BIC Management
Report
In the year 2022, the Company continued to advance in the development of the activities prioritized as a Benefit and Collective Interest Company (BIC). Additionally, the Company participated in various spaces to make its management as a BIC Company visible, for example, ExpoBIC, the “Conversatorio: Sostenibles y rentables, el nuevo reto de las empresas colombianas” (Discussion Group: Sustainable and profitable, the new challenge for Colombian companies) and the Global Compact Congress. It also continued to provide solutions with special offers in a marketplace exclusively for BIC clients.
Now, in accordance with Article 1 of Resolution 200-004394 of the Superintendence of Companies, which states the standards that serve as the basis for the preparation of the management report by BIC companies, the Company has prepared this Responsible Management Report in accordance with the GRI (Global Reporting Initiative) Standards
BIC companies pursue three main purposes:
- They incorporate a social and environmental purpose that goes beyond maximizing the economicinterest of their shareholders.
- They ensure the fulfillment of the described purpose so that the directors and managers of the company can maximize the social and environmental interest.
- They guarantee transparency in the reporting of their business impact in five dimensions: business model, corporate governance, labor practices, environmental practices and community practices.
The activities that the Company has prioritized in the five dimensions are presented below:
1. Business Model:
- Procure goods or services from local, minority and women-owned businesses and give preference in contracting to suppliers of goods and services that implement fair and environmental standards.
By 2022, the largest percentage of the Company’s suppliers continued to be of local origin (79%), and the amount awarded to companies incorporated in Colombia increased from 82% (in 2021) to 88%.
Furthermore, in line with the Supply Chain Sustainability Standard, the Company relied on the EcoVadis assessment of the sustainability performance of high-risk suppliers in an integrated approach with the purchasing system. (See more details in chapter 5.4.5 – Commitment to Suppliers).
2. Corporate Governance
- Create a handbook for its employees, in order to consign the values and expectations of the company.
- Disclose the company’s financial statements to its employees.
The Principles of Responsible Business are the code of ethics that define the Company’s values and expectations, the way of working to achieve relationships of trust with stakeholders, guiding individual and group actions. In 2022, we approved and announced the current version of these Principles and launched the new version of the e-learning course, with 96% of our staff completing the course. In addition, the Management of Compliance provided 37 internal and external training on Telefónica’s Compliance Program, which included topics related to the Principles of Responsible Business. (See more details in chapter 4 – Strategy, Commitments and Policies and chapter 5.4.3. – Culture based on ethics and responsible principles).
There are several channels of communication with employees, both face-to-face and virtual, that allow us to keep them abreast of the Company’s financial situation. The Management Meeting, the President’s Office emails, the lives in Workplace and the website are some of the channels through which employees are informed of the financial results. In 2022, we held eight personal and virtual coffees or Discussion Group, led by the CEO, Directors, and Regional managers; eleven in-person visits by the CEO to the national branches, and five massive quarterly Company meetings (1 Strategic Plan kick-off and 4 quarterly follow-up events). To ensure employee engagement, we developed in-person formats and other hybrid formats through live broadcasts on the corporate social network Workplace.
3. Internships
- Reasonable salary remuneration and analyze salary differences among its employees.
- Flexibility in working hours and teleworking options, without affecting remuneration.
For Telefónica Colombia it is of great importance to have a solid and consistent salary structure that recognizes individual performance, values the importance and impact of each position within the organization and is competitive in the national salary market. This structure is based on a systematic process that covers from the description to the salary allocation for the organization’s positions, as well as the constant comparison with the market to determine the competitiveness of our salaries. This process is based on the position and its valuation and impact on the organization, not on its occupants, so gender is not a determining factor in the calculation of the salary allocation, nor to evaluate its performance in the market (see more details in chapter 5.3.2. Human capital – Salary remuneration).
The Company offers flexible scheduling options, as well as initiatives that promote the quality of life of people with time and experience benefits, such as the UNO Program and Movistar Moments. Additionally, in 2022 the Local Instruction of the Teleworking scheme was approved (See more details in chapter 5.3.2. Human capital – Well-being and work-life balance, and Teleworking)..
4. Environmental Practices
- Annual audits with disclosure of results and employee training on the social and environmental mission of the company.
- Monitoring greenhouse gas emissions, implementing recycling programs, increasing the use of renewable energy sources and encouraging suppliers to conduct their own environmental assessments.
La Compañía cuenta con el Sistema de Gestión Ambiental (SGA), estructurado bajo la norma ISO 14001, certificado desde 2007. En 2022 se realizó el seguimiento de la certificación conjunta del Sistema de Gestión Ambiental (SGA) con Seguridad y Salud en el Trabajo (SGSST).
En 2022 la Compañía llevó a cabo 31 auditorías para el Sistema de Gestión Ambiental, las cuales comprenden: internas, aseguramientos y a terceros, equivalente a 103 jornadas de auditoría, con el fin de identificar las mejoras oportunas al Sistema de Gestión y en sus proveedores, garantizando la planificación de acciones y estrategias encaminadas en solventar las desviaciones identificadas.
Telefónica Movistar cuenta con un programa de formación con el fin de fortalecer el conocimiento y capacitación en asuntos ambientales de los(as) colaboradores(as) y aliados. En 2022 se realizaron 282 sesiones equivalentes a 26.700 horas de formación en temas ambientales como: Gestión Medio Ambiental de Telefónica, Norma ISO 14001:2015, refuerzo de los controles operacionales definidos en la Compañía para la mitigación de impactos ambientales, planes de emergencia, gestión y clasificación de residuos, control de la fauna y flora en las operaciones de red, manejo de poda y tala y publicidad visual exterior. La Compañía también pone a disposición de sus colaboradores un sitio corporativo (intranet) donde se puede consultar la información ambiental de la Compañía, la Política Ambiental, los programas de gestión, indicadores, objetivos, resultados del desempeño ambiental, tips, aspectos e impactos ambientales, entre otros.
The Company has an Environmental Management System (EMS), structured under the ISO 14001 standard, certified since 2007. In 2022, we performed the follow up of the joint certification of the Environmental Management System (EMS) and Occupational Health and Safety (OHS).
In 2022, the Company carried out 31 audits for the Environmental Management System, which include: internal, assurance and third parties, equivalent to 103 audit days, in order to identify timely improvements to the Management System and its suppliers, ensuring the planning of actions and strategies aimed at solving the identified deviations. Telefónica Movistar has a training program in order to strengthen the knowledge and training in environmental issues of employees and partners. In 2022, a total of 282 sessions equivalent to 26,700 hours of training were held on environmental issues such as: Telefónica Environmental Management, ISO 14001:2015 Standard, reinforcement of operational controls defined in the Company to mitigate environmental impacts, emergency plans, waste management and classification, control of fauna and flora in network operations, management of pruning and felling, and outdoor visual advertising. The company also provides its employees with a corporate website (intranet) where they can access the company’s environmental information, environmental policy, management programs, indicators, objectives, environmental performance results, tips, environmental issues and impacts, among others.
On the other hand, we have defined clear goals for the reduction of emissions compatible with the products and services provided and with the growth and expansion of the network; this is also one of the indicators that impacts the variable remuneration of employees. The climate action plan frames the quantification of GHG emissions and defines the objectives and actions for the company’s activities. The annual report and quantification of electricity, fuel, and refrigerant gas consumption, among others, is used to calculate the carbon footprint, and this data is verified by the Spanish Association for Standardization and Certification (AENOR).
National waste management, there is a campaign in all the Experience Centers (EC) nationwide for the return of cell phones and accessories, thus promoting the recovery of components and minimizing the impact on the environment. Likewise, the return of modems and decos by customers helps to reincorporate this equipment into the operation, minimizing the use of materials for the manufacture of new equipment and reducing the waste generated by the services delivered to the customer’s home.
In terms of energy consumption from renewable sources, the Company achieved 86.91%, this being one of the indicators in the credits linked to sustainability indicators with banks Bancolombia and Scotiabank Colpatria.
In addition, suppliers are encouraged to
carry out their own environmental assessments.
The Supply Chain Sustainability Policy defines
precisely that the supplier must have or be in
the process of having a documented
environmental management system that
guarantees effective planning, action and
control of the most relevant environmental
aspects of its activity. This system must meet
the requirements of ISO 14001 or other similar
internationally recognized standards (see more
details in chapter 5.2 – Environmental
Management).
5. Community internships
- Encouragement of volunteer activities and creation of alliances with foundations that support social works in the interest of the community.
The Company, through Fundación Telefónica Movistar’s Corporate Volunteering program, has achieved the solidarity of 2,830 volunteers, who donated 22,952 hours of their time in 172 activities to bring support, smiles and well-being to more than 45,208 beneficiaries through projects that promote the closing of digital gaps and humanitarian aid. Likewise, Fundación Telefónica Movistar was able to benefit more than two million people through the programs: Digital Education, Employability and Digital Entrepreneurship; Digital Knowledge and Culture and Corporate Volunteering.
In addition, in 2022, the Community of Excellence was launched, a recognition to partners, advisors and/ or volunteers who have participated or worked in the Foundation’s projects (see more details in chapter 7 – Fundación Telefónica Movistar Colombia).
The following is a summary of the fulfillment of activities for each of the BIC Society’s dimensions:
