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BIC Management Report

In 2021, the Company adopted the status of Company of Collective Benefit and Interest (BIC), becoming the first telecommunications operator and one of the first large companies in Colombia to adopt this status. BIC companies have three main purposes:

They incorporate a social and environmental purpose that goes beyond the maximization of economic returns for shareholders.

They ensure fulfillment of the described purpose, so that the directors and managers of the Company can maximize the social and environmental interests.

They guarantee transparency in reporting their corporate impact in five dimensions: business model, corporate governance, labor practices, environmental practices and community practices.

Pursuant to Article 1 of Resolution 200-004394 of the Superintendence of Corporations, which establishes the basic standards for the preparation of management reports by BIC companies, the Company has prepared this Responsible Management Report in accordance with the GRI (Global Reporting Initiative) standards: Core option.

The following are the activities prioritized by the Company in the five dimensions:

1 Business Model
  • Acquire goods or contract services from local based companies, or companies owned by women and minorities, and give preference in awarding contracts to providers of goods and services that implement equitable and environmental standards.

The majority of the Company’s suppliers are local. In 2021, 82% of the total amount was awarded to companies incorporated in Colombia. Also, the purchasing system incorporates the sustainability performance assessment of suppliers performed by EcoVadis, which enables the buyer to easily view this information associated with suppliers who are invited to negotiate. (See additional details in chapter 8.3 – We reconnect by being responsible with suppliers).

In 2021 82% of the total amount was awarded to companies incorporated in Colombia.
2 Corporate Governance
  • Develop a manual for employees containing the company’s values and expectations.
  • Communicate the company’s financial statements to its employees.

The Company has a manual (ethics code) called the Responsible Business Principles, which communicates to employees the values and principles, such as the code of ethics and conduct, that guide the actions of individuals and the group. All those who work at the Company are responsible for acting with integrity, transparency and commitment to create relationships based on trust and security with all stakeholders. Commercial partners and suppliers must also abide by these standards, either by adopting them or having their own equivalent standards that ensure compliance. (See additional details in chapter 8.6 We reconnect by acting with integrity and leading by example).

Workers are one of the most important stakeholder groups for the Company, and it is therefore very important to keep them informed of the main results. For this reason, they have access to different communications channels such as Management Meetings, e-mails from the CEO, live Workplace events and the website with the financial statements. Similarly, this report, which is published annually, incorporates the economic, social, environmental and governance results of the Company to inform all stakeholders. During 2021, 5 management meetings were broadcast via Workplace, during which the Company’s results were presented.

The Company’s Responsible Business Principles communicate to employees the values and principles, such as the code of ethics and conduct, that guide the actions of individuals and the group.

3 Labor Practices
  • Reasonable work remuneration and assessment of salary differences between employees.
  • Flexible work hours and remote work options, without affecting remuneration.

Movistar has been one of the first 3 companies in Colombia – and the first telco- to be re-certified with the Equipares Labor Equality Gold Seal, granted by the Ministry of Labor and the Presidential Advisor for Women’s Equality, with technical support from the United Nations Development Program (UNDP), and it has highlighted the commitment to reducing the salary gap. Additionally, the Company has an Appointments and Compensation Commission that ensures compliance with the principles of Equality and Salary Equity for managers.

Additionally, the Company offers options of flexible hours, remote work, and initiatives that promote people’s quality of life with time off and experience benefits, such as the UNO Program and Momentos Movistar. (See additional details in chapter 8.4 – We reconnect by motivating the best talent).

 

Movistar ha sido una de las 3 primeras compañías del país -y la primera del sector telco- en recertificarse con el Sello de Oro de Equidad Laboral Equipares
4 Environmental Practices
  • Annual audits with publication of results and training for employees on the company’s social and environmental mission.
  • Monitoring of greenhouse gases, implementation of recycling programs, increase the sources of renewable energy and encourage suppliers to perform their own environmental assessments.

The Company has an Environmental Management System certified under ISO 14001. It also has targets at 2025 and 2030 to help mitigate the impact of climate change, including, among others, consuming renewable energy sources (100% renewable by 2027) and the reduction of energy consumption per traffic unit. For the Company, the environmental commitment of its suppliers is also a key factor, and it encourages and assists them in taking steps to minimize the impacts on climate change derived from their activities. (See additional details in chapter 8.3 – We reconnect by being responsible with suppliers, and 8.5 – We reconnect by being responsible with the environment).

The goal in 2025 y 2030 and 2030 is to help mitigate climate change impacts.
5 Community Practices
  • Incentives for volunteer activities and the creation of partnerships with foundations that support social works in the community’s interest.

The Corporate Volunteering program is one of the greatest sources of pride for the Company, which sets an example in terms of social commitment and awareness. In 2021, 2,045 volunteers actively participated in activities that benefited over 40,381 people. Additionally, through Fundación Telefónica Movistar, 1,700,202 people benefited from the projects ProFuturo, Conecta Empleo, Piensa en Grande, Voluntariado y Conocimiento and Cultura Digital. See additional details in chapter 5 (Fundación Telefónica Movistar).

In 2021 2,045 volunteers actively participated in activities that benefited over 40,381 people.

Purchases from locally based companies. Preference for suppliers with equitable and environmental standards.

  • 82%
    of the total amount was awarded to companies incorporated in Colombia.
  • The purchasing system incorporates the supplier sustainability assessment performed by EcoVadis.

Manual for employees with the company’s values and expectations.

  • Responsible
    Business Principles.

Communicate the financial statements to workers.

  • Management Meetings, e-mails from the CEO, Workplace live broadcasts, website with access to the financial statements and Responsible Management Report.

Reasonable work remuneration and assessment of salary differences.

  • Equipares Gold Seal Recertification.
  • Appointments and Compensation Commission.

Flexible work hours and remote work options, without affecting remuneration.

  • 4 flexible time options and Fridays
    from 8 a.m. to 2 p.m.
  • UNO Program and Momentos Movistar.

Annual environmental audits (publishing and training).

  • 13 years certified under ISO 14001.
  • 144 internal and third party audits.
  • 157 training sessions (6,551 hours).

GHG monitoring, recycling or reuse, renewable energy and encourage suppliers: assessments and audits.

  • Reduction of emissions by 35% (equivalent to avoiding 75,054 tonCO2eq) from 2015 to 2021.
  • 66.95% renewable energy.
  • Sustainability in the Supply Chain Policy.

Incentives for volunteer activities and the creation of partnerships with foundations that support social works in the community’s interest.

  • 2045 active volunteers, to the benefit of 40,381 people. These beneficiaries are from 131 municipalities, of which 13 are part of the Development Program with Territorial Approach (PDET, for the Spanish original).
  • The Foundation benefited 1,700,202 people through the projects ProFuturo, Conecta Empleo, Piensa en Grande, Voluntariado y Conocimiento and Cultura Digital.

Benefits

In 2021, the Company not only adopted the status of BIC company, but it also designed exclusive benefits for other BIC organizations, so that all BIC companies that work on maximizing the social and environmental interest beyond the economic interest can obtain exclusive discounts, conferences, demos, customized consulting and personalized assistance on several products and services.