Innovating for a better tomorrow - 2016 Optus Sustainability Report
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Innovating for a
better tomorrow
2016 Optus Sustainability Report
1
Table of contents About
About this Report...........................................................................................3 this report
A message from our Chairman and CEO................................................4 This is our 17th annual report on the sustainability
performance of Singtel Optus Pty Ltd (Optus) (G4-30)
2016 Highlights............................................................................................... 8 (G4-3). The report covers our financial year 1 April 2015
to 31 March 2016 (G4-28).
About us......................................................................................................... 10
Sustainability at Optus............................................................................... 12 This report and previous years’ sustainability reports can be found online here.
The previous report was released on June 17th 2015 (G4-29).
Marketplace and Customers....................................................................20 Offshore ventures, franchised retail outlets and subsidiaries are not included in this
report unless otherwise stated. This report has been prepared ‘in accordance’ with
Community.................................................................................................... 36 the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines - Core
option. The GRI Content Index can be found on page 88-89
Our people..................................................................................................... 52 We use the London Benchmarking Group (LBG) methodology to measure and
report on our contribution to the community. This year we sought external limited
Environment.................................................................................................. 68 assurance under ISAE3000 for selected indicators in the report. The scope and basis
for the assurance is provided in the Assurance Statement at the end of the report.
UN Sustainable Development Goals..................................................... 82 Ere-S Pte Ltd again provided the assurance as part of a wider engagement with
Singtel, which provided assurance over the Singtel Sustainability Report. This helps
Memberships and industry initiatives we support............................. 84 to facilitate a consistent approach to sustainability assurance across the Group.
All information contained in the report was correct as at 23rd June 2016.
Assurance statement................................................................................. 86
Our approach to sustainability, this report, and previous years’ reports can be found
GRI index........................................................................................................ 88 here.
Singtel has produced its second Singtel Group Sustainability Report which can be
accessed online here.
We welcome your feedback or questions in relation to this report. Please contact
sustainability@optus.com.au (G4-31).
2 3
A message from our Leadership Forum David Gonski with
Nicolette Moore, Heidi Savva & Brione Smink
q
CEO and Chairman
Optus was born to create
new ideas and ways of
using communications
for Australians. We
pride ourselves on being
Australia’s leading
Challenger Company
and we extend this
approach to how we
help our nation be more
sustainable. q
Chairman Paul O’Sullivan (left)
CEO Allen Lew (right)
Building a Smart Nation
places and provided seed funding in
At Optus our goal is to be Australia’s the Young Social Pioneers program allowances, with our superfast 4G
most loved, recommended and which is open to 18-29 year olds who Plus network now reaching 94%
innovative service brand. have great ideas around the big of Australians. We announced our
question “How can we build a better partnership with the Australian
Innovation underpins everything Olympic, Paralympic and Cricket
we do, and in the current year Australia?”
teams. We’ve simplified our pricing,
we brought this to life across our Off the back of that success, made data sharing and rollover
organisation with the establishment The Future Makers program was possible, and consistently rank
of the “Think Big” program. We introduced this year and represents Number 1 on the Netflix ISP
actively encourage our people to a step change for innovation in the speed index.
think about innovation as part of CSR space. We’re looking for people
their day to day roles, setting aside and ideas that will change the future We have a comprehensive energy
a weekly timeslot for collaborative for vulnerable youth. The program efficiency review of our network
brainstorming. Ideas are rewarded operations underway, and this We’ve made good progress in Strengthening our harmonious
will provide participants with an
through individual grants as well as will play a critical role in helping us understanding these impacts and inclusive society
accelerator program and access to
an innovation fund allocated to each industry mentors and networks, and establish long term carbon intensity following a climate change modelling Our current staff mentoring
division, and the most promising six winners will receive funding up to reduction targets. With our network review across our infrastructure. programs assists youth from
concepts are developed through $50,000 and guidance over the next investment we are adapting the We’ve been busy making upgrades vulnerable backgrounds, including
to a ready-for-market product. 18 months to progress their ideas latest mobile technologies which are across our operations to protect refugees and asylum seekers,
By embedding innovation across further. more energy efficient. against natural disasters, such as to successfully integrate into
the organisation we’re delivering To understand our material improving redundancy and energy mainstream schooling. Optus is also
solutions better and faster to our
Helping Australia meet the supply self-sufficiency. This is a key a founding member company of
environmental impacts, not only
customers.
Climate Challenge requirement during times of natural the Australian Business Community .
within our organisation but also
As we continue to invest to create across our extended supply chain, disasters as energy grids often go Network (ABCN) and, since 2005,
We’ve also identified an opportunity
to increase the impact of
innovation and technology within
a leading customer experience,
this has simultaneously increased
this year we concluded our first Life
Cycle Assessment. This was used
down even while our networks need
to remain operational.
over 2,700 Optus staff have
successfully mentored over 7,000 Innovation
the community. To demonstrate
our commitment to youth focused
the importance of managing our
customers growing energy needs and
to establish our 2020 Sustainable
Supply Chain Management strategy.
Optus is also a founding member of
the Australian Business Roundtable
students across 13 mentoring
programs nationally, contributing underpins
everything
carbon footprint. over 26,000 volunteer hours in
innovation, we proudly partnered It’s becoming increasingly clear that for Disaster Resilience and Safer
with the Foundation for Young We’ve invested over $1 billion a year company time.
organisations must not only address Communities, which has undertaken
Australians’ Innovation Nation –
a youth led conversation about
for the last decade in expanding
and improving our networks for
our customers. We’ve improved
their environmental impact, but also
adapt and build resilience to the
leading research, assessments
and advocacy on infrastructure
The current international refugee
crisis is expected to increase we do
innovation and entrepreneurship impacts of climate change. adaptation. Australia’s refugee intake and so we
in Australia. We also sponsored 10 mobile coverage and increased data
4 5
At Optus our
goal is to be
Australia’s
most loved,
recommended
and innovative
service brand
Zealand Internet Awards, and These are just some of the ways that
are working closely with our partner we’re promoting the importance of
also received recognition and
ABCN to see how Australia can most being responsible digital citizens and
provisional accreditation by the
effectively support this integration. promoting cyber wellness and online
Australian Government’s eSafety
Commissioner. safety for our people, customers and
Making the cyber world safer
the broader community.
Optus has continued to build the It has reached over 88,000 students
capacity of our internal operations to since its launch in 2013, and the Strengthening Equality –
protect customer data and privacy. free program has been expanded Increasing Diversity – Building
We’ve extended these reviews to beyond NSW and Victoria to now Our Talent
our critical suppliers and this year include schools in Queensland. Globe
Telecom, the Philippines associate To be Australia’s leading Challenger
completed an assurance program on Company, we need to have a
the systems, processes and policies of our parent, Singtel, recently
adopted and launched Globe Digital workplace that attracts and
of our contact centre partners. fosters the best of our nation’s
Thumbprint.
talent. At Optus we are committed
On the community front, we’ve For our Enterprise customers, to a workplace that provides
extended our volunteering program we’ve significantly strengthened equal opportunity and embraces
overseas and continued to focus our portfolio of cyber security individuals from all backgrounds. of this intake is female, up from creating positive social, economic
our community strategy on the solutions through a major USA We continue to improve our enviable 26% just three years ago. We also and environmental change. In this
assistance of disadvantaged company acquisition and a leading health, safety and wellbeing performed a thorough assessment report, we’re pleased to be able to
youth. We’ve invested heavily in international partnership. Optus program, and are making further of emerging skills requirements demonstrate our responses to some
our digital citizenship and cyber Business now offers a full suite of investment in the areas of gender to identify the specialist skills we of these opportunities. While we’re
security programs. Our flagship cyber security solutions. During and Indigenous equality. will need in our future leaders and still at the early stages in our journey,
Digital Thumbprint Program 2016 we will open a new National
(DTP) continues to grow in We aim to attract the brightest so future proof the organisation we look forward to working with you
Cyber Security Operations Centre
strength, educating students and best, and give them all the tools in areas of growth such as cyber and all our stakeholders to continue
at Macquarie Park – this will
on their online and social media they need to succeed. Our graduate security and data analytics. finding 'Challenger' solutions to
provide World Class detection, crisis
behaviour. The program won the management and rectification scheme is now in its 11th year, and At Optus, we are excited that these issues.
Security and Online Safety Award capabilities to Australia’s leading in 2015-16 we doubled our intake to our industry and our technology Allen Lew Paul O’Sullivan
at the 2015 Australian and New organizations. 47 talented young graduates. 45% will play an instrumental role in CEO Chairman
6 7
Highlights
People engagement
up again to
76% Health &
Focusing on
from 2015 - 2016
wellbeing
score
sustainable improved
8.8%
This past year was all about offering more ‘yes’ to our
customers and leading the charge on our ambition to become
Australia’s most loved, recommended and innovative service Awards:
growth
3
brand. As we focus on creating sustainable growth for our
business, we have a great opportunity to also lead and shape Frontline NPS Digital Thumbprint ‘Cash by Optus’: Best
positive changes for our customers, the communities we Incentive program: Program: Mobile Solution at
operate in, our people and the environment. at the Contact Centre Security and Online the Communications
World Awards Safety Award at the Alliance and
Paul O’Sullivan, Chairman Optus Australian and New CommsDay Awards
Cisco Australia Zealand Internet Revenue
and New Zealand’s Awards grown by
Services Partner of the 3.7% to
Year and Community Kids Helpline @ School: $9.1 billion
Reduced our carbon
63 emissions intensity by
Contribution Award of
the Year
NAPCAN’s National
Play Your Part Award
32%
Yes Optus shops for ‘inspiring prevention
transformed to new 8
initiatives’ Commenced
Generation 6 design
using the
International
47
Labour
talented young graduates joined Optus this year Organisation
+5
Market NPS
95%
of students improved their
640 workplace
health & safety
statistics
$1.5M +
base stations
Optus remains literacy through the mobile upgraded with
the leading Tier 1 student2student program smart meters
Telco
Retired our community grants program to transition to
$8.7 million
. Doubled the number Implemented
Future Makers, having awarded more than $1.5 million
to over 240 local community charities and organisations
EBITDA
margin
invested in to
. of our upgraded
superfast 4G
Sustainable
Supply Chain
since 2007
increased to
Management
30.4%
the community 700MHz sites
strategy
100% of new suppliers Number of volunteer
Undertook complete
+ assessed against
Supplier Code of Conduct
roles filled grew by
39% to 1,917
3
cradle-to-grave Life
Cycle Assessment of
Lead and
90
our operations
shape positive Increased Nearly at total
gender pay parity,
changes
improving salary
75% ratio to
+29 of group’s Life cycle
+ 1:0.99
total procurement 1,917 employees $1.6 billion
Improved
impact
People NPS spend assessed assessment volunteered 16,194 invested in capital
up again against new performed mobile subscriber base expenditure
hours to community
to +29 supplier code of
conduct
over 95% of our
Group spend NPS score by 33% to 4.7 million work and network
improvements
*As at April 30th 2016
8 9
About us
We are Australia’s
second-largest
telecommunications
group with almost 9000 The wider Singtel Group serves over
full time equivalent 600 million mobile customers in 25
employees and countries around the world, and
is a major communications player
342 Optus Yes shops. throughout Asia and Africa
(G4-6 & G4-9) (G4-10)
We provide customers with a range
We serve more than ten million of services including:
customers each day and are the only
carrier in Australia to own and operate mobile
three types of network infrastructure-
mobile, fixed and satellite. fixed and IP telephone
We help businesses and people business network and
communicate anytime and in many ICT services
ways. We make communications
easier, faster, more economical and fixed and wireless broadband
reliable by breaking the barriers of
satellite services
distance, price, time, technology
and the unknown; and by building entertainment and subscription TV Our Vision
strong bonds among us, with our
shareholders, customers and business
partners. We also deliver wholesale services to We want to provide Australia’s
third parties for resale under their most outstanding customer
We’ve been a wholly owned subsidiary own brand. Our retail products and experience, and to become the
of Singtel since 2001 (G4-7). We were services are sold to customers via most loved, recommended
originally listed on the Australian phone, internet or through our retail and innovative service brand in
Stock Exchange on 10 September outlets. Australia (G4-56). In striving to
2001, and delisted from the ASX on achieve this, our five essential
5 June 2015 given the small base Our head office is located at values guide everything we do -
of retail shareholders in Australia. 1 Lyonpark Rd, Customer Focus, Challenger Spirit,
Singtel continues to be listed on Macquarie Park, Teamwork, Integrity, and Personal
the Singapore Exchange Securities Excellence.
NSW 2113. (G4-5)
Trading Limited (SGX).
We own and operate our network
infrastructure which we wholesale
We’re arranged into 3 main to other providers. We also use
the services of other providers
+ business areas which serve different markets (G4-8 & G4-9) to connect our customers.
We have over 6,200 3G base
Group Consumer Group Digital Life Group Enterprise stations reaching over 98.5%
of the Australian population.
This combines the Group’s Drives the Group’s efforts to be Delivers innovative and
We’ve continued to invest in our
consumer-related functions, at the forefront of the digital comprehensive ICT solutions to the
network to improve quality and
including our international business space. It focuses on creating new Group’s enterprise customers across
reliability, and have enabled 4G
in the emerging markets which avenues and revenue platforms geographical boundaries. Both
on over 4,850 base stations. As at
leverages our mobile customer for the Group. Key focus areas Singtel and Optus deliver satellite
30th April 2016, our superfast 4G
base of more than 500 million for include premium over-the-top services, international data and
Plus network reaches 94% of the
optimised outcomes. video, digital marketing and managed services, cloud computing
Australian population. (G4-4 & G4-9)
advanced analytics. and enterprise mobility services.
10 11
.
Our sustainability Optus sustainability framework
framework (G4-14)
We aim to deeply embed sustainability in our DNA, culture, value system
and the way we run our business and engage our stakeholders
Sustainable business model These areas of focus form the • EBITDA is our key measure of
Our aim is to deeply embed foundation of our sustainability profitability o create sustainability and long-term growth for our business, while leading and shaping
T
strategy, which we use to build
sustainability in our culture, values,
positive change across our four
• Net Promoter Score (NPS) is our positive change for our marketplace & customer, the communities we operate in, our
decision-making, operations, key measure of advocacy
products and services to create sustainability pillars: Marketplace & people and the environment
a sustainable business that is Customers, Community, our People • Your Voice is our key to unleashing
positioned for long-term success. and the Environment. the potential of our people
Marketplace Community Our people Environment
We continue to review and enhance Sustainability through innovation We’ve identified a number of and customers
our approach to sustainability to indicators that help us measure
achieve this goal. We’re continually working to find new
our performance and longer term • Delivering superior • Driving positive and • To be an employer our • Through understanding
and innovative ways to transform
objectives to bring about positive customer experience and sustainable changes to people are proud to work our impacts, we’re
Our focus is on the areas we’ve the lives of the people we connect,
change for our people, community transforming the way our disadvantaged communities, for by providing care and committed to minimising
determined to be material to Optus; and make a positive impact on our
and the environment as outlined customers live and work especially vulnerable youth equal opportunities in a our environmental footprint
where we have an opportunity to society. We do this by leveraging
on page 14. with our innovative ICT workplace and culture across our value chain.
take a leadership role and where our the power of communication and products and services
• Enabling the inclusion and
that are diverse, inclusive
skills, resources and expertise can infotainment at our disposal. We well-being of young people • We will achieve this by
To keep us focused and ENVIRONMENT and collaborative
make a positive difference on current have the opportunity today to use • Adhering to the highest and the broader community delivering on our 4 strategic
accountable, each year we set pillars: addressing climate
and future generations. our skills, resources and expertise to standards of corporate • Challenging and
annual goals for the coming 12 • Engaging our people to
developing our people change, integrating the
governance
make a positive difference into the months, and report on how we’ve support the community
environment agenda
We identify the areas we believe to reach their fullest
future. progressed at the end of the • Embracing responsible through corporate workplace
potential into our value chain,
are important to both us and our business practice giving and volunteer
Staying on track is critical to achieve reporting period. We are also a engaging our stakeholders
key stakeholders through open and programs
our plan and vision so we’ve identified member of the United Nations and product & resource
consistent communication, and we responsibility
key performance indicators (KPIs) to Global Compact (UNGC), with our
focus on shaping positive change in
measure how we’re going. areas of focus aligned to support
these key areas.
the 10 principles of the UNGC
and the UN’s 2030 Sustainable
Optus Material Aspects
Development Goals. • Customer Data and • Inclusion of vulnerable • Talent attraction and • Climate change and
Privacy Protection groups retention energy management
• Supply Chain • Cyber wellness and • Employee health
Management online safety and safety
• Regulatory compliance
• Customer satisfaction
• Product quality
• Innovation
• Customer health & safety
• Fair marketing
We’re continually working to communications
find new and innovative ways to Alignment to UN Sustainable Development Goals
transform the lives of the people • SDG3 good health and • SDG3 good health and • SDG3 good health and • SDG9 industry, innovation
we connect and make a positive well-being
• SDG9 industry, innovation
well-being
• SDG4 quality education
well-being
• SDG5 gender equality •S
and infrastructure
DG11 sustainable cities
impact on our society and infrastructure
• SDG10 reduced
• SDG8 decent work and
economic growth
• SDG8 decent work and
economic growth •S
and communities
DG12 responsible
inequalities • SDG10 reduced consumption and
• SDG9 industry, innovation
• SDG11 sustainable cities inequalities production
and infrastructure
and communities • SDG13 climate action
• SDG10 reduced inequalities
• SDG12 responsible • SDG17 partnerships for
consumption and • SDG11 sustainable cities
the goals
production and communities
• SDG17 partnerships for • SDG17 partnerships for
the goals the goals
12 13
Our sustainability Sustainability
scorecard governance (G4-2)
For the financial year ended 31 March 2016, we delivered grew 7% to $901 million. Underlying net profit grew
Our corporate governance framework ensures
another year of strong revenue and EBITDA growth,
underpinned by the improved performance of our mobile
7% year-on-year to $931 million. EBITDA margin
improved 0.6 points to 30.5%. Free cash flow for the that we react responsibly to the evolving social Sustainability
operations. Operating revenue was up 4% to $9.12 billion. full year declined by 37% to $617 million due to working and environmental landscape, and make the best governance structure
EBITDA grew 6% to $2.77 billion, while annual net profit capital movements. decisions not just for our business but for our (G4-34)
complete value chain.
Category Indicator 2015-16 2014-15 2013-14 Board of Directors
We’re committed to the highest Governance structure (G4-34)
Economic value generated ($million) 9,115 8,790 8,466 standards of corporate conduct. We take our compliance standards
We’ve developed a robust set of seriously. Every year, our senior
Economic value distributed ($million) well-defined corporate governance leaders and people must complete Management Committee
Operating costs 5,143 5,002 4,851 processes to strengthen our
Economic performance mandatory compliance modules
Staff costs 1,299 1,246 1,171 corporate performance and
(G4-EC1) such as fraud awareness and fraud
Dividends to shareholders 600 560 560 accountability. Our values of Formulating
risk indicators, information security, sustainability strategy
Tax expense 379 360 361 customer focus, challenger spirit, equal opportunity employment,
Economic value retained ($million) 1,685 1,613 1,513 teamwork, integrity and personal conflict of interest declaration.
excellence are embodied in our Code (G4-DMA)
Customer net promoter score (NPS) +5 +4 +5 of Conduct. (G4-56)
4G population coverage* 94% 86% 55%
But we think it’s important to do
Marketplace & This drives us to conduct our more than just comply – we want
customers 4G base stations* 4,850 3,454 1,824 business in an ethical manner Group CSR
to challenge the status quo, show
TIO complaints /10,000 customers 2.5 1.9 1.8 whenever we deal with customers, leadership and continually strive to
suppliers, competitors and the minimise our negative impact and Managing sustainability throughout the
Employee engagement score 76% 75% 73%
community. contribute positively to society. Singtel Group
Employee advocacy - people NPS +29 +28** +20**
Voluntary staff turnover 8.2% 10% 8.4% Strategic oversight across As well as establishing a robust
People
sustainability is led by Singtel’s sustainability governance structure,
Women in executive management *** 20 23*** 11 Group Management Committee one of the key ways we achieve this
Gender pay ratio 1:0.99 1:0.98 1:0.9 with Singtel Group CSR overseeing .
is through participating in a number
Accident frequency rate**** 0.79 n/a n/a the formulation, recommendation, of external forums and through Group CSR Working Group
Health & wellbeing score +8.8% +20.9% n/a coordination, execution and supporting new industry standards
Community investment ($million) 8.7 8.7 9.7 reporting of the group’s and codes.
Sustainability Strategy. Singtel
Children reached by cyber safety programs 51,728 44,162 29,866 A listing of the externally developed
Our Corporate Responsibility Singapore
economic, environmental and social
Community Youth literacy rate improvement (%) 95% 94% 93% Steering Committee provides local initiatives we support can be found
Employee volunteering hours 16,194 11,505 8,724 guidance on execution of the group’s on page 84-85. (G4-15) Optus
Volunteering participation rate 21% 15% 11.5% sustainability strategy in Australia, Australia
delivering on our commitment to our
Energy consumption 1,657,262 1,494,342 1,363,670 four focus areas of marketplace &
(gigajoules) customers, community, our people Associates
Environment
Direct & indirect greenhouse gas (GHG) emissions 396,863 377,519 346,102 and environment with a specific
(tonnes CO2-e) focus on our material aspects. Regional Group CSR
A platform for the various working
Carbon emissions intensity 0.26 0.39 0.49 groups to collaborate and share best
(tonnes CO2-e/TB) practices on CSR programs
Developing and implementing
sustainability and programs
*Correct as at April 30th of the reporting year, consistent with our annual reporting.
** In September 2014 an adjustment was made to our people NPS calculation methodology to take into consideration weighting based on employee count from each business area. This increased the people NPS score by +6 points.
*** In 2014-15 we changed our calculation methodology to include all executive positions. The 13-14 figure under this method would have been 16.
****This year we adopted the International Labour Organisation (ILO) methodology for calculating our safety performance statistics for the first time. In previous years we adopted the Singapore Ministry of Manpower methodology, but are unable Business and support units
to restate comparative data.
Close working relationship
14 15
Engaging How we engage
our stakeholders our stakeholders (G4-24, 25, 26 & 27)
Listening to our strategies and achieve our our stakeholders to hear their views
Stakeholder Issues of interest Engagement mechanism Frequency
objectives. As such, we engage on our sustainability reporting, and
stakeholders helps us with them regularly to understand used this to guide the way that we
Customers • Easier and simpler products • Market NPS Ongoing
identify the key issues, their interests and concerns so structure and deliver our report to • Better service • Touch point NPS to capture feedback from
risks and opportunities that we can work to meet their
expectations, manage any potential
them. • Pricing interactions such as Optus Shops, Care and
• Better network speeds and Digital
which are important to risks to our business, continue to coverage where you need it
them and also to our make a positive contribution to
long term sustainability. the community and importantly, We continue Shareholders 1 • Financial and operational
performance
• One-on-one meetings
• Investor conferences and roadshows
Quarterly and as
required
Our key stakeholder groups
identify future industry trends so
that we can innovate products to enhance our • Strategy
• Performance of various
• Conference calls
• Email communications
include customers, shareholders, and services, stay ahead of our sustainability business units
reporting to fulfil
employees, charity partners, local competitors and offer more 'Yes'
to our customers. Employees • Rewards and incentives • Employee roadshows Quarterly, annually
communities, Government and
the changing
• Customer Service • Internal intranet and as required
regulators, industry associations • Culture • Staff newsletters
The table on the next page
needs of our
and suppliers. • Wellbeing • Emails
outlines our stakeholder groups,
• Diversity & Inclusion • People NPS Quarterly
our engagement activities and how
All of our stakeholder groups
are impacted by our operations, we’re responding to stakeholder stakeholders • Learning & development
• Our work with communities
• Annual Engagement Survey – “Your Voice”
products and services, and their interests. As well as regular
actions can affect our ability stakeholder engagement, last year Local communities • Visual impacts • Letter box drops As required
to successfully implement our we undertook a targeted survey of + • Property values • Local newspaper articles
• Perceived adverse health • Community consultation sessions or
and safety impacts of community drop in sessions
electromagnetic energy (EME) • Briefing with local councils and councillors
• Network outages • Briefing Members of Parliament
• Impact of natural disasters on • Web based consultation updates
network services
Charity partners • Safe & secure digital online • Face-to-face meetings Depending on
and community practices • Workshops partner – from
organisations • Community access to services • Online surveys weekly to monthly
• Reducing environmental impact
• Social impact measurement
Industry • Varies depending on industry • We are a member of a number of industry As required
associations topic and focus of information. associations and engage in the development
• See section at back of report of self- regulatory codes and policy positions on
for a list of Optus’ industry a range of topics related to our industry (e.g.
association memberships and NBN, spectrum, copyright, marketing, privacy,
other initiatives we support environment, health and safety, packaging and
reporting frameworks)
Government • We engage with all levels of • Participation in consultation papers As required
an regulators government across Australia
Suppliers • Corporate governance • We have a supplier assessment that outlines As required
• Occupational health and safety governance and environmental issues.
• Environmental management • Audits of suppliers as required in areas of Optus
• Product stewardship sustainability material issues
• Supplier management
1
. Optus is a wholly-owned subsidiary of Singtel. “Shareholders” here refers to the shareholders of the broader Singtel Group, which is listed on the SGX.
16 17
Materiality Focusing on what
assessment process matters most (G4-2)
Our business model and strategy We’re committed to delivering management and reporting of
We consider external stakeholder
focusses on the areas that present value to our shareholders through risks throughout the organisation
perspectives and internal business
opportunities for us to create sustained profitable growth, but to provide assurance to the Singtel
perspectives to develop a long list
Mar innovative and sustainable long term we won’t compromise our integrity, Board and our relevant stakeholders.
of relevant topics, establish and
ent ket success for our business. values and reputation by risking
apply rating criteria to determine pl Last year we also undertook
m • Climate change • Innovation ac brand damage, service delivery
the top 25 issues most important to ron • Product quality
Underpinning this however, is the
standards, severe network disruption a comprehensive materiality
both viewpoints, and then conduct need to manage and mitigate risks
e&
and energy
vi
or regulatory non-compliance to assessment to identify issues and
En
• Customer satisfaction to the business.
a workshop to shortlist the issues management other relevant topics considered
cu s
achieve this.
considered to be most significant to us • Customer health and safety
important for reflecting our
tom
The identification and management
and our stakeholders. • Supply Chain Management As a signatory of the United Nations economic, environmental and social
of risks is key to reducing uncertainty
Global Compact, we’ll also uphold
ers
• Fair marketing communications
over the execution of our business impacts and/or influencing the
The issues selected provide the starting the ten principles covering human
• Customer data and privacy
strategies. Risks take on many forms views of our key stakeholders. We
point for informing the content of our rights, labour practices, environment
• Regulatory compliance
and have the potential to materially will re-assess our material issues
sustainability reporting. We’ve validated and anti-corruption.
impact our reputation, operations, again this year to ensure that we’re
these areas by cross checking them with Material Issues human resources and financial We undertake a continuous process constantly on top of the areas of
the significant issues that arose across
performance. of risk identification, monitoring, most importance to our business
the business and in the media during the
and our stakeholders. (G4-DMA, G4-18)
reporting period. • Cyber wellness and • Talent attraction and retention
online safety • Employee health & safety
This helps make sure our report provides
nity
• Inclusion of
a balanced representation of our .
u
vulnerable groups
sustainability performance.
mm
Our material issues and aspects
le
G4-19, G4-20 and G4-21
op
Our final set of material issues, referred Co Pe
to as 'Aspects' as defined by the GRI,
have been aligned with our sustainability Optus material issue GRI G4 material aspects & boundary Boundary Report chapter
strategy pillars, and translated into the Customer satisfaction Product & service labelling – PR5 External (customers) Marketplace & Customer
relevant G4 Standard Disclosures to
guide our reporting of information and Product quality / Compliance – PR9 Internal & external Marketplace & Customer
data this year. Regulatory compliance (customers, government
and regulators)
High Customer satisfaction Innovation Indirect economic impacts - EC7 External (customers, Marketplace & Customer
local communities)
Supply Chain Management Consumer data and privacy Customer privacy– PR8 Internal & external Marketplace & Customer
Influence on external stakeholders (External perspective)
(customers, regulators)
Innovation Customer health & safety Customer health and safety – PR2 External (customer, local Marketplace & Customer
communities, regulators)
Product quality
Fair marketing Marketing communications – PR7 External (customer, Marketplace & Customer
Customer health and safety Inclusion of vulnerable groups communications regulators)
Supply chain management Supplier human rights assessment – HR10 External (suppliers) Marketplace & Customer
Climate change and Supplier Environmental assessment – EN32
energy management Fair marketing Customer data and
communications privacy protection Cyber wellness and online Local communities– SO2 External (local Community
Med Cyber wellness safety communities, charity
and online safety partners)
Employee health
Talent attraction & safety Inclusion of vulnerable groups Economic performance– EC1 Internal & external (local Community
and retention Indirect economic impacts – EC8 communities, charity
Regulatory
compliance partners)
Talent attraction and retention Employment – LA1 Internal Our people
Training & education – LA9 & LA11
Employee health & safety Occupational health & safety– LA6 Internal Our people
Climate change and energy Energy– EN3 Internal & external Environment
management Emissions – EN15, 16, 17 & 18 (local communities,
charity partners)
Influence on internal stakeholders (Internal perspective)
Low
* All the external impacts are deemed to be within Australia except for supply chain and the environment, where the impacts are global.
Med High
18 19MARKETPLACE & CUSTOMERS
Marketplace
3 and customers
Providing tomorrow’s
customer experience,
today
. Material Topics:
Product quality...................................................................................................... pg 24
Customer satisfaction........................................................................................ pg 26
Innovation............................................................................................................... pg 27
Supply chain management................................................................................ pg 28
Regulatory compliance.........................................................................................pg 31
Consumer data & privacy....................................................................................pg 31
Customer health & safety.................................................................................. pg 34
Fair marketing communications...................................................................... pg 35
Context:
Our customers are at the heart of
everything we do. Our ambition
is to be Australia’s most loved,
recommended and innovative
service brand. To achieve this, we’re
making sure that we deliver the
most innovative, high quality and
secure customer experience.
20 21MARKETPLACE & CUSTOMERS MARKETPLACE & CUSTOMERS
Progress against Our approach
2015-16 goals We’re committed to constantly improving
and preparing our network for the future.
That’s why this year we made the
Goal Result Detail investment to acquire a number
Continue to drive the action we need to take to lift Completed Our NPS score of +5 is an increase on last year, showing of new regional licences in the
“Optus is a huge investor in
Market NPS and increase our lead on our major
competitors
continued improvement in our customer advocacy. We
remain the leading tier 1 Telco.
1800 MHz spectrum band, the
most popular spectrum globally “Optus is a huge investor in
Australia’s mobile and fixed
Continuously look for and understand our customer Completed Our dedicated Customer Experience team worked on a
for 4G Long Term Evolution (LTE)
deployments. Australia’s
internet mobile
networks: $16and fixed
billion since
internet networks: $16 billion
pain points so we can address them and create tangible number of projects this year, targeted at known customer
2001 and we’ve guided the market
reasons for them to be our advocates pain points “When combined with our existing
assets, this additional spectrum
Continue to focus on supporting our frontline people and
our people in the call centre
Completed This year the My Life Hub, Psychological Risk Capability
Workshops, and Healthy Body at Work program have all
allows Optus to support Australia’s
growing demand for data services
since
that we2001 and almost
will spend $1.8 billion this
Developing larger flagship YES Optus shops which Completed
provided extra support to our frontline people
This year we transformed 63 Yes Optus shops into new
in regional Australia. Optus now
has an expanded mix of spectrum
$2 billion
financial this
year year(G4-EC7)
alone” alone.” (G4-EC7)
allow customers to touch and play with our products Generation 6 design to deliver extensive coverage
PaulO’Sullivan,
Paul O’Sullivan,Singtel
SingtelOptus
OptusChairman
Chairman
and superfast speeds for more
Appoint a dedicated privacy executive to oversee the Completed Appointed in 2016
Australians.”
strategy, policy and compliance relating to customer data
privacy and protection in our operations and supply chain Allen Lew, Chief Executive Officer
Reinforce the importance of information security and Completed This has been reinforced by initiatives put in place by our We added over 260 new mobile first satellite, Sky Muster™, which broaden our security portfolio and
privacy at all levels in the organization and company newly appointed privacy executive sites into the network this year, will provide broadband services address the fast growing market
retailers. enhancing the depth of coverage across rural Australian homes and need.
Update the company data privacy framework to meet Completed As part of the Enforceable Undertaking we’re improving our and capacity of our 3G and 4G businesses. We’re responsible for
evolving legislation and customer expectations; and privacy framework, with the introduction of a new privacy Plus networks. We also continued tracking and flying the satellite, Trustwave has a mature,
ensure information security and privacy compliance in governance structure with a new Privacy Team at the hub, and with our 100G national upgrade and are proud to be able to partner end to end product portfolio,
relevant areas of our supply chain. Privacy Champions within the Business Units program, lighting up the Perth to NBN and of the global recognition incorporating their own intellectual
Cairns network circuit with a 100 of us as a respected satellite property and home grown
Implement the new Sustainable Supply Chain Framework, Completed Over 75% of our group procurement spend has been gigabit per second upgrade. specialist. (SDG9, SDG17) technologies with alliances with
which includes: assessed against key material issues. All significant new This represents a ten-fold increase
contracts must adhere to our supplier code of conduct,
many of the industry’s leading
- 75% spend of suppliers will be assessed against key in the capacity of the link to meet As well as investing in upgrading Security technology companies.
material issues and we undertook data privacy and cyber security audits
increasing demand for high-speed our technology, we’re also This Enterprise product will
- 100% of new contracts will have the Supplier on a number of key companies we work with
Code of Conduct applied
connectivity. making good on our promise to mean our customers have an
- Assurance review of relevant offshore/ outsource suppliers become a major player in sports unparalleled choice of services to
We believe that this advancement broadcasting. We secured the build an intelligent and layered
in telecoms technology will be exclusive rights to the English defence against today’s known
crucial in achieving a number Premier League for the next three and tomorrow’s unknown security
of the UN’s 2030 Sustainable years, as well as digital rights for threats.
Development Goals, such as the the Australian cricket team and
development of Sustainable Cities sponsorship of the Australian
and Communities, Innovation and Olympic and Paralympic teams.
Our performance Australian Infrastructure, and No Hunger.
+5
population (SDG11, SDG9) Our network is advanced, but also
covered by safe and reliable. This is one of the
Our 4G Plus subscribers increased by reasons our customers continue to
33% to 4.68 million this year, and our give us the highest NPS of any tier
1 Telco.
Top 50 suppliers had
33%
increase in number Market NPS +5 Optus market share of post-paid mobile
.
50 risk assessments of 4G mobile remains the leading subscribers increased by 2% – this is
performed this year subscribers Tier 1 Telco = 94% *
more than any other Telco. We’re committed to protecting the
privacy and data of our customers, We’re committed
and of staying on the front foot
Innovation underpins everything
in the fight against cyber security to protecting the
A$1.6 billion We’ve been launching Over 260 new mobile #1 on the Netflix that we do, and all of our customer
invested in capital expenditure satellites to connect sites delivered into ISP Speed Index
for eight months
offerings. We’re striving to be at
the cutting edge of our industry’s
threats. This year Singtel acquired
Trustwave for $1 billion, the largest privacy and data
and network improvements Australia for 30 years the network running technological advancement. This
year we helped to launch NBN’s
independent US based managed
security services provider, to
of our customers
22 23MARKETPLACE & CUSTOMERS MARKETPLACE & CUSTOMERS
Putting customer
experience first
We’re committed to constantly improving
and preparing our network for the future.
We worked tirelessly this year to
deliver a bigger, better customer
experience. From faster speeds to “Optus improved substantially on its
improvements in call quality and the
addition of exclusive content, we
already solid performance last year,
continued to invest in our network narrowing the gap between itself and
to bring our customers the very best
out of their data.
Telstra, and in particular opened up the
throttle on data speeds."
4G in more places:
Using top notch 4G 700 MHz
spectrum, we expanded our
"Optus scored an especially notable Usain Bolt
superfast 4G Plus network to more boost in performance in the more
places, especially in regional towns
and highways, at the same time
regional areas, on connecting roads and
boosting our indoor coverage in the
big cities. Our 4G Plus network is
highways, to edge into the lead overall.”
now available in all capital cities and Source: 2015 P3 CommsDay Mobile Benchmark
over 700 regional cities, towns and
holiday locations around Australia.
As well as expanding our 4G Plus delivers sharper and clearer audio introduced this year, which give customers' experience, at home or
coverage, we also upgraded our
network speeds using the latest LTE
for Optus-to-Optus mobile calls customers the option of continuing on the go. This includes keeping them “4.5G and related technologies
when using HD Voice compatible
Advanced technologies in selected devices.
their interaction with an agent using
live chat when they call us. As well
connected when they're watching
live events so they can access and are the future of our increasingly
metro and regional areas, providing
those data hungry customers Investing in winning content and
as allowing customers to interact
in a more discrete way than voice
share digital content, faster.
digitalized world. Huawei
with the speed for even faster
downloads. To get our network
partnerships:
• Olympics: 10 year agreement to
calling, it also allows us to convey
information visually, simplifying
Together with Nokia, we're working
on an innovative solution to improve together with Optus will strive
ready for the future, together become official telecoms partner and maximising the information
our 4G Plus network in major
stadiums. Beginning with Sydney's
to foster an open and a better
with Huawei we’ve trialled 4.5G of Australian Olympic that can be conveyed. These
technology, achieving download and Paralympic teams. technologies are being delivered to
ANZ Stadium, we're running a
trial that will significantly increase
connected Australia.”
speeds of 1.23 Gps. • Usain Bolt: brought on as an around 60,000 customers a month,
capacity of Optus' 4G Plus network David Wang, President Huawei Wireless Networks
ambassador for the Optus providing them with flexibility and
Introducing 3G HD Voice in and around the Stadium, boost
network, with a shared focus choice in how they interact with
and Wi-Fi calling: upload and download speeds and
on relentless improvement Optus.
reduce battery drain.
This year we became the first • EPL: Optus has won broadcast Optus was also the first Australian
Australian Telco to introduce Wi- and digital rights to all 380 premier Enhanced coverage: We added
Telco to launch a mobile contactless
Fi calling with the launch of our league matches every season from hundreds of new mobile sites to
payment service, the award winning
Wi-Fi Talk app. This allows Optus August 2016 - another significant our network, boosting coverage
customers to make or receive calls
and send and receive SMS on their
step to becoming a mobile-led
‘Cash by Optus’. This allows our
customers to use their smartphone in big cities like Canberra and Invested in
smartphone via a Wi-Fi connection,
multimedia company.
• Cricket Australia: Three year
to pay for goods and services
instead of using cash or plastic
Wollongong. This investment hasn’t
gone unnoticed. We’ve also been winning partnerships
meaning our customers can stay recognised for our network reliability
partnership announced with debit and credit cards.
connected even when they’re in an by the leading independent network
Cricket Australia to secure the
area with limited mobile coverage.
Our mobile voice call quality has digital rights. Major stadiums getting more
Yes: With our focus on sports
benchmark – 2015 P3 CommsDay
Mobile Benchmark. In fact, we
Olympics, Usain Bolt,
also improved with the introduction
of 3G High Definition (HD) voice
Technology Deployment: content and entertainment, we're
committed to improving our
were ranked number one for data
performance on highways.
EPL, Cricket Australia
technology across our network. This IVR to Chat and Visual IVR were
24 25MARKETPLACE & CUSTOMERS MARKETPLACE & CUSTOMERS
Expanding our broadband
services: We brought Optus
broadband coverage to more
recommend us to family and friends
(G4-DMA). This year our NPS score
grew from +4 to +5, showing we’re
expect. One of the ways we’re
doing this is through our call centre
incentive program, which this year
Innovative solutions
for business
Australians and continued delivering still regarded by our customers as a was awarded the Best Incentive
improvements to our services trusted wingman (G4-PR5). Program at the Contact Centre
across the year. High speed Optus World Awards in Las Vegas.
NBN is now available to more than We still think we can do more
1.5 million homes in both regional though to achieve our ambition This award has put Optus on
and metropolitan areas, and we of being Australia’s most loved the world map for delivering We’re rolling out has been to listen to the needs of For the second year running we were
and recommended service brand. the nearly 2 million small to medium
launched Optus DSL to reach more
Our annual complaints rate to
best practice in the industry. The
Frontline NPS Incentive program is
innovative product and businesses (SMBs) operating in
awarded the Canstar Blue award
for ‘Most satisfied customers rating
rural and outback homes. Almost
60% of Optus ADSL2+ areas and the Telecommunications Industry designed to bring the Optus values solutions for our market Australia. We’ve tailored a range for Small Business mobile phone
nearly 50% of Optus Cable areas Ombudsmen (TIO) averaged 2.5 to life in the everyday lives of our across all arms of the of flexible products and bundles service providers’, a fantastic award
complaints per 10,000 services for SMBs, discounts and dedicated
also received network upgrades in
this year, compared to 1.9 last
people, rewarding straight away
those that truly are wingmen to one
Optus business. customer service teams to assure
recognised by Australian small
businesses.
2015. We’ve ranked #1 in Australia’s
Netflix ISP Speed Index every year. This was a result of reliance another and to their customers, and We’ve helped large Australian them that we’ve got their back,
month since September 2015, as we on NBN Co to deliver certain helping to make our customers our companies to ditch their handsets and that they can focus on running
improve our network to meet video broadband products, greater than advocates. for softphones, combine and their businesses.
streaming demand. anticipated demand of Local Access integrate existing ICT services,
Resales Telephony and Internet, and roll out national video calling
Yes to Customer Satisfaction and disruption caused during
Case Study: Vision 2015
capabilities.
Putting the customer at the centre introduction of our new customer
of everything we do means more service change system. Optus was named Cisco’s Top
than just providing a great network We’ve also worked hard to align our Australian partner at the Cisco
and content. It’s about listening to customer service to our aspirations, partner summit 2015 as well as
'Asia-Pacific & Japan Regional, and In its fifth year, Optus Business’ David Rowan Editor-in-Chief of
our customers’ needs and concerns. to ensure that we’re delivering the
Global, Award for Architectural Vision event has become one of WIRED Magazine UK, and Tan
Each quarter we ask consumers and service experience our customers
Excellence in Collaboration' and Australia’s top technology and Le Founder and CEO of EMOTIV.
our people how likely they are to
'Revenue Marketer of the Year'. thought-leadership gatherings, They talked about the rapid rate
This is recognition of our position as attracting influential speakers and power of change and the
a leader in ICT, and our credentials in and esteemed leaders from need for companies to be flexible
delivering best of breed solutions to government and industry. ‘Road and responsive to survive. Tan Le
our customers. to Growth’ was the theme for even spoke about “the power to
Vision 2015, focusing on how redesign our own brains.”
We’re always looking for ways to organisations can best prepare
collaborate with innovative partners for, and facilitate change, while “Companies with a high degree
to provide the best products and continuing to drive growth. More of change readiness are twice
solutions to our customers. This year than 1,200 people attended as likely to achieve their growth
we announced a partnership with the event at the Sydney Town targets. So, the purpose of Vision
Cisco to accelerate the development Hall with a further 462 virtual 2015 is to learn more about what
of new technological capabilities delegates participating online. it takes to become highly change
to support Australian business and ready. We’re here to provide
government to become more agile in Vision supports Optus’ strategic valuable insights, tools, advice
the innovation economy. Over three goal of lifting our profile as a and networking opportunities.”
years the partnership will invest leading ICT organisation. It’s
$12 million in the local development an opportunity for us to thank
of capabilities focused on cyber customers and demonstrate to
security, cloud, the Internet of Things industry the value we deliver.
(IoT) and the network of the future. Vision is also the platform for
(SDG17)
launching Optus’ annual ‘Future
of Business Report’ which
We’ve also struck a partnership with determines the theme and
the innovative car riding service Uber, content for the conference and
sets out Optus’ business agenda
We launched to run an in-car Wi-Fi trial across
Sydney and Melbourne. We’ve set up for the next 12 months.
Optus DSL to prepaid Wi-Fi in 100 vehicles across
their fleet, allowing up to 10 devices Vision 2015 attracted an
outstanding group of keynote
reach more rural to be connected at the same time.
speakers, including Bernie John Paitaridis
Managing Director
and outback It’s not all about providing services
to Australia’s big business either.
Brookes, former CEO of Myer, Optus Business
homes One of our focus areas for this year
26 27You can also read
