In 2023, the Company continued to advance in the development of activities prioritized as a Benefit and Collective Interest Company (BIC). Additionally, it participated in different spaces, making the management as a BIC company visible, for example, the Global Compact Congress. It also continued to provide solutions with special offers within an exclusive marketplace for BIC clients.
Now, in accordance with Article 1 of Resolution 200-004394 of the Superintendence of Companies, which declares the standards that serve as a basis for the preparation of the management report by BIC companies, the Company has prepared this Responsible Management Report in accordance with the GRI Standards (Global Reporting Initiative).
The activities that the Company has prioritized in the five dimensions are presented below:
BIC companies pursue three fundamental purposes:
- They incorporate a social and environmental purpose that goes beyond the maximization of the economic interest of their shareholders.
- They ensure that the purpose described is fulfilled so that the company’s directors and managers can maximize social and environmental interest.
- They guarantee transparency in reporting their business impact in five dimensions: business model, corporate governance, labor practices, environmental practices, and community practices.
Business
Model
Acquire goods or services from local companies or companies that belong to women and minorities, and give preference in contracting to suppliers of goods and services that implement equitable and environmental standards.
The largest percentage of the Company’s suppliers continued to be of local origin (70%), and even the values awarded to companies incorporated in Colombia increased from 88% in 2022 to 89% in 2023.
On the other hand, in line with the Sustainability Standard in the Supply Chain, the Company relied on the Achilles assessment of the sustainability performance of its Allied suppliers. (See more in Chapter 4.4.5. – Commitment to Suppliers).
Corporate
Governance
- Create a manual for its employees, to record the society’s values and expectations.
- Disclose the company’s financial statements to its workers.
The Principles of Responsible Business are the code of ethics that define the Company’s values and expectations, the way of working to achieve trusting relationships with stakeholders, guiding individual and group actions. In 2023, communication of these Principles and the promotion of the virtual course were carried out, achieving 91% completion by the workforce. Additionally, the Compliance Department provided 30 internal and external trainings on Telefónica’s Compliance Program, which addressed issues related to the Principles of Responsible Business. (See more in Chapter 4 – Strategy, and the Commitments and policies in Chapter 4.4.3. – Culture based on ethics and responsible principles).
There are various communication channels with employees, both in-person and virtual, that keep them informed of the Company’s financial situation. The Management Meeting, the President’s emails, live broadcasts on Workplace, and the website are some of the channels through which employees learn about financial results. In 2023, 13 in-person and/or virtual cafés or workshops were held, led by the CEO in locations nationwide, and 100 led by Directors and Regional Managers. Additionally, 5 “Commitment to the Regions” broadcasts were made, to generate closeness with employees located in the Regions. Good practices and the teams’ contribution to business objectives are shared. And 5 Management Meetings were held, with quarterly periodicity to show the progress of strategic plans, and operational and financial indicators. To reinforce the information shared, CEO-1 level (Directors) are invited to activate the cascading communication exercise with their area, to ensure that the information reaches the base of the structure.
Labor
Practices
- Reasonable salary remuneration and analyzing salary differences between its employees.
- Flexibility in the workday and telecommuting options, without affecting remuneration.
For Telefónica Colombia, it is of great importance to have a solid and consistent salary structure, which 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 everything from the description to the salary assignment for the organization’s positions, as well as constant comparison with the market to determine the competitiveness of salaries. This process is carried out based on the position and its valuation and impact on the organization, not on its occupants, so gender is not a determining factor in calculating the salary assignment, nor in evaluating its behavior in the market. (See more in Chapter 4.3.4.3 Human Capital – Salary Remuneration).
The Company offers hybrid work model options with flexible hours and work from home initiatives, as well as initiatives that promote the quality of life of employees with time and experience benefits, such as the UNO Program and Movistar Moments. (See more in Chapter 4.3.4.4 Human Capital – Well-being and Work-Life Balance, and Telecommuting).
Environmental
Practices
- Annual audits with disclosure of results and employee training on the society’s social and environmental mission.
- Oversight of greenhouse gas emissions, implementation of recycling programs, increase in renewable energy sources and motivation for suppliers to conduct their own environmental assessments.
The Company has an Environmental Management System (SGA), structured under ISO 14001, certified since 2007. In 2023, the joint certification of the Environmental Management System (SGA) was followed up with Occupational Safety and Health at Work (SGSST).
In 2023, the Company carried out 18 audits: internal and assurance, equivalent to 70.5 days of audit, with the aim of identifying timely improvements to the Management System, ensuring the planning of actions and strategies aimed at solving the identified deviations.
Telefónica has a training program to strengthen the knowledge and training of employees and allies on environmental issues. In 2023, 831 sessions were held, equivalent to 3,472 hours of training in environmental topics such as: Telefónica’s Environmental Management, ISO 14001:2015 standard, reinforcement of operational controls defined in the Company, solutions for the green transition, voluntary carbon market, waste management and classification, reporting and monitoring in GreTel for ally loop, emergency preparedness and response, and environmental training for auditors, among others.
On the other hand, clear goals have been defined for reducing emissions compatible with the products and services provided and with the growth and expansion of the network; even this is one of the indicators that impacts the variable remuneration of employees. The climate action plan frames the quantification of GHG emissions, objectives are defined, and actions are taken for the Company’s activities. Annual reporting and quantification of electricity consumption, fuels, refrigerant gases, among others, are carried out to calculate the carbon footprint, and this data is verified by the Spanish Association for Standardization and Certification (AENOR).
In relation to waste management nationwide, a campaign is in place in all Experience Centers (CE) nationwide for the return of cell phones and accessories; in this way, the goal is to recover components and minimize impacts on the environment. Likewise, the return of modems and decoders by customers helps to reintegrate 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 each customer.
With regard to energy consumption from renewable sources, the Company reached 89% in 2023, being one of the indicators included in the loans linked to sustainability indicators with Bancolombia and Scotiabank Colpatria.
Additionally, suppliers are encouraged to conduct their own environmental assessments. The Sustainability in the Supply Chain Policy specifically defines 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 standards with international recognition. (See more in Chapter 4.2 – Environmental Management).
Practices with
the Community
- Incentivize volunteering activities and create alliances with foundations that support social works in the community’s interest.
Through the Telefónica Movistar Foundation’s Corporate Volunteering program, the Company directly benefited 59,646 people thanks to the solidarity of 2,700 volunteers, 56% (1,502) of the volunteers were Telefónica employees, while 44% (1,198) were external individuals who joined through social entities or independently. They donated 16,054 hours of their time. A plan was executed with a total of 155 activities. These were distributed as follows: 125 in person, providing opportunities for direct interaction, 26 events were carried out virtually, and 4 activities were hybrid, combining in-person and virtual elements to maximize reach and participation in training activities within the framework of the DIVT, robotics, and a “Movistar sin Barreras” workshop. As part of this program, donations were also collected from 151 employees, for a total of 47.7 million pesos. These funds were allocated to support educational activities for children with the delivery of school kits. (See more in Chapter 5.3.6. Telefónica Movistar Colombia Foundation – Corporate Social Action and Volunteering Program).
Likewise, the Telefónica Movistar Foundation managed to benefit over 1.8 million people through the programs: Digital Education, Employability and Digital Entrepreneurship; Knowledge and Digital Culture; and Corporate Volunteering. (See more in Chapter 5.2.1. Telefónica Movistar Colombia Foundation – Total Beneficiaries and General Indicators).
Additionally, the Foundation promoted articulation with the Company and allies, to position the Foundation as a benchmark in digital education through participation in relevant events (Department Governments – Ministry of National Education (MEN), Ministry of Information and Communication Technologies (MinTIC), Mayors’ Offices, Federation of Municipalities, Colombia Líder, AFE, Unesco) Formalizing long-term alliances with key territorial and/or government entities, thus consolidating the recognition and positive positioning achieved by the Foundation. (See more in Chapter 5.4 Telefónica Movistar Colombia Foundation – Collaborations and Alliances).
Here is a summary of the fulfillment of activities for each of the BIC Company’s dimensions:
Purchases from local companies. Preferences for suppliers with equitable and environmental standards:
●
70% of supplier companies are of local origin and 89% of the values awarded to companies incorporated in Colombia.
●
Monitoring the performance in sustainability of allied suppliers with Achilles Audit
Manual for employees with the society’s values and expectations:
●
Principles of Responsible Business
Disclosure to workers of the company’s financial statements:
●
Management meetings, Cafés, Regional Meetings
Reasonable salary remuneration and analyzing salary differences:
●
Remuneration policy and commission of appointments
Flexibility in the workday and telecommuting options, without affecting remuneration:
●
UNO Program and Movistar Moments, E-Work
Environmental audits
(disclosure and training):
●
16 years certified in ISO 14001
GEI supervision, recycling, renewable energy and suppliers with evaluations:
●
-71% GEI emissions since 89% renewable energy
Sustainability Policy in the supply chain
Incentivize volunteering activities and create alliances with foundations that support social works in the community’s interest:
●
+2,700 active volunteers
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+1.8 million beneficiaries of the Telefónica Movistar Foundation through its programs: ProFuturo, Conecta Empleo, Piensa en Grande, Volunteering, Knowledge and Digital Culture