In developing our strategy for , we reviewed our social policies and identified five key social themes:

Transcription

1

2 KPN, fully engaged in the community As a reliable and transparent service provider, KPN is fully engaged in the community. This requires modern, well-considered policies that enable us to respond to social change and trends. Besides as a service provider, we not only want to respond to social trends, but we also want to help shape and strengthen them. That s why our investment goes beyond technology and services and into social activities as well. In developing our strategy for , we reviewed our social policies and identified five key social themes: Best ICT infrastructure Future healthcare New Way of Living & Working Energy conservation Security & privacy Based on these themes, we believe KPN can offer structured and lasting added value to society as a modern ICT service provider. Climate neutral KPN is climate neutral with respect to its operations and is reducing its absolute energy consumption despite the rapid growth in data communication. In addition, we help our customers to reduce their energy consumption with our products and services. Our mission is to make a positive contribution to the climate. KPN is aware that its business activities have an effect on our planet. This effect is not limited to CO 2 emissions; it starts with the use of raw materials and continues right up to waste processing. As raw materials, including fossil fuel, become scarcer and the production capacity of the planet is finite, the need for an overall environment and climate policy is becoming increasingly necessary. Our climate and environment strategy is based on two principles: 1) The opportunities to save energy through the use of our ICT products and services. 2) Reducing our environment and energy impact. Climate change is becoming an ever more important issue worldwide. At KPN we take our share of responsibility and are reducing our CO 2 emissions and energy consumption. In addition, we help our customers to reduce their energy consumption. We want to show that economic growth does not necessarily have to lead to an increase in CO 2 emissions and use of energy. Indeed, our own operations are climate neutral and we help our customers to save energy through the use of ICT. As an ICT service provider we see that ICT services help us and our customers to work more efficiently. By sharing information and teleconferencing via the cloud, people do not have to travel as much and they can work more efficiently. The possibilities of facilitating economic growth via ICT while at the same time combating the growth in CO2 emissions are outlined in the Dutch version of the SMARTER2030 report. This report was drawn up by Accenture via Global e-sustainability Initiative (GeSI). KPN is a member of this partnership and had this version of the report compiled. This report shows that the use of ICT can ensure that economic growth does not have to go hand in hand with an increase in CO2 emissions and that at the same time smart ICT

3 applications can facilitate economic growth in a variety of sectors and a reduction in the use of energy and water. We are convinced that our environment and climate policy is well suited to our business strategy. On the one hand the energy saving and improved efficiency result in lower costs, and on the other hand we help our customers to become more efficient and reduce their costs. Reducing our environmental impact is especially relevant because we consume around 0.8% of all electricity in the Netherlands every year. Highlights of 2015 Energy is the most important environmental aspect for KPN, but we also have an impact on other areas such as the use of raw materials, recycling and processing of ICT waste and particle emissions. We want to analyze and reduce the influence we have on the depletion of the planet s resources, as well as on the potential positive and negative effects of our services. That is why we intend to migrate to circular services. Our policy and results have led to international recognition and ranking in the DJSI and CDP benchmarks but have also caused us to fine-tune our ambitions. Ambitions for the futures We have achieved our target to become climate neutral with respect to our own operations in 2015, five years earlier than scheduled. But we are maintaining our goals with respect to cutting our energy consumption and shrinking our environmental impact. Our aim is to contribute towards the achievement of the 2050 targets of COP21 (50% CO 2 reduction compared to 1990). We are doing this by reducing our energy consumption and having no CO 2 emissions, by using only green energy and helping our customers also to save energy. Our KPIs to realize this: a) We will stay climate neutral with respect to own operations b) As from 2021 our energy consumption will be 25% lower than in 2010 by making savings in our network, data centers, offices and vehicle fleet. c) As from 2025 we will buy only vehicles that have zero CO 2 emissions. d) As from 2025 we aim to provide services and networks that form part of the circular economy. 1) The opportunities to save energy through the use of our ICT products and services. Our products and services help customers to reduce their energy consumption and CO 2 emissions. For example, if you have good internet access and secure cloud services, you can work at the location that suits you best without unnecessary travel. With videoconferencing and teleconferencing you can avoid a lot of unnecessary travel and

4 getting stuck in traffic tailbacks too. Housing ICT in a green data center, virtualization and cloud services can also save a lot of energy. And new services in which sensors in devices can show messages (Internet of Things) can ensure that action is taken only when needed. But storage media such as CDs, DVDs, videotapes and local hard disks have been rendered superfluous by Spotify, Netflix and our TV modems without hard disk. That not only saves energy for our customers but also saves on the raw materials and energy needed for the production and recycling of these products. Our ambition is to ensure that through the use of our products and services our customers can save as much energy in 2020 as we consume. We calculated in 2015 that customers have already avoided 2.53 PJ and 177 ktons of CO2 by using our services. That is 73% of our own energy consumption. Examples of other products. RFID New innovations such as RFID (Radio Frequency IDentification) facilitate major logistical changes. By using RFID not only the location but also the status (e.g. the temperature) of individual products can be measured. This leads to energy efficiency when transporting delicate fresh products and can also lead to waste reduction and better-adjusted cooling systems. Healthcare Our healthcare products make it possible for checkups and examination to be done remotely. This makes healthcare more efficient and gives patients greater freedom and independence. As patients need to go to a specialist or hospital less frequently, travel is reduced and therefore the Co2 impact. Also take a look at our healthcare applications. 1) Reducing our environment and energy impact. Climate-neutral since 2015 Since 2015 our operations have been free of CO2 emissions. We have achieved this principally because since 2011 we have only consumed green power produced in the Netherlands, and this has reduced our emissions by 88%. We have compensated for other emissions from gasoline and diesel (9%) and gas (3%) by means of forest compensation and Gold Standard certificates. Even though we no longer emit any CO2 we consider ourselves responsible for reducing our energy and raw material consumption still further. We continue to operate long-term targets for reducing our energy consumption and environmental impact. Our aim is to contribute towards the achievement of the 2050 targets of COP21 (50% CO2 reduction compared to 1990). We do this by: a) Consuming less energy (link to section) b) Migrate to circular a) Consuming less energy Our ambition is to consume 25% less energy in 2021 than in We are doing this by improving the energy efficiency of our network and data centers, saving energy in offices and consuming less fuel in our vehicle fleet. In 2015 we were able to continue the trend towards reducing our overall energy consumption, even though the use of our ICT services is growing sharply and Reggefiber became part of KPN in

5 2015. An overview of the energy consumption, CO2 emissions and energy ratio improvements can be found in Appendix 6 to our annual report 2016 KPN s environmental management system has been ISO certified since Mobile and fixed network in the Netherlands Het vaste en mobiele netwerk in Nederland is goed voor 75% The mobile and fixed network in the Netherlands accounts for 75% of our electricity consumption. Above that the use of our fixed and mobile networks is also growing rapidly because of internet, video, and social media. To ensure that everyone can use the internet quickly, reliably, securely and permanently we make innovations and expand our networks. By paying close attention to energy consumption we have managed to make those expansions without using more energy. Our long-term goal is to achieve an absolute electricity reduction of 28% in our mobile and fixed network in 2020 compared to Despite the rollout of 4G and expansions in the fixed network we are still on schedule to achieve this target. In the last few years we have saved GWh per year. In 2015 the savings measures in our Dutch networks even resulted a saving of 77 GWh, which is equivalent to the consumption of 25,000 households. These savings compensated not only for the growth through the expansion of the networks but also for the acquisition of Reggefiber in The graph shows that the energy consumption is falling while the volume of data communication is rising sharply. In 2016 we even expect the internet traffic to more than double in comparison with Data centers In our data centers too our measures have led to an improvement in our efficiency ratio. For data centers this is expressed in PUE: Power Usage Effectiveness. This means the ratio between the total consumption of a data center and the ICT equipment in the data center for the benefit of customers. In 2015 our PUE improved 13.3% in comparison with This is in line with the target we set ourselves. It can be seen from the graph that the energy consumption of the entire data center is growing less quickly than the energy consumption of the equipment for the benefit of customers. New innovative data center In 2015 we opened a new data center on the High Tech campus in Eindhoven. This is the first data center in the Netherlands with the highest availability criterion Tier IV. It is also a very sustainable data center. The heat generated in the data center is reused in our offices and in the climate control system of the campus itself. So the data center not only uses only green energy, it also supplies green energy in the form of heat. Furthermore, the data center was built in accordance with the cradle-to-cradle principle. That means that it is designed in such a way that the building can easily be used for another purpose. When the building is finally demolished all the components can be dismantled individually and reused. Recycled materials were used whenever possible during the construction.

6 Offices We are also continually improving the environmental performance of our offices. To assist in improving the environmental quality of our offices we have become participant in the Green Deal Circular Buildings. The goal of this Green Deal is to ensure that all the materials used in buildings can be reused to the greatest possible extent. Our office in Apeldoorn was renovated in that manner. Our office de Borg in Groningen has been upgraded from an E label to a B label. Vehicle fleet IIn our lease fleet we had further reduced the fuel consumption although we included new subsidiary Reggefiber: 37% in comparison with 2010 by using more energy efficient cars and influencing driver behavior. To make our mobility even greener we have started a pilot with electric vehicles. Ultimately, as from 2025, we aim to use only vehicles that emit no CO2. The tricky part here is that most electric vehicles currently have a very small range and the charging infrastructure in the Netherlands is not yet very extensive. b) Migration to circular With circular we mean: reducing waste and raw material consumption. Our ambition is to have circular networks and services in In other to have no waste in the whole lifecycle form our networks and our services. VBDO already concluded that we are amongst top 10 of large companies in the Netherlands with attention towards circularity. We have taken a number of measures to reduce the consumption of raw materials and ultimately to reduce waste. We have introduced TV modems without hard disk. The recordings are stored in the cloud of KPN, signifying not only less energy consumption for our customers but also less equipment. This is because the hard disk no longer has to be manufactured and, ultimately, recycled. We have also introduced the new FAIRPHONE 2. Apart from being sustainably produced, it is also sustainably designed. The customer himself/herself can change components such as camera, battery and screen. To give our customers better information about the sustainability of products 95% of the cell phones introduced in 2015 have an eco-rating.