Sustainabilty approach at Portugal Telecom, presentation by Isabel Martinho, CSR/Communication Department at Portugal Telecom, at the II Regional Debate EACD Lisbon, 4th december 2008, under the theme "Challenges of Integrated Communications"

1. Portugal Telecom
Sustainability approach at Portugal Telecom
“Challenges of Integrated Communications”
EACD, Regional Debates
Lisboa, 4th December 2008
Our mission
To provide telecommunications and
multimedia services of recognized
value to the customers, through a
continuous technological innovation,
qualified and motivated resources,
and with respect to the environment
and society
“Innovate, change, improve, is our tradition”

2. Who we are
• The leading telecommunications services provider in Portugal
• Committed to generate and distribute shareholder value and
remaining one of the most solid telecommunications operator.
• Activity covers all segments of the telecommunications sector:
fixed, mobile, data and corporate solutions (voice, internet, TV)
• Company with the most number of transactions in Euronext Lisbon
• Quoted on the New York Stock Exchange
• 30.000 employees all over the world
• 65 million customers
“Innovate, change, improve, is our tradition”
Our goals
• Position PT as a fully integrated provider of telecoms and multimedia.
• Retain leadership and a strong market share of best clients in
Portugal, South America and Africa
• Be in the top of the most efficient Telecommunications Operators in Europe
• Attract and retain the best human talent available
• Be sustainable by all means, specially regarding digital
inclusion as a way to build a knowledge and environment
friendly society.
“Innovate, change, improve, is our tradition”

3. Where we are
And, what we do

4. Principles, guidelines and indicators that we follow
Organizations and agreements
Reporting guidelines
Indicators and benchmarks
Internal conduct and procedures
PT Code of Ethics
Code of Ethics for Senior Financial Officers
Whistle blowing procedures
Management systems audit and certified according:
INOVAÇÃO

5. Our sustainability approach
Keep on creating long term value for all the
Purpose stakeholders
Improve the policies and procedures through
Strategy all company businesses regarding 3 objective
points: triple bottom line
Economical Environmental Social
Strategic guidelines
Sustainability is integrated into business company strategy and totally
aligned with sector specifications and needs
Pillars of Sustainability : Economical, Social, Environmental
Implementation of the sustainability strategy through PT companies in Portugal
Sustainability Management through the Sustainability Committee
Identification and alignment with international best practices
Assessment and supervision of strategy implementation
Improvement of Social Responsibility enabling the digital inclusion, innovation
environment friendly options

6. Operating areas
Economical level Environmental level Social level
• Corporate Governance • Eco - Efficiency • Employee Policies
• Risk Assessment • Environmental Reporting • Talent attraction and
retention
• Codes of Conduct • Environmental
management system • Volunteering
• Customer Relationship
Management • Climate Strategy – • Citizenship / Philanthropy
Energy efficiency and
• Brand Management enabling e – services and • Stakeholder Engagement
solutions
• Services Development • Supplier standards
• Impact of Telecom services
• Digital Inclusion
Identified Stakeholders
Financial
Community Customers
Regulatory
entities Suppliers
Media Employees
Community

7. Operating model
Community
Suppliers
Information
Customers Alignment Commitments Communication Regulatory
entities
Relationship
Financial
Media Community
Employees
Sustainable conduct
Conduct profile Action drivers
Stakeholder
Transparency Engagement
Communication Sustainability
Rigour
Channels Report
Ethics Portugal Telecom
Foundation

8. Expected outcome
Measurable Performance
Economical Environmental Social
indicators indicators indicators
=Value
Group
Sustainability Commitments
• Financial growth
with respect for • Building the
community and Knowledge and
• Improvement of Information Society
environment
Eco - efficiency
• Decision making • Social support
• Energy strategy
process, considering
the stakeholders’ • Talent attraction
feedback and retention
Economical Environmental Social

9. Environmental, Health & Safety procedures
Training programs for all employees
Awareness campaigns for all employees regarding environmental and
friendly procedures
Sustainable Procurement Model - supplier selection and contracting
includes environmental and human rights respect procedures
Energy audit to PT offices
Implementation of a long term energy strategy based on
green light, free cooling and renewable energies
Sponsorship of NGOs that gather the electric and electronic
waste as well as other accessories like toners and ink cartridges,
all over the country
Commercial packages with environmental procedure labels
Enable the market to adopt e-solutions
Millenium Development Goals
1.Eradicate extreme poverty and hunger
2.Achieve universal primary education
3.Promote gender equality and empower women
We are committed
4.Reduce child mortality
5.Improve maternal health
6.Combat HIV/AIDS, malária and other diseases
7.Ensure environmental sustainability
8.Develop a global partnership for development
In cooperation with the private sector,
make the new technology benefits available
– especially information and
communications technologies

10. EU Lisbon Strategy
Based on a strategy aiming the promotion of development and the
reinforcement of competitiveness in Portugal
We are committed
ST RATEGIC AXES
Knowledge
Technology
Innovation
Knowledge Society
PT is deeply involved in the development of the knowledge society,
through micro processor computers, mobile broadband programmes,
enabling the new information technologies and training programmes
on web uses and contents:
Broadband access and bandwidth increase (fixed and mobile)
Accessibility of citizens with special needs
Awareness programs related with the use of the information technologies
Awareness programs related with the adequate use of contents

11. Knowledge Society
PT’s action program
Global coverage in Portugal
Global
Diversity of
(fixed and mobile) Training
commercial
Broadband programs
offer
connectivity
School s Associ ati ons Chil dren
Peopl e with
Hospit al s speci al needs
NGO’s Peopl e El derl y
Diversity of commercial offer
Price simulator
Pre-paid
services Services
adequate to
each customer
Products and profile
services
adequate to Convergent
people with fixed/mobile
special needs offer
Diversity of
price plans
Special
conditions
for elderly and
retired people

12. Special products and services
Special needs Special offer
Mobile for blind people
Incoming call light signalling
Vision
Portable amplifier
Decibel
Speech
Reading of written texts
Text telephone
Cognition
Emergency
Active voice
Neural-motor dysfunction
Braille bill
118 Braille
Hearing
Line with fixed destination
Aladim Program
Special products and services

13. Awareness programs
Guarantee the adequate use of telecom services
Guarantee the adequate use of web and TV services and
contents
Main goals Encouragement of the use of search web tools and
the creation of friendly and adequate contents
Make known the multimedia and broadband capacities
Increase the knowledge level of the population and
consequently increase the digital inclusion
Awareness and special programs
Education Innovation Health care Safety

14. Internal Communication Tools
Internal Communication Brand

15. Educational initiatives
Hardware and connectivity for educational system and schools
Educational initiatives

16. Innovation initiatives
Minimize carbon footprint
Health and care initiatives
Telemedicine and health management programmes

17. Safety initiatives
Environmental safety and human security
Lifestyle initiatives

18. Media
Media

19. Media
PT assume que li dera a
revol ução
di git al nos Açores
Relevant issues
Creation of Sustainability Committee
Creation of Portugal Telecom Foundation
Subscription of ETNO environmental and sustainability principles
Subscription of United Nations Global Compact principles
Subscription of UNI CSR principles
Publishing the Sustainability Report (annually)
Integration as member of FTSE 4 GOOD Índex
Rewarded as Family Responsible Company
Rewarded as the best CFO of European Telecommunications sector and
the best Investor Relations Officer of Telecommunications sector
Rewarded , at national level, as Citizenship Company
Management informations systems certified according to international
standardization: Quality, Environment, Hygiene, Health & Safety -
ISO 9001, ISO 14001, OSHAS 18001

20. Portugal Telecom
We are grateful for your
attention and interest
Isabel Martinho
“Challenges of Integrated Communications”
EACD, Regional Debates
Lisboa, 4th December 2008