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Annually,

Colombia Telecomunicaciones S.A. E.S.P. (hereinafter “the Company” or “Telefónica Movistar Colombia”) prepares the responsible management report to inform its stakeholders about its financial and non-financial management the previous year. This report accounts for the Company’s results from January to December 2020 and presents its economic, environmental, social and governance (ESG) management. Additionally, some chapters include information on other entities that are part of the Telefónica Group and that operate in Colombia, such as Wayra and Fundación Telefónica Colombia, hereinafter Fundación Telefónica Movistar. However, in these cases, a clarifying note will be included to specify what each reference is about.

Process for
preparing the report

Stakeholder engagement

(GRI 102-43 and 102-44)

Stakeholder engagement is essential for the Company to find out the level of relevance attributed to the different economic, social, environmental and governance matters, so it can understand the expectations in a changing environment, aiming to maximize the organizational impact and to build relationships of trust. This engagement is based on the AA1000 Accountability Principles (AA1000AP).

The Responsible Business Panel, created in 2016, strives to represent the Company’s main stakeholders, both locally (in Colombia) and globally, and in turn, it is divided into two areas: Central and Extended. Experts in sustainability participate in the former, who contribute a global vision, while in Colombia, 13,426 people from the stakeholder groups (customers, shareholders, investors, suppliers, employees, government, community, civil society, multilateral organizations, trade associations, academia and media) were invited to participate in the latter, and 371 effectively participated. As a result of this dialog, 18 material topics were identified, in which responsible use of technology, digital security and ethical behavior were selected as the most relevant aspects in the decisions of the different stakeholders and where they also perceive a better performance by the Company.

The Responsible Business Panel, created in 2016, strives to represent the Company’s main stakeholders, both locally (in Colombia) and globally, and in turn, it is divided into two areas: Central and Extended. Experts in sustainability participate in the former, who contribute a global vision, while in Colombia, 13,426 people from the stakeholder groups (customers, shareholders, investors, suppliers, employees, government, community, civil society, multilateral organizations, trade associations, academia and media) were invited to participate in the latter, and 371 effectively participated. As a result of this dialog, 18 material topics were identified, in which responsible use of technology, digital security and ethical behavior were selected as the most relevant aspects in the decisions of the different stakeholders and where they also perceive a better performance by the Company.

The Responsible Business Panel

CENTRAL

EXTENDED

Guests from Colombia

13,426

Stakeholders

Participated

371

People

Identified

18

Material topics

Material topics identified in the
Stakeholder Panel

In addition to the Stakeholder Panel and with the aim to maintain an ongoing dialog, the Company carries out stakeholder engagement through other tools and channels to find out their opinion.

Internally, 15 talks (each with 17 participants) and 26 internet broadcasts (or live videos with an average of 900 viewers) with the participation of the CEO were carried out in 2020, as well as 38 talks with Company directors and 39 meeting points in the different areas. These events for employee engagement mainly discussed: leadership in times of remote work, digitalization as an essential factor to reopen the economy, the strategic vision, opportunities for team building, empowerment and

motivation. Additionally, 26 other live videos were produced on well-being (#ConectadosConTuBienestar Hispam [Connected with your Well-being Hispanic America], #JuevesDeMovistarMúsica [Movistar Music Thursdays] and #QuedateEnCasa Con Chris Carpentier [Stay at Home with Chris Carpentier]), achieving more than 4,300 reactions, around 3,000 comments and more than 66,300 views.

Meanwhile, we established dialog with the shareholders in which we talked about topics including bond issuance and financial matters, the progress of the Responsible Business Plan, and the actions carried out by the Company for its employees during the health emergency. With investors, we held 28

meetings to resolve their financial and operating queries, mainly related to the bond issuance, as well as the Company’s management in topics related to COVID-19, the telecommunications spectrum, corporate governance, and competition. Additionally, we held the Value Creation through Sustainability workshop and survey with suppliers.

In 2020, 17 press conferences, mostly virtual, were held with 198 attendees, highlighting the launch of Movistar Business, the installation and respective announcement of the first 5G pilot program in Colombia, and the news on the Movistar fiber-optic rollout in the different regions of the country.

Stakeholders and
engagement tools/channels

(GR1 102-40)

Materiality
update

(GRI 102-46 and 102-47)

Considering the issues identified in the Stakeholder Panel and in the different aforementioned stakeholder engagement opportunities, as well as the Company’s Strategic Plan, the Movistar Colombia Responsible Business Plan 2019-2021, and the Colombian context, the following material topics are listed below:

Relevance
GRI Material topics Coverage Supply chain Internal processes
Customers
Economic Economic management I H H M
201 Economic performance I H H M
Social 1. Reliable and accessible IE H H H
418 Customer privacy E H H H
2. Digital growth and innovatio IE H H H
203 Indirect economic impacts E H H H
Innovation IE H H H
3. Sustainable supply chain E H H L
204 Procurement practices E H H L
4. Magnetic company for best talent I L H L
401 Employment I H H L
403 Occupational health and safety IE H H H
405 Diversity and equal opportunity IE H H M
Environmental 5. Environmental management IE H H M
302 Energy IE H H L
305 Emissions IE H H L
306 Waste IE H H H
Governance 6.Ethics and good governance IE H H H
205 Anti-corruption IE H H H
206 Competition IE L H M
412 Human rights assessment IE H H H
419 Socioeconomic compliance IE H H M
Relevance Coverage
H High I Internal
M Medium E External
L Low
N/A Not applicable

Creating
the report

(GRI 102 - 46 and 102 -54)

Once the material topics were identified, we established the information and relevant indicators to document in the report, which aim to comply with Articles 46, 47 (amended by Article 1 of Law 603/2000) and 446 of Law 222/1995 (Colombian Code of Commerce), and Article 87 of Law 1876/2013. Additionally, this report has been written in compliance with the GRI (Global Reporting Initiative) standards: core option, and adopts the recommendations provided in the Guide to ESG Reporting for Issuers in Colombia.

The Company reporting with GRI standards will facilitate the preparation of information to meet the requirements to be a Collective Benefit and Interest Company (BIC, for the Spanish original), for which, in 2020, it received authorization from the General Shareholders’ Meeting, which was approved in February 2021 by the Bond Holders’ Meeting.

Additionally, it is important to indicate that the report presents both financial and non-financial (ESG) information of the Company. It also includes content on Wayra and a chapter of Fundación Telefónica Movistar Colombia, an entity through which social action is carried out and whose results are not included in the financial statements.

In compliance with the GRI standards, how the Company aims to comply with the principles for the preparation of the report is presented below:

Accuracy: Includes specific qualitative and quantitative content on financial and non-financial management. It gives the reader the opportunity for more content by accessing the links / QR codes that provide greater detail.

Balance: This report also tries to reflect the opportunities for improvement and lessons in the process of being a responsible company with its direct and indirect impacts.

Clarity: It is set out in a manner so that the stakeholders can easily find the information. Each section of content and/or chapter lists the Sustainable Development Goals (SDGs) to which the respective topic contributes and the GRI content, according to the numeration of the GRI Standards; and indicates whether the content is environmental, social or on governance, to facilitate understanding of ESG management.

Comparability: The evolution of the Company’s performance is presented in the key indicators.

Reliability: This report is approved by the Company’s governing bodies and includes figures reported by operations in Colombia for the report of Telefónica S.A., which is audited by the firm PWC Contadores y Auditores Ltda.

Timeliness: It is presented annually once it is approved by the General Shareholders’ Meeting at the first session of the year.

Stakeholder Inclusiveness: this chapter identifies the stakeholders with the respective tools/channels for engagement.

Sustainability Context: In Chapter 4, the report presents the context of sustainability and the Company’s management in the Responsible Business Plan.

Materiality: As previously disclosed, the Company has identified the material topics, which are listed in the report’s chapters.

Completeness: The material aspects and their boundaries are indicated, which reflect significant economic, environmental, social and governance impacts. Therefore, the stakeholders can assess the Company’s performance in the reporting period.

Communication

The report is presented for the announcement of the ordinary meeting of the Shareholders’ Meeting of Colombia Telecomunicaciones S.A. E.S.P. It also has the objective of accountability on the different voluntary commitments in sustainability, such as: the United Nations 2030 Agenda, the Ten Principles of the Global Compact, Business for Peace, the Sustainability Agreement of the National Association of Public Utility and Communications Companies (ANDESCO, for the Spanish original), the Women’s Empowerment Principles, Guías Colombia and Pride Connection. The report will be posted on the corporate website (www.telefonica.co) and will be disclosed on the channels and in the areas that the Company prioritizes.