchangesallowingcustomerstoaccess speeds up to 20Mbps. Changing thewayweliveandwork Thesenetworks arealreadyhavinga profoundsocialand economicimpact– changingthewaypeoplelivetheirlives, changing businesses,andincreasingAustralia’sabilityto competeglobally.Theyunderpinsignificantchanges from information thatis compartmentalised,fragmentedby providerandhardtoaccess,toinformationthatisintegrated, user-generatedandaccessibleinreal-time. Onapersonallevel,peopleareusingTelstra’sNextG™network tomakelive video calls,especiallyforspecialoccasionssuchas Christmas,birthdays,weddingsandchristenings,strengthening kinship tiesandallowing peoplewhocan’ttraveltostayin touchwiththoseclosetothem. Onabroaderlevel,our networksare usedtoimprove emergencyservices,addresscriticalresourceshortagesin health and education,and toimproveefficiency and productivityinindustry. Healthcare Withanageingpopulationandshortfallsofdoctorsand nursesin ruralandregionalareas,Australia’shealthsystem isunderpressure.Telecommunicationsnetworkscanunderpin aseriesofpositivechangesinthepatient,medicalprofessional andhealthadministrationexperience. Usingournetworks,itisnowpossibleforanambulance toarrivemorequicklybyusingourlocationtechnology to pinpointthesceneand thenearestambulance;apatient’s recordstobemadeavailableinstantaneouslybythespeed, reliabilityandrobustnessofourTelstraNextIP™network; andthebestprofessionalstobealertedimmediatelyfor diagnosisandrecommendationbyusingourwireless broadbandNext G™networktorecordandtransmitthe patient’sconditionviavideo. CommunitynursesareusingNextG™toremotelyaccess clientrecordsandupdatefiles,eliminatingtheneedtogo backtobase.Theyalsotakeandsendpicturesandvideos ofwoundstoreceivedressingadviceoverthephone,saving timeandresources,anddeliveringmoreimmediateand appropriatecare. Healthprofessionals,suchasdentists,speechtherapists, obstetricians,cardiologists,pathologists,paediatriciansand physiciansareusingtheNextG™ networktoviewelectronic patientrecords,makeprescriptions,accesspharmaceutical dataandconductmobilevideoconsultations. Thissavestraveltime,reducesthe delay for diagnosisand, most importantly,givespatients timely advice about improving their health and wellbeing inlocations where specialist attention previously may not have been available. Virtualreal-time criticalcare bridgesdistance and gives access to specialists assisting inthe stabilisation of the patient,reducing the need to transfer patients from regionalto big-city hospitals. Business A December 2007 study of 26businesses in15industries usingTelstra’s Next G™wireless broadband network found on average a9.3 per cent increase inproductivity after using Next G™for an average of seven and ahalf months. Productivity gains among users interviewed varied from 1.1 per cent to 27.3 per cent. 31 per cent of those surveyed were in ruralor remote areas.It’s in these areas where the highest productivity gainswere seen. The productivity driversincluded reduced traveland expenses; better useof time while offsite or travelling;accessto more information remotely;and reduced staff time supporting information requestsfromoffsite workers. Businesses across all sectors areusing our networks to save on traveltime and fuelexpensesto improve productivity. For example,cattle farmers are using Next G™to remotely monitor water levels,gates and fences,and remotely control water pumps,not only saving time and fuel,butreducing maintenance and improvinglivestock longevity. The study wasprepared for Telstraby Enotech Pty Ltd. 1.Society matters Our networksarealreadyhaving a profoundsocialandeconomicimpact
    • “Ican now use alaptop to doa job on the top of Uluru or in Wadeye,and it’snot only generaladministrative work that we can nowdo”,Charlessaid. “We can also access all our records sothat wecan check the details weneed tosay yes toa loan or abusiness deal right there and then. “Nowthat staff membersdon’t have to travelto where they previously needed to for internet access,and weare able to accessour network inmany places across Australia,I believe that moving to the Next G™network has improved our efficiency by up to 30 per cent.” Education Accesstohigh-speedbroadbandissettotransformtheway welearn in a new eraofanywhere,anytimelearningondigital devices and in virtual classrooms.In theeraofhigh-speed broadband,learning willbeaccessibleacrossanydigitaldevice, whichmeans learning contentwillbe availableon PDAsor smartphoneswhenit’smostneededormostconvenient. With fast networkspeeds,studentshavefaster and easier access to contentin theirpreferred formats–whetherthat isvideo,simulatororgaming.Peoplewillbeabletoupload, co-createand commenton learningcontentaseasilyand quickly asthey canaccess it,and sharedlearningwillalso beenhanced. EducatorsarecurrentlyusingNext G™TelstraTurboCards in laptopsto stream live videoof environmentalprojectsto schools around thecountry,giving schoolstudentsa richer learning program.Importantly,studentscanbe connected with livelearning nomattertheirlocation. CharlesRoberts, IndigenousBusinessAustralia. Indigenous business organisation more efficient Casestudy Withmorethan200staffworkinginremotelocations aroundAustralia,IndigenousBusinessAustralia(IBA) reliesonTelstra’sNextG™networktokeepincontact. IBA isaFederalGovernmentorganisationbased inCanberrawhichnegotiateshomeandbusiness financingwithIndigenouscommunities. HavingswitchedtotheTelstraNextG™ network,IBAstaff cannowmakemobilephonecallsfromplacesasremote as Wadeye,westofDarwin,andlogontotheircentraldatabase. AccordingtoIBA’s InformationTechnologyandTelecoms Manager,CharlesRoberts,thenewarrangementshave made theorganisationbetween25and30percentmoreefficient. IBA representativesconductmuchoftheirworkin remoteIndigenouscommunitieswheretheymeetwith individualsandorganisationstosetupfundingforhome orbusinessloans. WorkingmainlyinQueensland,theNorthernTerritory and WesternAustralia,staffmemberstraditionallyhadto cope withslowandunreliablephoneandinternetaccessin bigger towns,andnointernetaccessatallinremoteareas. PriortoswitchingtotheNextG™network,manystaffmembers hadtorelyonsatellitephonestosetupappointmentsorcheck inwithcolleaguesatotherlocations. ComputeraccesstoIBA’s databasewaslimited,andstaff hadtotravelhundredsofkilometrestoandfromareas to getaccess. TheIBAnowhas115NextG™mobilehandsetsand71NextG™ TurboCardsprovidingstaffwithaccesstooffice serversand systems,email,andfastbroadbandwhileoutoftheoffice. 25
    • 26 Influencing corporate responsibility outcomes Acompany as large asTelstrahastheopportunitytoinfluence the corporateresponsibilitybehavioursand outcomesofthose stakeholderswithwhomweengage. Suppliers In2007/08,Telstra purchasedapproximately$11billionin goodsandservices fromaround8,000suppliers.Thenumber of suppliers involvedandthesizeofspendputsTelstrain a strong position toinfluencetheenvironmentalandsocial standards ofoursuppliers.Werecognisethatoursuppliers havethepotentialtomakesignificant,positivecontributions tothecommunities inwhichtheyoperateand todirectly impactTelstra’s owncorporateresponsibilityperformance. Our supplychain Telstra hasmorethan800major(over$75kspend)active contracts inplacewithadiverserangeofsuppliersfora rangeofproductsandservices.Themaincategoriesofspend include:networkequipment,includingexchanges,pits, pipes andconstructionservices;customerequipment,such asmobile handsetsandtelephones;strategicmarketing including advertising,media,sponsorship,brand and marketing services;officeproducts;motorvehiclesand mechanical aids;IThardware andsoftware;directory paper;andlabour,includingagency,ITandconsultancy. Supplychaintransformation AspartofTelstra’s transformation,oursupplychainisbeing reformed.We’removingfromacostlyscenarioof toomany suppliers,systemsandstandardstoasinglewaytoprocure, asinglewaytoconnectwithsuppliers,andasinglecompany- wide view ofourvendoractivity.Thebenefitsinclude:cost effectiveness;greatervisibilityoftheend-to-endsupply chain;process improvementsthroughtheautomation, standardisationandtheintegrationofourprocessesresulting ingreaterefficiencyandsimplification.Greatervendorvisibility alsomeansTelstraisabletobettermonitorandenforce networkcomplianceand tocontinuetoensurea highstandard ofconductfromoursuppliers. Telstrahassigneda seven-yearcontractwithIBM toprovide a numberofsupplychainservicesincludingcontractmanagement andreportingsystems,andtooperateanintegratedsupply chainforinternalspendon productsandservices.IBM is committedtoupholdinghighstandardsofethical,social andenvironmentalconductinitssupplychainandhas implementeda globalSupplyChain SocialResponsibility programworldwideacrosstheirnetworkofsuppliers. IBMwillcontinuetoworkwithTelstratoidentifypossible processimprovementsinthesupplychain. Supplierevaluationprocess Telstra’sBusinessPrinciplesprovidea frameworktoensurethat weoperateethicallyandwithintegrityinpurchasinggoods andservicesandconductingbusinesswithourvendors.Social andenvironmentalconsiderationsinoursupplierselection and evaluationprocessesareguidedbyourPurchasingEthics GuidelinesandEnvironmentalPurchasingGuidelines. PurchasingEthicsGuidelinesaimtoensurethatinundertaking ourpurchasingactivitieswe assess therelevantimpactswe makeonsocietyandthatwetakeintoaccountourhealth and safetyresponsibilities,andtheeconomic,environmentaland communityimpacts. TheEnvironmentalPurchasingGuidelinesaimtoensure considerationofenvironmentalissuesinthepurchasing ofallproductsandservicesbyTelstra. Thefundamentalelementsofthesepolicies,alongwithour Health,Safety& Environment(HS&E)framework,havebeen incorporatedintothecompany’s StrategicSourcingand VendorManagementprocesses. Strategicsourcing Our supplier selection processincludes arisk assessment designed to identify environmentaland occupationalhealth and safety risks in particular and broader social risks more generally.Dependingon the risk evaluation we may require that our suppliershave: • formalmanagement systemsand plansthat manage any HS&Easpects and impacts associated with their business and any productsor servicessupplied; • ahistory of HS&Ecompliance and good performance; • evidence of how they manage the HS&Eperformance of their subcontractors;and • socially responsible contractual obligations specific to the productsor servicesthey are supplying. As a result of our crossbusiness risk assessment-based sourcing process,high risk products,servicesand vendorsare identified (eg,clothing manufacturers,labour services) and may be subject to greater scrutiny including visiting manufacturing premisesand seekingevidence of company policies. For example,before procuring work services from anindustry partner,weinspect the vendor’s premises and perform a rigorous risk assessment against key Telstra policies and employment conditions including:work environment;leave and breaks;HS&E;equal employment opportunity;bullying and whistle blowing;privacy;unions;employee assistance programs;reward and recognition,and remuneration. Vendor management Vendor managers haveongoing relationships with key suppliers.They monitor and addressdelivery,quality, and HS&Eissues.The contract witha vendor requires compliance with Telstra’s HS&Estandards,and apart from the information captured during the sourcing process,contracts with specific high risk suppliers contain conditionscoveringongoingreportingobligations. 1.Society matters
    • 27 Propertyvendorsarealsocontractedtoidentifyenvironmental improvementopportunitiesaswellastosupportand collect datatoassistuswithmeetingtheobjectivesoftheGreenhouse ChallengeandNationalPackagingCovenant. Awards Telstrahelpstobuild socialinclusionand encourages environmental stewardshipbysupportingand recognising thoseindividuals and organisationsthataremaking a difference. WehavesponsoredtheNationalAboriginal& TorresStrait IslanderArtAwardsince 1992,recognisingtheachievements of Indigenous artists.TheAward isanimportantshowcasefor both established and emergingartistsand hascometobe regardedas thepremiernationaleventintheAustralian Indigenousartcalendar. The 2007winnerwas DennisNona,whoseartwork,Ubirikubiri, wonthecoveted$40,000prize.Widelyacknowledgedasone of themost importantTorresStraitIslanderartistsofhis generation,Nona’s workwaschosenfromover 300entries submittedintheaward. Telstra has beenamajorsponsoroftheBanksiaEnvironmental Awardssince1993andin2007/08wecelebrated14yearsof partnership.TheAwardsacknowledgeexcellence,dedication andleadershipin areasthatcontributetotheenvironmentand asustainable future.Throughtheawards programtheBanksia Environmental Foundationaimstoraisetheprofileofthe currentenvironmentalissues facingAustraliaand recognise thosewhose initiatives areanencouragementand an example forotherstofollow.In2007,Telstrasponsoredtheinaugural environmentalPeople’sChoiceAward,whichwaswonby TheFalls Festival– TheGreenestFestivalinAustralia. TheTelstraBusinessWomen’sAwardshavebecomean integralpartoftheAustralianbusinesscalendar.Theawards area showcaseofsuccessfulwomenandprovidea powerful platformtohelpredresstheongoingunder-representationof womenin managementranks.Telstrahas proudlysponsored theseawardssince1995,celebratingtheachievementsof a diversegroupoftopAustralianbusinesswomenandpromoting thevaluablecontributionwomenmaketothebusinesssector andthewidercommunity. The2007TelstraAustralianBusinessWomanoftheYearwas LeannePreston.Herinnovativecompany,WildChild,isnow aninternationallysuccessfulbusiness. In2008TelstrasponsoredtheTelstraEnvironmentAwards, throughwhichNetworkTenrecognisesandrewardsthe individualsandcommunitiesthatareworkingat alocallevel toprotecttheenvironment,reducegreenhouseemissionsand ensureasustainablefuture.Theawardsareopentoschools, individuals,communitygroupsandsmallbusinessesacross Australia.Therearemonthlyprizesof$2,000ineachstate and an annualprizeof$5,000 forthemostsignificantcommunity environmentprojectineachstate. Planned actions for 2008/09 • Improvetherelevance,transparencyandaccessibility of Telstra’scorporateresponsibilityinformationon Telstra’s website. • ConductareviewofTelstra’shumanrightsposition and practicestoassessperformanceagainst international standards. • Introduce feature sectionson nowwearetalkingto provide aplatformfor publicdiscussion and debate about the environment and the NationalBroadband Network. • Reduce paper consumption by continuingto transform our supply chain operations to effective,electronic business,including online drafting and execution of contract documentation. 1.Society matters HollyKramer,GMDTelstraProductManagementandTelstraBusinessWomen’s Awards ambassador,MargotSpalding,2006TelstraAustralianBusinessWoman oftheYear,LeannePreston,winner2007TelstraAustralianBusinessWomanof theYearAwardwithSolTrujillo,TelstraCEO.
    • 2Communities matter Telstra is actively involved in the communities in which we operate. Geoff Booth,Group Managing Director, Telstra Country Wide AsAustralia’sleadingtelecommunicationsproviderandone of itslargestcompanies,weknowthepositiveimpactourbusiness canhaveoncommunitylifeandwellbeing.Withcustomers, employeesandoperationsrightacrossAustralia,Telstratakes anactiveinterestintheissuesfacingallAustralians,fromthe capitalcitiestotheremotestpartsofourcountry. AstheheadofTelstraCountryWide®,andaDirectorofthe TelstraFoundation,Ihaveakeenanddirectinterestinour communityactivities.Telstracontinuallystrivestoimprovethe deliveryoftelecommunicationstohelpbringAustralianscloser togetherbybreakingdownthetyrannyofdistancecreated by oursmallpopulationandlargelandmass.Inaddition,weare alwayslookingforwaystomakeapositivecontributionto Australia’ssocialandcommunitywellbeing,whetherit’s throughourstrategicphilanthropy,communitybusiness partnerships,localsponsorships,disasterrelieforcommunity engagementinproductandservicedevelopment. Allbusinesses,especiallylargeenterprisessuchasTelstra, haveanimportantroletoplayinstrengtheningcivilsociety andsupportingcivicleadership.We dothisbycontributing ourresources–people,money,technology,products,services andinformation–tosupportthecommunitiesin whichwe workandlive,theircivicleaders,andsocietyasawhole. Wehavethegreatestimpactbydoingthisin areaswhere Telstrahastheexpertiseandresourcestomakeadifference. WhenAustraliaishitbydevastatingnaturaldisasters,Telstra’s communicationstechniciansareamongthefirstonthescene toassistemergencyandessentialserviceorganisationswith theircontingencycommunicationneedsandtorestore telecommunicationsservicestoourcustomers.Ourphilanthropic and community business partnership endeavours use information and communication technologiesto enhance socialinclusion and improve the health and education outcomes for individuals,families and communities across Australia.We share the knowledge and expertise of our employees tohelp build the skills and capacity of local enterprisesand communities. We are also committed to addressing the needs of those most disadvantaged in society.The programsof the Telstra Foundation’sCommunity Development Fund aimto assist children and young people who are socially or geographically isolated,and include a strong focuson improving the health and education outcomesof Australia’sIndigenouschildren. In 2008,Telstra participated inthe London Benchmarking Group’s process for the second year.London Benchmarking Group Australia/New Zealand is abusiness membership organisation that providesaframework for membersto measureandbenchmarktheircorporatecommunitycontribution. As an indication of the level of our commitment and the breadth of our activities,Telstra’s 2007/08 contribution was valued at $29.2 million. Telstra promotes its community support programs to its employees as ithelps demonstrate that wetake our social responsibility seriously,and helps engender pride and loyalty in the organisation.To be involved inand understand the communitiesin which we operate isgood for civiclife and the future prosperity of Australia,which isultimately good for Telstra.
    • Disaster relief Each yearAustralia ishitbydevastatingbushfires,floods, cyclonesandothernaturaldisasters,destroyingthehomesand impacting thelivelihoods ofmanyAustralians.Whendisaster strikes,Telstra’s firstpriorityistoassisttheemergencyand essentialserviceorganisationswiththeirtelecommunication requirements.Typically,ourcommunicationstechniciansare among thefirsttoenterdisasteraffectedareastorestore telecommunicationsservicestoourcustomersasquickly aspossible.Telstra alsooffersreliefpackagestoaffected customers.VolunteerandFirstResponseLeaveisavailableto our employees,whichenablesthemtovolunteertoprovide criticalservices fortheprotectionoflifeandproperty. Telstra is proud ofitslong historyofrespondingtocommunities affectedbynatural disastersinAustralia,andtonaturaland civil disasters thatoccuroverseas.Telstra’sDisasterReliefPolicy ensures thetimely andeffectivedeliveryof supporttoaffected customers andcommunities. Overthe2007/08 yearTelstraprovidedrelieftocustomersand communities affectedbythefollowingnaturaldisasters: • bush firesin WillungainSouthAustralia,and inParkerville andStonevilleinWesternAustralia; • floodsinthecentralandnorthcoastofNewSouthWales; • floodsinEmerald,Rockhampton,Mackay,Charleville, Gold Coast,Beenleigh,Jimboomba,Beaudesert, Rathdowney,Boonah,Clifton,Allora,Warwickand KillarneyinQueensland; • cycloneNargisinMyanmar(Burma);and • theearthquakeintheSichuanProvinceinChina. Lending a Helping Hand Casestudy Withtheupgradeofnab’sdesktopcomputerfleet, TelstraEnterpriseandGovernment’snabAccount Teaminpartnershipwithnabusedthedecommissioned technologytoaddressanimportantneed. Inamovethathasbothenvironmentalandsocial benefits,thepartnershipdevelopedtheHelpingHand projecttomanagethedisposalofthetechnologyto supportdisadvantagedcommunities. Sincetheproject’sinceptionin2007,over3,400desktops andalmost300 laptopshavebeendonated,aswellas otherequipmentsuchasprinters,routersandswitches. Donationshavegonetolocalorganisationssuch as Yooralla,theReachFoundationandtheOpeningthe DoorsFoundation.ThroughtheReachFoundationthe projectundertakesinternationaldonations,withdevices goingtoorphanagesandschoolsinMali,Vietnam, EastTimor,Cambodia,Fiji,PapuaNewGuineaandIndia. Oneoftheproject’slargestdonationsistotheWired Community@CollingwoodprojectinVictoria,runin conjunctionwithInfoxchangeAustralia.Thisprojectwill deliverbroadbandandcomputeraccesstoresidentsof the Collingwoodcommissionflatsandcloseto1,000 Helping Handdesktoppersonalcomputershavebeendonated. TheHelpingHandprojectaimstodonatearound 4,000 desktopsand250laptopstocommunitiesand organisationsin2008/09.Asapartoftheircontribution toWiredCommunity@CollingwoodTelstravolunteers, inconjunctionwithnab,willtraintheresidentssothat theyhavetheskillsandknowledgeneededtomaximise theuseoftheircomputer. 29
    • 30 Reliefpackages Telstra’s reliefpackages aredeterminedby thenatureandscale of thespecificevent,are availableforthetimeittakesTelstra to restoreservices totheaffectedcustomersorforaspecified period,andcanincludesupportacrossacombinationof: • freecalldiversion fromanaffectedhomephoneservice toa fixedormobileserviceofthecustomer’schoice, regardless ofthecarrier; • translation ofcallcostsfrommobilephonerates to fixedphoneratesforcustomerswhosefixed home phonesare affected; • adedicatedemergencyassistancehotlinetoassist customersaffectedbythedisasterwiththeir telecommunicationsserviceneeds; • cancellationofafixedphoneand/orBigPondinternetservice withafreereconnectionwithin12monthsforcustomers whosehomeshavebeenaffectedbythedisaster;and • aone-off$50credittoeligibleTelstramobileservices customerswhose homeswere affectedby thedisaster andwhodidnothaveafixedphone. Ourassistancecontinuesforupto12monthsforthosewho losetheirhomestothesedisasters. Internationalresponse The supportweprovidewhendisastersoccur internationallyis dependantonthelocationandnatureoftheevent.Inmany instances,itis notpossibletousetelecommunicationsaftera disaster,and oftenit isessentialthatservicesbeleftfreefor emergencyresponse requirements.Telstraalsoconsiderseach situation intermsofwhetherwehaveanoperatingpresencein the affectedareaorwhetherwehaveasignificantcustomeror employeebase with anassociationwiththearea,orboth.Our assistanceusually focusesontheprovisionof free callsfor customers hereinAustraliatomakecontactwithandconfirm thesafetyoffamilyandfriendsintheaffectedareas. Community business partnerships ThroughourcommunitybusinesspartnershipsTelstraprovides muchneededproducts,services,skillsandexpertisetosupport theworkofnot-for-profit,charityandcommunityorganisations. Weseektodeveloppartnershipsthatreducetheimpactsof socialandgeographicisolationorincreasesocialinclusion, withafocusonhealth,employmentandeducation. Communitybusinesspartnershipsdeliverbenefitsnot onlytothepartneredorganisationanditsclients,butalso toouroverallreputationandlong-termbusinesssuccess. In2007/08 Telstrasupportedthefollowingongoingcommunity businesspartnerships: • onTrac@PeterMac–SupportedbyTelstrasince2004,this programdeliversclinicalservicesandresearchesbest- practicecareforadolescentsandyoungadultswithcancer. Telstraprovidesvideoandvoiceconferencingsolutions and NextG™wirelessturbocardstoenabledeliveryofsupport andservices.Thisyearthereachoftheprogramwas extendedtoregionalpatientsviaatrialfocusedonthe LoddonMalleeareaofVictoria. • Cavill+ CoHeartSmart®NPOToolkit– Telstrahas supported Cavill+Cotodevelopadistanceeducationtoolthatbuilds thecapacityofnot-for-profitorganisationstoform partnershipswiththecorporatesector.Telstraprovidesvideo conferencingtoenabletheparticipationofnot-for-profit organisationsthatwouldotherwisebeexcludedbytheir inabilitytotraveltoSydneyorMelbourneforthetutorials. • CarnegieMellonUniversityscholarships–Telstra recognisestheimportanceofinvestingin thefuture knowledgebaseofourindustry.Onesuchinvestment sawTelstrafund15InformationTechnologypost-graduate scholarshipstotheCarnegieMellonUniversity,Heinz SchoolAustraliainAdelaide,representingatotal investmentof$1.35millionoverfiveyearscommencing in2008. Telstra’s support of programs such as this reflects its commitment to Australia’s future information technology skillsand capability and providesan excitingopportunity for postgraduate IT studentsin Australia. • Mobile Tracking Young People’s Experiences Program – Telstrahasworked with the Centre for Adolescent Health, Murdoch Childrens Research Institute,for three years to help develop and apply a tool that uses mobile technology to improve diagnosisand treat depression in youngpeople. Through our supplier ZTEwe provide mobile phones.Telstra has also set up pre-paid accounts and deliver the SMSon the Telstra mobile network at no cost to the patients,to ensure no-one isexcluded fromparticipatingin the trial. In 2008 the program wasextended to include patients and generalpractitioners(GPs)fromthe Bendigo region. Telstra Foundation The Telstra Foundation delivers Telstra’s corporate philanthropy program and isthe cornerstone of our community investment strategy.The TelstraFoundation identifiesand providesfundingto projectsthat reflect its priorities –backing social innovation,using information and communication technologies,building the capacity of community organisationsand havingameasurable impact. The focusison the future,which iswhy the TelstraFoundation supports arange of projects that seek to make apositive and lastingdifference to the livesof children and youngpeople. Operatingtwo grantsprograms,the TelstraFoundation Community Development Fund and Telstra’sKidsFund, the TelstraFoundation hasfinancially supported over 4,400 projectsto the value of $25.6 million since itsinception in 2002. The Community Development Fund supports community organisations to deliver projects with one purpose inmind – to connect children and youngpeople to their communities. To achieve this,the Community Development Fund has three focusareas: 2.Communities matter
    • • Social Innovation GrantsunderpintheTelstraFoundation’s focus ontechnologyandsocialconnection; • Indigenous CommunityDevelopmentsupportsprojects thatimprovetheeducationalandhealthoutcomesof Indigenouschildrenandyoungpeople;and • Spotlighton CyberSafetyfocuses onprojectsthathelp keepchildrensafeonline. Telstra’s Kids Fundisanemployeedirectedgivingprogramthat provides grantsof$1,200tolocalcommunityorganisations that involvetheparticipationofachildoryoungperson directlyrelatedtopermanentTelstraemployees.Telstra’sKids Fund supportsabroad rangeofinitiativesand projectsacross education,sportsand recreation,artsandculture,andthe environment. TheTelstraFoundationaimstoprovideanintegratedrelationship with funded organisations,drawingonthecore competencies of Telstra toofferadditionalsupportincludingtechnical expertise,leadershipandmanagementskillsandkeyresources. In2007/08,over$3.9 millioninfundingwas providedthrough the Telstra Foundation tomorethan667projectstohelp connectchildrenandyoungpeopletotheircommunities. Thisincluded: • $1,000,500 in SocialInnovationgrantstosupportseven new projects; • $784,221inCyberSafetygrantstosupportfournewprojects; • $930,000ingrantstosupport12ongoingIndigenous CommunityDevelopmentprojects; • $485,500 ingrants to11ongoingcommunitydevelopment projects;and • 631Telstra Kids Fund grantstotalling$749,328madeto supporttheactivitiesofsportingclubs,communitygroups andschools acrossAustralia. “This project aims togive these students a boost using acomputer program that has had proven success with disadvantaged children inCanada.We hope that with rigorous testing and research wecan have the same outcomeshere in Australia.” Originally designed by ConcordiaUniversity in Canada, Abracadabra! is aproven interactive web-based software program that engages children and improves base literacy skills– includinglisteningand readingcomprehension, letter-sound knowledge and phonologicalblending. The research teamispilotingthe software duringthe first two years and will make the necessary adjustments to ensure it issuitable for early learners inthe NT,including Indigenousstudents.The teamwillimplement,evaluate, refine,test,and conduct small-scale experimentsin a number of schools,gradually scaling the project upover three yearsasthe programdemonstratesitseffectiveness. “The generous support of the Telstra Foundation has been pivotalin gettingthisproject off the ground,”Tesssaid. Abracadabra! The Telstra Foundation is helping NT kids read Casestudy ThankstotheTelstraFoundation,Indigenouschildrenin theNorthernTerritoryarebenefittingfromabitofmagic – Abracadabra!InNovember2007theTelstraFoundation announcedits$750,000supportofauniquereading, writingandlearninginteractivesoftwaretoolthatwill helpIndigenousprimaryschoolchildrenimprovetheir literacy skills. SpeakingattheannouncementinDarwin,GeoffBooth, TelstraFoundationDirectorandTelstraCountryWide Group ManagingDirector,saidthattheTelstraFoundationwas committedtoconnectingchildrenandyoungpeople to their communities,andliteracyskillswereakey partofachieving thisaim. “Thisgrant,whichisoneofthelargestgivenbythe Telstra Foundation,demonstratesourcommitmenttohave a significantimpactonsociallyandgeographicallyisolated children.Theuseofthisinnovativesoftwarehas been proven toassistchildreninsimilarsituations,andwe’reabsolutely thrilledtobepartofsuchimportantwork,”Geoffsaid. Projectleader,AssociateProfessorTessLea fromthe School forSocialandPolicyResearchatCharlesDarwinUniversity, saidthatdespitespecificattemptstoimproveliteracyskills in fourtoeight-year-oldIndigenouschildreninrecentyears, statisticsindicatedtherewasstillasignificantproportion thatwerefailingtolearnbasicreadingskills. “EducationoutcomesforAboriginalpeopleinnorthern Australiaareconsistentlybelowminimumliteracyand numeracybenchmarklevelsacrossalllevelsofschooling,” Tesssaid. ChildrenfromtheLudmillaPrimarySchoolinDarwin enjoytheAbracadabra!Program. 31
    • 32 In2007/08,theTelstraFoundationCommunityLeadership Program was developedandpiloted.Thisnewinitiativeisa capacity building programthatlinksTelstraexecutives with leadersfromcommunityorganisations.TheTelstraFoundation isworking inpartnershipwithSocialVenturesAustraliato deliverthis program. For moreinformationontheTelstraFoundation’sprograms visitwww.telstrafoundation.com.au Sponsorship Telstrais oneofthelargestcorporatesponsorsinAustralia andourdiverserangeofsponsorshipstouchAustraliansfrom allbackgroundsandcommunitiesrightacrossthecountry. Telstra isproudofthepartitplaysinsupportingAustralia’s rich culturalheritageanddevelopment. In 2007/08,Telstra providedsponsorshipofthefollowing events andprograms: WWF–Australia InNovember2007,Telstraannouncedanewpartnership with WWFAustralia.TheWWFBuildingNature’sSafetyNet program aims todrivetheincreasedacquisitionofprotected areastoestablish safehavensforAustralia’swildlifeandhelp themcombattheimpactsofhabitatlossandclimatechange. Aseries ofTelstra-fundedcommunityserviceannouncements weredevelopedfortelevision,radioandprintmediato highlight theplight ofmanyofournativeanimals,withsome of thehighestendangermentandextinctionratesintheworld. The advertisements featuredtwodistinctivethreatened Australiananimals – thewombatandmarineturtles. TelstraAssistanceFund Withamissiontohelppeopleachievesuccessin theirchosen sport,theTelstraAssistanceFundprovidesassistanceatthe mostfundamentallevelbyprovidingmuchneededequipment tosportandcommunityclubsacrossAustralia.Overthepast fiveyears,theTelstraAssistanceFundhas contributedover $5millionworthofsportingequipment,fromfootballsand swimmingaidestorescuetubesandboards,tomorethan 4,000sportsandcommunityclubs.InJune2008theTelstra AssistanceFundprovidedanother$1.25 millionworthof equipmenttoAFL,rugbyleague,soccer,swimmingand surflifesavingclubsacrossAustraliafromarecordnumber of3,191applications. TelstraRoadtoTamworth Conceivedin2003,theTelstraRoadtoTamworthcompetition isanationwidetalentquestofferinga$140,000 prizepackage forthewinnerandthechanceofalifetimeforaspiring musicians.Finalistshavetheopportunitytoperformin Tamworthwiththeoverallwinnergoingtothehomeof countrymusicinNashville,Tennesseetorecordtheirdebut singleandlaunchtheircountrymusiccareer.Thecompetition’s bestaspiringsongwriteralsoheadstoNashvillethroughthe SongwritersEncouragementAward.The2008competition involvedaseriesof20heatsstagedacrossregionalAustralia. Heatwinnersreceived$1,000toassistwiththeirtravelto Tamworthforthecompetition’sgrandfinal,stagedduringthe TamworthCountryMusicFestivalinJanuary2008.Thisyear’s winnerswereJasmineRae(TelstraRoadtoTamworthAward) andMarkWells(TelstraRoadtoTamworthSongwritersAward). TheAustralianBallet Telstra’s partnership with the Australian Ballet has been running for 24 years.It isone of the longest running arts sponsorships in the country.The sponsorship includes the annual Telstra Ballet Dancer Award,which recognises the exceptionaltalent of youngperformerswith the Australian Ballet,not only for their creative accomplishments,but for their leadership skillsand community endeavours.The 2007 winner of the award wasQueensland soloist,25 year old Daniel Gaudiello.In2007/08,Telstra also made ballet more accessibleto more people via its sponsorship of free outdoor performances inMelbourne and Brisbane which attracted over 7,000 people at each event. TelstraDevelopingAthletesGrantScheme The Telstra Developing Athletes Grant Scheme allocates $50,000 funding toyoung athletes identified by the Australian ParalympicCommittee’sTalent Search Programashavingthe potentialto represent Australiaat the 2008 BeijingParalympic Games,the Vancouver 2010 Paralympic Winter Games or the London 2012 Paralympic Games.This year,100 grants were provided to Australia’smost promisingathletes. 2.Communities matter ZanesHolmes(ironman),JasonStevens(formerrugbyleagueplayer),JohnAloisi (Socceroo),BrookeHanson(formerOlympicswimmer)andBenDixon(formerAFL star)withtheirjuniorcounterpartsatthe2008TelstraAssistanceFundlaunch. Making apositiveandlastingdifference to the livesofchildrenandyoungpeople
    • TelstraBeachtoBushSurfSafetyProgram ThroughoursponsorshipofSurfLifeSavingAustralia,the Telstra Beachto Bushprogramtravelstoregionalcommunities inAustralia teachingschoolchildrensurfandlocalwaterway safetylessons.In 2007/08theprogramresultedinover 45,000 childrenparticipating intheprogramfrom over 330regional schools,andaimed tocombatsurflifesavingstatisticsthat revealedthatthosewholivemorethan50kilometresfrom thebeachareoverrepresentedindrownings. For moreinformation onTelstra’scommunitysponsorship program visitwww.beinvolved.telstra.com Volunteering AtTelstrawebelieve thatoneofourmostimportantcorporate responsibilitiesistovoluntarilycontributeresources,people, technology,infrastructure,productsand servicestosupport thecommunitiesinwhichweoperate.Volunteeringhas been creditedtogiving ourpeopleadditionalandtransferableskills, increasing our company’sstandinginthecommunity,and improving workforcemoraleresultinginimprovedrecruitment andretention.Italso providesthecommunitywithmotivated andskilledvolunteersthatcanextendthecapabilitiesofnot- for-profitorganisations. Telstra promotesand facilitatesvolunteeringopportunities foremployees,and encouragesemployeestovoluntarily participateinactivitiesthatsupporttheorganisations, charitiesorcommunitygroupswithwhichtheyareconnected. Instrumental inhelping the Morsecodians share Back to Morse Code Week were Sue Lamshed,Telstra’sCorporate Affairs Manager and Belinda Harris,Customer Service Specialist,inSouth Australia,and Jane de Gault,Telstra’s Corporate AffairsManager in the Northern Territory. Suesaid that the team saw the importance of celebrating our telecommunicationspast and reminding people of howfar we have come. “We had alot of fun pulling together the historic material that celebratesand shows what Australians inthe 19th century used to communicateover longer distances.It is amazing how much progress has been made since the 1870s,”Sue said. Telstra’s Community Investment area financially supported Back toMorse Code Week this year and valuable assistance wasprovided on the ground from the Telstra teams in Adelaide,Alice Springsand Darwin. Step back in time Casestudy Australia’stelecommunicationshistorycelebratedanother milestoneinJune2008,withBacktoMorse CodeWeek in SouthAustraliaandtheNorthernTerritory. TheMorsecodianFraternityofSA andNT,inconjunction with TelstraandtheMyerCentre,invitedSouthAustraliansand TerritorianstoexperienceMorseCodethroughalive exhibition andmessagesbeingsentoverthefirstelectriccommunications linkjoiningAustraliatotherestoftheworld–the Overland TelegraphLinefromAdelaidetoAliceSpringsandonward toDarwin. SirCharlesTodd,SuperintendentofTelegraphs,influenced theSouthAustralianGovernment,independentofthe other states,tobuildtheOverlandTelegraphLinefromPort Augusta toDarwintoconnectwithanunderseacabletoLondon back inthe1870s.Whenthehistoriclinewas completedon 21 October1872,AdelaidebecamethehubforAustralia’sfirst speedycommunicationslinkwiththeworld. TheMorsecodiansentertainedvisitorsattheMyerCentre TelegraphStationinAdelaide,theLyonsCottageTelegraph Station(originallytheBritishAustraliaTelegraphCompany cottage)inDarwin,andtheHistoricOldTelegraphStation inAliceSprings,withtelegramsbeingsentbetweenthe destinations. LaurenceWallace,Morsecodian-extraordinaireinAdelaide, wasinstrumentalinhelpingcelebrateBacktoMorse Code Week.Laurence’svisionwastoshowcasecommunications fromthe19th centuryhistoricOverlandTelegraphtothe 21stcenturycommunicationsoftoday–includingNext G™, mobilesandbroadband. “WiththeassistancefromtheteamatTelstra,wehave been abletoshowthosewhovisitedtheBacktoMorseCode Week exhibitionintheMyerCentreatAdelaidehow far telecommunicationshaveadvancedovertwocenturies,” Laurencesaid. LawrieWallacesendingaMorseCodeTelegram,June08. 33
    • 34 Volunteeractivities ofTelstra’speoplein2007/08includethe following: ‘Yabber’–Telstra’speopleportal Telstrapeoplearean inventive,caringandmotivatedgroup involvedineveryaspectofAustralianendeavour.Thisyear, ‘Yabber’–Telstra’s intranetpeopleportal–was introduced asaplacewhereouremployeescan telltheirown storiesand celebratetheirachievements.Yabberprovides an opportunity forall employeestosharetheirtriumphs,personalchallenges andpassions,aswell askeepingstaffupdatedwiththelatest TelstraFoundation,corporateresponsibility,sponsorshipand Diversity@Telstra activities.Everyweek,thesiteisupdated with new stories,and oncea monththestoriesand newsare collatedintoanelectronicnewsletterthatissentdirectlyto Telstra peoplevia email. LegalServicesCommunityContribution Telstra’s LegalServicesgrouprunsitsowncommunity contribution projecttoprovidestaffmemberswithleadership skillsandopportunitiesto“giveback”tothecommunity. Inadditiontoone-offcharityfundraisingactivities,key ongoing volunteeringinitiativesinclude:along-running programtutoring migrantsinEnglishwiththeAdultMigrant EducationCentre;amentoringprogramforhighschool students from ChifleyCollegeinWesternSydney;anda CyberVolunteeringprogramwherestaffprovideanswers tolegal problems sentviaemailfromchildren throughout Australia fortheNationalChildren’sandYouthLawCentre. World’sGreatestShave Currently,morethan30,000Australiansare livingwith leukaemia,lymphomaormyelomabutonlyfouroutof ten adults survive.ThemoneyraisedfromtheLeukaemia Foundation World’sGreatestShavedirectlysupportspatients andtheirfamilies.Telstra employeeshavebeeninvolved intheWorld’sGreatestShaveforeightyears.Thisyear, 32employees frombusinessunitsacross thecompany registeredfortheWorld’sGreatestShaveand raised $34,000 forthe LeukaemiaFoundation.MichaelLewisfrom TelstraOperationscoordinatesTelstrastaffparticipation,and saysthatTelstraisoneofthetopfive LeukaemiaFoundation donorgroupsinVictoriaandamongstthetop30nationally. PerspectivesonParkinson’s SeniorCommunicationsAdvisorNerissaMapes was diagnosed withParkinson’sdisease–adegenerativeneurologicalcondition usuallyassociatedwithelderlypeople–atonly28.Facinga lifelongbattle,Nerissaestablishedafoundation,Perspectives onParkinson’s(POP)withaverycleargoalinmind– acurefor Parkinson’sdiseaseinherlifetime. AfterappearingontheABC’s7.30 ReportinDecember 2007 Nerissawasoverwhelmedbytheencouragement anddonationsfromtheTelstracommunity.Nerissakeeps employeesuptodatewiththelatestPOPnewsthroughYabber. Shehasraisedaround$47,000 forresearchundertakenby theHowardFloreyInstituteandeducation,counsellingand awarenessactivitiescoordinatedbyParkinson’sAustralia. Seewww.pop.org.auformoreinformation. PortRiverDolphins InApril2008,theteamatBigPondinAdelaidedecidedtoplay apartinprotectingthePortRiverdolphins.Everyyearmany ofthedolphinsarekilledandinjuredthroughboatingaccidents anddeliberateshootings.Withcorporatesupport,theareahas beendeclaredasanctuaryandisnowregularlypatrolledby governmentrangers.TheBigPondteamhaveadoptedtwo ofthedolphinsandparticipateinfundraisingeventstohelp protectthedolphinsandtheirhabitat.Centremanager NicCaniouandemployeeengagementleadMichaelSparks seethisasagreatopportunityfortheteamtocontribute tothecommunity. WorldofWork–WOW! In 2007/08,the Telstra Foundation hosted seven events as part of the Education Foundation’s World of Work (WOW) program.WOW buildsyoungpeople’scapacity to effectively participate in the global world of work.With afocus on young people from socially and economically disadvantaged communities,WOW takesgroupsof 25 Year 9 and 10 students from Victorian state secondary schools into companies in Melbourne’sCBDto explore the question“What doesit take to succeed?” Over the year,thirty-five Telstra staff volunteered their time to participate in forumsthat exposed studentsto new learning opportunities,introduced them toTelstra’s leading technology and put their networkingskillsto the test. RMITBusinessMastersProgram Forthethirdyearrunning,Telstrahostedgroupsof25 studentsofRMIT’sBusinessMastersProgramfor12weeks oftheirsemesterprogram.Thesessionsprovidedpractical insightintothemanagementandimplementationofcorporate responsibilitybycorporationsacrossAustralia,andspecifically byTelstra.DrPhilBurgess,GroupManagingDirector,PublicPolicy &CommunicationsandMariaSimpson,ManagerCorporate ResponsibilityandCommunityInvestment,assistedwiththe reviewandmoderationofstudents’finalresearchprojects. 2.Communities matter Telstrapeopleareaninventive,caring and motivatedgroupinvolved in every aspect ofAustralianendeavour
    • TelstraHistoricalCollection Telstra’s historicalcollectionconsistsofthousandsofartefacts, photographs anddocumentsrepresentingthedevelopment of telecommunicationsinAustraliaoverthepast150years andthesignificant role Telstraanditspredecessorsplayedin this.Thecollection is managedbysmallgroupsofdedicated volunteerswho arepassionateaboutthecontributionmade bythePost MasterGeneral’sDepartment,Telecomand Telstra toAustralia’s socialandeconomicdevelopment. The volunteersspendhundredsofhoursoftheirtimeeach year collecting,fixing,organising,cataloguingand displaying thecollectionfor publicviewing. This yearTelstraChairman,DonaldMcGauchie,visitedthe Bankstown andHawthornmuseums,thefirstTelstrachairman todoso.Telstra organisedfor thecollectiontobeconsolidated inJanuary underthesupervisedcareofthethree museum locations inClayfield(Qld),Bankstown(NSW)and Hawthorn (Vic).LocatedinTelstrapremises,somerefurbishmentofeach museum continuesbyTelstra’sFundamentalPlanninggroup. The SydneyMajor MetroteamprovidedtheBankstown volunteerswith aTelstrabrandedcanopyfortheirtrailerto betterprotectartefactsand materialstransportedtovarious displaysandactivities. Planned actions for 2008/09 • Developand pilot anemployeematchedgivingprogram todonatefunds tocommunityorganisationsnominated byTelstra employees. • Provide over$3.5 millioningrantsthroughtheTelstra Foundation tohelpcommunityorganisationsconnect childrenandyoungpeopletotheircommunities. “We’reinvesting heavily in world-class development programs for our managers and leaders.I’m delighted that sixparticipantsin Telstra’sExecutive Leadership Program are takingthisunique opportunity to act asmentors. “The program will help develop their strategic leadership capabilities byplacing them inadifferent and challenging leadership environment. “It’s also awonderful opportunity for the sixnon-profit organisationsinvolved to gain support and strategicadvice, aswell asto form asolid relationship with Telstra and the broader corporate community,”Andreasaid. “We are really pleased that the Telstra mentors who areinvolved in this program have come from such different areasof Telstrato be part of thisTelstra Foundationprogram.Webelievebycreatingthisprogram, it will provide vital knowledge that will benefit the individuals involved,their organisations and the entire community,”Georgiasaid. Connecting hearts,heads and the community Casestudy SixseniorTelstraexecutiveshavementoredsixnon-profit leadersthankstoaninitiativelaunchedbytheTelstra FoundationinNovember2007.TheCommunityLeadership Programprovidessupport,encouragementandasounding boardtonon-profitleadersastheyhelptheirorganisations grow,whilealsoprovidingtheTelstraexecutivesan opportunitytohelpcreatebettercommunities. Thenewprogram,deliveredinpartnershipwithSocialVentures Australia,isbuildingimportantseniorlevelrelationships betweenTelstra’scorporateleadersandtheirnon-profit counterparts.Therelationshipsareofferingtransformative andenergisingexperiencesthatgivebothTelstramentors andnon-profitleadersanewsenseofhowbusinessand communityorganisationscanworktogethereffectively. “ThisisagreatprogramthatallowsTelstraexecutivesto connectwiththeirheartsandheadstothecommunity, whichisarareexperienceandonethatwillbebeneficial to boththementorandthecommunityorganisation,”Georgia Symmons,NationalManagerTelstraFoundationsaid. “Thenon-profitorganisationsinvolvedareourSocial InnovationGrantsrecipients.TheTelstraFoundation knows thatmorethanmoneycountswiththenon-profitsector, andherewe’vebeenabletofacilitatebothfundingforprojects aswellasaccesstothetalentandexpertiseofourleaders withinTelstra.” Telstra’smentorshavebeenpartneredwiththeRoyal Children’sHospitalFoundation(Qld),StLucy’sSchool(NSW), NovitaChildren’sServices(SA),InspireFoundation(NSW), MurdochUniversity(WA)andCharlesDarwinUniversity (NT). SpeakingatthefirstmeetingoftheCommunityLeadership Program,AndreaGrant,GroupManagingDirectorHuman Resources,saidTelstrahas identifiedleadershipcapability asbeingcriticaltothesuccessofourtransformation. DrTessLeafromCharlesDarwin UniversitywithJulesScarlett,Director CorporateSecurityandInvestigation, Telstra–participantsinthe CommunityLeadershipProgram. 35
    • 3Employees matter Telstraisproudtoofferasafeandsupportive environment,whereemployeesarevaluedand havetheopportunitytoreachtheirfullpotential. Andrea Grant,Group Managing Director,Human Resources TelstraisoneofAustralia’slargestemployersofferingarange ofcareeropportunitiesacrossmultipledisciplines.Withadiverse andculturallyrichworkforce,Telstratakesitsresponsibilitiesto itsemployeesseriously.Providinggoodjobsatgoodwages is afundamentalcorporateresponsibilityprincipleatTelstra. Wearecommittedtoprovidingsafe,equitableandsupportive workingconditionsforourpeopleandcreatingacultureof opportunity–onethatgiveseveryemployeeanopportunity tomakeaneffectivecontributionandtopursuetheir ambitions.Creatingasafeandengagingworkingenvironment, where ourpeoplearevalued,respectedandwell-rewardedleads toimprovedproductivity,profitabilityandreputation. Ultimatelythisalsoprovidesgreatervaluetoourcustomers andshareholders. Addressingissuessuchasemployeeengagement,diversity and work-lifeflexibilityisincreasinglyimportant.AustralianBureau ofStatisticslabourforceprojectionsindicatethat80 percent of futureworkforcegrowthinthenextdecadewillbeinthe group over45yearsofage,andintheyear2020thenumberofpeople leavingtheworkforcewillexceedthatenteringtheworkforce. Telstraisworkingtocreateanenvironmentwherewe canmeet theneedsofemployeesofallagesandattractandretainthe bestpeople.TheworkofourDiversityTeamtoaddresswork-life flexibility,genderandagebalanceiscrucial. Rapidadvancesinthedevelopmentofcommunications technologiesandthecompetitivenatureofourbusinesscreate achallengeforustocontinuetofindtherightpeople. Investing in learning and development provides a means of buildingTelstra’sworkforce to ensure that we have the capabilitiesto deliver the next generation of technologies. The continuous development of knowledge,skills and innovation and the application of these inthe workplace are critical to Telstra’s future success.In 2007/08,we invested over $75 million in learningand development for our employees. World classleadership isalso critical.Our leaders must be able to lead in acompetitive globalenvironment,in an industry characterised byrapid change and complex legal and regulatory requirements.They must be customer focused and sensitive to socialand community responsibilitiesand expectations.Telstra invests ina number of enterprise-wide programs tobuild leadership capability,including Frontline Leadership and Executive Leadership programs. In May 2008,we sawthe half-way point in Telstra’sfive- year transformation.Our people are fundamental to this transformation and as we continue the journey it’s important that employees have‘enough fuel in the tank’to deal with the opportunities and challenges that come their way.Telstra offers year-round support to employees through arange of mentalhealth and resilience programs.We take aproactive and holistic approach to support the health and wellbeing of our employees and are proud to havebeen recognised this year for our leadership in mental health issues in the workplace by the MentalHealth Councilof Australia.
    • 37 Asacompany,themostimportantthingwe cando for our employees andtheirfamiliesistoprovidesecuritybybuilding onoursuccesses andensuringTelstra’slong-termfuture. Wearedeterminedtocreateanorganisationthatisa great place towork,thatrewardsperformanceandoffers terms andconditionsthatattractandretainthebestpeople. Building a world class talent base Employment Asat30 June2008,Telstraemployed46,649fulltime equivalentemployees,agencyandcontractorstaff including staffemployeddirectlybyTelstraCorporation, our domestic controlled entitiesandouroffshorecontrolled entities.This equatestoa decreaseof2.5percentor1,191full time equivalent employeesduring2007/08.Thedecreaseis mainlyattributabletoTelstra’sTransformationstrategy. Thereare31,102Telstra-paidstaff,whichexcludescasual staff,allcontrolled entity-paidstaff,agencyand contractor staff.TheTelstra-paid staffdefinitionisusedin ourreporting of diversity,performancemanagement,employee engagementandhealth,safetyandenvironmentstatistics inthisreport. Workforcestatistics Total workforce 46,649 Fulltime,parttime,casual, agencyandcontractor FTEstaff inTelstraCorp domestic and offshorecontrolledentities Fulltimestaff andequivalents 42,784 Totalworkforceminusagency andcontractorstaff Domestic fulltimestaff 33,982 FulltimestaffinTelstraCorp anddomesticcontrolledentities, includingSensis Telstra-paid staff 31,102 Fulltimeandparttime staff paid byTelstraCorp,excludes casual staff,allcontrolledentity-paid staff,agencyandcontractorstaff Around65percentofemployeesareemployedunder commonlawcontracts,AustralianWorkplaceAgreements andIndividualTransitionalEmploymentAgreements. Theremainderisemployedundercollectiveagreements. 70percentofemployeesonindividualagreementscan receiveperformanceincentivepayments. Employeebenefitsandarrangements Telstraprovideshighlycompetitiveandattractive remunerationpackages,atorabovetheminimumlegal requirements.Telstracomparestheremunerationofour employeesagainstrelevantmarketdatatoensurewe remunerateemployeesfairlyandequitably. TheprinciplesunderlyingTelstra’songoingdevelopment ofemploymentarrangementsincludeenhancingemployees’ capacitytomeetcustomerneeds,rewardingexcellent performance,attractingandretainingemployees,supporting transformation,improvingflexibilityandcontinually growingproductivitythroughperformance-based remunerationandrewards. Telstraofferschoiceandflexibilitythroughsalarypackaging toeligibleemployeestohelpthempackageoptionstosuit theirparticularcircumstances.Salarypackagingoptions includeOwnShare(theopportunitytopurchaseTelstraShares onapre-taxbasis)andacomprehensivechoiceofotheroptions suchasTelstraproducts,motorvehicles,carparking,health insuranceandfinancialadvice. Anewlookintranetwebportalwas introducedin2007/08 toprovideemployeeswithsimplerandeasieraccess to informationabouttherangeofemployeebenefits.This includesawiderangeoflifestylebenefits,availableto employeesviatheMyRewards@Telstraprogram. TelstraSuper,acorporatesuperannuationfund,alsooffers ouremployeesarangeofmemberbenefitsincludinglow managementfeesandfreefinancialplanningadvice. Telstra continues to provide the Life &Career Transition program,which supportsemployeesfacingalife and career transition arising from redundancy.This program offers access to arange of flexible optionssuch asretirement planning, image consulting and networking,aswell assupport to immediate families. Workplacerelations Akey focus during 2007/08 wasthe development of a robust employment strategy tosupport Telstra’s business transformation and compliance with workplace relations changes.The election of the Federal Labor Government in November 2007 saw the introduction of the Forward with Fairness legislation in March2008.The new legislation abolished Australian Workplace Agreements and introduced Individual Transitional Employment Agreements.Telstra reviewed its individual agreements and policies to comply with the newlegislation. We are committed to resolvingworkplace issuesquickly and fairly.Telstra’sInternalResolution Policy ensuresthat every employee has the right to betreated fairly and to understand the reasonsfor decisionsand actionsthat impact them. In Telstra,there isashared accountabilityto resolve an issue between an employee and the person who acted or made the decision.Our internal resolution process isopen and transparent.Telstra also has dispute resolution or avoidance processesin itscollective arrangements. Telstra respects the right of individuals to be members of a trade union and doesnot discriminate against any employee on the basisof their politicalaffiliationsor beliefs. 3.Employees matter
    • 38 Employeeengagement In2007/08,a censusemploymentsurveyof Telstraemployees wasconducted.Thesurveyprovidesallemployeestheopportunity to express theirviews abouttheirjobs,thecompany,andtheir workingenvironment.Itdeliversinsightintowhatreallyengages people,indicatespeople’salignmenttoTelstra’sdirection,and provides information ontheextenttowhichtheyareenabled toperformtotheirpotentialandcontributetotheongoingsuccess of Telstra.TheEmployeeEngagementSurveycovers eightkey areas:employeeengagement;strategyalignment;results focus;customerfocus;deliverycapability;culturalalignment; strategicleadership;andworkgroupleadershipeffectiveness. Keyhighlights ofthesurveyresultsinclude: • anincrease from82percentto84percent in the numberofemployeeswhoparticipatedinthesurvey; • employee engagementincreasedfrom 73percentto 74 per cent; • scoresincreasedinalleightcategoriesfromthe2006/07survey. Themostsignificant increaseswere intheworkgroup leadershipeffectivenessandstrategicalignmentcategories, wheretheimprovementwasfourpercentinboth; • anaverageincreaseacrossallcategoriesof2.5percent;and • TelstraisperformingatorabovetheAustralianNationalNorm (TowersPerrinInternationalSurveyResearch)andclosing thegapontheGlobalHighPerformingCompaniesNorm. Twonewquestions specifictocorporateresponsibilitywere includedinthis year’ssurvey.Resultsshowedthat: • 39percentofemployeesagreedthatTelstra’scorporate social responsibility performanceisanimportantfactor in theirchoicetoworkhere;and • 78percentofemployeesbelieveTelstraisanenvironmentally responsiblecompany.ThisisabovetheAustralianNational Norm at74percent. Thesefiguresprovideabaselineforfutureemployee surveysandindicateopportunitiesfor improvements inbuildingemployeeawarenessof therangeof our corporateresponsibilitiesandachievements. Recruitment InSeptember2007,Telstralaunchedan in-houseCareersCentre tomanagethecompany’sinternalandexternalrecruitment needs.TheCareersCentreprovidesa one-stop-shopforarange ofservicesincludingrecruitment,assessmentandengagement. Thiscentralisedfunctionwillreducetimespentonrecruitment activities,improvethequalityandconsistencyofstaff recruited throughbettersourcing,selection,engagementandnew starterprocesses.TheCareersCentrewillalsohelpusretain ourtalentpoolbyofferingassistancetothoselookingfor their nextinternalcareermove.In2007/08,1,745newemployees wererecruitedthroughtheCentre. PerformanceManagement Ourannualperformancereviewsystemfocusesonexpected standardsofbehaviour.In2007/08 twonewmoduleswith a focusondevelopingskillsinperformanceplanningandgiving feedbackwerecreatedtosupporttheperformancereview process.In2007/08: • 90 percentofemployeesreportedhavinganannual reviewdiscussion(upbyfourpercent); • 85 percentofemployeesreportedthattheirobjectives alignwiththoseoftheirmanager’s(upby14percent);and • over4,000 employeescompletedanonlinelearning moduletoassistwiththenewreviewprocess. Learninganddevelopment OneofthekeydriversofourTransformationisthe continuousdevelopmentofknowledge,skillsand innovation,andtheapplicationoftheseintheworkplace. Learninganddevelopmentisacriticalactivitythatsupports ourorganisationtodelivertheperformancenecessaryto achieveourTransformationvision. Our learningfunction isstructured so that‘JobReady’ professionals and online learning resources are available when and where they are needed. Formal and structured employee learning and development isoffered via several structured models,leveraging the very best in technology and online learning(Learn.Achieve), partnerships with experts (TelstraLearning Academy),and the development of our leaders (Executive Leadership and Frontline Leadership programs). In October 2007,welaunched the People Leader Engagement Toolkit,aresource to support Telstra employees to develop their leadership capabilities.New programs for Frontline Leadership and Executive Leadership were also developed. Through these new programs Telstra recognises talent,invests in leaders of the future,and enables managers to provide guidance,coachingand support to teammembers. Thisyear’slearningand development achievementsinclude: • an investment in learning and development inexcessof $75 millionrepresentingapproximately$1,626peremployee; • 573,763 online learning courses completed through Learn.Achieve; • 6,500employeesparticipatedinFrontlineLeadership programs; • 60 employees participated inthree Executive Leadership programs;and • 252 newjob-specifictrainingcourseswere developed by the TelstraLearningAcademy. Enhancingdiversityandopportunity Telstraisattheforefrontinprovidingemployment,and informationandcommunicationtechnologyservicesto disadvantagedormarginalisedgroups,includingpeople withdisability,theelderly,peopleofAboriginaland Islanderdescent,andthosefromculturallyandlinguistically diversebackgrounds. 3.Employees matter
    • 39 Having a diverserangeofemployeesbetterenablesus torepresentourcustomerbase,havethehighestquality workforceandbean employerofchoice.Theoverarching principle is thata diverseworkforcedeliversproductivity andincreasedrevenuetothebusiness. Telstra iscommittedtoensuringthatourworkenvironment promotes diversityandisfreeofunlawfuldiscrimination. This principleis reflectedineverythingwedo –from our leadership,performanceand talentmanagement,throughto our business planning,strategicinitiativesandrewardsystems. Ourcompany-wideDiversityCouncil,consistingoffive GroupManaging Directors,ispremisedontheprinciplethat diversityis good forbusiness.Eachmemberof theDiversity Council reports directly totheCEOandchampionsoneof our sixdiversitypriorityareas– agebalance,gender,cultural diversity,work-life flexibility,disability,andsexualorientation andgenderidentity. Eachpriority areais addressed byataskforceofsenior managersresponsiblefortheimplementationofa substantial programofworkthatwillprovidesignificant benefitstoouremployeesand tothecommunityacross thesesixpriorityareas. Employees byagegroup Agerange %oftotalstaff 18– 24years 7.5% 25– 34years 24.5% 35– 44years 32% 45– 54years 26% 55+years 10% Agebalance Telstrahasrecognisedthebusiness-criticalnatureofdemographic change.In some parts of our business,many valuable and knowledgeableemployeesareapproachingthelaterstages of their careers.Often these employees have given many years of valuableservicetoTelstra.Toencouragetheseemployeesto stay and offer more flexibility in howthey choose to work,Telstra hasstartedapilotoftheChoose.CreateprogramintheTelstraServicesand TelstraEnterprise and Government businesses. Theprogramprovidestoolsforemployeesandtheirbusinesses to examine alternative ways of working.Eligible employees areinvitedtoexploreflexibleworkoptions,andlookatbalancingtheir livesoutside of work. Gender In2007/08,womenmadeupjustover30percent(30.62 per cent) of Telstra’s total workforce.The development of our women iscriticaltoTelstra’songoingbusinesssuccessandwe have anumber of new initiatives underway to help improve our performanceinthisarea. InSeptember2007,thesuccessoftheTelstraVirtualWomen’s Network was highlighted by welcoming its 1,000th member within sixmonthsofitstarting.LaunchedonInternationalWomen’sDay in March 2007,the Network currently providesvaluable career supporttoover1,500TelstrawomenfromalloverAustralia.The Network givesTelstrawomen the chance to come together for networkinganddevelopmentopportunities,andtosupport each other to achieve success within Telstra –both for themselves andthebusiness. Workforcediversity 2007/08 2006/07 2005/06 2004/05 2003/04 Telstrapaidemployees 31,102 33,002 34,551 37,087 36,128 Women 30.62% 30.9% 30.56% 30.59% 30.06% AboriginalandTorresStraitislander 0.43% 0.47% 0.56% 0.60% 0.64% CulturallyandLinguisticallyDiverse 5.85% 6.28% 8.75% 9.02% 9.41% People WithDisabilities 1.36% 1.16% 1.35% 2.01% 2.18% 3.Employees matter Havingadiverserange of employees better enablesustorepresent ourcustomerbase
    • 40 3.Employees matter Culturaldiversity Forovertenyears,TelstrahascelebratedourIndigenous communityandtheircontributiontoAustraliaduring NationalAboriginalandIslanderDayofCelebration (NAIDOC)week.In2007/08,Telstra’sfestivitiesculminated inacelebrationdinnertoannouncethewinnerofthe 2007TelstraIndigenousAward.TheAwardrecognisesa Telstraemployeewhoprovidesoutstandingsupportto theIndigenouscommunityortoourIndigenouscustomers. PietaJohnstonfromTelstra’sNationalIndigenous DirectorateinDarwinwontheawardin2007. A newadvisorygroup,theIndigenousReferenceGroup,was formedinApril2008toprovideadvicetotheTelstraDiversity CouncilandIndigenousTaskforceonIndigenousemployment andculturalawareness.TheDiversityCounciloversawthe developmentoftheIndigenousActionPlan,which aimsto contributetoTelstra’scommercialsuccessthroughthe promotionofIndigenousrecruitmentandretention. Thethreefocusareasidentifiedforactionare:improved recruitmentandretentionofIndigenousstaff;increased culturalawareness;andpromotionofReconciliation. Work-lifeflexibility Work-life flexibility at Telstra isunderpinned by progressive leave policies including parental leave,personal (including carer’s)leave,culturalleave and the ability to purchase additionalleave. Aswellasthe possible environmentalgains,Telstrarecognises the potential benefits of teleworking interms of employee productivity,satisfaction and wellbeing.Participants ina Telstra employee audit in late 2007 listed the most important flexible work options,in order of priority,as:teleworking from home regularly;teleworking from home occasionally;and flexible leave days.These findingswillallowTelstrato further develop itsprogramof work around flexible work options. Telstra recognises the challenge faced by many employees infinding available,affordable childcare.We are currently examining the option of company-purchased,preferred placement and have surveyed staff to identify the locations where there isthe most need for assistance. To assist Telstrafamiliesin findingchildcare solutions, employeesare able to accessan online directory service, CareforKids,which provides assistance and information about childcare services,availability,casual services and government regulations. Womeninmanagementroles 30-Jun-04 30-Jun-05 30-Jun-06 30-Jun-07 30-Jun-08 ExecutiveManagement 0.00% 11.1% 35.7% 26.7% 26.7% SeniorManagement 16.0% 18.6% 22.2% 23.5% 19.7% Middle Management 25.6% 26.6% 27.6% 27.4% 27.5% Operational 31.0% 31.5% 31.2% 31.8% 31.6% In2007/08,over500womenattendedtheeightVirtual Women’s Networkevents,whichincludedtheLegends seriesofpanelsessions featuringthealumniofwinners fromtheTelstra BusinessWomen’sAwards. Inlate 2007,Telstra pilotedMyMentor,atenweek program for womenthataimstoimprovestrategicbusinessskills. Basedonoutstanding feedbackfromthe21participants of theinitial course,theprogramwasrolledouttoover 440 womenacross theorganisationin2007/08(seecasestudy for moredetails). Telstra’s inaugural women’sconference,Stand.Out,was heldinMarch2008.Attendedby150ofTelstra’swomen, the conferencefocusedonperformance,career development andtheadvancement ofwomen,particularlythrough managementlevels.Stand.Outwillbeheldagainin2009. Figures fromthe2006 EqualOpportunityfor Womenin the WorkplaceAgency censusshowthatthepercentageof womenatseniormanagementlevelsinASX200companies hasremained constantsince2004.Whilethepercentageof Telstra women employedattheexecutive managementlevel hasremained steadyover thepasttwoyears,therehasbeen adecrease atsenior managementlevel.In2007/08,women were employedin60ofthe305seniormanagementpositions, adecreaseofsix fromthepreviousyear.Telstraiscommittedto improving ourperformanceinthisareaas ournew initiatives continueduring 2008/09.
    • Disability Telstra isproudtohavesponsoredManagers’Guide: Disability intheWorkplace.LaunchedinJune 2008,the Guidewas coordinatedbytheAustralianEmployersNetwork onDisability,withinputfromaneditorialcommitteethat includedTelstraemployees.ManyoftheTelstraemployees providedtheirinsightandadvice,havingexperiencedfirst- hand thechallengesfacedbyemployeeswithdisabilityin the workplace.TheGuideprovidesinformationand supportto managers ofemployees withdisability,and addresses each stageofanemployee’sworkexperience,fromrecruitmentto exit.Itwill be providedtopeoplemanagerstohelpminimise the barriersthatpeoplewithdisabilityface in theirworking environment.Theguidehasbeendevelopedas areference for bothTelstra andotheremployers. In2007/08,six seniorTelstramanagersmentoreduniversity studentswithdisability over a periodof16weeksaspartof the Willing andAbleprogram.Thisprogramconnectsstudents with disability toa one-on-onerelationshipwithamentorwho hasexperienceofworkinginanorganisationinthestudent’s chosenfutureprofessionalarea. Telstra also implementedtheSteppingIntoprogramthat providedafour-weekworkinginternshipto threeuniversity studentswith disability.Thisprogramwas implementedin partnershipwiththeAustralianEmployersNetworkfor Disabilityandaimedtodeveloptheparticipants’business knowledge,whiledevelopingtheskillsand confidenceof Telstra employeestorelatetopeoplewithdisability. Enable@Telstrais an establishedresourcegroupfor Telstra employees living withdisability.Itprovideseducationand information;leadership opportunities;informalmentoring andnetworkingevents;andsupportand adviceabout theaccessibilityofourworksites,productsandservices. Enable@Telstra currentlyhas39members. pipeline,from choosing myson’s school,whether we should renovate or move,and my own further education,” Cherylsaid. Months after the program,Cheryl still refers back to the course content –often while she’s jogging.Because the material isavailable inCDand DVD format,Cheryl’s loaded the modulesonto her iPod.“I’mstillreferringto the program, and making some decisions about my career goals and future achievements”,she explained,“butInow know Ican keep takingpositive stepstowardsachievingthem.” My Mentor program Casestudy Byherownadmission,whenCherylWoodsfirstreceived herMyMentorkit,shelettheboxsitonherdeskforacouple ofweeks.Itwasjustanothertasktocomplete,in analready hecticworklife. Nowafully-fledged‘graduate’ofthepilotoftheMyMentor course,thebusyTelstraBusinesssalesmanagerisglad she foundthetimetoparticipate. Theprogramcoversamoduleaweek,providingtipsand tools forwomentoactivelymanagetheircareersand personal development.AsCherylfoundoutthough,it’snotjust about takingthatnextstepupthecorporateladder“Thesecond moduleisaboutdevelopinga‘personalbrand’– ithelped me asksometoughquestionsofmyselfinregardstothe type of personIwanttobe,”Cherylsaid. Overthecourseoften weeks,theMyMentorprogramaims toincreasestrategicbusinessskillsinwomen,encompassing decision-making,prioritisation,negotiationandinfluencing skills,increasingvisibility,networking,andtakingcalculated risks.Importantly,italsolooksatcreatingwork-lifebalance. Byworkingthroughthetoolsprovided,Cherylcameto therealisationthatonthewaytobecomingasuccessful businesswoman,motherandpartner,shehadsomehow stoppedmakingtimeforherself.Puttinghertime- managementandprioritisationlearningintopractice, shestartedtomakeregulartimetoexercise.MyMentor recognisesthepositiveactionthatcan comefromtaking ‘babysteps’–forCheryl,thiswasthefirstofmany. “Workingthroughthecourse,Ifoundalotoflightbulbs were switchingon,anditwasn’tjustaboutmywork.Iactively appliedthetoolstootherdecisions.Inowevaluatepossible outcomesaccordingtohowbadtheycanbe– butalso the risksofnotacting.Ithasassistedmanydecisionsinthe CherylWoods,SalesManager,TelstraBusiness. 41
    • 42 3.Employees matter InAugust 2007,Telstra was honouredwithan Excellence inAuslan InterpretingAward,winningthePrivateSector Organisation category.TheAwards areorganisedbythe AustralianSignLanguageInterpreters’Associationto publiclyrecogniseorganisationsthatprovideconsistent supportforworking interpreters. Sexualorientationandgenderidentity InMay2008,Telstra wasincludedonthelistofcompanies that aresupportiveofgaymarriage.Thelistiscompiledby Australian Marriage Equality.Thiscomesattheendof an extensive policy review undertakenbyTelstraover thepast 18months.Asaresultofthereview,amendmentswere madeto171 instanceswhereTelstra’sinternalpolicies used inconsistentornon-inclusivelanguagein regards to relationshipentitlements–forexample,‘spouse’,‘husband’ and‘wife’.Policies nowrefertoanemployee’s‘partner’, definedas twopeoplelivingtogetherasacoupleona genuine domesticbasis,irrespectiveofgender,a definition endorsedbyAustralia’s HumanRights&EqualOpportunity Commission. Providing a healthy and safe environment Ouremployees areinvolved ina widevarietyofwork practices,fromunderground cablingand buildingmobile towerstoofficework,each withavastlydifferentsetofhealth andsafetystandards.AtTelstrawe ensurethatthepursuitof excellencein customer servicedoesnotjeopardisethesafety or healthofouremployeesandcontractors.A strong health andsafetyculturewillreducethenumberofincidentsatwork, build teammorale and leadtogreaterproductivity.Telstra seekstogobeyond minimumlegalcomplianceanddeliver world-class healthandsafetyperformance. Prevention TelstrahasimplementedaHealthandSafetyManagement Systemaligned with the requirementsof Australian/NewZealand Standard4801.ThemanagementsystemisoverseenbyTelstra’sHealth,Safety and Environment (HS&E)team. Telstraappliesarobustriskmanagementframeworkand occupationalhealth and safety management systemacrossits businessunits.InaccordancewithTelstra’shealthand safety policy,this system incorporatesHS&Emanagement standards thatcaterforthevaryingrisksacrossTelstra’sbusinessunits.The HS&Estandardscover arange of generalindustry hazards, aswellastelecommunications-specificissuessuchaselectromagneticenergy. ThediversityofrisksacrossTelstra’sworkingenvironments requires asegmented approach to safety to ensure that we applyappropriatestrategiesineachofourworkplaces.Our primary strategic segmentation isbetween our field and non-field (suchasofficesandretail)workplaces.Thefollowingtable highlightsthe risksand HS&Eperformance of these two groups. Losttimeinjuries–fieldandnon-fieldstaff Staff Commonrisksandissues Numberoflost timeinjuries(LTI) Losttimeinjuries frequencyrate(LTIFR) Field workforce Technicalfieldstaff Manualhandling,workingat heights,driving,electromagnetic energyandworkingalone 82 6.54 Non-field workforce Retailshops,callcentres, sales groupsandoffice environments Ergonomics,emergencies, electrical,stress,driving, customeraggression andnoise 50 1.27 Total:132 2.54 Detailedriskprofileinformationforeachbusinessunitand group is used in HS&Eplanning and auditing.Risk profiles are reviewedannuallyatthecommencementofoperationalhealth and safety planningin April. Theimplementationofouroccupationalhealthandsafety management systemismonitored by internaland externalaudits ofourbusinessgroups,aspartofourself-insurancerequirements. Compensationandrehabilitation Telstraisself-insuredforthepurposesofworkers’compensation under the provisions of the Safety,Rehabilitation and Compensation(SRC)Act1988.TheActisadministeredbythe Safety,Rehabilitation and Compensation Commission, whichsetstherulesforworkers’compensationprovisionand monitors our performance.The Commission sets indicator performancetargetsandin2007/08Telstraachievedall of the targets,exceedingeight of the 11 targets. Telstramaintainsacomprehensiveinjurymanagementsystemcoveringboth rehabilitation and claimsmanagement functions.Theinjurymanagementprocessiswellestablished across the organisation,and accessibleto all Telstra staff viatheTelstraintranet.Telstra’sweb-basedinterfaceallowsmanagersto accesscurrent information to enable themto effectivelymanageclaimsandrehabilitationactivitiesand ensure the best possible care for injured employees.
    • Comcareratings OurregulatorComcareassignsa‘Tier’ratingtoTelstraand other self-insured licensees.TheTierModelhasthreelevels whichreflectthelevelofregulatoryoversightrequired byComcaretosatisfy theSafety,Rehabilitationand Compensation Commissionofthelicensee’scompliance of itsconditionsoflicence.Themodelacknowledgesand encourages good performanceandaffectsthelicencefee modelthroughtheprincipleofuserpays.Telstrahas achieved aTier3(advancedlevel)ratingforprevention,andworkers’ compensation andrehabilitation,indicatingahighstandard of internalquality assurance,strongmanagementsystems andself-auditcapabilities. Health,Safety&Environmentperformance Telstra’s Health,Safety &Environment(HS&E) performancein2007/08includes: • thenumberofopenworkers’compensationclaims remainedbelow2,000; • 14externalHS&E auditswereconducted.71percent ofauditedbusiness groupswere foundtohaveeffective orhighly effectivelevelofimplementationofHS&E managementsystemsandtheremaininggroups hadatleasta basiclevelofimplementation; • eightpercentreductioninworkers’compensation forwardliabilityfrom$196.5millionto$180.1million; • achievedTier 3statusforworkers’compensationand rehabilitation underourselfinsurancelicenceinJune 2008,reflectingourexcellentperformancein rehabilitation andclaimsmanagement;and • increaseof14percentinLostTimeInjuriesand19percent increasein 12monthLostTimeInjuryFrequencyRate (represents slightincreasesacrossbusinessunits). Quiet achiever takes out 2007 Telstra Indigenous Award Casestudy CongratulationsgotoPietaJohnstonfromTelstra’s NationalIndigenousDirectorateinDarwin,whowas namedthe2007TelstraIndigenousAwardwinner. Describedasa‘quietachiever’byhermanagerand peers, Pietaisclearlypassionateabouthersignificantwork in theIndigenouscommunityas partofherroleatTelstra’s NationalIndigenousDirectorate. Pietahashadmanystandoutperformancesduringher timeatTelstra.OfparticularnoteisPieta’sworkon the TelstraCommunityPhoneProgramwhichPietahas managedsinceJuly2006.Theprogram,whichaimsto provideremoteIndigenouscommunitieswithadequate accesstoTelstrapayphones,hasgivendozensofIndigenous communitiesthecommunicationtoolstheyneed. AccordingtohermanagerLawrieMortimer,General ManageroftheIndigenousDirectorate,Pietahasdone anoutstandingjobbringingtheprogramtoasuccessful conclusion,despitemanychallengessuchasequipment failures,contractvariationsandcomplexcustomerneeds. Pietahas alsoworkedwiththemanagersofthenew ZephyrandArafuraCallCentresinDarwintoimprove recruitmentandretentionofIndigenousemployees. Pietahasbeeninstrumentalinarrangingcross-cultural communicationtrainingforthemanagementteams in thesecentres,andhasgoneoutofherwaytomentor a numberofnewIndigenouscallcentretrainees. PietaJohnstonwithTelstraGroupManagingDirectors,GeoffBooth, JustinMilne,KateMcKenzieandPhilBurgess. 43
    • 3.Employees matter 44
    • 45 LostTimeInjuries (LTI)versusLostTimeInjuryFrequencyRate (LTIFR) LostTimeInjuries(LTI)versusLostTimeInjuryFrequencyRate(LTIFR) 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 800 1,200 600 400 200 0 NoofLTIs LTIFR (12mm) 1,600 1,400 1,000 15 14 13 12 11 10 09 08 07 06 05 04 03 02 00 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 800 1,200 600 400 200 0 NoofLTIs LTIFR (12mm) 1,600 1,400 1,000 15 14 13 12 11 10 09 08 07 06 05 04 03 02 00 No of LTIs LTIFR (12mm) LTI:LostTimeInjurywhereat least one full shift or day lost from work. LTIFR:NumberofLostTimeInjuriesper millionhoursworked (asof 30 June) NB:Datafor02/03differentto previously published asit includesNetwork Construction. 3.Employees matter Auditresults – LostTimeInjuries(LTIs)&LostTimeInjuryFrequencyRate(LTIFR) Year Percentageofeffective auditresults NoofLTIs(and% improvementfromprevious financialyear) LTIFR(12mm) (and%improvementfrom previousfinancialyear) 2007/08 71% 132(-14%) 2.54(-19%) 2006/07 88% 116(26%) 2.14(21%) 2005/06 86% 157(21%) 2.7(16%) 2004/05 74% 199(25%) 3.2(27%) 2003/04 62% 265(26%) 4.4(19%) LTI:LostTimeInjury(atleast one full shift or day lost) LTIFR:NumberofLostTimeInjuriesper millionhoursworked (asof 30 June) ThedropinHS&Eauditsscoreswereexpectedfollowingtheimplementationofanewriskbasedscoringmethodologyduring2007/08. There isa growing understanding among safety professionals of the limitations of lost time injury numbers and rates asan indicator of safety performance,especially where rates are already very low.In order to present amore balanced scorecard of safety performance in future years,Telstra will report injury duration ratesand compensation numbersand rates,aswell aslost time injury data. Healthandwellbeing Employeeswho are mentally and physically healthy are more likely to be engaged,committed and productive in all aspectsof life.Telstra’sHealth &Wellbeingstrategy provides acomprehensive framework for effectiveinvestment in health promotionandpreventionactivitiesatalllevelsofthebusiness. It aims to engender real,long term behavioural and lifestyle changes.Our 2008-2011 Health &Wellbeing Strategy was launched in August 2008. InJanuary 2008,Telstra appointed a newHealth and Wellbeing team to focuson psychological health,physical health promotion and occupationalhealth programsfor Telstra employees.The team is adopting aholistic approach that includes amusculoskeletal strategy,amental health and resilience strategy,occupational health and health promotion strategy,and aimsto increase productivity, reduce absenteeism,and create aworkplace of choice. In2007/08 Telstra promoted Mental Health Week with foyer displays,intranet newsarticlesand activities.Thisextensive promotion led to athree-fold increase in the accessof online mentalhealth and resilience resources.A newresource, Men’s ResilienceeBook,wasalso released this year as part of amen’swellbeingpromotion.
    • 46 Telstra’sresilienceandmentalhealthprogramshave beenrecognisedbyexternalbodies,andthisyearused bytheAustralianGovernmentDepartmentofDefenceand referencedbytheMentalHealthCouncilofAustralia. AchievementsinTelstra’smentalhealthandresilience programsin2007/08include: • almost380employeesattendedthetwo hour Resilience workshops; • over300managersattendedthefourhourCreatinga Mentally HealthyWorkplaceworkshops; • over1,300 employeesattendedmodulethreeofthe FrontlineLeadershipprogram,whichintroducesTelstra’s resilienceprogramandprovidestheResilience–Energising Lifebookasaresource;and • thenewly-createdResilienceintranetsiterecorded over 9,500hits. Feedbackfromparticipantsofthetwo-hourresilience workshopsindicatesthefollowingwellbeingoutcomes: • improvedeffectivenessinworkingwithothers(46per cent); • improvedwork-lifebalance(49percent); • moreenergy(36percent); • improvedconcentration(37percent);and • workingtothebestoftheirability(38percent). Telstra continues to provide the Employee Assistance Program todeliver professional counselling and advisory services via an independent company staffed by qualified psychologists and social workers.The services are fully funded by Telstra,are free of charge to Telstraemployeesand their families,and are available 24 hoursaday,seven daysaweek. Telstra’s Employee Assistance Program also includes managerAssist®,anadvisory service that assists managers and team leaders in managing arange of workplace situations.In addition,eapdirect™,which wasintroduced in 2007/08,provides Telstra employees access to life coaches via the internet.The site provides self-assessment tools,information on arange of topics and the ability to contact aprofessional life coach via a secure email system.eapdirect™ canhelp address a range of issues,such asfamily,emotionalwellbeing,work-life flexibility, relationship,and people management. We also encourage employee fitness by participating ina number of corporate challenges including the Global Corporate Challenge,Foxtel Lap,and Ride to Work Day.In2007 Telstra was the TravelSmart Workplace Challenge winner with the largest number of registered Ride to Work Day participantsin Australia. There isa growing understanding among safety professionals of the limitations of lost time injury numbers and rates asan indicator of safety performance,especially where rates are already very low.In order to present amore balanced scorecard of safety performance infuture years,Telstra will report injury duration rates and compensation numbers and rates,as wellas lost time injury data. 3.Employees matters Telstra’sHealth&Wellbeing strategy promotes real,longtermbehaviouraland lifestyle change
    • Mental illness demystified Casestudy AnthonyWall,TacticalWorkflowPlanningManager with DeliveryManagement,TelstraServicesinBrisbanehasseen allthemanagersinhisworkareacompletethetwo-hour resilienceworkshopandbelievesitoffersplentyofpositive benefits. “Weallknowhowtodealwithslips,tripsandfalls–the physicalsideofhealthandsafety–butpeopletendto be lessawareofhow tobuildresilience,anddealeffectivelywith thedaytodaychallengesthatlifepresents,”Anthony said. “Theresilienceworkshophasbeengreat.Peoplehavelearnt to bemoreself-aware.Theynowunderstandthetypesofstressors thataffectthem,andthedifferentcopingmechanisms theycan usetostayontopofthings.We’rerollingout the workshoptoallmembersofourteamasa keycomponent ofDeliveryManagement’shealthandsafetystrategy.” HisviewsofTelstra’smentalhealthworkshopsareechoed byBobBeresford,Director,ServiceDeliverySouth-West,Telstra ServicesinVictoria.Over50teammanagersin hisarea have completedtheMentalHealthWorkshopforManagers.“We all knowwhattodoifateammemberhasabrokenleg,but what doyoudoifyoususpectsomeoneisstrugglingwithanxiety ordepression?”Bobasked. “Theworkshopreallyhelpeddemystifymentalillness andopenedthetopicupfordiscussionamongmanagers. Depressionandanxietycanstrikeanybody,and theworkshop helpedusunderstandwhatitmeansforthepersoninvolved, andwhatresourcesareavailabletohelpmanagerssupport employeesthroughit.It’sgreatthatasanemployer,Telstra recognisesmentalhealthissuescanaffectourpeople,and providesresourcestohelpdealwithit.” Mentalhealthweekposter. Planned actions for 2008/09 • Increasetheproportionofwomenin middleandsenior managementto30percent. • IncreaseIndigenous employmentopportunitiesby 25per centby theendDecember2009aspart ofTelstra’s Indigenous ActionPlan2008-11. • Maintain thehighest(ComcareTier3)ratingacross all Health,SafetyandEnvironmentcategories. • Achievea minimum of10percentemployeeparticipation ina newonline HealthRiskAppraisalby August2009to improveemployeeunderstandingofhealthriskfactors. 47
    • 4Customers matter Our vision is to know our customers and meet their needs better than anyone else. David Moffatt,Group Managing Director, Consumer Marketing and Channels Servingtheneedsofourcustomersisafundamentalcorporate responsibilityprincipleatTelstra.Wearetransformingour customers’experiencebytransformingTelstrafromaproduct- basedcompanytoanintegrated,fullyconvergedmedia- commscompany,centredonthecustomer. Understandingthatsatisfiedcustomersarecoretoourbusiness success,Telstrahasundertakenthemostcomprehensivemarket researchinAustraliancorporatehistory.SinceJune 2006we haveinterviewedover900,000 Australiansandsegmented thepopulationonthebasisoftheirpreferences.Asaresult, wehaveadoptedaMarketBasedManagementapproachand areorganisedbycustomersegmentsratherthanbyproducts. Thismeansthatweunderstandwhatcustomerswant from theirmedia-commsexperienceandcananticipatetheirneeds. Itmeanswecandifferentiateourproducts,servicesand prices formarketsegments,anditsignalsashiftfroma‘onesize fits all’approachforourcustomers,toasetofcustomerneeds- basedsolutions. Telstraiscommittedtoprovidingamoretargetedandpersonalised experienceforourcustomers,tomakeiteasierforthemto see, interactwith,useandgetadviceonourproductsandservices. Wearereinventingourretailstores,openingfivenewstate-of- the-artinteractivetelecommunicationsretailoutletsin 2007/08.CalledT[life]™,thesestoresarechangingthefaceof retailing.ThisyearwealsolaunchedtheTelstraMentorservice, whichsendsanexpertadvisorouttocustomerstoprovide one- on-oneassistancetohelpthembetteraccessand usethefull rangeoftheirmobilephonefeatures. April2008 wasan important milestone in Telstra’shistory. After almost nine years of service to millions of Australians we closed down the old CDMA mobile phone network, providing our more advanced,third generation mobile technology –Telstra’s Next G™network – asa superior alternative.Telstra spent over two years preparing for the closure,alwaysensuringcustomerswere wellinformed of our plans.CDMA customers were individually contacted by phone,letter and SMSmessages to remind them how to migrate to the newmobile network. Significant effortswere also made this year to ensure the accessibility and affordability of our servicesfor everyone. AtTelstra,werecognise the diversity of our customers and the significant contribution that communications services make to people’slivesand to community wellbeing. In2007/08,Telstra assisted more than one million low-income customerstoconnectormaintaintheircommunicationsservices. The totalbenefit provided wasin excessof $200 million. In August 2007 we launched TelstraConnected Seniors®, whichwill provide $3million of grant funding to community groups and organisations over a three year period to help older Australianslearn to use mobile and internet technology. We maintain our long-standing commitment to make our services accessibleto customers with adisability,and continue to focuson the needsof our customerslivingoutside the major metropolitan citiesthrough TelstraCountry Wide®.
    • 49 4.Customers matter Telstra ischanging thewaypeopleliveandworkinAustralia. Wearehelping customerstoshareexperiencesinreal-time, savingtraveltime and reducingfuelexpenses,freeingthem fromtheirdesks,looseningthemfromtheirlivingroomTVs, andunifying theirfixedandwirelesscommunications.Weare workingtogetherwithourcustomerstofindnewwaystoimprove theirbusinessesandtosupporttheirindividuallifestylechoices. Telstraisensuringthatcustomersarecentraltoeverythingwedo. Enhancingourcustomers’experience AtTelstra,weknow thatsatisfiedcustomersarefundamental tobusiness success.Wearecommittedtoknowingour customersandmeetingtheirtelecommunicationneedsbetter thananyoneelse.Weaimtoprovideeachcustomerwith a personalised,seamlessexperiencethatmakesiteasierforthem tomanagetheirlives.Servingtheneedsofour customersisa fundamentalcorporateresponsibilityprincipleatTelstra. Customerservicecommitments Astheuniversal service provider,Telstrahastheresponsibility of ensuring thatallpeopleinAustraliahavereasonableaccess tostandard telephoneservicesand payphones,andtoprovide priority connectionsand repairstothoseeligiblecustomers with lifethreateningmedicalconditions.Telstra’sUniversal ServiceObligation (USO)StandardMarketingPlanandPriority AssistanceforIndividualsPolicysetouthow Telstrahas committedtofulfiltheseresponsibilities. The legislated CustomerServiceGuaranteeand theTelstra MobileCustomerServiceCommitment,commitTelstrato providing aguaranteed levelofserviceforstandardtelephone services andmobileservices. Telstra measures its ActivationandAssurance commitments andperformanceacross abroadrangeofproductssuchas ADSL/ADSL2+,EnhancedServices/SpecialServicesproduct range(morethansimplevoicetelephones). Ourdatashowsthatin2007/08 wemetthedate andtime weagreedwithourcustomersthan95percentofthetime, regardlessofwheretheylive. FulldetailsaboutTelstra’scustomerservicecommitmentscan befoundatwww.telstra.com.au/abouttelstra/commitments Residentialcustomers Telstra’sCustomerServiceChartersetsouthow wepropose to meetourcommitmentstoourresidentialcustomersand fulfil ourlegalandself-regulatoryobligations.Ourbasic commitmentsinclude: • helpingcustomerstocontactusinthewaytheyprefer; • providinginformationaboutourproductsandservices tohelpthemmakeinformedpurchasedecisions; • providinginformationaboutthesafetyofourproducts; • protectingpersonalinformation; • providingbillsthatareaccurateandeasytounderstand; and • dealingwithconcernsorcomplaintspromptly,fairly and completely. EnterpriseandGovernmentcustomers Wearealsocommittedtobecomingworld-classinproviding servicestoourenterpriseandgovernmentcustomers.Toachieve thiswe areguidedbytheTelstraServiceStandardswhich hold us accountableto:completeinstallationsaspromised;restore networkstoourpublishedservicelevels;resolveany billing enquiriesonthesameday;resolvealldisputeswithinfive working days;complete all billing work requests within five days;and assign a single person to manage customer relationshipswith Telstra. Inan Australian first,this year the Telstra Enterprise and Government Customer Care group wasawarded certification to the International Customer Service Standard.This is the first time a division of a major telecommunicationscarrier has received accreditation from the Customer Service Institute of Australia(CSIA),Australia’speak customer service organisation. The International Customer Service Standard (ICSS) isan internationally recognised toolto reviewcustomer service quality and includes detailed scrutiny and auditing.To gain the accreditation,Customer Care had to provide evidence addressing the 29ICSS attributesand undergo a series of detailed site visitsby CSIA auditors.The certification demonstratesthat our organisation hasboth apassion for customer excellence and the processesto deliver. Full details about Telstra Enterprise and Government service standardscan be found at www.telstraenterprise.com/ abouttelstra/Pages/ServiceStandards.aspx Informingourcustomers Telstrano longer hasa‘one size fitsall’approach to customers. We are nowcommitted to providingamore targeted and personalised experience,toinform our customers about product featuresand applicationsand to help make it easy for our customersto do what they want,when they want. With thisin mind,we have introduced some innovative approachesto buildingcustomer awareness. Werecognise thesignificant contributionthatcommunications servicesmaketopeople’s lives
    • 50 4.Customers matter T [life]™retailstores InJune2008,Telstraopenedthelargeststate-of-the-art interactivetelecommunicationsstoreinAustralia,T[life]™, following onfrom thesuccessofT[life]™Sydney. TheMelbournestorehastwolevelsandprovides: • adedicatedareaforbusinesscustomerscalled[my]business; • freeone-on-oneexpertadviceat[my]place; • [my]networkedhomewherecustomerscanseefor themselves howtobetterconnecttheirlife athome andon themove; • aninteractivezonetoexploreandplaywithover 100 liveandworking devices; • thelatesttechnologywherecustomerscaninteract withfutureproducts; • aTelePresencemeetingroomforface-to-facestate-of-the- artvideoconferencing; • freedaily training anddemonstrationsinthestore’s 50seatauditorium;and • one-on-one sessionswithmediaexpertsthatcanbe bookedata timeconvenienttocustomers. T[life]™ stores areavibrantpublicexpressionofour philosophy thatthecustomerisatthecentreofeverything we do.WecurrentlyhavefiveT[life]™storesacrossAustralia. TelstraMentor Peoplenow haveaccesstomorethingson theirNextG™ mobilesthaneverbefore,includingemail,internetbrowsing andvideocalls.Telstraunderstandsthatsomecustomers needhelptousethefullrangeof featuresavailableon the latesthandsets. LaunchedinJune2008,theTelstraMentorservicesendsan expertadvisortocustomerstolistentowhattheyneedand provideone-on-oneassistancetoimproveaccesstoanduse ofthesefeatures.Customerscanhavetheirdevicestailored to theirindividualneeds andareshownhow tobemoreefficient sotheycanoperatetheirbusinessbetterwhileonthemove. Withbusinessincreasinglyturningtomobiletechnologies foremail,internetbrowsing,videoconferencingandbusiness applications,smalland mediumenterpriseswillbenefitgreatly fromthisservice,particularlyhighusecustomersaccessing mobileandPDAfeatures. TelstraispartneringexclusivelywithMobileMentortodeliver theAustralianfirstserviceforqualifyingcustomers.Initially availabletocustomersinSydneywhousesophisticated devicesfortheirpersonal,workorbusinessneeds,thefree TelstraMentorservice,willberolledouttoothercitiesinthe monthsahead. Telstra Experience Centre Locatedat400GeorgeStreetinSydney,theTelstraExperience Centre isastate-of-the-art facility for Telstra’scustomers. Consumer groups,small business,large business,enterprise and government customers canexperience Telstra’s latest productsand servicesin alive and immersive environment. The TelstraExperience Centre providesthe opportunity for business and enterprise customers to interact with Telstra’s health and education applications,home,entertainment and business solutions,and discover the many ways they can use Telstraproductsto make their livessimpler and easier. Community Advocacy Program The Telstra Community Advocacy Programis aunique opportunity for staff to maximise customer awareness and understanding of Telstra’s Next G™ services and other products by visiting groups intheir local communities.In 2007/08 Telstra staff completed over 1,134 town visits,product demonstrations, mobile tower launches and businessforums inmetro,regional and rural locations across Australia.This included over 40 field days,350 Chamber of Commerce and businesspresentations, 41 innovation exposand over 540 localevents.The program helps to build relationships with our customers and the community and to gain insight into community needs and expectations.It isanimportant mechanism for Telstra to be a truly acustomer-centricorganisation. Customersafetyandsecurity At Telstrawe are committed to ensuringthat allcustomers are well informed and equipped with the knowledge to utilise our productsand servicessafely and responsibly. Telstra nolongerhasa‘onesizefitsall’ approachtocustomers
    • Mobilesafety Wehavearange ofTelstrainitiativestomakeusing mobile phones saferandeasier.Fulldetailsabouteachofthesecan be foundatwww.telstra.com.au/abouttelstra/advice/mobile Mobilehoaxes–Telstraisalwaysonthelookoutfor thelatest mobilescams andhoaxesaffectingourcustomers.Weprovide adviceonwhattowatchoutforandwhattoignoreandup-to- dateinformationaboutthemoreprevalenthoaxes. Driversafety–Telstra providesinformationtocustomersabout usingtheirmobile phonesassafelyaspossibleand reinforces roadrules formobilephoneusers. Lostorstolenphones–Telstraprovidesinformationabout newtechnologythatpreventsalostorstolenhandsetfrom beingusedonTelstra’sGSMandNextG™networks. SMSspamming– Telstraprovidesinformationonwhatyou candotoavoidreceivingunsolicitedmessagesonyourmobile. Mobilephoneetiquette–Conversationsthatwerepreviously privatearenowoftenheldwithinearshotofothers.Telstra’s guidetomobile phoneetiquetteprovidesusefultipsonhow to usemobilephones inthemostappropriateway. Mobilephonesandhearingaids–Telstraprovidesinformation onthings you needtoknowif youareoneofover 450,000 Australians whowearsahearingaid. Recycling– Telstra isanenthusiasticparticipantin MobileMuster,theofficialrecyclingprogramfor the mobileindustry.Weencourageourcustomerstoreturn oldmobilehandsets,batteriesandaccessoriestoany TelstraShopforrecycling. Electromagneticenergy–Telstrasupportsandcontributes toresearchintothesafetyofelectromagneticenergyfrom mobilephonesandbasestations.Weareguidedbythe WorldHealthOrganisationregardingsafety. Next G™ rings true for hearing aid wearers Casestudy TheCDMAmobilenetworkwaspreferredbymanyof the450,000 Australianswhoweara hearingaidor haveacochlearimplantforinterference-freemobile communicationAustralia-wide.Withtheclosureof ourCDMAnetworkinApril2008,weneededtoensure continuingaccesstomobilephonesforthiscustomergroup. In2006/07 theNationalAcousticLaboratoriesreported ontestsconductedforTelstraontheNextG™network andfoundthatthenewnetworkwouldprovidean even betterexperienceforpeoplewhorelyonhearingaids. Furthertothesetests,andinresponsetocustomerand consumerrepresentations,Telstraconductedaseriesof user-testswitharangeofNextG™mobilehandsetsduring 2007/08.Weundertookthesetestsincooperationwith DeafnessForumandBetterHearingAustraliamembers withhearingaidsandcochlearimplants.Wealsotested thehandsetswithassociatedassistivelisteningdevices. Theuser-testresultsclearlyindicatedthatmanyTelstra NextG™handsetsworkwellwithhearingaidsandcochlear implantsinbothMicrophone(M)andTelecoil(T)settings. Someusersratedtheirexperienceasverygoodtoexcellent inbothmodes,includingwiththeassistivelistening devices. AlistofNextG™handsetssuitableforusebyAustralians withhearingaidsandcochlearimplantsinmetropolitan andregionallocationswasdevelopedfromthesetests. Thiswasprovidedtoconsumerandcommunitygroups fortheirmembers,andtoTelstraemployeeswithcustomer contact,toassistinchoosingamobilehandset.Telstra’s DisabilityForumwasbriefedontheusertestsatthe March2008Forum. 51
    • 52 4.Customers matter Internetsafety The internetprovidesanamazingwindowontheworld,and securityissuesshouldn’tstoppeoplefromenjoyingtheview. BigPond SecurityCentreprovidesinformationandservicesfor customerstohelpprotecttheircomputerandtheirfamily on theinternet. BigPondSecurityCentrehelpscustomersbuildan understanding ofthepotentialsecurityrisks,including non-genuine websites,hoaxemails,hackers,spam,worms andotherviruses,Trojansandspyware.BigPondalsoprovides comprehensive adviceonthesecuritypracticescustomers should followtoreducetheriskoffallingpreytosecurity threats.Informationaboutfirewallandanti-virussoftware, protecting personal details,restrictingunauthoriseduseof computers,passwordsandcontentfiltersisprovidedonthe BigPondwebsite. Inaddition,BigPondsupportsparentstoensuretheirchildren have safeand positiveonlineexperiences,withcomprehensive informationincludingtipsforparents,abookletcalledHelp keepyourkidssafeonline,and linkstoarangeofsafe places for childrentogoontheinternet. For moreinformationseewww.bigpond.com/cybersafety Customerprivacy Inaconstantlychangingtechnologicalenvironmentour customersenjoyusingthelatesttechnology,butwantto maintaincontroloverthepersonalinformationgenerated asaby-productofthedigitaleconomy.Theywantassurance thattheirprivacyandpersonalinformationareprotected andsecure. Thelegislativeresponseistodevelopadditionalregulation, suchasSpamlegislationandthe“DoNotCall”register, toaddressthepotentialimpactonpersonalprivacyof newtechnologies.Whilethereismeritintheselaws,at Telstracompliancewiththeprivacyrelatedlegislation isourminimumstandard.Goingbeyonditslegislative obligations,Telstraseekstobeinnovativeandtodeliver thegreaterbenefitsofemergingtechnologiestoour customers,whileallowingthemtomaintainsufficient controltoensuretheirprivacyisprotected. Telstra’sPrivacyStatementmeetsourlegalobligationsand expressesthecommitmentthatTelstrahasgiventoallits customers.Insupportofthiscommitment:Telstraensuresthat: • aChiefPrivacyOfficerhas overallresponsibilityforour approachtoprivacyandprivacycomplianceandliaison withtheGovernment’sOfficeofthePrivacyCommissioner; • thereisa networkofprivacymanagersacrossthe company toadvisethebusinessandsupportourcustomerson privacy matters; • staffreceiveprivacyawarenessinstructionwhen they are inductedintothecompanyandeverytwoyearsthereafter; • ITsystemsandbusinessprocessesarebuiltwith appropriatecontrolstoensurethataccess topersonal informationisappropriatelyrestrictedandmonitored; • adedicated privacy callcentre (1800039058)isavailable to dealwith membersof the public; • all our suppliers and business partners,both in Australia and overseas,arerequired to comply with Australian privacy law; • all products and services are assessed for privacy impact; and • our privacy compliance program isreviewed and audited annually by independent external auditors who report their findingsto the TelstraBoard. The number of privacy complaintsand/or incidentsreceived by Telstra that deal with issues concerning marketing,access to information,accuracy of dataand disclosure of information, isrelatively stable.This isanexcellent outcome in an environment where there are newand pervasive technologies constantly being offered to consumers,where marketing is more directed,and where consumers are increasingly concerned about their privacy. UsingTelecommunicationsIndustry Ombudsman data, the telecommunicationsindustry privacy complaintsagainst Telstra also remain relatively stable,and continue to represent adisproportionately lowpercentage of industry privacy issues. All privacy complaints and/or incidents are appropriately addressed and managed to resolution within Telstraso that in the last year no privacy complaints or incidents were escalated to alevelthat required judicialdecision. For more information see Privacyat Telstra at www.telstra.com.au/privacy/index.htm
    • Ensuring access for everyone Telstrarecognises thediversityofourcustomersand the significantcontributionthatcommunicationsservicesmaketo people’slives andtocommunitywellbeing.Telstramaximises thevalueofits telecommunicationsnetworks,productsand services toensureaccessforeveryone.Weactivelyimprovethe accessibilityandaffordabilityofourservicesby engagingwith relevantcommunitystakeholdersandsupportinga large numberofcommunity-businesspartnershipsthatbenefitover one millionAustralianseverymonth. Peopleonlowincomes Telstra’s AccessforEveryonepackageisguidedby the independentLow IncomeMeasuresAssessmentCommittee (LIMAC),whichconsists primarilyofcommunitywelfare organisationmembers.LIMACmonitorstheprograms, providesfeedbackontheireffectiveness,commissions marketresearch,and reportsannuallytotheMinisterfor Broadband,CommunicationsandtheDigitalEconomy. Results ofrecentresearch intolow-incometelecommunications inAustralia,commissionedbyLIMACin2007,indicatethat affordability has beengenerallyimprovingover a longperiod of time,resulting inveryhightelephonetake-uprates(around 98percent).However,forpeoplewhoarein financialorother crisis,whoseektheassistanceofcommunitywelfareagencies, there is asignificant lackofaccess toatelephone(around 20 percent). “One of our technical services managers was helping to set up remote accessat aclient’spremises,”Steve said. “He plugged hisNext G™mobile phone into hislaptop, tested the connection and then used the service to demonstrate and train our client’sstaff. “The Next G™network helpsusdeliver amore complete service and will substantially enhance the efficiency and effectivenessof our mobile healthcare teams.” Healthier communities with HumeNET and next generation networks Casestudy Victorianruralhealthalliance,HumeNET,isusingthe NextG™networktohelpitscommunity-basedhealthcare clientsstayintouchandonlinewherevertheir‘house-calls’ take them. HumeNETprovidesinformationcommunicationtechnology (ICT)forpubliclyfundedhealthcareorganisationsspecialising inacutecare,residentialagedcare,mentalhealth,allied healthandcommunityhealth. HumeNETChiefInformationOfficer,SteveBowmaker, saidmorethan6,000 healthagencystaffworkingin 50 sitesacrossnorth-eastVictoriauseHumeNET– which isprovidedontheTelstraNextIP™network–toaccess patientcareinformationandotheronlineservices. However,morethan600 mobilehealthcareworkerswho visitpeopleintheirhomesorworkfromsmallcommunity facilitieshavepreviouslybeenunabletoaccessHumeNET corporatenetworkwhenawayfromtheiroffice. “Ourchallengewastoprovidethesepeoplewithareliable, secureandhigh-speedconnectionservice,sotheycan access businessandclinicaldata,andschedule,reviewand update clientfileswhenworkingawayfromtheoffice,”Steve said. “WiththeNextG™networkwecannowofferourmobile healthcareteamsahigh-speed,secureconnectionwithout havingtoheavilymodifytheirapplicationtoolsets.” HumeNETstaffuseTelstraTurboCards™andmobilephones toaccessHumeNETserverswhenworkingfromclient’s premises,betweenappointmentsorafterhoursduring emergencysituations. 53
    • 54 4.Customers matter Ourperformancein2007/08includes: • assisted morethanonemillionlow-incomecustomersto connector maintaintheircommunicationsservices.The totalbenefitprovidedexceeded$200million.Thiswas spreadacross programssuchasBillAssistance,Phonecard Assistance,PensionerDiscount,InContact®,HomeLine™ Budget,andMessageBox; • increasedthenumberofcommunityagencyoutlet partnerstoaround4,000from3,600inthepreviousyear. Telstra relies oncommunitypartnersacrossAustraliato delivertheAccess forEveryoneprograms;and • Telstra was awarded the2007CorporateCommunity PartnershipAwardbytheCountryAwareness Network Victoria.This awardrecognisedourexceptional commitment toVictoria’sruralandregionalcommunities throughour supportandassistancetoconsumersand clients affectedbyHIV/AIDSorHepatitisC. For moreinformationseewww.telstra.com.au/ accessforeveryone Peoplewithdisability Telstra’s corporatedisabilitypolicyisbasedonthevalues of serviceand respectfortheindividual.Thepolicyrelates toall Telstra products,servicesand facilities.Itpromotes compliancewith,andanunderstandingamongemployees of,theDisability DiscriminationAct(1992)andrelated provisions intelecommunicationslegislation. Insupportofitsdisabilitypolicy,fromtimetotimeTelstra lodges adisability actionplanwiththeHumanRightsand EqualOpportunity Commission.Theplanestablishes,monitors andreviews theperformanceofTelstraprocessestoensure areasofpotentialdiscriminationareidentifiedandminimised or eliminated.Itis developedinconsultationwithpeak disability consumergroupsthatmeetregularlyas theTelstra Disability Forum.Telstrareviewsthedisabilityactionplan performanceandpublishestheresults. Forover25 years,Telstra’sDisabilityEquipmentProgram (DEP)has provideda rangeofadditionaltelephoneequipment toeligiblecustomerswitha disability,atno extracost,so they can accessastandardtelephoneservice.In2007/08,Telstra suppliedover12,000 additionalpiecesofcustomerequipment includingphoneswithlargebuttons,incomingandoutgoing volumecontrol,audibleandvisualalerts,andteletypewriters. ThisyearTelstraalsosimplifieditslegacypaper-basedDEP applicationprocesstoimprovetheoverallexperiencefor thecustomer.Thisreducedthefulfilmenttimefrombetween threetosixweekstobetweentwotothreedays.Mosteligible customerscannow ringourdisabilityenquiryhotlineand aconsultantwillimmediatelyactivatean orderforthe equipmenttheyneed,ratherthanfillinginanapplication form,havingitsignedbyaqualifiedprofessionaland submittingtheformtoTelstraforconsiderationandprocessing. ForfurtherinformationaboutTelstra’sdisabilityservices, visitwww.telstra.com.au/disability Ruralandregionalcustomers TelstraCountryWideisthelocalfaceofTelstrainregional,rural andremoteareasofAustralia.Telstraisanintegralpartof countryAustralia,livingandworkinginthecommunitiesit serves,participatinginlocalevents,supportinglocalinitiatives andhelpingintimesofdistressanddisaster. Asanationalcarrierandlong-termpartnertoregionalAustralia, Telstraunderstandsthevitalrolethattelecommunications playsinkeepingthisvastcontinentconnected. TelstraCountryWide’smissionistomeettheoftenunique telecommunicationsneedsofregionalAustraliawhile atthesametimecontributingtoitseconomicandsocial development.WiththerecentlaunchoftheNextG™and NextIP™networksTelstranowhastheplatformstoprovide customerslivingandworkinginregional,ruralandsome remoteareas,accesstoaworldclassrangeofproducts, applicationsandcontent. Closure of CDMA network Telstraclosed the CDMA mobile network on 28 April2008. Plansto close the CDMA network and build the Next G™ network were announced almost three yearsearlier,in November 2005.The Next G™network was launched in October 2006 and from that time webegan the task of migratingcustomersfromCDMA to the Next G™network. Alarge percentage of these customer migrations occurred in 2007/08. Telstra put in place a number of customer service initiatives to help make the transition assmooth aspossible for customers. These initiatives were designed to ensure that customers received informed and accurate advice when making their selection of handsets and accessoriesand they chose a‘Like for Like’handset so that they would receive the same or better coverage on the Next G™network. TheBlueTick–In what Telstra believes to be a world first,Telstra rigorously tested and assigned the‘Blue Tick’to those handsets recommended for handheld use in ruralareas. CoverageAdvocates–Telstra employed over 50 new staff to proactively contact customers that had not yet moved from CDMA toprovide them with advice on what type of handset and accessoriesbest met their coverage needs. RetailAccreditationProgram– In an Australian industry first, Telstra introduced an accreditation program across its retail outlets (Telstraowned,licensed and dealers) and provided a handset recommendation guide each month to ensure that retail staff had the most upto date information to provide customerson handsets,accessoriesand coverage.
    • MobileHealthCheck–Telstramonitorednetworkstatistics andcontactedcustomerswhowereexperiencinghigherthan averagedropouts toimprovetheirexperience. 1800customerhotline–Thiswasestablishedtoassistcustomers that had migratedfrom CDMAtotheNext G™networkand were experiencing handsetrelatedissues. Handsetexchange– Telstraputinaplaceapolicythat whereacustomer’sNextG™handsetwas notproviding coverageequivalence,asalastresortandingenuinecases, Telstra wouldexchangetheirhandsetforanotheratno additionalcosttothecustomer. Inaddition,anextensivecustomercommunicationprogramsaw: • customersreceiveinexcessof10lettersandtext(SMS) messages advisingthemoftheclosure; • anextensiveadvertisingcampaignonradio,TVand print; and • aPR campaign tokeepcustomersupdatedwithan average ofthreemedia releasesissuedeachweekinthesixmonths leading uptoclosure. Connecting Wadeye Casestudy InAugust2007 Telstraundertooka majorprojecttoimprove telecommunicationsservicestotheNorthernTerritory communityofWadeye,located400kmsouthwestof Darwin. WadeyeistheNT’slargestremoteIndigenouscommunity withapopulationofmorethan3,000.Itisisolatedby road forfourtofivemonthseachwetseasonwhentheDaly River floodsandmakestheroadcrossingimpassable.Thecommunity previouslyreliedonsatellitetelecommunicationsservices. Therewas nomobilecoverage,internetspeedswereslow andthesystemwaspronetooutagesaswet season thunderstormfrontsrolledacrossthecoast. Allofthischangedwiththecommissioningofanoptical fibretransmissionlink,connectingWadeyeandthenearby communitiesofPalumpaandPeppimenartiwiththe national telecommunicationsnetworkatacostofaround$6million. Theprojectreceived$2millioninFederalGovernment funding underthesponsorshipoftheLocalGovernmentAssociation of theNT.Telstramettheremainderofthecostsandfully funded theinstallationoftheNextG™basestationatWadeye. 55
    • 56 4.Customers matter Indigenouscommunities Telstra’s National IndigenousDirectoratecontinuestowork with governmentsandstakeholdergroupstodeliverimproved telecommunications servicestoremoteIndigenous communities. Amajorconstructionprojecttoservicecommunitiesinthe Ngaanyatjarra Lands inWesternAustraliawas completedin February 2008 in theareawestofSurveyorGeneral’sCorner wherethebordersofSA,WAand NTmeet.Anopticalfibre cablewasinstalled fromBlackstonetoconnectthe communitiesofWingellina,Jameson,Warburton,Wannan andWarakurna.Thisreplacedtheexistingnarrowbandradio system andenabledconnectionofADSLbroadbandineachof the communities.ThisprojectreceivedpartialFederalfunding andcontributions fromtheGovernmentofWesternAustralia andtheNgaanyatjarraorganisations. In addition,workhas continuedontheCommunityPhone Program.Telstra CommunityPhoneswere developedin conjunction with theCentreforAppropriateTechnology (basedin AliceSprings) forconditionsfound in remote Australia.CommunityPhonesarecard-only,housedin astainlesssteelcasing andveryrobust.Telstrainitially deployed20oftheseunitsonapilotbasis,mainlyinthe Alice Springsregion.Afurther216havebeeninstalledin remotecommunitiesintheNorthernTerritory,andthe Pilbara andKimberleyregionsofWesternAustraliawith the supportoftheAustralianGovernmentthroughthe Department ofBroadband,Communicationsand theDigital Economy.Thepurposeofthisarrangementistoprovidefor the urgentprovision ofcommunityphones,and pre-paid phoneproductstoremoteIndigenouscommunitieson anas-needsbasis.In 2007/8workcontinuedtoupgrade installations tothecurrenttechnologystandardand in somecases torelocateservices. TelstraConnectedSeniors® LaunchedinAugust2007,TelstraConnectedSeniors®was developedtohelpolderAustralianslearntousemobileand internettechnology. ThroughTelstraConnectedSeniors®,Telstraplanstoprovide $3 millionofgrantfundingtocommunitygroupsand organisationsoverthenextthreeyears.Alongwithfinancial funding,grantrecipientshaveaccess toeducationaltools and resourcesthatallowthemtoconductfunandinteractive educationsessionsfortheirmembers.Theseeducation programswillequiptheirmemberswithnewskillssuch as connectingwithotherseniorsonline,makingvideocallsor sendingtextmessages. Telstrabelievesthisnewgrantprogramwillbeverypopular withseniors,asresearchshowsthateducationisoneofthe topfourissuesofinterestandconcerntothoseagedover 50. In 2007/08: • over$750,000 ofgrantfundingwasprovidedto110 communityorganisations; • over1,900 seniorsfromclubsorcommunitygroups havelearntmoreabouttechnologyandbeentrained inmobile,emailorinternetuse; • thereweremorethan2,000websitevisitspermonth toTelstraConnectedSeniors®website (www.telstraseniors.com.au);and • we developed19workshopeducationmodules specificallywrittenanddesignedforTelstraConnected Seniors®participants. Telstraunderstands thevitalrolethat telecommunications playsinkeeping thisvastcontinent connected
    • VIEW clubs of Australia Casestudy Over21,000AustralianwomenbelongtoVIEWClubs, apartofTheSmithFamily,in387communitiesnationwide. VIEWmemberscontributesubstantiallytolocalcommunity capacitybuilding,donatingtheirtimeandtalentslocally, aswellasraisingfundsfordisadvantagedchildrenand theirfamiliesthroughTheSmithFamily’sLearningfor LifeProgram. ThankstoaTelstraConnectedSeniors®grantof$62,000, around1,000 seniorAustralianwomenfrom65 VIEWclubs willgainbasicinformationandcommunicationskillsusing computersandmobilephones. TheTelstraConnectedSeniors®programhasenabled VIEW todevelopskilledandconfidentvolunteertrainerswho will continuethisprogrambeyond2008.AndTelstraConnected Seniors®enablesfasterdisseminationofinformationaround theVIEWClubnetwork,aswellasstrongerconnections betweenmembersregardlessoftheirgeographiclocation. ThroughTelstraConnectedSeniors®,memberswillbe able todevelopnewinterestsandabilities.Theywillbeableto use websiteswithconfidencetoobtaingoodsandservicesthey currentlyhavenoaccessto.Memberswillbemorein touch withtheirfamilies,friendsandthecontemporaryworld. RobinVargofromVIEWClubssaysthesupportivelearning environmentisagreatbenefitformembers. “Beinghelpedbywomentheirownagereallyhelpsto dispel the‘I’mtoooldforthis’excuse.Itisverygratifyingtowitness theVIEWmemberswhoarrivedatasessionlookinganxious, walkoutwithasmile,”Robinsaid. ViewClubmembersRobynMcGilvray,EvelynTalbotandMarieSouthwell improvingtheirmobilephoneskillsinTamworth. Planned actions for 2008/09 • ExtendtheTelstraBillAssistanceProgramtocover mobile andinternetbills torecognisethechangingnatureof communications usageamonglow-incomeAustralians. • Providea web-based inquiryformforinformationabout accessiblefeaturesofNextG™mobilehandsetstoenable people witha disabilitytochoosetherightmobilehandset fortheirneeds. • Build onthesuccess ofourworldclassT[life]™storesby opening orrefreshingmorethan80T[life]™storesacross Australia,toprovidearetailexperiencelikenootherfor our customers. • DeployenhancedHSPA(HighSpeedPacketAccess Plus) asanational softwareupgradetoincreasepeaknetwork downlink speedsacrossournationalNextG™ network from thecurrent14.4Mbps3 to21Mbpsin2008. • WithsupportfromtheNTGovernmentandRioTintoAlcan, Telstra will rollout800kmsoffibretoconnectninenorthern ArnhemLandIndigenouscommunitiesand thetownship ofNhulunbuytothenation’sfibreopticbackbone. 3 Peaknetwork downlink speed.Actual customer downloadspeeds willbelessandwill vary due to traffic loading,distance from thecell, local conditions,hardware,software and otherfactors. 57
    • 5Environment matters Telstra is committed to providing good stewardship of the environment. David Quilty,incoming Group Managing Director, Public Policy & Communications AtTelstra,responsiblestewardshipoftheenvironment benefitsourshareholders,ourcustomers,ouremployees andthewidercommunity.Theefficientuseofnatural resourcesisbothcommerciallyandenvironmentallyprudent. Telstraoperatesinavarietyofnaturalandurbanenvironments, withournetworkinfrastructurespanningAustralia.Tomanage theimpactofouractivitiesweaimtointegrateenvironmental considerationsintoeverydaybusinessactivities.Ourenvironmental footprintiswidebutshallow.Whileouroperationsextend nationallyacrossallcommunities,ourimpactin anyone locationisrelativelyminor. AttheheartofTelstra’sapproachtoenvironmentalstewardship isasimplenotion–efficientuseandconservationofresources isthemosteffectivewayforbusinesstocontributeto environmentalprotectionandatthesametimereduce operatingcosts.Forthisreason,energy,water andwaste managementprogramsformthecentrepieceofour environmentalstrategy.Byreducingtheenvironmental impactofouroperations,weprovidebettervalueforour shareholders,reduceongoingcosts,efficientlyuseprecious resources,andbenefitthewidercommunity. Telstra has come a longway since weinstalled our first solar panelin 1974.Not only are we one of Australia’slargest users of solar power,operating over 10,200 solar powered sites,we have continued toinvestigate the potential use of innovative renewable energy sources.The latest addition in June 2008 saw ahydrogen fuel cell test facility installed at our Melbourne headquarters.The hydrogen fuelcell,aswellasasmallset of solar panels,will betrialled by Telstra’s Property Group during 2008,and their potential usein Telstra’s network and buildings willbe assessed. In September 2007,Telstra established the Climate Change Review Group whichiscomprised of senior executives from across the company.This group co-ordinatesthe company’s climate change response,includingthe implicationsfor Telstra of the National Greenhouse and Energy Reporting System,and the proposed Carbon Pollution Reduction Scheme.The Group also hasarole to ensure there iswider understandingand recognition of the many cost effectiveenvironmental initiativesbeingundertaken acrossthe company. Theefficientuseofnaturalresources is both commerciallyandenvironmentally prudent
    • With Ballarat stillon Stage 4 water restrictions,we’re really pleased to be able to reduce water consumption in thisway.” BigPond Operational Support Centre Manager Russell Dicksonsaid,“It’sbeenagreateffortbyeveryoneonsitehere inBallarat.As well asour greenhouse gas emission reductions,the teams have taken it on themselves to implement other green initiativesin their own time, including aPlanet Ark toner recycling program,plastic and canrecycling,moving some paper-based systems online and takingpart in Clean Up Australiaand Clean Up Office days. “We’ve drawn on resourcesavailable through BigPond’s Vitality program,and really appreciated the great support we’ve had from senior managers,Telstra Property and the Corporate Environment Group.I’d encourage other Telstra work teams to consider how afewinexpensive and simple steps can help reduce the impact of our work on the environment.” Greenhouse win for environmental warriors Casestudy Telstraisseriousaboutitsenvironmentalperformance, andisworkingonmanyfrontsata corporateleveltoreduce itsenvironmentalimpact.Butwealsohaveenvironmental warriorstakingmattersintotheirownhands. Withjustafewsimplesteps,theteamatBigPondOperational SupportCentreinBallarathasreducedtheirgreenhouse gas emissionsandtheirlevelsofwaterconsumption. TheBigPondCentreteamsharestheBallaratsitewith colleaguesfromTelstra’sConsumerMarketingandChannels group.Aftertheformationofanonsite‘GreenTeam’two yearsago,environmentalmattershavebecomea high priorityfortheseemployees. AccordingtoHelenVanDerVeer,BigPondBusinessSupportLead, “Oneofthemainactionswetookwastoreducegreenhouse gasemissionsassociatedwithlighting.We realisedthat our office’sinternallightingwasprogrammedtoworkon Sundays,eventhoughthebuildingwasunoccupied.” “ThroughTelstraProperty,wewereabletoarrangefor lights tobeturnedoffonSundays,whichsavedover10tonnesof carbonemissionseachyear.Asacomparison,theaverage Australianhomeemits14 tonnesofcarbonperyear (includingtransport),”Helensaid. “Ourbuildingalsohad35downlightsonthewalls,which existedmostlyfordecorativepurposes.We hadmost of these permanentlyturnedoff,whichsavedanother10 tonnes of carbonemissionsandover$800ayearinpowercosts. “WithgreatassistancefromourHS&Erep,SimonMarcollo, we’ve installedadesertcubewaterlesssysteminthe men’s urinals.ThiswaspartofTelstraProperty’snationalrollout ofwaterlessurinals. BronwynFlemingandStevenDavidson– BigPondOperationalSupportGreenTeammembers. Theseinitiatives,suchasconductinga lifecycle environmental assessmentofonlinebilling,establishing aPackaging Innovation Group,andencouragingstaff participationthroughourGreenChallenge@Telstra program,areall helpingtomanageTelstra’scarbon footprintinaninformedandresponsibleway.Importantly, Telstra is also identifying waysinwhichTelstra’scustomers andbusinesses canusetelecommunicationsproductsand services toreducetheirowngreenhousegasemissions. Telstra haswellestablishedsystemsandproceduresfor managing ourenvironmentalrisksandourtrackrecord demonstratesthatwemeettheregulatoryrequirements placed onus transparentlyandeffectively.Maintaining our high standards ofperformanceandreportingisnot without cost.We observeacontinuingexpansionof environmentalregulationatState,TerritoryandFederal government levels,alongwiththeirconsequentcompliance andreporting obligations.Climatechangeisaddinga newset of obligations intothemix,withsomevariationin approach betweenjurisdictions.Ourpolicysubmissionstogovernment haveemphasisedthedesirabilityofstreamliningregulation, toenable timeand costtobefocusedonachievingimproved outcomes ratherthanjustreportingforthesakeofit. Engaging employees Ourcommitmenttogoodenvironmentalstewardshipcontributes toTelstra’s employeevaluepropositionbyfosteringemployee engagement andmotivation.Basedonthisyear’semployee engagementsurvey(84percentresponserate),78percent of employees believe Telstraisanenvironmentallyresponsible company,a figureabove theAustralianNationalNormof 74percent.Telstraengageswithemployeesonenvironmental issues todeterminetheirconcernsand interests,encourage anactiveroleinpublicpolicy,keepabreastofemergingissues, andtoensure thatconsiderationoftheenvironmentis integratedateverylevelofthebusiness. 59
    • 60 5.Environment matters ClimateChangeReviewGroup TelstraformedaClimateChangeReviewGroup(CCRG) in July 2007.Comprisedofseniorrepresentativesfrom business units across thecompany,thegroup’staskis todevelopand implement climatechangepolicyandcoordinateactivitiesto reducetogreenhousegasemissions.Thegroupalsomonitors resourceconservationprogramsandactivitiesalready underwayinTelstra,considersopportunitiesandproposals toenhanceresourceconservation,andidentifiesbusiness units andindividual performerswhoare,by virtueoftheir day-to-day responsibilities,alreadymakingimportantresource conservation decisions.On occasion,expertsare engagedto conduct formalrisk-assessmentsand costbenefitanalysesof proposals.TheClimateChangeReviewGroupreportsfindings, conclusions andrecommendationstoTelstra’sPolicyCouncil andtotheChiefExecutiveOfficerLeadershipTeamasrequired. GreenChallenge@Telstra InJanuary 2008,Telstra’sCorporateEnvironmentGroup soughtfeedbackfromnearly800Telstraemployeesto ascertaintheirenvironmentalinterests,concernsand behaviours.Theinformationgainedfromthesurvey informedthedevelopmentofthenewgreenofficeprogram, GreenChallenge@Telstra,whichwas launchedonWorld EnvironmentDayinJune2008. GreenChallenge@Telstraisa jointinitiativebetweentheTelstra businessunitsCorporateHealthSafety& Environmentand TelstraProperty.TheprogramchallengesTelstraemployees to considerhowtheirbehaviouratworkimpactstheenvironment andtorecognisethattheycaninfluencemuch morethan recyclingorwateruse.Theprogramaimsto: • raisestaffawarenessoftheenvironmentalimpactsthat resultfromdailyofficeactivitiesandpractices; • educatestaffonhowtoreducetheircarbonfootprint; • enablestafftomakeinformeddecisionsabouthow they commutetowork; • encouragestafftouseTelstra’sconferencingtechnology toreducebusinessairandtaxitraveltocutgreenhousegas emissions;and • engagestaffinenvironmentalmanagementand decision‑making. Improving our energy efficiency Theenvironmentalimpactsassociatedwithenergy consumptionthroughtheburningoffossilfuelsarewidely acknowledged.Energyefficiencybringsaboutopportunities toreduceenvironmentalimpacts,reducecostsassociated withwastefulenergyconsumptionanddeliversocialbenefits suchascleanerair.TheimpactofTelstra’senergymanagement programsisconsiderable.Weareoneofthelargestowners andoperatorsofcommercialandnetworkproperties,wehave thelargestautomotivefleetofitskindandwe arethelargest privateoperatorofsolarpanelsinAustralia. Wecan have asignificant positive impact by facilitating greater energy efficiency across our business,supply chain and customer base. Energyconsumption Telstra’s total measured energy consumption for 2007/08 was 6,064,687 GJ.This includes electricity use,natural gas for buildings and the network,LPG,diesel and petrol for vehicles and dieselfor power generation. While fuel consumption inTelstra’s fleet was reduced,the graph below shows that our overall energy consumption for 2007/08increasedby3.7percentfrom2006/07.Thisanticipated rise wasdue to anumber of factors. First,there wasanincrease inthe use of electricity in our network facilities due to concurrent operation of the Next G™ and CDMA systems.The closure of the CDMA network in April 2008 will remove this demand from our energy requirements in 2008/09. Secondly,there wasalso substantial growth in internet data centresin CBDsites,and some changesto site functionality. Thirdly,anestimate for electricity used at unmetered sites wasincluded for the first time in2007/08.An unmetered site isapiece of equipment suchas aroadside cabinet that does not have ameter but ischarged afixed amount based on the equipment energy rating.Consumption for unmetered sites in2007/08 wasestimated at 220,503 GJ.The inclusion of this estimate provides amore accurate picture of Telstra’s electricity consumption,and demonstratesTelstra’scommitment to transparent and accurate reporting. 78per centofemployeesbelieveTelstrais anenvironmentallyresponsiblecompany
    • 61 5.Environment matters Energyconsumption2002–2008 Energy management programscontinuedtoimproveenergy efficiencyin our network,buildingsandoffices.In2007/08we saved31,924GJofenergy,or9,605tonnesCO2equivalent. This isequaltothegreenhousegasemissionsfrom around 680averageAustralianhomesforanentireyear. In June2008,Telstraswitchedoffscreensavers onaround 36,000computersacrossthecompany,reducingTelstra’s energy consumptionbyan estimated646tonnesof CO2 equivalentannually –comparabletothegreenhousegas emissionsfrom 46averageAustralianhouseholdsforayear4. Telstra’s screensaverswereremovedfromallWindowsXP laptops and desktopcomputers,andreplacedwithablack screensaver.This simpleinitiativeispartofawiderprogram thatpromotes practicalwaystoconserveenergyand contributetoagreenerworkplace. Solarenergy TelstraisoneofAustralia’slargestusersofsolarpower with10,2655 solarpoweredsitesincludingexchanges, radioterminals,smallrepeaterstationsandpayphones. ManyofthesesitesareinremotelocationsenablingTelstra toprovidetelecommunicationservicestotheseremoteareas. InJune2008ahydrogenfuelcelltestfacilitywasinstalled atourMelbourneheadquarters.Thehydrogenfuelcell,and asmallsetofsolarpanels,willbetrialledbyTelstraProperty during2008,andtheirpotentialuseinTelstra’snetworkand buildingswillbeassessed. Transportefficiency Thisyear we continued to purchase LPGand dieselvehicles asa means of reducing the greenhouse gas emissions from Telstra’s fleet.We also continued toinstall GPSsystems in technicians’vehiclesto link into the jobdispatchingsystem, to improve route efficiency and productivity.In addition, thisyear we reduced the number of vehiclesin the fleet by 17 per cent,reducingfleet energy use by 16.8 per cent. In 2007/08,Telstraused 42,854,868 litresof fuel(LPG,petrol and diesel) and produced 105,736 tonnes CO2 equivalent in greenhouse gas emissions,a reduction of 16.7 per cent inlitres used and 21 per cent in tonnesCO2 equivalent from2006/07. The decrease intransport greenhouse gas emissions is due primarily tothe reduction invehicle numbers and consequent fuelconsumption. Our partnership with Greenfleet continues.Greenfleet isa not-for-profit organisation that plants trees tohelp offset vehicle emissions as wellas benefiting the environment through increased native habitat and decreased salinity and erosion.Aspart of our salary sacrifice package for employees,apayment ismade to Greenfleet for each vehicle. Thiswasintroduced in 2003 and by 1 July 2005,allsalary sacrifice vehicleswere covered by thispayment. During2007/08,air travelby Telstrastaff was125,727 sectors (one way flights) or 124,054,956km of flight.This compared with 118,279 sectors for 2006/07.Datawascollectedon total kilometres travelled for the first time in2007/08.This will provide abenchmark for future reporting. 2002/03 Total Energy use (GJ) GJ GJ per $M revenue Total Energy use (GJ) per $M revenue 2003/04 2004/05 2005/06 2006/07 2007/08 8,000,000 6,000,000 4,000,000 2,000,000 0 10,000,000 400 320 240 160 80 0 4 Toprovideameaningfulcomparisonofgreenhousegasemissionsthroughout thissection,weuseinformationpublishedbytheAustralianGovernment DepartmentofEnvironment,WaterHeritageandtheArtsinGlobalWarming CoolIt(www.environment.gov.au/settlements/gwci/households.html). Thisstatesthat:‘Eachyear,theaverageAustralianhouseholdgenerates about14tonnesofgreenhousegas.’ 5 Asat30June2008.
    • 62 Officepaperconsumption2002-2008 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 16 12 8 4 0 400,000 300,000 200,000 100,000 0 Volumes of office paper (reams) Volumes of paper (reams) per domestic staff Reams Reams per domestic staff Water Asatelecommunicationscompanyourenvironmentalimpact relatingto water use isrelatively low.We use water in our offices,linedepotsandexchanges,primarilyforstaffamenitiessuch askitchens,toiletsand showersand for coolingtowers. During2007/08,Telstraconsumed874megalitresofwater at its buildings and sites (this does not include washing of Telstra vehiclesatcommercialcarwashesorofhomevehiclesby employees). Thisyear,actionstoreducewaterconsumptionincludedthe installation of waterless urinals,flow restriction devices on taps and upgradingoftoiletcisterns.Inaddition,somewater-cooledcoolingtowershavebeenreplacedwithair-coolingunits,andareduction inwaterdischargetowasteincoolingtowerswasachievedbyincreasingcyclesofconcentrationtooptimumlevels.During2007/08, watersavingactionssavedanestimatedtotalof52megalitresof water acrossour office buildingsand network sites. Ourundergroundnetworkinfrastructure,accesspits,manholesand pipes,may periodically be filled with ground water and, whenitrainsheavily,stormwater.During2007/08 approximately 26megalitres of water were removed from network access pits duringmaintenanceactivities.Telstrarecycledapproximately 20 megalitresof this,compared with approximately 16.8 megalitres in 2006/07. Duringfieldconstructionactivityenvironmentalcontrolsare put inplace tomanage soil,wastes and other materials to prevent thembeingwashedintostormwaterdrainsandnatural waterways. Managing resource efficiency and waste OneofthekeyenvironmentalissuesfacingTelstra,and the majority ofotherlarge businesses,istheuseof resourcessuch asmaterials,energyand water.Telstraisamajoruserand purchaserofmaterialsrangingfromnetworkequipment andconstruction materials,suchas pits,pipeand cable,to stationeryandofficepaper.Materialusehasenvironmental impacts,throughconsumingnaturalresourcesand generating wastethatrequiresdisposal.Wearecommittedtoimproving efficiencies andminimisingtheimpactsofourmaterialuse. Paper To minimise paperusewithinTelstrawehaveintroduced newinitiatives andimproved existingactivitiestomovefrom paper-based systems toonlinesystemsfor providing internal information toemployees.Telstraemployeesnowhaveonline optionsforcompletinginternalprocesses,suchasapplyingfor leave and orderingmaterials,andfor morecomplexprocesses such as tenderapplicationsforsupply.Asa result,we have decreased theamount ofpaperrequired,andimproved the efficiencyofourinternaladministrationprocesses. In 2007/08 theconsumptionofofficepaperwas reducedby approximately 35,900 reams,whichisa 14percentreduction from2006/07.Overthelastsixyears,thenumberofreams usedperemployeehasdecreasedfrom10.3in 2002/03to 6.5in 2007/08. Telstra continuestooffercustomersthechoiceofonline billing,including theabilitytosendTelstrabillstomobile phones.Inaddition,followingcustomerresearchlastyear Telstra introducedanewlooksummarypaperbilltoreduce both complexity and theamountofpaperused.Thismeans anenvironmentalbenefitisdeliveredbyeverycustomerwho switchestoonlinebillingorchoosesthesummarybill. 5.Environment matters
    • Waste WeuseTelstra’s NationalWasteManagementSystem (NWMS) formostofourwasteservices,includingthecollection, transportationandprocessingofgeneralwaste,recyclable items,liquid wasteandhazardouswastes.TheNWMS covers mosttypes ofwastegeneratedfromoffices,fieldoperations andcustomerpremises.Exceptionsincludethecollectionof scrapcable,rentalphonesand mobilephones,whichare managedseparatelyunderindividualprograms. Thisstreamlinedapproachassistsallemployeestodispose of wastein anappropriatemannerbyprovidingasingle pointofcontacttoarrangeforcollectionanddisposal. During2007/08,Telstra: • recycled69percentofallsolidand liquidwaste across thebusiness – anincreasefrom65percentin2006/07; • reducedofficepaperconsumptionbyapproximately 35,900 reams– a14percentreductionfrom2006/07; • recycled250 tonnes ofbottles,cans andmilkcartons and2,927tonnes ofpaper; • decreasedthevolumeofourtotalwastefordisposalto landfillorspecialtreatmentfrom17,527tonnesin2006/07 to15,085 tonnes in2007/08.Thisdecreaseisprimarilydue toareductionin generalwasteandpitwaterdisposedto atreatmentfacility;and • divertedorganicwastefromlandfillthroughrecycling, saving 15,727tonnesofgreenhousegasemissions (CO2equivalent) during2007/08,downfrom 22,377 in2006/07. The LCA process also identified the most significant contributors toenvironmental impact.It found that greenhouse gasemissions savings come from the transport avoided to deliver conventional paper bills and removing the need for bill printing and sorting equipment.This isa new insight into the benefits of online billing and our first quantification of the greenhouse gasemissionssaved. Online billing study Casestudy Itiswidelyassumedthatonlinebillinghasa lower environmentalimpactthanpaperbilling.Withelectricity, fuelandprintingconsumablesusedtoprintpaperbills anddistributethembypostalservices,thereareobvious savingsofpaperandenergybyusinganonlinebill. Butisthisthewholepicture? Behindthescenes,computerserversand homePCsuse electricitytogenerateandaccesstheonlinebills.Arecentstudy byTelstra’sCorporateEnvironmentGroupandenvironmental consultantsURSAustraliaPtyLtd usedalifecycleapproach totestthisassumption,andtoprovidegreaterinsight into the broaderenvironmentalimpactsandbenefitsofonline billing. TheLifeCycleAssessment(LCA)processisarigorous techniqueforassessingtheenvironmentalinputsand impactsassociatedwithaproductorprocess.Themethod isguidedbyanInternationalOrganisationforStandardisation standardandrequiresapeerreviewbyaninternationally recognisedexpert.Thestudyconsideredinputssuchas energy andmaterialusetocomparetheenvironmentalimpacts of onlinebillingandpaperbillingforbillpreparation,distribution anduseofthebillbythecustomer(suchasprintingthe bill athome). TheLCAprocessshowedthattherewereenvironmentalbenefits intheuseofonlinebilling.Forexample,thestudyfound that ifonemillionresidentialcustomersweretoturnofftheir monthlypaperbillandselectonlinebillingonly,andassuming that50percentprinttheironlinebillathome(average 6.5 printedpages),theenvironmentalbenefitswouldbe: • annualsavingsof18.9tonnesCO2equivalent; • annualsavingsof39,000reamsofpaper;and • reducedenvironmentalimpactsforlanduse, humantoxicityandresourceuse. 63
    • 64 Productstewardship Telstraunderstandstheimportanceofgood product stewardship andis continuouslylookingfor opportunitiesto minimisethelife-cycleimpactsofourproductsandservices. In2007/08,Telstra continuedasasignatorytotheNational Packaging Covenant(NPC)andsetupaPackagingInnovation Group withcrossbusiness representativestohelpdrive our packaginginitiatives.Formoreinformationaboutourpackaging initiatives,seeTelstra’sNPCreport,availableonlinefrom December2008atwww.packagingcovenant.org.au In2007/08,Telstra continuedtosupporttheMobileMuster program withbins providedinallTelstrashopsand the additionofMobileMusterpostbagsforconsumerstosend unwantedmobile phonesandaccessoriestotheprogramfor recycling.Thetotalcollectionfortheprogramwas 97tonnes of mobile phonecomponentsincludingalmost790,000 batteries and handsets.CollectionsfromTelstrastores totalled 24tonnes ofmobilephonecomponentsincluding morethan90,000handsets. Greenhouse gas emissions Management ofgreenhousegasemissionsisanimportant globalissue.Telstrarecognisesthisand hasbeenmeasuring andmanaging our ownemissionsforsomeyears.Thenature of our operations meansthatourgreenhousegasemissions are mainlyderivedfrom: • theuseofelectricityandgasforlighting,heatingandair conditioning in officeandnetworkbuildingsand electricity tooperatethenetwork(92percent); • theuseoffuel(LPG,petrol,diesel)forvehiclesand stand-bygenerators(sevenpercent);and • by-productsoforganicwastedecomposition(suchas paper,cardboard,timber,foodscraps)thatgoestolandfill (one per cent). Ourprogramstoreducethecompany’sgreenhousegasemissionsfocuson the more efficient use of electricity and fuel, andimprovingourrecyclingoforganicwastes,suchaspaper and cardboard,in order to divert waste fromlandfill. Telstraisalsoidentifyingways inwhichTelstra’scustomers and businesses can usetelecommunicationsproducts and servicestoreducetheirowngreenhousegasemissions. In2007/08,Telstra’stotalgreenhousegasemissionswere1,500,803 tonnes CO2 equivalent,anincrease of 7.9 per centfrom 2006/07.Thisrisereflectstheincreaseinelectricityconsumption associated with the concurrent operation of the Next G™ andCDMAnetworks,thegrowthininternetdatacentres,and the inclusion of unmetered sites.The estimate for electricity used atunmeteredsites,whichwasincludedforthefirsttime thisyear,added 4.8 per cent to the greenhouse gasemissionstotal. Greenhousegasemissions2002-2008 5.Environment matters TelstraisoneofAustralia’s largest users ofsolar power 2002/03 Greenhouse gas emissions (tonnes CO2e) per $M revenue 2003/04 2004/05 2005/06 2006/07 2007/08 Greenhouse gas emissions (tonnes CO2e) 2,000,000 1,600,000 1,200,000 800,000 400,000 0 100 80 60 40 20 0 tonnes CO2e tonnes CO2 per $M revenue
    • Whiletheincreasing customeruseofTelstra’sservicesthrough our rangeoffixedandmobiledevices willrequireanincreased useofelectricity,wearealwayslookingforways todeliverour servicesmoreefficiently. Wecontinue to implementarangeofprogramstodeliver ongoing greenhousegasemissionssavings,suchasefficient use ofelectricityinbuildings,theintroductionofLPGvehicles, andrecyclingoforganicwastessuchaspaper,cardboard andtimber. The totalgreenhousegassavingsfor 2007/08were 173,686 tonnes CO2equivalent.Thisincludessavingsduetonew initiativesimplementedthisyear(25,332tonnesCO2equivalent) aswellasongoingsavingsresultingfrominitiativesimplemented since2000/01(148,354tonnesCO2equivalent).Totalsavingsare equivalenttothegreenhousegasemissionsfromapproximately 12,400 averageAustralianhouseholdsforayear. Savings duetonewinitiativesin2007/08include9,605tonnes CO2in electricitysavingsand15,727inwastesavings. Greenhousegas emissionssavings(fromprioryearinitiatives andnewinitiatives) 2002-2008. Managing our land use appropriately To providea worldclass telecommunicationsservicein Australia weneedtodesign,build,operateandmaintain the network infrastructuretosupporttheservice.Inorder todo this,wearerequiredtocomplywiththerelevantlegislation. Accessto land tobuild telecommunicationsnetwork infrastructureislegislatedbytheTelecommunicationsAct 1997and relatedsubordinatelegislation.TheEnvironment Protectionand BiodiversityConservationAct1999(EPBC) requires Telstratohaveaprocessthatidentifies‘Areasof Environmental Significance’priortoundertakingactivity intheseareas oraccessingcertainpartsofland. Telstra employees share top petrol saving tips Casestudy In2007/08,over150 Telstraemployeeslearnthow toboosttheirsavingsbyusinglesspetrolwhenthey participatedinaninternationalfueltrialwithShell tominimisetheenvironmentalimpactofTelstra’s fleetoperations. Two-thirdsoftheparticipants(68percent)achievedfuel economybenefits,withmorethanaquarter(28 percent) reducingtheirfuelconsumptionby10to30percent. The averageparticipantachieveda fueleconomysaving of four tofivepercent. “Telstrahas thelargestcommercialfleetofitskindin Australiaandhasbeentakingactiontoreducethe environmentalimpactofourfleet,”saidBrendan Stooke,GeneralManagerTelstraFleet. “ThetrialwithShellisyetanotherexampleofhowwe are reducingourcarbonfootprintandwe’repleasedtosee that overathird(41percent)ofourdriversinthetrialrecorded fueleconomyimprovementsintherangeof5to20 per cent.” TelstraistheonlycompanyinAustraliatohavetaken part in theGlobalFuelEconomyStudywhereShellpartnered with 10multinationalcompaniesineightcountriesandtrained over1,000driversonhowtogetmoreoutoftheirfuel. Followingthesuccessofthetrial,communicationswillbe rolledouttoTelstrafleetdriverstoencourage‘green’driving techniquestoreducefuelconsumption.Theprogramwill bepromotedusingbumperstickersonTelstrafleetvehicles. CraigWhite,TelstraProductManagement,participatesinthetrial. 65
    • 66 Greenhousegas emissionssavings(fromprioryearinitiativesandnewinitiatives)2002-2008 5.Environment matters 2002/03 Savings (from previous years’initiatives) Electricity (for current year) 2003/04 2004/05 2005/06 2006/07 2007/08 Waste (for current year) Fleet (for current year) 200,000 160,000 120,000 80,000 40,000 0 Each year,Telstra conductsbothnewandmaintenance-based infrastructureprojects(numbersvaryfromyeartoyear). Inordertomanage thepotentialenvironmentalimpacts of ourfieldactivities,weundertakecomprehensivepre-design risk identification,designriskassessmentandonsiterisk managementprocesses. During 2007/08,Telstraissuedapproximately53,000land access notices,andconducted92environmentalassessments forworkinAreasofEnvironmentalsignificance.Actionsrequired for moresignificantprojectworkinareasofenvironmental significancewere: Actions 06/07 07/08 CodeNotificationstoDEWHA 25 46 EPBCActreferralstoDEWHA 2 8 TheincreaseinthenumberofDepartmentoftheEnvironment, Water,HeritageandtheArts(DEWHA)noticesandreferrals between2006/07and2007/08canbepartiallyattributedto nationalprojectssuch astheNextG™networkrollout,which extendedintomoresensitiveareassuchasnationalparks. Visualamenityandnoise Telstra is particularly conscious of the potential impact on visualamenity that iscaused by the installation of newmobile facilities inurban Australia.During the planning,design and construction process Telstra follows the Guidelines for Low Impact Mobile Facilities to minimise the impact on visual amenity.Telstra requires all employees,contractors and suppliers of equipment tomeet applicable Australian Standardsand government regulationsfor noise emissions. Fuelstoragesystem Telstra stores fuel at alarge number of network sites to provide back upby diesel generators.A program isin place to monitor underground fuel storage tanks for leaks and other environmentalimpacts. Payphones The majority of our 22,177 payphones are lowimpact facilities anddonotrequireenvironmentalimpactassessment.However, where payphones are to be installed inAreas of Environmental Significance,further planning approval and assessment is undertaken.To minimise the environmentalimpact from payphoneswe: • use solar power in remote areas where there is noreadily available source of electricity; • repair and reuse rather than dispose of faulty electronic modules; • provide reusable packaging for many payphone spare parts; • recover and reuse surpluspayphone parts; • reuse whole payphones and booths when relocations or removalsoccur;and • break down non-reusable payphones for parts and materialsfor appropriate recycling.
    • Compliance During 2007/08,Telstra’senergyandgreenhousedata,which form asignificant part oftheenvironmentaldata,was subject totheverificationprocess oftheGreenhouseChallengePlus Program.This rigorousprocessiscarriedoutbyanindependent auditorand providesvaluablefeedbacktoTelstraonthe management andaccuracyofitsextensivedatafrom over 14,000sitesand 12,000 vehicles.Detailsof theverification process canbefoundatwww.greenhouse.gov.au/ greenhousefriendly/business/verification.html Theverificationreportnotedthat“theoverallprocessfor tracking andrecordingelectricityconsumptionappears comprehensive andis effectivelymanaged”.A discrepancy wasfound inthetrackingofenergyconsumptionfrom unmeteredsites.In2008/09Telstrawillfocus onthisarea to furtherimprovedataaccuracy. Systems formonitoring andmeasuringtransportfuels were alsosubjecttotheverification.Thereportnotedthat “theoverallrigourofthefinancialelementsofthesystem andthedetailedreviewofrelativefuelconsumptionstatistics provides ahigh levelofconfidencethatthetotalconsumption isaccurate”. In 2007/08,Telstra hadnomaterialbreaches ofany environmentallaws. Planned actions for 2008/09 • Calculatethecarbonfootprintsofallbusinessunitsand corporategroups. • Determinethecarbonintensity(tonnesofCO2e/unitof service)ofTelstra’sEnterpriseandGovernment service offerings. • Increasethe2009 employeeengagementsurveyscore for the‘environmentresponsibility’question. • Completeastudyonthehydrogenfuelcellfacilityand solarpanelsinstalledatourMelbourneheadquartersto assesstheirpotentialuseinTelstra’snetworkandbuildings. • Enhance Telstra’sdrivereducationprogramwithan awarenessprogramtoencourageourfleetdriverstoadopt greendrivingtechniquestoreducefuelconsumptionand CO2emissions. Network Construction Carbon Footprint Casestudy Telstra’s Network Construction group isthe first line of business within the company to estimate and compile agreenhouse gas(GHG)inventory. The methodology used for calculating their carbon footprint wasderived from the Australian Government’s Department of Climate Change NationalGreenhouse AccountsFactors, which providesguidance on the emission sourcesto include in aGHGinventory,and howto quantify these emissions. The estimated carbon footprint resulting from the activities of the Network Construction group is 27,840 tonnes carbon dioxide equivalent (CO2e),which equates to2 per cent of Telstra’s total greenhouse gasemissions.Emissions from their fleet activitiesare the largest contributor to their carbon footprint. The report presented abaseline assessment of the carbon footprint of Network Construction and provided recommendations,includingpromotion of fuelefficient drivingand developingcarbon reduction measures and targets. Network Construction nowhasan opportunity to target and reduce their energy costsand their carbon impact and willbe measuringtheir footprint year on year. This year Telstra stores collected 24 tonnes of mobile phone components for recycling 67 Smarter, greener, together, for Australia
    • 5.Environment matters
    • 69 Environment data Waste Volumeofwaste:generalandspecial Waste Unit 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 GeneralWaste (tonnes) 16,265 15,182 11,569 9,002 9,874 8,380 Asbestos (tonnes^) 490 64 195 61 52 84 Medical (tonnes^) 60 7 9 8 7 0 MiscellaneousHazardousWaste (tonnes^) 225 99 29 15 18 25 EquipmentcontainingPCBs&PCNs* (tonnes) 1,484 0 0 0 0 0 WeightofrecoveredPCBs&PCNswaste (tonnes) 27 36 7 1 2 0 Waterfrompits (tonnes) 23,945 26,568 33,910 19,202 7,064 6,089 Other# (tonnes) 2 153 381 508 507 Totalwaste (tonnes) 41,931 41,956 45,872 32,822 17,527 15,085 Measure 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Totalwastetolandfill/treatment(tonnes) 41,931 41,956 45,872 32,822 17,527 15,085 Totalwaste(tonnes)perstaffmember 1.13 1.16 1.16 0.87 0.49 0.44 Totalwasterecycled(tonnes) 11,134 31,307 21,169 29,635 33,266 32,981 Recyclingas%oftotalwaste(tonnes) 21% 43% 32% 47% 65% 69% *Thisfigurenowincorporated inthe scrap metal datainwastesreturnedtoprocess ormarket. #Thisfigureincludeswastematerialsfrom payphones,rental phones,phonecards ande-waste. ^Datain2002-03reportedasm3. 5.Environment matters
    • 70 5.Environment matters Wastereturnedtoprocessormarket Greenhousegas emissions Waste Measure 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Commingled(egbottles,cans,milkcartons) (tonnes^) 1,535 100 182 314 338 250 Electricalcomponents(egcircuitboards,testequipment)* (tonnes^) 5,000 – – – – – Mixedmetal (tonnes^) 60 10,577** 1,284 576 730 543 Mixedpaper (tonnes) 1,824 2,584 2,803 4,369 3,811 2,927 Furnituresold (tonnes^) 0 149 140 6 0 8 Cardboard (tonnes) 1,021 2,527 2,631 3,533 4,737 3,147 Timber (tonnes) 133 192 257 192 315 201 Scrapcable (tonnes) 1,874 11,921 166 317 222 131 Rentaltelephones (tonnes) 152 211 122 228 133 146 Payphones (tonnes) – – 27 0 735 46 Batteries (tonnes^) 251 795 2,121 4,655 5,226 5,440 Waterrecycled (tonnes) – 2,189 11,436 15,440 16,887 20,032 Other*** (tonnes) – 62 100 4 131 111 Totalwasterecycled (tonnes) 11,134 31,307 21,169 29,635 33,266 32,981 Measure 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Greenhousegasemissions(tonnesCO2e) 1,512,564 1,603,042 1,338,221 1,360,358 1,390,306 1,500,803 Greenhousegasemissions(tonnesCO2e)per$M revenue 73.8 77.3 60.4 59.8 58.7 60.4† *From2003-04thisfigureisincluded in‘mixed metal’and not reportedseparately. **Scrapmetalcollectedfrom exchangesnot previously recorded,hasbeenincludedinthis year. ***Includescombinedglassand metal from constructionactivities. ^Datain2002-03reportedasm3. †Includesunmeteredsites.
    • 71 Greenhousegas emissions(tonnes)CO2e EnergyType 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2007-08 2007-08 2007-08 Scope1 Scope2 Scope3 Buildingsandnetwork Electricity -Commercialsites 212,552 209,095 189,152 178,691 170,574 171,621 – 152,754 18,867 -Network 1,149,545 1,236,961 980,806 1,008,177 1,063,900 1,140,419 – 1,004,419 136,000 -Other(unmeteredsites)** – – – – – 66,271 – 58,367 7,903 -Sub-total 1,362,097 1,446,056 1,169,957 1,186,868 1,234,473 1,378,311 – 1,215,540 162,770 Naturalgas Notavailable Notavailable 416 805 557 1,265 982 – 283 -Diesel(StandbyPowerGeneration) 3,577 2,586 2,384 2,929 2,250 1,581 1,469 – 112 Fleet -Petrol 111,432 100,279 106,767 110,692 80,805 52,369 48,530 – 3,839 -Diesel 34,629 31,780 36,649 39,227 39,549 39,630 36,833 – 2,797 -LPG 829 4,057 8,164 11,735 13,909 13,737 12,626 – 1,112 -Sub-total 146,890 136,116 151,581 161,654 134,263 105,736 97,989 – 7,747 Waste* – 18,283 13,883 8,102 18,761 13,910 – – 13,910 Total 1,512,564 1,603,042 1,338,221 1,360,358 1,390,306 1,500,803 100,440 1,215,540 184,822 *Emissionsduetowasteincluded from 2003-04 onwards. **Emissionsduetounmetered sitesincluded from 2007-08 onwards. 5.Environment matters
    • 72 5.Environment matters *Datameasurementmethodology changed from 2003 to 2004 to improvedata accuracy. **TheenergygeneratedbyTelstra’ssolar powered network sitesisnotdirectly measured. ***Fleetfuelvehiclesareforall Telstravehiclesand mechanical aids(includes Telstra operationalvehicles,salary sacrificevehicles andvehicles leasedtosubsidiaries/othercompanies). ****Energyuseduetounmetered sitesincluded from 2007-08 onwards. Greenhousegas emissionssavings(tonnes)CO2e Energyuse(GJ) Measure 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Newsavingsfromcurrentyearinitiatives -Electricity 20,018 31,915 24,442 20,031 13,182 9,605 -Fleet 317 695 1,862 2,112 3,267 0 -Waste 10,757 14,711 15,755 20,122 22,377 15,727 Ongoingsavingsfromprioryearsinitiatives(electricityonly) 38,766 58,784 90,699 115,141 135,172 148,354 Total 69,858 106,105 132,758 157,406 173,998 173,686 EnergyType 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Buildingsandnetwork Electricity -Commercialsites 637,352 644,566 579,717 544,847 541,239 547,705 -Network 3,733,405 3,986,286 3,212,663 3,261,562 3,512,551 3,794,539 Other(unmeteredsites)**** – – – – – 220,503 -Sub-total* 4,370,757 4,630,852 3,792,380 3,806,409 4,053,789 4,562,748 Naturalgas N/A N/A 6,541 11,296 7,821 19,139 Diesel((StandbyPowerGeneration)) 49,305 36,977 34,085 37,447 29,008 21,052 Solar ** ** ** ** ** ** Fleet*** -Petrol 1,524,389 1,371,816 1,460,578 1,362,869 1,047,244 724,323 -Diesel 495,071 454,342 523,941 501,491 509,913 527,697 -LPG 13,315 65,173 131,141 171,916 200,826 209,729 -Sub-total 2,032,775 1,891,331 2,115,661 2,036,276 1,757,983 1,461,749 Total 6,452,837 6,559,160 5,948,666 5,891,428 5,848,601 6,064,687
    • 73 Fueluse(litres) Materials Miscellaneous Fueltype 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Fleet -Petrol 44,572,768 40,111,581 42,706,972 39,849,970 30,621,170 21,165,825 -Diesel 12,825,668 11,770,514 13,573,613 12,992,000 13,210,176 13,670,894 -LPG 518,199 2,535,929 5,102,779 6,689,319 7,665,126 8,004,932 -E10 – – – – – 13,217 -Sub-total 57,916,635 54,418,024 61,383,364 59,531,289 51,496,472 42,854,868 Buildingsandnetwork Diesel(StandbyPowerGeneration) 1,277,340 957,955 883,020 970,135 751,498 545,384 Total 59,193,975 55,375,979 62,266,384 60,501,424 52,247,970 43,400,252 Measure 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Volumesofofficepaper(reams) 383,000 353,112 358,243 278,678 256,774 220,856 Volumeofpaper(reams)perstaffmember 10.3 9.8 9.0 7.4 7.2 6.5 2005-06 2006-07 2007-08 NetworkConstructionEnvironmentaltrainingcoursesdelivered 1,600 1,400 841 Solarsites 10,450 10,693 10,265 TelstraEnvironmentalIncidentsNationally 34 22 12 CodeNotificationstoDepartmentofEnvironment,Water,HeritageandtheArts 50 25 46 EnvironmentalAssessmentsforworkinAreasofEnvironmentalSignificance 51 61 92 EPBActreferrals(DepartmentofEnvironment,Water,HeritageandtheArts) 18 2 8 5.Environment matters
    • 74 Global Reporting Initiative Index Aspect GRIindicator Description Reportsection Page Reporting compliance Economicindicators Economicperformance EC1 Directeconomicvaluegeneratedanddistributed Society matters 22 n EC2 Financialimplicationsforclimatechange Society matters 16 n EC3 Pensionplanobligations Employeesmatter 37 n Marketpresence EC5 Entrylevelwage Employeesmatter 37 n EC6 Useoflocallybasedsuppliers Society matters 26 n EC7 Proceduresforlocalhiring Society matters 26 n Indirecteconomicimpacts EC8 Investmentsthatprovidepublicbenefit Society matters 22–25 n EC9 Indirecteconomicimpacts Society matters 22–25 n Environmentalindicators Materials EN1 Weightofmaterialsused Environmentmatters 69 n Energy EN3 Directenergyconsumption(on-site) Environmentmatters 61 n EN4 Energyconsumption(generatedoff-siteandtransportfuel) Environmentmatters 61 n EN5 Energysavings Environmentmatters 65 n EN6 Energy-efficientproductsandservices Society matters 18 n EN7 Indirectenergyconsumptioninitiatives Environmentmatters 18 n Water EN8 Totalwaterwithdrawalbysource Environmentmatters 62 n EN10 Waterrecycledandreused Environmentmatters 62 n Biodiversity EN11 Landmanagedinproximityofprotectedareas Environmentmatters 65 n EN12 Impactsofactivitiesonprotectedareas Environmentmatters 65 n EN13 Habitatsprotectedorrestored Environmentmatters 65 n EN14 Impactsonbiodiversity Environmentmatters 65 n EN15 Threatenedspecies/habitatsaffectedbyoperations Environmentmatters 65 n Emissions,effluentsandwaste EN16 Greenhousegasemissions Environmentmatters 64 n EN17 Indirectgreenhousegasemissions Environmentmatters 64 n EN18 Initiativestoreducegreenhousegasemissions Environmentmatters 64 n EN21 Totalwaterdischargebyqualityanddestination Environmentmatters 69 n EN22 Totalweightofwastebytypeanddisposalmethod Environmentmatters 69 n EN23 Totalnumberandvolumeofsignificantspills Environmentmatters 73 n GlobalReporting InitiativeIndex Fully addressed – n Partially addressed – n
    • 75 Aspect GRIindicator Description Reportsection Page Reporting compliance EN24 Hazardouswaste Environmentmatters 69 n EN25 Impactofwaterdischargesandrunoffhabitats Environmentmatters 62 n Productsandservices EN26 Environmentalimpactsofproductsandservices Environmentmatters 64 n EN27 Productsreclaimedattheendoftheirlife Environmentmatters 64 n Compliance EN28 Finesandnon-compliance Environmentmatters 67 n Transport EN29 Environmentalimpactoflogistics Environmentmatters 61 n Humanrightsindicators Investmentandprocurement practices HR1 Screeninginvestmentsforhumanrightsissues Society matters 26 n HR2 Screeningsuppliersforhumanrightsissues Society matters 26 n Non-discrimination HR4 Incidentsofdiscrimination Employeesmatter 39 n Freedomofassociation HR5 Freedomofassociationandcollectivebargaining Employeesmatter 37 n Childlabour HR6 Childlabour Society matters 26 n ForcedandCompulsoryLabour HR7 Forcedorcompulsorylabour Society matters 26 n Labourindicators Employment LA2 Employeeturnover Employeesmatter 37 n LA3 Minimumbenefitsprovided Employeesmatter 37 n Labourmanagementrelations LA4 Employeescoveredbycollectivebargainingagreements. Employeesmatter 37 n Occupationalhealthandsafety LA6 Workforcerepresentationonoccupationalhealthandsafetycommittees Employeesmatter 42 n LA7 Ratesofinjuryandlosttime Employeesmatter 45 n LA8 Programsrelatedtoseriousdiseases Employeesmatter 46 n Trainingandeducation LA10 Averagehoursoftrainingperyearperemployeebyemployeecategory Employeesmatter 38 n LA11 Workforcetraining Employeesmatter 38 n LA12 Performancereviewandcareerdevelopment Employeesmatter 38 n Diversityandequalopportunity LA13 Gender,agegroup,andindicatorsofdiversityforgovernancebodiesandemployees Employeesmatter 39 n Productresponsibilityindicators Customerhealthandsafety PR1 Managementofhealthandsafetythroughoutproductlife Environmentmatters 64 n PR2 Productandservicehealthandsafetycompliance Customersmatter 51 n Customerprivacy PR8 Customerdataprotection Customersmatter 52 n Societyindicators Community S01 Impactsofoperationsoncommunities Communitiesmatter 28 n Publicpolicy S05 Publicpolicypositions,developmentandlobbying Society matters 15 n Fully addressed – n Partially addressed – n Global Reporting Initiative Index
    • 76 Aspect GRIindicator Description Reportsection Page Reporting compliance Internaloperations Investment I01 Capitalinvestmentintelecommunicationnetworkinfrastructurebyregion Society Matters 22 n Healthandsafety I03 Healthandsafetyoffieldpersonnelininstallation,operationandmaintenanceofmasts,base stations,layingcables,etc EmployeesMatter 42 n I04 Compliancewithstandardsonexposuretoradiofrequencyemissionsfromhandsets Society Matters 20 n I05 Compliancewithguidelinesonexposuretoradiofrequencyemissionsfrombase stations Society Matters 20 n Infrastructure I07 Sitingofmastsandtransmissionsites Society Matters 20 n I08 Numberandpercentageofstand-alonesites,sharedsites,andsitesonexistingstructures Society Matters 20 n Providingaccess Access totelecommunication productsandservices PA1 Accesstotelecommunicationsproductsandservicesinremoteandlowpopulation density areas CustomersMatter 54 n PA2 Accessanduseoftelecommunicationproductsandservicesbydiversegroups CustomersMatter 53 n PA3 Availabilityandreliabilityoftelecommunicationsproductsandservices CustomersMatter 49 n PA4 Availabilityoftelecommunicationsproductsandservicesinareaswherethe organisation operates Society Matters 23 n PA5 Telecommunicationproductsandservicesprovidedtoandusedbylow/noincome population groups CustomersMatter 53 n PA6 Provisionoftelecommunicationsproductsandservicesinemergenciesanddisasters CommunitiesMatter 29 n Accesstocontent PA7 Humanrightsissuesrelatingtoaccessanduseoftelecommunicationsproductsandservices Society Matters 19 n Customerrelations PA8 PubliclycommunicationonEMFrelatedissues Society Matters 20 n PA9 Totalamountinvestedinelectromagneticfieldresearch Society Matters 20 n PA11 Initiativestoinformcustomersaboutproductfeaturesandapplications CustomersMatter 50 n Technologyapplications Resourceefficiency TA1 Examplesofresourceefficiencyoftelecommunicationproductsandservicesdelivered Society Matters 23 n TA2 Examplesoftelecommunicationproducts,servicesandapplicationswithpotentialtoreplace physicalobjects Society Matters 23 n TA3 Transportand/orresourcechangesofcustomeruseofthetelecommunicationproducts and services Society Matters 18 n TA4 Indirectconsequencesofcustomeruseofproductsandservicesandlessonslearnedfor future development Society Matters 24 n Global Reporting Initiative Index Telecommunications specificindicators Fully addressed – n Partially addressed – n ™ Trade mark of Telstra Corporation Limited ABN 33 051 775 556 ® Registered trade mark of Telstra Corporation Limited
    • C140 NOV08