Telstras Published Carbon Disclosure Project 2009 Submission

CDP 2009 Information Request
Respondent: Telstra Corporation Limited

Introduction

Telstra is Australia's leading telecommunications and information services company, providing integrated telecommunications
services across fixed line, mobiles, broadband, information transactions, search, and pay TV. Telstra has one of the best known
brands in the country and provides 9.2 million Australian fixed line and 9.7 million mobile services, including 5.2 million 3G
services.

Telstra's activities and infrastructure span Australia. It manages over 14,000 owned or leased sites (network facilities, depots and
offices) as well as individual installations such as roadside equipment cabinets, cables and jointing pits and payphones.

Telstra also has a large vehicle fleet of over 12,000 vehicles which includes service, construction and staff (salary sacrifice)
vehicles.

Risk and Opportunities
1. Regulatory Risks: (CDP6 1(a)(i))
1.1 Is your company exposed to regulatory risks related to climate change?
We consider Telstra to be exposed to regulatory risks related to climate change, as specified below.

RISK IDENTIFICATION PROCESS

Telstra's Compliance and Corporate Ethics Framework includes Risk Management to identify and manage risks within the company
in a consistent and structured manner. Specialists within the Corporate Environment Group and Telstra Legal monitor new and
proposed environmental legislation and liaise with relevant areas of the business and external stakeholders.

Telstra monitors current and future legislation which will support a future emissions trading scheme and has made several
submissions in relation to this policy issue. This also ensures that Telstra is consulted on any new legislation relating to energy or
greenhouse gas emissions.

CURRENT OR ANTICIPATED RISKS

Telstra is subject to both Australian Federal and State/Territory energy efficiency and greenhouse legislation. Under the Federal
Energy Efficiency Opportunities Act 2006 large energy users (those who use more than 0.5 PJ per year) are required to carry out
energy audits covering 80% of energy usage in the first 5 year assessment cycle, and to identify and report publicly on energy
saving opportunities which have a pay back of up to 4 years. Implementation of these actions is at the discretion of the company.
Telstra endeavours to implement all targeted energy efficiency actions. Telstra has submitted its Assessment and Reporting
Schedule and issued its First Public Report which outlines the status of identified actions. These are available at
http://www.ret.gov.au/energy/efficiency/eeo/participating_corporations/corp_sz/Pages/default.aspx#telstra

The National Greenhouse & Energy Reporting Act 2007 which commenced on 1 July 2008 requires large energy consumers or
producers or greenhouse gas emitters to register and report publicly their energy use, production and greenhouse gas emissions.
Telstra will be reporting under this act in 2009.

State/Territory legislation varies. For example in New South Wales, Energy Action Plans must be developed for sites using more
than 10 GWh per year. Telstra is participating in a number of State energy efficiency schemes where it meets the legislated
thresholds.

New South Wales also has greenhouse gas abatement legislation which allows companies to generate greenhouse gas abatement
certificates which can be traded. Telstra participates voluntarily in this scheme by generating abatement certificates through its
energy management program. See Question 22.1 for further details.

ACTIONS TO MANAGE REGULATORY RISKS

Telstra is prepared for these regulatory requirements as it has a well established energy management program and greenhouse
gas emissions accounting system.

The Australian Federal Government has announced its intention to implement an emissions trading scheme through its proposed
Carbon Pollution Reduction Scheme. As the details of the scheme are still being developed Telstra cannot say with certainty to
what it extent it will be directly or indirectly affected, for example by an increase in its costs for energy, or goods and services
with high carbon intensity. Telstra will continue to monitor the proposal for the Carbon Pollution Reduction Scheme , participate
in the consultation process and plan for the risks and opportunities that such a scheme may create.

Further information

2. Physical Risks: (CDP6 1(a)(ii))
2.1 Is your company exposed to physical risks from climate change?
We consider Telstra to be exposed to physical risks in relation to climate change, as specified below..


Telstra has an extensive telecommunications network throughout Australia with infrastructure including over 14,000 owned or
leased sites, payphones, cable and equipment cabinets in public areas. Systems are in place to monitor and report the condition
and performance of the network. These systems provide data relating to causes of network outages and damage. This data is
used to monitor trends on the impacts on our infrastructure of extreme weather events or bushfires.

Network Fault Data

Telstra has a database to collect and monitor faults to its telecommunications network. Faults can be identified for a particular
cause such as lightning or storm damage, water damage, physical damage etc. These data are used to show historical trends in
network damage due to climatic impacts as well as to predict the impact of an increase in floods or lightning strikes. The
interpretation of these trend data is fed back to the operations so that maintenance costs are appropriately planned for.

Telstra also publishes data on Mass Service Disruptions at http://www.telstra.com.au/abouttelstra/commitments/msd/index.cfm
Under the Universal Service Obligation, Telstra is required to respond to customer faults within set timeframes. In situations
outside Telstra's control such as natural disasters or physical damage to infrastructure causing a mass service disruption, Telstra
applies for an exemption and publishes the exemption and cause. Telstra commenced collection of data on Mass Service
Disruptions in 2007, and a longer period of data collection will allow us to plot trends. It is evident, however, that cyclones and
bushfires are significant factors contributing to mass service disruptions along with accidental damage such as a major cable
being cut during excavation by another party.

CURRENT OR ANTICIPATED PHYSICAL RISKS

Telstra has identified a number of potential physical risks to the company as a result of climate change. Changes to climate may
affect Telstra as an owner of infrastructure throughout all areas of Australia including city and urban, rural and remote, desert,
tropical and alpine regions. Australia already experiences a variable climate and Telstra has extensive experience in managing the
impact of extreme events on its infrastructure. However, climate change may have the effect of increasing the frequency or
severity of such events.

Telstra's infrastructure includes facilities such as exchanges and other network sites, offices and depots as well as an
underground cable network, all of which is subject to damage or flooding during extreme weather events or to changes in
climate. For example -
- Increased flood and storm frequency and severity may give rise to higher costs due to potential for damage to infrastructure
requiring additional repair or replacement.
- Increased incidence of bushfires poses increased risk to Telstra infrastructure particularly that located in rural or remote
locations.
- Increased severity and frequency of droughts and may limit water availability to Telstra facilities. The extreme drying out of soils
may lead to damage to conduits and cables.
- Increased weather risks include increased cycling of drought and flooding which will repeatedly stretch/contract both overhead
and underground cabling.

ACTIONS TO MANAGE OR ADAPT TO PHYSICAL RISKS AND IMPACTS

Climate Change Impacts

Changes to climate may affect Telstra as an owner of infrastructure throughout all areas of Australia in city and urban areas, rural
and remote, desert, tropical and alpine regions. Infrastructure includes facilities such as exchanges and other network sites,
offices and depots as well as an underground cable network, all of which can be subject to damage or flooding during extreme
weather events or to changes in climate.

Access by staff to sites can be restricted during flooding, storms or bushfires. This has always been an issue in remote areas and
in seasonally affected areas such as those subject to bushfire, snow or seasonal heavy rains.

Many network facilities normally operate in harsh environments and without staff present. Staff visit many sites only for routine
maintenance or faults. The telecommunications network and all its facilities are monitored remotely at a Global Operations Centre
in Melbourne. The network has the capability to restore telecommunications traffic on an alternative path, where an alternative
path exists, should a fault develop either at a facility or on a transmission system. Where such restoration is not done
automatically, manual actions can be invoked via staff at the Global Operations Centre. Telstra's experience in operating under
these conditions will be an advantage in the event of an increase in adverse climatic conditions.

Whilst the drought currently being experienced in Australia has not yet impacted on the availability of water to Telstra sites,
Telstra has recognised the need to be more water efficient and is developing and implementing water efficiency plans for its
property portfolio. Water efficiency initiatives are now extended to a variety of sites both large and small. Telstra's experience in
managing energy efficiency projects has been a benefit as the same system is now being used to measure water use and account
for water savings across Telstra sites. During 2008-09 water saving actions saved an estimated 52 megalitres of water per year at
office buildings and network sites.

In some parts of Australia, e.g. SE Queensland and New South Wales, there is a regulatory requirement to develop water
efficiency plans for large water use sites. Failure to submit "Water Efficiency Plans" in SE Queensland can result in water being
disconnected from the site. Telstra is compliant with these requirements.

Disaster Management

Disaster plans are already in place along with a well developed governance structure that sets out clear accountabilities for
responding to emergency situations and to mobilise additional staff for repairs following floods, storms and bushfires. The effects
of climate change may mean that these plans are implemented more frequently. Telstra's "Triple Three Recovery Plan" has three
distinct phases aimed at restoring communication services after a disaster –
- immediate short term service within the first three days
- temporary network restoration within three weeks
- final infrastructure build within three months

In addition, Telstra has a range of portable network support equipment on trailers or in shipping containers. An example is the
"Cell on Wheels" which can be towed by a four wheel drive vehicle. The Cell on Wheels is designed for rapid recovery of mobile
network infrastructure when existing base stations are damaged, or during natural disasters, such as bushfires and floods. Telstra
also utilises portable generators and has agreements in place with local hire companies for priority access to generators.

A key part of this plan is the role of Telstra's Global Operations Centre which is the only fully integrated global operations centre
of its type operating in the world today. To support Telstra's myriad of services, a dedicated team work with some of the world's
most sophisticated management and operational systems, to monitor and maintain the network 24 hours a day, 365 days a year.

A Major Incident Control Centre has been created within the Global Operations Centre. This control centre is fully equipped with
state-of-the-art video conferencing facilities and collaborative information sharing tools. This includes the capability to share and
source the latest disaster information from emergency service organisations, before and during the bushfire and cyclone season.
This means that emergency services organisations are better able to protect vital telecommunications infrastructure, as well as
Telstra being able to provide reliable essential communications to the emergency services organisations during an emergency.

The Global Operations Centre monitors weather conditions throughout Australia. In the event of an approaching cyclone or
bushfire, checks are made to ensure sites in potentially affected areas are prepared with emergency equipment such as portable
power generators or network equipment and that staff are on standby for repairs when it is safe to return. The Global Operations
Centre also has the facility to relocate all its functionality to another location in the event of issues at the site itself.

Data provided by the Global Operations Centre tracks extreme conditions facing the network. These could include cyclones,
floods, fires or other extreme weather events. The attached document "CDP - Extreme Conditions (YTD April 09).ppt" shows the
number and type of conditions being monitored since 2005.

The Global Operations centre also monitors the number of changes in zones (i.e. risk level in a geographical zone) due to weather
or extreme conditions. Data for 2006 onwards indicates a significant increase in the number of zone changes due to cyclones,
floods and bushfires. Refer to attached document "Zone Changes (YTD 8 April 09).xls".

As well as maintaining and restoring the network during a disaster, Telstra's priority is to assist the emergency and essential
service organisations with their telecommunication requirements. Telstra also offers relief packages to affected customers. Further
details are available at
http://www.telstra.com.au/abouttelstra/csr/communities/disaster_relief.cfm

Network Repair

Telstra has well developed plans to make repairs following a disaster. As well as equipment and materials being available to make
repairs, there are also strict safety procedures to be followed before staff can enter and work in a disaster zone. Staff cannot
enter a disaster zone until it is declared safe by the emergency services coordinators. Telstra works closely with emergency
services personnel to maintain and protect telecommunications both during and after the disaster.

Sometimes Telstra staff develop an innovative solution for unique situations. The following are examples.

In February 2009 extensive flooding in the north west of Australia extensively damaged kilometres of fibre cable. A temporary
repair required 17 km of fibre cable (4 spools each 1 metre diameter and weighing 2.2 tonnes). For the first time Telstra enlisted
the help of the Royal Australian Air Force who provided a C130 Hercules aircraft which was the only aircraft which could carry the
payload and land on the short dirt airstrips in the region.

In 2009 another flood situation near Ingham in north Queensland required a temporary cable to be laid quickly to maintain the
coastal transmission link. Quick thinking by Telstra staff, a break in the weather and the cooperation of Queensland Rail allowed
Telstra to lay temporary cables along a damaged railway line. The railway line was used as an anchor to withstand further
flooding and the installation allowed railway repairs to continue. Despite the "break" in the weather, conditions were difficult with
rain showers, mud, insects and crocodiles in close proximity. Further rain flooded the railway line again but the cable held and
provided necessary communications.

An equipment cabinet servicing customers in an industrial area in New South Wales became flood prone due to land development
changes affecting the flood tables. Options to protect the cabinet were investigated and included the installation of a higher twin
cabinet. Transferring the customers to a new cabinet would have caused major disruptions to services in the area. Telstra
network designers came up with the innovative proposal to raise the cabinet whilst operational. A crane was used to lift the
cabinet whilst a concrete base and frame was built to support the cabinet above flood level. This innovative solution resulted in no
outages to customers as well as substantial cost savings.

Further information

3. Other Risks: (CDP6 1(a)(iii))
3.1 Is your company exposed to other risks as a result of climate change?
We consider Telstra to be exposed to other risks related to climate change.


Refer to Question 1.1

CURRRENT OR ANTICIPATED RISKS

Telstra has a large vehicle fleet and is dependent on transport to install, service and maintain its infrastructure. The fleet is
currently reliant on the use of fossil fuels. It also has over 14,000 owned or leased sites (network and commercial) using
electricity. This makes Telstra susceptible to increased costs associated with greenhouse gas emissions.

Increased flood and storm frequency is likely to lead to increased repair costs for damage arising from natural perils. Being largely
self insured for these types of events it is in Telstra's interest to anticipate and manage climate change effects.

Drought, flooding and snow reduction could make some infrastructure redundant in the long term due to shifts in population.

From a business perspective, the changing expectations of our major customers such as banks or large corporations means that
our response to climate change could impact on how we are perceived by our customers. Some customers are already
considering greenhouse gas emissions in their supply chain decisions.

Similarly, heightened interest and perceptions of concern about the impact of climate change place a public spotlight on how
Telstra responds to both the effects and manages public perceptions around this issue.

New regulations, including a poorly designed emissions trading scheme, could have the effect of dampening growth in the
Australian economy without commensurate benefits.

ACTIONS TO MANAGE RISKS AND IMPACTS

Telstra has estimated its carbon footprint for a major customer using Life Cycle methodology. Refer to Question SM 1.3 for further
details.

Further information

4. Regulatory Opportunities: (CDP6 1(b)(i))
4.1 Do regulatory requirements on climate change present opportunities for your company?

Regulatory requirements related to climate change present opportunities for Telstra.

Telstra is highly engaged with the development of climate change related legislation and reviews.

By starting early in 2000 to measure energy use and greenhouse gas emissions, and supporting voluntary greenhouse reduction
schemes such as the Australian Government's Greenhouse Challenge Plus Program, Telstra has taken the opportunity to
implement systems best suited to its business and to be prepared for any future regulatory requirements as well as being
recognised as a responsible corporation. The system implemented for energy and greenhouse management is also being
extended to account for and manage water use.

Being involved in programs like Greenhouse Challenge Plus also means that Telstra is aware of new regulatory developments and
is able to be actively involved in the consultation process for new or proposed regulation. This has resulted in regulation
specifically addressing issues of concern to Telstra such as aggregation of data for companies like Telstra with linear infrastructure
and a large number of small sites.

The Energy Efficiency Opportunities legislation has provided a focus to extend Telstra's energy management program beyond
infrastructure efficiency to include business unit processes and their impact on energy efficiency. Telstra's comprehensive
standard of reporting has been recognised by the government department administering the implementation of the legislation.
Telstra staff who prepared the report have been invited to address a workshop to assist other companies to develop and improve
their reports.

The Australian government has also indicated that it will review and potentially amalgamate the various State-based
programs for renewable energy, energy reporting and energy efficiency. This would be a benefit to Telstra to only respond to a
single set of legislation and have one point of reporting instead of the current multiple reporting.

Current and anticipated regulatory requirements, including the prospect of increasing energy costs, are also prompting our
customers to consider ways to reduce their carbon emissions. This creates an opportunity for Telstra as use of our
telecommunications products and services (e.g. teleconferencing) can provide practical ways for our customers to use energy
more efficiently, and save on carbon emissions.

Further information

5. Physical Opportunities: (CDP6 1(b)(ii))
5.1 Do physical changes resulting from climate change present opportunities for your company?

Physical changes present opportunities for Telstra.

Increased severity and frequency of climatic events means that reliable telecommunications will continue to be an important part
of managing and minimising the social impacts of such events. Telstra has a number of strategies in place to ensure reliability of
the network such as back up power supplies and mandatory restoration timeframes for contractors. This is a way of
demonstrating to customers the continuity and reliability of Telstra's services.

Telecommunications have a role to play in monitoring the physical impacts through the use of telemetry. As an example the
Australian Institute of Marine Science is using one of the world's first reef-based internet protocol networks to monitor coral
bleaching events on the Great Barrier Reef. Previously a dedicated microwave-based network would have cost $500,000 per
location. The new pre-packaged system costs less than $1,000 per unit and can be located anywhere there is Next G™ network
coverage.

Further information

6. Other Opportunities: (CDP6 1(b)(iii))
6.1 Does climate change present other opportunities for your company?

Climate change presents other opportunities for Telstra.

In a carbon-constrained world, it will become increasingly attractive to use telecommunications and digital technologies to help
conserve energy and other resources, and cut carbon emissions. The potential savings are on a scale many times higher than the
energy consumed in the ICT industry itself. As an illustration of this point, in October 2007 Telstra released a report by climate
change experts Climate Risk Pty Ltd which it had commissioned, "Towards a High-Bandwidth, Low-Carbon Future;
Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions". A copy of the report can be downloaded from
Telstra's website:
http://www.telstra.com.au/abouttelstra/csr/climate_change.cfm.

The report identifies seven opportunities using telecommunications networks and digital products that if implemented, could lead
to a reduction in Australia's emissions by almost 5% or around 27 million carbon tonnes by 2015. This scale of impact depends on
the existence of pervasive and highly integrated broadband networks, connecting intelligent sensing and control devices with
sophisticated applications.

These seven opportunities are -
1. Networked demand-side energy management to increase renewable energy use
2. Integrated personalised public transport to your door with a phone call, or ordered online
3. "In-person" high-definition video conferencing in lieu of business travel
4. Presence- based power to turn appliances on or off using wireless presence sensors
5. Real-time freight management with vehicle monitoring via wireless broadband to fill empty vehicles
6. Remote power management for appliances not in use or on "standby", via broadband enabled sensors
7. Decentralised business district: teleworking

To provide further data to support this report Telstra has completed a Life Cycle Assessment for Teleworking and Online
Billing. These reports are being made available to enterprise customers and can be found at
http://www.nowwearetalking.com.au/carbon/research

To help identify both technical and cultural barriers to teleworking and emissions savings, Telstra has introduced "Product
Experience for a Green Working Day" whereby on certain designated days selected staff who have remote access to the network
and management approval are invited to work away from the office. During the day staff can access an online demonstration of
online collaboration tools such as Webex which can reduce their need for travel. As well as providing training on online
collaboration tools, staff can become more comfortable with teleworking. At the end of the day staff complete a short
questionnaire relating to any problems or advantages they experienced and their perceptions of productivity.

To obtain further data on teleworking, a survey of over 8,000 Telstra staff registered as RNA users was completed. A report has
been prepared which is being used to inform management on attitudes, productivity, emissions savings and technical problems
from teleworking. The data obtained is also used to validate data used in the Teleworking Life Cycle Assessment Project. Refer to
Question 14 for further details of this project.

Telstra has further explored the impact of ICT technologies such as video conferencing, teleworking, web contact centres and
fleet and field force management solutions on sustainability. Telstra can help its customers quantify the strong commercial,
environmental and societal benefits potential which can potentially be realised using ICT as a driver of sustainability strategies
through sophisticated ROI tools. This is further explored in a joint Telstra – WWF white paper “Using ICT to drive your
sustainability strategy” available at http://www.telstraenterprise.com/researchinsights/Pages/Sustainability.aspx

Further information

Greenhouse Gas (GHG) Emissions Accounting, Emissions Intensity, Energy and Trading
7. Reporting Year (CDP6 Q2(a)(ii))
Information about how to respond to this section may be found in “The Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard (Revised Edition)” developed by the World Resources Institute and the World Business Council for Sustainable
Development (“the GHG Protocol”), see http://www.ghgprotocol.org/.
ISO 140641 is compatible with the GHG Protocol as are a number of regional/national programme protocols. For more information
see http://www.ghgprotocol.org/ and use the guidance button above.
Please provide CDP with responses to questions 7, 8, 9, 10.1, 10.2, 11.1 and 11.2 for the three years prior to the current
reporting year if you have not done so before or if this is the first time you have answered a CDP information request. Please
work backwards from the current reporting year, so that you enter data for your oldest reporting period last.
Questions 10.1, 10.2, 11.1, and 11.2 are on subsequent webpages and the dates that you give in answer to question 7 will be
carried forwards to automatically populate those webpages.

7.1. Please state the start date and end date of the year for which you are reporting GHG emissions.

Start date: 01 July 2007
End date: 30 June 2008
Financial accounting year: 01 July 2007

8. Reporting Boundary: (CDP6 Q2(a)(i))
8.1. Please indicate the category that describes the company, entities, or group for which Scope 1 and Scope 2 GHG emissions
are reported.

Companies over which financial control is exercised – per consolidated audited Financial Statements.

8.2. Please state whether any parts of your business or sources of GHG emissions are excluded from your reporting boundary.

Telstra reports its emissions for facilities and activities within Australia. Emissions from Telstra entities operating outside Australia
are excluded.

9. Methodology: (CDP6 Q2(a)(iii))
9.1. Please describe the process used by your company to calculate Scope 1 and Scope 2 GHG emissions including the name of
the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 GHG emissions.
Please provide your answer in the text box. In addition to this description, if relevant, select a methodology from the list of
published methodologies. This will aid automated analysis of the data.

The methodology by which emissions are calculated is in accordance with those set out by the Australian Government
Department of Climate Change which aims to provide information in a format consistent with key international standards. The
relevant methodologies and factors used include –
- National Greenhouse Accounts (NGA) Factors at http://www.climatechange.gov.au/workbook/index.html
- National Greenhouse and Energy Reporting (Measurement) Technical Guidelines at
http://www.climatechange.gov.au/reporting/guidelines/index.html

Data is collected for the energy use of Telstra properties and vehicle fleet and is converted to greenhouse gas emissions using the
above methodologies.

Select methodologies:

See 9.1 above

Please also provide:
9.2 Details of any assumptions made.
9.3 The names of and links to any calculation tools used.

National Greenhouse Accounts (NGA) Factors at
http://www.climatechange.gov.au/workbook/index.html

National Greenhouse and Energy Reporting (Measurement) Technical Guidelines at
http://www.climatechange.gov.au/reporting/guidelines/index.html

Select calculation tools:

See 9.3 above

9.4 The global warming potentials you have applied and their origin.

National Greenhouse Accounts (NGA) Factors Appendix 1

Gas Global Warming Potential

Carbon dioxide 1
Methane 21

9.5 The emission factors you have applied and their origin.

National Greenhouse Accounts (NGA) Factors

See attached document “Telstra Conversion Factors 07-08.xls” (Extract from calculation spreadsheets)

Further information
http://cdp.cdproject.net/attachedfiles/Responses/53740/6854/Telstra Conversion Factors 0708.Xls

10. Scope 1 Direct GHG Emissions: (CDP6 Q2(b)(i))
Instructions for question 10 and question 11 (following page)
When providing answers to questions 10 and 11, please do not deduct offset credits, Renewable Energy Certificates etc, or net off
any estimated avoided emissions from the export of renewable energy, carbon sequestration (including enhanced oil recovery) or
from the use of goods and services. Opportunities to provide details of activities that reduce or avoid emissions are provided
elsewhere in the information request.

Carbon dioxide emissions from biologically sequestered carbon e.g. carbon dioxide from burning biomass/biofuels should be
reported separately from emissions Scopes 1, 2 and 3. If relevant, please report these emissions in question 15. However, please
do include any nitrous oxide or methane emissions from biomass/biofuel combustion in your emissions under the three scopes.

Please answer the following questions using Table 1.

Please provide:
10.1. Total gross global Scope 1 GHG emissions in metric tonnes of CO2e

Please break down your total gross global Scope 1 emissions by:
10.2. Country or region

Please provide CDP with responses to questions 10.1 and 10.2 for the three years prior to the current reporting year if you have
not done so before or if this is the first time you have answered a CDP information request. Please work backwards from the
current reporting year, so that you enter data for your oldest reporting period last.
Table 1 (below) and table 5 (Q11.1 and 11.2) will be automatically populated with the dates that you give in answer to 7.1.

Electric utilities should report emissions by country/region using the table in question EU3.

Table 1 – Please use whole numbers only. Use the “Other” option in the drop down menu to enter the name of a region.

Reporting year Q7.1 Start date 01/07/2007
Reporting year Q7.1 End date 30/06/2008
10.1 Total gross global Scope 1 GHG
emissions in metric tonnes CO2-e 100440
10.2 Gross Scope 1 emissions in metric tonnes CO2-e by country or region

Your answer to question 10.1 will be automatically carried forward to tables 2 and 3 below if you add a country or region in
answer to 10.2 or press “Save” at the end of the page.

Please tick the box if your total gross global Scope 1 figure (Q10.1) includes emissions that you have transferred outside your
reporting boundary (as given in answer to
8.1). Please report these transfers under 13.5.

Where it will facilitate a better understanding of your business, please also break down your total global Scope 1 emissions by:
10.3. Business division
and/or
10.4. Facility

10.3. Business division (only data for the current reporting year requested)
Table 2 Please
use whole numbers only.
Business Divisions - Enter names below Scope 1 Metric tonnes CO2-e
Total gross global Scope 1 GHG emissions in metric tonnes CO2-e - answer to question Q10.1 100440

10.4. Facility (only data for the current reporting year requested)
Table 3 Please use whole numbers only.
Facilities - Enter names below Scope 1 Metric tonnes CO2-e

10.5. Please break down your total global Scope 1 GHG emissions in metric tonnes of the gas and metric tonnes of CO2e
by GHG type. (Only data for the current reporting year requested.)

Scope 1 GHG Type Unit Quantity
CO2 Metric tonnes 100400
CH4 Metric tonnes
CH4 Metric tonnes CO2-e
N2O Metric tonnes
N2O Metric tonnes CO2-e
HFCs Metric tonnes
HFCs Metric tonnes CO2-e
PFCs Metric tonnes
PFCs Metric tonnes CO2-e
SF6 Metric tonnes
SF6 Metric tonnes CO2-e

10.6. If you have not provided any information about Scope 1 emissions in response to the questions above, please explain your
reasons and describe any plans you have for collecting Scope 1 GHG emissions information in future.

Further information
A breakdown of data by business unit was provided in the CDP Supply Chain Questionnaire in 2008.
For detailed information and data on Telstra's greenhouse gas emissions please refer to Telstra's Corporate Responsibility Report
2008 at
http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm

11. Scope 2 Indirect GHG Emissions: (CDP6 Q2(b)(i))
Important note about emission factors where zero or low carbon electricity is purchased:
The emissions factor you should use for calculating Scope 2 emissions depends upon whether the electricity you purchase is
counted in calculating the grid average emissions factor or not – see below. You can find this out from your supplier.

Electricity that IS counted in calculating the grid average emissions factor:
Where electricity is sourced from the grid and that electricity has been counted in calculating the grid average emissions factor,
Scope 2 emissions must be calculated using the grid average emissions factor, even if your company purchases electricity under a
zero or low carbon electricity tariff.

Electricity that is NOT counted in calculating the grid average emissions factor:
Where zero or low carbon electricity is sourced from the grid or otherwise transmitted to the company and that electricity is not
counted in calculating the grid average, the emissions factor specific to that method of generation can be used, provided that any
certificates quantifying GHG-related environmental benefits claimed for the electricity are not sold or passed on separately from
the electricity purchased.

Click here to see the instructions from the previous page on answering question 11.

Please answer the following questions using Table 5.
Please provide:

11.1. Total gross global Scope 2 GHG emissions in metric tonnes of CO2e.
Please break down your total gross global Scope 2 emissions by:

11.2. Country or region
Please provide CDP with responses to questions 11.1 and 11.2 for the three years prior to the current reporting year if you have
not done so before or if this is the first time you have answered a CDP information request. Please work backwards from the
current reporting year, so that you enter data for your oldest reporting period last.
Table 5 will be automatically populated with the dates that you gave in answer to 7.1.

Table 5 Please use whole numbers only. Use the “Other” option in the drop down menu to enter the name of a region.
Reporting year Q7.1 Start date 01/07/2007
Reporting year Q7.1 End date 30/06/2008
11.1 Total gross global Scope 2 GHG
emissions in metric tonnes CO2-e 1215540
11.2 Gross Scope 2 emissions in metric tonnes CO2-e by country or region

Your answer to 11.1 will be automatically carried forward to tables 6 and 7 below if you add a country or region in answer to 11.2
or press “Save” at the end of the page.

Where it will facilitate a better understanding of your business, please also break down your total global Scope 2 emissions by:

11.3. Business division
and/or
11.4. Facility

11.3. Business division (only data for the current reporting year requested)

Business Divisions - Enter names below Scope 2 Metric tonnes CO2-e

11.4. Facility (only data for the current reporting year requested)
Facilities - Enter names below Scope 2 Metric tonnes CO2-e

11.5. If you have not provided any information about Scope 2 emissions in response to the questions above, please explain your
reasons and describe any plans you have for collecting Scope 2 GHG emissions information in future.

Further information
A breakdown of emissions by Telstra business unit was provided in the CDP Supply Chain Questionnaire in 2008.
For detailed information and data on Telstra's greenhouse gas emissions please refer to Telstra's Corporate Responsibility Report
2008 at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm

12. Contractual Arrangements Supporting Particular Types of Electricity Generation: (CDP6
Q2(b)(i)Guidance)

12.1. If you consider that the grid average factor used to report Scope 2 emissions in question 11 does not reflect the contractual
arrangements you have with electricity suppliers, (for example, because you purchase electricity using a zero or low carbon
electricity tariff), you may calculate and report a contractual Scope 2 figure in response to this question, showing the origin of the
alternative emission factor and information about the tariff.

Telstra uses grid average factors.

12.2. If you retire any certificates (eg: Renewable Energy Certificates) associated with zero or low carbon electricity, please
provide details.

Further information

13. Scope 3 Other Indirect GHG Emissions: (CDP6 Q2(c))

For each of the following categories, please:
- Describe the main sources of emissions,
- Report emissions in metric tonnes of CO2e,
- state the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming
potentials (including sources) you have used for calculating emissions.

Notes about question 13

When providing answers to question 13, please do not deduct offset credits, Renewable Energy Certificates etc, or net off any
estimated avoided emissions from the export of renewable energy, carbon sequestration (including enhanced oil recovery) or
from the use of goods and services. Opportunities to provide details of activities that reduce or avoid emissions are provided
elsewhere in the information request.

Carbon dioxide emissions from biologically sequestered carbon e.g. carbon dioxide from burning biomass/biofuels should be
reported separately from emissions Scopes 1, 2 and 3. If relevant, please report these emissions in question 15. However, please
do include any nitrous oxide or methane emissions from biomass/biofuel combustion in your emissions under the three scopes.

13.1 Employee business travel
Describe the main sources of emissions
air and taxi travel

Emissions in metric tonnes CO2e.

During 2007-08 air travel by Telstra staff was 125,727 sectors (one way flights) or 124,054,956 km of flight.

State the methodology, assumptions, calculation tools, databases, emission factors (including sources) and global warming

13.2. External distribution/logistics
Distribution of equipment and materials to field staff.

Distribution of Telstra products to retail outlets or directly to customers.


Not measured yet.


13.3 Use/disposal of company’s products and services
For auto manufacture and auto component companies – please refer to the additional questions for these sectors before
completing question 13.3.

Telstra has completed a study for a key customer to measure the greenhouse gas emissions from the provision of services to the
customer. The study included the emissions from both the Telstra network equipment as well as the customer premises
equipment.

Telstra has developed Return on Investment Calculators to assist customers to quantify the environmental benefits of using ICT
technologies. Refer to Question 6 for further details.



Life Cycle Assessment methodology was used as well as emission factors from the SIMAPRO software and Australian National
Greenhouse Accounts (NGA) Factors.

13.4 Company supply chain

Purchase of energy (electricity and fuel)
Use of contractors for construction and maintenance of the network and facilities.


Telstra has commenced a project to estimate the emissions generated from this source.

Methodology is based on an estimated (or published) carbon intensity for different industry types.

13.5 Other
If you are reporting emissions that do not fall into the categories above, please categorise them into transferred emissions and
nontransferred emissions (please see guidance for an explanation of these terms).

Please report transfers in the first three input fields and nontransfers in the last three input fields.

Transfers
Scope 3 emissions for
- Waste disposed to landfill
- Electricity and other energy purchases

Transfers
Report emissions in metric tonnes of CO2e.

184822

Transfers
potentials (including sources) you have used
for calculating emissions.
Australian National Greenhouse Accounts (NGA) Factors
Nontransfers
Nontransfers
Report emissions in metric tonnes of CO2e.
Nontransfers

13.6 If you have not provided information about one or more of the categories of Scope 3 GHG emissions in response to the
questions above, please explain your reasons and describe any plans you have for collecting Scope 3 indirect emissions
information in future.

Further information

14. Emissions Avoided Through Use Of Goods And Services (New for CDP 2009)
14.1. If your goods and/or services enable GHG emissions to be avoided by a third party, please provide details including the
estimated avoided emissions, the anticipated timescale over which the emissions are avoided and the methodology, assumptions,
emission factors (including sources), and global warming potentials (including sources) used for your estimations.

Telstra has introduced products which can contribute to reductions in travel requirements and paper usage. Examples include
Conferlink which connects people wherever they are, through audio conferencing, data conferencing, video conferencing and
Conferlink online. The use of Conferlink conferences by Telstra staff and customers reduces the environmental impacts of travel,
in particular those resulting from the use of fuels.

Telstra offers a range of conferencing products to ensure that technology is accessible to all customers. These include –
- web contact centres
- online collaboration solutions such as Webex
- desktop video packages
- fitting out conference rooms or providing a managed service, and
- High Definition Video Conferencing e.g. Cisco's "TelePresence" product.

Telepresence is high-resolution "Online" video conferencing, representing the next generation of videoconferencing and is offered
to large corporations.

Online billing has been introduced. Customers are also offered a Single Bill and Summary Bill, reducing paper use and the energy
associated with the delivery of separate bills. During 2007 Telstra completed a Life Cycle Assessment project to measure the
environmental benefits of online billing compared with conventional paper billing. The study considered not just paper saving but
also the impacts of energy use for servers and transport of bills and material impacts of equipment used. The study concluded
that there is a benefit in terms of greenhouse gas emissions as well as other environmental impacts. The full report and a
summary can be found at http://www.nowwearetalking.com.au/carbon/research

Telstra commissioned a report by climate change experts Climate Risk Pty Ltd, "Towards a High-Bandwidth, Low-Carbon Future;
Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions" which Telstra released in October 2007. The
report identifies seven opportunities using telecommunications networks and digital products that could lead to a reduction in
Australia's emissions by almost 5% or around 27 million carbon tonnes per year by 2015. A copy of the report can be
downloaded from Telstra's website at http://www.telstra.com.au/abouttelstra/csr/climate_change.cfm
A further project is being undertaken to identify and implement projects which develop, demonstrate and measure the potential
of the opportunities identified in this report.

Following on from this report, also in 2007 Telstra completed a Life Cycle Assessment project to measure the environmental
benefits of teleworking. A scenario based on average data showed benefits in a range of environmental impacts including
greenhouse gas emissions. The study also indicated the result is influenced by the distance travelled and the energy efficiency of
both the company and home office. The Teleworking Study can be found at
http://www.nowwearetalking.com.au/carbon/research

Telstra has also used Life Cycle Assessment in assessing the impact in building new retail stores to identify the energy consuming
aspects of a store fit-out.


Further information

15. Carbon Dioxide Emissions from Biologically Sequestered Carbon: (New for CDP 2009)
An example would be carbon dioxide from burning biomass/biofuels.

15.1. Please provide the total global carbon dioxide emissions in metric tonnes CO2 from biologically sequestered carbon.

Emissions in metric tonnes CO2 Please use whole numbers only
0

Further information

16. Emissions Intensity: (CDP6 Q3(b))
16.1. Please supply a financial emissions intensity measurement for the reporting year for your combined Scope 1 and 2
emissions.

Please describe the measurement.

53 tonnes CO2e/AU$million revenue (for Scope 1 and 2 emissions only)

Figures for the calculation are obtained from Telstra's Corporate Responsibility Report and Annual Report for 2008.

16.1.1. Give the units. For example, the units could be metric tonnes of CO2e per million Yen of turnover, metric tonnes of CO2e
per US$ of profit, metric tonnes of CO2e per thousand Euros of turnover.

tonnes CO2e/AU$million revenue

16.1.2. The resulting figure.
Use a decimal point if necessary. Please use a “.” rather than a “,” i.e. please write 15.6 rather than 15,6

53

16.2. Please supply an activity related intensity measurement for the reporting year for your combined Scope 1 and 2 emissions.
Please describe the measurement.
Telstra does not use an activity related intensity measurement as it does not have a single unit of product or service output. For
example local calls are measured by number of calls whereas mobile and long distance (STD) calls are timed in minutes. Internet
services have measures based on downloads (bytes).

16.2.1. Give the units e.g. metric tonnes of CO2e per metric tonne of output or for service sector businesses per unit of service
provided.

16.2.2. The resulting figure.
Use a decimal point if necessary. Please use a “.” rather than a “,” i.e. please write 15.6 rather than 15,6

Further information

17. Emissions History: (CDP6 Q2(f))
17.1. Do emissions for the reporting year vary significantly compared to previous years?

Yes

The 2008 emissions include an estimate for unmetered sites not reported in previous years. An unmetered site is a piece of
equipment such as a roadside cabinet which does not have a meter but is charged a fixed amount based on the equipment
energy rating. The inclusion of this estimate provides a more accurate picture of Telstra's electricity consumption.

If the answer to 17.1 is Yes:
17.1.1. Estimate the percentage by which emissions vary compared with the previous reporting year.
This box will accept numerical answers containing a decimal point. Please use "." not "," i.e. write 10.6, not 10,6.

4.4 %

Have the emissions increased or decreased?

Increased

Further information

Whilst fuel consumption in Telstra's fleet was reduced, Telstra's emissions for 2007-08 increased due to several factors.
Firstly there was an increase in electricity consumption due to the concurrent running of the CDMA and Next G™ networks. The
closure of the CDMA network in 2008 will remove this demand from our energy requirements.
Secondly there was substantial growth in internet data centres in CBD sites, and some changes to site functionality.

18. External Verification/Assurance: (CDP6 Q2(d))
18.1. Has any of the information reported in response to questions 10 – 15 been externally verified/assured in whole or in part?

Yes, it has been externally verified/assured in whole or in part.(Please continue with questions 18.2 to 18.5)

It would aid automated analysis of responses if you could select responses from the tick boxes below. However, please use the
text box provided if the tick boxes menu options are not appropriate.

18.2. State the scope/boundary of emissions included within the verification/assurance exercise.

Please use the text box below to describe the scope/boundary of emissions included within the verification/assurance exercise if
the tick box menu options above are not applicable.

During 2007-08, Telstra's energy and greenhouse data was subject to the verification process of the Australian Government's
Greenhouse Challenge Plus Program. Telstra has been a signatory to this voluntary program since 2001. The rigorous process was

carried out by an independent auditor and provided valuable feedback to Telstra on the management and accuracy of its
extensive data from over 14,000 sites and 12,000 vehicles. Details of the verification process can be found at
http://www.climatechange.gov.au/greenhousefriendly/business/verification.html

18.3. State what level of assurance (eg: reasonable or limited) has been given.

18.4. Provide a copy of the verification/assurance statement.
Please attach a copy/copies.

18.5. Specify the standard against which the information has been verified/assured.

Australian Greenhouse Office Greenhouse Challenge Plus reporting requirements

18.6. If none of the information provided in response to questions 10-15 has been verified in whole or in part, please state
whether you have plans for GHG emissions accounting information to be externally verified/assured in future.

Further information

19. Data Accuracy: (CDP6 Q2(e) – New wording for CDP 2009)
19.1. What are the main sources of uncertainty in your data gathering, handling and calculations e.g.: data gaps, assumptions,
extrapolation, metering/measurement inaccuracies etc?
If you do not gather emissions data, please select emissions data is NOT gathered and proceed to question 20.

Emission data is gathered.

The electricity consumption data for unmetered sites is based on the total cost of electricity for these sites and an average energy
cost per kWh. The electricity cost is based on the rated energy use of the equipment and is probably an overestimate.
Refrigerant leakage is not included and is not thought to be material. This will be further assessed during 2009-10.

19.2. How do these uncertainties affect the accuracy of the reported data in percentage terms or an estimated standard
deviation?

Refer to 19.1

19.3. Does your company report GHG emissions under any mandatory or voluntary scheme (other than CDP) that requires an
accuracy assessment?

Yes (Please answer the following questions 19.3.1, 19.3.2).

19.3.1 Please provide the name of the scheme.

Other

Telstra has been a voluntary signatory to the Australian Government's Greenhouse Challenge Plus Program since 2001 and has
publicly reported its emissions through this program up to 2007.

The National Greenhouse and Energy Reporting Act (2007) will require Telstra to report energy consumption and production and
greenhouse gas emissions from 2008-09.

19.3.2. Please provide the accuracy assessment for GHG emissions reported under that scheme for the last report delivered.

Further information

20. Energy and Fuel Requirements and Costs: (New for CDP 2009)
Please provide the following information for the reporting year:

Cost of purchased energy
20.1. The total cost of electricity, heat, steam and cooling purchased by your company.
126000000

Select currency
Australian dollar

20.1.1. Please break down the costs by individual energy type.
Table 8 The “Cost” column will not accept text. Please use whole numbers only.
Energy type Cost Currency
Electricity 126000000 Australian dollar
Heat Australian dollar
Steam Australian dollar
Cooling Australian dollar

Cost of purchased fuel

20.2. The total cost of fuel purchased by your company for mobile and stationary combustion.
61000000

Select currency
Australian dollar

20.2.1. Please breakdown the costs by individual fuel type.
Table 9 The cost column will not accept text. Please use whole numbers only.
Mobile combustion fuels Cost Currency
Gasoline / petrol Australian dollar
Diesel Australian dollar
LPG Australian dollar
Stationary combustion fuels Cost Currency
Other petroleum products Australian dollar
Natural gas Australian dollar

Energy and fuel inputs
The following questions are designed to establish your company’s requirements for energy and fuel (inputs). Please note that
MWh is our preferred unit for answers as this helps with comparability and analysis. Although it is usually associated with
electricity, it can equally be used to represent the energy content of fuels (see CDP 2009 Reporting Guidance for further
information on conversions to MWh).

Purchased energy input

20.3 Your company’s total consumption of purchased energy in MWh.

Please use whole numbers only.
1267430 MWh

Purchased and self produced fuel input
20.4. Your company’s total consumption in MWh of fuels for stationary combustion only. This includes purchased fuels, as well as
biomass and self-produced fuels where relevant.


5316 MWh

In answering this question and the one below, you will have used either Higher Heating Values (also known as Gross Calorific
Values) or Lower Heating Values (also known as Net Calorific Values).
Please state which you have used in calculating your answers.

20.4.1. Please break down the total consumption of fuels reported in answer to question 20.4 by individual fuel type in MWh.
Table 10 Please use whole numbers only

Stationary combustion fuels MWh

Energy output
In this question we ask for information about the energy in MWh generated by your company from the fuel that it uses.
Comparing the energy contained in the fuel before combustion (question 20.4) with the energy available for use after combustion
will give an indication of the efficiency of your combustion processes, taking your industry sector into account.

20.5. What is the total amount of energy generated in MWh from the fuels reported in question 20.4?

20.6. What is the total amount in MWh of renewable energy, excluding biomass, that is self-generated by your company?

Energy exports
This question is for companies that export energy that is surplus to their requirements. For example, a company may use
electricity from a combined heat and power plant but export the heat to another organisation.
20.7. What percentage of the energy reported in response to question 20.5 is exported/sold by your company to the grid or to
third parties?


20.8. What percentage of the renewable energy reported in response to question 20.6 is exported/sold by your company to the
grid or to third parties?

Further information
Question 20.4
Energy purchased for stationery consumption includes diesel used for standby power generation at Telstra sites.

Question 20.6
Telstra is one of Australia's largest users of solar power with over 10,000 solar powered sites including exchanges, radio
terminals, small repeater stations and payphones.
Many of these sites are in remote locations enabling Telstra to provide telecommunication services to these remote locations.
In June 2008 a hydrogen fuel cell test facility was installed at Telstra's Melbourne office headquarters. The hydrogen fuel cell, and
a small set of solar panels are being trialled by Telstra Property, and their potential use in Telstra's network and buildings
assessed.

21. EU Emissions Trading Scheme: (CDP6 Q2(g)(i) – New wording for CDP 2009)
Electric utilities should report allowances and emissions using the table in question EU5.
21.1. Does your company operate or have ownership of facilities covered by the EU Emissions Trading Scheme (EU ETS)?
No (Please go to question 22.)

Please give details of:
21.2. The allowances allocated for free for each year of Phase II for facilities which you operate or own. (Even if you do not
wholly own facilities, please give the full number of allowances).
2008 2009 2010 2011 2012
Free allowances metric tonnes CO2

21.3. The total allowances purchased through national auctioning processes for the period 1 January 2008 to 31 December 2008
for facilities that you operate or own.
(Even if you do not wholly own facilities, please give the total allowances purchased through auctions by the facilities for this
period).
Total allowances purchased through auction
21.4. The total CO2 emissions for 1 January 2008 to 31 December 2008 for facilities which you operate or own. (Even if you do
not wholly own facilities, please give the total emissions for this period.)
Total emissions in metric tonnes

Further information

22. Emissions Trading: (CDP6 Q2(g)(ii) New
wording for CDP 2009)
Electric utilities should read EU6 before answering these questions.
22.1. Please provide details of any emissions trading schemes, other than the EU ETS, in which your company already participates
or is likely to participate within the next two years.

Telstra is participating (voluntarily) in the New South Wales Greenhouse Gas Reduction Scheme which aims to reduce greenhouse
gas emissions associated with the production and use of electricity, and to develop and encourage activities to offset the
production of greenhouse gas emissions. Telstra is creating abatement certificates by activities that result in reduced consumption
of electricity (Demand Side Abatement). The Greenhouse Gas Reduction Scheme was created in 2002 through amendments to
the Electricity Supply Act 1995 and the Electricity Supply (General) Regulation 2001.

Telstra also participates (voluntarily) in the Australian Government's Mandatory Renewable Energy Target (MRET) scheme under
the Renewable Energy (Electricity) Act 2000 where renewable energy certificates (RECS) are claimed. A REC represents a
megawatthour of renewable electricity generated by Telstra solar sites.

22.2. What is your overall strategy for complying with any schemes in which you are required or have elected to participate,
including the EU ETS?

Telstra will comply with all mandatory requirements and work with government and industry groups on voluntary schemes within
Australia.

Further information

22. Carbon credits
22.3. Have you purchased any project-based
carbon credits?

Yes. (Please answer the following questions)

Please indicate whether the credits are to meet one or more of the following commitments:

The greenhouse gas emissions from Telstra's salary sacrifice vehicles are offset by Greenfleet a not for profit organisation which
plants trees to offset vehicle emissions as well as reducing soil erosion and salinity and providing habitat for native species.

Please also:
22.4 Provide details including the type of unit, volume and vintage purchased and the standard/scheme against which the credits
have been verified, issued and retired (where applicable).

Details of the Greenfleeet program are available at http://www.greenfleet.com.au/
22.5. Have you been involved in the origination of project-based
carbon credits?

No. (Please go to question 22.7)

22.6. Please provide details including:
• Your role in the project(s),
• The locations and technologies involved,
• The standard/scheme under which the projects are being/have been developed,
• Whether emissions reductions have been validated or verified,
• The annual volumes of generated/projected carbon credits,
• Retirement method if used for own compliance or offsetting.

22.7. Are you involved in the trading of allowances under the EU ETS and/or project-based carbon credits as a separate business
activity, or in direct support of a business activity such as investment fund management or the provision of offsetting services?

No. (Please go to question 23)

22.8. Please provide details of the role performed.

Further information

Performance
23. Reduction plans & goals: (CDP6 Q3(a))
23.1. Does your company have a GHG emissions and/or energy reduction plan in place?

Yes. (Please go to question 23.3)

23.2. Please explain why.
It would aid automated analysis of responses if you could select a response from the options below as well as using the text box.
However, please just use the text box provided if the options are not appropriate.
If the menu options above are not appropriate, please answer the question using the text box below:

Goal setting
23.3. Do you have an emissions and/or energy reduction target(s)?

Yes. (Please answer the following questions)

23.4 What is the baseline year for the target(s)?

2000

23.5. What is the emissions and/or energy reduction target(s)?

Goals for reducing emissions associated with electricity consumption are focussed on reducing actual consumption as opposed to
offsetting. A program of works to implement projects to reduce energy and water consumption with associated reductions and
savings is identified at the start of financial year and presented as a business case. A similar program has now been introduced
for water efficiency projects.

Investment for energy and water efficiency projects is approved under Telstra's Guidelines for Investment Evaluation and meets
requirements for return on investment.

23.6. What are the sources or activities to which the target(s) applies?

Telstra has programs to reduce greenhouse gas emissions due to –
- Energy use for its properties
- Energy use for its vehicle fleet
- Waste disposal
- Water use

23.7. Over what period/timescale does the target(s) extend?

Each year an annual budget is approved for energy efficiency programs within Telstra's Property Management. This depends on
the energy efficiency opportunities identified and their expected return on investment.

Telstra currently invest in energy efficiency projects with a payback of 4 years or less. These projects meet the normal
requirements for capital allocation and investment. As the shorter payback projects are completed and as energy prices rise there
will be new projects which meet the investment criteria.

Further information

23. GHG emissions and energy reduction activities
23.8. What activities are you undertaking or planning to undertake to reduce your emissions/energy use?

Telstra has programs to reduce greenhouse gas emissions due to –
- Energy use for its properties
- Energy use for its vehicle fleet
- Waste disposal
- Water use

Telstra's Property Group has an Energy Management team that is responsible for measuring and managing the energy used
across the Telstra property portfolio of over 14,000 sites. As part of the Energy and Greenhouse Management Plan an Energy
management team identifies potential energy savings actions and the payback period for the action. An annual budget is allocated
to implement actions which will provide the greatest reduction in energy use and greenhouse gas emissions. Typical energy
saving actions include those to increase the efficiency of lighting, air conditioning and power systems.

Telstra's Fleet Management group monitors the fuel use of the fleet, and identify and introduce measures to reduce fuel use and
fleet greenhouse gas emissions. Measures include the introduction of alternative fuels such as LPG vehicles and diesel vans for
technicians, driver training in fuel efficient driving techniques, and offsetting the greenhouse emissions of the salary sacrifice
vehicles through the Greenfleet Program which restores native habitat. GPS in technician’s vehicles that link into Telstra's
job despatching system is one part of a suite of tools provided to technicians to improve route efficiency and productivity.

Telstra's National Waste Management System aims to reduce waste disposed to landfill and increase recycling to maximise
resource efficiency and minimise greenhouse gas emissions due to decomposition of waste.

Telstra has launched the world's first mobile soft-switch using Ericsson's Blade Cluster servers. With the new Mobile Switching
Centre Server Blade Cluster, network capacity can be increased by more than 500,000 subscribers by simply inserting a new
electronics board, also known as a "blade", in the server cabinet. The innovative design reduces equipment floor space by 85%,
cuts energy use by 75% and proportionately reduces greenhouse gas emissions.

Further information

23. Goal evaluation
23.9. What benchmarks or key performance indicators do you use to assess progress against the emissions/energy reduction
goals you have set?

Return on Investment
tonnes CO2/$million revenue

Further information

23. Goal achievement
23.10. What emissions reductions, energy savings and associated cost savings have been achieved to date as a result of the plan
and/or the activities described above?
Please state the methodology and data sources you have used for calculating these reductions and savings.

During 2007-08 savings in greenhouse gases were as follows –

Savings from energy efficiency projects during 2007-08 9,605 tonnes CO2e
Savings from energy efficiency in previous years 148,354 tonnes CO2e
Waste recycling 15,727 tonnes CO2e

Total 173,686 tonnes CO2e

In particular, cost savings for electricity during 2007-08 were over AUS$16 million due to energy saving initiatives implemented
since 2000. Further information is available in Telstra's Corporate Responsibility Report 2007-08 available at

23.11. What investment has been required to achieve the emissions reductions and energy savings targets or to carry out the
activities listed in response to question 23.8 and over what period was that investment made?

Table 13 - The “Investment number” column will not accept text. Please use whole numbers only.

Emission reduction target/energy saving target or activity Investment number Investment currency Timescale
Energy Management Program for Properties 20000000 Australian dollar 2000 to 2009

Further information

23. Goal planning & investment
Electric utilities should read the table in question EU3 for giving details of forecasted emissions.

23.12. What investment will be required to achieve the future targets set out in your reduction plan or to carry out the activities
listed in response to question 23.8 above and over what period do you expect payback of that investment?
Table 14 - The “Number” column will not accept text. Please use whole numbers only.
Plan or action Investment number Investment currency Payback

23.13. Please estimate your company’s future Scope 1 and Scope 2 emissions for the next five years for each of the main
territories or regions in which you operate or provide a qualitative explanation for expected changes that could impact future GHG
emissions.

If possible, please use table 15 below to structure your answer to the question or alternatively use the text box below.
Scope 1 forecasted emissions in Table 15 below are in the following units.
Scope 2 forecasted emissions in Table 15 below are in the following units.
Table 15 - The “Scope” columns will not accept text. Please use whole numbers only.
Type in the name of the territory or region for which you are giving data and then press “Add Territory/Region”. If giving a global
figure instead of separate figures for regions or territories, please write “global” in the box labelled “Enter name of territory or
region”.

Click here to see a sample table.

Future reporting years:
End date for year end DD/MM/YYYY
Emission forecasts Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2

23.14. Please estimate your company’s future energy use for the next five years for each of the main territories or regions in
which you operate or provide a qualitative explanation for expected changes that could impact future GHG emissions.
If possible, please use table 16 below to structure your answer to the question or alternatively use the text box below.
Table 16 - Please use whole numbers only.
Type in the name of the territory or region for which you are giving data and a description of the data you are giving e.g.
electricity consumption. Then press “Add Row”. If giving a global figure instead of separate figures for regions or territories,
please use the word “global”. This table will also accept different types of units e.g. units of volume or mass.

Click here to see a sample table.

Future reporting years:
End date for year end DD/MM/YYYY
Energy use estimates for territory/region Number Units Number Units Number Units Number Units Number Units
23.15. Please explain the methodology used for your estimations and any assumptions made.

Further information

24. Planning: (CDP6 Q3(c))
24.1. How do you factor the cost of future emissions into capital expenditures and what impact have those estimated costs had
on your investment decisions?

The Australian Government has stated its intention to introduce an emissions trading scheme in 2011. At this point in time there
are still many variables in the proposed Carbon Pollution Reduction Scheme to be determined, therefore factoring in costs is not
possible with any degree of accuracy. Internal Telstra working groups have been established to develop cost models in
preparation for an emissions trading scheme in 2011. Telstra is currently reviewing the most effective way of factoring future
emissions into capital expenditure planning processes.

Further information

Governance
25. Responsibility: (CDP6 Q4(a))
25.1. Does a Board Committee or other executive body have overall responsibility for climate change?

Yes. (Please answer question 25.3 and 25.4)

25.2 Please state how overall responsibility for climate change is managed and indicate the highest level within your company
with responsibility for climate change.

25.3. Which Board Committee or executive body has overall responsibility for climate change?
In keeping with the accepted standards of best practice corporate governance in Australia the Telstra Board has an executive
director the CEO. The other members of the Board are independent, non-executive directors with the exception of Telstra’s Chief
Financial Officer who is also a board member. The focus in Australian corporate law and governance practice is on the Board as a
whole in the oversight of the company and issues facing the company it does not support or encourage the identification of
specific responsibilities for individual directors beyond roles related to their membership of the Board (eg chairing board
committees) and individual existing legal responsibilities (eg duty of care).

The CEO is an executive member of the board and as such has overall responsibility for the management of the company and to
report regularly to the board on matters of importance to the company. The Group Managing Director Human Resources reports

to the CEO and has specific responsibility for the development and implementation of the company's environmental management
strategies. The Group Managing Director Telstra Network and Services is responsible for maintaining and operating the network
under all conditions and has control of Telstra's Global Operations Centre which monitors the network under all conditions
including disaster response plans.

The Board and Telstra's commitment to climate change related issues and specifically greenhouse gas emissions is clearly
evidenced in -
- the establishment, with Boards approval, of the company's greenhouse program
- the specific public reporting on this issue on telstra.com at http://www.telstra.com.au/abouttelstra/csr/environment.cfm
and in a number of external reports at http://www.telstra.com.au/abouttelstra/csr/reports.cfm

In addition, the Board approved the Telstra Business Principles (TBPs) in March 2005. The TBPs describe the way we work and
are a key component of our corporate governance framework. One TBP addresses environmental issues and refers to the
Environment Policy. The CEO approved Telstra's updated Environmental Policy in November 2006. The Environment Policy
specifically requires Telstra to -
"Be responsive to the environmental concerns of our customers and the communities in which we operate" and
"Investigate and implement, where appropriate, programs to improve the efficiency of our resource consumption".

25.4. What is the mechanism by which the Board or other executive body reviews the company’s progress and status regarding
climate change?
The Board Audit Committee (BAC), which includes at least 3 Board members, provides a conduit to the Board for external advice
on audit, risk management and compliance matters. The BAC can request reports or briefings from within Telstra on the
management of any issue, including progress and status regarding climate change.

Further information

26. Individual Performance: (CDP6 Q4(b))
26.1. Do you provide incentives for individual management of climate change issues including attainment of GHG targets?

Yes. (Please go to question 26.2)

26.2. Are those incentives linked to monetary rewards?

Capital funding provided for energy efficiency programs must meet Telstra's financial requirements regarding return on
investment.

26.3. Who is entitled to benefit from those incentives?

Further information

27. Communications: (CDP6 Q4(c))
27.1. Do you publish information about the risks and opportunities presented to your company by climate change, details of your
emissions and plans to reduce emissions?

Yes

If so, please indicate which of the following apply and provide details and/or a link to the documents or a copy of the relevant
excerpt:
27.2. The company’s Annual Report or other mainstream filings.

Yes

From the 2008 Director's Report page 62
Environmental Regulation and Performance
“Telstra's operations are subject to significant environmental regulation under Commonwealth, State and Territory law,
particularly with regard to:
- the impact of the rollout of telecommunications infrastructure;
- energy and water efficiency;
- packaging of products;
- site contamination and pollution; and
- waste management.
Telstra is subject to the Energy Efficiency Opportunities Act 2006. We registered on 31 March 2007, and submitted our
Assessment and Reporting Schedule on 24 December 2007 as required by the legislation.

Telstra notes that the National Greenhouse and Energy Reporting Act2007 (Cwlth) has come into force and Telstra will be a party
who is required to register under that Act.

Telstra is closely following the developments of the Federal Government's Carbon Pollution Reduction Scheme which is proposed
to come into operation in 2010.

Telstra has well established procedures to monitor and manage compliance with existing environmental regulations and new
regulations as they come into force.

The directors are not aware of any significant breaches of environmental regulation during the financial year.”

27.3. Voluntary communications (other than to CDP) such as Corporate Social Responsibility reporting.

Yes

Corporate Responsibility Report at http://www.telstra.com.au/abouttelstra/csr/index.cfm

National Packaging Covenant at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm

Dow Jones Sustainability Index at http://www.telstra.com.au/abouttelstra/csr/reporting_performance/reports.cfm

Further information

Telstra also publishes a report as required by the Energy Efficiency Opportunity Act 2006 available at

28. Public Policy: (CDP6 Q4(d))
28.1. Do you engage with policymakers on possible responses to climate change including taxation, regulation and carbon
trading?

Yes

Telstra is involved in the consultation process for new legislation e.g the proposed Carbon Pollution Reduction Scheme. Telstra's
formal submissions are publicly available at the relevant government public consultation sites.

As part of Telstra's engagement with the Department of Industry, Tourism and Resources who administer the Energy Efficiency
Opportunities Act, Telstra is active in the Community of Practice for Representative Assessments along with other companies with
a large property portfolio. Communities of Practice focus on industry-led cooperative knowledge and learning, and seek to
complement the Department's commitment to comprehensive consultations on program policy and development issues.

Telstra has active representation in Australian Mobile Telecommunication Association which has climate change in scope.

Telstra is involved in an industry environmental task group of the Australian Industry Group.

Telstra's Corporate Environment group regularly meets with EPAs and Commonwealth Departments and has an open door policy
to government policymakers.

Telstra has staff whose role is government liaison.

The Corporate Environment Group attends industry seminars where policymakers speak and attend.

A Corporate Environment Managers Group was established by Telstra's Corporate Environment Group in 2006 and enhances
Telstra's engagement with other influential Australian corporations.

Further information

Supplier Module
SM 1 Ability to Split Scope 1 and 2 Emissions by Business Category
The aim of these questions is to help your customers estimate the extent to which your Scope 1 and Scope 2 emissions are linked
with their purchases of services or goods from you.
Please note that we use the term “product” to cover both goods and services.
SM 1.1 Are you able to break down your total Scope 1 and Scope 2 emissions by the following categories:
• Business division
• Business unit
• Factory
• Product group
• Other
Please give details in each case.

Business division?

Business unit?

Yes

Details of individual business unit emissions were provided in the 2008 CDP Supply Chain Initiative Report submitted in
September 2008 based on the financial year 2007-08.

Due to the change in the Supply Chain reporting time this will be updated for the 2008-09 financial year and will be reported in
the 2010 CDP report.

Factory?

Product group?

Yes

Telstra has developed a model using Life Cycle Assessment methodology to estimate the greenhouse gas emissions due to the
energy use of its product and service types such as voice, mobiles and data. This allows an estimation of the emissions due to
products and services to be provided to a customer based on the number of each product or service offering.

Other

Unable to breakdown by category?

Further information

SM 1.2 Splitting Scope 1 and Scope 2 Emissions by Category
SM 1.2. Using your preferred method (question SM 1.1) for splitting emissions, please consider what are the five biggest emitting
categories (e.g. business units or product groups) for your company? For each of the five biggest emitting categories, plus any
other categories specified by your customer(s), please complete the table SM1.2.

Click here to see a sample of a completed table.

Please complete this table. Use the figure given in answer to question 11.1. as the basis for your Scope 2 emissions.
Category
e.g. business division, business unit,
factory, product group.
Total
emissions
(number)
Total emissions
Units of measure e.g. metric
tonnes CO2-e
Do these represent emissions from Scope 1
only, Scope 2 only, or both?
Output Units
Major emission
Sources
Group 1
Group 2
Group 3
Group 4
Group 5
Other
Total

Further information

SM 1.3 Methodology
SM 1.3. Please explain how you have identified the GHG sources listed in the previous question, including major limitations to this
process and assumptions made.

Describe your system for allocating emissions to the groups in the table.

Where published information has been used, please provide a reference(s).

Give the degree of confidence that you have in the figures expressed as a percentage, e.g. you estimate that they are accurate to
+/15%.

If the allocation of emissions to different categories has been externally verified, please give details.

To better understand the carbon impact of Telstra products and services, and to be able to respond to customer needs, Telstra
has calculated the energy use and greenhouse gas (carbon) emissions resulting from provision of its products and services to a
major customer. The study determined the impact for both Telstra and the customer, allowing both corporations to better
understand and manage the energy and emissions impacts of the telecommunications products and services provided to
the customer.

Life Cycle Assessment (LCA) methodology was followed. The study is restricted to operational energy consumption due to the
complexity of products and services used by the customer, and as such is a partial LCA. Embodied energy or other material
environmental impacts were not considered. Allocation rules were developed to apportion Telstra’s network energy use to specific
Telstra products and services.

Although a partial LCA was completed, ISO Guidelines were used as guidance for this study (AS/NZS ISO 14040:2006(E), AS/NZS
ISO 14044:2006). The recommended steps for scope and goal definition, life cycle mapping, life cycle inventory and life cycle
impact assessment were followed.

Both internal and published data were used for the study. Internal data included energy use for typical equipment used by Telstra
and that provided as customer premises equipment. Published data was also used from Telstra and the customer's Corporate
Responsibility and Annual Reports.


Further information

The results of the study were unexpected with a significant impact at the customer's sites. This has allowed the customer to focus
on energy use for equipment and update their procurement processes to ensure energy and carbon is considered as well as costs
and normal commercial decisions.

SM 1.4 Challenges and Developments
What are the challenges in allocating emissions to different business categories and what would help you to overcome these
challenges? Please describe whether and how you plan to develop your capabilities to allocate your emissions in the future.
1. Business unit allocation
Lack of electricity data for individual business unit use especially for buildings (or floors) shared by several business units. Instead
used total commercial electricity use and
apportioned by spend on accommodation. It is recognized that this is approximate given different accommodation costs per sq m
for different buildings and cities.

For vehicle use emissions a report generated for fuel type and use by organisation code. It was necessary to manually allocate
fuel use as a business unit report is not set up.

Taxi and air travel emissions were estimated based on cost (and total air km travelled). Next year it is intended to improve air and
taxi travel by requesting data at business unit level.

2. Product and Service allocation
Overlap of network for different products and services, hence allocation rules were developed to apportion network energy to
different products and services.

Further information

SM 2. Your engagement with your suppliers
Your customers want to engage with you to learn more about the emissions from their immediate suppliers. The purpose of this
section is to find out what you in turn are doing to engage with your own suppliers.

SM 2.1 Do you have a strategy for engaging with your suppliers on their GHG emissions and the impacts of climate change on
their business? If so, please provide details of this strategy. To give a sense of the scale of this engagement, please include the
number of suppliers with whom you are engaging and the proportion of your total spending that they represent.

If you do not have a strategy, please explain any plans you have to develop one in the future.

Yes

Construction and Maintenance Contractors

Contractor Information Days were held nationally for our major construction and maintenance contractors to provide information
to the contractors on carbon awareness and introduce Telstra's future strategies and new requirements for contractors to provide
information to Telstra in certain circumstances on their greenhouse gas emissions for work carried out on behalf of Telstra. The
Contractor Information Day also provided an opportunity for contractors to provide feedback to Telstra on perceived issues and
problems and share information.

Suppliers

Telstra has held a workshop for its suppliers on "Sustainability in the Supply Chain".

Benchmarking Research

Telstra's spend for goods and services is over $5 billion per year. Benchmarking Research has been conducted on major suppliers
to Telstra to determine their carbon intensity and comparing it to the services they provide and how much Telstra spends on

these services. This allows Telstra to map the known risks and determine the unknown risks such as high spend and high carbon
intensity and be better prepared for carbon cost pass through.

Further information

SM 2.2 Use of data
If you have data on your suppliers' GHG emissions and climate change strategies, please explain how you make use of that data
(for example: identifying major GHG sources to prioritise emissions reduction actions, identifying physical risks in the supply
chain, stimulating innovation, etc).

Telstra will be collecting data on some suppliers' greenhouse gas emissions for the 2008-09
financial year. It is intended to use this data to –
- meet the reporting requirements of Australia's National Greenhouse and Energy Reporting Act 2006
- identify carbon intensive suppliers whose costs may be affected in the future
- identify where savings in carbon and efficiency improvements can be made by both suppliers and Telstra

Further information

SM 3. Emissions over the lifecycle of goods and services
SM 3.1. Please list any major successes and/or planned activities to reduce GHG emissions in the lifecycle of groups of products or
individual products, including an estimate of the possible reductions for each initiative.

Telstra's Property Management and Fleet Management Groups have reduced the overall energy intensity of Telstra's operations
through its energy management program.
This has the effect of reducing the emissions attributable to all products.

SM 3.2 Do you offer customers information or steps they can take to reduce the GHG emissions associated with use of your
products, and in the case of goods with their disposal? Please give examples.

Yes

In 2007 Telstra released a commissioned report by climate change consultants Climate Risk Pty Ltd, "Towards a High-Bandwidth
Low-Carbon Future; Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions". A copy of the report can be
downloaded from Telstra's website at http://www.telstra.com.au/abouttelstra/csr/society/climate_change.cfm

The report identifies seven opportunities using telecommunications networks and digital products which if implemented, could
lead to a reduction in Australia's emissions by almost 5% by 2015. This depends on the existence of pervasive and highly
integrated broadband networks, connecting into sensing and control devices with sophisticated applications.

Since 2007 Telstra has completed two studies to measure the environmental benefits of teleworking compared with working in an
office and online billing compared with conventional paper billing. Both these studies use Life Cycle Assessment (LCA)
methodology based on the ISO 14040 standards and have been peer reviewed by an independent LCA expert. Both reports are
available at http://www.telstra.com.au/abouttelstra/csr/environment/initiatives.cfm

Telstra has calculated the carbon footprint for the Telstra product and service offering to a major customer. This information is
now being used to calculate the footprint of enterprise and government offerings for other customers.

In April 2009 Telstra and the WWF Australia launched a white paper that highlights how Information and Communication
Technology (ICT) can improve environmental sustainability for large organisations and deliver positive commercial outcomes. It
also introduces a set of tools to enable Australian enterprise and government organisations to estimate the environmental and
financial benefits of ICT investment.

Using the Return on Investment (RoI) tools developed by Telstra and Capgemini, organisations can estimate the commercial and
environmental savings from investing in four specific ICT solutions – video conferencing, flexiworking, web contact centres and
field force management. The tools estimate greenhouse gas emission reductions and employee productivity outcomes by
assessing the financial costs and savings to the company for each alternative. The white paper is available at
http://www.nowwearetalking.com.au/news/addressingsustainabilityandputtingmoneyinthebank220

Online billing is offered to all Telstra customers.

Disposal

Telstra supports the Mobile Muster program coordinated by the Australian Mobile Telecommunications Association (AMTA). Mobile
Muster collects disused mobile phones, batteries and accessories for recycling. Telstra Shops are drop off points for disused
mobile phones. Telstra rental handsets are returned to Telstra for recycling.

Further information

SM 3.3 and 3.4 Individual Request Questions

Some suppliers may have customers who request that they provide estimates of GHG emissions over a particular product’s
lifecycle. Others may have estimated this information for their own purposes and wish to publicise it. If you fall into either group,
please answer the following question and then complete the table SM 3.4.

SM 3.3 Please give details of the method that you have used to estimate lifecycle emissions. State if you have followed a
published procedure (e.g. ISO 14040 & 14044 or PAS 2050) or one that you have developed yourself.

Clearly define the good or service for which data is being given and the boundary of your assessment. Please make it clear which
GHGs and GHG sources are included in your assessment. If relevant GHGs and GHG sources are excluded, please describe them
and give reasons for omissions.

Give references to data sources used.

If you are giving life cycle assessment (LCA) information for more than one product, please use this text box to describe your
methodologies, each time making it clear to which product you are referring.

Yes refer to SM 1.3

SM 3.4. Emissions over the lifecycle of goods and services

An example of the lifecycle stages of a service might be in the case of a hotel stay check in, use of room, check out, cleaning.

Further information

Number of Changes in Risk Level in a Geographical Zone due to Extreme Conditions
per State per Year
800

700 Zone changes
due to Cyclone
Larry

600
Severe
storms and
500 Higher number floods
of zone changes SA
due to Severe
NT
Floods
400 WA
Black
Saturday TAS
bushfires VIC
300
QLD
NSW
200

100

0
2004 2005 2006 2007 2008 2009

Number of Events

0
1
2
3
4
5
6
7
8
9
10
11
12
Jan
Feb
Mar
Apr
May
Jun

2005
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun

2006
July
Aug
Sep
Oct

Cyclone
Nov
Dec

Fire
Jan
Feb

Other
Mar
Apr
May
Jun
2007

July
Aug
Severe Weather

Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
2008

July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Extreme Conditions Facing Telstra’s Network

Mar
2009

Apr

Telstras Published Carbon Disclosure Project 2009 Submission

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Telstras Published Carbon Disclosure Project 2009 Submission